16 DE JUNHO DE 1995

822-(25)

Article 13 Termination of work contract

1 — Work contracts may be terminated only for appropriate reasons and employees may not be separated for political or ideological reasons.

2 — Termination of work contract may occur due to:

a) Expiration;

b) Retirement due to old age or disability;

c) Revocation by mutual agreement;

d) Removal with just cause promoted by USFORAZORES;

e) Recision on employee's initiative;

f) Recision by either party during the trial period; or

g) Collective removal, including but not limited to lack of work, lack of funds, organizational realignment or other mission changes.

3 — Termination of work contract with indemnity may occur due to:

a) Revocation by mutual agreement; or

b) Collective removal as defined above.

4 — The indemnity payable to employees who have their employment terminated under the terms specified in paragraph 3 is computed as one month's pay, including English language bonus, for each full year of creditable service at the rate received immediately before separation. In no case shall an eligible employee receive less than three months' pay.

Article 14

Labor Committee

1 — A Labor Committee is established to ensure proper implementation of this labor Agreement and the work Regulation and to serve as a channel for continuing consultation between the two Parties.

2 — This Committee will:

a) Act as the second level for the resolution of individual employee work related complaints as prescribed in article 2;

b) 'Resolve any questions referred to it regarding interpretation of the Agreement and the Work Regulation;

c) Consider the need and make recommendations to die Standing Bilateral Comission for the revision of this Labor Agreement and Work Regulation.

3 — The Labor Committee shall be composed of not more than three representatives appointed by each Party including a labor relations specialist on each side.

4 — The Committee shall determine its own procedures and all decisions will be made by consensus.

Article 15 Dlsput resolution

1 — In addition to administering the provisions of this Agreement and the Work Regulation, the multi-level intervention process specified in article 2 shall also be used for the resolutions of disputes involving employee complaints.

2 — The implementation of this mechanism must be done in a way which recognizes the sovereignty, constitutional and legal structures, of each Party, and the rights of their citizens.

3 — In the event that all measures available in the three-level bilateral process are exhausted without reaching a resolution of a particular labor-management dispute, and should such a matter be further contested by a Portuguese employee resulting in a judgment in a court of law, without the intent to provide for a review of the court's decision, both the United States and Portugal recognize that this situation would create an issue for resolution between them as sovereign states within the framework of the Standing Bilateral Commission.

Article 16 Processing complaints

1 — Employees have die right to submit an oral or a written complaint to their superiors in accordance with the Work Regulation.

2 — If the complaint proceeds upwards and is not resolved at the first level described in article 2, the employee may appeal, directly or through the CRT, to the Labor Committee and, if still unresolved, subsequently to the Standing Bilateral Comission.

Article 17 Competent court

1 — The Court of the Judicial District of Angra do Heroísmo is the competent court to judge eventual proceedings resulting from work contracts.

2 — In all such law suits against the employer, the named defendant will be the United States of America.

3 — Service of process will be in conformity with the Hague Convention on Service Abroad of Judicial and Extrajudicial Documents in Civil of Commercial Matters of Novembre 15, 1965.

Article 18 Entry into force

This Labor Agreement will enter into, and remain in force, under the terms of article x of the Agreement on Cooperation and Defense.

In witness whereof die undersigned, being duly authorized by their respective governments, have signed this Agreement.

Done at Lisbon on this first day of June, 1995, in duplicate, in the Portuguese and English languages, each being equally authentic.

For Portugal:

José Manuel Durão Barroso, Minister of Foreign Affairs.

For the United States of America:

Warren Chistopher, Secretary of State.

TECHNICAL AGREEMENT

Article I Facilities on Portuguese territory

1—Without prejudice to its absolute sovereignty and control over its territory, territorial waters and air space.