A. Definition of Bargaining Unit and Employees Covered by This Agreement:

For the period of this Agreement, the Company recognizes and accepts the Union as the exclusive representative of the hereinafter defined employees of the Company for purposes of collective bargaining in respect to rates of pay, wages, hours of employment or other conditions of employment. The words "employee" or "employees" as used in this Agreement mean all employees of the Company, except those described in subsection B of this Section 1, employed to work in the job classifications listed in Supplement "A" and in new jobs established pursuant to the provisions of Article VIII, Section 1, subsection A of this Agreement at its plant or plants which are (and so long as they are) engaged in the manufacture of aircraft, missiles, spacecraft or items necessary to the functions of aircraft, missiles, spacecraft, antisubmarine warfare and ocean systems and related products which are operated by the Company within Los Angeles, Kern, Ventura, San Bernardino and Orange Counties of the State of California, as of the effective date of this Agreement, including any new plant or plants which the Company may hereafter establish or acquire and operate for the manufacture of aircraft, missiles, spacecraft or items necessary to the functions of aircraft, missiles, spacecraft, antisubmarine warfare and ocean systems and related products within Los Angeles, Kern, Ventura, San Bernardino and Orange Counties of the State of California, except where another collective bargaining agent has established collective bargaining rights in such new plant.

B. Employees Excluded From Bargaining Unit:

Personnel in the Security and Fire Protection organizations employed by the Company to work in the job classifications listed in Supplement "A" shall not be "employees" within this Agreement, except those assigned to the Material Destruction Worker, Fire Prevention Monitor, Identification/Visitor Control Specialist and Locksmith, Senior classifications. This exclusion from the bargaining unit shall not apply to any employee performing a different function or activity within the Company which, subsequent to the effective date of this Agreement, is transferred to the Security and Fire Protection organizations.

C. Recognition at Newly-Established or Acquired Plants:

In the event that the Lockheed Martin Aeronautics Company, Palmdale, California, a Division of Lockheed Martin Corporation, during the period of this Agreement establishes or acquires and operates a new plant which is located outside Los Angeles, Kern, Ventura, San Bernardino and Orange Counties, but within the State of California, and which is engaged in the manufacture of aircraft, missiles, spacecraft or items necessary to the functions of aircraft, missiles, spacecraft, antisubmarine warfare and ocean systems and related products, Aerospace/Defense Industry Related District Lodge 725, IAM and the International Association of Machinists and Aerospace Workers will claim the bargaining rights for nonexempt personnel employed at such new plant to work in the job classifications listed in Supplement "A" of this Agreement, and the Lockheed Martin Aeronautics Company, Palmdale, California, a Division of Lockheed Martin Corporation, will recognize Aerospace/Defense Industry Related District Lodge 725, IAM and the International Association of Machinists and Aerospace Workers and the separately chartered local lodge, referred to below, as the exclusive representative for purposes of collective bargaining in respect to rates of pay, wages, hours of employment or other conditions of employment for such personnel at such new plant, except where another collective bargaining agent has established collective bargaining rights in such new plant. Aerospace/Defense Industry Related District Lodge 725, IAM and the International Association of Machinists and Aerospace Workers agree in such event to charter a separate local lodge for each such new plant. Subject to the above and upon written notification to the Lockheed Martin Aeronautics Company, Palmdale, California, a Division of Lockheed Martin Corporation, that such separate local lodge has been duly chartered, all of the terms of this Agreement, as it may be amended and in effect at the time such new plant is established, shall then become the terms of a separate agreement for such newly established plant, except as to the matters provided for in the following Articles and Sections of this Agreement:

The provisions of items 1 through 5 above will be negotiated locally with the International Association of Machinists and Aerospace Workers and Aerospace/Defense Industry Related District Lodge 725, IAM and the separately charted lodge at the newly established plant and will become effective when final agreement on all such provisions is reached.

Salaried Employees Performing Bargaining

It is the intent of the Company that salaried personnel shall not perform work performed by employees in the bargaining unit except in the following types of situations:

The Company will use its best efforts to ensure that the terms of this provision are understood and applied throughout the Company in keeping with the intent herein.

Complaints involving repeat violations of this provision shall be subject to review at a meeting with the appropriate Branch Head, Labor Relations, the Union President and Business Representative. Such meetings shall be held at mutually agreed-to times at the request of either party.

A. Conditions of Employment:

B. The Company will deduct from the employee's wages and turn over to the Union, the Union membership dues of each employee who individually and voluntarily authorizes the Company in writing to make such deductions. The term "Union membership dues" as used herein shall include Union initiation or reinstatement fees of employees rehired by the Company, with or without seniority, when such employees are reinstated or rejoin the Union. Such deductions shall be made in accordance with the following provisions:

C. Both the Union and the Company shall have the right to notify employees of the provisions of this Section.

D. If a dispute arises in connection with the application of this Section and a settlement is not reached between the Labor Relations Department of the Company and the Union, such dispute shall be referred to arbitration without pursuing intervening steps in the grievance procedure and determined in accordance with the provisions of Article III, Section 6 of this Agreement.

E. Consistent with recognition of the Union as exclusive bargaining agent of employees under this Agreement, the Company on the first day of employment shall give each new employee a copy of this Agreement.

A. Where peculiar skills or specialized equipment are involved which are not available within the Company;

B. Where short-term or peak requirements necessitate the need for additional assistance because of an insufficient number of employees then available possessing the necessary maintenance skills to perform such work operations within the time required;

C. Where unusual or one-shot jobs are required which are not usually performed by the Company;

D. Where the volume of work on any particular job precludes the possibility of its completion within scheduled time limits.

It is not the intent of the Company to use on-site contractors for the purpose of reducing or transferring work ordinarily performed by maintenance employees in the bargaining unit.

A. The Company shall certify to the Union the number of employees who are in the various occupational classifications recognized by this Agreement. Such information shall be made available to Union Stewards.

B. The Company shall furnish the Union with lists of employees in their respective departments, showing rates, classifications, date of hire and shifts. Such lists of employees shall be coded in a manner which will indicate employees who have since the last previous such list:

C. Upon hiring an employee, the Company shall mail a copy of the hiring notice to the main Union office at 39047 10th Street East, Palmdale, California 93550 within 24 hours of the commencement of employment.

D. On a General Layoff, the Company will furnish the following:

E. On an Emergency Reduction of the Working Force, the Company will furnish the Union the following after adjustments have been made in accordance with the General Layoff Procedure:

F. The Company will furnish the Union a monthly list of employees dropped from Lists D, 2 and E, 3 by reason of loss of seniority.

G. The Company will, upon request from a Senior Steward to such Steward's Department Head, make available to such Senior Steward relevant information (such as information from the employee’s file, employment status change notice, reviews and Employee Performance Notice or their equivalent) concerning a complaint or grievance regarding attendance, discipline, rate or classification. Disputes arising out of the furnishing of such information will be referred to the Labor Relations Department.

H. The Company will furnish the Union a periodic report showing all open employee requisitions by classification.

I. The Company will notify the Union by letter of the name, seniority date, classification and department of a salaried employee returned to the bargaining unit within 15 working days.

J. The Company will furnish the Union with two copies of a report of employees by classification on recall status.

A. Eligibility Requirements, Selections and Status of Union Stewards:

B. Number of Union Stewards:

C. Time Off From Work:

D. Union Representation on an Overtime Day:

In the event a group of employees in the same department is required to work on the sixth or seventh day of their workweek or on one of the holidays recognized in Article VI, Section 3 of this Agreement, the Senior Steward may designate one of the employees within that group as an alternate Senior Steward by so notifying the Department Head. Such alternate Senior Steward will be permitted to take the necessary time off from work without loss of pay for discussion with the Department Head of employee complaints or to contact employees who have complaints which are of such emergency nature that they cannot properly await discussion by the regular Group or Senior Steward.

It is the intent that the Company give prompt notice to the Senior Steward of those employees who will be assigned to work on the sixth or seventh workday or on holidays recognized by this Agreement.

Notices of Union recreational, social and welfare activities;

C. Notices of Union appointments and results of Union elections;

D. Notices of Union meetings;

E. Such other notices as may be mutually agreed upon by the Union and the Company.

B. The procedure on grievances arising out of termination, layoff or rehiring shall be as follows:

The employee shall deliver the signed grievance to the Union, which may deliver such written grievance to the Labor Relations Office and proceed as set forth in Step 2 of this Section. Unless the written grievance, signed by the employee, has been delivered to the Labor Relations Office within nine working days after the termination, layoff or recall complained of, the grievance shall be deemed to be waived.

A. Any grievance which has not been settled pursuant to Sections 2, 3, 4 and 5 of this Article and which involves the interpretation or application of this Agreement may be referred to arbitration. Unless the party seeking to have the grievance referred to arbitration has delivered to the other written notice to that effect within seven working days after the Labor Relations Committee has rendered its decision, such grievance shall be deemed to be waived. Unless the party giving such notice of referral to arbitration proceeds to arbitration of such grievance within a period of 14 working days from the date of giving such written notice, such party shall be deemed to have waived its position on such grievance.

B. The parties shall by mutual agreement select an arbitrator. If the Company and the Union fail to agree upon an arbitrator, one shall be selected from the Master Working List as hereinafter described. Each party will submit the names of five arbitrators who shall be registered with the Federal Mediation and Conciliation Service. The parties shall also request from the Federal Mediation and Conciliation Service an additional list of ten arbitrators from the Southern California area. The combined lists of 20 arbitrators will constitute the Master Working List of arbitrators. When the parties desire to select an arbitrator, seven names shall be drawn at random from the Master Working List of arbitrators. From the list of seven arbitrators, the parties shall alternately strike one name until only one name remains (the right to strike the first name having been determined by lot) and that person shall be the arbitrator.

If for any reason an arbitrator becomes permanently unavailable, the party who submitted the arbitrator's name will submit another name, or if the arbitrator was submitted by the Federal Mediation and Conciliation Service, the parties will request an alternate name from the Service.

During the month of October 2005, and each October thereafter, either party may request to repeat the above selection procedure. The new panel will be effective on November 1st of that year or upon receipt of the list from the Federal Mediation and Conciliation Service, whichever is later.

C. The parties shall execute a submission agreement. If the parties fail to agree upon a joint submission, each party shall submit a separate submission and the arbitrator shall determine the issue or issues to be heard, provided that said issue or issues are arbitrable in accordance with this Section. The joint or the separate submission shall state the issue or issues and the specific clause or clauses of this Agreement, which the arbitrator is to interpret or apply. Decision on the issue or issues to be heard shall be made by the arbitrator before either party may proceed with the merits of the case.

D. The arbitrator shall have the authority to interpret and apply the provisions of this Agreement, including the authority to determine under Article VIII, Section 1, subsection A, a basic rate of pay for a modified or newly established job. The arbitrator shall not have the authority to amend or modify this Agreement or to establish new terms and conditions of this Agreement.

There shall be no stoppage of work on account of any controversy that may be made the subject of arbitration, and the decision of the arbitrator shall be final and binding on the Company, the Union and the employee.

E. The arbitrator shall be paid by the parties hereto. The compensation and expenses of the arbitrator and the arbitration shall be divided equally provided, however, that each party shall bear the expense in respect to its own witnesses and that the cost of any report or transcript shall be divided equally only if furnished by mutual consent. Each party shall pay one-half of the aggrieved employee's time lost from work for appearance at the arbitration proceedings.

An employee who has acquired seniority under Section 2 hereof, transferred from a classification covered by this Agreement to a salaried classification within the Lockheed Martin Aeronautics Company, Palmdale, California, a Division of Lockheed Martin Corporation, prior to January 1, 2006, shall continue to accumulate seniority and, in case of placement in a classification covered by this Agreement, such seniority shall apply. An employee transferred from an occupation covered by this Agreement to a salaried occupation within the Company on or after January 1, 2006, shall not continue to accumulate seniority, but will retain the seniority previously accumulated while holding an occupation covered by this Agreement. In case of transfer to an occupation covered by this Agreement, such seniority shall apply and will continue to accumulate. An employee who does not continue to accumulate seniority under the preceding sentence, but who acquired seniority under Section 2 of Article IV of this Agreement prior to July 1, 1958, and who prior to such date transferred from a classification covered by this Agreement to a salaried classification within Lockheed Martin Corporation or a subsidiary corporation of the Lockheed Martin Corporation shall continue to accumulate seniority and, in case of placement in a classification covered by this Agreement, such seniority shall apply.

A salaried employee shall not be placed in a classification covered by this Agreement unless such employee possesses greater seniority than the employee such employee displaces, or the most-senior qualified employee on the recall list for such classification, or when filling an available opening, the most-senior qualified employee eligible for promotion where ability, skill and efficiency are substantially equal.

Subject to the above conditions, such a salaried employee with one but less than six years of accumulated seniority may be placed in the highest-rated classification previously held covered by this Agreement, and such an employee with a seniority date prior to October 2, 1977, with six or more years of accumulated seniority, may be placed in previously-held or lateral or lower-rated classifications subject to the requirements as to qualifications set forth in Section 3, subsection C, paragraph 2, subparagraph d under Article IV of this Agreement.

A salaried employee being returned to the bargaining unit may be considered for placement in a Lead opening, together with employees covered by the provisions of subsection A and subject to the standards set forth in subsection C of Section 8, Article IV of this Agreement, provided such employee has been assigned to the department for at least 30 days.

If such salaried employee has been laid off, such employee's right to placement in a classification covered by this Agreement shall be subject to the same provisions as are set forth in Section 7 of this Article.

C. Transfers From Hourly Classifications in Other Bargaining Units:

An employee hired within an hourly classification, which at the time of hire was represented by another bargaining agent for Company employees, who heretofore or hereafter transferred into a classification covered by this Agreement shall have seniority from the date of such transfer, except that seniority of such an employee shall be from the date of original hire or rehire in cases where the Agreement between the Company and such other bargaining agent contains, at the time of the effective date of this Agreement and at the time of such transfer, a like provision dating seniority from the date of original hire or rehire for employees covered by this Agreement who heretofore or hereafter transferred into a classification covered by the Agreement of such other bargaining agent.

An employee hired within an hourly classification not represented by a bargaining agent who heretofore or hereafter transferred into a classification covered by this Agreement shall have seniority from the date of original hire or rehire by the Company.

D. Accumulation of Seniority of Employees Transferred Out of the Bargaining Unit:

An employee transferred from a classification covered by this Agreement to an hourly classification represented by another bargaining agent for Company employees shall continue to accumulate seniority and, in case of placement in a classification covered by this Agreement, such seniority shall apply, provided the Agreement between the Company and such other bargaining agent contains, at the time of the effective date of this Agreement and at the time of such placement, a like provision dating seniority from the date of original hire or rehire for employees covered by this Agreement who transferred into a classification covered by the Agreement of such other bargaining agent.

An employee transferred from a classification covered by this Agreement to a nonrepresented hourly classification shall continue to accumulate seniority and, in case of placement in a classification covered by this Agreement, such seniority shall apply.

Such other bargaining unit employee or nonrepresented hourly employee covered by this subsection D shall not be placed in a classification covered by this Agreement, unless such employee possesses greater seniority than the employee being displaced or the most-senior qualified employee on the recall list for such classification where ability, skill and efficiency are substantially equal. Subject to the above conditions, such other bargaining unit employee or nonrepresented hourly employee, with less than six years of accumulated seniority, may be placed in the highest-rated classification previously held covered by this Agreement, and such an employee with a seniority date prior to October 2, 1977, with six or more years of accumulated seniority, may be placed in the highest-rated classification for which such employee is qualified, subject to the requirements as to qualifications set forth in Section 3, subsection C, paragraph 2, subparagraph d under Article IV of this Agreement.

E. Retransfers From Another Bargaining Unit:

An employee transferred from a classification covered by this Agreement to an hourly classification represented by another bargaining agent for Company employees, and thereafter transferred to a classification covered by this Agreement, shall have the seniority that such employee had accumulated on the date of transfer to such other unit except as provided in subsection D of this Section 1.

F. Classifications Which Become Represented by Another Bargaining Agent:

The matter of seniority for purposes of this Agreement for employees transferred from a classification which after the effective date of this Agreement becomes represented by another collective bargaining agent shall, at the time they become so represented, be negotiated between the Company and the Union and any seniority of such employees for purposes of this Agreement shall be subject to the agreement reached after such negotiation.

G. Part-Time Employees:

A part-time employee shall be entitled to credit for length of service in the same proportion that time regularly worked by such part-time employee bears to the time regularly worked by a full-time employee.

H. Code "H" Rehires:

An employee who voluntarily terminates or is laid off after having accumulated two or more years of seniority since 1950 at any plant or subsidiary of Lockheed Martin Corporation, and who after the effective date of this Agreement is hired by the Company, shall be designated a Code "H" rehire and receive the following benefits:

I. Code "D" Hires From Other Plants, Divisions or Subsidiaries:

An employee who is hired by the Company and begins work at the Company within a period of 30 calendar days, beginning with the next day following the day said employee was terminated from employment at a plant of a subsidiary corporation of Lockheed Martin Corporation or a plant of Lockheed Martin Corporation not covered by this Agreement, and is not entitled to seniority pursuant to the above paragraphs of Section 1, Article IV of this Agreement, or begins work at the Company during the period such employee is eligible for recall in the event such employee was laid off by such subsidiary corporation or by another division of Lockheed Martin Corporation and has maintained recall rights, shall acquire seniority on the same basis as a newly-hired employee, except that such employee's years of seniority for the purpose of determining the length of vacation with pay (and not for determining "vacation eligibility date") to which said employee shall be entitled under Article VI, Section 1, subsection B of this Agreement and for the purpose of determining such employee's eligibility for additional group life insurance as provided by the Lockheed Martin Group Insurance Plan, shall be determined on the basis of the seniority date such employee had at the time of termination or layoff at such subsidiary corporation or plant.

J. Transfer of Work to Noncovered Plant:

In the event work performed at the Company is transferred to a plant of the Lockheed Martin Aeronautics Company - Palmdale, operating within the State of California but outside the scope of this Agreement, the Company and the Union shall at that time negotiate with respect to which employees shall be permitted to transfer to such plant. Employees so permitted to transfer shall do so with all employee rights and benefits except where another collective bargaining agent has established collective bargaining rights at such plant. All such employee rights shall continue unless and except as restricted by a subsequent collective bargaining agreement negotiated with the collective bargaining agent representing such employees at the new plant.

A. Definition of Terms:

A "surplus employee" refers to an employee who because of a reduction in the number of employees in a particular unit will, by application of the provisions of this Article IV, either be moved to another unit or job classification or be laid off.

The word "layoff" refers to the termination of an employee from the active payroll of the Company as a result of a reduction of the total number of people within a classification in the Company.

The word "Lead" does not designate a classification but merely describes a person leading a classification and a Lead shall be deemed to be in the classification which describes the duties which the Lead performs other than the Lead duties.

"Downgrading" refers to a movement from one classification to a lower-rated classification such as Machinist - General to Machinist - Lathe.

A classification shall be considered to have been "previously held" only when it shows on Company records that the employee has been classified and worked in the classification for a minimum of 20 working days, which excludes nonoccupational prolonged illness exceeding five consecutive days, and such work was performed during the period since the employee's last established seniority date with the Company.

Employees placed in classifications not previously held on an "available opening" basis must be able to perform the distinguishing duties of such classifications without a training or learning period if such classifications have recall lists.

B. The General Layoff and Temporary Layoff Procedures shall be applied in accordance with the following principles and conditions:

Temporary layoffs may be made for periods of not exceeding 15 working days. Extensions of this time period may be made by mutual agreement between the Company and the Union in unusual circumstances. Such layoffs shall be made in order of Company-wide seniority applied by classification within the particular unit of organization, work unit or project affected where ability, skill and efficiency are substantially equal.

E. Emergency Reduction of the Working Force:

F. Top Seniority for Purposes of Layoff:

For the purpose of applying the Temporary and General Layoff Procedures, the following employees shall be deemed to have top seniority:

Senior Stewards with one or more years of seniority and Group Stewards with 18 or more months of seniority as defined and recognized, as provided in Article II, Section 1, subsection A.

During the period of a temporary layoff, the number of Group Stewards shall not be reduced below the number allowed under the provisions of Article II, Section 1 as applied to the number of employees remaining. A Senior Steward shall not be laid off on a temporary layoff provided such Senior Steward is able and willing to perform the work remaining within the department and shift in the labor grade in which such Steward's classification falls or in a lower labor grade. During a temporary layoff and during the period between the first and second steps in an Emergency Reduction of the Working Force, the terms of office of laid-off Union Stewards shall continue. If a department and/or shift is shut down for a period not to exceed 120 days, the Senior Steward in such department and/or shift shall upon its reopening have top seniority in his or her classification and shift for purposes of recall.

G. Top Seniority for Purposes of Shift Assignment:

Local Lodge Presidents, Local Lodge Vice Presidents, District Lodge 725 Delegates, Treasurers, Local Lodge Financial Secretaries, Recording Secretaries and members of the Labor Relations Committee shall be deemed to have top seniority for purposes of shift assignment in the application of the Temporary and General Layoff Procedures. Such top seniority shall be for the sole purpose of allowing them to remain on the same shift during their term of office.

A. Employees on layoff from the classification who have not lost seniority as the result of events described in Article IV, Section 7 of this Agreement.

B. Employees on the active payroll who in lieu of layoff within the preceding six years:

C. Employees who in lieu of layoff accepted placement in a lateral classification or downgrade from such classification and who were subsequently laid off.

D. Employees on recall who at the time of surplus had displacement rights in accordance with Section 3 of Article IV, but were unable to displace because of seniority, and who have filed with the Company a written request for recall to the classification at least seven calendar days prior to the date the employees' seniority date was first reached on that list.

E. Employees on layoff from a higher-rated classification who at the time of layoff had completed the probationary period, possessed less than one year of seniority and previously held the classification.

A. The day of absence from work is necessary to enable the employee to report to the Selective Service Board or Military Reserve station as ordered;

B. The absence falls within the employee's regular work shift period;

C. The absence is to be temporary, following which the employee will return to work;

D. The absence does not involve an overtime day.

A. Resignation (a five-day unreported absence on scheduled workdays without a reasonable explanation shall be considered a resignation);

B. Discharge for just cause;

C. If after a layoff the employee is notified to report for an interview for work by registered or certified mail, return receipt requested, addressed to the last address filed by such employee with the Company, and fails within one week after notification or such additional time as the Company may grant either to report for an interview or to deliver to the Company a reasonable excuse for failure to report;

D. Failure after an interview to report for work at the time designated by the Company or to furnish to the Company a reasonable excuse for failure to report;

E. Layoff for a period of 72 consecutive months.

A. On promotion to Lead, consideration shall be given to those employees reporting to the first full-time supervision where the opening exists, then within the department, then within the division, then within the Company.

To be eligible for promotion to Lead, an employee must have been reporting to the unit of supervision from which the selection is being made for a period of 30 days prior to such promotion, except in the case of a new department, supervisory position or shift. If such department, supervisory position or shift has been established less than 30 days, all employees within the department, shift and appropriate classification will be considered. Eligibility for promotion to lead will be based on qualifications. Where ability, skill and efficiency are substantially equal, preference shall be given to the most senior qualified employee within the applicable unit.

B. On promotion to higher-rated jobs within the bargaining unit, except Lead, an active Placement Request must be on file with the Company. Consideration shall first be given to those employees within the department where the opening exists and to those employees within the Company who have an active Placement Request for such promotion at least five working days prior to the date such promotion is made. However, such an employee within the Company, but not within the department in which the promotion is made, shall not be so considered unless such employee has at least 12 months more seniority than the employee in the department in which the promotion is made who would otherwise have received the promotion.

It is the responsibility of the employee to file the request indicating the information requested by the Company if such employee wishes to be considered for promotion or transfer outside his or her own department. The Company shall consider the employee's request upon the basis which the employee has indicated. The request referred to in this Section and Section 10 (Transfers) shall be made by the employee in a manner deemed appropriate by the Company. Such request shall remain active until the employee is placed in the classification or department requested, until withdrawn by the employee, or until the employee refuses to accept the requested promotion or lateral placement, but in no event for more than 12 months. If the employee has continued interest, they must file a new request.

(See Supplement "F", Letter 2005-11)

An employee who has not acquired seniority rights, pursuant to the provisions of Article IV, Section 2 of this Agreement, shall not be permitted to file Placement Requests for promotions. An employee shall not be permitted to have on file Placement Requests for more than five jobs at any one time; such maximum of five jobs applies to both promotional and lateral (see Article IV, Section 10) requests but does not apply to requests for shift reassignments within a department. Acceptance of a promotion shall automatically cancel any Placement Requests for that classification and any lower-rated classifications. An employee who has been promoted shall not be permitted to file a Placement Request for a further promotion during the first four months following his or her promotion. Refusal by an employee to accept a promotion for which such employee has filed a Placement Request under this Article IV, Section 8 shall automatically cancel such request.

C. In selecting an employee for such promotion to an available opening, the following standards shall apply:

D. An employee selected for promotion in accordance with the procedures and standards set forth in subsections B and C above, and having a higher claim for the available opening, will not be retained for a period in excess of five working days after an employee with a lower claim has been promoted to the same classification in the department where the opening exists.

(See Supplement "F", Letters 2005-11.)

D. A lateral transfer (transfer within a classification) may be made without reference to the priority above stated in this Section 9.

E. Downgrading into classifications that have a recall list may be made upon mutual agreement of the Company and the Union for the following groups of employees, provided such employees have greater seniority than any employee on the recall list for such lower classification:

F. Downgrading into classifications which do not have a recall list will be considered by the Company upon written request of the employee for legitimate reasons and may be made without reference to the priority above stated in this Section 9, subsection B. The Company will give notice of the downgrade action as it occurs or as soon thereafter as is reasonable.

(See Supplement "F", Letters 2005-11 and 2005-12.)