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c) Take disciplinary action;

d) Assign work, make selections for appointment, determine qualifications of employees.

2 — The following are the responsibilities of the employer:

a) Respect employees as an integral element of the organization and treat them with civility;

b) Pay employees a fair and adequate wage;

c) Provide employees with good working conditions, from bom a physical as well as a morale standpoint;

d) Contribute to the increase of employees' levels of productivity;

e) Compensate employees for damages caused by occupational diseases or injuries sustained from on-the-job accidents; USFORAZ may transfer this responsibility to an insurance company;

/) Not deny employees' rights or guarantees;

g) Not permanently transfer an employee off Terceira Island unless such a transfer is acceptable to the employee;

h) Provide certificates of conduct and professional competence in accordance with USFORAZ internal regulations;

0 Counsel workers to act in such a way as to favorably influence worker performance and working conditions;

Í) Award those employees who have distinguished themselves for their competence, zeal or dedication, in accordance with internal regulations;

k) Allow an employee to hold office in labor union organizations, welfare institutions, or to be a member of the Committee of Employee Representatives; and

/) Comply with all the terms of the employee work contracts.

3 — Without prejudice to the previous paragraphs, USFORAZ may take the necessary actions to carry out its mission during emergencies.

Article 29 Women employees

1 — Women employees are entitled to the following without loss of pay:

a) A womans is excused from performing tasks considered medically inadvisable for her condition during pregnancy and up to 3 months after delivery;

b) To be absent from work during 90 days during her maternity period without a reduction in her vacation period or time in service. 60 of those days must be taken immediately after delivery and the remaining 30 days must be taken in their entirety or in part before or after the delivery.

2 — If the child is hospitalized after delivery, maternity leave may be interrupted, as long as the child is in the hospital, and resumed from the time

hospitalization terminates until the end of the maternity leave period.

3 — In the event of a miscarriage or still-born delivery, the maternity leave period will be a maximum of 30 days.

4 — Entitlement to maternity leave terminates in case of death of the live birth child, but a rest period of 30 days will always be assured.

5 — If the employee cannot return to work at the end of the period referred to in paragraph 1, b), the period may be extended under the provisions of article 68, paragraph 1.

Article 30 Restriction of access to PAF area

AAC may restrict the access of Portuguese nationals employed by USFORAZ or its concessionaires to areas upder the jurisdiction of PAF either temporarily or permanently whenever justified. USFORAZ may take action under article 74, with respect to employees temporarily restricted, and under article 88, with respect to employees permanently restricted without further appeal.

Article 31 Identification badge

1 — As a security measure, personnel employed under the provisions of this regulation must carry an identification badge which conforms to the model provided in the instructions for issuance of entrance passes to Air Base No. 4.

2 — USFORAZ has the authority to require that the aforesaid badge or other acceptable identification be conspicuously worn in designated areas for justified reasons.

CHAPTER V Committee of employee representatives

Article 32 General principle

Portuguese USFORAZ employees have the right to be represented by a Committee of Employee Representatives (hereafter referred to as Committee).

Article 33 Elections

1 — The Committee will be elected bi-annually from lists of candidates proposed by permanent employees through secret ballot according to the principle of proportional representation.

2 — The proposed lists of candidates must be en-sed by the acting Committee or a minimum of 10 % of the permanent employees. No employee may endorse or be included in more than one list.

3 — Elections will be called a minimum of 15 days in advance by the acting Committee or a minimum of 10 % of the permanent employees. Ample publicity of the elections will be made, indicating specifically