Our Culture 31 Labor Relations Approximately 20% of our employees are represented by labor unions. Our employees are free to exercise their rights of freedom of association and collective bargaining, and we work to maintain positive relations with our employees’ representatives and to engage in good-faith negotiations on issues important to our employees, such as wages, benefits, schedules, job progression, health and safety. We have a proven track record of strong relationships with collectively bargained employees. As agreements expire or incidents arise, we work closely with the bargaining units to seek mutually beneficial outcomes. This was demonstrated over the past year as we worked to strengthen the relationship with a union at one of our sites following the resolution of a strike. In 2020, members of one of the five local unions representing Bath Iron Works employees went on strike for the first time in 20 years following a disagreement about the use of outside contractors to assist with recovering from schedule delays in delivering ships to the Navy. The dispute was resolved after nine weeks, with 87% of union members approving a new contract. As part of the agreement, union representatives and management formed a joint working group to work collaboratively on identifying and implementing the best courses of action to surge production to meet the shipyard’s obligations to the Navy. That process has been effective in improving schedule performance and increasing trust by inviting the input of employees who have a shared interest in improving the shipyard. Continuous Improvement General Dynamics is proud of our history of service to the people who comprise the aerospace and defense communities. Since our founding in 1952, we’ve maintained a laser-like focus on delivering superior products and services, continuously improving our offerings to the communities in which we live and work. Our transformation from the 1950s to present- day General Dynamics exemplifies this culture of continuous improvement, and the company we are today is a testament to that achievement. Leaders and employees across the globe are encouraged and rewarded for employing a continuous improvement perspective in every aspect of their roles with General Dynamics. We continually: y improve and expand product offerings to our customers; y fortify our diverse portfolio to better serve our shareholders; y enhance community engagement to contribute to the communities where our employees live and work; and y evolve employee benefits to develop and nurture our employees and their families. We continue to expand through both organic growth and acquisitions while maintaining our relentless focus on continuous improvement as well as operational excellence. Our Contracts, Manufacturing, Supply Chain Management, Engineering and Technology, and Cyber Councils, which include experts from across our businesses, meet regularly to share ideas and best practices, leverage resources, and create shared technologies and processes.