TROY, ALABAMA CONTRACT 2018 UPDATE TROY, ALABAMA CONTRACT 2018 HAS BEEN RATIFIED!

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1 TROY, ALABAMA CONTRACT 2018 UPDATE TROY, ALABAMA CONTRACT 2018 HAS BEEN RATIFIED! By a final vote of 238 For and 4 Against, the company s offer was overwhelmingly ratified by members of Teamsters Local 1150 in Troy. The new collective bargaining agreement is effective immediately. Members of the negotiating committee express their thanks to a membership dedicated to the principals of solidarity and congratulate everyone on a hard fought victory at the bargaining table. Below are the details of the new agreement.

2 AGREEMENT AND PURPOSE Lockheed Martin incorporated into company name. Date of Agreement changed to October 22, ARTICLE I MANAGEMENT FUNCTIONS No changes ARTICLE II COVERAGE Changes to accommodate company name change and facility name changes. ARTICLE III RECOGNITION No changes ARTICLE IV NONDISCRIMINATION Language changes to bring into line with other Lockheed divisions and current laws. ARTICLE VI GRIEVANCE PROCEDURE Improved language pertaining to union records requests. ARTICLE VII WAGES AND HOURS General Increases of 15% over the life of the Agreement (3% each year). Increased minimum raise on promotions from.50 to paid holidays over the life of the Agreement. ARTICLE VIII SENIORITY Establishment of new Workers Compensation Steward position. ARTICLE IX VACATIONS No changes ARTICLE X MILITARY SERVICE Included Basic Training in categories that qualify for 15-day military leave pay. ARTICLE XI GENERAL PROVISIONS Added Guideline #12 to address absence to maintain medical benefit covered under the Department of Veteran Affairs. Added Guideline #13 to address absence for call back for emergency work. ARTICLE XII STRIKE OR LOCKOUT No changes. ARTICLE XIII EMPLOYEE BENEFITS Name change to Lockheed Martin ARTICLE XIV UNION REPRESENTATION Added Workers Compensation Steward. ARTICLE XV DURATION 5 Year Agreement OTHER CHANGES RATIFICATION BONUS $5,000 Bonus will be paid in 2 installments - $2,500 in November 2018 and $2,500 in November This bonus can be deposited into the employee s Savings Plan or HSA in $250 increments with a 50% company match. PENSION Pension multiplier (for qualified employees) increased by $9 on December 1, 2018 (to $77) and by $4 on January 1, 2022 (to $81).

3 Effective December 1, 2018 Effective January 1, 2022 Final Average Earnings Monthly Pension Per Year of Credited Service Under $39,000 $73 $39,000 $48,999 $74 $49,000 - $51,999 $75 $52,000 $53,999 $76 $54,000 and over $77 Final Average Earnings Monthly Pension Per Year of Credited Service Under $39,000 $77 $39,000 $48,999 $78 $49,000 - $51,999 $79 $52,000 $53,999 $80 $54,000 and over $81 Effective 1/1/2020 new employees will not participate in the Defined Benefit Pension Plan. Employees hired on or after 1/1/2020 will receive a 4% contribution from the company into their Savings Plan. SAVINGS PLAN Increase of $2 per year on matched contributions. Increase to $325 max weekly unmatched contribution. Elimination of the 1-year waiting period to participate in the Savings Plan. COMPANY SUPPLEMENTAL CONTRIBUTION Effective 2/4/2019 the company will provide, on a weekly basis, a Company Supplemental Contribution of.50 per hour for 40 hours per week capped at 2080 hours per year. PEREFECT ATTENDANCE Perfect attendance award increased to.25 for each semi-annual period starting October 8, OVERTIME Improved language on updating of overtime records. No charge for refusal if employee is called outside of their shift and offered overtime. All employees in a given overtime area will be offered overtime prior to an employee on loan to that department. WAGE ADDER Memorialized the.25 wage adder for employees who completed the Airframe Industry Training Program. Increased wage adder for Critical Flight Safety and NDI to.50.

4 TRAINERS Occupational group 12 Trainers will be upgraded to Labor Grade 26 no later than 1/1/2019. IMA ACCOUNT Increased contribution to IMA from $1 to $18 with additional contributions of $7, $8 and $9. Age Category $1 $ $1 $8 60+ $1 $9 Additional Matched Contribution Per Week MEDICAL Elimination of 30-day waiting period for coverage. The payment for opting out of the company medical plan is increased to $750 annually. Beginning January 1, 2023 all new hires may only choose a High Deductible Health Plan. MEDICAL INSURANCE WEEKLY CONTRIBUTIONS CURRENT CONTRIBUTION RATES Weekly Option Ee E+S E+C E+F BYO Medical Effective January 1, 2019 December 31, 2019 The weekly contributions for each plan are as outlined: Plan Ee E+S E+C E+F BYO $31.51 $70.89 $63.01 $ HDHP 1 $20.20 $59.30 $44.60 $83.90 HDHP 2 $10.10 $30.50 $22.60 $50.00 HDHP 3 $0.00 $10.20 $7.90 $17.90 Effective January 1, 2020 The weekly contributions for each plan will be a cost share percentage as outlined below: Plan Employee Contribution Company Contribution BYO 20% 80% HDHP 1 13% 87% HDHP 2 10% 90% HDHP 3 5% 95%

5 Current BYO Annual Deductible Out-of-Network Individual $600 $2,100 Employee+1 $1,200 $4,200 Family $1,500 $5, BYO Annual Deductible Out-of-Network Individual $450 $2,000 Employee +1 $900 $4,000 Family $1,125 $5,000 Current BYO Annual Out-of-Pocket Maximum Out-of-Network Individual $3,900 $10,300 Employee+1 $7,800 $16,600 Family $9,750 $24, BYO Annual Out-of-Pocket Maximum Out-of-Network Individual $2,700 $10,000 Employee +1 $5,400 $16,000 Family $6,750 $24,000 High-Deductible Health Plans (HDHP) Remains Unchanged The High Deductible Health Plans (HDHP) with Health Savings Account (HSA) The 2019 HSA annual contributions limits are Individual $3,500 Family $7,000; up to $1,000 catch-up contribution applies for those employees age 55+. HDHP 1 HDHP 2 HDHP 3 Deductible 1 Individual $1,400 $2,100 $3,100 Family $2,800 $4,500 $6,250 Coinsurance 2 Preventive Care 100%, no deductible 100%, no deductible 100%, no deductible Other Plan pays 80% after deductible Plan pays 80% after deductible Plan pays 80% after deductible Prescription Drugs Details of coverage after the deductible defined by the Trustees of the Teamsters Local No Sikorsky Aircraft Corporation Prescription Drug Fund (The Fund ). Coverage must be compliant with IRS requirements for HDHP with HSA plan. Coinsurance Maximum (excludes deductible) Individual $1,400 $2,100 $3,100 Family $3,700 $5,250 $6,450 Out-of-Pocket Limit (plan pays 100% of covered services for remainder of year) Individual $2,800 $4,200 $6,200 Family $6,500 $9,750 $12,700 Lifetime Benefit Limit Unlimited Unlimited Unlimited

6 1 Family deductible must be met before plan coinsurance applies for any covered member of family. 2 Does not apply to hospice care and organ transplant services provided at designated Centers of Excellence. ALLEGIANT Rx (Formerly Teamsters Rx) The weekly employee contribution for Rx coverage of $14 for BYO plan and $7 for HDHP plans will remain the same for This contribution amount will be assessed and adjusted up or down as necessary on an annual basis. DENTAL CONTRIBUTIONS REMAIN UNCHANGED FOR 2019 Effective EE E+S E+C E+F Jan 2018 $3.96 $8.67 $10.10 $14.81 Effective January 1, 2020, the employee will contribute 40% of the cost of the dental plan and the Company will pay 60% of the cost of the dental plan. DAVIS VISION WILL CONTINUE TO BE OFFERED AT NO COST. LIFE AND AD&D INSURANCE, WEEKLY DISABILITY RATES AND T&PD RATES Base Rate Wage Class Life & AD&D Weekly Disability T&PD $20.00 and Under $75,000 $390 $1, $20.01 to $21.00 $78,000 $400 $1, $21.01 to $22.00 $81,000 $410 $1, $22.01 and Above $84,000 $420 $1, Increased survivor income insurance, both transition and bridge to $335 per month. Letter 31 Voluntary Layoff Option This letter is to formalize the voluntary layoff option to employees in the CBA. Prior to any layoff as defined in Article VIII, employees in occupational groups affected by such layoff may volunteer to be laid off and the Company will accept volunteers consistent with production requirements. VOLUNTARY SEPARATION OPTION The Voluntary Separation Option outlined in Letter 26 will remain in place for 2019 and beyond. ENHANCED VOLUNTARY SEPARATION OPTION Upon Ratification through 12/31/2019, any Employee age 55 and older may choose one (1) of the following options: VSO OPTION 1 VSO OPTION 2 SEVERANCE PAY 1 WEEK FOR EACH YEAR OF SERVICE 1 WEEK FOR EACH YEAR OF SERVICE BONUS $10,000 $5,000 MEDICAL COVERAGE 1 YEAR INSURANCE 2 YEARS INSURANCE PAYCHECKS Beginning January 1, 2020 all paychecks and pay stubs will be mailed to the employee s address on record.

7 SAFETY SHOES AND SAFETY GLASSES $100 credit for safety shoes 3 times over life of the Agreement $100 credit for safety glasses 3 times over the life of the Agreement IMPROVED LAY-OFF ROLLBACK LANGUAGE TO SIX MONTHS IMPROVED JOB POSTING LANGUAGE IMPROVED EAP LANGUAGE THE NEGOTIATING COMMITTEE UNANIMOUSLY RECOMMENDS ACCEPTANCE OF THIS OFFER Rocco Calo Jackie Hand Ray Jackson Anthony Kilpatrick Ara Moore Rick Rollinson Cliff Carrier Scoey Downing Larry Mills David Walter Ed Smith Bob Cheverie Jeffrey Faulkner Everette Davis Jimmy Winters The Executive Board would like to thank the Negotiating Committee for the hard work and effort put forth in these Contract Negotiations.

8 APPENDIX A Rate Schedule A Effective 10/22/ Rate Schedule B Effective 10/21/ Rate Schedule C Effective 10/19/ Rate Schedule D Effective 10/18/ Rate Schedule E Effective 10/17/

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