Exhibit
10.11


 


 


AGREEMENT


between


ROLLER BEARING COMPANY OF AMERICA


and


INTERNATIONAL UNION U.A.W.


LOCAL 502


 


July 1, 2001


 


 


ARTICLE 1


PARTIES
TO THE AGREEMENT


 


This Agreement is entered into between ROLLER BEARING
COMPANY OF AMERICA (“RBC” or the “Company” or the “Employer”) and the
INTERNATIONAL UNION U.A.W.  and its
Local 502 (the “Union”).


 


ARTICLE 2


PHILOSOPHY
STATEMENT


 


This Agreement recognizes the need for a new approach to
Union/Management relations and the more effective use of human resources in the
manufacture of bearings worldwide.  It
further recognizes the competitiveness in the bearing industry and the
potential for increased global competitive pressures with our current and
future customers.  Both parties
recognize the need to develop and maintain an atmosphere of cooperative problem
solving to accomplish our mutual objectives. 
We understand that our job security depends upon our success in making
quality bearings, in a cost-effective manner, and in satisfying our customer
expectations and commitments.


 


We believe that people want to be involved in decisions that affect
them, care about their jobs and each other, take pride in themselves and in
their contributions and want to share in the success of their efforts.


 


Making progress toward these mutually agreed upon goals will require a
relationship of mutual respect, open communication, shared success, mutual aid,
innovative problem solving, and shared decision-making.  The parties agree that in order for the
Union to effectively represent its members, the Union must have a role in the
decision-making process that affects its members.  It is the intent of the UAW and RBC to create a workplace that
recognizes the need for people to be treated with respect and dignity and
recognizes that collective bargaining can be an essential and constructive
force in our plant.  All parties in this
Agreement will strive to make the West Trenton plant of RBC the best of its
kind in the marketplace; making the highest quality product; a cost effective,
profitable operation; a coveted place to work, and a responsible member of the
community.


 


It is in this renewed spirit of mutual respect and recognition of each
other’s stakes and equities that this Agreement is entered into and agreed
upon.


 


ARTICLE 3


UNION
RECOGNITION


 


The Company recognizes the Union as the exclusive
collective bargaining agent for all the Company’s production and maintenance
employees at its plant in West Trenton, New Jersey, in respect to rates of pay,
wages, hours of employment and other conditions of employment, excluding,
however, office employees, supervisors, plant protection employees, laboratory
employees, and time study personnel, pursuant and subject to the provisions of
the Labor-Management Relations Act-1947 and amendments thereto.


 


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ARTICLE 4


UNION
SECURITY AND CHECK-OFF


 


To the extent permitted by law, all bargaining unit
members shall be required, as a condition of employment, to become and remain
members in good standing of the Union on and after the thirtieth (30th) day
following the beginning of their employment or the effective date of this
Agreement, whichever is the later, to the extent of paying an initiation fee
and membership dues specified by the Union. 
No employee shall be discharged by the Company for failure to maintain
good standing in the Union until such employee has received a written notice
from the Union that he is not in good standing, and has at least seven (7) days
thereafter in which to put himself in good standing.  For the purposes of this Article, “good standing with the Union”
means that the employee’s dues for any month must be tendered by the last day
of the month following such month.


 


RBC will provide for check-off of union dues and
initiation fees on behalf of employees who request such a service in accordance
with prevailing law.  The Union shall
indemnify and save RBC harmless with respect to any claims or expenses arising
out of any action taken as or not taken by RBC for the purpose of complying with
this Article.


 


ARTICLE 5


NON-DISCRIMINATION


 


The philosophy and mission of RBC are designed to be
in full and complete compliance with the legal and moral principles of equal
opportunity in employment.  Accordingly,
the Company and the Union pledge, on behalf of themselves, as well as their
officers, members and representatives to treat all persons equally without
regard to their race, color, religion, age, sex, national origin, disability,
or veteran’s status.  Although the term
“he” is used throughout this Agreement, it is used to represent both male and
female employees and is not intended to be discriminatory or exclusive in any
way, but rather to simplify the language for understanding.


 


The Company agrees that neither it nor any of its
representatives will intimidate, coerce, interfere with or discriminate against
any employee because of proper activity on behalf of the Union.  The Union agrees that it nor any of its
officers or members will threaten, intimidate, coerce or interfere in any
manner with any employee.


 


ARTICLE 6


STRUCTURE AND DECISION-MAKING PROCESS


 


The intent of the parties
is to create an evolutionary process towards a goal in which employees will be
part of the decision-making process with respect to producing to schedule,
producing a quality product, performing 
to budget, housekeeping, health, safety, environmental conformance,
maintenance of equipment, material and inventory control, training, job
assignment, repairs, scrap control, and scheduling time off.


.


WORK
GROUP MEMBER:


The individual RBC
employee.


 


WORK
GROUP:


An integrated group of
not more than 20 Work Group Members with a common manufacturing and support
purpose related to a product or products.


 


The Work Group will have
the responsibility and authority to produce quality products to schedule at
competitive costs.  It will have
responsibility for both direct and indirect work and, as such, will hold
meetings, obtain supplies, keep records, seek resources as needed, and be
responsible for job preparation and attainment of its own  materials and supplies.  It will constantly seek improvement in
quality, cost, and the work environment. 
The Work Group will also be responsible for the planning and scheduling
of the work and communications within and outside the group.


 


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WORK
GROUP REPRESENTATIVE:


An employee elected by
the Work Group to participate with management in coordinating the
administrative functions of the Work Group and report at least monthly on Work
Group progress to the Plant Council. 
The Plant Council may recall a Work Group Representative upon petition
of at least two-thirds of the members of the Work Group.


 


WORK
GROUP SUPERVISOR:


A member of management
who will coordinate the activities of the Work Group.  In addition, Work Group Supervisors will be responsible for
employment, termination, and coordination of job transfers, and will do
advanced planning for resources, both short and long term, and will determine
and plan resources needed by the Work Groups, including administration,
engineering, materials, financial, etc.


 


UNION
PLANT COMMITTEE:


 


The Union Plant Committee is elected by the union
members according to the Union bylaws. 
Membership will consist of a President and one additional member for
every forty (40) employees, with a minimum of no less than three members. Union
Plant Committee members and two members of the Education and Training Committee
will have top seniority for layoffs and recall purposes.  They will be assigned to serve on the Plant
Council and the other committees created by this Agreement as the Union sees
fit.  The Union President or his
designee will be afforded up to twenty (20) hours per week for the purpose of
conducting Union business.


 


PLANT
COUNCIL:


A consultative employee
group, consisting of three (3) members of the Union Plant Committee and an
equal number of representatives from the Company, including the Plant Manager
or his designee, who participate in decision-making processes addressing issues
affecting the entire plant or which have not been resolved in the Work
Group.  Additional members may be added
by mutual agreement of the parties on an ad hoc basis while resolving specific
issues.  The Plant Council will meet as
often as necessary, but at least weekly.


 


In connection with the
foregoing and with other issues affecting the plant, the parties recognize that
all functions of management are reserved exclusively to the Company, except
insofar as they are delegated or shared pursuant to the terms of this
Agreement.  These functions include the
management of the business, the determination of the products, methods,
processes and means of manufacturing, the establishment of the size and
direction of the work force, the setting of working schedules, the rights to
hire, promote, demote, lay off, transfer, discipline, discharge for proper
cause and establishing fair efficiencies and Shop Rules.  The Company will perform these functions in
the spirit of the Philosophy Statement of this Agreement.


 


Within the Work Groups,
decisions on matters within the Groups’ authority which are not otherwise
provided for in this Agreement will be made through the consensus
decision-making process outlined below:


 


a)  Such
decisions shall be made in the context of the Philosophy Statement (Article 2)
and the Structure and Decision-Making framework (Article 6).


 


b)  Decisions
should be achieved through the joint efforts of all to discover the best
solution.


 


c)  Decisions
must be arrived at promptly.


 


d)  A decision
must provide a high level of acceptance for all parties.


 


e)  Once a
decision is reached, all parties must be totally committed to the decision.


 


f)  Any party
may object to a proposed decision, in which event the objecting party must
propose concrete alternatives.


 


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g)  In the
event an alternative solution is not forthcoming, the objecting party must
re-evaluate its position in the context of the Philosophy Statement.


 


h)  In the
event a decision acceptable to all parties is not promptly attainable, the
matter will be referred to the Plant Council.


 


The Plant Council will also seek to reach decisions on
matters within its authority under this Agreement by means of the consensus
decision-making process outlined above, provided that, if such a decision is
not promptly attainable, the Company shall have the right to take action,
subject to the Union’s right to grieve under the Agreement.


 


ARTICLE 7


WORK PERFORMED OUTSIDE THE BARGAINING
UNIT


 


1.  The parties
shall conform to the principle that non-bargaining unit employees  shall not perform any operation which would
deprive employees of their regular work. 
This is not to be interpreted to prevent their necessary function of
instruction and demonstration and of engaging in productive activities where
required in order to handle incidents which affect efficient operation.


 


2. 
Non-bargaining unit employees may be used to perform experimental work,
with or without the assistance of employees in the bargaining unit, as
management determines.   Experimental
work is defined to mean all work involved in the development of new, different
or modified products, parts, tools or equipment.


 


3.  When
experimental work is to be performed on a production basis, it will be assigned
to bargaining unit employees. 
Experimental work on a production basis is defined to mean production of
products, parts, tools or equipment after design and testing have been
completed and production for inventory or orders has commenced, and will be
assigned to bargaining unit employees.


 


ARTICLE 8


TRAINING


 


Both the Union and the
Company recognize that training will be required to prepare Work Group and
Plant Council Members to perform these functions and that this transformation
will require a gradual cultural change, but agree to work together over the
life of this Agreement to obtain the skills necessary to meet the levels of
authority and responsibility described here.


 


A Training and Education
Committee has been established to develop, schedule and manage the training and
education process.  Two (2) employees
selected by the UAW N.J. Area Director and two (2) employees selected by the
RBC Plant Manager will constitute the Training and Education Committee.  A minimum of two (2) hours training and/or
education will be provided for each employee per month when averaged on a
yearly basis.   This minimum training
and education requirement will include either on-the-job training to learn to
perform specific skills and/or classroom training on subjects necessary to
conform with the Philosophy Statement of this Agreement.  The Training and Education Committee will
work with the members of the Work Groups to develop, schedule, and implement
training and education programs.


 


The Training and Education Committee will develop a training and education
plan that will include necessary skills and education for the implementation of
this Agreement.  This plan will include
a schedule of training for all employees in coordination with the principles of
the pay for knowledge and skills process. 
A skills assessment of all employees and the requirements for all levels
of each classification will be included in the plan.  The Training and Education Committee has submitted its initial
plan for six months training and education to the Plant Council.  The training and education plan is on going
process and will be updated as needed during the length of this contract. The
training and education plan will include the utilization of a qualified trainer
or trainers selected by the Plant Council, whose duties may also include
helping the parties to facilitate the process. 
Expenses for training and education will be borne by the Company or
through grants


 


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where available.  After the
initial training and education plan, the Committee will submit a plan every six
(6) months for approval.  Training will
begin within thirty (30) days of the approval of the plan which must be
finalized within two (2) weeks of its submission.   In the event the members of the Committee shall fail to reach
consensus on any aspect of the plan, the opposing views shall be submitted to
the Plant Council for determination.


 


Each Training and
Education Plan will include (but will not be limited to):


•
technical skills


•
problem-solving


•
consensus decision-making


•
business basics and philosophy


•
trade unionism


•
team building


•
English as a second language.


 


Any Skilled Trades
components of the training and education plan will be developed with the
assistance of the UAW Skilled Trades Department.


 


Each member of the Union
Plant Committee will be given a minimum of 60 hours of training in business and
economics related studies each year of this labor agreement, at Company
expense.  Such training may include visits
to other manufacturing facilities, classroom training, or on-site training,
etc. and will be determined by joint union and management agreement.


 


Unless deemed otherwise,
all training and education approved by the Plant Council as part of the
Training and Education Plan will be mandatory and costs will be borne by the
Company.


 


ARTICLE 9


PROBATIONARY
PERIOD


 


1.  Any new or rehired employee
shall be considered on probation with no seniority for a period of sixty (60)
scheduled work days, not including absence days for any reason.  Once the probationary period is
satisfactorily completed, the employee will receive seniority credit dated back
to the first day of his current hiring.


 


2.  The Company may, at any
time, transfer, layoff, or discharge a probationary employee for any reason
whatsoever and no claim may be made by the Union or any of its members that the
transfer or discharge of such employee was improper.  Bargaining unit employees will not be asked to pass judgment on
the performance of the probationer.


 


ARTICLE 10


SENIORITY


 


1.  Computing Seniority


 


A. The seniority standing of an employee shall be
computed on the basis of the length of his service.  His seniority date is his date of hire.  When more than one employee is hired on the same date, to
establish their seniority position, their names will be placed on the seniority
lists in alphabetical order by last name (at the time of hire), then first
name, if needed.


 


B.  Service
will accumulate during an approved personal leave of absence, Union leave,
family and medical leave, maternity leave, sick leave, military leave, funeral
leave, or jury duty.


 


2.   An employee’s length of
service and seniority shall be considered ended, and the employee will have no
further recall or other rights as an employee of any kind or nature, except the
right to vacation pay, and insurance continuation through COBRA, if such an
employee:


 


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A.  Voluntarily
quits his employment (if rehired by the Company within three (3) working days
after quitting, seniority shall not be affected), or


 


B.  Is
discharged for proper cause, or


 


C.  Is absent
for three (3) working days without properly notifying the Company, unless a
satisfactory explanation is given for failure to call.  (NOTE: 
this does not remove the obligation of calling in on the first day of
absence), or


 


D.  Fails to
return to work from layoff within five (5) working days after proper
notification by certified mail, return receipt requested or an accepted method
of overnight delivery by the Company at the last known address as it appears on
the Company records, unless a satisfactory reason is given, or


 


E.  Fails to
return to work at the end of an approved leave of absence or gives a false
reason for obtaining a leave of absence, or


 


F.  Passes the
time limit for recall from layoffs, or


 


G.  Requests
and receives severance pay as a result of a qualified layoff.


 


ARTICLE 11


LAYOFFS
AND RECALL TO WORK


 


1.  Layoff Provisions


 


A.  The Company
will give at least seventy-two (72) hours notice prior to layoff to the
employees affected, even if only one employee is affected.


 


B.  When a job
is eliminated within a classification in a Work Group, the least senior
employee in that classification in the Work Group will be displaced.


 


C.  An employee
displaced from a classification within a Work Group may bump on the basis of
plant seniority the least senior employee in the same or a lower rated
classification in another Work Group. 
The employee will designate a job choice within 48 hours from the end of
the shift on which he was displaced. 
Employees can only bump into a Skilled Trades job if they previously
held the job.


 


2.  Recall Provisions


 


A.  Recall will
be offered to employees on the recall list in reverse order of layoff when
there are no successful bidders for an open job.


 


B.  If an
employee on the recall list is offered regular, full-time re-employment of 60
working days or more on the same job and shift as previously held, and he
refuses to accept it, he will be dropped from the recall list and no longer have
any rights under this Agreement, except the right to any unpaid vacation and
benefits through COBRA.


 


C.  If an
employee on the recall list is offered regular, full-time re-employment of 60
working days or more on a different job or shift than his regular job, and he
refuses to accept it, he will remain on the recall list  until such time as he is offered another
opportunity to return to work.  A third
refusal to return to work will cause such employee to be removed from the
recall list and no longer have any rights under this Agreement, except the
right to any unpaid vacation and benefits through COBRA.


 


D.  Employees
on the recall list are responsible for keeping the Company notified of any
change of address or phone.  If the
Company cannot contact a previous employee at the last known address, he will
be dropped from the recall list.


 


E.  A laid off
employee will remain on the recall list according to the following time limits:


 


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SENIORITY TIME LIMIT


 


	
  Probationers

  	
   

  	
  No Recall

  
	
  2 years or less

  	
   

  	
  2 years

  
	
  2 years to 5 years

  	
   

  	
  equivalent of seniority

  
	
  5 years and over

  	
   

  	
  5 years

  



 


ARTICLE 12


OPEN
JOBS


 


1.  Filling
Open Jobs


 


A.  Whenever the Company determines that an open
job exists in the Bargaining Unit (other than a Skilled Trades job):


 


1)  The Company will post notice of such opening
for forty-eight (48) hours.  Employees
who wish to apply for the opening must do so by putting a job bid form in the
Bid Box during the posting period.  Only
those employees who apply during such 48-hour period will be considered for the
job and will have a right to grieve the final selection.


 


2)  Any employee may submit a bid under the
provisions of paragraph 1) above on behalf of an employee who is on vacation or
leave of absence during the posting period. 
Employees on leave of absence will be considered, provided they will be
returning from leave in a reasonable period of time.


 


3)  Applicants will be awarded the open job on
the basis of seniority.


 


4)  A successful bidder will be transferred to
the open job within forty-five (45) calendar days after he is designated.


 


B.  When an open job exists in one of the
Skilled Trades classifications, the posting and bidding procedure outlined in
Subsection A above shall apply.  The job
will be awarded on the basis of seniority. 
However, employees who have previously held a job in the Skilled Trades
classification in which the open job exists, will be given priority.  Those employees bidding for the job who have
not previously held a Skilled Trades job will be required to take a standard
skills assessment test to verify qualification and aptitude for successful
performance.  Where no applicant
possesses the requisite qualifications, the Company may determine whether to
train or hire on the outside.


 


2.  Successful
applicants will receive a rate of pay commensurate with previous experience,
qualifications, and training.


 


3.  Successful
applicants will be trained on the shift where suitable training conditions
exist, and will be moved to the posted shift as soon as practical after
sufficient skill levels are reached.


 


4.  Situations
where successful applicants either change their mind about a job or receive a
job failure will be reviewed by the Plant Council and appropriate actions taken
as agreed.


 


5.  If an
unqualified candidate is selected for a Skilled Trades position, the Training
and Education Committee will develop a two-year apprenticeship program,
including classroom and on-the-job assignments, which will provide
comprehensive exposure to all required skills for successful performance of the
job.  The program will be submitted to
the Plant Council for review and approval.


 


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ARTICLE 13


SEVERANCE
PAY


 


1.  In the
event that the Company transfers any equipment or jobs or any part thereof to
another location established by it beyond a twenty-five mile radius from the
center of West Trenton, NJ, and, in the future event, that such transfer is the
immediate cause of, or that such transfer directly or indirectly results in a
layoff of employees, any employee thus laid off shall have the option to elect
to take severance pay in lieu of such layoff subject to the provisions below:


 


A.  In the event that such transfer as described
above, results in a bumping of employees without a layoff, any such bumped
employee who is entitled under the provisions of this Agreement to another job
covered by this Agreement, which would result in a loss of less than $1.00 per
hour in wages below the job from which he is being bumped or from which he was
originally bumped because of a transfer within the time limit, shall not be
entitled to severance pay.


 


Any such employee
thus bumped who is not entitled under the provisions of this Agreement to
another job covered by this Agreement which would result in a loss of less than
$1.00 per hour in wages below the job from which he is being bumped, or from
which he was originally bumped because of a transfer within the time limit,
shall have the option to elect to take severance pay in lieu of the job to
which he is entitled under the provisions of this Agreement.


 


B.  When a layoff or bumping as a result of a
transfer, occurs between the date of the transfer and within the following two
years, employees in such layoffs or bumping with more than one year seniority
shall have a claim on severance pay.


 


C.  When a layoff or bumping, as a result of a
transfer, occurs two years after the date of the transfer, but within five
years of the transfer, employees in such layoff or bumping shall have a claim
to severance pay, when the length of their seniority is more than the time
period between the date of the transfer and the date of the layoff or bumping.


 


D.  When the layoff or bumping as a result of
the transfer, occurs five years or more after the date of the transfer, there
shall be no claims for severance pay.


 


E.  Severance Pay


 


1)  To elect to take such severance pay in lieu
of layoff or bumping, the employee must advise the Company of his election in
writing, delivered to it within 90 days after the commencement of the layoff or
incident of bumping.  Severance pay
shall be computed on the basis of forty hours pay at the employee’s regular
straight time hourly rate, at the date of the commencement of the layoff or
incident of bumping, for each year of seniority since the date of the last
hire.


 


2)  The Company will increase the severance pay
from 1 week to 2 weeks per year of service whenever productivity increases an
average of 1% a month.  Otherwise,
severance pay of 1 week will apply.


 


Formula:


 


+ West Trenton Plant
Sales Dollars


+ Transfers to Hartsville
and Warehouse in Sales Dollars


+/- Change in WIP +
Finished Goods Inventory


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


= Output


 


Hours = Total straight
time + overtime hours


Output = Productivity
Measure Hours


 


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F.  Severance pay hereunder shall be paid to an
electing employee within one year after the receipt by the Company of the
notice of election and, upon payment of severance pay in a lump sum, the
employee shall thereafter have no further seniority, recall or other rights as
an employee of any kind or nature, except the right to vacation pay due to him
under Article 23.


 


G.  Seniority employees on extended sick leave
have no claim under the above provisions.


 


2.  Until such
a time as the Plant Closing Notification laws go into effect, the Company will
give the employees 45 days advance notice of an imminent plant closing as the
laws’ language pertains.  When the law
goes into effect, it will comply fully with the language of the law.


 


ARTICLE 14


LEAVE OF
ABSENCE


 


1.  Types and Conditions of Leave


 


A.  Personal Leave


 


Upon written application, a leave of absence for a specified purpose,
and a specified period of time may be granted to employees with the mutual
consent of the Company and the Union.  A
copy of such leave is to be given to the Union.


 


B.  Union Leave


 


Members of the Union, not to exceed one (1) for every
forty (40) represented employees at any one time, elected or appointed by the
Union to assignments which take them away from their employment with the
Company, shall be given a leave of absence for the period of such Union
assignment, and upon return to work for the Company shall be re-employed on the
same job which they performed at time of leave and at the rate of pay
prevailing for that job.


 


Duly elected Union representatives, not to exceed one
(1) for every forty (40) represented employees at any one time, shall be
granted leaves of absence for short periods to attend Union Conventions and
similar Union functions.


 


The Union will give the
Company as much notice as possible whenever more than two Union representatives
will be out of the plant simultaneously.


 


C.  Sick Leave


 


An employee, who may
become ill or injured and qualify for non-occupational state disability, and
has supported his absence with satisfactory evidence similar to that required
under the Company’s Family and Medical Leave policy, shall, upon application,
be granted an unpaid leave of absence. 
The employee must provide medical evidence of continued disability as
required.


 


An employee on SLOA or
workers’ compensation will not receive an attendance infraction for absenteeism
but they will not qualify for Perfect Attendance.


 


In all instances, upon
returning to work, a statement must be presented from a qualified physician
stating the employee is physically capable of performing his regular job
assignment.  The Company reserves the
right to obtain a second opinion from a qualified physician designated by the
Company and at the Company’s expense. 
The employee will return to his previous job provided work is available
and he has the seniority to do so.  If
the leave was an approved FMLA Leave for personal disability, he will return to
his previous job or a comparable job. 
Otherwise, he will be eligible to bump another job, subject to the
seniority provisions of this Agreement, and provided he has the skill and
ability to perform the work.


 


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D.  Family and
Medical Leave


 


It is understood that all
of the leave provisions herein shall be administered in a manner consistent
with an employee’s rights, if any, under applicable family and medical leave
statutes.  Likewise, it is the parties’
intent that the Company shall have the right to exercise any rights of an
employer under such applicable statutes.


 


E.  Maternity Leave


 


Employees absent from
work due to pregnancy shall be granted Sick Leave as described above, provided
the required application, approvals, 
procedures and proof of medical disability are followed as outlined in
the Company’s FMLA Policy and  conform
to current applicable laws concerning maternity absences.  A leave of absence for pregnancy may be
extended up to three (3) months following delivery,  without loss of seniority or service.  In all instances, upon returning to work following a delivery, a
statement must be presented from the family physician stating the employee is
physically capable of performing her regular job assignment.


 


F.  Funeral Leave


 


A seniority employee who
has a death occur in his immediate family (father, step-father, mother,
step-mother, husband, wife, brother, step-brother, sister, step-sister, child,
father-in-law, mother-in-law) will be excused from work up to three days.   A seniority employee whose grandchild,
step-child, grandparent(s) or spouse’s grandparent(s) pass away, will be
excused from work for one day.


 


For each such day of
absence on which he otherwise would have worked and does not work, he shall be
paid eight times his regular straight time hourly rate, provided the employee
attends the funeral and submits proof of death.  In the case of death in foreign residence, a death certificate is
required.


 


G.  Jury Duty


 


A seniority employee who
is called to and reports for jury duty shall be excused from work on the days
on which he serves or where jury duty was canceled after he reported to
serve.  In addition, he shall receive
for each day of jury service on which he otherwise would have worked and does
not work, eight times his regular straight time hourly rate.


 


Such payments shall not
exceed a total of twenty (20) days in any calendar year.  Such compensation shall be payable only if
the employee gives the Company prior notice of such jury duty call; and
presents proper evidence as to the jury duty performed.


 


H.  Military Leave


 


The Company will conform to the requirements of any
applicable provisions of law with respect to military training or service.


 


2.  Leave Provisions


 


A.  Any employee on leave may return to work in
line with his seniority, before the expiration of the leave, providing not less
than seven (7) calendar days notice is given to Management.


 


B.  Employees who are approved for Personal
Leave will be required to apply any remaining vacation days to the beginning of
the leave period commencing with the first day of the leave.


 


C.  Employees who are approved for Personal
Leave, Union Leave, Sick Leave, Military Leave (except for yearly two-week
encampments), Family and Medical Leave and Maternity Leave will be granted such
leave without pay.


 


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ARTICLE 15


OVERTIME


 


The regular work week
will be scheduled as eight (8) hours a day, forty (40) hours per week, as long
as, in the Plant Council’s judgment, it is practicable and consistent with the
efficient operation of the plant.


 


Overtime opportunities
will be substantially equalized within a Production Work Group, between those
employees with the appropriate skill level for the required work.  Work Groups will develop and administer
their own plans for a fair and consistent scheduling and regulation of overtime
opportunities within the group.   The
Plant Council will develop plans for a fair and consistent scheduling and
regulation of overtime opportunities between Work Groups, which will be
administered by the Work Groups.


 


In the case of Saturday
work, announcement prior to 9:00 a.m. on the previous Thursday will be
considered as sufficient.  In the event
that this work is canceled after that time, the Company will compensate the
affected employee at the rate of four (4) hours overtime pay.


 


Employees will be paid
time and one-half for:


 


a)  Time worked in excess of eight hours in any
continuous twenty-four hours, beginning with the starting time of the
employee’s regularly assigned shift.


 


b)  All work performed in excess of forty (40)
hours in any normal work week


 


c)  All time worked on any shift which starts on
Saturday.


 


Double time shall be paid
for:


 


a)  All work performed on Sundays and holidays,
except the 1st hour of the normal night (third) shift and as provided under
Article 24.


 


ARTICLE 16


WAGES AND OTHER COMPENSATION


 


1.               Effective July 1,
2001 a three percent (3%) general increase will be applied to all individual
rates of pay of each member of the bargaining unit.  Employees who are not on the active roll at the time of the
general increase will receive the increase adjustment at the time they return
to the active roll.


 


2.               Effective July 1,
2002 a three and one-half percent (3 1⁄2%) general increase will be applied to
all individual rates of pay of each member of the bargaining unit.  Employees who are not on the active roll at
the time of the general increase will receive the increase adjustment at the
time they return to the active roll.


 


3.               Effective July 1,
2003 a three and one-half percent (3 1⁄2%) general increase will be applied to
all individual rates of pay of each member of the bargaining unit.  Employees who are not on the active roll at
the time of the general increase will receive the increase adjustment at the
time they return to the active roll.


 


4.  Classifications and Pay for
Knowledge and Skills


 


a)  The new system will consist of three
classifications:


 


Production


Skilled Trades (Maintenance)


Skilled Trades (Tool
Room)


 


11

















 


Furthermore, within each
classification, there will be four levels of training:


 


Basic


Core


Intermediate


Advanced


 


Training will be provided
in each level, as necessary, and as determined by the Education and Training
Committee in consultation with the Work Groups and with final approval by the
Plant Council.


 


b)  Pay rates for each classification and level
are listed in back of book – Appendix A


 


c)  Each employee assigned to a Work Group will
be required to complete the Basic and Core levels of training for that
group.  Intermediate and Advanced level
training shall be voluntary.  However,
if management of the Work Group determines that insufficient intermediate and
advanced levels of training are available within the Group, it may resort to
necessary measures which may include transfers.


 


d)  The three-classification and pay for
knowledge and skills system is designed to create greater flexibility and
efficiency, and is not designed to reduce the work force.  Therefore, during the term of this
Agreement, there will be no layoffs of bargaining unit employees as a direct
result of the institution of this system. 
However, it is mutually agreed that the Company retains the right to
adjust the size of the work force due to business, market or other such
conditions.  Moreover, management of the
Work Groups will be free to assign employees in accordance with the knowledge
and skill levels they have attained.


 


ARTICLE 17


PERFECT ATTENDANCE/SERVICE TIME AWARD


 


6.   Employees
who have perfect attendance by working all regularly scheduled hours (not
including overtime) in any specified quarter will earn a $150.00 Perfect
Attendance Award for that period.  For
purposes of this award, perfect attendance is defined as no available hours
missed for unexcused absences, illness or injury, discipline, leave of absence,
or strike.


 


An employee on SLOA or workers’ compensation will not
receive an attendance infraction for absenteeism but they will not qualify for
Perfect Attendance.


 


7.   Employees actively at work
on March 31 with more than five (5) years seniority will receive $9 a year for
each year of service as a Service Time Award. 
Service time will be calculated each year on March 31 and the award will
be paid on April 30.


 


ARTICLE 18


NEW
PRODUCTS


 


1.  When and
if, from time to time, the Company, at its discretion, decides to manufacture a
different product, new to the plant, it may create a new Work Group or
otherwise staff the production of such product by means of recalling or
rehiring experienced employees or by means of new hires.  If the Company believes that the skills
and/or knowledge needed to produce such product on an efficient and profitable
basis are substantially different than the skills and knowledge in the existing
Work Groups:


 


a)  the Company will install a wage range for
the positions;


 


b)  the wage range will be explained in the
Plant Council with the object of obtaining a consensus agreement.  The wage program may be installed by the


 


12

















 


Company without a
consensus agreement in the Plant Council subject to adjustment as provided
below;


 


c)  when a wage range is installed, the Union
may process the issue in accordance with Article 29 below, including submission
to arbitration of a grievance alleging that such does not bear a fair
relationship to the wage structure in the plant.  The decision of the arbitrator, if any, shall be effective as of
the date when the employee(s) commenced manufacturing such different product.


 


ARTICLE 19


SHIFT PREMIUM


 


1.   A shift
premium of 10% of the regular hourly rate will be paid to all employees
whenever they are assigned to and working on the afternoon and night shifts for
the life of the contract.


 


2.  Where
scheduled variations from the regularly scheduled shifts occur, the jobs
involved will be considered as falling on the shift on which a major part of
the job is worked.


 


3.  Any
employee who is called in to perform work in the shift preceding or succeeding
his regularly assigned shift, or who holds over beyond his regularly assigned
shift, will be paid the shift premium, if any, applicable to the shift on which
a major portion of his regular scheduled hours are worked.  However, when an employee on the Day Shift
or the Afternoon Shift works twelve or more continuous hours per day, including
paid lunch period, he shall be paid the applicable shift premium for all hours
worked over eight.


 


4.  Shifts
shall be identified as follows:


 


(a)  Day Shift - (1st Shift)


When the majority of
hours on an employee’s regularly assigned shift shall fall between 7:00 a.m.
and 3:00 p.m., inclusive, he shall be considered as working on the Day Shift.


 


(b)  Afternoon Shift - (2nd Shift)


When the majority of hours
on an employee’s regularly assigned shift shall fall between 3:00 p.m. and
11:00 p.m., inclusive, he shall be considered as working on the Afternoon
Shift.


 


(c)  Night Shift - (3rd Shift)


When the majority of
hours on an employee’s regularly assigned shift shall fall between 11:00 p.m.
and 7:00 a.m., inclusive, he shall be considered as working on the Night Shift.


 


5.  An employee
on 2nd or 3rd shift, who has been awarded a new job on either 2nd or 3rd shift,
and who, for the Company’s convenience has been temporarily transferred to day
shift for training, shall receive shift premium during the period of such
training.  New employees will only be
paid shift premium, when transferred to the applicable shift(s).  Day shift personnel will be paid under other
applicable provisions of the Contract.


 


ARTICLE 20


PAID BREAK AND LUNCH PERIODS


 


All employees will
receive two (2) Company-paid, twenty (20)-minute paid breaks each shift. The
Work Groups will be responsible for scheduling break times for the group.


 


Employees are encouraged
to remain on Company property during break times.  Those who remain on Company property are not required to clock
out, whereas those who leave the grounds, must clock out and back in upon their
return to the plant.


 


13

















 


Employees who remain on
Company property must take their breaks only in the cafeteria, rest rooms, or
on the Company grounds and parking lots. 
Breaks may not be taken on the manufacturing floor.


 


All vending machines will
be located in the cafeteria and all profits generated will go to the Union’s
activity fund to be expended as they decide.


 


ARTICLE 21


REPORTING
PAY


 


1.  Any
employee who has not been notified when there is lack of work, and therefore
reports to work as scheduled, shall receive four (4) hours pay at his regular
hourly rate, unless the lack of work is caused by circumstances beyond the
control of the Company, or resulted from a labor dispute, or alternative work
was made available, or the employee could not be reached because of an outdated
phone number.


 


2.  If an
employee is asked to return to work after completing his shift and leaving the
plant or he is asked to come in to work when he was not already scheduled, he
will be paid the applicable overtime rate for the work.  If the call back time is less than three
hours, he will receive his regular rate of pay for the difference between the
hours worked and three hours.


 


ARTICLE 22


TEMPORARY TRANSFERS


 


Employees may be temporarily transferred to other jobs,
within the Work Group and outside the Work Group, as required to meet
production needs.  Employees will not be
temporarily transferred between classifications except with the employee’s
consent or in order to deal with the production needs of the business on the
last three work days of the production month.


 


ARTICLE 23


VACATIONS


 


	
   

  	
  1.

  	
  Current Vacation Year is defined as the current
  twelve months between June 1 and May 31.

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Vacation pay = hours worked x applicable % x
  straight time rate with night premium in effect on June 1 of the current
  vacation year

  
	
   

  	
   

  	
  Or

  
	
   

  	
   

  	
  Vacation pay = gross wages x applicable %

  
	
   

  	
   

  	
  Whichever pay is
  greater

  



 


A.  Vacation Pay Schedule:


 


	
   

  	
   

  	
  Eligible Time Off

  	
   

  	
  Applicable %

  
	
  6 mos. less than 1 year

  	
   

  	
  1 week

  	
   

  	
  2

  
	
  1 year less than 2 years

  	
   

  	
  1 week 2 days

  	
   

  	
  2.8

  
	
  2 years less than 3 years

  	
   

  	
  1 week 4 days

  	
   

  	
  3.6

  
	
  3 years less than 5 years

  	
   

  	
  2 weeks 2 days

  	
   

  	
  4.8

  
	
  5 years less than 7 years

  	
   

  	
  2 weeks 3 days

  	
   

  	
  5.2

  
	
  7 years less than 9 years

  	
   

  	
  2 weeks 4 days

  	
   

  	
  5.6

  
	
  9 years less than 11 years

  	
   

  	
  3 weeks

  	
   

  	
  6.0

  
	
  11 years less than 13 years

  	
   

  	
  3 weeks 1 day

  	
   

  	
  6.4

  
	
  13 years less than 15 years

  	
   

  	
  3 weeks 2 days

  	
   

  	
  6.8

  
	
  15 years less than 17 years

  	
   

  	
  3 weeks 3 days

  	
   

  	
  7.2

  
	
  17 years less than 19 years

  	
   

  	
  3 weeks 4 days

  	
   

  	
  7.6

  
	
  19 years less than 21 years

  	
   

  	
  4 weeks

  	
   

  	
  8.0

  
	
  21 years less than 23 years

  	
   

  	
  4 weeks 1 day

  	
   

  	
  8.4

  
	
  23 years and over

  	
   

  	
  4 weeks 2 days

  	
   

  	
  8.8

  



 


B.  Factor for Computed Clock Hours Calculation


 


14

















 


1)  Calculation:


 


a)  Between 1500 hours and 2000 clocked worked
hours shall be paid at 2000 hours


Vacation = 2000 x
applicable % x straight rate with night 
premium in effect on June 1 of the current vacation year


 


b)  Over 2000 clocked worked hours -


Vacation pay = hours
worked x applicable % x straight time rate with night premium in effect on June
1 of the current vacation year


 


Or


Vacation pay =
gross wages x applicable %


whichever is
greater


 


c)  Less than 1500 clocked hours of work


Vacation pay = gross
wages x applicable %


 


2)  For the purpose of computing clocked hours,
any hours lost because of a work week scheduled under forty (40) hours (except
as listed in Paragraph 3.a.) or hours paid for negotiating time and Plant
Council meeting time which fall in the earnings period shall be counted as
clocked hours.


 


3)  Clocked hours shall be computed in full
calendar weeks, Starting with the Monday before June 1, or June 1, if it falls
on a Sunday or Monday of the previous vacation year.


 


a)  Time lost, during the earnings period, in
any work week under forty (40) hours because of a shutdown due to holiday,
vacation, power failure, storm, strike, fire or cause beyond the power of the
Company, shall not be considered clocked hours.


 


b)  Earnings Period covers from June 1 to May 31
of the preceding vacation year. 
Earnings Period shall be computed in full calendar weeks, in the same
manner as clocked hours.


 


3.  Vacation schedules may be canceled in the
event of a National Emergency. 
Employees affected shall receive vacation pay on the same basis as
outlined in the Vacation Pay Schedule.


 


4.  Vacation Payment after Separation


 


A.  Employees who die, or go on leave or lay
off, on or before May 31of the preceding vacation year shall be issued the
Vacation Pay for which they qualify under the above Sections.


 


B.  Employees who leave before December 31 of
the preceding vacation year for any reason other than those listed in 4.A.
above, are not eligible for Vacation Pay.


 


C.  Anyone leaving the employ of the Company
between December 31st of the preceding vacation year, and the following May
31,  who qualified for vacation pay,
shall receive that pay based on the applicable percentage of their wages earned
between the previous June 1st and their date of leaving.


 


D.  Anyone retiring between December 31st of the
preceding vacation year, and the following May 31, shall be issued the vacation
pay for which they qualify.


 


15

















 


6.  An employee who returns to work from a
Military Leave and who has not been back at work for a full year on June 1 of
the current vacation year will be paid his applicable percentage of 2000 hours,
times the total of his June 1 regular straight time hourly rate and applicable
shift premium.


 


8.  Vacation Time:


 


A)          Vacation may be taken as
1/2 days (4 hrs), one day at a time or weekly or any variety of the above.


 


B)            A vacation request
form must be completed, approved, and turned in to Human Resources on Mondays
at 8am for proper payroll processing.


 


C)            Employees may take a
vacation day in place of being off sick by notifying their supervisor prior to
the start of their shift. Their perfect attendance money and attendance record
will not be affected.


 


D)           Employees may choose
either a lump sum or “pay as you go” method for vacation pay.  Employees must elect their vacation payment
method by May 1 of the vacation year.


 


E)             Lump sum payments
will be made by the end of the second full week in June.


 


F)             Any balance of money
owed for “pay as you go” vacation not used during the year will be paid by the
first full week in June.


 


G)            RBC will have advanced
vacation checks ready on the payday of the week before the employee goes on
vacation, or write a replacement check the same day.  This applies to pre-approved vacation of one week or more in the same
week with two weeks notice.


 


ARTICLE 24


HOLIDAYS


 


1.  Hourly
rated employees shall be paid for the following Holidays without work being
performed, provided they meet the eligibility requirements described below:


 


	
  New Year’s Day

  	
   

  	
  December 24

  
	
  Good Friday

  	
   

  	
  Christmas Day

  
	
  Memorial Day

  	
   

  	
  Three (3) weekdays between

  
	
  Independence Day

  	
   

  	
  Christmas Day
  and December 31

  
	
  Labor Day

  	
   

  	
  December 31

  
	
  Thanksgiving Day

  	
   

  	
   

  
	
  Friday following Thanksgiving Day

  	
   

  	
   

  



 


In applying this
procedure, when any of the above enumerated holidays falls on Sunday the day
following (Monday) will be observed as the holiday and it shall be paid as such
holiday.  When any of the above
enumerated holidays falls on Saturday the previous day (Friday) will be
observed as the holiday and it shall be paid as such holiday.


 


2.  To be
eligible for Holiday Pay, an employee must have completed his probationary
period and have worked the last scheduled work day before and the next
scheduled work day after the holiday within the same work week or have an
acceptable explanation for not doing so.


 


3.  Eligible employees shall
receive eight (8) hours’ pay at their regular straight time hourly rate
exclusive of night shift and overtime premium for each of the paid holidays.


 


4.  If work is
performed on these holidays, employees shall, in addition to the regular
holiday payment, receive twice their regular hourly rate for hours actually
worked,


 


16

















 


exclusive of night shift and overtime premium.  Employees who have accepted such holiday
work assignment and then fail to report for and perform such work without
reasonable explanation, shall not receive pay for the holiday.


 


ARTICLE 25


401K


 


1.               A non discretionary
Company contribution on behalf of each covered employee, in the amount of four
(4) percent of gross wages will be deposited in each account monthly. An
additional contribution on behalf of certain current older employees designed
to replace the contribution made to the former defined pension plan will be
deposited yearly.


 


2.               In addition to
their regular contribution of 4%,  the
Company will contribute an additional one (1%) percent on any employee
contributions of 10% or more to their 401K.


 


3.               Loans will be
permitted on moneys contributed by the employee. You must be a plan participant
for one year before you may take a loan.


 


4.               Loans are allowed
for the following reasons:


Purchase of, or
renovations to a primary home


Unreimbursed medical
expenses


Secondary tuition for
yourself or your dependents


Avoid eviction from or
foreclosure to your primary home


 


5.               Minimum loan:  $1000; Maximum loan:  50% of vested account value, or $50,000
(whichever is less)


 


ARTICLE 26


PERSONAL INJURIES/WORKERS’
COMPENSATION


 


1.  Return to work from injury and/or illness -
Not Work Related


 


A.  An employee who has been incapacitated by a
personal injury or illness may return to work when he is able to return to
their regular job with no restrictions. 
Full duty with no restrictions.


 


2.  Procedures for Handling On-the-Job Injuries


 


A.  When injured on the job, employees must use
the medical facilities made available by the Company for all services in
connection with the injury.  Any
employee who bypasses the Company facilities will act on his own responsibility
insofar as the expense involved.


 


B.  Employees who, while at home, require
emergency medical attention for injuries sustained at work, will report to the
Capitol Health System - Mercer Campus or Helene Fuld Campus emergency room.


 


C.  Employees who are injured at their work in
the plant and sent to the hospital, shall, if they are sent home from the
hospital, receive pay at their regular rate for the balance of their shift or
time in the hospital, whichever is less. 
This applies to the first time they are sent home for such injury.


 


1)  Doctor visits on day shift will be scheduled
to finish not later than normal quitting time, if possible.


 


D.            The Company may elect
to provide work for workers’ compensation illnesses or injuries provided the
work available meets the physical restrictions outlined by the attending
physician.


 


E.               If an employee
disputes the treatment or course of action taken by the attending physician he
may request a second opinion through the workers’


 


17

















 


compensation
carrier.  A second opinion must be approved
by the workers’ compensation carier for all medical treatment to be paid.


 


ARTICLE 27


SAFETY
AND HEALTH


 


1.  The Company
agrees that it will provide sanitary and safety devices within the plant.  The Union agrees that the employees will
take proper care of such equipment.


 


2.  A Company
Representative and Union President, or his designee, will tour the shop once
per month during working hours to review matters for safety and health.


 


3.  Safety and
Environmental Committee


 


A.  The Company and Union will expand its Safety
Committee to include responsibility for analyzing and correcting unsafe and
unhealthful working conditions inside the plant, insuring that the plant does
not pose a threat to the outside environment, and overseeing training on
health, safety, and environmental issues.


 


B.  The Committee will consist of two (2)
persons appointed by the Union President and two (2) persons appointed by the
RBC Plant Manager.


 


C.  The Committee will meet at least once per
month or as often as necessary.


 


D.  The Committee will conduct regular
inspections of the different areas of the plant to ensure that conditions are
not hazardous.  Reports of these
inspections will be given to the Work Groups that were inspected and to the
Plant Council.


 


E.  Employee training required by law regarding
Health and Safety will be separate from the minimum time for training required
in the Training and Education Section of this Agreement.  Such training, however, will be part of the
Training and Education Committee’s regular plan.


 


4.  Safety
Glasses


 


A.  The Company will provide up to $110 ($25
credit for exam and $85 for glasses) for each employee purchasing prescription
safety glasses once per contract year. 
Policy choices will be explained when PO is issued.   All doctor’s and lab visits will be made on
the employee’s own time.


 


B.  The Company will supply non-prescription
Safety Glasses.


 


C.  Employees are responsible for the care of
their safety glasses (prescription and non-prescription).  The Company will replace any glasses that
are broken during the course of work.


 


D.  Safety glasses are required on the shop
floor.


 


5.  Safety Work
Shoes - Under the shoe policy, one pair of work shoes per year will be
provided.  Payments will be made in
accordance with current safety shoe policy.


 


ARTICLE 28


UNION
FACILITIES


 


The Company agrees to
provide the Union with a suitable Bulletin Board on which it may post notices,
provided such Union notices deal with meetings, election of officers,
appointment of committees and other non-controversial matters concerning the
affairs of Local 502, U.A.W.


 


18

















 


The Company will provide
the Union officials with office space, as well as telephone and computer
services, for use in conjunction with performance of their duties under the
terms of the Agreement.


 


ARTICLE 29


DISPUTE
RESOLUTION


 


It is recognized that,
from time to time, disputes will arise, and that, although every effort will be
made to resolve issues at the source, resolution will not always be reached
without intervention from others.


 


Disputes on the shop
floor will first be discussed with the affected employees and supervisors, as
appropriate,  in an attempt to settle
the issue.   If the matter cannot be resolved,
the aggrieved employee may request that the Supervisor call a member of the
Union Plant Committee to discuss the issue.  
Other disputes will be handled at the level that they arise.  All disputes involving discipline or
affecting employment will be reviewed by the Plant Council.


 


If the dispute cannot be
resolved at the first level, a member of the Union Plant Committee may submit
the dispute as a written grievance, along with all the facts, to the Plant
Council, not more than ten (10) days after the dispute arose.   A meeting will be scheduled within one (1)
week of such submission to review the issues with the Plant Council and the
appropriate parties.


 


If the Plant Council
cannot find resolution of the issue acceptable to the affected employee, the
issue will be discussed in a meeting with the Plant Council and the UAW
International Representative and individuals selected to represent the
Company.  If the issue cannot be
satisfactorily resolved at this meeting, the Company will respond in writing to
the issue within five (5) days after the meeting.  At that time, the party who raised the issue may demand final and
binding arbitration.  In order to demand
arbitration, the party must submit its demand, in writing, within thirty (30)
days after the dispute was submitted as a written grievance.   This thirty (30)-day time limit can only be
extended by consensus of the Plant Council, and then only for thirty (30)
additional days.  A log will be kept of
all written grievances in order to comply with the timeliness provisions.


 


Arbitration will be in
accordance with the Rules of Voluntary Labor Arbitration of the American
Arbitration Association and a dispute may be submitted to arbitration by filing
a Demand for Arbitration in accordance with such rules within thirty (30) days
of the submission of the grievance to arbitration.  If made within the scope of the authority of the Arbitrator, the
decision of the Arbitrator upon the issues submitted shall be final and binding
upon the parties to the Agreement.


 


The compensation and
expense of the Arbitrator and the Arbitration proceedings shall be borne
equally by the parties.


 


ARTICLE 30


LIVING
AGREEMENT


 


In keeping with our Philosophy Statement, this is a
“Living Agreement”.  As a “Living
Agreement,” both the Union and Management understand that there may be issues
that arise during the implementation of this Agreement that have not been
addressed or discussed during bargaining.  
However, it may only be modified through consensus of the Parties.


 


ARTICLE 31


INSURANCE


 


1.              Insurance Benefits -
Active Employees


 


1)              Subject to the
provisions of this Agreement, life insurance and AD&D Insurance will be
procured by the Company for all regular employees for the life of this
contract.  This insurance will be
provided at no


 


19

















 


expense to the
employee.


 


2)              Life insurance is
valued at $20,000 and AD&D is valued at $40,000.


 


3)              The group medical
and prescription plans will be provided to eligible employees and dependents
for the life of this contract. The prescription plan will provide mail order
provisions for qualified maintenance drugs. 
The Company will select the carrier and reserves the right to change
carriers.


 


The medical and
prescription plan premium on 5/1/01 is the “2001 premium” for calculating
increases in company and union employee contributions.


 


1.  The shared cost for the first year of the
contract is as follows.  The company
will pay the 2001 premium and union employees will pay $25.00.


 


2.  The premium increase between 5/1/01 and
5/1/02, 2002 premium, will be shared as follows:


 


A.           The company will first
pay premium increases calculated as follows. 
2001 premium X 112.5%


 


B.             The balance of the
premium increase, 2002 premium – (minus 2001 premium X 112.5%) will be shared
as follows:


 


(1)          80% will be paid by the
company


 


(2)          20% will be paid by the
union employees


 


(3)          The union paid premium
increase will be added to $30.00


 


3.  The premium increase between 5/1/02 and
5/1/03, 2003 premium, the premium will be shared as follows:


 


A.           The company will first
pay premium increases calculated as follows. 
2002 premium X 112.5%


 


B.             The balance of the
premium increase, 2003 premium – (minus 2002 premium X 112.5%) will be shared
as follows:


 


(1)  80% will be paid by the company


 


(2)          20% will be paid by the
union employees


 


(3)          The union paid premium
increase will be Added to their 2002 rate


 


Any changes to the
present health/prescription insurance carrier will be equal or better than the
current coverage.


 


4)              The Union will have
the right to discuss insurance rates and medical plan coverage changes.  In order to improve health insurance costs
and coverage the Union will work with RBC and the insurance carrier during the
60 day period following notification of the rate change by the carrier.


 


5)               Group medical and
prescription plans, dental and life insurance plans will remain in effect for
all active employees, employees on disability and employees on approved Family
Leave of Absence.


 


6)              The Company will
procure a group dental plan for the life of this contract.  This dental plan will be provided at no
expense to the employee.  Such plan
shall be evidenced by a written agreement conforming to the requirements of
law.


 


B.  Employees hired on or after the effective
date of this Agreement shall be eligible for the above plans after they
complete their probationary period.


 


20

















 


C.  All administrative expense shall be borne by
the Company and the Company shall determine all administrative procedures which
may be required to execute such a program.


 


D.  Employee weekly medical co-pay
contribuitions will be deducted on a pre-tax basis and will be automatically
deducted from the pay of employees who are enrolled in the plans.  Employees on the disability, workers’ comp,  temporary disability, or an approved leave
of absence will be expected to make monthly contributions toward their
co-pay.  Employees who are on layoff and
eligible to receive benefit continuation will receive that coverage at no
cost.  Employees who enroll in the plan
will be covered for individual or family coverage as applicable.


 


2.  Insurance Benefits - Retirees


 


A.  The following identifies requirements for
retirement from the Company with respect to benefit continuation eligibility
and benefit coverage.


 


1)  Retirees are defined as employees who
terminate their employment with the Company, and are, at the time of
termination, at least age sixty-five (65) or are eligible for Medicare
benefits, and have at least ten (10) years of service with the Company.


 


2)  Early Retirees are defined as employees who
terminate their employment with the Company, and are, at the time of
termination, at least sixty (60) years of age, and who have at least ten (10)
years of service, but are not yet eligible as Retirees.   Early Retirees who leave the Company, but
who later meet the eligibility requirements as Retirees will be considered
thereafter to be eligible for benefit continuation and coverage for Retirees.


 


B.  Early Retirees may continue on the active
employee’s medical, prescription and dental plans described above until age 65
or until they become Medicare eligible. Such coverage will also apply to
spouses of retirees.  The coverage,
active or Medicare, will depend of the spouse’s age.


 


(1)          A monthly co-pay per
household, payable in advance, for all employees who retire prior to age 65, or


 


(2)          When an Early Retiree is
totally disabled, continuation will remain in effect by paying the current
active co-pay.  Continuation will be
available for a period of up to two (2) years provided the early retiree does
not become eligible for Medicare.  After
two years the early retiree can remain in the active employees’ plan by paying
the  monthly medical co-pay until they
are 65 years of age.  At 65 years the
employee will be transferred to Medicare coverage as provided under the length
of the contract.


 


(3)          Early retirees spouses
will have 6 months of additional coverage beyond the death of the RBC early
retiree,  provided, the spouse continues
to pay the monthly medical co-pay.


 


C.  Retirees age 65 who become Medicare eligible
are no longer eligible for coverage under the active employee benefit
plans.  They are eligible for the
following coverages for the life of this contract:


 


(1)          Life insurance in the
amount of $6,500 procured and paid by the Company.


 


(2)          Any retiree may purchase
and pay for any Medicare supplemental coverage and upon proof of purchase will
be reimbursed the Company’s portion of the monthly premium for the life of this
contract.


 


21

















 


(3)          Surviving spouses will
continue to receive the Company’s monthly Medicare reimbursement for 6 months
beyond the death of the RBC retiree provided they submit proof of continued
insurance coverage.


 


C. 3.  Insurance Plans - General
Information


 


A.  Terms of any contract issued by an insurance
company shall be controlling in all matters pertaining to benefits thereunder
and it is understood that the grievance procedure of any collective bargaining
agreement between the parties hereto shall not apply to this plan of insurance
or any insurance plan in connection therewith.


 


B.  All insurance is term insurance without
cash, loan or paid up values.


 


C.  All of the benefits provided under a health
care carrier to an employee or his dependents, if any, are subject to the
coordination of benefits provisions of the medical care contract.


 


4.  Insurance Plans - Termination of Employment


 


A.  TERMINATION
SCHEDULE


 


	
   

  	
   

  	
  Life

  	
   

  	
  AD&D/Medical/Dental/

  Prescription Drugs

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quit

  	
   

  	
  Same day

  	
   

  	
  Same day

  
	
  Discharge

  	
   

  	
  Same day

  	
   

  	
  Same day

  
	
  Layoff

  	
   

  	
  Six months

  Same day AD&D

  	
   

  	
  Six months – Medical

  
	
  Services

  	
   

  	
  Six months

  	
   

  	
  Same day

  
	
  * Leave of Absence

  	
   

  	
   

  	
   

  	
   

  
	
  Personal

  	
   

  	
  Six months

  	
   

  	
  Sixty days

  
	
  Union

  	
   

  	
  Six months

  	
   

  	
  Six months

  
	
  Sick or Injury

  (Non-Occupational)

  	
   

  	
  One year

  	
   

  	
  One year

  
	
  Maternity

  	
   

  	
  Six months

  	
   

  	
  Nine months from date of leaving or upon completion
  of pregnancy whichever occurs first.

  
	
  Sick or Injury

  (Occupational)

  	
   

  	
  Six months

  	
   

  	
  Until seniority acquired on last day worked is
  equaled by the period of time involved in the disability.

  
	
  Retirement

  	
   

  	
  Same day for AD&D only

  	
   

  	
  As per contract and age at retirement

  
	
  Strike

  	
   

  	
  Suspended

  	
   

  	
  Suspended

  



 


22

















 












*
Following the applicable period of subsidized coverage by the Company, employees
may pick up Life Insurance premiums through the Company to continue coverage
for the duration of the Leave of Absence.


 


A.  Employees 
on Leave of Absence are expected to maintain coverage by paying the
appropriate medical co-pay.  It is their
responsibility to contact the HR Department to arrange for payments.  Once Company subsidized coverage is ended,
employees may continue coverage under COBRA.


 


B.  Employees who request and receive severance
pay in a lump sum as outlined in this Agreement will thereafter have no further
rights to company-paid benefit continuation as described in this Article, but
may continue coverage under COBRA.


 


C.  Employees who are recalled from layoff and
are subsequently laid off again within one month of the recall date, will not
be eligible for insurance continuation as described above, but rather, all
insurance will be terminated as of the last day of work and they can apply for
COBRA.


 


D.  In no event will Company-paid insurance coverage continue for
longer than the initial six-month period. If an employee on the layoff list
refuses recall for the third time or refuses an offer of his original position
or is recalled but fails the job to which he is called his benefits will be
terminated and he will be offered COBRA.


 


5.  Insurance Coverage - Surviving Dependents


 


The Company will maintain
the current health benefits for surviving spouses and eligible dependent
children of deceased active members for 6 months from the date of death of the
employee for the life of this contract. 
The cost of this coverage will be paid by the Company.


 


ARTICLE 32


WAIVER
OF ANY CLAUSE


 


A waiver of any clause in
this contract does not mean a permanent waiver.


 


ARTICLE 33


NO
STRIKE-NO LOCKOUT


 


The Company agrees that
there shall be no lockout, and the Union agrees that there shall be no strike,
walk-out, slow-down, stoppage of or other interference with work, during the
term of this Agreement.


 


ARTICLE 34


DURATION OF AGREEMENT


 


This Agreement shall
remain in full force and effect until midnight, June 30, 2004, and thereafter
shall continue from year to year until either party gives the other ninety (90)
days prior written notice of a desire to change, modify or terminate same.  If neither party gives notice to terminate
this Agreement, but one or both of the parties gives notice as aforesaid of an
intention to change or modify any of the terms or provisions of this Agreement,
then within ten (10) days after such notice or not less than thirty (30) days
prior to the expiration of this Agreement, representatives of the Company, and
the Union shall meet to discuss, negotiate, and, if possible, agree upon such
changes.  In the event such Agreement
continues beyond the expiration date of this Agreement, then the terms and
conditions of this Agreement, shall remain in full force and effect until such
time as said negotiations have terminated, either by reason of the inability of
the parties to finally conclude a new Agreement, or because a new Agreement
between the parties has been concluded.


 


23

















 


This Agreement shall be binding on the parties hereto,
their executors, administrators, and successors.


 


IN WITNESS WHEREOF, the
duly chosen representatives of the parties hereto affix their hands and seals
this             day of
                ,
2002.


 


	
  FOR THE UNION:

  	
   

  	
   

  	
   

  	
  FOR THE COMPANY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Joseph Csik, Jr.

  	
   

  	
   

  	
   

  	
  Steven Koltenback

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jeffery Mann

  	
   

  	
   

  	
   

  	
  Barbara A. Loughlin

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nandor Palmai, III

  	
   

  	
   

  	
   

  	
   

  



 


APPENDIX
A


 


PRODUCTION JOBS


 


	
  Pay Rates

  	
   

  	
  7/1/01

  3%

  	
   

  	
  7/1/02

  3.5%

  	
   

  	
  7/1/03

  3.5%

  	
   

  
	
  Advanced

  	
   

  	
  17.48

  	
   

  	
  18.09

  	
   

  	
  18.72

  	
   

  
	
  Intermediate

  	
   

  	
  16.02

  	
   

  	
  16.58

  	
   

  	
  17.16

  	
   

  
	
  Core

  	
   

  	
  14.54

  	
   

  	
  15.05

  	
   

  	
  15.58

  	
   

  
	
  Basic

  	
   

  	
  12.79

  	
   

  	
  13.24

  	
   

  	
  13.70

  	
   

  
	
  Starting Rate

  	
   

  	
  10.60

  	
   

  	
  10.97

  	
   

  	
  11.35

  	
   

  
	
  Hire Rate

  	
   

  	
  8.84

  	
   

  	
  9.15

  	
   

  	
  9.47

  	
   

  



 


SKILLED TRADES JOBS


 


	
  Pay Rates

  	
   

  	
  7/1/01

  3%

  	
   

  	
  7/1/02

  3.5%

  	
   

  	
  7/1/03

  3.5%

  	
   

  
	
  Advanced

  	
   

  	
  19.84

  	
   

  	
  20.53

  	
   

  	
  21.25

  	
   

  
	
  Intermediate

  	
   

  	
  18.51

  	
   

  	
  19.16

  	
   

  	
  19.83

  	
   

  
	
  Core

  	
   

  	
  16.89

  	
   

  	
  17.48

  	
   

  	
  18.09

  	
   

  
	
  Basic

  	
   

  	
  15.73

  	
   

  	
  16.28

  	
   

  	
  16.85

  	
   

  
	
  Starting Rate

  	
   

  	
  14.12

  	
   

  	
  14.61

  	
   

  	
  15.12

  	
   

  
	
  Hire Rate

  	
   

  	
  11.76

  	
   

  	
  12.17

  	
   

  	
  12.60

  	
   

  



 


Monthly Medical
Co-pay for Early Retiree:


$135 per
month per family


 


Company’s Monthly
Contribution to Supplemental Medicare Health Insurance per Retiree/Spouse:


8/1/01 -
$43.17


8/1/02 -
$44.47


8/1/03 -
$45.80


 


24

















 


INDEX


 


ARTICLE


 


	
  1

  	
  Parties to the Agreement

  
	
  2

  	
  Philosophy Statement

  
	
  3

  	
  Union Recognition

  
	
  4

  	
  Union Security and
  Check-off

  
	
  5

  	
  Non-Discrimination

  
	
  6

  	
  Structure and
  Decision-Making Process

  
	
  7

  	
  Work Performed
  Outside the Bargaining Unit

  
	
  8

  	
  Training

  
	
  9

  	
  Probation Period

  
	
  10

  	
  Seniority

  
	
  11

  	
  Layoffs and Recall to Work

  
	
  12

  	
  Open
  Jobs

  
	
  13

  	
  Severance Pay

  
	
  14

  	
  Leave of Absence

  
	
  15

  	
  Overtime

  
	
  16

  	
  Wages and Other
  Compensation

  
	
  17

  	
  Perfect
  Attendance/Service Time Award

  
	
  18

  	
  New Products

  
	
  19

  	
  Shift
  Premium

  
	
  20

  	
  Paid Break and Lunch
  Periods

  
	
  21

  	
  Reporting Pay

  
	
  22

  	
  Temprary Transfers

  
	
  23

  	
  Vacations

  
	
  24

  	
  Holidays

  
	
  25

  	
  401K

  
	
  26

  	
  Personal Illness/Workers’
  Compensation

  
	
  27

  	
  Safety and Health

  
	
  28

  	
  Union Facilities

  
	
  29

  	
  Dispute Resolution

  
	
  30

  	
  Living Agreement

  
	
  31

  	
  Insurance

  
	
  32

  	
  Waiver of Any Clause

  
	
  33

  	
  No Strike – No Lockout

  
	
  34

  	
  Duration of Agreement

  
	
   

  	
  Appendix
  A – Pay Rates

  
	
   

  	
   

  	
  Company
  Contribution to Retiree

  
	
   

  	
   

  	
  Health
  Insurance

  
	
   

  	
  Index

  
	
   

  	
  Memorandum of
  Understanding #1

  
	
   

  	
  Memorandum of
  Understanding #2

  



 


25

















 


MEMORANDUM
OF UNDERSTANDING NO. 2


Transition Issues


Pay and Benefits


 


A.  In connection with 1996-97
negotiations, the parties have agreed to a new pay structure which will go into
effect when the three-classification and pay for knowledge and skills system is
instituted.  The parties have also
agreed to certain general increases and a flexibility increase, as described in
Article 16 of the Agreement.  In
applying these increases, the parties have reached the following
understandings:


 


1.  Employees
will be provided training opportunities with a goal of completing each level of
training within their classification in the time indicated in Appendix A or
less.


 


2.  When a
level of training has been satisfactorily completed as of June 1st, the
employee will thereafter be paid at the rate of pay of the level attained or at
his then current individual rate of pay, whichever is higher.


 


3.  All
employees will begin training by June 1, 1997.


 


4.  An employee
who has been at work and available to accept training opportunities and who,
through no fault of his own, has not been offered the training necessary to
complete a level of training, will be paid at such level commencing with the
end of the training year, June 1.


 


5.  The one
year training period may be extended by mutual agreement to accommodate an
employee who has not satisfactorily completed a level of training by June 1,
such extensions to be determined on an individual case-by-case basis.


 


B.  The parties have also agreed
to eliminate the incentive pay clause which appeared in Article 20, paragraph
5, of the 1994-96 Agreement, effective upon the ratification of this Agreement.  It is recognized, however, that certain employees
will not have had an opportunity to advance to the top of their former ranges
at the time such clause is eliminated. 
The parties have agreed that such employees will continue to receive
increases in the amount, at the intervals, and subject to the conditions set
forth in such former paragraph 5, until they have received the number of
increases they would have received if that clause had not been eliminated.


 


C.  The parties have also agreed
to terminate the former defined benefit pension plan.  Termination will take place as soon as practicable after legal
approvals have been obtained, effective on the last day of a calendar
month.  Current accruals will be
converted into annuities in accordance with current vesting schedules and legal
obligations with respect to lump sum and retirement options.  It is anticipated that such termination
shall not occur until sometime after June 1, 1997, that is, until after the
next plan year begins.  Accordingly, it
is anticipated that covered employee will accrue another year of service credit
under such plan.


 


As a result, effective June 1, 1998, the Company will
institute a defined contribution plan for covered bargaining unit employees,
subject to the following terms:


 


1.               Necessary
governmental approvals and qualifications.


 


2.               An annual non
discretionary Company contribution on behalf of each covered employee, in the
amount of four (4) percent of gross wages, plus an additional contribution on
behalf of certain current older employees designed to replace the current
$17.00 benefit for such employees.


 


26

















 


3.               No hardship
withdrawals.


 


4.               No loans.


 


5.               Full and immediate
vesting for current employees.  New
employees to vest 50 percent at the end of the plan year in which two (2)
years’ service is attained and 100 percent at the end of the plan year in which
three (3) years’ service is attained.


 


6.               Quarterly
investment statements.


 


7.               Employees eligible
to make individual contributions up to 15 percent of gross wages.


 


8.               Investment options
to be determined by the parties and to include at least one bond and one income
fund.


 


9.               Employees eligible
to change investments quarterly.


 


10.         Plan pays administrative
costs up to a limit of $20,000 per year over and above forfeitures.


 


11.         Upon retirement or
termination, employee may take vested amounts in cash, may leave funds in Plan
(if they exceed $3,500), may roll over his funds or may direct the Plan to
purchase an annuity on his behalf.   The
cost of purchasing such an annuity shall be an administrative expense of the
Plan, subject to paragraph 10 above.


 


12.         The precise terms are
subject to drafting by legal and financial consultants to be retained by the
Company and will be reviewed further by the parties.


 


D.  Finally, the Company has
agreed to pay each employee who was a member of the Union negotiating committee
eight (8) hours of pay at straight time rates, less deductions required by
laws, for each day when the parties engaged in collective bargaining and the
employee was thereby unable to report for work on his regularly scheduled
shift.


 


27

















 


MEMORANDUM
OF UNDERSTANDING NO. 1


Transition Issues


Work Group Issues


 


 


This Memorandum of Understanding outlines the process of transition of
current employees to Product Line focused Work Groups.  The Bushing Work Group has been identified
as the Experimental Work Group for greater employee involvement and
participation.   As the members of the
Work Groups are identified, the traditional departments will be eliminated, and
group members will begin to function as a Work Group, even though they may not
be physically located in the same area. 
The physical transition of machines and equipment to Product Line Work
Groups is expected to be completed no later than December 1999.


 


Any issues not specifically addressed in this Memorandum of
Understanding No. 1 will be handled through the procedures and philosophy
statement of the Agreement.


 


1.  Establishing the Work Groups 


 


Within two (2) weeks after the ratification of the Agreement, the
Company will identify the specific technical skills required in each Work Group
to insure production requirements can be met during the transition period.


 


The jobs will then be posted and the Plant Council will select
employees by seniority, insuring that the required technical skills identified
by the Company are included in each Work Group.   Once employees are assigned to a Work Group, they may be asked
to work on any job within their classification (either Production, Skilled
Trades Maintenance, or Skilled Trades Tool & Die Maker).  Employees may be asked to work in their same
classification in another Work Group if needed for business reasons.  At that time, current job descriptions and
job classes will no longer apply.


 


Each Work Group will then select a representative to serve as
spokesperson to others outside the group.


 


2.  Developing the Pay for Skill and Knowledge Program


 


The Training and Education Committee will identify the skills and
knowledge required for each level of the Pay for Skill and Knowledge system,
the method of training, and the measure of successful completion for each of
the three job classifications.  The
Plant Council shall use its best efforts to retain the services of the trainer
mentioned in Article 8 of the Agreement within one month after ratification, if
possible, to assist the Training and Education Committee in this effort.


 


As a guideline, the Basic and Core levels will consist of basic
education requirements in such areas as safety, trade unionism, and
introductory accounting, team building and problem solving and will consist of
job skills generally associated with the present Class 1 and Class 2 jobs.  The Intermediate and Advanced levels will
consist of further business, group management, and problem solving training, as
well as job skills generally associated with the present Class 3 and Class 4
jobs.


 


The Training and Education Committee along with the Work Group
Representative and the Work Group Supervisor will develop individual training
plans for the first six months to allow all employees to meet the Basic level
training requirements within one year (by June 1, 1998).  The plans will be submitted to the Plant
Council for final approval.


 


28

















 


The Education and Training Committee along with the members of the Work
Group will be responsible for insuring that employees are given the training
identified on their individual training plan or rescheduling within a
reasonable time period.


 


The Education and Training Committee will have developed and
implemented the individual training plans by June 1, 1997.


 


3.  Group Management


 


Initially, all Work Groups will be managed in a traditional sense with
the Supervisor retaining group management responsibilities.   As the Bushing Work Group completes
training for problem-solving, decision-making, group management, scheduling
work, and accounting it will begin taking on those responsibilities.  The other Work Groups will continue to be
managed more traditionally through a supervisor, but may increase the employee
participation in the management of the Work Group as mutually agreed by the
Work Group and members of the Plant Council, after evaluating the effectiveness
of this approach in the Bushing Work Group.


 


It is understood that the twenty (20) hours per week given to the Union
President for the performance of Union business (see Article 6) is intended to
cover all his normal functions, such as attendance at Plant Council meetings, training
as a Union official, answering employee or retiree inquiries, investigating
grievances, etc.  In this connection,
the parties recognize that, in contrast to the 1994-96 contract, these
functions no longer include a formal daily tour of the plant.


 


4.  Area/Machine Layout


 


Each Work Group (including both represented and non-represented
employees and supervisors) will determine the most effective machine layout of
the manufacturing area and will develop a plan for moving the equipment
(including timetables).  The Bushing
Work area will be established first.


 


29