Exhibit 10.18

 

IAM

AGREEMENT

2004 - 2007

 

ARTICLE I - RECOGNITION

 

1 Chart Heat Exchangers (hereinafter referred to as the “Company”) recognizes
Local Lodge 2191 of District Lodge 66 of The International Association of
Machinists and Aerospace Workers, AFL-CIO (hereinafter referred to as the
“Union”) as the sole and exclusive bargaining agent for its employees at its La
Crosse, Wisconsin manufacturing facility for the purpose of collective
bargaining with respect to the wages, hours and working conditions of said
employees.

 

2 As used in this Agreement, the terms “employee” and “employees” shall include
all production and maintenance employees, including all craters, receiving
clerks and tool room employees, but shall exclude all administrative employees,
factory office clerical employees, engineers and technical employees, standards
and factory cost department employees, professional employees, guards, safety
inspectors, nurses, student trainees and all supervisory employees as defined in
the Labor Management Relations Act.

 

1

--------------------------------------------------------------------------------

3 Employees in the above excluded jobs are not covered by this Agreement; but if
employees currently in such jobs subsequently take other jobs within the
coverage of this Agreement, then such employees shall be eligible to membership
in the Union upon such notification to them by the Company.

 

4 This Agreement shall be binding on any and all successors and assigns, who by
purchase, lease, transfer of stock or merger, acquire control of the Company’s
manufacturing facility in La Crosse, Wisconsin.

 

ARTICLE II - UNION SECURITY

 

5 Employees eligible for Union membership as defined in this Agreement shall be
required at the expiration of their probationary period to become and remain
members of the Union in good standing with respect to the payment of uniformly
levied initiation fee and periodic dues as a condition of employment.

 

ARTICLE III – NON-DISCRIMINATION

 

6 The Company or the Union shall not discriminate against employees because of
color, race, sex, religious affiliation, nationality, age, handicap or status as
a disabled veteran or Vietnam era veteran, as prescribed by applicable state or
federal law. Pronouns in the male gender appearing in this Agreement are
intended to include the female gender.

 

2

--------------------------------------------------------------------------------

ARTICLE IV—HOURS

 

Regular Work Day and Week

 

7 Eight (8) hours shall constitute a regular day’s work and not more than forty
(40) hours shall constitute a regular week’s work. The regular workweek will
begin at 11:00 p.m. on Sunday and will end on Friday.

 

Shift Hours

 

8 The shifts may consist of one day and two night shifts. The regular working
hours are as follows:

 

   3rd Shift 11:00 P.M. to   7:00 A.M.

   1st Shift   7:00 A.M. to   3:00 P.M.

   2nd Shift  3:00 P.M. to  11:00 P.M.

 

   Third shift weekly start will be 11:00 P.M., Sunday.

 

9 Regular Lunch Periods.

 

   1st Shift 12:00 Noon

   2nd Shift  8:00 P.M.

   3rd Shift   4:00 A.M.

 

10 Employees shall also be provided during their shift one (1) rest period not
to exceed ten (10) minutes in accordance with operational requirements.
Normally, the break times will be as specified below:

 

   1st shift: 9:30 am to  9:40 am

   2nd shift: 5:30 pm to 5:40 pm

   3rd shift: 1:30 am to  1:40 am

 

3

--------------------------------------------------------------------------------

11 The consumption of food items and visits to the lunch room shall be limited
to designated lunch and break periods and will not be permitted during other
work hours. Beverages will be allowed at the workstations.

 

12 All employees are assigned to a three-shift basis and will have a paid
15-minute lunch period starting at one of the times listed above in this
paragraph.

 

ARTICLE V - OVERTIME

 

General

 

13 Union members will cooperate in working of necessary overtime; however, an
employee shall have the right to refuse to perform overtime work where the
Company is able to secure someone else who is experienced to perform the work.

 

14 An employee shall have the right to refuse to accept overtime work whenever
they have a reasonable excuse or where the length of time is so excessive so as
to endanger their health.

 

4

--------------------------------------------------------------------------------

15 It shall be the policy of the Company to ask for overtime before 12 o’clock
for the day shift - 9 o’clock for the second shift and the day before for the
third shift for daily overtime. In no event shall a first or second shift
employee be required to work Saturday when notification is given later than the
end of the employee’s Thursday shift nor where the Saturday shift is more than
five (5) hours. For first and second shift employees, the Company will schedule
consecutive 5-hour shifts on Saturday and/or Sunday except production needs
require another schedule. When two shifts are being scheduled, the first and
second shifts will be scheduled for the same number of hours. Third shift
employees will not be required to work Saturday when notification is given later
than the end of the employee’s Thursday shift. The normal Saturday or Sunday
shift for third shift employees is eight (8) consecutive hours. 3rd shift will
have the right to work five (5) hours starting on their regular Saturday and
Sunday shift. If a change in schedule is necessary, the Shop Committee will be
notified and given the reason for such deviation - this will be done before the
deviation whenever possible. 1st and 2nd shifts will have the right to work five
(5) hours starting on their regular Saturday and Sunday shift, since the regular
shift on weekends is five (5) hours.

 

5

--------------------------------------------------------------------------------

Overtime Premium

 

16 All hours worked in excess of eight (8) in a work day will be paid at one and
one-half (1 1/2) times the regular straight time hourly rate.

 

17 When an employee works hours prior to or after their normal shift they will
be paid overtime at time and one-half. The exception to this is when an employee
requests earlier starting and stopping time and the Management agrees, then the
Company is not obligated to pay overtime hours before or after their regularly
scheduled shift.

 

18 The Management has agreed to pay double time for all overtime hours worked
which exceed sixteen (16) hours in any one week with the understanding with the
Shop Committee that the Management has a right to replace the employee that is
working and has put in sixteen (16) hours overtime. The Management will make the
transfers in such cases. The Management will replace the employee with an
employee from within the department as follows:

 

  a. With an employee from the same department and shift.

 

6

--------------------------------------------------------------------------------

  b. If possible with an employee from the same department on another shift.

 

  c. Where employees for replacement are not available within the department,
employees capable of performing the work will be transferred in from other
Departments.

 

19 Hours worked on a day observed, as a holiday under this Agreement will be
included in such sixteen (16) hours under this paragraph.

 

Saturday and Holiday Pay

 

20 All Saturday work shall be paid for at the rate of one and one-half (1 1/2)
times the hourly rate including third shift Saturday work which starts at 11:00
p.m. on Friday. All work done on Sunday and legal holidays shall be paid for at
the rate of double time except where a regular third shift starts on a Sunday or
a holiday and then the regular working hours shall be compensated at the
applicable regular rate.

 

7

--------------------------------------------------------------------------------

Overtime Charging

 

21 An employee’s overtime record shall be credited with overtime when they are
asked whether they work or not. If the department works overtime, an absent
employee’s overtime record shall be charged with any overtime for which they
would have been eligible had they not been absent, including an employee on
vacation or sick leave.

 

22 An employee on a day-at-a-time vacation when overtime is scheduled but who
returns before the overtime is worked shall be asked for that overtime if such
employee is eligible and qualified. If such employee replaces another employee,
the employee being replaced is not charged for that overtime. An employee’s
absence on Thursday will not jeopardize that employee’s rights to weekend
overtime if they return to work on Friday. However, it will be the employee’s
responsibility to communicate with management no later than the start of the
lunch period of their Friday shift to determine if weekend overtime is
available.

 

23 Where the applicable rate of pay is time and one-half, the employee will be
charged with one and one-half hours overtime for each overtime hour.

 

24 Where the applicable rate of pay is double time, the employee will be charged
with two hours overtime for each overtime hour.

 

8

--------------------------------------------------------------------------------

25 An employee asked to work overtime after the deadlines defined in Paragraph
15, where the overtime is in a department or shift other than their own, will
not be charged with such overtime refused but will be charged if they work such
overtime.

 

26 An employee, who is asked to work additional overtime while working a weekend
overtime shift, will not be charged for such additional overtime if refused, but
will be charged if they work such additional overtime.

 

27 Telephone offers of overtime where management reaches the employee are
charged whether or not the overtime is worked. Where a message is left with
someone other than the employee, and the employee fails to work, the overtime
will not be charged. All work, or refusal of work, on a day observed as a
holiday under this Agreement is charged.

 

28 An employee who accepts an overtime assignment but fails to report for and
work such assignment without being excused by management will be recorded with
an unexcused absence.

 

29 No employee will be subject to an unexcused absence being recorded for an
overtime assignment missed due to hospitalization of the employee or death or
hospitalization of a member of the employee’s immediate family.

 

9

--------------------------------------------------------------------------------

30 When an employee is transferred to a different Department, they will get the
average overtime for that Department. When they are transferred back to their
Home Department, they will receive the overtime average of their Home
Department.

 

Overtime Distribution

 

31 The supervisor will keep daily records of all overtime worked by the
employees. In order that the overtime within the various departments is
distributed as evenly as possible, those with the least amount of overtime shall
be asked to work first among those qualified to do the work. It is recognized
that an employee may be qualified to do the overtime work without holding the
applicable job classification. If an employee is eligible for overtime but
declines the hours that are offered, the overtime may be offered to the next
qualified employee. The supervisor’s copy of the overtime record will be posted
at the supervisor’s desk and kept as current as possible. The names and work
centers, where applicable, of

 

10

--------------------------------------------------------------------------------

     those scheduled for weekend overtime work in the department and shift will
be displayed in the department area by the supervisor prior to the overtime work
to permit checking by employees so they may determine before the overtime is
worked if any errors in selection have been made. This information is to be used
by employees to point out any overtime assignment errors to the supervisor
before the overtime is worked, wherever possible. When an entire shift in a
department is scheduled for weekend work, a notice displayed to that effect need
not include names and work centers.

 

32 The Company will continue its practice of distributing overtime as equally as
possible on the shift in a department.

 

33 It is further agreed that the Company will maintain as close a balance of
overtime hours among the shifts within a department as production necessities
and individual skills allow.

 

Overtime Entitlement on Transfer or Probation

 

34 A transferred employee shall have to work five (5) days before they are
entitled to overtime. However, they may work if all other people in the
Department have been asked.

 

11

--------------------------------------------------------------------------------

35 Probationary employees will not be asked to work until all employees with
seniority working in the department and on the shift, including transferred
employees, have been asked to work; except that when all employees in the
department on all shifts who are qualified for the work involved have been asked
to work and more employees are needed, qualified probationary employees may be
asked.

 

ARTICLE VI - HOLIDAYS

 

Paid Holidays

 

36 All employees on the seniority list shall receive eight (8) hours pay at
their regular straight time hourly rate inclusive of shift premiums for the
following holidays: New Year’s Day, Good Friday, Memorial Day, Fourth of July,
Labor Day, Thanksgiving Day, day after Thanksgiving Day, December twenty-fourth,
Christmas Day and December thirty-first, providing the employee has worked a
major part of their last scheduled work day before and the major part of their
first scheduled work day after the holiday, providing such days are in the same
work week as the holiday; except where this work requirement is specifically
waived by the Company for reasons of personal urgency.

 

12

--------------------------------------------------------------------------------

37 When December twenty-fourth and December thirty-first fall on Saturday or
Sunday, the holidays will be observed on the preceding Friday. When any other
holiday listed above falls on Saturday, it will be observed on the preceding
Friday.

 

On Layoff and Sick or Military Leave

 

38 Employees who have been laid off in a reduction of force during the workweek
prior to or during the week in which the holiday falls shall receive pay for
such holiday.

 

39 In the event one of the paid holidays falls during an employee’s vacation,
they have the option of substituting the day(s) before or the day(s) after their
vacation for said holiday(s).

 

40 Employees who go on sick leave during the workweek prior to or during the
week in which the holiday falls shall receive pay for such holiday.

 

41 Employees who go on military leave during the first or second workweek prior
to or during the week in which the holiday falls shall receive pay for such
holiday.

 

13

--------------------------------------------------------------------------------

ARTICLE VII - OTHER PAY PROVISIONS

 

Call Back Pay

 

42 Any employee called back for work outside their regularly scheduled hours
shall receive not less than three (3) hours pay at their applicable rate.

 

Reporting Pay

 

43 When an employee reports for work and no work is available, they shall be
paid up to four (4) hours at their regular straight time rate for the time lost
during the first half of their shift unless they were notified in advance of the
starting time of their shift not to report for work. However, if stoppage of
work is due to fire, lightning, failure of power lines or other causes beyond
the Company’s control no payment for lost time shall be made.

 

44 An employee shall be notified not to report for work by either, the
supervisor of their department, the Human Resources Department or other
supervisory personnel, provided the employee has furnished the correct phone
number to the Company. If the correct phone number is not provided and the
employee cannot be contacted, no reporting pay will be paid.

 

14

--------------------------------------------------------------------------------

Time Lost Due to Injury

 

45 If it has been established that an injury to an employee has arisen out of
and in the course of their employment with the Company, and the employee is
instructed by the Company to receive outside treatment for the injury during the
current shift, they will be paid for time necessary to obtain such treatment. If
follow-up outside treatment is required which cannot be scheduled outside the
employee’s regular working hours, the employee will be paid up to three (3)
hours at their regular straight time hourly rate for time lost from their
regular working hours for any such follow-up visits.

 

46 In the event an employee is instructed by the Company to receive subsequent
outside treatment during their regular shift because of their inability to
continue work due to the original injury, they will be paid for time necessary
to obtain such treatment.

 

47 In any case in which an employee believes outside treatment for the injury is
necessary during their regular working hours even though the Company has refused
to instruct them to receive such outside treatment, the employee may at their
option leave work to receive outside treatment.

 

15

--------------------------------------------------------------------------------

     Should it be determined that the treatment was necessary in order the
employee continue work or if it is determined that they are unable to continue
work, the employee will be paid for the time lost from their regular working
hours in accordance with Paragraphs 45, 46, and 48.

 

48 If the employee loses time and the attending physician determines they are
physically unable to work the balance of the shift on which they received
outside treatment due to the severity of the injury, they shall be paid for the
balance of that regular shift, but not to exceed eight (8) regular hours, upon
furnishing proof of the physician’s determination. If an employee is injured
while working in the plant and such injury arises out of and in the course of
their employment, and the injury is of such nature as to prevent the employee’s
return to work for an initial period of three (3) or more consecutive calendar
days excluding Sunday or paid holiday or vacation following the day of injury,
then the Company will pay such employee a sum equal to the current sickness and
accident daily benefit rate for each of such three (3) days; provided however,
that such payment shall not be made if the Workmen’s Compensation carrier of the
Company is required to pay the employee Workmen’s Compensation for the three (3)
day period following the day of injury.

 

16

--------------------------------------------------------------------------------

49 Under the following circumstances the Company will pay for up to two and
one-half (2 1/2) hours for working time lost by an employee on Monday:

 

  a. An employee is injured at work on a Saturday and obtains outside treatment.

 

17

--------------------------------------------------------------------------------

  b. An injured employee is instructed by their doctor to report for medical
evaluation on the following Monday morning before going to work.

 

  c. The employee notifies their supervisor in advance that they won’t be in on
time.

 

  d. The employee reports for work on the Monday involved before 9:30 a.m.

 

Bereavement

 

50 An employee with seniority, who is working at the time, will be granted three
(3) regular working days off with pay in the event of a death in the employee’s
immediate family. Immediate family is defined as the employee’s wife, husband,
father, mother, son, daughter, brother, sister, father-in-law or mother-in-law.
An employee may take the time off with pay later than the day of death or
funeral if circumstances warrant and are a direct result of the death. An
employee with seniority, who is working at the time, will be granted one (1)
regular workday off with pay to attend the funeral of a grandparent or
grandchild of the employee.

 

18

--------------------------------------------------------------------------------

Jury Duty

 

51 An employee with seniority shall be excused from work on a work day on which
they are called to perform jury service in a court of record, provided they give
prior notice to the Company.

 

52 An employee with seniority who is excused from work for jury service and who
furnishes the Company with a statement from the court with regard to jury pay
received and time spent on jury service will be reimbursed by the Company as
follows:

 

  a. All employees will receive eight (8) hours pay at their regular straight
time rate including all applicable premium pay less the amount received as jury
pay for each day they are called to serve as a juror.

 

  b. A day of jury duty is defined as any day for which the employee is required
to appear regardless of having served, certified by written statement from the
court.

 

  c. Hourly rate of pay shall be limited to Sixty (60)workdays annually
commending with the first day of jury service paid.

 

19

--------------------------------------------------------------------------------

ARTICLE VIII - SENIORITY

 

53 It shall be the policy of the Company to recognize seniority. To accomplish
this, there shall be one seniority list covering all employees in all production
departments. Where two or more employees gain seniority on the same day, their
relative seniority shall be determined by last name alphabetical sequence with,
for example, an employee whose last name begins with “A” being regarded as
senior to one whose last name begins with “B”. Last name changes due to
marriage, etc., which occur after the day on which an employee gains seniority,
shall not affect seniority.

 

54 In the event that, before June 1, 1988, a person who, as of the effective
date of this agreement, is an employee of the Trane Company temporarily assigned
to ALBRAZE International (Chart Heat Exchangers) the ALBRAZE (Chart) seniority
date of said person will be January 5, 1986. Notwithstanding the provisions of
Paragraph 39, above, the relative seniority of employees whose ALBRAZE (Chart)
seniority date is January 5, 1986 shall be determined by the amount of Trane
Company seniority which they possessed as of the effective date of this
Agreement.

 

20

--------------------------------------------------------------------------------

Probationary Period

 

55 An employee shall have no seniority rights until the completion of their
probationary period. The probationary period shall consist of sixty (60) actual
days worked. This calculation does not include overtime outside the normal
schedule. The date given the employee for their seniority standing will be the
day following the end of their probationary period.

 

56 An employee shall lose their seniority rights for the following reasons:

 

  a. If they voluntarily terminate their employment with the Company.

 

  b. If they have been discharged for just cause.

 

  c. After being laid off, if an employee fails to report for work within five
(5) days after being notified through the Company Human Resources department.
Notification to return to work will be confirmed by certified letter to the
employee. However, no employee shall lose their seniority rights if their
failure to report is the result of sickness or causes beyond their control, in
which case the employee shall furnish written proof as to that fact.

 

21

--------------------------------------------------------------------------------

  d. If for any reason an employee has had twenty-four (24) consecutive months
of unemployment with the Company or a period equal to one-half ( 1/2) of their
seniority, whichever is greater.

 

Layoff

 

57 When it becomes necessary to reduce the working forces, the last employee on
the plant seniority list shall be the first employee laid off, etc., and the
last employee laid off shall be the first employee recalled, etc., except as
hereinafter provided. Before any layoffs or recalls of any employees occur, a
list of employees to be laid off or recalled will be presented to the Shop
Committee as to the employees laid off or recalled and the effect on seniority;
but this shall not in any way interfere with the right of the Company to reduce
its force.

 

Voluntary Layoff

 

58        a. Senior employees not affected by the layoff will be allowed to
volunteer to replace the most senior people on the layoff list. Employees
volunteering for layoff status are required to accept the layoff for two (2)
months unless the employees involved are recalled before that time.

 

22

--------------------------------------------------------------------------------

  b. An employee opting for and receiving voluntary status may exercise this
option one (1) time per calendar year.

 

  c. This voluntary layoff procedure will be administered through one (1) list
per layoff date. When an employee on a two (2) month voluntary layoff returns to
work, the junior employee will be laid off unless another senior employee has
signed the list for the specific layoff or until the list is exhausted.

 

  d. A new list will be used for each successive layoff date and the procedure
stated above will apply. The previous list will be cancelled at this time.
Employees not receiving voluntary layoff on previous lists will be allowed to
sign these new lists to determine the availability and opportunity for voluntary
layoff status.

 

  e. The Company retains the right to recall those on a voluntary layoff at any
time based on production needs or if the skills of the volunteer are required.
The Company also retains the right to deny voluntary layoff if the volunteer’s
skill is needed at the time of layoff.

 

23

--------------------------------------------------------------------------------

  f. The Company agrees to pay their share of all insurance premiums for any
employee on voluntary layoff. Also, the employee agrees to pay their share of
all insurance premiums. All other benefit restrictions will apply as for
employees on normal layoff. Insurance payments are due the first of the month of
applicable coverage.

 

Exemptions and Deviations From Layoff

 

59 All welders, electricians, and tool room employees are exempt from the
seniority clause as to layoff as long as they are needed on their exempted jobs.
It is understood that an exempted employee must have demonstrated the capability
to perform the required job. If the Company replaces an employee exempted in one
of the above jobs with an older qualified employee, the exempted employee will
be laid off.

 

24

--------------------------------------------------------------------------------

60 Deviations from straight plant seniority in addition to those listed above
can only be made for justifiable reasons, that is, when an employee’s
qualifications are essential on available work and no senior employee not
subject to layoff has the necessary qualifications. The Company will specify
such exemptions to the Shop Committee sufficiently in advance of the layoff
giving the specific reasons for such deviations in each case. The Company will
endeavor to find alternate qualified employees not subject to layoff for such
exempted employees to replace those so exempted. The Company will not be
required to make more than two transfers to replace one employee under this
paragraph.

 

61 The parties may discuss from time to time the problem of deviations from
seniority on layoff.

 

62 If the Union does not agree with certain exemptions, the Company and the Shop
Committee shall make every effort to resolve their differences before resorting
to the grievance procedure.

 

Layoff Notice

 

63 When layoffs, because of lack of work, are in accordance with straight
seniority, the employees affected shall be given five (5) working days

 

25

--------------------------------------------------------------------------------

     notice before being laid off for a period of two (2) weeks or more. It is
further agreed that in case of material shortages resulting from conditions
beyond the Company’s control, the five (5) days’ notice provision will be
waived. Employees exempted from layoff who are to be laid off because they are
no longer needed on the work for which they are exempted may be laid off without
notice. However, first and second shift exempted employees will work to the end
of the shift in which layoff notice is given. Paragraph 43 will apply to third
shift exempt employees who are to be laid off without notice.

 

One-Day Layoffs

 

64 Layoffs, due to lack of work or material shortages, will be made by seniority
in a department, provided such a layoff does not exceed eight (8) hours in any
one week. For any layoff in excess of eight (8) hours in any one-week, the
procedure set forth in Paragraphs 57-61 will be followed. This paragraph is not
intended to be used to establish a regular work week of less than five (5) days
for the employees in any department, and shall be applied in such a way that no
employee is affected in their department more than six (6) times nor more than
three (3) consecutive weeks in a twelve (12) month period. The Union Committee
will be notified in advance of any layoff under this paragraph.

 

26

--------------------------------------------------------------------------------

Inventory

 

65 In the event that production is interrupted due to the taking of inventory,
the parties will meet to discuss appropriate work assignments.

 

ARTICLE IX - TRANSFER

 

Requests for Transfer

 

66 All requests for permanent transfers by employees may be granted by the
mutual consent of the Shop Committee and Management. The selection of employees
shall be based upon the Job Selection Guidelines.

 

67 When an employee is granted a job or department transfer at their own request
they shall have a trial period of up to thirty (30) days. The exception to the
foregoing sentence is in cases where an extension of a trial period, due to
skills is requested by the Company or the Union, and such extension is agreed to
by the Company and the Union. they will receive the rate of the job they are
performing while on transfer if they are qualified. If it is decided to make the
transfer permanent, the employee will be given a rating for which they are
qualified.

 

  a. When such request is made, the Union and the employee and the supervisor
will receive a written notification.

 

27

--------------------------------------------------------------------------------

  b. In the event that an employee is accepted for training on a job with a
labor grade higher than their present job they shall, when they complete the
trial period, be paid the time and grade rate of the new job but not less than
their time and grade rate on their former job.

 

  c. In a posting requesting multiple employees for the same labor grade and
classification, the senior employee will not be paid less than the time and
grade rate of the junior employee(s).

 

Temporary/Forced Transfers

 

68 Employees will be considered as temporarily transferred until notified of
being forced to accept a permanent job or department transfer due to shortage of
work, material, manpower, etc. Said employee shall carry their present
classification and pay rate for a period not less than six (6) months. Employees
will receive the

 

28

--------------------------------------------------------------------------------

     rate of the job they are performing while on transfer if they are qualified
and if the rate is higher than their current rate. After six (6) months the
employee will be given a rating in the new department for which they are
qualified.

 

69 If, up to three (3) months from the employee’s date of forced transfer a
position opens up in their home department, the employee will have the option to
return to their home department, if they are qualified for the position.

 

Seniority Principle

 

70 It shall be the policy of the Company to follow the principle of seniority
whenever skill is not a consideration when moving transferred employees out and
returning employees to their home department. Employees will be transferred from
their home department by inverse seniority regardless of shift assignment
provided the remaining employees are qualified to perform the work.

 

71 When it is necessary to transfer employees and the position to be transferred
to is a job of a higher labor grade than in the department, employees are to be
transferred by seniority. Senior employees will be

 

29

--------------------------------------------------------------------------------

     offered said transfer prior to junior employees being forced to transfer,
provided the remaining employees are qualified to perform the work. Transferred
employees will be returned to their home department on the basis of seniority
whenever skill is not a consideration.

 

Exception for Union Representatives

 

72  a. A department steward or a member of the Shop Committee may be transferred
or farmed, by inverse seniority, from their home department, but not subject to
being replaced on their shift. This provision shall not be construed to give
extra seniority to such representative in the event of a layoff, nor to prevent
such Union Representative from exercising their seniority.

 

  b. In the event the selection of a safety steward is other than a department
steward, the language of paragraph #1 above will apply to said safety stewards.

 

30

--------------------------------------------------------------------------------

Calling Back Transferred Employees

 

73 When it is established that there is a need for additional personnel for ten
(10) working days or more in a Department, with employees out on transfer such
employees will be returned to their Home Department to fill the need in
accordance with Paragraph 51 unless such need is being met temporarily by an
employee with physical limitations who is unable to perform their normal duties.
Such needed employees will be returned to their home department as soon as
possible but not later than thirty (30) calendar days. Presence of a physically
limited employee in a Department will not result in a senior employee on
transfer losing their rate or job.

 

74 Except where production needs reasonably require otherwise, employees shall
not be placed in a department where employees are transferred out prior to
returning those on transferred back to their home department by seniority.

 

75 It is recognized that in order to use the work force efficiently and keep
people working in so far as possible, the company requires flexibility in
farming or transferring employees for a period of time, due to the reduction of
work in the Home Department, or their specific skill is needed in another
department, or because of the production need of another department. The farming
of an employee shall be by inverse seniority by shift, and will not exceed 15
working days.

 

31

--------------------------------------------------------------------------------

Wage Rate Handling

 

76 When an employee is transferred into a job classification they previously
carried, they shall receive the rate for that job retroactively, after
accumulating three (3) full days, provided such a rate is higher than they are
carrying. If they continue on the job for a period of six (6) months, their
short-term rate shall become their new classification.

 

Notice of Transfer

 

77 The Company will endeavor to give each employee a Notice to Report Form on
the day preceding the transfer or shift change by 12:00 P.M. (noon) on the first
shift, 9:00 P.M. on the second shift and 4:45 A.M. on the third shift.

 

New Technology, Product Transfer or Discontinuance

 

78 The Company and the Union agree that it is to both their mutual benefit and a
sound economic and social goal to utilize the most efficient machines,
processes, methods and/or materials. In this way, the Company will be able to
compete effectively in the market place and, thereby, provide economically
secure jobs for its employees.

 

32

--------------------------------------------------------------------------------

79 When the Company changes technology, transfers a product line or a portion
thereof from La Crosse, or discontinues the manufacture of a product line or
portion thereof at La Crosse, or merges two or more departments and as a result
of such action a department is dissolved or a major portion of the regular
employees in such department are no longer needed on their jobs, each employee
in the department whose job is abolished because of this action will be subject
to the following procedure:

 

  a. Prior to the implementation of any of the above, the Company will meet with
the Union to discuss the impact.

 

  b. The Company agrees to train displaced employees within a reasonable period
of time (6 months or less) for available positions.

 

  c. Employees in classifications and areas will be handled in a manner
consistent with marginal paragraph 67 of the agreement.

 

33

--------------------------------------------------------------------------------

New Department

 

80 A new department is created when a new product line is originally
manufactured in a separate plant area, and such department is assigned a new
department number. When a new department is created, the Company and the Union
will agree upon a procedure for the distribution of information regarding the
department and the minimum requirements therefore. The selection of the
employees will be made in accordance with Paragraphs 65 and 87 and the
provisions of Paragraph 66 shall also apply.

 

81 The Job Selection Guidelines will be the determining factor when making the
selection.

 

Upgrading

 

82        a. The Company will continue to upgrade employees to higher skilled
jobs where possible to do so. The fact that an employee is proficient on their
current job will not in itself be the cause to prevent their being upgraded to a
higher skilled job.

 

34

--------------------------------------------------------------------------------

  b. When a successful bidder is selected to report to the posted/notice job
they can be held up to thirty (30) days in their current job. If it is necessary
to hold the employee beyond the thirty (30) days, the employee will be
reimbursed for any monetary loss upon the successful completion of the
training/trial period for the new job.

 

Transfer to Lighter Work and Incapability

 

83 When a senior employee, who is at the time working, requests a transfer to
light work, or the Company determines that such an employee can no longer
perform their job due to advanced age, physical incapacity or is incapable of
performing their regular job, the Company and the Union will discuss the problem
with the intent of:

 

  a. Assigning them to available work which they are able to perform and which
needs to be performed, and

 

  b. Paying for such work at the wage rate of the job they would be performing.

 

84 It is understood that the above does not obligate the Company to make-work
for an employee or to assign an employee to work which they cannot perform
satisfactorily.

 

35

--------------------------------------------------------------------------------

Leaving or Returning to Bargaining Unit

 

85 Any member of the bargaining unit who has been promoted or transferred or is
promoted or transferred to a position outside the bargaining unit described to a
position outside the bargaining unit described in Article I shall maintain the
amount of seniority they had at the time of such promotion or transfer and will
not continue to accumulate seniority within the bargaining unit.

 

86 Should such employee request to return to the bargaining unit or should the
Company decide to return such employee to the bargaining unit, they will be
reinstated with the amount of seniority they maintained at the time of their
promotion or transfer. The Company agrees that it will not return employees to
the bargaining unit for the purpose of temporarily reducing the staff of
non-bargaining unit employees. When such employee returns to the bargaining
unit, their job and department assignment will be at the discretion of the
Company. The Union will be notified of the job and department assignment five
(5) days prior to such assignment wherever possible. However, they will not be
placed in a department where their

 

36

--------------------------------------------------------------------------------

     assignment would cause the transfer of a regular department employee then
working in the department or where there are employees out of such department on
transfer, or where there is not a need for them in the department for at least
ten (10) working days. Furthermore, upon return to the bargaining unit, such an
employee will be assigned a labor grade no higher than the highest they held in
the three-year period just prior to their promotion from the bargaining unit.

 

87 Nothing, however, contained in Paragraph 82 shall be construed as limiting
the Company’s right to discharge any employee promoted or transferred from the
bargaining unit for cause.

 

88 Should any employee who has been promoted or transferred from the bargaining
unit and then returned to the bargaining unit under the above procedures, be
subsequently again promoted or transferred from the bargaining unit, they will
lose all seniority status ion the bargaining unit on the date of such promotion
or transfer.

 

89 An initial temporary vacation replacement assignment of up to 3 months
outside the bargaining unit will not be counted toward the limitations of this
paragraph.

 

37

--------------------------------------------------------------------------------

Transfers Not Covered

 

90 All transfers not covered elsewhere in this Agreement shall be discussed with
the Shop Committee before such transfers are made.

 

ARTICLE X - SHIFT TRANSFERS

 

Voluntary Shift Exchange (up to 1 week)

 

91 Voluntary shift exchanges, which are approved by management, will be
permitted between two (2) employees in the same department on a temporary basis
(up to 1 week) if such exchange conforms to the Walsh-Healey Act and does not
cause overtime payments. No changes in night shift premium will be made for
either employee involved in temporary shift exchange under this paragraph.

 

92 For all voluntary shift exchanges, both employees must report to the
department and shift from which they intend to switch for a minimum of one (1)
week.

 

38

--------------------------------------------------------------------------------

Voluntary Shift Exchange (more than 1 week)

 

93 A request for an exchange of shifts - for up to one (1) year by two employees
in the same department will be permitted providing:

 

  a. Neither employee puts in more than eight (8) hours in a 24-hour period in
making the exchange, to conform with the Walsh-Healey Act.

 

  b. Neither of the employees making the exchange may do so more than three (3)
times within a year.

 

  c. The qualifications and experience of both employees are relatively equal.

 

94 Relatively equal is defined as:

 

  a. Two (2) employees who can perform similar job(s).

 

  b. An employee that is not from the department must be approved by the cell
leader(engineer) and department supervisor affected to determine what job(s)
they can perform or have working knowledge of before any trade with a Home
Department employee.

 

39

--------------------------------------------------------------------------------

  c. Such request must be in writing to the Company, signed by the employees
involved, specifying the duration of the voluntary shift exchange, with a copy
to the Union.

 

  d. With respect to this paragraph, all other provisions of this Agreement
shall apply.

 

  e. For all voluntary shift exchanges, both employees must report to the
department and shift from which they intend to switch for a minimum of one (1)
week.

 

Shift Preference

 

95 An employee upon attaining seniority may replace a junior employee in the
same skill on a different shift in the same department subject to the following:

 

  a. When an employee gains seniority they can be replaced by a senior employee.

 

  b. Where the senior employee is replacing an employee in the same or a lower
rated labor grade, the Company will in all instances where possible train a
replacement within three (3) months for the senior employee so that they will be
able to exercise their shift transfer. The training period will start within a
one (1) week period after the employee’s written request is acted on at the
regular meeting.

 

40

--------------------------------------------------------------------------------

  c. Employees shall have the right to change shifts under this Section no more
than (4) times within each calendar year.

 

Transfer to Night Shift

 

96 When it is necessary to transfer a first shift worker to the second or third
shift or a second shift worker to the third shift or the starting of a second or
third shift, the youngest employee by seniority in the Department capable of
doing the work involved shall be so transferred, unless a senior employee has
preference to be transferred to the shift involved.

 

ARTICLE XI - POSTED VACANCIES

 

97 Should a vacancy occur within the Department due to retirement, termination,
promotion, etc., the Company will discuss with the Union if said vacancy needs
to be filled.

 

  a. Employees from within the department where the opening is will be offered
said openings by seniority before moving to step #2 of this paragraph.

 

41

--------------------------------------------------------------------------------

  b. When a vacancy exists, the posting shall indicate the department, shift and
for information purposes only, an identification of the major department
functions(s), and a listing of typical labor grades in the department.

 

  c. If the posted vacancy is filled by an employee from the posted department
from another shift, this transfer may result in a vacancy on their shift, which
in that event will be posted. No further transfer or postings will be made.

 

  d. If the posted vacancy is not filled by someone from the posted department,
it may be filled by a bidder from another department.

 

  e. If an employee, after having received a posted vacancy, returns to their
home department, a second employee from the original list of bidders may be
selected to fill the vacancy.

 

  f. If an employee is selected for a posted vacancy and subsequently returns to
their Home Department at their own request, they shall be restricted from
bidding on another posting for a period of six (6) months from the date of
transfer to the posted vacancy.

 

42

--------------------------------------------------------------------------------

  g. Vacancies will be filled based on the Job Selection Guidelines established
and agreed to by the Union and Company.

 

  h. When additional personnel are required the Company will post a notice.

 

  i. The Company and Union will review notices prior to publication.

 

  j. When an employee is selected for a position and completes the training
period, said employee will be restricted from bidding on another posting or
notice for four (4) months. This is not intended to prevent an employee from
bidding on a higher skilled job during this four (4) month period.

 

ARTICLE XII - RULES AND REGULATIONS

 

98        a. Stealing or taking away of any Company property, including scrap
without the written permission of the Manager of Manufacturing or other
supervisory personnel is prohibited.

 

            b. Falsification by an employee of their own starting and stopping
time is prohibited.

 

43

--------------------------------------------------------------------------------

  c. Carelessness of an employee which contributes to the injury of a fellow
employee; any act of an employee which does or might contribute to the serious
injury of an employee, which includes fighting on Company property; or any
intentional act which results in the destruction, the defacing of Company
property, or the writing of indecent language, drawing obscene drawings on
cards, bulletin boards, walls, or any other part of the Company property, is
prohibited.

 

A VIOLATION OF ANY OF THE RULES a

THROUGH c WILL BE CAUSE FOR IMMEDIATE

DISCHARGE.

 

  d. Those employees who are capable of performing their assigned job
efficiently and capably, but who fail to do so, will receive a written warning,
a copy of which will be given to the Shop Committee. The employee will be given
at least thirty 30) days to show satisfactory improvement. If following receipt
of the written warning, the employee fails to show satisfactory improvement;
they will, not earlier than thirty(30) days and

 

44

--------------------------------------------------------------------------------

       not later than sixty (60) days following such receipt, be given a one (1)
week suspension. Where an employee’s previous service record has been good, the
length of suspension may be modified. If the employee receives a second written
warning within six (6) months of the beginning of their suspension, they will be
given at least thirty (30) additional days to show satisfactory improvement. If,
following receipt of the second written warning, the employee fails to show
satisfactory improvement, they may, not earlier than thirty (30) days and not
later than sixty (60) days following such receipt, be discharged. In all cases
under this rule, an employee’s previous Company service record shall be given
consideration before the discharge penalty is invoked. The time periods given in
this paragraph are understood to be periods “of working time”.

 

“Working Time” Defined

 

99 The phrase “working time” referred to in Article XI of this Agreement shall
include periods during which the employee is actually working,

 

45

--------------------------------------------------------------------------------

     vacations, time lost due to bona fide illness or injury, military training,
and a consecutive absence of six (6) months or more for any reason. Each period
of time three (3) months, one (1) year, etc. followed by “working time” will in
every case terminate no later than eighteen (18) months after the date it
begins.

 

  e. Insubordination.

 

  f. The refusal of any employee to obey the work orders of their immediate
supervisor(s) is prohibited.

 

  g. Extreme insubordination will be cause for discharge.

 

  h. Any employee who directly or indirectly willfully slows down or limits
production of himself or another employee, or machine, will have violated these
Rules.

 

100 ANY VIOLATION OF RULES d THROUGH h SHALL SUBJECT THE EMPLOYEE TO A ONE (1)
WEEK SUSPENSION WITHOUT PAY FOR THE FIRST VIOLATION AND DISCHARGE FOR THE SECOND
VIOLATION WITHIN A PERIOD OF ONE (1) YEAR OF WORKING TIME.

 

  i. The employees agree not to loaf during regular working hours.

 

46

--------------------------------------------------------------------------------

  j. Employees are prohibited from doing other than Company work during working
hours or using Company machinery, tools, equipment or materials for personal
use.

 

101 ANY VIOLATION OF RULES i OR j SHALL SUBJECT THE EMPLOYEE TO A ONE (1) WEEK
SUSPENSION WITHOUT PAY FOR THE FIRST VIOLATION. A SECOND VIOLATION WITHIN THREE
(3) MONTHS OF WORKING TIME OR THREE (3) VIOLATIONS WITHIN A YEAR OF WORKING TIME
WILL SUBJECT THE EMPLOYEE TO DISMISSAL.

 

  k. Employees shall be at their work at the designated starting and stopping
times. Washing up, except when designated by the supervisor or for safety or
hygienic purposes, shall be done after the designated stopping times.

 

  l. Employees shall observe designated starting and stopping times.

 

  m. Leaving the plant without permission.

 

102 FOR THE FIRST VIOLATION OF THE RULES k THOUGH m THE EMPLOYEE WILL BE SUBJECT
TO A WRITTEN WARNING. FOR A SECOND

 

47

--------------------------------------------------------------------------------

     OFFENSE WITHIN SIX (6) MONTHS OF WORKING TIME, THE EMPLOYEE WILL BE SUBJECT
TO SUSPENSION FOR ONE (1) WEEK. FOR A THIRD OFFENSE WITHIN ONE(1) YEAR OF
WORKING TIME, THE EMPLOYEE WILL BE SUBJECT TO DISCHARGE.

 

103 If an employee’s attendance record is good, permission to leave for personal
reasons will be granted by their supervisor provided the request is made not
later than one-half ( 1/2) hour after the beginning of their work shift.

 

104 It is agreed that the intent of this paragraph is to enable an employee with
a good attendance record to leave work to attend to pressing matters not readily
attended to outside their regular working hours. Any abuse of this intent by an
employee will be a violation of Rule m.

 

105 Permission to leave the plant shall be granted in cases of extreme emergency
(death, serious illness or accident in family, etc.). However, in such emergency
cases, the employee shall notify their supervisor or other company
representative before their departure.

 

48

--------------------------------------------------------------------------------

Reporting Absence

 

106 All employees must call into the Central Reporting System no later than ten
(10) minutes before the start of the employee’s shift when they are unable to
report for work, unless their absence has been approved in advance by their
supervisor. Employees calling into the Central Reporting System must clearly
give the reason for their absence and when they expect to return to work.

 

Excused Absence Defined

 

107 The following absences will be excused when approved by the Company and will
not be subject to the progressive discipline procedure:

 

  a. Jury duty, military duty, funeral leave, occupational illness/injury,
supervisory pre-approved leaves of absence, vacation, paid holidays, not
scheduled for work, Union business, sickness, and situations that are caused by
extenuating circumstances not preventable by the employee.

 

  b. Employee must provide medical proof acceptable to the Company upon
returning to work, if they have excessive absenteeism, as defined in Par. 108c.

 

49

--------------------------------------------------------------------------------

Unexcused Absence Defined

 

108 Unexcused absence is defined as:

 

  a. Failure to notify the Company before the absence or failure to notify the
Company in accordance with Paragraph 106, except where the employee furnishes
proof that it was impossible to give such required notice, the absence will be
excused.

 

  b. Absence, which is not excused by the Company even though it is reported on
time.

 

The following language will apply when an employee has reached the THIRD STEP of
the Unexcused Absence Discipline as defined in Paragraph 109 of the current
labor agreement

 

  c. An employee having an excessive absentee record must furnish proof
acceptable to the Company that their absence was the result of sickness or
causes beyond their control to be excused for such absence.

 

50

--------------------------------------------------------------------------------

Unexcused Absence - Discipline

 

109 Unexcused absences will be subject to the following schedule of discipline:

 

  Step 1: An unexcused absence for any violation for any regular workday will
result in a documented verbal warning to the employee for the first violation.

 

  Step 2: A second unexcused absence within a period of six (6) months from the
date of the first violation will result in a second documented verbal warning.

 

  Step 3: A third unexcused absence within a period of six (6) months from the
date of the second documented verbal warning will result in a written warning.

 

  Step 4: A fourth unexcused absence within a period of six (6) months from the
second documented verbal warning will result in a three (3) day suspension
without pay.

 

  Step 5: A fifth unexcused absence within a period of six (6) months from the
second documented verbal warning will result in a five (5) day suspension
without pay.

 

51

--------------------------------------------------------------------------------

  Step 6: A sixth unexcused absence within a period of one (1) year from the
second documented verbal warning will subject the employee to immediate
discharge.

 

MEDICAL DOCUMENTATION REQUIRED

 

110 Employees must obtain medical documentation from the attending physician,
when they are requesting an excused absence(s). The documentation must state
that it is medically necessary to be off work and must designate the date(s) the
employee is requesting to be excused and a return to work date. Medical
documentation that simply states that the employee was “seen and treated” will
not be accepted.

 

111 Medical documentation should not include a diagnosis or details of the
employee’s medical condition, unless the medical excuse is for work related
injury or illness. However, it is important to provide documentation regarding
any work limitations an employee may have upon return to work.

 

112 Documented medical appointments will be excused absences when notice is
given to the employee’s supervisor by the end of the shift prior to the day of
the appointment.

 

52

--------------------------------------------------------------------------------

113 Medical excuses will not be accepted that retroactively excuse absences
prior to the date the employee received medical care. If an employee cannot see
a doctor on the first day due to the illness and they see a doctor on the second
day, the previous sick day will be excused if acceptable documentation is
provided. In these cases, the doctor must specifically identify that due to
medical reasons, the employee was unable to work and missed the first day due to
illness. The employee must see the doctor on their own time.

 

114 The intent of these guidelines is to insure the information provided the
Company for excused time off is specific and necessary and is not intended to
diminish an employee’s potential excessive absentee record.

 

Consecutive regular working days of unexcused absence will be considered as a
separate violation.

 

115      a. Insubordination.

 

  b. The refusal of any employee to obey the work orders of their immediate
supervisor(s) is prohibited.

 

53

--------------------------------------------------------------------------------

  c. Extreme insubordination will be cause for discharge.

 

  d. Any employee who directly or indirectly willfully slows down or limits
production of himself or another employee, or machine, will have violated these
Rules and Regulations.

 

116 ANY VIOLATION OF THE RULES AND REGULATIONS a, OR d ABOVE SHALL SUBJECT THE
EMPLOYEE TO ONE (1) WEEK’S LAYOFF WITHOUT PAY FOR THE FIRST VIOLATION AND
DISCHARGE FOR THE SECOND VIOLATION WITHIN A PERIOD OF ONE (1) YEAR OF WORKING
TIME.

 

117      a. The employees agree not to loaf during regular working hours.

 

  b. Employees are prohibited from doing other than Company work during working
hours, and from using machinery, tools and equipment or Company materials for
personal use.

 

118 ANY VIOLATION OF THE RULES AND REGULATIONS a THROUGH b ABOVE SHALL SUBJECT
THE EMPLOYEE TO A ONE (1) WEEK’S LAYOFF WITHOUT PAY AND TWO (2) VIOLATIONS
WITHIN THREE (3) MONTHS OF WORKING TIME OR THREE (3) VIOLATIONS WITHIN A YEAR OF
WORKING TIME WILL SUBJECT THE EMPLOYEE TO DISMISSAL.

 

54

--------------------------------------------------------------------------------

119      a. Employees shall be at their work at the designated starting and
stopping times. Washing up except when designated by the supervisor or for
safety or hygienic purposes shall be done after the designated stopping times.

 

  b. Employees shall observe designated starting and stopping times.

 

  c. Leaving the plant without permission.

 

120 If an employee’s attendance record is good, permission to leave for personal
reasons will be granted by their supervisor provided the request is made not
later than one-half ( 1/2) hour after the beginning of their work shift.

 

121 It is agreed that the intent of this paragraph is to enable an employee with
a good attendance record to leave work to attend to pressing matters not readily
attended to outside their regular working hours. Any abuse of this intent by an
employee will be a violation of Rule c above.

 

55

--------------------------------------------------------------------------------

122 Permission shall be automatically granted in cases of extreme emergency
(death, serious illness or accident in family, etc.). However, in such emergency
cases, the employee shall notify their supervisor wherever possible before their
departure.

 

123 FOR THE FIRST VIOLATION OF THE RULES AND REGULATIONS a THOUGH c, ABOVE, THE
EMPLOYEE WILL BE SUBJECT TO A WRITTEN WARNING. FOR A SECOND OFFENSE WITHIN SIX
(6) MONTHS OF WORKING TIME, THE EMPLOYEE WILL BE SUBJECT TO SUSPENSION FOR ONE
(1) WEEK. FOR A THIRD OFFENSE WITHIN ONE (1) YEAR OF WORKING TIME, THE EMPLOYEE
WILL BE SUBJECT TO DISCHARGE.

 

Tardiness

 

124 If an employee is tardy, they will be excused provided they have a reason
for their tardiness acceptable to the Company. In deciding on the acceptability
of such reason, the Company will not act in an arbitrary manner.

 

125 An employee who has an unexcused tardy two (2) times or more will receive a
written warning slip from the Company. Receipt of three (3) warning slips within
one (1) year will subject an employee to a three (3) day disciplinary
suspension.

 

56

--------------------------------------------------------------------------------

126 Receipt of three (3) warning slips within six (6) months of the date of the
three (3) day suspension warning will result in a five (5) day suspension.

 

127 Receipt of three (3) warning slips within six (6) months of the five (5) day
suspension warning will subject the employee to immediate discharge.

 

Discipline or Discharge

 

128 When it is necessary to discipline or discharge an employee for just cause,
the Company will issue a written notification to the employee and to the Union
within four (4) working days after the Manager of Manufacturing or designated
Company representative has knowledge of the improper conduct or performance,
unless special investigation is required and the Union is so notified. A
disciplined or discharged employee must file a written grievance within five (5)
working days of the foregoing notification otherwise the discipline or discharge
will be final.

 

57

--------------------------------------------------------------------------------

When Union Representation is Required

 

129 If a Union employee is summoned into the office to answer a charge of
violating the rules and regulations, they shall have Union representation.

 

ARTICLE XIII

 

GRIEVANCE PROCEDURE AND ARBITRATION

GRIEVANCE PROCEDURE

 

Preamble

 

130 It is the conviction of the Parties that prompt and fair handling of
complaints of employees and charges of violation and provisions of this
Agreement will lead to more efficient operations and more harmonious relations
among the employees, the Union and the Company.

 

131 If order to be considered within the grievance procedure a complaint of an
employee or a charge of violation of this Agreement must be brought to the
attention of the Company within ten (10) calendar days of the event causing the
complaint or charge or within ten (10) calendar days after the date on which
such event should reasonably have become known.

 

58

--------------------------------------------------------------------------------

Step 1

 

132 A complaint by an employee not resolved above shall be discussed in an
attempt to resolve, by the employee and steward with the Supervisor within five
(5) regular working days following the initial meeting/discussion between the
employee and Supervisor.

 

133 If no resolution is met, the steward will present the matter to the Shop
Committee Chairman who will within five (5) regular working days, present the
written grievance and discuss the matter with the Supervisor and Human Resources
Representative.

 

134 The Supervisor or Human Resources Representative will forward their written
answer to the Shop Committee within five (5) regular working days after their
discussion.

 

135 It is understood that no settlement at Step 1 can establish a precedent for
future cases. It is further understood that no settlement at any Step of the
grievance procedure can be inconsistent with the provisions of this agreement.

 

59

--------------------------------------------------------------------------------

136 If the complaint or charge (herein after referred to as a “grievance”) is
not carried to Step 2 within five 5) working days from the time of the
supervisor or Human Resources Representative’s answer, it shall be considered
settled.

 

Step 2

 

137 In investigating a grievance and in discussing it with the supervisor, the
department steward or Shop Committee Chairperson will take only such time as is
reasonably necessary.

 

138 If the grievance is not settled in Step 1, the Union will present the
grievance to the Manager of Manufacturing within five (5) regular working days
after receipt of the Supervisor’s or Human Resources Representative’s answer. If
the grievance is not presented to the Manager of Manufacturing within the five
(5) regular working day time limit, it shall be considered settled.

 

139 Any grievance involving disciplinary time of or discharge may be initiated
by the Shop Committee directly at Step 2.

 

60

--------------------------------------------------------------------------------

140 Within ten (10) regular working days, after the grievance is presented to
the Manager of Manufacturing a meeting will be held between the Managers of
Manufacturing, a Human Resources Representative, and the Shop Committee. A
representative of the IAMAW may be present and participate in this meeting.

 

141 The Manager of Manufacturing will forward their written answer on the
grievance to the Shop Chairman within five (5) regular working days after the
Step 2 meeting.

 

Step 3

 

142 If no settlement is reached at Step 3, the following will apply:

 

143 If the grievance involves a potentially continuing liability to the Company,
a request for arbitration must be made within seen (7) working days following
receipt by the Union of the Company’s Step 2 answer. The IAMAW representative
must make such request in writing to the Manage of Manufacturing of the Company.
If no such request is made within the seven (7) regular working day time limit,
the grievance will be considered settled.

 

61

--------------------------------------------------------------------------------

144 If the grievance does not involve a potentially continuing liability to the
Company, a request for arbitration must be made within sixty (60) calendar days
following receipt by the Union of the Manager of Manufacturing’s Step 2 answer.
The IAMAW representative must make such request in writing to the Manager of
Manufacturing of the Company. If no such request is made within the sixty (60)
calendar day time limit, the grievance will be considered settled.

 

Monetary Adjustment Limitation

 

145 If any Step 1 settlement, grievance settlement, or arbitration decision
involves monetary adjustment, such adjustment shall be made effective on the
date the complaint or charge was presented to the supervisor at Step 1 or
directly initiated at Step 2 and shall not be made retroactive for any period
prior to said date.

 

Time Limits

 

146 The time limits set forth in the grievance procedure may be extended by
mutual agreement.

 

62

--------------------------------------------------------------------------------

ARBITRATION

 

Selection of Arbitrator

 

147 Following a request for arbitration, The Company and the Union shall jointly
request the Federal Mediation and Conciliation Service to submit a panel of
seven (7) arbitrators. Each party shall have thirty (30) calendar days to accept
or reject the first panel submitted. The thirty (30) calendar days may be
extended by mutual agreement between the parties. If such panel is rejected, the
parties shall immediately request a new panel, which must be used. Upon mutual
acceptance of the first panel or receipt of a second panel, as the case may be,
the company and the Union shall alternately strike a name from the panel until a
single name remains and that person shall be the arbitrator. The Company shall
first cross out a name on the first arbitration under this agreement and
thereafter on the odd-numbered arbitration’s. The Union shall cross out a name
on the second arbitration and thereafter on the even-numbered arbitration’s.

 

148 The cost of the panel of arbitrator’s will be done in the same manner as
stated above.

 

149 The Company will be responsible for the payment of the first arbitration and
each odd-numbered panel thereafter and the Union will be responsible for the
second arbitration panel and each even-numbered panel thereafter.

 

63

--------------------------------------------------------------------------------

Arbitration Arrangements

 

150 The arbitrator chosen shall be notified of their selection by the parties.
Expenses and charges by the arbitrator shall be borne equally by the Company and
the Union.

 

151 A date mutually satisfactory to the parties shall be agreed upon and the
dispute or grievance shall be submitted to the arbitrator.

 

General

 

152 A question raised by either party as to the arbitrability of a grievance
shall be subject to arbitration. The function of the arbitrator shall be of
judicial nature. The decision of the arbitrator will be final and binding upon
the parties, but they shall not have the power to add to, subtract from or
modify the terms of this Agreement and shall decide only the issues properly
before him. An arbitrable grievance must involve a question of interpretation or
application of the terms of this agreement. The decision of the arbitrator will
be complied with as soon as possible.

 

64

--------------------------------------------------------------------------------

Resolution of Grievances

 

153 The resolution of a grievance shall be recorded and signed by the parties.

 

ARTICLE XIV - UNION REPRESENTATIVES

 

General

 

154 The Union will inform the Company of the names of all Union officials
including stewards. The number of Union stewards may be adjusted by mutual
agreement of the Company and Union. It is agreed that no employee will be
discriminated against because of elected status in the Union.

 

155 The Company will agree to such arrangements as may be necessary for the Shop
Chairman and/or Union stewards to carry on their Union duties. Such arrangements
shall include permission for the Union representatives to leave their department
and go to any other department within the bargaining unit to investigate and/or
bring about a proper and expeditious disposition of a grievance or complaint.

 

156 The Company will pay the Shop Chairman and/or Union stewards for working
time lost in processing grievances, and joint Union-Company conferences.

 

65

--------------------------------------------------------------------------------

157 The view of the Company’s agreement above to compensate Union
representatives for working time lost, the Union agrees that such time will be
limited to that which is reasonably necessary to accomplish the Union duties
described above.

 

Absence for Union Business

 

158 Regular members of the Shop Committee who are to be absent on legitimate
business of the Union will be excused for such absence, providing advance
notification is given to their supervisor. Upon advance notice from a designated
officer of the Union to the Manager of Manufacturing or their designated
representatives, employees other than Union representatives will be excused from
work to perform legitimate Union business provided the number requested does not
interfere with production requirements.

 

159 Any time spent on Union business in accordance with this paragraph is
considered as time worked in qualifying for vacations, pension, profit sharing
and holidays. It is understood that the Union will not abuse this privilege.

 

66

--------------------------------------------------------------------------------

Pass Procedure

 

160 None of the department stewards nor representatives of the Union shall leave
their department, except on Company business until they have notified their
supervisor.

 

ARTICLE XV - LEAVE OF ABSENCE

 

General

 

161 An employee must receive permission through their supervisor for time off up
to one week. Any time off in excess of one week must be supported by a leave of
absence. It is understood that an employee shall not deliberately falsify
reasons for requesting a leave.

 

162 The privilege of leave of absence not to exceed (60) days in a year may be
granted to any employee if the application for such leave of absence is approved
by the Company and the Financial Secretary of the Union prior to the time off
requested. The Union will be notified of leaves approved by the Company. In case
of sick leaves and emergencies, prior approval is not necessary.

 

163 Extension of a leave of absence may be granted by the Company and the
Financial Secretary of the Union for good cause shown.

 

67

--------------------------------------------------------------------------------

164 Leave of absence not to exceed sixty (60) days in a year will be allowed for
up to two (2) employees total at any one time for personal reasons providing
such leaves of absence are approved in advance of the requested time off by the
Company and the Financial Secretary of the Union.

 

165 No employee will receive leave of absence for the purpose of trying another
job.

 

Public Office of Union Position

 

166 Leave of absence will be granted to an employee elected or appointed to
Public Office or elected or appointed to a Union position with the Local Lodge,
the IAMAW, or such other labor organization as the parties may mutually agree,
upon proper application of the Company. Such leave shall be granted for a period
of one year, and will be extended from year to year, but only for the same
purpose for which the leave was granted.

 

167 Notwithstanding the provisions of Paragraph 56, an employee elected or
appointed to Public Office may renew their leave from year to year for a period
equal to their total seniority with the Company, except that they will not
accrue seniority or service beyond a period equal to one-half their total
seniority when they went on leave.

 

68

--------------------------------------------------------------------------------

Educational Leave - Veteran

 

168 Leave of absence up to eighteen (18) cumulative months of such leave will be
granted upon request to a military service veteran for the purpose of furthering
their education providing they are eligible for such educational benefits under
applicable law and has submitted proof of enrollment in an institution
authorized to conduct such training.

 

169 Such leave of absence may be extended at the discretion of the Company for a
period of up to an additional eighteen (18) cumulative months of such leave
subject to the above conditions.

 

Returning From Leave

 

170 An employee who returns to work within the leave of absence shall be
reinstated according to their position on the seniority list at their former
rate of pay plus increases or minus decreases that may have become effective
during their absence, provided they give at least three (3) days notice of their
intention to return.

 

69

--------------------------------------------------------------------------------

Returning From Sick Leave

 

171 An employee must present to the Human Resource Department, documentation
acceptable to the Company for return from Sick Leave to full-time work at full
capacity or part-time work at limited capacity as denoted, if warranted by the
employee’s seniority standing and qualifications, will be offered an assignment
to return effective no later than the second regular working day following the
date of such presentation of medical approval. Failure to meet such offer
deadline will require the Company to pay the employee a sum equal to the current
sickness and accident daily benefit rate for each regular working day following
the date of presentation of such medical evidence and continuing until the date
such offer of work is made available to the employee.

 

Physical Exam Requirement

 

172 When an employee who is on a leave of absence for medical reasons
(non-industrial) desire to return to work, they may be required to take and pass
a physical examination to prove that they are capable of performing their
regular work or the equivalent thereof.

 

70

--------------------------------------------------------------------------------

ARTICLE XVI - JOB RATING

 

173 The Job Rating Committee shall consist of two (2) members of the Union, and
at least two (2) members of the Company. Continuity of experience in job rating
is intended so that proper administration of the plan will result. When a new
job develops, or the requirements of an old job changes the job content, the job
shall first be standardized as to methods of production, tooling and equipment
etc. Within thirty (30) calendar days after the job is standardized and is
functioning satisfactorily as to quality and quantity, the Job Rating Committee
will rate out the job. The Job Rating Committee will schedule its regular
meeting dates in advance on a monthly frequency. Based on the number and the
urgency of pending ratings, the parties may schedule an interim meeting by
mutual agreement.

 

Disagreement on Rating

 

174 In the event of a disagreement between the Company and Union members of the
Job Rating Committee on the job content of a new job or the job content change
of an existing job they

 

71

--------------------------------------------------------------------------------

   will conduct a floor review within thirty (30) calendar days. If, after the
floor review is completed, a disagreement still exists a grievance will be
filed. Any grievance over a job rating to be considered timely must be filed in
Step 3 of the grievance procedure within thirty (30) calendar days following the
floor review. Any settlement of such a grievance will be effective on the date
of the floor review.

 

Newly Created Job

 

175 On a newly-created job, no permanent assignment will be made until thirty
(30) days after the date of the Committee’s rating or the date the
Company-determined rate is put into affect, whichever is the earlier. If the
employee performing the job has a higher rate than that put into effect, they
may accept the lower rate for the job or, within the thirty (30) days, decide to
return to their previous job. However, the Company may retain them on the new
job at their current rate for a period of time adequate for training a
replacement.

 

72

--------------------------------------------------------------------------------

Effective Date - Grievance

 

176 Where a job is re-rated and the labor grade is increased, an employee
performing the job will receive the higher rate effective on the date of the
floor review, provided a timely grievance concerning the rating of the job was
presented to the Company and, provided they have completed the job progression.

 

177 In the event that the labor grade of a job is to be decreased, the parties
will meet to determine the appropriate means of handling the situation.

 

ARTICLE XVII - VACATION

 

178 The vacation period will run from January 1 through December 31 of each year
during the term of this Agreement. One week of vacation entitlement may be
carried over from one year to the next; however, each year’s vacation may not
exceed the annual entitlement plus 1 week carryover and then only if the
employee qualifying for and requesting such consideration meets the scheduling
requirements of Paragraph 186. Accident and Sickness weekly benefits will not be
paid for the same period as vacation except with advance Company approval.

 

73

--------------------------------------------------------------------------------

Vacation Entitlement

 

179 Years of Service as of January 1 Vacation Entitlement

 

1 but less than 4

  

2 weeks

4 but less than 8

  

2.5 weeks

8 but less than 12

  

3 weeks

12 but less than 16

  

3.5 weeks

16 or more

  

4 weeks

 

180 In the calendar year during which an employee reaches their 4th and 12th
anniversary date they shall be entitled to an additional  1/2 week of vacation.
With Company approval, said week may be taken up to one month prior to the
employee’s anniversary date.

 

Work Requirements

 

181 In order for an employee to qualify for a vacation in any vacation period
they must have worked at least six (6) months during the previous vacation
period. For the purpose only of calculating such work requirements, time lost
from work due to a compensable work-related injury during the vacation period in
which the injury occurs, will be considered as time worked.

 

182 An employee who has worked for the Company less than one year prior to
January 1 of a given year shall, upon reaching their first anniversary date,

 

74

--------------------------------------------------------------------------------

   become entitled to a two (2) week vacation during such year provided they
have worked at least six (6) of the twelve (12) months preceding their first
anniversary date. In the event that such employee’s anniversary date falls
between December 15 and December 31 their vacation may, with Company approval,
be scheduled to commence up to two (2) weeks prior to their first anniversary
date.

 

If Work Requirements Not met

 

183 An employee who, as of the beginning of a vacation period has one (1) or
more years’ service and has worked during the preceding year but does not meet
the six (6) months’ work requirement set forth in marginal Paragraph 182 above
shall not be entitled to a vacation during said vacation period. they shall,
instead, receive an in-lieu-of vacation payment based upon the following
formula:

 

   Years of Service # of Straight Time Earnings

   as of January 1 During Preceding Year

 

  1 but less than 4

   4%

  4 but less than 8

   5%

  8 but less than 12

   6%

12 but less than 16

   7%

16 or more

   8%

 

75

--------------------------------------------------------------------------------

Vacation Pay

 

184 An employee will be paid prior to their vacation of one week or more for the
appropriate number of hours to be taken at this regular rate subject to the
above requirements and appropriate advance scheduling. In order to receive
vacation pay in advance of their vacation, notification must be received by the
Company before 9:00 a.m. of the second Thursday, which precedes the week in
which their vacation is to be taken.

 

Scheduling Procedure

 

185 The procedure to be followed in scheduling vacations shall include the
following:

 

  a. The number of weeks of vacation eligibility is determined for each
department.

 

  b. Based on this number, the vacation quota(s) are established for the
departments. The Company follows the policy of allowing vacation weeks to be
taken between January 1 and December 31.

 

  c. During December of each year, employees are asked their vacation preference
for the coming vacation year. The principle of seniority in asking vacation
preference is followed within each department and shift, insofar as possible.

 

76

--------------------------------------------------------------------------------

  d. At Company option, operations may be shut down for vacation for up to four
(4) working days each year and vacation pay will be given to employees who elect
to take such time as vacation. Such days must be scheduled in conjunction with
Christmas, and/or New Year’s Day, and/or July 4 holidays.

 

  e. An employee may take a day at a time vacation up to their full entitlement
of such vacation.

 

  f. Seven (7) existing days of current vacation can be taken in  1/2 day
increments not to be coupled with personal business.

 

  g. Regular vacations plus day-at-a-time vacations on the last regular work day
prior to and the first regular work day after a holiday(s) and the Friday prior
to deer season cannot exceed the department or shift group established quota
plus 50%.

 

  h. Requests for day-at-a-time/half day vacations should be made no later than
ten (10) minutes before the start of their shift on the day requested. If an
employee is sick and calls in on time, they may specify that day as a day of
vacation to a maximum of their full entitlement.

 

77

--------------------------------------------------------------------------------

  i. The use of day-at-a-time/half day vacation cannot disrupt production
operations.

 

Pay in Lieu of Vacation

 

186 An employee who is quitting or retiring will be entitled to pro-rate
vacation pay based on the appropriate percentage for their length of service for
all regular straight time earnings from the beginning of the vacation period
until their termination if they satisfy the work requirements listed in
Paragraph 185 and if they gives the Company at least five (5) working days
notice of their intention to quit or retire.

 

187 Payment in lieu of vacation may be made to any employee for a vacation not
taken by the individual, if they are eligible for a vacation in accordance with
the above paragraphs, but has not actually worked ten (10) months during the
qualifying period. Upon an employee’s death, their beneficiary, as shown in the
Group Life Insurance Record, will be entitled to pro-rate vacation pay based on
the appropriate percentage for the employee’s length of service for all regular
straight-time earnings from the beginning of the vacation period until their
death.

 

78

--------------------------------------------------------------------------------

Return From Military Service

 

188 When an employee returns to work from a duly authorized leave of absence to
the armed services, their vacation rights will be determined as follows:

 

  a. If the employee returns to work between January 1st and June 30th
inclusive, they shall be entitled to full vacation rights for the vacation
period in which they return and must take their vacation.

 

  b. If the employee returns to work between July 1st and December 31st
inclusive, they shall be depending upon their years of service, entitled to 4%,
5%, 6%, or 8% of their regular straight time hourly earnings between July 1st
and December 31st in lieu of a vacation for the vacation year during which they
return.

 

  c. All time spent in the armed services which is supported by a duly
authorized leave of absence shall be considered the same as work time for
computing vacation rights for the vacation period which follows the vacation
period during which the employee returns to work.

 

79

--------------------------------------------------------------------------------

ARTICLE XVIII - WAGES

 

New Hire Rate and Progression

 

189 The new hire rate shall be in accordance with the Wage Rate Schedule below;
but, after consultation with the Shop Committee, the Company may employ
applicants with significant experience at a higher rate than the new hire rate.
Upon attaining seniority, an employee shall receive a seniority rate in
accordance with the annual rate schedules following this paragraph, (unless they
were employed at a higher rate) and be assigned a home department. The rate
increases for twelve (12) months, twenty-four (24) months, etc., shown on the
rate schedules below shall become effective once the employee in question has
actually worked fifty-two (52) calendar weeks, one hundred and four (104)
calendar weeks, etc. on the job in question. Layoffs of three (3) months or less
will be considered as time worked in the above stated time frames. (The above
applies to progression rates only).

 

80

--------------------------------------------------------------------------------

WAGES

 

190 Sickness and Accident (S&A)

 

   Short Term Disability

 

   Employees are eligible after completing their probation period.

 

191 Benefits to be paid at 50% of the weekly rate with a minimum benefit rate of
$300.00 and a maximum benefit rate of $350.00. Benefits are payable for up to
twenty-six (26) weeks.

 

192 Long Term Disability

 

   Long-term Disability benefits will be paid at 60% of employee’s monthly base
wage upon completion of the benefit waiting period. The benefit waiting period
will be 180 days of continuous disability. A period of disability will be
considered continuous even if the employee returns to work for up to a total of
30 days during the benefit waiting period. The benefit waiting period will be
extended by the number of days the employee temporarily returned to work.

 

193 Long-term Disability benefits will continue until the earlier of the
following dates: date the employee ceases to be disabled; or the date of the
employee’s normal retirement to receive full Social Security Benefits as stated
by the Social Security Administration.

 

81

--------------------------------------------------------------------------------

194 Effective February 7, 2004, the Company will increase all levels of the
progression rates for each job as follows:

 

Effective 2/7/04

   $ .40

Effective 2/5/05

   $ .55

Effective 2/4/06

   $ .40

 

401K SAVINGS PLAN

 

195 401K match will be 25% up to the first 6% of employee’s base wage saved.

 

196 The 401K match will be made on the employee’s annual base wage except for
exclusions noted in subparagraph i of paragraph 200 – Compensation Excluded for
Profit Sharing and 401K match.

 

197 The Company agrees to discuss all 401K-plan amendments or plan terminations
with the Union prior to the implementation of such plan amendments or
termination of plan benefits.

 

PROFIT SHARING

 

198 Profit sharing for the Chart personnel shall be on the following basis, for
2004 – 2007.

 

  a. 10% common pool for all Chart employees.

 

  b. Minimum EBIT for profit sharing.

 

2,000,000 each year for the duration of the agreement.

 

82

--------------------------------------------------------------------------------

199 Distribution of EBIT Profit Sharing Pool

 

  a. The profit sharing distribution will be made as a % of individual annual
base wages except for exclusions noted in sub-paragraph i.

 

83

--------------------------------------------------------------------------------

  b. The base wage distribution % is determined as follows;

 

     Base Wage Profit Sharing % =

 

EBIT Pool $

--------------------------------------------------------------------------------

           

Total Chart Annual

           

Base Wage Payroll

           

 

  c. Actual distribution will occur in August of the current year and February
of the following year for current year profit sharing. The August distribution
will be 50% of the estimated common EBIT profit sharing pool based on mid-year
EBIT. The reason for a reduced distribution at mid-year is to allow for possible
variations in profit in the last half of the year.

 

  d. Profit sharing will be a 100% distribution of the Common EBIT Pool as a %
of base wage.

 

  e. The Profit Sharing Payment Schedule will be as follows;

 

     2004    Pool    $    August    2004    February    2005

     2005    Pool    $    August    2005    February    2006

     2006    Pool    $    August    2006    February    2007

 

84

--------------------------------------------------------------------------------

COMPENSATION BASIS FOR PROFIT SHARING

 

  f. Partial Year Distribution

 

     It is agreed that those individuals who retired during a current year would
receive a pro-rata distribution based on that current year’s base wages earned.
The same will also apply to individuals who left the hourly work force during
the duration of this agreement. For employees terminated for disciplinary
reasons, no pro-rata distribution will be made.

 

Probationary Employees

 

  g. Probationary employees will be paid profit sharing on a pro-rata basis for
base wages earned in a given year. Payment will be made after the probationary
employee achieves seniority.

 

  h. Determination of base wages will be based on wages from the start date.

 

Compensation Excluded for Profit Sharing and 401k Match

 

  i. Compensation excluded from the wage base for purposes of calculating profit
sharing and 401k Match are:

 

Overtime

Service Trip Premium

S&A Benefits

Worker’s Compensation

Profit Sharing

 

200 All other compensation is included in the wage base for determination of
profit sharing AND 401k Match.

 

85

--------------------------------------------------------------------------------

Shift Premiums

 

201 The second shift shall receive thirty-five ($.35) cents per hour over the
day shift and the third shift shall receive forty ($.40) cents per hour over the
day shift.

 

Apprenticeship Program

 

202 The Apprenticeship Committee shall consist of two from the Company and two
from the Union.

 

203 One representative of the Union will be from the Apprenticeship category
required; the second representative shall be the Local Lodge President or a
designated appointee.

 

204 Before any changes are implemented in the Apprenticeship Program, the
Company and the Union Shop Committee will discuss such change.

 

ARTICLE XIX - CHECK-OFF

 

205 Upon receipt of a signed authorization of the employee involved, the Company
shall deduct from the employee’s pay the initiation fee and regular monthly dues
payable by them to the Union during the period provided for in said
authorization. The amount will be certified by the Financial Secretary of the
Local Lodge.

 

86

--------------------------------------------------------------------------------

206 Deductions shall be made on account of the initiation fee and regular
monthly dues payable from the first paycheck of the employee after receipt of
the authorization and monthly thereafter from the second paycheck of the
employee in each month.

 

207 Deductions provided in Paragraphs 206 and 207 shall be remitted to the
Financial Secretary of the Union no later than the fifth (5th) day following the
deduction and shall include all amounts due and those dues not deducted in the
previous month. The Company shall furnish the Financial Secretary of the Union,
monthly, with an alphabetical record of those for whom deductions have been made
and the amounts of the deduction.

 

208 The parties agree that check-off authorizations shall be in the following
form:

 

209 “Name of Employee

 

   

 

--------------------------------------------------------------------------------

   

Dept. No.

 

 

--------------------------------------------------------------------------------

   

Clock No.

 

 

--------------------------------------------------------------------------------

   

Date

 

 

--------------------------------------------------------------------------------

 

210 I hereby authorize and direct the Company to deduct from my pay beginning
with the current month, the initiation fee and regular monthly membership dues
in the IAMAW.

 

211 I submit this authorization with the understanding that it will be effective
and irrevocable for a period of one (1) year from this date, or up to the
termination date of the current collective bargaining agreement between the
Company and the IAMAW, whichever occurs sooner.

 

87

--------------------------------------------------------------------------------

212 This authorization shall continue in full force and effect for yearly
periods beyond the irrevocable period set forth above unless revoked by me
within fifteen (15) days prior to the end of any such period. I shall also have
the right to revoke this authorization at any time within a period of fifteen
(15) days prior to the termination date of any collective bargaining agreement
between the Company and the Union if such termination shall occur within one of
the aforenoted yearly periods. Such revocation shall be effected by written
notice, sent by Registered Mail, Return Receipt Requested, to the Company and
the Union within such fifteen (15) day period.

 

Signature:

”.

--------------------------------------------------------------------------------

 

88

--------------------------------------------------------------------------------

213 The Union agrees to indemnify and save the Company harmless against any and
all claims, demands, suits or other forms of liability that may arise out of, or
by reason of, action taken or not taken by the Company in complying with the
provisions of this Article, in reliance upon the Check-Off Authorizations which
have been furnished it.

 

ARTICLE XX

 

CLAUSES RELATING TO PENSION PLAN

 

Section I: Chart Pension Plan

 

214 Subject to the provisions of Section 4 of this Article, and unless the
parties otherwise agree, the Pension Plan for Hourly Rated Employees of Chart
Heat Exchangers (hereinafter referred to as the “Pension Plan”) which was
effective January 4, 1986, will continue to be maintained pursuant to the terms
of the Pension Plan, except that the Pension Plan will be frozen and no further
contributions shall be made to the Pension Plan after March 31, 1998. The
Company may continue to make such changes in

 

89

--------------------------------------------------------------------------------

   the Pension Plan as, in the opinion of the Company, are required for
compliance with the Employer Retirement Income Security Act of 1974, as amended,
and any rules and regulations promulgated thereunder (hereinafter collectively
referred to as the “Act”), provided that if any such changes diminish benefits
under the Pension Plan, the Company shall attempt to minimize such effect.

 

215 To be effective, written notice of proposed change(s) must be served by one
party upon the other no less than sixty (60) days prior to any modification or
change in the Pension Plan, except such as may be required to conform with the
Act or Section 401(a) of the Internal Revenue Code of 1954, shall be prospective
in its application and shall be made effective as of the date on which agreement
with respect to such modification or change is reached by the Company and the
Union.

 

Section II: Funding of Benefits

 

216 The Company will continue to make contributions to the Chart Pension Plan to
fund obligations for past service credit.

 

217 Neither the Company nor the Union, except under the conditions specified in
Paragraph 151 of this section, shall demand any change in the Pension Plan nor
shall either be requested to bargain with respect to any change in the Pension
Plan, nor during the term of the Pension Plan, nor shall any modification,
alteration, or amendment of said Pension Plan, be an objective of, or reason
for, any strike or lockout or other exercise of economic force or threat by
either the Union or the Company.

 

90

--------------------------------------------------------------------------------

Section 3: Agreement Retirement Date

 

218 The normal retirement date of each employee will be the first day of the
month following the month in which the employee’s 65th birthday occurs. An
employee who retires after their normal retirement date shall receive a
retirement pension, payable commencing at their actual retirement date,
consisting of the following:

 

  a. An amount determined as if they had retired on their normal retirement
date; plus

 

  b. For service accrued after their normal retirement date, an amount
determined in accordance with the respective benefit rates in effect for each
year or portion thereof in which such service was accrued.

 

Other

 

219 Retirement Death Benefit

 

   For those employees retiring after February 4, 2001, the retiree death
benefit is $5,000.

 

220 Medicare Plan “B” Supplement

 

   Actual cost up to a maximum of $55.00/month, life of agreement.

 

91

--------------------------------------------------------------------------------

IAM NATIONAL PENSION FUND - NATIONAL PENSION PLAN

 

221      a. The Employer shall contribute to the I.A.M. National Pension Fund,
National Pension Plan as shown below for each hour for which employees in all
job classifications covered by this Agreement are entitled to receive pay under
this Agreement as follows:

 

$.60 per hour effective February 7, 2004

$.65 per hour effective February 5, 2005

$.70 per hour effective February 4, 2006

 

  b. The Employer shall continue contributions based on a forty (40) hour work
week while an employee is off work and being compensated for any such time by
the employer.

 

  c. Contributions for a full-time employee are payable from the first day of
employment.

 

  d. The I.A.M. Lodge and the Employer adopt and agree to be bound by, and
hereby assent to, the Trust Agreement, dated May 1, 1960, as amended, creating
the I.A.M. National Pension Fund and the Plan rules adopted by the Trustees of
the I.A.M. National Pension Fund in establishing and administering the foregoing
Plan pursuant to the said Trust Agreement, as currently in effect and as the
Trust and Plan may be amended from time to time.

 

92

--------------------------------------------------------------------------------

  e. The parties acknowledge that the Trustees of the I.A.M. National Pension
Fund may terminate the participation of the employees and the Employer in the
Plan if the successor collective bargaining agreement fails to renew the
provisions of this pension Article or reduces the Contribution Rate. The parties
may increase the Contribution Rate and/or add job classifications or categories
of hours for which contributions are payable.

 

93

--------------------------------------------------------------------------------

  f. This Article contains the entire agreement between the parties regarding
pensions and retirement under this Plan and any contrary provision in this
Agreement shall be void. No oral or written modification of this Agreement shall
be binding upon the Trustees of the I.A.M. National Pension Fund. No grievance
procedure, settlement or arbitration decision with respect to the obligation to
contribute shall be binding upon the Trustees of the said Pension Fund.

 

HEALTH INSURANCE (HEALTH AND DENTAL INSURANCE)

 

222 The Company will offer individuals retiring after December 21, 1990, the
opportunity to participate in the Chart Heat Exchangers Health Care Plan for an
additional 18 months beyond the 18 month period allowed by COBRA (Consolidated
Omnibus Budget Reconciliation Act), by paying 100% of the premium cost for
coverage of similarly situated individuals. This applies to individuals retiring
at age 62 or later. This offer is effective from December 21, 1990 through
February 3, 2007 on a non-precedent setting basis. Actual cost of this plan may
change on a year-to-year basis as determined by the health care provider. This
provision is no longer applicable when an individual reaches age 65 or is
eligible for Medicare.

 

223 Cost experience and impact of this group on Health Insurance costs is to be
followed.

 

94

--------------------------------------------------------------------------------

Section 4: Effective Date

 

224 Any modification agreed upon between the parties under Section 1, Paragraph
215 of this Article, resulting from negotiations commenced as a result of the
sixty (60) day notice referred to therein shall take effect on the day after the
Pension Plan expiration date which was in effect at the time the sixty (60) day
notice was given.

 

ARTICLE XXI - INSURANCE

 

BOOKLET

 

225 The new Health Insurance Booklet will be distributed to the membership
within one (1) month from the date of receipt by the Company.

 

226 The Company will maintain an employee assistance program, which is mutually
acceptable to the Company and the Union.

 

Insurance Committee

 

227 The insurance committee shall consist of two (2) representatives of the
Company and two (2) representatives of the Union. The Union President or IAMAW
representative or their representative may attend meetings at any time.

 

228 This committee shall have the necessary time needed to provide Alternative
Health Plans annually and the Company shall pay the time spent. Union Committee
representatives shall have the time spent on this committee applied as hours
worked on their shift for each day needed to investigate Alternative Plans.

 

95

--------------------------------------------------------------------------------

Duties of Insurance Committee

 

229      a. The insurance committee shall meet every three (3) months and the
agenda shall be established prior to the date of the meeting. A representative
of the insurance carrier shall be asked to attend the meetings.

 

   b. The insurance committee shall be authorized to review all financial
aspects of the insurance plan and be furnished complete expenditure and benefit
data.

 

   c. Members of the insurance committee shall be authorized to inquire on the
status of any claim submitted by any member of the Union.

 

General

 

230      a. The group insurance coverage will terminate on February 3, 2007.

 

   b. There shall be no modification in the benefits provided under the
insurance plans during the policy term except as mutually agreed by the parties
or required by law. Any dividend paid on the insurance policy shall be paid in
full to the Company.

 

   c. In the event the insurance carrier does not pay full benefit as prescribed
in the master policy without justifiable reasons, Chart Heat Exchangers shall
further process the claim on behalf of the employee with the insurance carrier.

 

96

--------------------------------------------------------------------------------

   d. If an employee’s insurance terminates due to temporary layoff or leave of
absence, such employees shall be eligible for insurance on the date of return to
full time work.

 

   e. If an employee is not At Work on the date the insurance would otherwise
become effective, such effective date of insurance shall be the first day the
employee returns to active work. However, the insurance will become effective as
if the employee was At Work if such employee is off work due to vacation or
holiday.

 

   f. Alternative Health Plans (HMO’s, POS, PPO plans etc.) will be provided
annually in a similar form or one that has the same benefits as the current
plans. During the life of the agreement, the Insurance Committee will evaluate
other Alternative Health Plans for 2005, 2006 and 2007.

 

   g. Should alternate company health insurance plans become available, the
Company and Union will meet to discuss the opportunity to participate in such
plans.

 

   h. The Company and Union agree that the Section 125 Plan is in effect for the
duration of this agreement.

 

97

--------------------------------------------------------------------------------

Health and Dental Insurance Cost Sharing

 

Effective January 1, 2004

 

231      a. Chart Basic

 

     Employee shares 10% of future premium increases or decreases for life of
agreement.

 

   b. Chart Plus

 

     Employee shares 20% of future premium increases or decreases for life of
agreement.

 

   c. Alternative Health Plans (HMO’s, POS, PPO plans, etc)

 

     Employee shares 30% of future premium increases or decreases for life of
agreement.

 

Effective January 1, 2005

 

232      a. Chart Basic

 

     Employee shares 20% of current total premium during the term of this
agreement.

 

   b. Chart Plus

 

     Employee shares 20% of current total Chart Basic premium plus 100% of the
premium difference between Chart Basic and Chart Plus during the term of this
agreement.

 

98

--------------------------------------------------------------------------------

  c. Alternative Health Plans (HMO’s, POS, PPO plans, etc)

 

     Employee shares 20% of current total Chart Basic premium plus 100% of the
premium difference between Chart Basic and the alternative plan during the term
of this agreement.

 

233 Employees who can provide proof of other medical plan coverage may opt out
of Chart plans or HMO and receive a payment during the course of the plan year.
The payment may be taken as either cash, which is taxable, or placed on a
pre-tax basis in a flexible spending account in the employee’s name. The payment
for each year is as follows:

 

1st Year

   -    $ 1,500.00

2nd Year

   -    $ 1,500.00

3rd Year

   -    $ 1,500.00

 

   Payout will occur on a monthly basis

 

(Ex: 12 mos X $125.00 = $1,500.00)

 

234 Dental

 

  a. Employee shares 20% of premium increases for the remainder of 2004 calendar
year.

 

  b. Employee shares 32% of total premium effective January 1, 2005.

 

  c. Employee shares 50% of total premium effective January 1, 2006.

 

99

--------------------------------------------------------------------------------

235 Life Insurance

 

  a. For the life of the agreement employees will be insured to a minimum of
$23,000 or a maximum of one times annual base wage, whichever is greater.

 

  b. Employees may purchase up to three times base wage (minimum $23,000)

 

ARTICLE XXII - COMPANY OWNED TOOLS

 

236 In an effort to provide safer and more effective production equipment, the
Company and the Union, do hereby agree to the following:

 

237 The Company shall loan to each employee, at no cost to him, a set of tools
and tool container with lock (where needed) adequate for the proper and
efficient performance of their duties subject to the following conditions:

 

  a. The Company shall determine what tools are required for each job, and shall
list against each job the normal tools required for it. Any tools which are to
be required at the worker’s expense shall be listed accordingly.

 

  b. The Company shall replace worn tools, which are broken through normal use
at no cost to the worker.

 

100

--------------------------------------------------------------------------------

  c. The Company shall indelibly mark each tool and tool container so that it
may be identified to the individual worker.

 

  d. The Company shall, through its supervisor, make such inspections of the
tools and tool containers used by each worker as may be required. All
inspections of the tools and tool containers shall be done in the presence of
the employee to whom they are charged. No tool container shall be opened during
the absence of the employee to whom they are charged. When inspection is being
made in search of a missing tool, it shall be done in the presence of an
authorized Union steward.

 

  e. Each worker shall maintain a complete set of tools at all times and shall
report any and all tools or tool containers missing, lost, or stolen from their
set to their supervisor for replacement immediately.

 

  f. Each worker shall reimburse the Company for replacement of Company tools or
tool containers lost or stolen while charged to him. If payment is not made in
cash to the crib clerk, the amount for which the worker is charged shall be
deducted from their paycheck. If the cost is more than three dollars ($3.00),
deduction can be made from more than one paycheck. If the missing, lost or
stolen tool is recovered in good condition, suitable adjustment shall be made to
the worker. In the event that a toolbox equipped with tools is missing, lost or
stolen, the Company will be responsible for the cost of such equipped toolbox.

 

  g. A worker shall only use personally owned tools when authorized by their
supervisor.

 

101

--------------------------------------------------------------------------------

  h. Any improperly identified tools found in a worker’s possession shall be
removed and placed in the tool crib.

 

  i. Any tools or tool containers with identification markings found in any
improper area shall be returned to the worker to whom they are then charged.

 

238 Any employee leaving the employment of the Company shall satisfy their tool
account before receiving their final pay.

 

Safety Creed

 

239 “One must not believe the SAFETY begins with your fellow employees, it
begins with YOU! The Safety Program can do everything possible to protect you
and your fellow employees, but if YOU disregard SAFETY, you not only endanger
yourself, but those around you. SAFETY must be practiced twenty-four hours a
day, as an accident requires less than one second to happen. That “second” may
mean a costly and permanent injury to yourself or to a fellow employee, which
you will think about for the rest of your life. It is far easier to live with
SAFETY than the results of a careless “accident”.

 

102

--------------------------------------------------------------------------------

ARTICLE XXIII - ACCIDENT PREVENTION

 

Safety Committee

 

240 The Safety Committee shall consist of the Shop Chairman, Health and Safety
Coordinator, Safety Technician, Safety Steward, and other designated hourly and
salaried representatives.

 

Function of Safety Organization

 

241 The function of the Safety Committee shall be to cooperate in reducing
accidents by:

 

  a. Reporting of hazards and unsafe practices from their respective
departments.

 

  b. Bringing about the cooperation of all employees both Union and Management
to carry out the safety program.

 

Safety Problems

 

242 If a safety problem arises in the department, the steward will call it to
the attention of the Supervisor. Should the safety problem still not be solved
within a reasonable period of time, the steward may call the Shop Chairman to
investigate the problem. The Shop Chairman may discuss the problem with the
Health and Safety Coordinator. If the problem still exists, it shall be placed
on the agenda of the next regular Safety Committee meeting. If the problem
exists following consideration by the Safety Committee, the Union may call in an
outside expert to review the problem and discuss it with the Shop committee and
the Company with the objective of obtaining a mutually satisfactory solution.

 

103

--------------------------------------------------------------------------------

Safety Committee

 

243 The duties of the Safety Committee shall be:

 

  a. To meet at least once during each month to consider and, if appropriate,
implement safety recommendations of the Safety Committee or others.

 

  b. To participate on inspection teams that will make monthly inspection tours
of the plant. The inspection team will consist of members of the Safety
Committee or designated representatives.

 

  c. To investigate reports of hazards and unsafe practices and effect
correction. Reports made by the inspection team and any other reports from the
Safety Committee will be reviewed at the monthly safety meeting and any unsafe
conditions or practices will be called to the attention of the supervisor of the
department involved. Every reasonable effort will be made to have the unsafe
condition or practice corrected promptly.

 

  d. Upon the request of the Shop Chairman or their designated representative
where evidence exists that a chemical or substance to which an employee is
exposed in the workplace may be toxic and hazardous, the Company will provide
the Union and the employee with the Company’s safety data sheets or their
equivalent, including information about any available remedies and antidotes for
such materials.

 

104

--------------------------------------------------------------------------------

  e. In case of a serious injury to an employee, the Safety Technician and the
Health & Safety Coordinator will be notified promptly so that they can
investigate the accident.

 

  f. In the event of a disagreement as to the liability of the Company in the
case of an injury of an employee, the Manager of Manufacturing will, upon
request, review the pertinent facts of the case with the Shop Chairman. The
Company agrees to pay for the time lost by the Shop Chairman from regular
working hours for such review with the understanding that this privilege will
not be abused. No such review will be made if the case is given to an attorney.

 

  g. The Safety Steward will be permitted to carry out their duties relating to
safety and health.

 

  h. The Safety Committee is responsible for making proper decisions on Safety,
consistent with established safety practices.

 

  i. The Company will be responsible for any and all discipline resulting from
any safety violation.

 

105

--------------------------------------------------------------------------------

Safety Cooperation

 

244 The Safety Committee realizes that a safe plant is an efficient one and will
devote its energies to this accomplishment. In order to carry out this program,
the Safety Committee will need 100% cooperation of all employees of Chart Heat
Exchangers. The committee encourages the making of suggestions.

 

245 The Union and employees agree that they will cooperate in promoting safety
and health programs and will comply with all safety rules and regulations and to
use safety equipment as required by OSHA and the Company.

 

246 The general rules of safety must be observed. Failure to do so will incur
the penalties as set forth in the Safety Code. The Company and employees will
cooperate to see that these rules of safety are observed by all employees.

 

Selection of Committee

 

247 The Company and Union Safety Committee representatives will be chosen by the
Health and Safety Coordinator and Shop Chairman respectively, and will serve for
a period of one year. Stewards selected will serve the full period whether or
not they continue as stewards for the full term. A replacement who fills a
vacancy shall serve out the balance of the term of their predecessor and may
serve the next full term, if selected.

 

106

--------------------------------------------------------------------------------

Safety Codes

 

248 The purpose of these safety rules is to protect the employees as they work
and ensure that they work safely. By following these rules, they should avoid
injury to themselves or fellow employees. Strict enforcement of these safety
rules will materially reduce the possibility that someone else will commit an
unsafe act which could endanger them.

 

  a. The work place is to be keep clean and orderly.

 

  b. The Safety equipment prescribed for any particular job shall be used in a
proper manner at all times.

 

  c. Safety glasses and/or approved eye protection are to be worn as prescribed,
in all designated areas at all times.

 

  d. Rings, bracelets, wristwatches, loose garments or neckties are not
permitted while operating a machine. Clothing worn shall be appropriate for the
shop floor environment and shall not pose a threat to safety.

 

  e. Safety toe footwear is required by all employees on the shop floor. Safety
toe footwear worn must comply with all current American National Standard Codes
(A.N.S.I. Z41-1991 Directive) and O.S.H.A. guidelines that are in effect.

 

107

--------------------------------------------------------------------------------

  f. Complete instructions and permission must be obtained from a supervisor
before operating any machine, which an individual does not normally operate. All
safety guards on machines must be in place and functional.

 

  g. A lockout on the power switch must be used while performing any maintenance
work on a machine, which requires placing any part of the body into or near its
mechanism.

 

  h. Individuals must not reach through or behind a safety guard while a machine
is running.

 

  i. Before cleaning, oiling, or adjusting the moving parts of a machine, it is
mandatory that the machine be completely shut down and locked out.

 

  j. Cranes must be operated only by individuals familiar with their operation.

 

108

--------------------------------------------------------------------------------

  k. Only authorized personnel are permitted to operate industrial power trucks
or power hand trucks. Such authorized personnel will comply with the General
Operating & Safety Rules for Power Vehicles.

 

  l. Defective or damaged hand tools, mushroomed chisels, punches, etc., and
files without handles are not to be used.

 

  m. Aisles must not be blocked. If at any time anything is placed in an aisle,
it must be moved. If the aisle is to be blocked for any period of time, the area
supervisor will notify the appropriate personnel.

 

  n. There will be no smoking during the period between the starting and
stopping time of your designated shifts up to and including overtime worked.
Smoking will be allowed during the employee’s designated break periods outside
all Chart buildings.

 

  o. Compressed air is to be used with caution. Never use compressed air for
cleaning clothing, exposed parts of the body, or for cooling purposes. Nozzles
must have an approved relief vent. Unapproved alteration of air nozzles is
prohibited.

 

109

--------------------------------------------------------------------------------

  p. Projecting nails in boxes, boards, or barrels, which are exposed, are to be
bent over or removed. Other dangerous sharp projections should either be
eliminated or protected.

 

  q. Electrical apparatus should be repaired only by authorized personnel,
regardless of how minor the problem seems to be. The supervisor is to be advised
of the condition, they will secure proper assistance. Electrical cabinets are
not to be blocked or used for storage.

 

  r. Lift properly - with the knees and legs, and not the back. Get help rather
than risk a strain.

 

  s. All injuries, no matter how minor, are to be reported promptly to a
supervisor and then to the appropriate medical facility.

 

  t. Horseplay, scuffling, throwing of objects, and running is unsafe and it is
forbidden. This applies to all Company premises, including the parking lots.

 

  u. Industrial gases are to be stored in a safe manner, in keeping with
standards established for their storage.

 

110

--------------------------------------------------------------------------------

  v. No employee shall remove, displace or damage any safety device or safeguard
furnished and provided for use in any employment or place of employment, nor
interfere in any way with the use thereof by any other person, nor shall any
such employee interfere with the use of any method or process adopted for the
protection of any employee in such employment or place of employment or
frequenter of such place of employment, nor fail or neglect to do every other
thing reasonable necessary to protect the life, health, safety or welfare of
such employees or frequenters. (Extracted in part from the Wisconsin Industrial
Commission statutes and provision).

 

  w. The above safety rules are not meant to be inclusive nor do they supersede
existing plant rules, which may imply stricter measures.

 

  x. No employee shall be disciplined or discharged for refusing to work on a
job if refusal is based on a reasonable claim that said job is not safe or might
unduly endanger the employee’s health and safety.

 

  y. $130.00 per person total, life of contract for the purchase of safety toe
footwear.

 

111

--------------------------------------------------------------------------------

Reporting Violations

 

249 The reporting of violations will be conducted in the following manner: the
supervisor will make out violation forms in quadruplicate, the supervisor will
retain one (1) copy and send three (3) copies to the Health and Safety
Coordinator. One completed copy will be sent to the Union.

 

Penalties

 

250 Penalties for the above violations will be as follows:

 

251 1ST VIOLATION: Violator will be presented with a violation slip, and
instructed in accident prevention and warned against future violations.

 

112

--------------------------------------------------------------------------------

252 2ND VIOLATION: Violator will be presented with a violation slip and be
suspended for a period of five (5) hours.

 

253 3RD VIOLATION: Violator will be presented with a violation slip and be
suspended for a period of two (2) days.

 

254 4TH VIOLATION: Violator will be presented with a violation slip and will be
suspended for a period of one (1) week.

 

255 SUBSEQUENT VIOLATIONS: Violators shall be subject to further disciplinary
action including discharge.

 

256 The above penalties are based on cumulative violations within any one-year
period.

 

General Safety Guides

 

257 Employees are not required or expected to take any risks from which they
cannot protect themselves by care and judgment.

 

258 Employees are not to rely on the watchfulness of others, but must protect
themselves when and where their own safety is involved.

 

259 In view of the possible effect on safety, no employee shall change any
customary safety method or work without first consulting the supervisor.

 

113

--------------------------------------------------------------------------------

260 Learn the location of fire extinguishers in the work area and be familiar
with their use and purpose.

 

First Aid

 

261 Trained first aid attendants will be provided at the facility. A list of
authorized first aid attendants will be posted in a prominent place near each
first aid office and will be revised as necessary, with a copy to the Union.
First Aid Attendants will receive ten (.10) cents per hour for these duties.

 

Reporting Injuries

 

262 An employee shall not fail to report an injury immediately to their
supervisor no matter how small it may seem. In case the supervisor is out of
their department, the injured employee shall report the injury to the department
steward or designated employee.

 

263 If it is necessary for an employee to go to the First Aid Room, they will
notify their supervisor. In case of an injury requiring emergency attention, the
employee should go to the First Aid Room immediately.

 

264 Medical attention for industrial injuries must be authorized by the Company
prior to receiving attention, except in cases of emergency.

 

114

--------------------------------------------------------------------------------

Eye Protection

 

265 In line with the Company’s policy of providing the employee with a safe
place in which to work, the Company will maintain a 100% comprehensive eye
protection program.

 

266 The type of eye protection required to be worn by employees must meet ANSI
standards. The Company will provide such eye protection to all employees. In
addition, the Company will provide equipment for protecting the eyes from damage
due to grinding, burnishing, arc welding, etc.

 

When Company Furnishes Prescription Glasses

 

267 In the event it is determined that an employee with seniority needs
corrective lenses in their safety glasses due to near-far vision problems, the
employee will furnish a copy of the prescription and the Company will pay the
cost of the glasses as follows:

 

  a. The Company pays

 

  • 100% of the cost of basic single vision, bifocal, and trifocal lenses

  • 100% of the cost of Basic or Group 1 frames

  • 100% of the dispensing fee

  • 100% of the cost of progressive lenses for all employees

 

  b. The Employee pays

 

  • 100% of the cost of miscellaneous lens options (transition, tints, coatings,
etc.)

  • 100% of charges for frame upgrades (frames other than Basic or Group 1)

  • 100% of the eye exam charge (may be submitted to health insurance)

 

115

--------------------------------------------------------------------------------

268 When it becomes necessary to replace prescription lenses after the first
pair, because of a change in prescription needs, the employee will furnish a
copy of the prescription and the Company will pay the cost of the lenses,
according to Paragraph 267.

 

269 When it is necessary to replace an employee’s prescription safety glasses
because they are pitted to such an extent that they are no longer serviceable,
the Company will pay for the cost of the new lenses (according to paragraph 190)
if the employee has had the glasses for a period of more than two (2) years of
working time. If the employee has had the glasses for less than two (2) years of
working time, the Company will pay the cost of the new lenses unless there has
been negligence on the part of the employee.

 

Damaged Glasses

 

270 Safety glasses damaged without the fault of the employee will be repaired or
replaced at no cost to the employee; however, it will be the employee’s
responsibility to maintain the glasses in acceptable condition and to replace
them if they are lost, or if they are damaged through misuse or improper care.

 

116

--------------------------------------------------------------------------------

General

 

271 The Company will maintain adequate facilities for necessary minor repair of
safety glasses. First aid attendants will perform these functions.

 

272 All prescription safety glasses will be purchased through the Company. (Any
exceptions must be approved by the Health and Safety Coordinator.)

 

117

--------------------------------------------------------------------------------

ARTICLE XXIV - MISCELLANEOUS

 

Limitation on Supervisor Doing Bargaining Unit

Work

 

273 The policy of the Company is to have supervisor perform supervisory work.
Supervisor and other non-bargaining unit employees of the Company shall not
perform the work of employees in the bargaining unit other than for instructive
purposes, or in case of emergencies, and when attempting to eliminate trouble on
a job when employees who can eliminate the trouble or handle the emergency are
not readily available, but the work so performed shall not take away any work
from any employee.

 

Notices to Employees

 

274 All employees will be sent a notice to their address as it appears on the
Company records. If it is necessary to contact an employee by telephone, the
message will be given to the person answering the telephone. It is the
employee’s responsibility to inform the Human Resources department of their
current phone number and address.

 

118

--------------------------------------------------------------------------------

Physical Exam at Company Request

 

275 An employee will take a physical examination at Company expense upon the
request of the Company. Before an employee is sent for such physical
examination, the Company will inform the Union and discuss the reasons for the
physical examination. The time spent for such an examination will be paid at the
rate of straight time.

 

Wash Up Period

 

276 A three (3) minute wash up period before the stopping signal will be granted
for fin press operators and also vacuum furnace operators to the extent that
they have been working with graphite.

 

Posted Union Notices

 

277 The Shop Committee will submit to the Company all proposed notices prior to
the posting on Company premises.

 

Educational Aid

 

278 An educational aid program will be made available to members of the
bargaining unit.

 

Cellular Manufacturing and Quality Improvements

 

279 It is agreed between the Company and the Union that the parties will work
together on the implementation of cellular manufacturing and quality
improvement, and will meet whenever necessary to discuss issues relating to
cellular manufacturing and quality improvement.

 

119

--------------------------------------------------------------------------------

Sub-Contracting:

 

280 In cases where competition, schedule or workload require the transfer of
work to outside vendors, the Company will advise the Union of such need and the
reasons for doing such prior to the sub-contracting.

 

Out of Town Assignments

 

281 The Company will inform the Shop Chairman when members of the bargaining
unit have been sent on repair assignments outside La Crosse. Compensation while
on such assignments will be based on the applicable provisions of the Fair Labor
Standard Act and Chart Heat Exchangers travel policy.

 

282 The Chart Heat Exchangers policy presently provides that an employee
traveling on Company business outside la Crosse will receive an additional 20%
(or more for certain international trips) added to their earnings applicable to
paid travel time and work performed on the trip with the exception of authorized
time off before and/or after a trip, travel for purposes of the employee’s own
training, and any trip completed within one day.

 

283 Employees are considered first shift employees for purposes of determining
normal working and sleeping hours while traveling.

 

120

--------------------------------------------------------------------------------

284 Travel, including time outside normal working hours, will be compensated
according to the Chart Heat Exchangers travel policy.

 

ITEMS FOR DISCUSSIONS

 

285 The Company and Union will discuss the following items should future
conditions warrant:

 

  a. Method for handling National Health Care should it be instituted.

 

121

--------------------------------------------------------------------------------

  b. Catastrophic economic conditions creating hardships for either party.

 

ARTICLE XXV - STRIKES AND LOCKOUTS

 

No Strike - No Lockout

 

286 Since the procedures set forth in this Agreement provide the means for
peaceable settlement of all differences, disputes, complaints, and grievances
that may arise between the Company and the Union, it is agreed that, during the
term of this Agreement, neither the Union nor any of its members shall
authorize, encourage, or participate in any strike or slowdown, and that there
shall be no lockouts by the Company.

 

Violation of Clause

 

287 In the event of an illegal, unauthorized or uncondoned strike, sit down,
slowdown or interference with the operation by an employee or employees in
violation of this Agreement, the Union will undertake all reasonable means at
its disposal to terminate such action. Employees who participate in or are
responsible for such violation may be discipline or discharged, and such
discipline or discharge shall be subject to the grievance procedure except as to
employees who do not terminate the violation promptly. The question of whether
an employee

 

122

--------------------------------------------------------------------------------

     participated in or had any responsibility for such violation shall in every
case be subject to the grievance procedure. In the event that the Union, using
immediate action, is unable to induce the employee or employees to terminate
such unauthorized action, the Company will not hold the local Union or its
officers or the International Union or its officers financially responsible
therefor.

 

ARTICLE XXVI

 

SEVERANCE PACKAGE – PLANT CLOSING

 

288 In the case of the Plant Closing, the employees affected at the Chart Heat
Exchangers Division in La Crosse, WI, will fall under the following guidelines:

 

289 Monetary Compensation as follows:

 

     One (1) week of pay for every two (2) years of service up to a maximum of
twelve (12) weeks. Years of service to be defined as no break in seniority.

 

290 Checks are to start one (1) week after said closing and will be paid on a
weekly basis until pay entitlement is exhausted.

 

291 Insurance:

 

     Paid in the same format (employee contribution) as if working during the
paid severance period. Insurance benefits will remain in effect until the last
day of the month following the last severance payment.

 

123

--------------------------------------------------------------------------------

ARTICLE XXVII

 

DURATION OF AGREEMENT

 

292 This Agreement shall remain in full force and effect until 11:59 p.m. on
February 3, 2007 and on a year to year basis thereafter unless on or before
December 5, 2006 (or in the event of a year to year extension, at least sixty
(60) days prior to the Agreement expiration date), either the Company or the
Union serves upon the other party a written notice of its desire to terminate
this Agreement and negotiate a succeeding Agreement.

 

293 No other agreement can modify the terms of this Agreement unless entered
into as a written amendment or supplement hereto.

 

294 It is understood that if any of the above articles or article or parts
thereof, are in conflict with federal or state rulings, laws, or executive
orders, such federal or state rulings, laws or executive orders shall apply.

 

124

--------------------------------------------------------------------------------

Agreed to this              day of             , 2004.

 

CHART HEAT EXCHANGERS, L.P.

  LOCAL LODGE 2191 OF DISTRICT LODGE 66 OF THE INTERNATIONAL ASSOCIATION OF
MACHINISTS AND AEROSPACE WORKERS, AFL-CIO

/S/ JOHN ROMAIN

 

/S/ TOM O’HERON

/S/ JOEL A. GUBERUD

 

/S/ DENNIS A. GERKE

/S/ MAX C. GRAMLING

 

/S/ MARTIN L. CHRISTIANSON

/S/ PHIL A. HEIMBECKER

 

/S/ SCOTT T. PHILLIPS

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

125

--------------------------------------------------------------------------------

FREE STANDING AGREEMENT

 

LOCAL LODGE 2191 AND CHART HEAT EXCHANGERS

 

It is agreed; the company and Union will discuss the possibility of exceeding
the Voluntary Shift Exchange Language [more than one (1) week] due to manpower
moves.

 

As in the past, these discussions will take place to allow employees the
opportunity to change shifts with other employees in excess of the limit stated
in the current Labor Agreement.

 

This agreement is based on the additional requirements stated in the current
Labor Agreement, Voluntary Shift Exchange [more than one (1) week], and mutual
agreement between the Company and Union Shop Committee.

 

Any agreement to allow this to take place will be agreed to on a non-precedent
basis.

 

It is recognized that the Company will have final say in decisions associated
with the above stated language.

 

126

--------------------------------------------------------------------------------

DRUG AND ALCOHOL TESTING POLICY AND PROCEDURES

 

Purpose:

 

Chart Heat Exchangers is committed to providing and maintaining a safe,
healthful and productive environment for all of its employees. An integral part
of such an environment is a workforce free from individuals who are illegally
and unsafely abusing drugs or alcohol. Therefore, it is in the best interest of
the Company, its customers, and its employees to recognize that illegal drug use
by employees would be a threat to the welfare and safety of Company personnel.

 

Policy:

 

Section 1.

 

It is the goal of this policy to eliminate or absolve illegal drug usage through
education and rehabilitation of the affected personnel. The possession, use or
being under the influence of alcoholic beverages or unauthorized drugs shall not
be permitted at the Employer’s work site and/or while an employee is on duty.

 

Section 2. Pre-employment Testing:

 

As a precondition to obtaining employment with Chart Heat Exchangers to become
Chart Heat Exchangers employees, all applicants, following a conditional offer
of employment, must successfully complete a pre-employment physical

 

127

--------------------------------------------------------------------------------

examination by, in relevant part, testing negative through urinalysis or similar
tests administered to detect the use or abuse of drugs and/ or alcohol. Such
pre-employment testing bears a direct, material, and timely relationship to an
applicant’s capacity to perform his or her duties safely and effectively.

 

Section 3. Informing Employees About Drug and Alcohol Testing:

 

All employees shall be fully informed of the Chart Heat Exchangers drug and
alcohol testing policy. Employees will be provided with information concerning
the impact of the use of alcohol and drugs on job performance. In addition, the
employer shall inform the employees on how the tests are conducted, what the
tests can determine and the consequence of testing positive for drug use. All
newly hired employees will be provided with this information on their initial
date of hire. No employee shall be tested before this information is provided to
him/her. The Employer shall not discipline employees who voluntarily come
forward and ask for assistance to deal with a drug or alcohol problem. Prior to
any testing, the employee will be required to sign the attached consent and
release form. No disciplinary action will be taken against an employee unless
he/she refuses to sign the consent and release form, refuses to take a
drug/alcohol test, refuses the opportunity for rehabilitation, fails to complete
a rehabilitation program successfully, or again tests positive for drugs/alcohol
within two (2) years of completing an appropriate rehabilitation program.

 

128

--------------------------------------------------------------------------------

Section 4. Employee Testing:

 

Employees shall not be subject to random medical testing involving urine or
other similar or related tests for the purpose of discovering possible drug or
alcohol abuse however, if objective evidence exists establishing probable cause
to believe an employee’s work performance is impaired due to drug or alcohol
abuse, the employer will require the employee to undergo a medical test
consistent with the conditions set forth in this Policy. An employee that is
ordered to participate in a drug and alcohol test shall have the right to
consult with the Medical Review Officer, Treating Physician or Attending
Physician following the testing process.

 

Section 5. Sample Collection:

 

The collection and testing of the samples shall be performed only by a
laboratory and by a physician or health care professional qualified and
authorized to administer and determine the meaning of any test results. The
laboratory performing the test shall be one that is certified by the National
Institute of Drug Abuse (NIDA). The laboratory chosen must be agreed to between
the Union and the Employer. The laboratory used shall also be one whose
procedures are periodically tested by the NIDA where they analyze unknown
samples sent to an independent party. The results of employee’s tests shall be
made available to the Medical Review Officer. Collection of urine samples shall

 

129

--------------------------------------------------------------------------------

be conducted in a manner, which provides the highest degree of security for the
sample and freedom from adulteration. Recognized strict chain of custody
procedures must be followed for all samples as set by NIDA. The Union and the
Employer agree that security of the biological urine samples is absolutely
necessary therefore the Employer agrees that if the security of the sample is
compromised in anyway, any positive test shall be invalid and may not be used
for any purpose.

 

Urine samples will be submitted as per NIDA Standards. Employees have the right
for Union or legal counsel representative to be present during the submission of
the sample.

 

130

--------------------------------------------------------------------------------

A split sample shall be reserved in all cases for an independent analysis in the
event of a positive test result. All samples must be stored in a scientific
acceptable preserved manner as established by NIDA. All positive confirmed
samples and related paperwork must be retained by the laboratory for at least
six (6) months or for the duration of any grievance, disciplinary action or
legal proceedings whichever is longer. At the conclusion of this period, the
paperwork and specimen shall be destroyed.

 

Tests shall be conducted in a manner to ensure that an employee’s legal drug use
and diet does not affect the test results.

 

Section 6. Drug Testing:

 

The laboratory shall test for only these substances and within the limits for
the initial and confirmation test as provided within the NIDA Standards. The
initial test shall use an immunoassay, which meets the requirements of the Food
and Drug Administration for commercial distribution.

 

Marijuana metabolites

   50 ng/ml

Cocaine metabolites

   300 ng/ml

Opiate metabolites

   2000 ng/ml

Phencyclidine

   25 ng/ml

Amphetamines

   1000 ng/ml

 

131

--------------------------------------------------------------------------------

If initial testing results are negative, testing shall be discontinued, all
samples destroyed and records of the testing expunged from the employee’s file.
Only specimens identified as positive on the initial test shall be confirmed
using gas chromatograph/mass spectrometry (GC/MS) techniques at the following
listed cutoff values.

 

Marijuana metabolites

   15 ng/ml

Cocaine metabolites

   150 ng/ml

Opiates

    

Morphine

   2000 ng/ml

Codeine

   2000 ng/ml

Phencyclidine

   25 ng/ml

Amphetamines

    

Amphetamine

   500 ng/ml

Methamphetamine

   500 ng/ml

 

If confirmatory testing results are negative all samples shall be destroyed and
records of the testing expunged from the employee’s file.

 

1. If immunoassay is specific for free morphine the initial test level is 25
ng/ml

 

2. Delta-9-tetrahydrocannabinol-9-carboxylic acid

 

3. Benzoylecgonine

 

132

--------------------------------------------------------------------------------

Section 7. Alcohol Testing:

 

A Breathalyzer or similar test equipment shall be used to screen for alcohol. An
initial positive alcohol level shall be, .04 grams per 210L of breath. If
initial testing results are negative, testing shall be discontinued, all samples
destroyed and records of the testing expunged from the employee’s file. Sampling
handling procedures, as detailed in Section 4, shall apply.

 

Section 8. Medical Review Officer:

 

The Medical Review Officer shall be chosen and agreed upon between the Union and
the Employer and must be a licensed physician with a knowledge of substance
abuse disorders. The Medical Review Officer shall be familiar with the
characteristics of drug tests (sensitivity, specificity, and predictive value),
the laboratories running the tests and the medical conditions and work exposures
of the employees. The role of the Medical Review Officer will be to review and
interpret the positive test results. The Medical Review Officer must examine
alternate medical explanations for any positive test results. This action shall
include conducting a medical interview with the affected employee, review of the
employee’s medical history and review of any other relevant biomedical factors.
The Medical Review Officer must review all medical records made available by the
tested employee when a confirmed positive test could have resulted from legally
prescribed medication.

 

133

--------------------------------------------------------------------------------

Section 9. Laboratory Results:

 

The laboratory will advise only the employee and the Medical Review Officer of
any positive results. The results of a positive drug or alcohol test can only be
released to the Employer by the Medical Review Officer once he has completed his
review and analysis of the laboratory’s test. The employer will be required to
keep the results confidential and it shall not be released to the general
public.

 

Section 10. Testing Program Costs:

 

When the Company has proven a probable cause to believe that an employee is
under the influence of a substance, which is impairing job performance, the
employee will be immediately placed on a mandatory leave of absence from work,
for the remainder of the shift involved, and sent for a drug/alcohol test. The
employee will report to work at the start of the next regular shift. The Company
will pay the employee for all hours (to include overtime hours) missed from work
due to the mandatory leave of absence upon receipt of verification of a negative
substance test. If the result of the substance test is positive, the Company
will not pay the employee for any hours missed from work due to the mandatory
leave of absence.

 

For all costs associated with drug and alcohol testing, the Company will pay the
medical testing facility and Medical Review Officer.

 

134

--------------------------------------------------------------------------------

Section 11. Transportation:

 

The Company will provide transportation, at its expense, through a local taxi
service to the medical facility conducting the substance test. Both Management
and the Union reserve the right to have a representative accompany the employee
to the testing facility.

 

The Company will provide transportation, at its expense, through a local taxi
service from the medical testing facility to the employee’s home and their
return to work the following day through a local taxi service. In no instance
will the employee be permitted to drive himself or herself home.

 

Section 12. Rehabilitation and Offenses and Penalties Program:

 

Any employee may voluntarily enter rehabilitation without a requirement for
prior testing. Employees who enter a program on their own initiative shall not
be subject to testing. The treatment and rehabilitation shall be paid for by the
medical benefits plan, in which the employee participates, to the extent
provided by the plan. Employees who have chosen to opt out of the Company’s
Health Insurance Plans will first, apply for benefits under the plan that covers
them and secondly, be covered by the company if benefits are not provided by
another plan.

 

Any employee, who tests positive the first time shall be medically evaluated,
counseled and treated for rehabilitation as recommended by an E.A.P. Counselor.
Employees who complete a rehabilitation program can be re-tested randomly at
least once every quarter for the following six

 

135

--------------------------------------------------------------------------------

(6) months, if an employee tests positive a second time during the six (6) month
period, they shall be subject to a disciplinary action. The employee will be
reevaluated by an E.A.P. Counselor to determine if the employee requires
additional counseling or treatment. The employee will also receive a last chance
agreement. If the employee does not sign the last chance agreement, he/she will
be subject to disciplinary action up to and including dismissal. If the employee
tests positive a third time during this subsequent six (6) month period, he/she
will be dismissed from his/her position with Chart Heat Exchangers.

 

Section 13. Duty Assignment After Treatment:

 

Once an employee successfully completes rehabilitation, they shall be returned
to their regular duty assignment. Once treatment and any fol1ow-up care is
completed, and two (2) years have passed since the employee entered the program,
the employee’s personnel file shall be purged of any reference to his/her drug
or alcohol problem.

 

Section 14. Right of Appeal:

 

The employee has the right to challenge the results of the drug or alcohol tests
and any discipline imposed in the same manner that any of the employer actions
under the terms of this agreement is grievable.

 

136

--------------------------------------------------------------------------------

Section 15. Union Held Harmless:

 

This drug and alcohol-testing program was initiated at the request of the
employer. Chart Heat Exchangers assumes sole responsibility for the
administration of this policy and shall be solely liable for any legal
obligations and costs arising out of the provision and/or application of this
policy relating to drug and alcohol testing. The Union shall be held harmless
for the violation of any worker rights arising from the administration of the
drug and alcohol-testing program.

 

Section 16. Changes in Testing Procedures:

 

The parties recognize that there may be improvements in the technology of
testing procedures, which provide more accurate testing. In that event, the
party’s shall bargain in good faith whether to amend this procedure to include
such improvements.

 

Section 17. Conflict With Other Laws:

 

This article is in no way intended to supersede or waive any constitutional or
other rights that the employee may be entitled to under Federal, State or Local
Statutes.

 

137

--------------------------------------------------------------------------------

Section 18. Non-Workplace Drug Related Convictions:

 

Any employee who is convicted of an illegal drug-related crime (does not apply
to ordinance violations) shall notify the Company immediately of such
convictions. For the purpose of this Policy, a “conviction” means finding of
guilt (including a plea of nolo contendere) or imposition of sentence, or both,
by any judicial body with the responsibility to determine violations of federal,
state or local criminal statutes. Information concerning any such conviction for
violation of any statute based upon conduct occurring away from the Company’s
premises and outside work time shall not be a basis for imposing discipline
under the collective bargaining agreement or for requiring probable cause
testing without the observation required by this Policy.

 

Section 19. Diversion Agreement:

 

Any employee who accepts a diversion agreement, wherein the employee pleads
guilty to an offense but, the guilty plea is not accepted by the court if
certain conditions are met within a prescribed time line, will be required to
notify the Company under this policy if and when the employee’s guilty plea is
accepted because of the employee’s failure to meet the set conditions.

 

138

--------------------------------------------------------------------------------

Section 20. Training:

 

The training of Company and Union representatives shall be from a formal
training program endorsed by a local Hospital and/or Law Enforcement Agency in
detecting signs and symptoms of substance abuse through speech, breath odor and
conduct which indicates the need for testing.

 

The Company and Union will have an equal number of people trained to recognize
individuals under the influence of drugs and/or alcohol. It remains the
responsibility of the Company to determine testing of employees.

 

Section 21. Confidentiality:

 

The Company will designate an official who will be responsible for receiving and
maintaining records regarding all substance tests administered under this
Policy. These records shall be maintained in separate files from routine
personnel files and the Company shall limit access to those specifically
authorized management personnel listed below. The Company will conduct the
Policy in a manner calculated to preserve the employee’s privacy and dignity.

 

In the event a grievance is filed as a result of a positive substance test, the
Company shall obtain from the laboratory its records relating to the drug test
and, if necessary, any record which might be in the possession of the Medical
Review Officer. The Company shall provide copies of all information to the
Union, provided that the employee authorized the release of the medical records.
The Union and the Company shall confer and adopt a mutually acceptable release
form.

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Human Resources Manager

 

Date

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Manager of Manufacturing

 

Date

 

139

--------------------------------------------------------------------------------

The Union reserves the right to grieve and/or arbitrate:

 

The Union reserves the right to grieve and/or arbitrate any or all of this
Policy if it is deemed necessary as determined by the Union.

 

140

--------------------------------------------------------------------------------

CONSENT and RELEASE FORM for Drug/Alcohol Test Program

 

I acknowledge that I have received a copy of, have been duly informed, and
understand the Chart Heat Exchangers drug and alcohol testing policy and
procedures. I have been provided with the information concerning the impact of
the use of alcohol and drugs in the work place. In addition, I have been
informed on how the tests are conducted, what the test can determine and the
consequence of testing positive for drug/alcohol use.

 

I have been informed of Chart Heat Exchangers Employee Assistance Program (EAP).
I understand that if I voluntarily come forward and ask for assistance to deal
with a drug or alcohol problem through EAP, that, I will not be disciplined by
the employer.

 

I understand how drug/alcohol tests are collected and further understand that
there are medical tests that are conducted under the auspices of a Medical
Review Officer (MRO). I understand that the MRO will review and interpret any
positive test results, and that I will have an opportunity to be interviewed by
the MRO to review my status, my medical history and any relevant biomedical
factors prior to Chart Heat Exchangers being informed whether I passed or failed
the test.

 

141

--------------------------------------------------------------------------------

I understand that a confirmed positive drug or alcohol test will result in my
referral to Chart Heat Exchangers EAP and that I will be required to complete a
rehabilitation program. No disciplinary action will be taken against me unless I
refuse to sign this consent and release form, refuse to take a drug/alcohol
test, refuse the opportunity for rehabilitation, fail to complete a
rehabilitation program successfully, or again test positive for drugs/alcohol
within two (2) years of completing an appropriate rehabilitation program. I
understand that such disciplinary action, as described herein, may include
dismissal from Chart Heat Exchangers.

 

A copy of this form shall be provided to Local Lodge No.2191.

 

I,                     , hereby consent and willingly submit to drug and alcohol
testing, as stated above, to be performed upon me and hereby authorize the
Medical Review Officer to review such tests. I further agree to have released,
any positive test results and/or confirmation that the test was performed to
Chart Heat Exchangers, through its Human Resource Manager.

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Signature of Employee

 

Date

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Witness

 

Date

 

142

--------------------------------------------------------------------------------

LAST CHANCE AGREEMENT

 

It is the policy of Chart Heat Exchangers to maintain a work environment for all
its employees that is conducive toward maximum safety and optimum work
standards. In application of this policy, the use or possession, and/or sale of
drugs by an employee is prohibited. Having detectable amounts of alcohol/drugs
in your body while on Company premises is also prohibited.

 

It is the policy of Chart Heat Exchangers to take action whenever alcohol and/or
drugs are detected through urinalysis/drug testing. Under such circumstances,
the employee will be subject to disciplinary action up to and including
immediate discharge, as outlined in the Chart Heat Exchangers substance abuse
policy.

 

On                     , you tested positive for drugs and/or alcohol for the
second time. The Company will provide you with an opportunity to rehabilitate
yourself. The Company has agreed to provide you with a leave of absence, if
necessary, for your rehabilitation.

 

If you elect to participate in and successfully complete a rehabilitation
program, the Company is prepared to allow you to continue employment under the
following conditions:

 

1. You must successfully complete the rehabilitation program, including any
recommended follow-up and provide the Company with reports with regard to your
attendance and your completion of such programs. A plan of action must be agreed
upon before hand.

 

143

--------------------------------------------------------------------------------

2. You agree, by your signature below, that your representatives of the
Employees Assistance Program and rehabilitation program are authorized to
release to Chart Heat Exchangers information related to your attendance and
progress in an approved treatment and rehabilitation program.

 

3. You will not possess, use, sell, or be under the influence of drugs and/ or
alcohol on company premises or during work hours at any time in the future.

 

4. You agree that the Company may require you to be tested for the presence of
alcohol and/ or drugs in your system at any time for any reason or for no reason
at all in the next six (6) months. Such tests will be conducted by a medical
testing facility using any appropriate testing procedure. If you are requested
to take such an examination and refuse to take the examination or test positive,
you agree that you will be immediately terminated.

 

In accepting the terms of this Last Chance Agreement, you agree that if you fail
to live up to any of the terms of this agreement, you will immediately be
terminated. No excuses will be accepted for not meeting the terms of this
agreement.

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Human Resources Manager

 

Date

 

144

--------------------------------------------------------------------------------

I have read and been given a copy of this Last Chance Agreement. I have been
informed that I should review this agreement with an attorney before I sign it.
I understand that this is my last chance to keep my job and that if I violate
this agreement I will be terminated.

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Employee

 

Date

 

145