Hourly Employeequestions & Answers for a Work Stoppage

HOURLY EMPLOYEE QUESTIONS & ANSWERS FOR A WORK STOPPAGE  Reporting for Work  Disciplinary Action  Reporting Incidents/  Continuity of Operations Talking to Those on Strike  Time Recording  Represented Employees  Food Service  Represented Employee Benefits  Overtime/Work Assignments  Time Off Requests  Non-Lockheed Martin Personnel  More Information/Media

Q1. When could a strike occur? A1. The IAM contract expires at midnight, April 22, 2012. This does not necessarily mean a work stoppage (strike) will occur. We intend to remain continuously available for negotiations in the hope of reaching a settlement. A legal work stoppage could occur at any time after 12:01 a.m. April 23, 2012.

Q2. What about picket lines? A2. The company will take all reasonable steps to ensure safe entry to and exit from the plant. Although the use of orderly picket lines is a legal and protected activity, the Union does not have the right to prevent employees from entering or leaving the plant at will. While we do not expect the Union to condone illegal activity on the picket line, it is possible that employees who cross the lines will be harassed.

All employees, and particularly all management, should exercise extreme patience and forbearance when passing picket lines. Do not engage in conversations with the picketers; do nothing that would encourage picketers to start conversations. Do not get out of your car. While violence or other illegal picketing activity is not expected, the Company will seek immediate court relief, if necessary, against any such acts or threats of violence, or against disorderly picketing that unreasonably blocks entrance to and exit from the plant.

You should keep in mind that law enforcement officers must remain neutral with respect to strikes against a company. It is their responsibility, however, to maintain peace and to protect the rights of any citizen wishing to enter a place of work. You can help the police discharge this responsibility by calling the officer’s attention to any interference and asking for assistance. This will simplify the job of the police in discharging their responsibility and maintaining order. It is easier and quicker for them to clear a path than to settle a disturbance caused by employees trying to force their way through a line of pickets.

Reporting for Work

Q3. If an IAM member wants to come to work during the strike, will their badge get them into the employee gates? A3: IAM members wishing to return to work will initially need to report to the Security & Emergency Services Badge Office to reactivate their badge. The Badge Office is located at 200/1/B18. Reporting to the Badge Office will begin the process of all other actions associated with an employee’s return to work, such as reactivation of the NT ID and other LMPeople actions.

The Badge Office will initially be open for extended hours starting Monday, April 23. Hours will be from 6 a.m. to 5 p.m., Monday – Friday. Anyone needing to report outside the Badge Office operating hours will need to report to the Security Control Center in Bldg. 9, where a Security Supervisor will handle the activation.

Q4. Will employees not involved in the labor dispute be expected to report for work as usual, barring violence on the picket line? A4. Yes, unless otherwise directed.

Q5. What if I have trouble getting through the picket lines? A5. When approaching picket lines, do not force your way or take chances of injuring yourself or anyone else. If the line does not open, or if you feel picketing employees are getting too close to your car, seek help from a nearby security guard. Above all, please exercise extreme caution and patience. You are encouraged to remain in your vehicle and to refrain from riding a bicycle or motorcycle to work during this time.

When reporting for work, go immediately to your work area. Do not congregate or gather with others in the vicinity of property boundaries. Employees should immediately report any acts of threats or violence to management.

Q6. Will all entrances to the plant premises be open? A6. Employees will see the following changes to traffic patterns:

 Left-turn traffic from Clifford Street – For the duration of the work stoppage, left-turn traffic from Clifford Street into the Main Gate will not be allowed.

 Right-turn traffic onto Clifford Street – For the duration of the work stoppage, right-turn traffic onto Clifford Street exiting the Main Gate will not be allowed.

 Main Gate – You can enter and exit 24/7.

Additional Gates:

 Gate 2 (Railroad Gate) – Access is restricted to Contractors ONLY. Employees may not use this gate. For purposes of accessing this gate, a “contractor” is defined as a worker who performs work unrelated to the normal operations of LM and the work is of a kind that would not, if done when the plant were engaged in its regular operations, necessitate curtailing those operations. The gate will be open 6 a.m. – 6 p.m., Monday – Friday.

 Gate 2A – Access is restricted to employees (or permanently badged non- employees) with valid In-Plant Car Passes and Placards ONLY. Available for ingress/egress 6 a.m. – 6 p.m., Monday – Friday.

 Gate 2C – Access is restricted to Government ONLY. You may enter and exit between 6 a.m. – 9 a.m. and 3 p.m. – 6 p.m., Monday – Friday.  Access Off Bomber Road North West Side Via Entrance W-9 – From 6 a.m. – 8:30 a.m., normal business days, employees and permanently badged non- employees who normally park on the east side of the facility (Liberator, Falcon and Hercules Lots) will have the option to access the inner perimeter of the plant through the north side of our facility via Bomber Road and Gate 20 and follow a designated route through the plant, exit through Gates 8 and proceed to their east side parking space. From 3:30 p.m. – 5:45 p.m. Monday – Friday, employees and permanently badged non-employees who normally park on the east side of the facility will have the option to enter Gate 8 to access the inner perimeter of the plant, follow a designated route through the plant and exit through Gate 20.

LM Aero West:

 Academy Gate – Available for entry/exit 24/7.

 White Settlement Gate – Available for entry/exit 6 a.m. – 6 p.m., Monday – Friday.

Reporting Incidents/Talking to Those on Strike

Q7. How should employees report incidents related to picket lines and unusual strike activities? A7. Incidents preventing an employee from entering the plant premises should be reported immediately to security:

 Fort Worth: 817-777-2567

Incidents encountered while entering the plant premises should be immediately reported to the employee’s immediate supervisor/manager.

Q8. Will the company reimburse employees for damage to their cars, personal property or personal injury resulting from the strike activity? A8. In general, personal injury and property damage would be subject to coverage under the state/company workers compensation program and the employee’s own automobile insurance policy.

Taking precautions may be the best insurance against personal loss. It is important that upon entering the plant, you avoid trouble at the picket line. Do not engage in conversations with the picketers; do nothing that would encourage picketers to start conversations.

If there is a solid line of pickets at your gate, or if for any reason it appears you might have trouble passing through the lines, you should seek help from the nearest security guard. Advise the guard/officer that you are an employee and wish to enter the plant for purposes of work and ask the guard/officer to provide you safe passage through the picket line. If no guard is available, call security at 817-777-2567.

Represented Employees

Q9. Is it true that the union will fine its represented employees who cross the picket lines, and that this fine is collectible in court? A9. As long as employees remain members of the Union, they may be subject to the Union’s rules of membership. This would include Union rules and procedures for discipline and fines of members who cross the picket line during a strike. Any fines imposed may be enforceable in court. No discipline or fine may be imposed, however, for an employee who crosses the picket line after resigning his or her union membership (see below).

The Union cannot retaliate against those employees who cross the picket line. Also, the Union could not enforce its discipline by seeking to affect the employee’s employment with Lockheed Martin.

Q10. What about removal of strikers’ personal tools immediately before the strike and during the strike? A10. Prior to the strike, employees may remove their personal tools from the plant under normal tool clearance procedure during regular working hours. During the strike, striking employees should contact their management to make arrangements for an appropriate escort within regular working hours. Such visit should be coordinated with Security.

Q11. If the contract is terminated, what will the wages, hours and conditions of employment be for the union represented workers who choose to cross the picket line and work? A11. Until further notice, the terms of the current agreement will be continued for represented employees who continue to work.

Q12. If an employee resigns from the union, can he or she still vote on ratification of the contract? A12. This is a matter between the union and its membership. Normally, a member who resigns from the union would not be allowed to vote.

Represented Employee Benefits

Q13. If I elect not to strike, what would be my pay and benefits? A13. Your pay and benefits would remain the same.

Q14. What happens to my medical, dental and vision coverage if I participate in the strike? A14. All coverage ceases at 12:01 a.m. on the first day of the work stoppage if you participate. You may elect to continue those coverage’s at your expense pursuant to health care coverage continuation provisions of Federal Law (COBRA).

These rules permit you to continue your current coverage effective the first day that company-paid coverage ends. If you strike, a notice from CONEXIS, the administrator for continuation of medical, dental and vision coverage, will be mailed to you at your home address.

This notice will tell you exactly how to elect to continue coverage, how much the coverage will cost, and where and when to make premium payments.

DO NOT SEND OR BRING PAYMENT FOR YOUR MEDICAL, DENTAL AND VISION COVERAGES TO THE EMPLOYEE BENEFITS OFFICE. IT WILL NOT BE ACCEPTED. YOU MUST MAIL YOUR PAYMENT TO CONEXIS TO CONTINUE YOUR COVERAGE. Remember: To continue your coverage, you must make proper election and pay the entire monthly cost as instructed in your notice from CONEXIS.

Q15. Will the time an employee is on strike affect retirement benefits? A15. The time that an employee is on strike will generally not affect the individual’s vesting service date. However, the time the employee is absent due to a work stoppage may affect the employee’s “credited service” accrual.

Credited service is used to determine the retirement benefit amount and accrues while the employee is at work or on paid absence.

Q16. What will be the monthly cost to striking employees who want to continue their group health benefits? A16. 2012 COBRA Rates Enrollment COBRA Health Plan Type Monthly Rate Rate Medical Aetna Standard Plan PPO (Plan 099) Individual $ 768.82 $ 784.20 Family $ 2021.99 $ 2062.43 Aetna POS (Plan 144) Individual $ 869.10 $ 886.48 Family $ 2285.71 $ 2331.42 Aetna Standard Plan HMO (Plan 274) Individual $ 754.84 $ 769.94 Family $ 1985.23 $ 2024.93 CIGNA Healthcare of TX HMO (Plan 240) Individual $718.10 $732.46 Family $1888.61 $ 1926.38 HealthNet, Southern California, HMO (Plan 320) Individual $ 717.01 $ 731.35 Family $ 1864.23 $ 1901.51 Kaiser, Southern California HMO (Plan 258) Individual $ 443.11 $ 451.97 Family $ 1152.08 $ 1175.12 United Healthcare, Texas HMO (Plan 310) Individual $ 951.75 $ 970.79 Family $ 2474.52 $ 2524.01 Dental Comprehensive Dental (Plan 404) Individual $ 25.36 $ 25.87 Family $ 66.70 $ 68.03 Comprehensive Plus Dental (Plan 407) Individual $ 41.18 $ 42.00 Family $ 108.30 $ 110.47 Dental HMO DeltaCare TX (Plan 412) Individual $ 17.89 $ 18.25 Family $ 46.56 $ 47.49 Dental DeltaCare CA/GA (Plan 413) Individual $ 38.17 $ 38.93 Family $ 99.23 $ 101.21 Vision Vision 12 Plan (Plan 429) Individual $ 5.91 $ 6.03 Family $15.55 $15.86 Vision 24 Plan (Plan 433) Individual $ 2.04 $ 2.08 Family $ 5.37 $ 5.48 Q17. What happens to my life insurance coverage’s if I participate in the strike? A17. The Special Accident coverage of you and your dependents, and your Accidental Death and Dismemberment coverage cease on the day you strike. Coverage under Basic, Group Universal and Dependent Optional Term Life Insurance ends 31 days after you go on strike. However, you can continue these coverage’s by paying the entire cost of the premiums each month.

Q18. If I am on strike and have questions or problems regarding my family's health and/or life insurance coverage’s, who should I call? A18. You should call the Lockheed Martin Employee Service Center at 866-562-2363.

Q19. Will an employee on strike be paid weekly disability benefits? A19. Not unless the approved disability was in effect before the strike and continues uninterrupted during the strike. If disability occurs after the strike date and you are on strike, the disability is not covered.

Q20. If I am on strike, how will my Hourly Employee Saving Plan Plus be affected? A20. All contributions will be stopped after payment of your last regular paycheck for those who elect to strike.

Employees who have outstanding loans under the savings plan should be aware of the applicable provisions of the plan with respect to taxable events that could occur relating to a loan default. You should review your Summary Plan Description for additional information regarding the impact of not making loan repayments, and for information on loan defaults. You can also call the Savings Plan Information Line at 800-444-4015.

Q21. If I am a striker, can I elect to retire? A21. If you are eligible according to the provisions of the retirement plan, you can retire.

Q22. How will I receive my paycheck for the last week worked before the strike? A22. If you elect not to strike, your check will be handled as usual. If you are not at work on payday, your paycheck will be mailed to your address of record or directly deposited per the normal schedule.

Q23. If I am out on a leave of absence at the point the strike begins, will medical, dental, life, and vision coverage continue? A23. Yes. If you are on an authorized leave of absence, you will continue to be covered. The leave of absence must have been authorized before the strike began.

Time Off Requests

Q24. Will striking employees be allowed to use vacation during the strike? A24. No.

Q25. What about scheduling vacations during the strike period for non-striking employees? A25. Operational requirements may not permit granting of vacations in the event of a work stoppage, and it may be necessary to cancel previously approved vacations. Vacation requests will be handled on a case-by-case basis. Q26. What is the procedure regarding employees in the bargaining unit who request leave of absence during the strike? A26. No leave of absence requests will be approved from striking employees. If the need for a leave still exists after the strike, company policy will apply in the normal manner.

Leaves will be processed in the normal manner for employees working with adherence to control factors and requirements for proof of need.

Q27. What is the procedure regarding employees outside the bargaining unit who request a leave of absence during the strike? A27. Leaves will be processed in the normal manner for employees working with adherence to control factors and requirements for proof of need.

Disciplinary Action

Q28. What action will be taken against salaried employees who refuse to cross the picket lines? A28. We will remain open for business as usual and expect salaried employees to report for work as scheduled. Again, there is no valid reason other than illegal picketing activity that prevents an employee from entering the premises. These situations will be evaluated on a case-by-case basis.

Q29. If salaried employees refuse assigned work, can they be disciplined? A29. Yes. These situations will be evaluated on a case-by-case basis.

Continuity of Operations

Q30. How will a strike affect the company’s operations and work schedules? A30. Affected departments have developed contingency plans. Most plans provide for alternative means of carrying on the mission of impacted operations. It cannot be determined in advance exactly how a strike will affect all operations, but the Company plans to maintain full operations in the event of a strike. Consolidation of shift starting/ending times for employees may be necessary at certain departments. Employees should report for normally scheduled shifts until otherwise notified. Notification of any changes will be made through Company communication channels.

Q31. What action will be taken with employees not involved in the labor dispute if there is no work for them to do? Will we encourage them to take vacations or will they be laid off? A31. We will continue to be open for business and need employees to continue their work. In some cases, where striking employee absences require, some employees will be reassigned to duties outside the scope of their usual job. There are no plans to lay off any employees as a result of the labor dispute.

Q32. Can management or other salaried employees perform bargaining unit jobs during a strike? A32. Yes.

Q33. Will we be hiring to replace striking employees? A33. There is no plan to immediately hire replacement workers. Time Recording

Q34. What action will be taken for employees who are on leave of absence at the time the labor dispute begins, but whose leave expires during the strike? What if they do not report back to work? What if they request an extension? A34. Employees will be expected to comply with normal procedures regarding return from leave. Contact should be made with their local labor relations point of contact:

 Michael Whalen, Labor Relations, at 817-777-0469

If an employee in the bargaining unit does not return to work at the end of a leave, it will be assumed that he/she is on strike. Requests for extension to leaves of absence in effect prior to the strike will be handled on a case-by-case basis with adherence to control factors and requirements for proof of need.

Q35. How will time be recorded during a strike? A35. As usual for non-striking employees. A special strike code will be issued for striking bargaining unit employees.

Food Service

Q36. What about food service during the strike? A36. The cafeterias and vending machines will be in operation.

Overtime/Work Assignments

Q37. What about overtime work? A37. Normal overtime procedures will apply. Reasonable care should be exercised in the assignment of employees to overtime work, remembering that excessive overtime schedules could contribute to a variety of personal and management problems.

If salaried exempt personnel perform bargaining unit work in combination with their own work during a strike period, they will be paid at straight time. The 5-hour gate will be waived for salaried exempt personnel who are performing non-traditional duties.

Q38. Can an employee be forced to work overtime during the strike? A38. Yes, overtime assignments are obligatory at all times. However, mandatory overtime should only be used as a last resort when no volunteers are available and all other reasonable options are exhausted.

Non-Lockheed Martin Personnel

Q39. What effect will a strike have on non-Lockheed Martin personnel, such as subcontractors, who do business at the plant? A39. Again, our goal is to remain open for business. Nevertheless, some of our suppliers may elect not to cross picket lines. The company contingency plan has already addressed most of these situations. Q40. Will hourly employees be eligible for military, witness/jury duty or bereavement pay if they were on one of these authorized absences the work day preceding the strike date? A40. Yes, providing the employee has worked all regular work dates prior to the required report or start date of the applicable absence and provides substantiation of the absence. Applicable payroll ground rules will apply. As indicated previously, employees who fail to return to work from such an authorized absence will be presumed on strike.

More Information/Media

Q41. What about providing information to newspapers, radio stations or other outsiders pertaining to the strike? A41. During a time like this, there are great advantages in having a single spokesperson to distribute accurate and consistent information to all news media. We ask that you do not allow yourself to be questioned or drawn into conversation by newspaper, magazine, radio, or television reporters or camera crews. If you are contacted or approached by a reporter or photographer, be courteous, but refer the individual to Communications:

 Fort Worth: Joe Stout on 817-763-4086

Q42. How will management be notified of pertinent information during the strike? A42. Special communications will be released as developments warrant and posted on the Company website, www.lockheedmartin.com/negotiations. The following information hot lines will also have pre-recorded information: 800-987-3397.

Q43. If I have additional questions, whom can I call in labor relations? Q43. Please contact your local Labor Relations lead: Michael Whalen, Labor Relations, at 817-777-0469.

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