1. Lockheed Martin Aeronautics Company Joint Workplace Employee Participation Program JWEPP Updated: 7-June, 2005

2. Lockheed Martin Aeronautics Company 2 Agenda What is the JWEPP ? What is the JWEPP ? What is the goal of JWEPP ? What is the goal of JWEPP ? What impact does JWEPP have on me and my job? What impact does JWEPP have on me and my job? JWEPP Operating Ground rules JWEPP Operating Ground rules How is the JWEPP organized ? How is the JWEPP organized ? How are team members selected? How are team members selected? Examples of JWEPP successes Examples of JWEPP successes Summary Summary

3. Lockheed Martin Aeronautics Company 3 What is the JWEPP ? The Joint Workplace Employee Participation Program (JWEPP) is a program designed to foster employee knowledge, involvement and ideas to enhance Lockheed Martin’s ability to achieve continuous improvement in configuration, quality and cost of work processes. This belief supports two key objectives: to provide our customers with best value solutions, and provide good, satisfying jobs for our employees.

4. Lockheed Martin Aeronautics Company 4 History This program became effective on July 15 1998. Since the development of JWEPP, we have: - worked as a team in outbidding some sub-contracted work. - prevented the scheduled reduction of some employees. - contributed to recent recalls. - successfully helped bring work here from other companies. The JWEPP was modeled in part from successful programs of the International Association of Machinists (IAM.) The JWEPP demonstrates how labor and management, partnering equally in day-to-day operations of the business, can benefit both parties.

5. Lockheed Martin Aeronautics Company 5 What is the goal of JWEPP ? This joint program will broaden opportunities for IAM-represented employees to: - learn new techniques and concepts. - provide input to the design of their work environment. - grow professionally. The long term goal of the JWEPP is to win future business and build greater job security for all employees.

6. Lockheed Martin Aeronautics Company 6 What impact does JWEPP have on me and my job? 4Personal growth opportunity 4Allows me to influence my work environment 4Enhances the processes by which I do my work 4Provides Job Stability 4Builds Job Security

7. Lockheed Martin Aeronautics Company 7 JWEPP Operating Ground rules The JWEPP agreement does not: - replace existing company-union labor agreements. - address items covered by the labor contract. - address matters that are subject to collective bargaining. Examples of items excluded from this agreement include: - pay-related issues - employee benefits - job classification/assignment issues - grievances and union representation.

8. Lockheed Martin Aeronautics Company 8 The JWEPP Organization JWEPP Coordinators Pauline Ramos – Union David Abbett – Company John Rangel – Asst. Union JWEPP Joint Steering Committee Union David Webb (co-chair) Richard Stum Earnest Boone Eddie Lynch Company Larry Pike (co-chair) James Kearney Marc Lauderdale Robert Powell JWEPP Ex Officio Members Pat Lane – Union Ralph Heath - Company Meets Monthly Daily Operations

9. Lockheed Martin Aeronautics Company 9 How is the JWEPP organized ? Here are three levels of JWEPP Action Teams and the scope of issues each level covers: Department Action Teams - address shop floor problem Department Action Teams - address shop floor problem solving or improvement issues normally contained within solving or improvement issues normally contained within a business unit or Department. a business unit or Department. Plant Action Teams – address shop floor problem solving Plant Action Teams – address shop floor problem solving or improvement issues which span more than one business or improvement issues which span more than one business unit or department. unit or department. Company Action Teams – address special program-wide or Company Action Teams – address special program-wide or company-wide topics. company-wide topics.

10. Lockheed Martin Aeronautics Company 10 JWEPP team member selection Selection of IAM-represented Action Team members will be among volunteers from the applicable department and be selected by the IAM (Contact David Webb). Selection of non-IAM-represented Action Team members will be among volunteers from the applicable department and selected by the Company. Coordinators will have access to all information about team operations, including sitting in on team meetings, training and other activities.

11. Lockheed Martin Aeronautics Company 11 F-22 Electrical Fabrication 5 Represented Team Members 14 New Jobs 14 New Jobs

12. Lockheed Martin Aeronautics Company 12 Tube and Weld Shops 4 Represented Team Members F-22 Tubes Insourced to Fort Worth 4 NEW JOBS!!!

13. Lockheed Martin Aeronautics Company 13 Shadowboxing 8 Represented Team Members NEW JOBS!!!

14. Lockheed Martin Aeronautics Company 14 Small Diameter Tube Sub-Assembly 5 Represented Team Members

15. Lockheed Martin Aeronautics Company 15 F-22 Composites Area 4 Represented Team Members

16. Lockheed Martin Aeronautics Company 16 F-16 Final Assembly 18 Represented Team Members

17. Lockheed Martin Aeronautics Company 17 F-16 Final Paint 11 Represented Team Members

18. Lockheed Martin Aeronautics Company 18 Teaming is a ‘Win - Win’ !!!

19. Lockheed Martin Aeronautics Company 19 Your Commitment is Key The Company and the Union leadership both recognize the significant contributions our represented workforce has made and continues to make to the Company’s long history of success. The two parties welcome individual and collective input and invite active participation in the JWEPP Program as opportunities arise. Your commitment to the success of this important initiative will position LM Aero to win new and follow-on aircraft programs that represent your future. "Future government contracts will only be issued to companies that are Lean“

20. Lockheed Martin Aeronautics Company 20 Questions ?