UNION RECOMMENDS ACCEPTANCE

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1 Summary of New Proposed Contract Between IAM District 751, Local 86 & ASC Machine Tools, Inc. UNION RECOMMENDS ACCEPTANCE YOUR NEGOTIATING TEAM RECOMMENDS: ACCEPT ASC presented your negotiating team with their best and final offer on Tuesday, December 20, Your negotiation team made gains in Wages, Health & Welfare, 401(K) match, Sick Leave, Safety, and Tool Advance. WAGES 2.5% General Wage Increase effective 01/01/2017 for each classification 2% General Wage Increase effective 01/01/ 2018 for each classification 2.5% General Wage Increase effective 01/01/2019 for each classification HEALTH & WELFARE & DENTAL Maintained Health & Welfare at current 2016 rates for (K) Increased company match to $2,500 in 2017; $2,600 in 2018; and $2,700 in REVIEWS Deleted Employee Reviews SAFETY The Company agrees to increase safety glasses purchase to $ once each calendar year. The Company agress to increase the advance for tools to $ The Company also agreed to include work wear in the advancement. SICK TIME The Company is complying the new state sick leave policy beginning 01/01/2017. This will give each member 1 hour of paid sick time for each forty (40) hours worked. The Company will also increase the paid sick time bank from 120 hours to 160 hours. The Company also agreed that employees will be able to use sick leave in the same manner as the previous paid personal time. OVERTIME Overtime modifications CONTRACT DURATION This is a three (3) year agreement which expires on December 31, Your negotiating committee, working on your behalf, recommends you accept this proposal. It shows improvements in several areas you identified as important and contains no takeaways. Study the proposal and discuss it with your family prior to the vote. While the negotiating committee makes a recommendation, ultimately it is up to each member to decide if the proposal adquately addresses your issues. We will continue working on your behalf and welcome your input and feedback throughout the life of the contract. Thanks again for your support Your IAM Negotating Team. Steve Warren, Bill Boone, Rick Coffman, Allen Eveland and Kevin Nunn To view the new contract in its entirety with changes highlighted, visit

2 ARTICLE 2: BARGAINING UNIT The bargaining unit above described includes all employees engaged in making, assembling, erecting, and dismantling of Company manufactured equipment at the Company s facility, and repairing of Customer s machinery and equipment and/or parts thereof of all descriptions by the Company at the Company s facility. The Company shall designate such personnel of its choice for inspecting, testing and troubleshooting the equipment it manufactures whether said personnel are within or not a part of this particular bargaining unit of the Union. Salaried supervisors for the designated departments shall be allowed to do whatever work necessary for the successful completion of the work in their departments, but not to include production work. ARTICLE 5: BASE RATES OF PAY Current Rate 01/01/ /01/ /01/ % 2% 2.5% Tradesman $ $ $ $ Machinist Machinist $ $ $ $ Fabrication Mechanical Assembly Electrical Assembly Manufacturing Support Helper 2 $ $ $ $ Helper 1 $ $ $ $ ARTICLE 6: OVERTIME A. Overtime worked during the regular work week shall be paid for at time and one-half (1 1/2) the regular shift rate for hours paid in excess of forty (40) per week. Paid personal sick leave time will not be considered when calculating the forty-hour base for overtime and will be paid at the regular shift rate. On an eight (8) hour or ten (10) hour shift basis, hours worked in excess of ten (10) hours on Monday through Friday shall be paid for at double time (2 for 1) the shift rate pay in lieu of time and one half (1 1/2). B. Daily overtime will normally be offered to the employee performing the operation on that shift. The company will attempt to administer overtime on a volunteer basis; however, if enough qualified employees refuse to volunteer for necessary overtime work, reverse seniority will be used to satisfy the requirement.

3 ARTICLE 6: OVERTIME (Con t) There shall be no mandatory overtime during the regular work week unless forty-eight (48) hours notification is given prior to requirement. There shall be no mandatory overtime on Saturday or Sunday unless one (1) week s notification is given prior to requirement. Employees will not be required to work mandatory overtime on back-to-back weekends. By department, Tthere shall be no periods of mandatory overtime in excess of three (3) consecutive weeks and any period of mandatory overtime will be followed by an equal or greater period of time without mandatory overtime. The Company will not work mandatory overtime on back-to-back weekends. There shall be no mandatory overtime on fourth and fifth shifts. All time worked on fourth and fifth shifts in excess of twelve (12) hours shall be at the rate of double time (2 for 1). ARTICLE 15: SAFETY C. The Company agrees to pay one hundred dollars ($100.00) one hundred twenty-five dollars ($125.00) towards the purchase of prescription ground safety glasses once each calendar year. D. The Company will advance up to two hundred fifty dollars ($250.00) five hundred dollars ($500.00) towards the purchase of tools and work wear upon submission of written request and supervisor approval. This advance will be deducted from payroll in no more than ten (10) equal payments. ARTICLE 16: SENIORITY B Employee Reviews Each employee will have an annual employee based review by their immediate supervisor. Evaluations will be performed from January 01 through March 31 of each calendar year. Evaluation results will be discussed with the employee within a reasonable time after the completion of the employee review. If the employee s review shows a need for improvement, the Company will offer reasonable cross training.

4 ARTICLE 17: HEALTH AND WELFARE ARTICLE 17: HEALTH AND WELFARE A. MEDICAL: The Company will provide medical insurance and will provide written definition of eligibility rules (Exhibit A). The Company retains the right to select insurance carriers and/or self insure this medical coverage. Summary plan descriptions for medical coverage will be provided to all eligible employees. The Company agrees to allow employee representation in medical insurance renewal discussions and/or selection of plans. For the period of August 1, 2013 through December 31, 2013, the Company will pay five hundred fifty dollars ($550.00) per month per employee toward the composite rate premium for the medical plan currently in place. Starting January 01, , employees will continue to pay their current 2016 health and welfare contribution the Company will pay eighty percent (80%) toward the Core Plan of the a traditional 4-tier 6-tier medical premium rate structure and the employee will pay twenty percent (20%) of the premium. For those employees in the Buy-Up Plan the Company will pay the same corresponding amount as the Core Plan Company contribution with the employee making up the difference in the premium. Starting January 01, 2018 and ffor the duration of the contract, any future premium increases in the Core Plan will be split equally between the Company and the employee. For the Buy-Up Plan, the Company will pay the same corresponding amount as the Core Plan Company contribution with the employee making up the difference. Based on the migration of employees from the Company sponsored plan into the State or Federally sponsored exchange programs and the associated penalties and fees, the Company reserves the right to discontinue offering medical insurance if it becomes economically unfeasible. ARTICLE 18: ASC MACHINE TOOLS PROFIT SHARING AND RETIREMENT PLAN The Company agrees to provide matching funds of $1.00 for $1.00 (100%) of the participating employee s contribution up to the following limits: Period August 01, 2013 through December 31, 2013 $1, Calendar year January 01, through December 31, $2, $2,500 Calendar year January 01, through December 31, $2, $2,600 Calendar year January 01, through December 31, $2, $2,700

5 PAID PERSONAL TIME SICK TIME ARTICLE 24: PAID PERSONAL TIME SICK LEAVE During the term of this contract all employees covered by this Agreement with one (1) year s continued service with the Company will receive one (1) hour of paid personal sick time for every eighty (80) forty (40) hours worked. All employees with two (2) years continued service with the Company will receive one (1) hour of paid personal time for every fifty (50) hours worked. All employees with seven (7) years continued service with the Company will receive one (1) hour of paid personal time for every forty (40) hours worked. All hours worked on fourth (4th) and fifth (5th) shifts will be multiplied by one hundred sixteen percent (116%) and applied to the above calculations. Paid personal sick time will be used in increments of not less than one (1) hour blocks and not in excess of the regularly scheduled shift. Any unused paid personal sick time shall accumulate into an individual s paid personal sick time bank of not more than one hundred twenty (120) one hundred sixty (160) hours. Any accumulated paid personal time in excess of one hundred twenty (120) hours will be paid at 100% of accrued value at the end of each contract year. DURATION This Agreement will become effective August 01, 2013 January 01, 2017, and shall continue in full force and effect through December 31, , and from year to year thereafter provided, however, either party hereto may reopen or terminate the Agreement by giving the other party notice in writing at least sixty (60) days prior to the anniversary date of December 31, , or December 31 of any year thereafter. Contract Communication Meeting WHAT: All members should plan to attend one of the contract communication meetings. WHEN: Wednesday, December 21, 2016 TIME: Two Meetings - 1 p.m. & 3:45 p.m. WHERE: Spokane Machinists Union Hall

6 VOTING THE PROPOSAL WHEN: Tuesday, December 27, 2016 WHERE: Spokane Machinists Union Hall TIME: Polls will be open from 12 Noon to 5 p.m. To view the new contract in its entirety with changes highlighted, visit 1 What Is on the Ballots? There are two separate ballots: One to accept or reject the contract One to authorize a strike ASC Machine Tools, Inc. I VOTE TO STRIKE ASC Machine Tools, Inc. CONTRACT VOTE I ACCEPT the Contract..... I REJECT the Contract.... YES NO Failure to obtain a two-thirds (2/3) YES in this section of the ballot will result in the acceptance and ratification of the Company s last and final offer 2 How Are the Ballots Counted? Members who volunteer to count the ballots will tabulate them and validate the numbers. opeiu#8 afl-cio 3 What Do the Results Mean? If a majority of voting members vote to ACCEPT the contract, negotiations end and the contract is signed. If a majority of voting members vote to REJECT the contract, but LESS THAN TWO-THIRDS vote to strike, the contract is automatically accepted by default. The Union CANNOT call a strike. If a majority of voting members vote to REJECT the contract, and MORE THAN TWO-THIRDS vote to strike, a strike can be called at 12:01 a.m. January 01, 2017.

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