DISPUTE RESOLUTION HANDBOOK
GENERAL DYNAMICS Land Systems
February 2010 GENERAL DYNAMICS Land Systems P.O. Box 2074, Warren, MI 48090-2074
TO: Management and Management Support Employees
SUBJECT: Dispute Resolution Process
General Dynamics Land Systems, Inc. has always encouraged the resolution of employee disputes and legal claims through traditional management communication channels with assistance from Human Resources, the Ombudsman, or the Business Ethics Office. Employees have had the option to redress major employment and termination issues through the Management Review process and an appeal to a neutral arbitrator for claims based on legally protected rights. As you are aware, since March 1, 1996, GDLS has had in place a specific written process for the resolution of disputes. Effective January 1, 2001, GDLS instituted an expanded and improved process for the resolution of disputes, which include the arbitration of certain legal claims of the Company, and provision of 30 days’ notice of any changes in the process.
This booklet detailing the Dispute Resolution Process should be read carefully. It is an essential element of your employment relationship and compliance with it is a condition of your employment. This booklet explains how employment related disputes will be resolved through a four step process: Step 1-Functional Review; Step 2-Human Resources Review; Step 3-Management Appeals Committee; and Step 4-Arbitration. The Functional Review includes the option for resolution up to and including review by the employee’s functional Vice President. It is expected that most issues will be resolved at this level.
If employees are not satisfied with decisions of the Functional Review and the Human Resources Review, they have the option to request a review by a Management Appeals Committee. This review will be conducted by one (1) randomly selected Vice President and two (2) randomly selected senior managers who are outside the appealing employee's functional organization. The Management Appeals Committee decision will be final except for claims that are based on legally protected rights such as race, age or sex discrimination. Employee and Company claims that are based on certain legally protected rights are eligible for review and resolution through Arbitration following the decision of the Management Appeals Committee. As a prerequisite to arbitration, the appealing employee will be required to pursue resolution through the first three steps of the process first. Arbitration represents the final step for employees and the Company to resolve claims that are based on certain legally protected rights. Arbitration will be conducted by arbitrators from the American Arbitration Association, who will be jointly selected by the employee and the Company to render a final and binding decision. The arbitration process offers several advantages to both the employee and the Company: Speed. Court proceedings are cumbersome, lengthy and frequently leave neither party with an acceptable result. The arbitration process normally will take only a few months and permits the arbitrator to resolve disputes quickly and fairly.
Reduced Cost. Both the employee and the Company will benefit by avoiding the significant cost of court proceedings. Although both the employee and the Company are free to use lawyers, they are not required to do so.
Experienced Decision-Makers. Unlike the court system, arbitrators specialize in resolving employment disputes. For more than 30 years, the United States Supreme Court has encouraged employers and employees to take advantage of the expertise of arbitrators. More and more, employees and companies are utilizing arbitration as the preferred process to resolve disputes based on legally protected rights.
It is important that you understand that this revised Dispute Resolution Process does not waive the substantive legal rights of any employee. It merely changes the forum in which disputes relative to those rights will be resolved. Section Title
Introduction
1.0 FUNCTIONAL REVIEW
2.0 HUMAN RESOURCES REVIEW
3.0 MANAGEMENT APPEALS COMMITTEE
4.0 ARBITRATION
4.1 Eligible Claims
4.2 Claim Initiation/Time Limits
4.3 Arbitrator Selection
4.4 Costs/Fees
4.5 Representation
4.6 Responsibilities of Arbitrator
4.7 Pre-Hearing Discovery
4.8 Award, Available Relief and Judicial Review
4.9 Exclusivity of Arbitration Process
4.10 Modification or Termination
5.0 ARBITRATION REQUEST FORM
6.0 QUESTIONS AND ANSWERS Introduction
This Dispute Resolution Handbook contains the procedure for the resolution of employee disputes effective July 2003 and is applicable to all applicants for employment, and all current employees who are not represented by a labor union of General Dynamics Land Systems Inc. or any of its Subsidiaries or other affiliates (collectively, the “Company”) and any former employees of the Company who were not represented by a labor union and who were employed at any time that this Dispute Resolution Handbook or any prior version was in effect (all such applicants, current and former employees are collectively referred to as “employees”). This Dispute Resolution Handbook does not apply to employees of the Company who are not covered by U.S. law. Please read it carefully. It describes a condition of your employment.
This process applies to those employees who believe they have been treated unfairly or in an unlawful manner. Depending on the nature of the dispute, the Dispute Resolution Process consists of up to four steps with the final step being binding on both the employee and the Company. The steps are sequential and no step can be skipped except employees who have been terminated (including layoff) may seek redress beginning at Step 3 of the process, and the Company may seek redress regarding certain legally protected rights beginning at Step 4 of the process.
STEP I-Functional Review General Dynamics Land Systems believes most issues can be resolved between an employee and his/her supervisor through good communication and understanding without the need for any other review. It is expected that this practice will continue to be the preferred way for the majority of issues to be resolved.
STEP 2-Human Resources Review The Human Resources Review will allow for an employee to seek redress of disputes unresolved at the functional level. A Human Resources Representative will review all the facts associated with the dispute. The Representative will then attempt to resolve the issue by direct involvement with the employee and the employee's functional management.
STEP 3-Management Appeals Committee If issues remain unresolved after the Human Resources Review, employees may then request a review by a three (3)- member Management Appeals Committee. This is a more formal review process and will provide a review by management outside of the affected employee's functional area. The decision of this review process is final for all employment disputes, except if the dispute is based on certain legally protected rights.
STEP 4-Arbitration If the decision of the Management Appeals Committee is not acceptable to the employee and the issue is based on certain legally protected rights,
5 the employee may initiate the Arbitration Process. If the Company raises an issue with an employees that is based on certain legally protected rights, the Company may initiate the Arbitration Process. Arbitration is a process in which a dispute is presented to a neutral (external third party) arbitrator for a final and binding decision. Arbitration is the exclusive external remedy for employees and the Company to resolve their disputes based on certain legally protected rights. The arbitrator has the power to award the same remedies (e.g., money damages, reinstatement, punitive damages) as could otherwise be obtained in court. The primary difference is that an arbitration professional decides cases under a more streamlined and less formal set of rules and procedures thereby resolving disputes in a much more timely and cost effective manner.
For claims involving trade secrets, trademarks, business know-how or other intellectual property, including but not limited to the alleged breach of an employee’s non-competition, non-solicitation, fiduciary or confidentiality obligations, either the employee or the Company may, without inconsistency with this Dispute Resolution Process, apply to any court of competent jurisdiction and seek interim, provisional, injunctive or other equitable relief until the claim is resolved.
Reprisals of any sort will not be permitted against any employee who uses any of the steps of the Dispute Resolution Process.
It should be noted that this procedure does not replace the Business Ethics Program and Procedures within General Dynamics. Therefore, please be aware of your continuing responsibility to report violations of the Standards of Business Ethics and Conduct to your immediate supervisor, the Ombudsman, or the Business Ethics Director.
Any questions about this policy should be directed to the Director of Personnel Relations.
6 DISPUTE RESOLUTION PROCESS for Management and Management Support Employees
1.0 FUNCTIONAL REVIEW
1.1 Eligible Claims
The Functional Review applies to any controversy, dispute, or claim that employees or former employees may have regarding their employment relationship with the Company.
1.2 Claim Initiation/Time Limits
Any employee may initiate a claim with their immediate supervisor within 60 days of the event that caused the dispute. In the event that the claim is based upon a legally protected right, and only in that event, the 60 day period is extended to the time period (i.e., statute of limitations) provided by the applicable law. THESE TIME LIMITS MUST BE ADHERED TO AND WILL BE STRICTLY ENFORCED.
1.3 Reviewer
The immediate Supervisor should be the first reviewer of any dispute. If it is perceived that the Supervisor is the problem, the employee may request the next level of management of his/her functional organization to review the case. NOTE: The reviewer also has the option to request assistance from the Ombudsman or the Business Ethics Director to assure that the dispute is forwarded to the appropriate management representative for resolution.
The employee has the right to request a review through the management hierarchy up to and including the functional Vice President.
1.4 Reviewer Responsibility
Resolving employee disputes is a priority of management. Supervisors have the obligation to sincerely attempt to resolve all employee disputes that are brought forward. If supervisors require any assistance regarding policy or procedures of the Company, they should contact the cognizant Human Resources Department. If a decision is not satisfactory to the employee, supervisors will provide assistance to the employee to schedule a review by the next level of management.
7 SECTION 2.0 HUMAN RESOURCES REVIEW
2.1 Eligible Claims
Any dispute or claim an employee may have which was not resolved as a result of the Functional Review.
2.2 Claim Initiation/Time Limits
A letter requesting review must be submitted to the Human Resources Director of Personnel Relations, or the local Human Resources Manager at Plant and Off-site locations, within 14 days of the date of receipt of the request. THESE TIME LIMITS MUST BE ADHERED TO AND WILL BE STRICTLY ENFORCED.
2.3 Reviewer
The Human Resources Representative will review the facts and attempt to resolve the issue by direct involvement with the employee and the employee's functional management.
SECTION 3.0 MANAGEMENT APPEALS COMMITTEE
3.1 Eligible Claims
If the Human Resources Review is not satisfactory to the employee, a request for review by a Management Appeals Committee (“Committee”) is available for any employment dispute.
3.2 Claim Initiation/Time Limits
Requests must be written and submitted to the Human Resources Director of Personnel Relations within 14 days after the date of the decision of the Human Resources Review. A claim disputing a termination (including a layoff) is initiated at this step and must be filed within one year after the termination. In the event that the claim is based upon a legally protected right, and only in that event, an employee may request a review by a Management Appeals Committee at any time within the time period (i.e., statute of limitations) provided by the applicable law, or within one year, whichever time period is greater. THESE TIME LIMITS MUST BE ADHERED TO AND WILL BE STRICTLY ENFORCED.
8 3.3 Reviewer
One (1) Vice President and two (2) senior managers from outside of the employee's organization will be randomly selected by the company as members of the Committee. At locations other than the Sterling Heights Complex and the Lima Army Tank Plant, three (3) Supervisory management personnel, outside the employee’s department will be randomly selected by the Company as members to review the case.
3.4 Reviewer Responsibility
The Committee will review the employee's request within 30 days of the receipt of the request. If consultation is required regarding company policy or legal issues, the members will consult with the Human Resources Director of Personnel Relations or the General Counsel's Office. A meeting may be scheduled with the employee. A written decision will be provided to the employee within 45 days after receipt of the employee's request for a Management Review or as soon thereafter as practicable.
3.5 Resolution
The Committee is empowered to overturn or modify a discipline, layoff or termination action, and may award back pay where appropriate. It is also empowered to rule that a Company policy or procedure has been violated. The Committee is not empowered to discipline an employee, modify any benefit plans, establish or modify any Company policies or procedures, or award compensatory or punitive damages. Although Committee decisions are not precedent-setting, they are final. However, an employee may request arbitration of claims based on certain legally protected rights.
9 SECTION 4.0 ARBITRATION OF CLAIMS ALLEGING A VIOLATION OF CERTAIN LEGALLY PROTECTED RIGHTS
4.1 Eligible Claims
4.1.1 The Arbitration Process applies to, and is intended to completely and finally resolve, any controversy, dispute or claim, including the arbitrability of any controversy, dispute or claim, between an employee not represented by a labor union and the Company which arises out of or relates to the employment relationship and which is based on a legally protected right. The Arbitration Process shall not apply, however, to any employee’s claim for workers’ compensation benefits, unemployment compensation benefits or matters which directly involve the interpretation or denial of an Employee Retirement Income Security Act (ERISA) benefit. Moreover, it does not prohibit an employee from filing a charge with the Equal Employment Opportunity Commission, the National Labor Relations Board, or similar federal, state or local agency. However, upon receipt of a right-to-sue letter or similar administrative determination, employee is required to use the procedures of this Dispute Resolution Policy.
4.1.2 For the purposes of the Arbitration Process, the terms the “Company” and “GDLS” shall include General Dynamics Land Systems Inc., all of its Subsidiaries, its parent and affiliates and all of their respective supervisors, officers, directors, shareholders and agents and other current or former employees.
4.1.3 The Arbitration Process extends to all employment related legal claims or theories, except for those excluded in 4.1.1 above, between an employee and the Company including but not limited to discrimination, retaliation, violation of public policy, tort claims, contract claims, and specifically any claims that could be made under any State or Federal Civil Rights Laws, including Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans With Disabilities Act, the Rehabilitation Act, 42 U.S.C. Section 1981, the Family and Medical Leave Act, the Worker Adjustment or Retraining Notification Act, the Fair Labor Standards Act, or any other employment related statute or legal theory.
4.1.4 As a condition precedent to utilizing this Arbitration Process, the employee must have filed a claim with the Management Appeals Committee and received a decision from the Management Appeals Committee, except that the Company may elect to bypass one or more levels prior to arbitration for disputes with applicants for employment, former employees or if the Company is the initiating party.
10 4.1.5 The Arbitration Process also includes any claim of constructive discharge, which for the purposes of this process, is defined as a claim by an employee that he/she was involuntarily forced to resign or quit because his/her working conditions had been deliberately made so intolerable by the Company, that a reasonable person would have felt compelled to resign or quit.
4.1.6 Any legal claim or theory that the termination of an employee breached an express or implied contract of employment also comes within the scope of the Arbitration Process. However, because any such claim is inconsistent with and precluded by the Company's at will employment policy, such claim shall be subject to dismissal or summary disposition (if raised in court) or prehearing disposition (if raised in the request for arbitration).
4.1.7 For claims involving fraud, breach of fiduciary duty, breach of noncompete or confidentiality obligations or trade secret, trademark, copyright or patent issues, either the employee or the Company may, without inconsistency with this Arbitration Process, apply to any court of competent jurisdiction and seek interim, provisional, injunctive or other equitable relief until the arbitration is award is rendered or the claim is otherwise resolved.
4.1.8 The employee and the Company agree and hereby waive any right to jury trial for any claim otherwise covered by the Arbitration Process. The employee further agrees that no claim covered by the Arbitration Process may be brought as a class action and that he/she will not act as a class representative or participate as a member of a class of claimants with respect to any such claim.
4.1.9 No employee will suffer any reprisal for utilizing this Arbitration Process.
4.2 Claim Initiation/Time Limits
4.2.1 An employee who believes that a Company action or inaction was discriminatory, retaliatory, tortious, violative of public policy, of any Federal or State Civil Rights Laws, or unlawful in any similar way may, following an adverse decision by the Management Appeals Committee, request arbitration by completing an Arbitration Request form and mailing or faxing it to the GDLS Vice President of Human Resources, at Post Office Box 2074, Warren, Michigan 48090-2074, or Fax No. 586-825-7300.
4.2.2 A copy of the Arbitration Request form may be obtained from the employee's Human Resources Department. If the employee is unable to obtain a copy of the Arbitration Request form, he/she may file a written request for an arbitration in which he/she should specify: (a) the factual basis on which the claim is made; (b) the statutory provision or the legal theory under which the claim is made; (c) the nature and extent of any relief or remedy sought; and (d) the date of the Management Appeals Committee decision which the employee wishes to appeal to arbitration.
11 4.2.3 Any request for arbitration by an employee as provided by the Arbitration Process must be made in writing and received by the GDLS Vice President of Human Resources within 30 days of the date of the Management Appeals Committee decision which the employee wishes to appeal to arbitration. THIS TIME LIMIT MUST BE ADHERED TO AND WILL BE STRICTLY ENFORCED. An employee’s failure to act within the required time will constitute a failure to exhaust the Arbitration Process and will be deemed an acceptance of the Company's decision or action with respect to any claim within the scope of the Arbitration Process and will preclude any other legal action challenging the Company's action.
4.2.4 Any request for arbitration by the Company as provided by the Arbitration Process must be made in writing by a Vice President and received by the GDLS Vice President of Human Resources within the time in which it could have filed a lawsuit in court. If the Company requests arbitration as provided by the Arbitration Process, the Company will pay the total amount of the American Arbitration Association’s filing fee.
4.3 Arbitrator Selection
4.3.1 Within ten (10) days of the receipt of a request for arbitration, the Company shall forward such request to the Office of the AAA located nearest to the employee's most recent place of employment and request that the AAA provide a panel of five (5) arbitrators each of whom has been a member of the National Academy of Arbitrators for no less than five years, is an attorney, is a resident within 500 miles of the employee's most recent place of employment, and has experience in employee disputes alleging discrimination. A request for arbitration involving an employee whose most recent place of employment is outside the United States will be forwarded to the AAA's Southfield, Michigan Office and the arbitrator list will contain names of arbitrators residing within 500 miles of Southfield, Michigan. The arbitration will be conducted within 30 miles of the employee’s most recent place of employment except that the arbitration will be held within 30 miles of Detroit, Michigan for employees whose most recent place of employment was not in the United States.
4.3.2 The AAA will provide each of the parties with a list of five (5) arbitrators together with the subject arbitrators' resumes and fee schedules. Each party may, within ten (10) days of the AAA's transmittal date, reject any and all of the arbitrators on the list by so advising the AAA. Failure to advise the AAA in writing of unacceptable arbitrators is considered acceptance of any of the arbitrators on the list. The AAA will assign an arbitrator from those acceptable to both parties. If there are no mutually acceptable arbitrators on the first list, the AAA will provide the parties a second list of five (5) arbitrators from which each party may advise the AAA in writing of unacceptable arbitrators within ten (10) days of the AAA's transmittal date. If there is no mutually acceptable arbitrator on that
12 list, the AAA will provide a third list from which the parties will alternately strike names until only one arbitrator is left. The first strike will be determined by a flip of the coin.
4.4 Costs/Fees
If an employee initiates the Arbitration process, the employee shall pay one half of the arbitration filing fee charged by the AAA, but the employee’s share of such fee shall not exceed $125. The Company shall pay the remainder of the arbitration filing fee. If the Company initiates the Arbitration process, the arbitration filing fee shall be borne by the Company. In either event, however, The Company will be solely responsible to pay for the compensation and expenses of the arbitrator. Each party shall pay for its, his or her own costs and attorney's fees if any. However, if any party prevails on a statutory or common law claim which entitles the prevailing party to collect reasonable attorney's fees and costs incurred, the Arbitrator may award reasonable fees and costs to the prevailing party in accordance with such statute or common law.
4.5 Representation
The employee and the Company shall be entitled (but not required) to be represented by counsel of their choosing at their own expense, except that counsel fees may be awarded to the employee after an arbitration award in his/her favor if authorized by the statutory or common law provision under which the claim is made. Either party shall have the right to a verbatim transcript, at its cost, of the arbitration hearing and the right to submit a post-hearing brief.
4.6 Responsibilities of Arbitrator
4.6.1 The Arbitrator shall act as the impartial judge of any claims that come within the scope of this Arbitration Process. To the extent it is not inconsistent with this Arbitration process/procedure, the Arbitrator shall have powers and authorities as provided for by the Employment Disputes Resolution Rules of the AAA and statutes or laws under which a claim is made. For example, if a statutory provision or a common law under which a claim is made allows for a particular remedy, such as back pay, front pay, other forms of damages, interest, costs, reasonable attorney's fees, reinstatement or other injunctive relief, the Arbitrator shall have the power and authority to include that remedy in the award. In addition, the Arbitrator shall apply the elements of proof, burden of proof formulation, mitigation duty, interim earnings offsets, and other legal rules or requirements under the statutory provision or common law under which such claim is made. The Arbitrator shall also have the power to issue subpoenas. A copy of the Employment Dispute Resolution Rules of the AAA, which rules shall apply to any arbitrations under this policy unless this policy has a specific provision in conflict with such rules, is available from the Human Resources department.
13 4.6.2 The Arbitrator is authorized, following his or her appointment and prior to a hearing, to render a special opinion and award summarily disposing of a claim or claims. The Arbitrator shall do so only if, after considering a request for summary disposition and any response submitted thereto, the Arbitrator determines that there are no material factual issues in dispute requiring a hearing and that the Company or employee is clearly entitled to an award in its, his, or her favor. For example, if an employee makes a claim that his/her termination breached an express or implied contract of employment, that claim will be subject to summary pre-hearing disposition because it is inconsistent with and precluded by the Company's at will employment policy.
4.6.3 The Arbitrator shall not have the power or authority to change the Company's lawful personnel policies or to substitute his or her own business judgment for the lawful business judgment of the Company.
4.6.4 The Arbitrator shall not have the authority or jurisdiction to hear or conduct any part of the proceedings as a class action, or to determine the rights or grant any relief to any person or entity that is not a party to the pending arbitration or prior steps of the Dispute Resolution Process unless all parties agree in writing.
4.7 Pre-Hearing Discovery
4.7.1 The employee and the Company will attempt to agree to pre-hearing discovery that will provide fair access to relevant information. Relevant information shall include the employee's personnel file, written policies and other files or documents which are directly relevant to the employee's claim, as well as any files or documents maintained or controlled by the employee which are directly relevant to the employee’s claims. The Arbitrator shall resolve all disputes regarding pre-hearing discovery to the extent the parties are unable to agree.
4.7.2 No later than 14 days before the arbitration hearing, the parties shall exchange the names of all witnesses and copies of all exhibits to be used in the hearing.
4.8 Award, Available Relief and Judicial Review
4.8.1 Within 30 days following the conclusion of the hearing and submission of the case, or as soon thereafter as practical, the Arbitrator shall issue a written opinion and award, signed by the Arbitrator which shall include findings of fact and conclusions of law. If the Arbitrator finds in the employee's favor on an employee claim or in the Company’s favor on a Company claim, the Arbitrator shall fashion a remedy that is consistent with his or her authority under the statutory provision (including any limitations on recovery) or common law under which the claim is made. In
14 this regard, the Arbitrator shall have the discretion to render an award of front pay damages in lieu of reinstatement in the event an Arbitrator determines that such alternative relief is appropriate and objectively warranted under all the circumstances. However, an award of front-pay damages in excess of one year shall not be rendered by the Arbitrator without first scheduling a supplemental hearing before the Arbitrator with respect to front pay damages and mitigation issues and permitting limited additional pre-hearing discovery.
4.8.2 If any monetary award is made, the Arbitrator shall specify the elements and factual basis for calculating the amount. In no event shall the Arbitrator award monetary relief greater than that sought by the prevailing party.
4.8.3 The Arbitrator's award shall be final and binding upon the employee and the Company, subject only to the limited judicial review described below.
4.8.4 The Arbitration Process and judicial review shall be governed by the Federal Arbitration Act, 9 U.S.C. Section 1 et. seq. or, if required to be applied, the Arbitration Act of the state in which the employee most recently worked, or Michigan for those whose last location of employment was outside the United States. An Arbitrator's award rendered pursuant to this Arbitration Process shall be enforceable, and a judgment may be entered thereon in a Federal District Court or State Court of competent jurisdiction. The decision of the Arbitrator shall be final and binding, provided however, that limited judicial review may be obtained in a court of competent jurisdiction (a) in accordance with the standards of review of arbitration awards established by law; or (b) on the ground that the Arbitrator committed an error of law.
4.9 Exclusivity of Arbitration Process / Severablity, Conflict with Law
4.9.1 This Arbitration Process is intended to be the sole and exclusive forum and remedy for all claims that are within its scope, as the inexpensive and expeditious character of arbitration makes it preferable to litigation in a judicial or administrative forum. Exhaustion of this Arbitration Process is mandatory.
4.9.2 In the event that any portion of this Arbitration Process is held to be in conflict with a mandatory provision of applicable law, the remainder of these provisions shall not be affected to the extent permitted by law.
4.9.3 In the event a court were to determine that this Arbitration Process is not the sole and exclusive forum and remedy, or that an arbitration award rendered under this Arbitration Process is not final and binding between the parties, it is nevertheless intended that exhaustion of the Arbitration Process be a condition precedent to the institution of any judicial or administrative litigation by a claimant with respect to claims that come within the scope of the Arbitration Process.
15 4.10 Modification or Termination
This Arbitration Process may be modified, in whole or in part, or terminated by the Company only after the Company provides at least 30 days written notice of such modification or termination to employees and only with respect to requests for arbitration received after the effective date of such modification or termination. The procedure in effect at the time a request for arbitration is received by the Company will govern the arbitration of the claim.
5.0 ARBITRATION REQUEST FORM
GENERAL DYNAMICS Land Systems
ARBITRATION REQUEST FORM Must be filed within 30 days of Management Appeals Committee Decision
Date of Management Appeals Committee Decision: ______
Employee Name: Social Security No.: ______GDLS Work Location: ______Home Address: Home Address: ______City / State: City / State: ______Zip Code: Zip Code: ______Home Phone:( ) Work Phone:( ) ______
Attorney Representation: ( ) No ( ) Yes Attorney Name:______Office Location:______Address City / State Zip Code Phone: ( ) ______
16 Nature of Claim
Discrimination Based On:
Age Disability Marital Status R Race Sex Religion National Origin
Other (Specify): ______
Violation of Law: Specify applicable local, state, or federal law, statute, regulations, or ordinance you claim the Company has violated. ______Details of Complaint: Attach separate statement or relevant supporting documents as applicable. ______Award/Relief Sought: Total Dollar Amount:$
Description of other relief sought: ______Employee represents that he or she has a dispute that is eligible for arbitration and is submitting the dispute for resolution. Employee understands and agrees that the decision of the Arbitrator is final and binding on both the Company and the employee.
Employee Signature:______Date:______
Company Representative Signature:______Date received:______
17 6.0 Questions and Answers
WHAT IS THE DISPUTE RESOLUTION PROCESS AND WHO IS AFFECTED?
The Dispute Resolution Process has been initiated to resolve disputes employees may have with the Company. The process affects all Management and Management Support employees. The Process consists of Four Steps:
Step 1 - Functional Review
Step 2 - Human Resources Review
Step 3 - Management Appeals Committee
Step 4 - Arbitration
Does the process require me to go through each step completely before going to the next one?
Yes. The steps are arranged in a logical pattern applicable to most disputes.
Can I use the Dispute Resolution Process to solve any problem that happens at work?
Yes. You may use Dispute Resolution to address any concerns, questions or problems you may have in the workplace. Step 4. Arbitration, is the external resolution process that can be used to resolve only those problems involving certain legally protected rights, such as: employment discrimination, sexual or other legally prohibited forms of harassment, tort claims, claims arising from an alleged violation of any federal, state, or local law, statute regulation or ordinance. However arbitration does not apply to Workers Compensation Claims, Unemployment Compensation Claims, and ERISA benefits. Moreover, arbitration does not preclude your ability to file a charge with the Equal Employment Opportunity Commission or similar federal, state or local agency.
18 What is Arbitration?
Arbitration is a process in which a dispute is presented to a neutral third party arbitrator for a final and binding decision. The specific arbitrator who will decide your case will be selected by you and the company from a list of arbitrators provided by the American Arbitration Association (AAA).
a) A party involved in a legal dispute files a Request WHAT are the for Arbitration / Employee Pays 50% of filing fee, up TYPICAL STEPS in to $125. ARBITRATION ? b) AAA is notified. c) AAA offers a list of qualified Arbitrators. d) Each party deletes or accepts the Arbitrator Names (no more than three lists) until one is chosen. e) AAA arranges a hearing date at a convenient location. f) Documents are exchanged, and witnesses are identified. g) At the hearing, testimony is given and witnesses are cross-examined. h) The arbitrator issues a final and binding decision. i) Copies of this decision are sent to both parties.
Who are the The Arbitrator who hears a case is selected by the parties Arbitrators that from a list of arbitrators provided by the American Arbitration would decide the Association (AAA). The arbitrators are completely case? independent of ties to either party involved in a dispute.
How Long Does Arbitration Take?
Arbitration hearings can last from a few hours to several days depending on the complexity of the case, number of witnesses, and evidence introduced. However, disputes resolved through the arbitration process are generally resolved much sooner than through formal legal court proceedings.
Arbitration will be conducted according to the applicable rules HOW IS AN of the AAA that pertain to employment disputes. Parties may ARBITRATION be represented by attorneys if they wish; may call witnesses CONDUCTED to testify; and may cross-examine witnesses who testify for ? the other party. The arbitrator also gives a written decision on who won the case and why they were successful after each side has presented its case.
How does Arbitration differ from a court trial? In arbitration the arbitrator's decision is final. In a court trial decision, an appeal may be filed, causing lengthy delays. The proceedings are held in private offices determined by AAA instead of in a public courthouse. Arbitration proceedings
19 are private instead of public. Because arbitration is faster and less formal, it ends up costing much less to both the Company and the affected employee.
Why is Arbitration better than a court proceeding? Arbitration will result in a fair and a fast decision. For employees, this will mean a more timely resolution of disputes including any compensation that is made part of the arbitration award. The Company will also benefit in faster decisions by reduced legal fees whether it wins or loses. The applicable laws and available award remedies are exactly the same as they are in court.
Does the Arbitration process apply to all GDLS employees? The program applies to all GDLS employees who are not represented by a union, including employees of General Dynamics Land Systems Inc. and all Subsidiaries and affiliates of GDLS. It does not apply to employees represented by a union. Union employees have a separate arbitration process.
If an employee is discharged and Is there any special limit on the appeals in Arbitration, does the amount of award I can win through arbitrator have the power to reinstate Arbitration? the employee? Yes. The arbitrator will have exactly the No. It is possible for you to recover same power that a court would have in anything you might have sought through deciding the same kind of claim. the court system.
When Can I Use Arbitration?
Arbitration is the fourth and final step in the GDLS Dispute Resolution Process. If you have presented your case to the Management Appeals Committee and you disagree with the decision, you can request Arbitration no later than 30 days after the final date of decision of the Management Appeals Committee if your case is based on a legally protected right.
What happens if I file a lawsuit against the company for a workplace dispute?
If you file a lawsuit, GDLS will ask the court to dismiss the case and refer it to our Dispute Resolution Process.
20 If I am terminated or laid off from GDLS, does the Dispute Resolution Process still apply to me?
Yes. The internal Management Appeals Committee process and, where appropriate, Arbitration is still available. The arbitration process described herein (and the process described in prior versions of the Dispute Resolution Handbook) is your exclusive external remedy for disputes involving protected rights, instead of through the court system, even if you have been terminated from the Company.
Why has GDLS adopted this process?
Using the judicial system to decide a dispute often takes too long and is too expensive for everyone involved. Arbitration benefits both parties in a dispute because it is faster and less costly than litigation costs through the courts.
Can I be represented by an attorney? Do I have to hire an attorney to arbitrate?
Both parties can be represented by an attorney, however, each party must pay for their own counsel regardless of the outcome. Employees are not required to hire an attorney and may represent themselves.
Will I be compensated by GDLS for the time I spend presenting my dispute to the Management Appeals Committee or at Arbitration proceedings?
If you are an active employee and attend a Management Appeals Committee meeting or arbitration proceeding during your regular work day, you will receive your normal compensation for that day. Any time you spend at such meetings should be charged to an overhead charge number which will be supplied to you by Human Resources. However, the time you spend preparing for any of these meetings should be done on non-work time and will not be compensated by GDLS.
Are there any other costs?
Yes. Costs which are not shared are those which you may wish to incur to present your case such as your lawyer fees if you decide to have one, depositions, witness fees, document reproduction and so forth.
GENERAL DYNAMICS Land Systems
c:/wpwin60/cpw/dispute.fnl
21 ACKNOWLEDGEMENT
The undersigned employee of General Dynamics Land Systems Inc., or one of its Subsidiaries or affiliates, acknowledges that he/she has received, read and understands the General Dynamics Land Systems Dispute Resolution Policy and agrees to comply with the policy, arbitrate all specified employment disputes and forego litigation in any judicial forum before a court, jury or administrative agency of all specified employee disputes.
By this agreement (the “Agreement”), I agree to the exclusive resolution of all claims arising out of or relating to my application for employment, employment, or termination of employment by the terms of the Employer’s dispute Resolution Policy (“DRP”).
The claims covered by this Agreement, shall include, but are not limited to, all statutory or common law claims for wages, breach of any express or implied promises, torts, discrimination, harassment, or retaliation on any basis, but shall not include claims for workers compensation, unemployment compensation, claims for preliminary injunctive relief, or claims under any benefit plan, pension plan, or other agreement that provides its own dispute resolution procedures. However, as a contractor for the U.S. Department of Defense, the Employer will not enforce this Agreement to require me to resolve through arbitration any claim under Title VII of the Civil Rights Act of 1964 or any tort related to or arising from sexual assault or harassment (“Elective Claims”).
I understand that, as a result of this Agreement, the Employer and I have agreed to use the DRP as the exclusive forum for resolution of claims covered by this Agreement and have waived the right to jury trial as to such covered claim, except that Elective Claims are not subject to the mandatory arbitration step of the DRP.
Date Employee
Print: Name
22