CONTRACT NEGOTIATIONS

 

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2008 Ratification Bonus

If you wish to defer the above ratification bonus payment to the Hourly Savings Plan Plus, you must complete the deferral form no later than 3:30 p.m., Wednesday, March 12, 2008. Copies are distributed throughout the plant and at the Union Office.  401K Form/Ratification Bonus Deferral Form2008.pdf

CONTRACT RATIFICATION VOTE

ACCEPTED !!!!

MARIETTA, GA - LOCAL 709          88% voted to accept

CLARKSBURG, WV - LOCAL 1027          90.1% voted to accept         

MERIDIAN, MS - LOCAL 2368          93.6% voted to accept

SUNNYVALE, CA - DISTRICT 725          58.8% voted to accept

CAPE CANAVERAL - LOCAL 1323          100% voted to accept

PALMDALE, CA - DISTRICT 725        78.3% voted to accept

 

 

 

 

                                                     MED1     MED2     MED3    MED4    MED5   MED6    MED7

                 LL709 SUMMARY                   2008 CONTRACT                        MED SUMMARY     CUSTOM CHOICES

 

 

FINAL UPDATE!  Click here for PDF Format

Brothers & Sisters:

After several weeks of negotiations with the Company, the proposal shown below, is the Company's last, best and final.  Your Negotiating Committee and I recommend that you vote for this proposal.  There will be copies put into the plant as soon as they are printed; however, no later than early Friday morning.  We will be returning to Georgia on Thursday, February 28th.  I will be going over the proposal on Sunday, March 2, 2008 beginning at 12 noon. 

Your patience and support during these contract negotiations has been greatly appreciated by your Negotiating Committee.

Fraternally,

Jeff Goen, President

LAST, BEST AND FINAL

ECONOMIC PROPOSAL

TO CONCLUDE

2008 NEGOTIATIONS

Between

LOCKHEED MARTIN AERONAUTICS-MARIETTA

AND

THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

LOCAL LODGES 709, 1027, & 2386

February 27, 2008

Evening Session

Except as specifically modified by this proposal, and items previously agreed upon by the parties during these negotiations, all terms and conditions of this printed Agreement will remain the same.

Period of Agreement: March 2, 2008 through March 6, 2011.

In all instances, qualified benefit plan language is the controlling document. Nothing contained herein or expressed by the parties orally or in writing, constitutes a waiver/deviation from the plan agreement.

 

LOCKHEED MARTIN AERONAUTICS COMPANY – MARIETTA

ECONOMIC – EXCLUDING BENEFIT PLANS

Part A and B

RATIFICATION BONUS

Provided that the membership ratifies the contract on or before March 2, 2008, a $2000 ratification bonus will be paid within sixty (60) days of ratification to each bargaining unit employee on the active payroll as of March 3, 2008, or on an approved leave of absence of less than one year, or on military leave. The entire payment may be deferred to the Hourly Savings Plan Plus (401K) upon completion of the appropriate form.

WAGE PAYMENTS

FIRST YEAR

Effective March 8, 2008, a general wage increase in the amount of 4.0% will be effective for each bargaining unit employee on the active payroll, or approved leave of absence for less than one year, or military leave. The maximum and minimum for all GPR and non-GPR labor grades shall also be increased by 4.0%.

SECOND YEAR

Effective March 7, 2009, a general wage increase in the amount of 3.0% will be effective for each bargaining unit employee on the active payroll, or approved leave of absence for less than one year, or military leave. The maximum and minimum for all GPR and non-GPR labor grades shall also be increased by 3.0%.

THIRD YEAR

Effective March 6, 2010, a general wage increase in the amount of 3.0% will be effective for each bargaining unit employee on the active payroll, or approved leave of absence for less than one year, or military leave. The maximum and minimum for all GPR and non-GPR labor grades shall also be increased by 3.0%.

ARTICLE VIII – PAY RATES

FACTORY RATE RANGES

For

GPR Eligible Employees

Effective March 2, 2008

MARIETTA GPR MAXIMUMS

LABOR GRADE

FACTORY

 

OFFICE & TECHNICAL

 

 

Current

New

Current

New

 

 

March 2, 2008

 

March 2, 2008

18

30.37

31.58

30.37

31.58

17

29.54

30.72

29.52

30.70

16

29.18

30.35

28.95

30.11

15

28.79

29.94

28.51

29.65

14

28.49

29.63

27.02

28.10

13

28.19

29.32

26.85

27.92

12

27.93

29.05

26.61

27.67

11

27.77

28.88

26.45

27.51

10

26.94

28.02

26.29

27.34

9

26.78

27.85

26.12

27.16

8

26.57

27.63

25.95

26.99

7

26.46

27.52

25.10

26.10

6

24.86

25.85

24.86

25.85

5

24.72

25.71

24.72

25.71

4

24.64

25.63

24.64

25.63

3

24.58

25.56

24.58

25.56

2

24.43

25.41

24.43

25.41

1

24.28

25.25

24.28

25.25

NOTE: All individuals with bargaining unit rights on the active payroll, approved leave of absence or on layoff June 14, 1993 (when subsequently recalled) shall be eligible for a Guaranteed Personal Rate (GPR) while assigned to Labor Grades 1 thru 14 Factory and 1 thru 16 Technical and Office.

ARTICLE VIII – PAY RATES

RATE RANGES FOR LABOR GRADES

MARIETTA NON GPR MAXIMUMS

LABOR GRADE

FACTORY

OFFICE & TECHNICAL

 

Current

New

Current

New

 

 

March 2, 2008

 

March 2, 2008

18

30.37

31.58

30.37

31.58

17

29.54

30.72

29.52

30.70

16

29.18

30.35

28.63

29.78

15

28.79

29.94

27.82

28.93

14

27.77

28.88

27.00

28.08

13

26.56

27.62

26.56

27.62

12

25.35

26.36

25.35

26.36

11

24.54

25.52

24.54

25.52

10

23.71

24.66

23.71

24.66

9

22.90

23.82

22.90

23.82

8

22.07

22.95

22.07

22.95

7

21.24

22.09

21.24

22.09

6

20.30

21.11

20.30

21.11

5

19.38

20.16

19.38

20.16

4

18.45

19.19

18.45

19.19

3

17.52

18.22

17.52

18.22

2

16.61

17.27

16.61

17.27

1

15.68

16.31

15.68

16.31

Note: These ranges are applicable only to employees hired or rehired after June 14, 1993.

ARTICLE VIII – PAY RATES

JOB CLASSIFICATIONS AND RATE RANGES

CLARKSBURG

JOB

CODE

GPR

NON GPR

 

Current

New

Current

New

 

 

March 2, 2008

 

March 2, 2008

RMC493

29.19

30.36

29.19

30.36

RMC483

15.67

16.30

15.67

16.30

RMC473

26.4

27.46

21.18

22.03

RMC463

27.93

29.05

25.35

26.36

RMC453

26.46

27.52

21.24

22.09

RMC443

26.46

27.52

21.24

22.09

RMC423

28.49

29.63

27.76

28.87

RMC413

27.93

29.05

25.35

26.36

RMC403

29.77

30.96

29.77

30.96

RMC383

26.46

27.52

21.24

22.09

RMC363

28.51

29.65

27.81

28.92

RMC353

29.54

30.72

29.54

30.72

GPR Range Note: These ranges are only applicable to those employees eligible for a Guaranteed Personal Rate (GPR) as defined by the agreement.

Non-GPR Range Note: These ranges are applicable only to employees hired or rehired after June 14, 1993.

ARTICLE VIII – PAY RATES

JOB CLASSIFICATIONS AND RATE RANGES

MERIDIAN

JOB

CODE

GPR

NON GPR

 

Current

New

Current

New

 

 

March 2, 2008

 

March 2, 2008

RML493

29.19

30.36

29.19

30.36

RML483

15.67

16.30

15.67

16.30

RML473

26.40

27.46

21.18

22.03

RML463

27.93

29.05

25.35

26.36

RML453

26.46

27.52

21.24

22.09

RML443

26.46

27.52

21.24

22.09

RML423

28.49

29.63

27.76

28.87

RML413

27.93

29.05

25.35

26.36

RML403

29.77

30.96

29.77

30.96

RML383

26.46

27.52

21.24

22.09

RML363

28.51

29.65

27.81

28.92

RML353

29.54

30.72

29.54

30.72

GPR Range Note: These ranges are only applicable to those employees eligible for a Guaranteed Personal Rate (GPR) as defined by the agreement.

Non-GPR Range Note: These ranges are applicable only to employees hired or rehired after June 14, 1993.

COST-OF-LIVING ADJUSTMENT

(1.) In addition to the base rate of pay of each employee, a Cost-of-Living (COL) Adjustment shall be paid to each employee in accordance with the provisions of this section.

(2.)(a) Effective January 3, 2009, the current cumulative Cost-of-Living Adjustment payable on that date (including the amount effective on that date) shall be added to the maximums and minimums of the rate ranges in Article VIII, Section 2.

(b) Effective January 2, 2010, the difference between the current cumulative Cost-of-Living Adjustment, and such previous adjustment as set forth in Subsection 2(a), if any, payable on that date (including the amount effective on that date) shall be added to the maximums and minimums of the rate ranges in Article VIII., Section 2.

(c) Effective January 8, 2011, the difference between the current cumulative Cost-of-Living Adjustment, and such previous adjustment as set forth in Subsection 2(b), if any, payable on that date (including the amount effective on that date) shall be added to the maximums and minimums of the rate ranges in Article VIII., Section 2.

On each of the above dates, the employee's base rate will increase by the amount of COL being received by that employee on that date.

Employees hired after the date upon which the COLA is folded into the base rate shall be eligible for only that COLA which becomes effective after their date of hire.

(3.) The Cost-of-Living Adjustment, if any, shall be determined in accordance with changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, (CPI-W), (United States City Average-All Items, 1982-1984 = 100), revised by the Bureau of Labor Statistics based on the 1982-1984 Survey of Consumer Expenditures, and published monthly by the Bureau of Labor Statistics, U.S. Department of Labor, and hereinafter referred to as the "Price Index".

(4.) During the period of the Agreement, COL Adjustments shall be made at the following times:

Effective Date of Based Upon Three-Month Average

Adjustment of The Price Indexes For:

Pay Period

commencing on:

July 5, 2008 March 2008, April, May,

October 4, 2008 June, July, August

January 3, 2009 September, October, November

April 4, 2009 Dec. 2008, January 2009,February,

July 4, 2009 March, April, May

October 3, 2009 June, July, August

January 2, 2010 September, October, November

April 3, 2010 Dec. 2009, January 2010, February,

July 3, 2010 March, April, May

October 2, 2010 June, July, August

January 8, 2011 September, October, November

In determining the three-month average of the Indexes for each specified period, the computed average shall be rounded to the nearest 0.1 Index Point.

(5.) Effective the payroll period commencing July 5, 2008 the Cost-of-Living Adjustment factor shall be determined in accordance with the following table:

Three Month Average

BLS Consumer Price Index COL Adjustment Factor

206.7 and Below* 0

206.8 – 207.0 $.01 Per Hour

207.1 – 207.3 .02

207.4 – 207.6 .03

207.7 – 207.9 .04

208.0 – 208.2 .05

208.3 – 208.5 .06

208.6 – 208.8 .07

208.9 – 209.1 .08

209.2 – 209.4 .09

209.5 – 209.7 .10

*The January 2008 Index is forecast to be 206.7. Should the actual index differ, an adjustment to the table above will be necessary to reflect the actual index number.

And so forth with $.01 for 0.3 point change in the Average Index for the appropriate date set forth in Paragraph 4 above.

(6.) The amount of any COL Adjustment in effect at the time shall be included for all hours worked after the effective date of the adjustment and in computing overtime payments, vacation and sick leave payments, pay for unused sick and injury leave, military leave, holiday, jury duty, jury examination and witness payments, and for no other purpose.

(7.) In the event that the Bureau of Labor Statistics (BLS), United States Department of Labor, discontinues publication of the Price Index described in Paragraph (3) above, the Company and the Union shall enter into immediate negotiations to determine the appropriate index to be used. The purpose of these negotiations shall be to insure that the payments to be made under this Article will be as intended by the parties and shall be no less than that which would have occurred had the Price Index been continued unchanged in its present form. In the event the parties are unable to agree within sixty (60) days of the discontinuance of the Price Index, this dispute shall be submitted to final and binding arbitration as provided for in the Agreement. The Cost-of-Living Adjustment, if any, shall be retroactive to the appropriate effective date.

(8.) In the event the Bureau of Labor Statistics does not issue the appropriate Price Indexes on or before the beginning of one of the pay periods referred to in Paragraph (4), any adjustment in the COL Adjustment required by such appropriate Indexes shall be effective at the beginning of the first pay period after receipt of the Indexes.

(9.) No adjustment, retroactive or otherwise, shall be made due to any revision which may later be made in the published figures for the Price Index for any month or months specified in Paragraph (4).

Supplemental COLA

A supplemental cost of living payment of $800 will be paid on or before December 19, 2008 to each employee on the active payroll or approved leave of absence of less than one year on December 6, 2008.

On or before December 18, 2009, a supplemental cost of living payment in the amount of $800 will be paid to each employee on the active payroll or approved leave of absence of less than one year on December 5, 2009.

On or before December 17, 2010, a supplemental cost of living payment in the amount of $800 will be paid to each employee on the active payroll or approved leave of absence of less than one year on December 4, 2010.

The entire Supplemental COLA Payment may be deferred to the Hourly Savings Plan Plus (401K) upon completion of the appropriate form.

Holidays

Local Lodge 709

Section 3 – Holidays*

(1) The Company recognizes the following holiday schedule during the period of this Agreement:

2008

Memorial Day Monday 05/26/08 8

Independence Day Friday 07/04/08 8

Labor Day Monday 09/01/08 8

Thanksgiving Thursday 11/27/08 8

Friday 11/28/08 8

Christmas Holiday Wednesday 12/24/08 8

Thursday 12/25/08 8

Friday 12/26/08 8

Monday 12/29/08 8

Tuesday 12/30/08 8

Wednesday 12/31/08 8___

Total Holiday Hours 88

2009

New Year’s Day Thursday 01/01/09 8

Friday 01/02/09 8

Memorial Day Monday 05/25/09 8

Independence Day Friday 07/03/09 8

Labor Day Monday 09/07/09 8

Thanksgiving Day Thursday 11/26/09 8

Friday 11/27/09 8

Christmas Holiday Thursday 12/24/09 8

Friday 12/25/09 8

Monday 12/28/09 8

Tuesday 12/29/09 8

Wednesday 12/30/09 8

Thursday 12/31/09 8__

Total Holiday Hours 104

2010

New Year’s Day Friday 01/01/10 8

Memorial Day Monday 05/31/10 8

Independence Day Monday 07/05/10 8

Labor Day Monday 09/06/10 8

Thanksgiving Thursday 11/25/10 8

Friday 11/26/10 8

Christmas Holiday Thursday 12/23/10 8

Friday 12/24/10 8

Monday 12/27/10 8

Tuesday 12/28/10 8

Wednesday 12/29/10 8

Thursday 12/30/10 8

Friday 12/31/10 8___

Total Holiday Hours 104

Total for Contract Period 296

* In order to provide the equivalent of 37 holidays or 296 hours of holiday pay, each employee on the active payroll as of January 1, 2006, or on an approved leave of absence of less than one year, or on military leave will have an additional eight (8) hours credited to their vacation balance on January 21, 2006. Any employee who is not scheduled to receive a full week check may receive a payment from their vacation balance to cover the difference between hours worked and a normal weeks pay. Employee requests for payment should be made to the Payroll Accounting Department at least one (1) week in advance.

(2) Full pay (eight (8) hours at straight time including shift bonus and odd work week bonus, if any) shall be paid to employees for each of these holidays regardless of the day of the week upon which the holiday falls. In addition, two times the regular rate of the employee shall be paid for hours worked on holidays.

(3) In order to be eligible for holiday pay, an employee must have worked or have been on a vacation or a paid leave (other than paid sick leave) on the last work day before or the first work day after the holiday; except that when the holiday falls on the day before employment or the day after termination, or during an employee's leave, no pay under this Section shall be granted.

(4) Should a recognized holiday fall upon a Sunday, the Monday immediately following such shall be observed as the holiday. Should a recognized holiday fall upon a Saturday, the Friday immediately preceding such Saturday shall be observed as the holiday unless the work schedule of the majority of employees includes Saturdays, in which event the holiday shall be observed on such Saturday. Should a holiday fall upon the sixth or seventh day of the work week of an employee assigned to an odd work week, the preceding or the following day, respectively, shall be considered a holiday for such employee.

Holidays

Local Lodges 1027 and 2386

2008

Memorial Day Monday 05/26/08 10

Independence Day Thursday 07/03/08 10

Labor Day Monday 09/01/08 10

Thanksgiving Thursday 11/27/08 10

Christmas Holiday Wednesday 12/24/08 10

Thursday 12/25/08 10

Monday 12/29/08 10

Tuesday 12/30/08 10

Wednesday 12/31/08 10___

Total Holiday Hours 90

2009

New Year’s Day Thursday 01/01/09 10

Memorial Day Monday 05/25/09 10

Independence Day Thursday 07/02/09 10

Labor Day Monday 09/07/09 10

Thanksgiving Day Thursday 11/26/09 10

Christmas Holiday Thursday 12/24/09 10

Monday 12/28/09 10

Tuesday 12/29/09 10

Wednesday 12/30/09 10

Thursday 12/31/09 10__

Total Holiday Hours 100

2010

Memorial Day Monday 05/31/10 10

Independence Day Monday 07/05/10 10

Labor Day Monday 09/06/10 10

Thanksgiving Thursday 11/25/10 10

Christmas Holiday Thursday 12/23/10 10

Monday 12/27/10 10

Tuesday 12/28/10 10

Wednesday 12/29/10 10

Thursday 12/30/10 10__

Total Holiday Hours 90

2011

New Year’s Day Monday 01/03/11 10

Total for Contract Period 290

* In order to provide the equivalent of 37 holidays or 296 hours of holiday pay, each employee on the active payroll as of January 1, 2009, or on an approved leave of absence of less than one year, or on military leave will have an additional six (6) hours credited to their vacation balance on January 18, 2009.

(2) Full pay (ten (10) hours at straight time including shift bonus and odd work week bonus, if any) shall be paid to employees for each of these holidays regardless of the day of the week upon which the holiday falls. In addition, two times the regular rate of the employee shall be paid for hours worked on holidays.

(3) In order to be eligible for holiday pay, an employee must have worked or have been on a vacation or a paid leave (other than paid sick leave) on the last work day before or the first work day after the holiday; except that when the holiday falls on the day before employment or the day after termination, or during an employee's leave, no pay under this Section shall be granted.

(4) Should a recognized holiday fall upon a Sunday, the Monday immediately following such shall be observed as the holiday. Should a recognized holiday fall upon a Saturday, the Friday immediately preceding such Saturday shall be observed as the holiday unless the work schedule of the majority of employees includes Saturdays, in which event the holiday shall be observed on such Saturday. Should a holiday fall upon the sixth or seventh day of the work week of any employee assigned to an odd work week, the preceding or the following day, respectively, shall be considered a holiday for such employee.

LOCKHEED MARTIN AERONAUTICS COMPANY – MARIETTA

BENEFITS PLAN

PARTS B, C AND I

LOCKHEED MARTIN HOURLY BASIC BENEFIT PLAN

AMENDMENT AGREEMENT

This Agreement is entered into effective March 2, 2008 between the International Association of Machinists and Aerospace Workers for itself and on behalf of the following District and Local Lodges (hereinafter referred to as the "Union")

The Aeronautical Machinists Local Lodge 709, 1027, & 2386

and Lockheed Martin Aeronautics-Marietta (hereinafter referred to as "Company").

RECITAL

The Company and the Union have negotiated and reached agreement, subject to the conditions set forth below, that the Company will modify and enhance the Lockheed Martin Hourly Basic Benefit Plan (hereinafter referred to as "Plan") as described below.

AGREEMENT

Therefore, subject to the conditions set forth herein, the parties agree as follows:

1. The changes in the Plan as provided herein are subject to the Company's obtaining and retaining all necessary permits and approvals of cognizant state and Federal authorities required to establish and continue the qualification of the Plan for Federal income tax purposes under applicable provisions of the United States Internal Revenue Code and to meet the requirements of the Employee Retirement Income Security Act (ERISA) of 1974, as amended, and regulations thereunder.

2. The Company will increase the quarterly contribution for each employee from $55 to $60.

3. For employees hired after March 1, 2005, the Company will provide an additional quarterly contribution of $25.00 $30.00.

4. All legally required changes will be incorporated in the final document. A draft copy of the proposed Plan document has been provided to the Union.

5. This Agreement is applicable to the employees of the Company covered by the 2008 Collective Bargaining Agreement between the Company and the Union; however, the applicability of the Plan shall be determined and be governed by the Plan's provisions and need not be limited to the employees of the Company. The Company will take no action in contravention of this Agreement with respect to employees covered by said Collective Bargaining Agreement, except as may be necessary to obtain approval of governmental authorities as referred to in paragraph 1 above.

6. The amendments stated herein or incorporated herein shall become effective March 2, 2008.

7. This Agreement shall be of no effect after its expiration or termination and shall not affect the rights of the Company thereafter to continue, amend, modify, suspend or terminate the Plan. This Agreement shall remain in effect for the entire period as the 2008 Collective Bargaining Agreement between the Company and the Union and may be opened for modification, amendment, or termination at the same time and under the same conditions as provided in such Collective Bargaining Agreement.

Executed by the authorized representatives of the parties this ___day of ________, 2008.

For the Union: For the Company:

The Aeronautical Machinists Lockheed Martin

Local Lodge 709, 1027 & 2386 AERONAUTICS-MARIETTA

By:__________________ By:__________________

 

By:__________________ By:__________________

RETIREMENT PLAN

AMENDMENT AGREEMENT

This Agreement is entered into effective March 2, 2008 between the International Association of Machinists and Aerospace Workers for itself and on behalf of the following District and Local Lodges (hereinafter referred to as "Union")"

The Aeronautical Machinists Local Lodge 709, 1027, & 2386

and Lockheed Martin Aeronautics-Marietta (hereinafter referred to as "Company").

RECITAL

The Company and the Union have negotiated and reached agreement, subject to the conditions set forth below, that the Company will modify the Retirement Plan for Certain Hourly Employees (hereinafter referred to as "Plan").

AGREEMENT

Therefore, subject to the conditions set forth herein, the parties agree as follows:

1. The changes in the Plan as provided herein are subject to the Company's obtaining and retaining all necessary permits and approvals of cognizant State and Federal authorities required to establish and continue the qualification of the Plan for Federal income tax purposes under applicable provisions of the United States Internal Revenue Code and to meet the requirements of the Employee Retirement Income Security Act (ERISA) of 1974, as amended, and regulations thereunder.

2. All legally required changes will be incorporated in the final document.

3. Except as specifically amended as provided herein the Plan as in effect March 2, 2005 shall continue in full force and effect.

4. This Agreement shall remain in effect for the same period as the 2008 Collective Bargaining Agreement, between the Company and the Union and may be opened for amendment or termination at the same time and under the same conditions as provided in that collective bargaining agreement.

5. For a Member who retires and begins receiving a monthly benefit on or after the first day of the month following ratification of the Collective Bargaining Agreement, the monthly Normal Retirement Benefit shall be determined by multiplying the Member's years of Credited Service by seventy-seven dollars ($77.00). This rate shall also apply retroactively to retirements on or after January 1, 2008.

6. For a Member who retires and begins receiving a monthly benefit on or after the first day of the month following ratification of the Collective Bargaining Agreement under Sections 4.05(A) (2), 4.05 (A) (3) and 6.01(B) of the Plan will receive a benefit of twenty-nine dollars ($29.00) per year of credited service. This rate shall also apply retroactively to retirements on or after January 1, 2008. Notwithstanding any provision in the Plan to the contrary, for any Member who retires on or after January 1, 1996, the Credited Service counted for benefit determination under this Supplement A-6, paragraph 4, will also be counted as Credited Service under Section 6.02 of the Plan (Early Retirement Benefits - 85 point determination only).

7. Install 75% joint and survivor benefit.

Effective March 2, 2008, the plan will be amended to include a 75% joint and survivor benefit.

Executed by the authorized representatives of the parties this ___day of _________, 2008.

For the Union: For the Company:

The Aeronautical Machinists LOCKHEED MARTIN

Local Lodge 709, 1027, & 2386 AERONAUTICS-MARIETTA

By:___________________ By:____________________

By:___________________ By:_____________________

LOCKHEED MARTIN HOURLY EMPLOYEE SAVINGS PLAN PLUS

AMENDMENT AGREEMENT

This Agreement is entered into effective March 2, 2008 between the International Association of Machinists and Aerospace Workers for itself and on behalf of the following District and Local Lodges (hereinafter referred to as "Union"):

The Aeronautical Machinists Local Lodges 709, 1027, & 2386

and Lockheed Martin Aeronautics-Marietta (hereinafter referred to as "Company").

RECITAL

The Company and Union have negotiated and reached an Agreement, subject to the conditions set forth below, that the Company will modify and enhance the Lockheed Martin Hourly Employee Savings Plan Plus (hereinafter referred to as "Plan").

AGREEMENT

Therefore, subject to the conditions set forth herein, the parties agree as follows:

1. The changes in the Plan as provided hereunder are subject to Company's obtaining and retaining all necessary permits and approvals of cognizant state and federal authorities required to establish and continue the qualification of the Plan for Federal income tax purposes under applicable provisions of the United States Internal Revenue code and to meet the requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, and regulations thereunder.

2. The Company will amend the Plan as follows effective on March 2, 2008 or on such other date as provided below, with respect to employees of the Company on such effective date who are covered by the collective bargaining agreement between the Company and the Union:

2.A. Amend Supplement A-4 as follows:

Company matching contributions will be in Cash and will be 50% of the Matched Elective Deferral Amount.

A weekly Elective Deferral Amount subject to Corporation Matching Contributions under Section 4.01 may be specified as follows for eligible employees of Lockheed Martin Aeronautics-Marietta.

Elective Deferral Amount (Dollars)

Subject to

Corporation Matching Contributions

Up to $64 weekly in $1 dollar increments

B. Supplement A-4:

Effective March 2008 paragraph (2) (b)(iii) has been amended to provide a maximum unmatched Elective Deferral Amount of $150 for all eligible employees of Lockheed Martin Aeronautics-Marietta.

Effective March 2, 2008 the Plan will be amended to eliminate the requirement to complete at least six months of service at the Company.

These changes will be effective as soon as administratively feasible after ratification of the agreement.

Executed by the authorized representatives of the parties this _____day

of_______________, 2008.

 

For the Union: For the Company:

The Aeronautical Machinists LOCKHEED MARTIN

Local Lodge 709, 1027, & 2386 AERONAUTICS-MARIETTA

By:____________________ By:________________________

By:____________________ By:________________________

 

ARTICLE VII – PAY PROVISIONS

Section 12 – Field Duty,

In response to the Union’s proposal on February 21, 2008, the Company makes a counter-proposal as stated herein:

(5) Except as set forth in Paragraph (6) below, an employee required to use his own automobile for travel on such field duty assignment or an occasional travel for authorized Company business shall be reimbursed therefore at the current allowable mileage rate as defined by the Internal Revenue Service (IRS) not to exceed mileage of the most direct route as shown in the most recent addition of the Rand-McNally Highway Mileage Chart will be allowed rate of thirty-one cents (31¢) per mile for mileage necessary to the performance of such work. The Company will also provide for such an employee on such occasions personal liability insurance coverage with respect to liability, if any, to other employees who are passengers engaged in such above referred to travel for such purpose, except that such insurance coverage shall apply only after such employee's own personal liability insurance has been first applied, in the amount of fifty-thousand-dollars ($50,000.00) maximum per person or three hundred-thousand-dollars ($300,000.00) maximum per accident.

Lockheed Martin Aeronautics Company – Marietta

NON-ECONOMIC PROPOSAL FOR CONCLUSION

PARTS A AND B

SUPPLEMENTS AND LETTERS OF AGREEMENT

FEBRUARY 27, 2008

 

NON ECONOMIC PROPOSALS

SECTION 1

Section 1 of The Company Non-Economic Proposals provides a summary description of Non-Economic Proposals for Conclusion. Section 2 of The Company Non-Economic Proposals provides language as the Proposal would be incorporated into the Agreement.

This is a complete package proposal for settlement of initial proposals by both Union and Company for non-economic modifications and amendments resulting from the 2008 Contract Negotiations. Except as set forth herein, it is proposed that all other non-economic provisions of Part A and B, Supplements and Letters of Agreement, of the Agreement currently in effect remain unchanged.

PROPOSALS CONCERNING PART "A" ENTITLED, "PROVISIONS APPLICABLE TO THE ENTIRE MULTI-PLANT BARGAINING UNIT."

PART A

Section 3(A) – Period of Agreement and Procedure for Amending or Replacing Agreement

Nature of Amendments:

Provide for a 36-month Agreement – March 2, 2008 through March 6, 2011.

PROPOSALS CONCERNING PART "B" ENTITLED, "PROVISIONS APPLICABLE TO MARIETTA PLANT REPRESENTED EMPLOYEES ONLY." INCLUDING SUPPLEMENTS AND LETTERS OF AGREEMENT RELATED THERETO.

PART B

ARTICLE II – Union – Company Relations

Section 1 – Union Stewards and Committeemen

(A) Number of Stewards and Committeemen:

Nature of Amendments:

The parties are agreeable to revise paragraph 2 to allow for electronic notification to Labor Relations upon selection of Shop Steward(s) and/or Committeemen.

Section 6 – Reports and Other Information to be Furnished to the Union

Nature of Amendments:

In response to the Union’s proposal, the Company is agreeable to revise paragraphs A, B, C, D, and F to allow for an electronic version of the referenced information to be provided to the union in compact disk (CD) format.

ARTICLE IV – Seniority

Section 3 – Layoffs

(A) General Layoff:

Nature of Amendments:

A(1) In response to the Union’s proposal, the Company is agreeable to revise paragraph 1 in Sub-Section (A) to allow for a next preference to be the use of the last five (5) digits of the

employee number in cases where employees who possess the same seniority date become vulnerable to layoff. Additionally, employee numbers (or prior service considerations) cannot be used for the purpose of displacing into another department or classification.

A (12) – The parties are agreeable to modify the 3rd sentence of paragraph 2 to replace "indefinite period" with "a maximum of ninety (90) months", and replace gender reference with "they."

A(13) – The parties are agreeable to develop a new paragraph 13 to include provisions for employees’ who involuntarily lose their security clearance or program access and can no longer perform the available work in the department to be declared surplus and placed in accordance with Article IV, Section 3.

A(14) – Old paragraph 13 language – Number change only.

Section 4 - Recall

Recall:

Nature of Amendments:

In response to the Union’s proposal, the Company is agreeable to revise paragraph to allow for the next preference to be given to employees with the lowest last five (5) digits of their employee number in cases where employees who possess the same seniority date are recalled.

A(11) – In response to the Union’s proposal, the Company is agreeable to revise paragraph 3 to allow employees refusing recall of a temporary duration to have subsequent temporary recall opportunities after a three (3) month period instead of the current six (6) month period.

Section 8 – Loss of Seniority

Nature of Amendments:

The parties are agreeable to revise Sub-Section 3 to remove references to "telegram", replace reference to "Employment" with "Labor Relations", and replace gender references with "them" and "their" where appropriate.

Section 9 – Promotion and Upgrading

Sub-Section 2

Nature of Amendments:

The parties are agreeable to modify Sub-section 2 to allow for the use of a standard background resume form which is to be completed in conjunction with the employee’s request for upgrade. The background resume will be evaluated against the established criteria upon submittal of the resume to labor relations.

Sub-Section 2(d)

Nature of Amendments:

In response to the Union’s proposal, the Company is agreeable to revise language to reflect a maximum of 4.5 hours of straight time pay per day for Classification Grievance Committee instead of the current 4.0 hours.

ARTICLE VI – Employee Privileges

Sections 1 and 2 – Vacations and Sick and Injury Leave

Sub-Section A(1) , A(5) and Sub-Section (A)

Nature of Amendments:

A (1) In response to the Union’s proposal, the Company is agreeable to provide the appropriate accrual amount of vacation to employee’s who utilize any combination of paid vacation and holiday pay for the entire month.

Sub-Section A (5) and Sub-Section (A)

Nature of Amendments:

The parties are agreeable to modify Sub-Section A (5) and Sub-Section (A) to ensure pay out of accrued vacation and sick and injury leave balances at the time of termination.

In response to the Union’s proposal, the Company is agreeable to allow employee’s who are laid off or who terminate for the purpose of entering the Armed Forces to have up to twenty (20) hours of vacation and sick and injury leave (not to exceed the number of hours paid out) reinstated by reimbursing the number of hours desired at the employee’s current rate of pay plus any taxes required. This reimbursement must occur within sixty (60) days after returning to the active payroll.

ARTICLE VII – Pay Rates

Section 1 – Wage Rates and Performance Reviews

Paragraph (D) – Pay Rate on Promotion

Nature of Amendments:

The parties are agreeable to modify paragraph D to replace gender references with proper term(s) and to add new paragraph explaining calculation of pay when an employee receives a promotion while in rate retention. Essentially, an employee promoted while in rate retention will be paid ten cents (10¢) per hour above his rate as if he had progressed to the end of the retention period. If the employee is within the rate range of the classification then the promotion rate is ten cents (10¢) above the current rate of the employee whichever is the lower rate.

SUPPLEMENT "F"

LETTERS OF PROCEDURE AND UNDERSTANDING

Letter 24 – Attendance Irregularities – Sick Leave

In response to the Union’s proposal, the Company is agreeable to modify the 1st and 2nd paragraph to allow for employee’s to take paid sick and injury leave in one (1) hour increments up to nine (9) hours in a single day.

Letter 41 – Payment of Union Senior Board Member for Work Performed Regarding Employee benefits

In response to the Union’s proposal, the Company is agreeable to modify the 2nd paragraph to allow for payment of one-half of the salary of the Union Senior Board member (up to 4.5 hours at straight time in a single day each week) who is assigned to work with represented employees regarding their benefits.

Letter 50 – Substantial Change Grievance Procedure

The parties are agreeable to modify letter to revise the title of Labor Relations Chair person, allow for meetings to be scheduled quarterly or as otherwise mutually agreed to between the parties, and to reduce the FMCS panel of arbitrators number upon mutual agreement.

New Letter – Firefighter Operations and Scheduling

In response to the Union’s proposal, the Company is agreeable to add new letter to the agreement to incorporate to the Memorandum of Understanding on Twenty-Four/Forty-Eight Work Schedule contained in the 2005 Agreement for Conclusion and the Memorandum of Agreement regarding Fire Department Competitive Practices (Attachment 17) dated March 8, 1999, as agreed in the 2008 negotiations.

New Letter – Third party medical review

In response to the Union’s proposal, the Company is agreeable to add new letter to the agreement to allow for a third party medical review in cases where there is a difference of opinion between an employee’s personal physician and Company Medical department relative to an employee’s fitness for duty. Employee’s must provide necessary release for medical documentation which will be provided to the independent medical reviewer to conduct the evaluation. The costs for conducting the evaluation will be the responsibility of the Company provided the employee reports for all recommended appointments and follows the recommendations of the independent reviewer. Employee failure to report for scheduled appointments will result in the employee assuming responsibility for associated costs and any subsequent efforts for obtaining independent review will be withdrawn.

New Letter – Maintenance Subcontracting Agreement

In response to the Union’s proposal, the Company is agreeable to include in the agreement a Memorandum of Understanding regarding Maintenance Subcontracting which will allow for continuation of the existing understanding through the life of the 2008 collective bargaining agreement.

SUPPLEMENT "H"

ATTENDANCE STANDARDS – HOURLY EMPLOYEES

Procedures

Section (B) – Attendance

Nature of Amendments:

(3) – The parties are agreeable to modify paragraph 3 to add new sentence which will allow for employee’s who have unsatisfactory attendance (Verbal Warning or greater) to be required to use any accrued vacation or sick leave prior to any unpaid absences if they have unused balances in those accounts.

Section (C) – Attendance Related Discipline

Nature of Amendments:

5(a) – The parties are agreeable to modify paragraph 5(a) to identify absences that do not count when assessing compliance with six (6) month perfect attendance provisions. Additionally, paragraph will be modified to allow for employees who receive a Verbal Warning and subsequently have perfect attendance as defined will again be able to group consecutive days of absence for the same illness, and where employee’s who received a Verbal Warning with subsequent perfect attendance as defined will regain eligibility for the excused tardy as defined.

SUPPLEMENT "I"

PLANT-WIDE OVERTIME AGREEMENT

Principles of Operation

Distribution

Nature of Amendments:

The parties are agreeable to modify the 1st paragraph of Sub-Section 1 to provide in cases where job continuity is an issue, the spread of hours between the employee offered the work and the employee lowest in hours on the overtime list will not exceed fifty (50) hours or as otherwise mutually agreed to by the Department Manager and the Shop Steward.

GENERAL ITEMS

The parties are agreeable to establish a Memorandum of Understanding regarding a Tobacco Free Workplace policy throughout the facility.

The parties are agreeable to establish a Memorandum of Understanding regarding participation in a Corporate sponsored Fitness Center Reimbursement Program (CPS 547) which will provide a maximum benefit of $250 per employee, per calendar year.

In response to the Company’s proposal, the Union is agreeable to participate in the Recognition and Incentive Program as described in Aero Code policy AC-3697.

The parties are agreeable to establish an employee upgrade process for implementation which will include a jointly developed resume form to be used in conjunction with employee upgrade requests.

In response to the Union’s proposal, the Company is agreeable to establish a Memorandum of Understanding regarding Leaves Without Pay which will allow for Joint Company/Union Committee review of cases where either party identifies examples of inconsistent application of Article VI, Section 4. The intent of this memorandum is to communicate guidance to management for consistency in application.

6. In response to the Union’s proposal, the Company is agreeable to regularly review it’s forecasted staffing requirements and where clearance requirements could be identified, allow qualified employees who request to be cleared to apply for a clearance to allow for timely placement as job openings occur, and within the guidelines provided by the DoD which address the process for application to obtain a security clearance.

7. The parties are agreeable to establish a letter of clarification which explains changes made in Supplement H regarding use of unpaid absences until they are issued discipline for unsatisfactory attendance, and clarification of the process for regaining the ability to use unpaid absences and excused tardies when satisfactory attendance is reestablished.

Lockheed Martin Aeronautics Company – Marietta

NON-ECONOMIC PROPOSAL FOR CONCLUSION

PARTS A AND B

SUPPLEMENTS AND LETTERS OF AGREEMENT

February 27, 2008

NON ECONOMIC PROPOSALS

SECTION 2

Section 1 of The Company Non-Economic Proposals provides a summary description of Non-Economic Proposals for Conclusion. Section 2 of The Company Non-Economic Proposals provides language as the Proposal would be incorporated into the Agreement.

This is a complete package proposal for settlement of initial proposals by both Union and Company for non-economic modifications and amendments resulting from the 2008 Contract Negotiations. Except as set forth herein, it is proposed that all other non-economic provisions of Part A and B, Supplements and Letters of Agreement, of the Agreement currently in effect remain unchanged.

PROPOSALS CONCERNING PART "A" ENTITLED, "PROVISIONS APPLICABLE TO THE ENTIRE MULTI-PLANT BARGAINING UNIT."

PART A

Section 3(A) – Period of Agreement and Procedure for Amending or Replacing Agreement

(A) This Agreement shall remain in full force and effect from March 2, 2008, until and through March 6, 2011 and thereafter from year to year unless either the IAM&AW or LM AERO - MARIETTA gives notice in writing to the other party to this Agreement during the period from 12:01 a.m., December 17, 2010, through midnight December 31, 2010, or during a like period in any subsequent year proposing modifications or amendments to this Agreement.

PROPOSALS CONCERNING PART "B" ENTITLED, "PROVISIONS APPLICABLE TO MARIETTA PLANT REPRESENTED EMPLOYEES ONLY." INCLUDING SUPPLEMENTS AND LETTERS OF AGREEMENT RELATED THERETO.

PART B

ARTICLE II – Union – Company Relations

Section 1 – Union Stewards and Committeemen

(A) Number of Stewards and Committeemen:

(2) In unusual circumstances, particularly as may be presented in departments covering more than one location, the required number and location of Union Stewards and Committeemen may be adjusted by agreement between the parties. At a time mutually agreed upon, the Company shall permit all employees who are Union members to vote on Company property and during working hours once each year for Stewards and once each year for Committeemen. Additionally, when the merger of departments or the addition of a department or a shift makes necessary the election of a Union Steward and/or Committeeman, such election may be held on Company property and during working hours. The voting shall be conducted under rules and regulations agreed to between the Company and the Union. The Union will provide electronic notification (e-mail or fax) to Labor Relations upon selection of Shop Steward(s) and/or Committeemen.

Section 6 – Reports and Other Information to be Furnished to the Union

(A) The Union may request the following reports which are to be furnished as soon as possible; such request shall be made only by the President or the Financial Secretary of the Union. The Union assumes full responsibility for maintaining confidentiality of information contained in these reports or any associated reports provided upon request, and agrees not to disseminate to unauthorized person(s) or agencies. Reports referenced in Sub-Sections A, B, C, D and F of this section will be provided to the Union in compact disk (CD) format:

ARTICLE IV – Seniority

Section 3 – Layoffs

(A) General Layoff:

An employee who has acquired seniority rights pursuant to the provisions of Section 2 of this Article shall not be laid off under the general layoff provisions of this Sub-Section (A) unless all employees in his occupation who have not acquired seniority rights pursuant to the provisions of Section 2 of this Article have been laid off. In a department where a surplus in an occupation develops and employees in such department and occupation who have acquired seniority rights and possess the same seniority date become vulnerable to layoff, such employee(s) possessing prior service will be given preference (where prior service information is available) in the following order; Marietta Hires, Lockheed Martin Aeronautics Hires, Lockheed Martin Corporation Hires and Others. Employees will be considered in these groups and the employee with the earliest original hire date will be considered more senior. The next preference will be given to employees with the lowest last five (5) digits in their employee number. Employees will be considered in these groups and the employee with the earliest original hire date will be considered more senior. Employee numbers (or prior service considerations) cannot be used for the purpose of displacing into another department or classification.

Sub-Section 12

(12) An employee scheduled for downgrade within the occupation (unless the downgrade results from inability to perform the higher grade work) or scheduled for downgrade in lieu of layoff, may at the time such downgrade is offered, elect to take layoff in its place.

Provided, however, that the recall rights of an employee who takes voluntary layoff shall be suspended from the classification from which laid off for an indefinite period for a maximum of ninety (90) months or until the employee notifies Labor Relations in writing that he wishes they wish to be returned to the recall list.

                                        (A) Sub-Section 13

In the event an employee involuntarily loses their security clearance or program access and can no longer perform the work that is available in the department, the employee will be declared surplus and placed in accordance with provisions of this Article and Section.

                    (A) Sub-Section 14

(14) The word "occupation" includes all grades and Lead within an occupation, for example: Motor Rewinder is an occupation and includes Motor Rewinder Lead, Motor Rewinder A and Motor Rewinder B.

The word "classification" designates an occupation and in addition a specific grade of that occupation, as for example: Motor Rewinder A. Where there is only one grade in an occupation, such grade is assumed to be the A grade unless otherwise designated, for example: General Machinist. Classifications in the same labor grade are considered "lateral classifications".

Downgrading within an occupation refers to a movement from one grade of the occupation to a lower grade of the same occupation, as for example: Motor Rewinder A to Motor Rewinder B.

A downgrade in lieu of layoff refers to a movement from one classification to a lower-rated classification in a different occupation, for example: General Machinist to Machinist-Mill/Machine Tools Set up.

Section 4 - Recall

Recall:

Employees shall be recalled from the recall list into the classification in which the opening exists in order of seniority, where ability, skill and efficiency are substantially equal. Upon recall to a classification of employees who become eligible for recall and who possess the same seniority date, such employee(s) possessing prior service will be given preference (where prior service information is available) in the following order; Marietta Hires, Lockheed Martin Aeronautics Hires, Lockheed Martin Corporation Hires and Others. The next preference will be given to employees with the lowest last five (5) digits in their employee number. Employees will be considered in these groups and the employee with the earliest original hire date will be considered more senior. The recall list shall include:

A Sub-Section 11

An employee on layoff status may refuse recall to a job of temporary duration without losing his place on the recall list or his right to be considered for the next permanent opening for which he is eligible to be recalled. Employees refusing recall of temporary duration may be excluded from consideration for subsequent temporary recall for the following six (6) three (3) month period. A job of temporary duration, for the purpose of this paragraph, is defined as a job which, in the opinion of the Company at the time the offer is made, is of an anticipated duration of ninety (90) days or less. It is understood that the Company will use its best judgment in making such a determination, but will in no event be liable for errors in judgment in so determining.

Section 8 – Loss of Seniority

Sub-Section 3

(3) If, after a layoff, the employee is notified to report for work, by certified mail, or telegram, addressed to him them at his their address on record at time of layoff (or to the last subsequent address delivered by certified mail, telegram or in person to the Employment Labor Relations Office of the plant on the form designated for that purpose), and fails within one (1) week after notification or such additional time as the Company may grant to report for work.

Section 9 – Promotion and Upgrading

Sub-Section 2

Each employee may file upgrade requests for promotion to as many as five (5) higher rated classifications, excluding trainee classifications. Laid off employees will be considered at Labor Grade 4 for purposes of administering this Agreement. Upgrade requests, which may be filed either in writing on forms provided by the Company or electronically, will allow for the employee to document his previous job experience, education, training, and other qualifications. Requests shall be filed with the Company as provided herein at least fifteen (15) calendar days prior to the date such promotion or upgrading is made. A standard employee background resume form, jointly developed by the parties, shall be completed in conjunction with the employee’s request for upgrade. This form will be used to augment available records or used in lieu of personnel records. that are unavailable to the parties. After application, the candidate's records resume will be evaluated against the established criteria for placement into the classification. The Union’s Senior Negotiating Committee and a committee of a like number of Company Representatives will meet as often as necessary to consider all employee requests for promotion. Once an initial qualified list has been established for a particular occupation, the parties will not be required to establish a new list until the list of available candidates has been exhausted or for a period of 30 days if there are promotion requests for employees who are more senior than employees on the existing list. Employee applications will be reviewed in seniority order for placement on the qualified list. The Committee, at each meeting, will review only the number of upgrade requests necessary to maintain a sufficient number of qualified employees

to fill openings anticipated before its' next meeting. If, after review, the applicant is found to be qualified, he will be added to a list of other qualified employees for future placement and the initial upgrade request for that classification will be removed from the upgrade system. If the parties agree that the employee does not meet the established criteria for placement, the employee will be notified in writing and infor