Negotiations Update Area Director John Fox 3-3-08

New 3-year Contract Ratified

On Sunday, March 2, 2008, International of Association of Machinists members of Sunnyvale, Santa Cruz, Palmdale, CA; and Marietta, Georgia local lodges representing over 5,000 Lockheed Martin employees voted to accept the Company’s Last, Best and Final Offer at all three locations. Here are the results:

Combined Total for Sunnyvale, Santa Cruz, Cape Canaveral and Vandenberg Collective Bargaining Agreement 68% voted to accept

Sunnyvale, Local 2228 & Santa Cruz Local 2230 58.8% voted to accept

Cape Canaveral, FL – Local 1323 100% voted to accept

Vandenberg, CA – Local 2786 91% voted to accept

Marietta, GA – Local 709 88% voted to accept

Clarksburg, WV – Local 1027 90.1% voted to accept

Meridian, MS – Local 2368 93.6% voted to accept

Palmdale, CA – District 725 78.3% voted to accept

Ratification Bonus

A $2000 ratification bonus will be paid within twenty-one (21) days of ratification to each bargaining unit employee on the active payroll as of March 2, 2008, or on an approved leave of absence of less than one year, or on military leave. The entire payment may be deferred to the Hourly Savings Plan Plus (401K) upon completion of the appropriate form.

General Wage Increase

Within 15 working days of the ratification date, the base rate of each employee on the active payroll or approved leave of absence on such date shall be increased by four percent (4%).

Medical Plans

Any medical plan design changes as listed on the Company’s Last, Best and Final Proposal will take effect on January 1, 2009.

On behalf of your negotiating committee, we wish to thank everyone who voted.

negotiation_eco_final2_proposal_27feb081.xls

highlight of the company the last-best-final offer…

We exchanged our proposals with the company today… waiting for their response so far.

see following attachments.

negotiation_healthcare_26feb08.xls

negotiation_eco_proposal_26feb08.xls

sunnyvale_proposal-26feb08.doc

2008 Negotiations Update

KICK-OFF OF ECONOMIC NEGOTIATIONS WITH THREE MAJOR LOCKHEED MARTIN UNION COTRACTS

On Sunday February 17, IAM International President Tom Buffenbarger and IAM Vice President’s Rich Michalski, Lee Pearson, and Bob Martinez and Aerospace Coordinator John Crowdis delivered opening remarks to company negotiators from the Lockheed Martin Corporation. Approximately 40 Union negotiators and staff were in support of the strong words presented to the company. These Union Committees were from Sunnyvale, Palmdale, and Marietta, Georgia.

International President Buffenbarger expressed the high hopes and expectations that the membership has tasked our committees with in these negotiations. “Over 5,000 Lockheed Martin IAM represented employees from these locations will be directly affected by the outcome of these negotiations. Several hundred more Lockheed Martin employees have made agreements in their individual contract negotiations to accept some of the same benefit levels that are reached in the negotiations.

The IAM is the #1 Union in Aerospace and Lockheed Martin is the #1 defense contractor. Our membership is fully committed to bringing home a fair collective bargaining agreement for our members.

Where our members supply the highest quality products to defend the security of our country, we are not here to accept an inferior offer from the company. We are here to reach a fair and equitable agreement that our committees can recommend for ratification.

Over the next week and a half your union negotiating committees will be meeting everyday with the Company’s committee to exchange economic proposals. A mass meeting and ratification vote is tentatively scheduled for Sunday, March 2 at the District 166 Union Hall at 271 Taylor Ave. in Cape Canaveral.

Negotiations Update for Friday, Feb. 1, 2008

Negotiations to continue in Cathedral City, California.

After nearly three weeks of hard bargaining over Membership proposals dealing with many important contract language issues, and after a hard fought and successful battle to fight back company efforts to secure additional management rights, the negotiations are now entering phase two of the negotiating process.

These next negotiation sessions will begin on Sunday, February 17, 2008, in Cathedral City, California. This phase of negotiations will concentrate on economic issues, such as; wages, medical, and pension plan benefits, as well as other economic and non-economic issues not yet resolved.

IAM International President, Tom Buffenbarger, General Vice President’s, Lee Pearson, Rich Michalski, and Robert Martinez will join your negotiating committee to open this portion of the economic negotiations and to demonstrate to the company, the importance of these negotiations, and the International’s continued support of our efforts to secure a fair and decent contract.

Between now and February 17th, your Union committee will continue to meet and negotiate with local area management, concerning job studies, and labor grade wage adjustments.

As we reconvene in Cathedral City, your negotiating team will also be joined by Union negotiating committee’s representing IAM members in Palmdale, California and Marietta, Georgia. These other two major Lockheed Martin facilities have the same March 2008 contract expiration date as we do. This is additional strength for serious negotiations.

Your negotiating committee appreciates those members that have already stepped forward to give position testimony concerning job studies and other negotiation preparation. HOWEVER, as we enter this phase of negotiations, and if we are to be successful in this most important effort, all IAM members must stand together, like never before.

As information unfolds, your Negotiating Committee will be updating this website.

In continuing solidarity,

Your Negotiating Committee

1/29/2008

We continue to meet with the Company to try and resolve open issues, movement has been very slow. Brother John Crowdis joined us at the table today and encouraged the parties to try and reach resolution on the issues we could as time was getting short to resolve the non-economic issues. We will be moving into economic issues shortly.

Andy