This settlement agreement is made and entered into by and between the National Association of Air Traffic Specialists (Union or NAATS) and the U.S. Department of Transportation, Federal Aviation Administration (the Agency). The purpose of this settlement agreement is to resolve with finality: (1) the Union's October 18, 1993 grievance for back pay on behalf of all NAATS bargaining unit members (employees) who were employed on October 18, 1993, and who were regularly scheduled to work on Sunday and took paid leave on that day and did not receive premium pay and any individual grievances by employees concerning the same issue that were filed under the Parties' collective bargaining agreement.

In Armitage v. United States, No. 92-5157, (Fed. Cir. April 12, 1993), the court held that employees who are regularly scheduled to work on Sunday are entitled to premium pay for annual and sick leave used on that day. On August 26, 1993, the Office of Personnel Management further determined that such employees are entitled to premium pay for other types of paid leave and excused absences. The Agency complied with the prospective application of Armitage and the Office of Personnel Management guidance by paying employees such premium pay beginning May 30, 1993.

In consideration of the premises and mutual promises herein contained, it is agreed as follows:

1. This settlement agreement covers, includes and is binding upon all NAATS employees in the bargaining unit on October 18, 1993.

2. For the period March 7, 1993 through May 29, 1993, each employee's back pay, including accrued interest, will be determined on a pay period by pay period basis based upon actual use of paid leave and excused absence taken on Sundays. Payments under this paragraph shall be made to employees by the Agency on or before December 31, 1994.

3. For the period October 18, 1987, through March 6, 1993, eligible employees in the NAATS bargaining unit, will receive Sunday premium pay in accordance with paragraph 4 below.

4. An employee's net payment is calculated by deducting from the gross payment (which includes principal and interest) 28% of the principal for Federal income tax withholding and 7.65% (FERS) or 1.45% (CSRS) of the principal for the FICA/Medicare withholding. An employee's gross payment on the principal is based on the premise that fourteen point thirty-three percent (14.33%) of paid leave or excused absence taken by an employee occurred on Sunday, is calculated by applying the following formula: multiply 14.33% times the actual number of leave hours taken, times the employee's rate of basic daily pay, times .25 (reflecting the rate of Sunday premium pay (25%).

5. The Agency shall record on each employee's W-2 form for 1994 the amount of the gross payment and Federal income taxes and FICA/Medicare withheld under this settlement agreement.

6. The agency shall make payment to each eligible employee of the net amount of premium pay based on the formula in paragraph 4 above by no later than 60 days from the effective date of this agreement. Each employee's statement of leave and earnings will include the gross/net amount of premium pay paid. The Union will be provided a listing of employees by cost code and alphabetical order showing the gross/net amount of each employee's payment. If an eligible employee's name is not included on the original listing and he/she was entitled to back pay under this agreement, written notification by the employee or union of such an omission must be made within 180 days from the effective date of this agreement to the designated agency official. Payment to these employees will be made within 60 days of the end of the 180 day period.

7. The Union shall withdraw with prejudice grievance (NA) ALR-93-2-NAT-1, dated October 18, 1993 and all other related grievances from employees. The Union shall release the Agency and its employees from any and all claims arising out of the subject matter of this grievance for covered employees. The Union further agrees that claims raised in this grievance shall not become the subject of any future employee or union claims, grievances, complaints, charges, or union initiated court proceedings.

8. This settlement agreement shall not be construed as an admission by the Agency of any unlawful or improper act against the Union or any Agency employees. The Agency specifically disclaims any liability to the Union, any Agency employees represented by the union, or any other person.

9. This settlement shall be binding upon the Union and the Agency employees it represents, the employees' heirs, administrators, representatives, executors, successors, and assigns, and shall inure to their benefit and the benefit of the Agency and its employees and other agents.

10. The Parties hereby confirm that they have acted with the advice of legal counsel and with full knowledge of all the material facts in the execution of this settlement agreement. The settlement agreement is a voluntary act of the parties, free from undue influence, fraud, misrepresentation, or coercion.

11. This settlement agreement contains the entire understanding of the Parties. No modification or waiver of any of its terms of settlement agreement shall be valid unless it is made in writing and executed by the Parties.

12. All disputes concerning the interpretation, implementation, and enforcement of this settlement agreement shall be submitted to binding arbitration in accordance with the procedures set forth Article 67 of the Parties' collective bargaining agreement.

13. This settlement agreement constitutes a full and complete settlement of this matter, including all costs, attorney fees, and any other claims each party may have.

The Parties have executed this agreement on the 24th day of May, 1994.

Date: 5/24/94