TENTATIVE AGREEMENT HIGHLIGHTS AND REVIEW NATIONAL MASTER FIRST STUDENT AGREEMENT

1. TENTATIVE AGREEMENT HIGHLIGHTS AND REVIEW NATIONAL MASTER FIRST STUDENT AGREEMENT

2. STRUCTURE OF THE MASTER AGREEMENT • UNIQUE TO THE SCHOOL BUS INDUSTRY • OVERLAY LOCAL AGREEMENTS WHICH WILL BE LIKE SUPPLEMENTS • EXISTING AGREEMENTS REMAIN IN FULL EFFECT

3. STRUCTURE OF THE MASTER AGREEMENT • ECONOMICS TO BE NEGOTIATED LOCALLY • UNIQUE TERMS AND CONDITIONS TO BE NEGOTIATED LOCALLY

4. ARTICLE 1.Parties to the Agreement • Operates like other Teamster National Agreements • Unions Covered: Locals and Teamsters First Student National Negotiating Committee • Employer Covered: First Student – U.S. Operations

5. ARTICLE 2.Scope of Agreement • Local agreements must be submitted to National Union Committee for approval • National Union Committee and Company agree to get together to try to resolve negotiating disputes • 21 day cooling off period after involvement of National Union Committee or 5 days after National Union Committee states that further bargaining would be fruitless Section 1. Scope and Approval of Local Supplements

6. ARTICLE 2.Scope of Agreementcontinued Art. 2, Section 1: “Best of both worlds clause” “… any previously adopted local agreement, practice or provision which provides less than the wages, hours, and working conditions established by this Agreement and the supplements and/or riders hereto shall become null and void.” “… any lesser conditions contained in any Supplement, Rider or Addendum hereto shall be superseded by the conditions contained in this National Agreement.” “However, nothing in this National Agreement shall deprive any employee of any superior benefit or term contained in their Supplement, Rider or Addendum.”

7. ARTICLE 2.Scope of Agreementcontinued • Accretion Clause - See Section 2 last paragraph • Additional Operations - National Agreement will apply to newly organized operations • Single Bargaining Unit – National Agreement creates single bargaining unit

8. ARTICLE 3.Union Recognition and Dues • Standard Union security requirements and dues check-off language • Union entitled to the strongest union security permitted by law: “This paragraph shall be interpreted to provide the Union and its Local Unions with the maximum Union Security that may be legally permissible.” • Company also agrees to check-off for DRIVE

9. ARTICLE 4.Transfer of Company Title or Interest • “Successorship” clause • Company required to give notice of this agreement and make sure that a successor adopts the contract

10. Article 5.Job Stewards • Standard Steward Language • Reasonable time during regular schedule to perform steward duties

11. ARTICLE 6.Maintenance of Standards “…all conditions of employment relating to wages, hours of work, overtime differentials, other benefits or forms of compensation and general working conditions shall be maintained at not less than the highest standards in effect at the time at that location of the signing of this Agreement and the conditions of employment shall be improved wherever specific provisions for improvements are made elsewhere in this Agreement, or have been negotiated for adequate replacement…”

12. ARTICLE 7.Protection of Rights • Company prohibited from direct dealing • Right to honor picket lines protected • Right to refuse to perform struck work

13. ARTICLE 8. Access to Premises • Right of Union officials to have access to workplace without advance notice • Union entitled to bulletin board • Right to obtain certain records and other information from Company • Company to provide information within 7 days

14. ARTICLES 9-10 • Art. 9 Compensation Claims – Company agrees to cooperate toward the prompt settlement of on-the-job injury claims. Company required to provide compensation coverage. • Art. 10 Military Clause – Company to comply with USERRA and Reserve Forces Act.

15. ARTICLE 11.Discipline and Discharge • “Just cause” required • Progressive discipline required except in severe situations • Warning notices shall expire 9 months from occurrence • “All employees shall receive their normal pay and benefits during the course of any investigation by the Employer which may lead to the imposition of discipline.” • Company must advise employees of Weingarten rights

16. ARTICLE 11. Discipline and Discharge continued • Company must meet with Customer • Company must seek to get Union in to meet with Customer • Company must make “every effort” to place employee in equivalent work, in unit, or if not possible in other mutually agreeable locations • Company cannot initiate Customer removal CUSTOMER REMOVAL PROTECTIONS

17. ARTICLES 12-15 • Article 12. No Discrimination. Also protects employee right to go to court. • Article 13. No Harassment of employees in any manner. • Article 14. Absence for Union business. Employees granted time off to go to union conventions or serve in other union capacity. Up to 30 days but may be longer on mutual consent. • Article 15. Company must provide any required uniforms free of charge. Also, employees can wear a reasonable Teamster union pin or button.

18. ARTICLE 16.Passengers • Drivers, Monitors and Aides shall be entitled to have their own minor children accompany them on their routes provided they are older than 1 year and weigh more than 20 pounds and provided that the customer does not affirmatively prohibit such ridership

19. ARTICLE 17.Loss or Damage • No discipline for loss or damage unless just cause is shown. (i.e. no no-fault discipline for damage). • Cannot be charged for loss or damage to equipment under any circumstances.

20. ARTICLE 18.Court Appearances • When an employee is required by the Company or a subpoena to testify in court about any accident or conduct he/she witnessed or was involved in during working hours, he will not lose pay. Provided he/she is not charged or convicted of criminal negligence or convicted of drunk driving during working hours.

21. ARTICLE 19.Daily Maintenance of Bus • Article 19 requires that members “be paid for all time spent cleaning, checking, inspecting and sanitizing buses.” The Article also requires that the company provide all necessary equipment AND training before any member is required to handle hazardous or bodily waste. “Employees shall not be required to clean or handle blood, bodily waste or fluids, chemicals or other hazardous materials unless provided proper equipment and training.”

22. ARTICLES 20-23 • Art. 20. Company will pay fine for any equipment violation that is not the fault of the driver. • Art. 21. Company will honor Union’s internal jurisdictional determinations. • Art. 22. Company will provide locked glass bulletin boards for Union use for official business. • Art. 23. Company will pay for all required personal ID including replacement costs.

23. ARTICLE 24.Personnel Files • Employees will have access to their employee records, in the presence of a Union Steward or Representative, including the opportunity to place a rebuttal to any document in the file. Further, Article 24 requires that documents be presented to members before they are added to the file.

24. ARTICLE 25.Defective Equipment and Conditions • “Under no circumstances will an employee be required to engage in any activity involving dangerous conditions of work or danger to person or property • “Any equipment which is refused because it is not mechanically sound or properly equipped shall not be used by other drivers until the Maintenance Department has adjusted the complaint.” • Company must provide clean, safe and functional lots/yards including proper lighting and maintenance to all areas as well as “clean and sanitary restrooms with functioning hot and cold water sink faucets.” • “Whistleblower” protection for employees who file safety complaints.

25. ARTICLE 26.Upgrading • Employees will be upgraded “on a voluntary basis and such training time will be paid for by the Employer.” The Agreement spells out the process for upgrading, including seniority recognition and a provision that “employees will be allowed forty (40) hours for any upgrading training at the non-revenue rate of pay.”

26. ARTICLES 27-28 • Art. 27 Drug/Alcohol Policy Company policy is attached and made part of the Agreement. Parties will adhere to all DOT rules and regulations. • Art. 28 Layoff Notice At least 5 days advance notice of a permanent layoff for lack of work or applicable law, whichever is greater.

27. ARTICLES 29-31 • Art. 29 Member transfer rights. If a member is assigned for the Employer’s convenience “to a lower paying classification, said employee shall continue to be compensated at the employee’s normal hourly rate.” • Art. 30. Strong seniority language. Seniority prevails. Also provides that any member who transfers to another site retains seniority for purposes of wage and benefit provisions/progressions, but is end-tailed into the new location for all bidding purposes. • Art. 31. Quarterly posting of Seniority list – 30 days to challenge inaccuracies

28. ARTICLE 32. Jury Duty • Paid Jury Leave - Any employee called for jury duty, “shall be paid his regular rate of pay for all days the employee serves on the jury for up to three weeks per year” upon presentation and proof by the employee. The company may deduct government jury duty pay from the employee’s paycheck. The Company and employee agree to cooperate to minimize the impact on Jury duty on the Company.

29. ARTICLE 33 • Art. 33. Exclusive Agreement This is the only National agreement However, “nothing in this agreement shall result in the reduction of pay or benefits to employees in the bargaining unit.”

30. ARTICLE 34.Unit Work • Bargaining unit personnel shall perform unit work except in the absence of sufficient employees or a recognized emergency. • The Company will not subcontract, lease or diminish bargaining unit work opportunities. • The Company will hire more bargaining unit employees when there is sufficient work.

31. ARTICLE 35.Summer Recess • The Company agrees to support the application for unemployment insurance sought by employees who are not working during the summer recess.

32. ARTICLE 36.Positive Relations Committee • The Company and Union agree to “work jointly to develop a positive labor-management relationship … to demonstrate that labor-management collaboration can produce market-leading competitive performance and a superior workplace for employees.” This Article establishes a joint committee to “review and discuss issues of mutual importance and to resolve disputes” around issues of national significance to the Members.

33. ARTICLE 37.Work Rules / Policies • All rules and policies (including handbook) must be reasonable. • Union must be given advance notice of any proposed changes or new policies (including handbook). • Union must be given opportunity to substantively confer prior to implementation of any new rules/policies or changes (including handbook). • Union can challenge the substance and reasonableness of the rules/policies (including handbook) as well as the implementation through arbitration or other appropriate legal processes.

34. ARTICLE 38.FMLA • Employees who have worked a minimum of 700 hours, rather than the standard 1,250, within any 12-month period are eligible for FMLA and any relating state law that applies. The employee’s seniority will continue during the leave, and the Employer will maintain any health insurance coverage during the leave period. “It is specifically understood that an employee will not be required to repay any of the employer contributions for his/her health insurance during leave but shall be responsible for his/her contributions during this absence. No employee will be disciplined for requesting or taking leave under this Article.”

35. ARTICLES 39-40 • Art. 39. Hours of Work. Employees will be paid for all time in the service of the employer. • Art. 40. Examinations. When directed by the Employer, all examinations shall be paid for by the Employer. If an employee is removed from work to take such examination and is later determined to be fit for work, the employee will be made whole by the Employer. The Union must be notified prior to any Member being forced to see a doctor and Employer must advise employee of Weingarten rights.

36. ARTICLE 41.Background Checks • Limited scope for background checks. “it is understood that during the tenure of the employee’s employment, they will be subject to subsequent background checks which shall be limited to criminal and driving records.” No credit information will be used against the employee. • Pay protection during background checks. Article 42 provides that any employee who is “returning for work after an absence and is ready, willing and able to work shall not sustain an economic loss due to any delay as a result of completing the background check.”

37. ARTICLE 42.Joint National Grievance Review Committee • To expedite cases and minimize costs for Local Unions engaged in the grievance process over issues of national or Regional importance, the Agreement establishes the JNGRC which will meet quarterly “to review such disputes prior to the submission of the matter to the final authority for resolution (whether an arbitrator or a panel) set forth in the local agreement out of which the dispute arises or this National Agreement.” • The JNGRC “shall function with the same authority as a neutral arbitrator or mediator. The JNGRC shall have the authority to issue final and binding decisions…. If the JNGRC deadlocks the dispute will go back to the parties to handle in their normal way (arbitration or panel). • Unresolved disputes arising from the National Agreement language shall be submitted to final and binding arbitration upon written notice from either party.

38. ARTICLE 43.No-Strike / No-Lockout • Only applies to matters that can be resolved through the contractual grievance procedures and • Only applies when both the National Agreement and Local agreement are in full force and effect. The only exception is for the one time “cooling off” period which allows the National Union Committee to attempt to assist the Local Union in resolving its negotiations with the Company. • No nationwide strikes during the life of the national agreement. The no-strike obligation is limited:

39. ARTICLES 44.Direct Deposit • Company agrees to use direct deposit if the employee chooses to use it. The employees cannot be forced to use direct deposit.

40. ARTICLE 45.Miscellaneous Benefit Provisions OUT OF TOWN TRIP PROTECTIONS • Drivers will not be required to chaperone passengers outside the bus during overnight field trips; • Drivers cannot be required to share hotel rooms; • “No employee shall be required to front any lodging, fuel, or repair expenses;” • The Employer will reimburse drivers for phone calls and expenses having a direct relation to operations; • “Expense reimbursements shall be paid no later than the next pay period following submission of receipts.”

41. ARTICLE 45.Miscellaneous Benefit Provisionscontinued • Contractual requirements for resolution of payroll discrepancies. Any payroll discrepancy of $50 or more, not due to the fault of the employee and promptly brought to the attention of management, will be corrected within twenty-four (24) hours by cash or check. Payroll discrepancy of less than $50 will be corrected in the following week’s paycheck” • Company-provided flu shots. “the Company shall make flu shots available to all bargaining unit personnel at no cost to the employee.” • Participation in and company contributions to either a Teamster or Company 401(k) plan. “Subject to local agreement, the bargaining unit will be eligible to participate in either the Company’s 401(k) plan or a Teamster 401(k) plan in accordance with the rules and regulations established in each plan. The Company’s matching contribution shall be paid to either plan.”

42. ARTICLE 47.Health Care • Establishes a joint committee specifically to address employer-provided health care. The committee shall meet quarterly. The parties commit to finding alternative ways of providing affordable health care to all members of the bargaining unit. The parties recognize the importance of employer provided health care.

43. ARTICLES 46, 48-49 General contract provisions • Art. 46 - Gender clause • Art. 48 - Separability and savings clause • Art. 49 – Termination • Just under 4 years in duration • Where a local agreement expires before that it operates as a complete reopener with right to strike, subject only to the cooling off period.

44. FREEDOM OF ASSOCIATION • For the first time the Company’s FOA policy is now part of a binding contract that we can enforce • This requires the Company to be completely neutral in any location the Union is organizing. • Disputes under the FOA can be resolved through binding arbitration.