Exhibit 10.5


 


AGREEMENT


 


Between


 


BREMEN BEARINGS OF RBC USA, INC.


PLYMOUTH, INDIANA PLANT


And


 


INTERNATIONAL UNION, UNITED


 


AUTOMOBILE, AEROSPACE AND


 


AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,


 


THE

U. A.W.


 


And Its

Local 1368


 


 


Effective August 10, 2002


 

















 


AGREEMENT


 


Between


 


BREMEN BEARINGS OF RBC USA, INC.

BREMEN, INDIANA PLANT


 


And


 


INTERNATIONAL UNION, UNITED


 


AUTOMOBILE, AEROSPACE AND


 


AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,


 


THE

U. A.W.


 


And Its

Local 1368


 


 


Effective August 10, 2002


 

















 


INDEX


 


	
  Article

  
	
   

  
	
  I

  	
  Agreement

  
	
   

  	
   

  
	
  II

  	
  Union Recognition

  
	
   

  	
   

  
	
  III

  	
  Agency Shop and Check-Off

  
	
   

  	
   

  
	
  IV

  	
  Cooperative Union Management

  
	
   

  	
   

  
	
  V

  	
  Rights and Functions of Management

  
	
   

  	
   

  
	
  VI

  	
  Strikes and Lockouts

  
	
   

  	
   

  
	
  VII

  	
  Production Standards and Incentive Pay

  
	
   

  	
   

  
	
  VIII

  	
  Job Evaluation Plan

  
	
   

  	
   

  
	
  IX

  	
  Hours of Work and Overtime Pay

  
	
   

  	
   

  
	
  X

  	
  Vacations and Vacation Pay

  
	
   

  	
   

  
	
  XI

  	
  Holidays

  
	
   

  	
   

  
	
  XII

  	
  Seniority

  
	
   

  	
   

  
	
  XIII

  	
  Settlement of Differences

  
	
   

  	
   

  
	
  XIV

  	
  Wages and Rates of Pay

  
	
   

  	
   

  
	
  XV

  	
  Insurance
  Benefits and Pensions

  
	
   

  	
   

  
	
  XVI

  	
  Jury Duty, Bereavement and Military Reserve
  Pay

  
	
   

  	
   

  
	
  XVII

  	
  Safety and Health

  
	
   

  	
   

  
	
  XVIII

  	
  Plant Rules

  
	
   

  	
   

  
	
  XIX

  	
  Leave of Absence

  
	
   

  	
   

  
	
  XX

  	
  Amendments and Modifications

  
	
   

  	
   

  
	
  XXI

  	
  Termination and Notice

  
	
   

  	
   

  
	
   

  	
  Appendix
  “A” Rates of Pay Tier I Employees

  
	
   

  	
   

  
	
   

  	
  Appendix
  “B” Rates of Pay Tier II Employees

  
	
   

  	
   

  
	
   

  	
  Appendix “C” Labor Units & Grade

  
	
   

  	
   

  
	
   

  	
  Appendix
  “D” Statement of Cooperation – Alcohol and Drug Abuse

  



 


2

















 


Article I
AGREEMENT


 


Section
1.


 


This agreement, dated the 10th of August, 2002, is entered into between
Bremen Bearings, RBC, INC. of Plymouth, Indiana plant, (hereinafter called the
“Company”) and the INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND
AGRICULTURAL IMPLEMENT WORKERS OF AMERICA (UAW) and its Local 1368 (hereinafter
called the “Union”), effective the 10th of August, 2002.


 


Section
2.


 


In consideration of this Agreement, the parties agree that it is the
intent and purpose of the parties hereto that this Agreement is the complete
Agreement covering rates of pay, hours of work and working conditions to be
observed between the parties, and to provide orderly relationships between the
Company and the Union, and to secure prompt disposition of difference between
the parties pertaining to the compliance with or application of this agreement.


 


Section
3.


 


In recognition of its responsibility as the exclusive agent of the
employees, the Union agrees that it will actively cooperate in discouraging
absenteeism and tardiness, and that it will actively support proper Company
efforts to eliminate waste, improve quality, prevent accidents, and strengthen
good will between the Company, the employees, the customers, the Union, and the
public.  The Union also confirms that it
subscribes to the concept of a fair day’s work for a fair day’s pay.


 


Section
4.


 


The rights provided in this Agreement shall apply only to employees who
have completed their 90-day probationary period, provided, however, that the probationary
period may be extended an additional 30 days by mutual agreement of the Company
and the Union.  Employees who have not
completed their probationary period shall have no rights under Article XIII,
Sec. 1, Step 3 of this Agreement.


 


3

















 


Article II


 


Union Recognition


 


Section
1.


 


The Company recognizes the Union as the sole collective bargaining
agency with respect to rates of pay, hours of work, and conditions of
employment for employees engaged on jobs in Bremen Bearings, at its Plymouth,
Indiana plant.


 


Section
2.


 


The term “employee” as used in this Agreement, shall apply to all
production and maintenance workers engaged on jobs at the Plymouth, Indiana
plant who are on an hourly or incentive basis, but excludes watchmen, salaried
employees and supervisory employees with authority to hire, promote, discharge,
discipline or otherwise effect changes in the status of employees or
effectively to recommend such action.


 


4

















 


Article III


 


Agency Shop and
Check-off


 


Section
1.


 


Each employee who on the effective date of this Agreement is a member
of the Union in good standing and each employee who becomes a member after that
date shall, as a condition of employment, maintain his membership in the Union.


 


Each employee hired on or after August 12, 1972, shall as a condition
of employment, beginning on the 30th day following the beginning of
such employment acquire and maintain membership in the union.


 


Section
2.


 


The Company, for those employees who have heretofore, or hereafter by
written authorization so directed, shall deduct from the first pay of each
month the proper Union dues for the previous month, an initiation fee for new
members, the assessments and promptly remit same to the International
Secretary-Treasurer of the Union. 
Changes in dues and assessments will be made only as authorized in
writing by the International Secretary-Treasurer of the Union to the Company


 


Section
3.


 


If an employee is on vacation the week that Union dues are withheld,
the Company agrees to provide the Union with the names along with the hourly
rate that they were paid.


 


5

















 


Article IV


 


Cooperative Union
Management


 


Section
1.


 


The Company and the Union agree that they will not discriminate in the
hiring of employees, or in their training, upgrading, downgrading, promotion,
transfer, layoff, discipline, discharge or otherwise because of race, creed,
color or national origin, age, union affiliations, sex, marital status or
non-disqualifying disability.


 


Section
2.


 


The Company and the Union recognize the advisability of making every
effort to constantly improve relationships between the Company, the Union and
all employees.  To this end, a committee
composed of two members of the Union and two members of management shall meet
for one hour at least once a month on Company time to discuss problems and/or
grievances which may cause a disruption in relationships or to suggest means of
improving relationships.  The General
Manager and the International Representative may attend these meetings.  The purpose of these meetings is to prevent,
where possible, the use of the Arbitration Clause of this Agreement, as such is
both costly to the parties and further, bilateral good faith collective
bargaining is ineffective when a third party is called for the purposes of
determining the intent of the Agreement.


 


Section
3.


 


a)                            It
is the duty of every employee to apply himself diligently to his work during
all of his working hours and to this end the Union will support the Company’s
efforts to curb absenteeism and the practices which curtail production; to
eliminate waste and inefficiency; to improve the quality of workmanship; to
prevent accidents, and to promote good will between the Company and the
employees.


 


b)                           The
Union will cooperate wholeheartedly with the Company in a concerted drive for
better quality and quantity of production. 
It should be the responsibility of each employee to see that the work
performed is up to required standards and that no defective work is concealed.


 


6

















 


Article V


 


Rights
and Functions of Management


 


Section
1.


 


The control of all matters relative to the management and operation of
the plant and the operation of the Company’s business are vested exclusively in
the Company and shall constitute a management right, except as these matters
may be expressly limited by the terms of this Agreement.  The Company and the Union in the exercise of
their rights shall observe the provisions of this Agreement.


 


Section
2.


 


The violation by either party of any provision of this Agreement shall
not render the Agreement inoperative, and the sole and exclusive method of
remedying any dispute which may arise hereunder shall be Article XIII,
Settlement of Differences.


 


Section
3.


 


While it is understood that the Company may experiment with equipment,
it is not the intent of the Company to replace any bargaining unit employee
with a salaried employee through the exercise of this right.  Salaried employees may perform such work
under their jurisdiction as instructing, experimenting, or relieving
impediments in production, but no bargaining unit employee shall lose a work
opportunity as a result.


 


Section
4.


 


When work which the bargaining unit normally performs is to be
subcontracted, it will be done on the basis of time or money or special
equipment or expertise.


 


When work is contracted out, the Company will inform the Union and
explain the necessity prior to the subcontracting.


 


7

















 


Section
5.


 


The Company may utilize temporary employees to do the work of those on
leaves of absences, vacations, and other absences, and for unpredicted customer
demands, to keep the operations running smoothly, but the Company can only use
temporary employees when there are no regular employees available who will fill
the need in the department on the shift. 
A temporary employee shall not work in excess of 90 days per year per
employee, unless the temporary employee is filling in for a regular employee on
medical leave, in which case the temporary employee may work for the duration
of the medical leave.  The temporary
employee will be paid at the second tier rate and will not be eligible for
benefits.  Temporary employees will be
utilized only in positions of labor grades 1, 2, 3, 4, 5.


8

















 


Article VI


 


Strikes and Lockouts


 


Section
1.


 


During the existence of this Agreement, the Union agrees that neither
it nor any employee shall engage in any strikes, sympathy strikes,  work
stoppages, or slowing down of work, or any other interference with the normal
production of the plant, or shipments from the plant products produced therein,
or shipments of necessary materials to the plant.  Any violation of this Section by any employee shall be cause for
dismissal or suspension.


 


In the event there is an interruption of production because of a
concerted action, the Union, through the International Representative and Local
president, shall immediately direct cessation of such interruption.


 


Section
2.


 


The Company, for itself, its supervisors and authorized
representatives, agrees that during the term of this Agreement there shall be
no lockouts in the Company’s plant.


 


9

















 


Article VII


 


Production
Standards and Incentive Pay


 


Section
1.


 


It is understood that the Company may make, at any time; motion, time
or methods studies required for the efficient operation of its business, and
may establish standards and levels of performance, and may audit its standards
when it deems this to be necessary in the interest of its business.  During the start-up and development period
for equipment the employee operating machine will be paid his/her average
earned rate based on earnings during the prior week for a period not to exceed
eight weeks.  Thereafter, the employee
will be paid average hourly earnings up to 120% of his/her base wage until the
equipment is rated.  The Company has a
right to assign any employee to operate a machine during the first eight weeks
of the start-up and development period for the equipment.  Thereafter, departmental seniority will be
used to determine the operator of this equipment until the equipment is
rated.  The Company will make reasonable
efforts to establish a rate for new equipment within 120 days after the
equipment has been released for consistent production.


 


Section
2.


 


Once a production standard has been established, the equity of such a
standard may be challenged under the procedure set forth in Article XIII,
Settlement of Differences.  Should the
Union dispute the equity or fairness of a production standard, the Company will
review with a proper Union steward, upon his request, the data relating to the
production standard.


 


Section
3.


 


A production standard may be changed whenever a substantial and
continuing change in material, method, specifications, or equipment, or an
accumulation of such changes, or an obvious clerical or mechanical error has
occurred, that has a substantial effect on the productivity of the job.


 


10

















 


Section
4.


 


It is recognized that the Company has the right to institute incentive
standards, with the understanding that such incentive standards shall be set in
such a manner so that qualified operators working at a normal pace can produce
work at 100% of standard.  Incentive
jobs include:


 


Assembly


 


Incentive pay for second tier employees hired after 8/10/02 is capped
at 140% of standard plus 1⁄2% for each 1% above 140% of standard.


 


The Company guarantees that the incentive standard for the assembly job
shall be paid off of the base rate for the assembly department.


 


Section
5.


 


When an employee performs any work that does not meet the required
specifications, he shall not receive any pay or credit for the work except for
his guaranteed base rate on a weekly basis. 
However, when the cause for rework is beyond the operator’s control,
this provision will not apply.


 


Section
6.


 


The Company and the Union will discuss and implement a performance
incentive program that is acceptable to both parties.


 


11

















 


Article VIII


 


Job Evaluation Plan


 


Section
1.


 


Jobs shall be classified in their appropriate work grades by the
Company, using the National Metal Trades Association’s Job Evaluation
Plan.  Job descriptions, labor grades,
and rates of pay have been prepared and are in effect for all present
jobs.  When conditions warrant such
action, the Company will establish new job classifications, change or add to
and remove jobs or job descriptions. 
When new jobs are established, or changes or additions made to existing
jobs, new job descriptions will be drawn and evaluated by the Company in
accordance with the NMTA Job Evaluation Plan. 
Union must be furnished a current copy of the NMTA Job Evaluation Plan
being used by the Company.  Where an incentive
and non-incentive job are combined, the remaining job will be an incentive job
if the preponderance (over 50%) of the job functions are functions of the
incentive job.  Otherwise, the job will
be deemed a non-incentive job.


 


Section
2.


 


All job rates of pay in effect at the time of this Agreement are
effective and properly evaluated and shall not be the subject to process under
the grievance procedure section of this contract.  Any new or changed job or job rate may be subject to processing
under Article XIII, Settlement of Differences. 
Such processing shall be confined to the result of the application of
the NMTA Job Evaluation Plan.  The Plan
itself shall not be subject to processing under Article XIII, Settlement of
Differences, nor shall it be, in any manner or detail, subject to arbitration
under this agreement.


 


Section
3.


 


The following method will be used in determining the work grade to be
assigned to a job:  The job will be
analyzed and reviewed by the Company’s Job Analyst who will write up the
description of the general details considered necessary to describe the principal
functions of the job identified, which description shall not be construed as a
detailed description of all of the work requirements that may be inherent in
any given job.  A copy of all job
descriptions shall be made available to the Union for their inspection and
review.


 


12

















 


Article IX


 


Hours of Work and
Overtime Pay


 


Section
1.


 


This Article is intended only to provide a basis for calculating
overtime.  It shall not be construed by
the Union or any of its members as limiting or guaranteeing the number of hours
to be worked by an individual employee or group of employees per day or per
week.


 


Section
2.                       Work
Week


 


A normal work week shall consist of five consecutive eight hour days
from Monday through Friday except where off standard work weeks are
established, in which event the work week shall consist of five consecutive
days followed by two days of rest.


 


Section
3.


 


A day shall be defined as a consecutive 24-hour period beginning with
the starting time of an employee’s shift. 
Eight continuous hours of work, interrupted by regularly scheduled lunch
periods shall constitute a day’s work.


 


Section
4.


 


Employees on temporary transfer to another department will work the
hours as scheduled in that department during the transfer.  If they receive less than 16 hours notice of
a temporary transfer, they shall have the option of working either the hours
scheduled in their own department or those scheduled in the department to which
the temporary move was made.


 


13

















 


Section
5.


 


Except where an off-standard workweek is established, the standard
three and four shift schedules listed below shall be the hours of work, unless
by agreement between the Union and the Company they are altered.


 


	
  Company Shifts:

  	
   

  	
  7:00 a.m. to 3:00 p.m.

  
	
   

  	
   

  	
  3:00 p.m. to 11:00 p.m.

  
	
   

  	
   

  	
  11:00 p.m. to 7:00 a.m.

  



 


Four Shift operation:


 


	
  WORKDAY

  	
   

  	
  A

  	
   

  	
  B

  	
   

  	
  C

  	
   

  	
  D

  
	
  Sunday

  	
   

  	
  Off

  	
   

  	
  Off

  	
   

  	
  Sat. 11:00 p.m.

  	
   

  	
  3-11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Sun. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monday

  	
   

  	
  7-3

  	
   

  	
  Off

  	
   

  	
  Sun. 11:00 p.m.

  	
   

  	
  3-11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mon. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuesday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Mon. 11:00 p.m.

  	
   

  	
  Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tues. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wednesday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Tues. 11:00 p.m.

  	
   

  	
  Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Wed. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thursday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Off

  	
   

  	
  Wed. 11:00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Thurs. 7:00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Friday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Off

  	
   

  	
  Thurs. 11:00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fri. 7:00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Saturday

  	
   

  	
  Off

  	
   

  	
  3-11

  	
   

  	
  Fri. 11:00 p.m.

  	
   

  	
  7-3

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Sat. 7:00 a.m.

  	
   

  	
   

  



 


When a department is placed on a 4-shift operation, all employees in the
affected department will be assigned to that schedule only.  The holiday schedule for the 4-shift
operation shall be determined by the Company and union and posted by the
beginning (January) of each year.


 


It is understood that the Company will not resort to a four-shift basis
because of lack of available equipment due to disrepair.  Employees working on the B shift shall be
paid at time and 1/8 for hours worked on Saturday.  Employees working on the C and D shift shall be paid at time and
1/8 for hours worked on Saturday and time and 1⁄4 for hours worked on Sunday.


 


14

















 


Employees on the B shift will be paid the second shift premium and
employees on the C and D shifts will be paid the third shift premium.  In order to ensure cross training and ensure
new equipment/processes, the Company has the right to schedule employees to
work shifts other than their regularly scheduled shift for a period not to
exceed 4 weeks for training purposes.


 


Section
6.                       Division
of Overtime and Overtime Pay.


 


All overtime shall be
distributed as equally as practicable within the department, classification and
shift.  Overtime scheduling shall be
compulsory for 50 hours and where scheduled absences and vacations must be covered.  In the case of scheduled vacations and
scheduled absences, employees will be polled by seniority to fill in.  If there are no volunteers, the least senior
employees in the classification may be assigned.  On a daily basis, notification for scheduled overtime will be at
least two (2) hours prior to the end of the shift.  Notification for sixth and seventh day overtime will be posted as
follows:


 


	
  1st shift

  	
   

  	
  3 p.m.

  	
   

  	
  Wednesday

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd shift

  	
   

  	
  11 p.m.

  	
   

  	
  Wednesday

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd shift

  	
   

  	
  11 p.m.

  	
   

  	
  Wednesday

  



 


A.                                   Except as provided
in B, below, time and one-half shall be paid for all hours or parts of hours
worked:


(1)                                  In excess of eight
(8) hours in any one workday.


(2)                                  In excess of forty
(40) hours in any one workweek.


(3)                                  On Saturday, except
for off standard work weeks.


(4)                                  On the sixth day of
their scheduled workweek for employees on off standard work weeks.


 


B.                                     Double time shall
be paid for all hours or parts of hours worked:


(1)                                  On Sundays, except
for off standard work weeks.


(2)                                  On the seventh day of
their scheduled work week for employees on off-standard work weeks.


 


C.                                     Overtime rates and
premium rates shall not be paid to employees on more than one overtime or
premium basis whether hourly, daily, or weekly.


 


D.                                    Company liability
with respect to mis-scheduling of overtime shall be limited to a make-up
turn.  In the event that an employee is
bypassed for a make-up turn the Company will be liable for payment.  An employee who is not notified for an
overtime turn within contractual limits shall not be charged with a turn.  An employee scheduled to work on his/her 6th
or 7th day shall have a 24-hour notice of cancellation of such work
except in emergencies.  If notice is not
given, the employee scheduled will receive 4 hours pay at the appropriate rate.


 


15

















 


E.                                      If a holiday
falls on Friday or Monday and overtime is scheduled on the succeeding or
preceding Saturday, it will be on a voluntary basis.


 


F.                                      Where a work
opportunity is lost, the Company shall be liable for four hours at a time and
one half for work performed by salaried non-bargaining unit employees normally
performed by bargaining unit employees.


 


Section
7.                       Call in Pay


 


Employees called into work within a twenty-four (24) hour period from
the starting time of their shift shall be guaranteed a minimum of four (4)
hours at their regularly assigned rate. 
This is provided that they report in within a reasonable amount of time
from the call out.


 


Section
8.                       Report
in Pay.


 


Employees who report for work as scheduled or who report for work upon
notification to report shall, regardless of whether or not work is available
for them be guaranteed a report in pay of no less than four (4) hours at their
regularly assigned personal rate.


 


Employees will not be paid under this section if:


(1)                                  They
are unfit to work;


(2)                                  Work
is unavailable as a result of causes beyond the control of management;


(3)                                  They
are notified not to report for work within 24 hours notice;


(4)                                  They refuse to
perform work available within their department unless such work is not
available or they refuse to perform other work for which they are qualified.


 


16

















 


Article X


 


Vacations and
Vacation Pay


 


Section
1.


 


The vacation year shall begin on January 1 and end on December 31.  The period for taking vacation time off
shall begin with the first full week in January and end with the last full week
in December, with the understanding that this period shall not detract from the
Company’s right to establish a vacation shutdown period.  Plant shutdown shall be posted by the end of
the last full month of the year.  The
vacation shutdown shall not be more than two weeks per year.


 


Section
2.


 


Each employee who is actively on the payroll on December 31, or the
Sunday closest to December 31, shall be entitled to his full vacation benefits
notwithstanding the fact that his services may have been terminated for any
reason in the ensuing year prior to the receipt of vacation pay.


 


Section
3.


 


Employees who were not on the active payroll on December 31 or the
Sunday closest to December 31, but who become active thereafter as a result of
recall or return from a leave of absence will receive vacation pay on a
prorated basis computed at one-twelfth (1/12th) of his benefit for
each full month of service in the current vacation year.  Employees recalled on or before the 15th
of any month shall be given credit for the full month.


 


Employees whose benefits are computed under this Section 3 shall
forfeit such benefits if:


(a)                                                     They
are discharged; or


(b)                                                    They
resign without giving five (5) days written notice to the Company.


 


17

















 


Section
4.


 


Effective July 17, 1999, vacation benefits for eligible first tier
(hired on or before August 10, 2002) full time employees shall be as follows:


 


	
  Accredited Service Prior to

  December 31 of Vacation Year

  	
   

  	
  Vacation
  Time

  	
   

  	
  Vacation

  Pay Hours

  	
   

  
	
  1 year to 2 years

  	
   

  	
  1 week and 1 day

  	
   

  	
  68

  	
   

  
	
  2 years to 10 years

  	
   

  	
  2 weeks and 1 day

  	
   

  	
  108

  	
   

  
	
  10 years to 15 years

  	
   

  	
  3 weeks and 1 day

  	
   

  	
  148

  	
   

  
	
  15 years to 20 years

  	
   

  	
  3 weeks and 4 days

  	
   

  	
  172

  	
   

  
	
  20 years and over

  	
   

  	
  4 weeks and 1 day

  	
   

  	
  188

  	
   

  



 


A first tier (hired on or before 8/10/02) employee will receive
vacation pay at his/her average hourly earnings over either the first or second
of the two preceding six month periods (January 1 thru June 30 or July 1 thru
December 31), beginning January 1, 2000.


 


A second tier (hired on or after August 10, 2002) will receive vacation
time and pay at his/her straight time base hourly rate as follows:


 


	
  Accredited Service Prior to

  December 31 of Vacation Year

  	
   

  	
  Vacation
  Time

  	
   

  	
  Vacation

  Pay Hours

  	
   

  
	
  1 year to 3 years

  	
   

  	
  1 week

  	
   

  	
  40

  	
   

  
	
  3 years to 10 years

  	
   

  	
  2 weeks

  	
   

  	
  80

  	
   

  
	
  10 years and over

  	
   

  	
  3 weeks

  	
   

  	
  120

  	
   

  



 


Section
5.


 


Vacations are planned absences. With the exception of prior approval by
Human Resources, at least one-half of employees’ vacation must be taken in
one-week increments and requested in writing for the calendar year by January
31st.  Vacation requests
after January 31st must be applied for two weeks in advance in
writing.  A maximum of four single days
may be taken for absences provided that one-hour prior notification to the
beginning of their shift has been given. 
All vacation will be approved or denied by Human Resources based on the
following criteria:


(a)                                  No more than 20% of a
department will be allowed to take vacation unless specifically identified as a
department or plant shutdown;


(b)                                 Peak performance times
or customer demands;


(c)                                  Seniority within the
department;


(d)                                 Article
XIX Leave of Absence.


 


18

















 


Article XI


 


HOLIDAYS


 


Section
1.


 


The following days are those to which the provisions of this Article
apply:


 


	
  Day Before New Year’s Day

  	
   

  	
  New Year’s Day

  
	
  Good Friday

  	
   

  	
  Memorial Day

  
	
  Independence Day

  	
   

  	
  Labor Day

  
	
  Thanksgiving Day

  	
   

  	
  Day after Thanksgiving

  
	
  Day before Christmas

  	
   

  	
  Christmas

  



 


All employees with ninety (90) days continuous full time employment
shall be eligible to receive holiday pay provided they are on a working status
at the time of the holiday, and work the scheduled hours on the working days
before and after the holiday or the day in which the holiday is
celebrated.  Employees on leave of
absence, layoff or otherwise unavailable or ineligible to work the day before
or after the holiday are not eligible for holiday pay.  No more than 8 hours will be scheduled on
those days and the Company will be liable for the hours scheduled if it does
not provide the work.


 


Section
2.                       Holiday
Pay


 


A.                                   Any work performed
on a holiday shall be on a voluntary basis and the employees shall be paid
double time for all hours worked on a holiday  in addition to the regular
holiday pay.


 


B.                                     If a holiday falls
during a paid vacation, the employee will receive an extra day off with pay or
may be paid in lieu of the holiday.


 


C.                                     Pay for the
above-mentioned holidays shall be on a one-pay basis only.  There shall be no pyramiding of overtime pay
for holidays.  Regular holiday pay shall
be on the basis of eight (8) hours at the employee’s personal base rate.


 


19

















 


Article XII


 


Seniority


 


Section
1.


 


The Company hereby recognizes the principle of seniority, and all
seniority provisions shall operate on a departmental basis in accordance with
the procedures hereinafter listed in this Article.  Seniority shall accumulate from the original date of employment
for every employee covered in this Agreement and said seniority rights shall
cease upon the occurrence of any of the following acts or conditions.


 


(1)                                  A voluntary resignation
or quit.


(2)                                  A discharge for
cause.


(3)                                  A layoff of more than
30 months or a leave of absence of more than one (1) year’s duration, however,
in the case of a medical leave such leave may be extended by mutual agreement.


(4)                                  Failure to report for
work within five (5) working days from the date of recall from lay-off or leave
of absence.


(5)                                  Three working days of
no call, no show.


(6)                                  When an employee with
less than one (1) year’s service is laid off, such employee shall have recall
rights not to exceed one (1) year.


(7)                                  The Company will
inform the Union President and the employee three days prior to the event of a
layoff and/or recall to and from the street. 
An employee who is initially bumped will also  be notified three (3) days
in advance.


 


All employees with less than ninety (90) days of continuous service
shall be considered probationary employees, provided the probationary period
can be extended an additional 30 days by mutual agreement of the Company and
the Union.  After completion of the probationary
period, the employee’s record of continuous service will date back to the
original date of his employment.


 


20

















 


Section
2.


 


A.                                   Seniority shall at
all times be recognized for the purposes of upgrading and layoff and recall
provided the employee possesses the necessary skill and ability to perform the
job in question.


 


B.                                     The lead position
committee for the specific department will review all bidders for leader
positions.  Bidders will be selected by  the
lead position committee based on their skill, knowledge, and abilities.  If all bidders are equally qualified, then
seniority shall prevail.  These criteria
will apply to any newly created lead positions. 
The lead position committee will be made up of two (2) union
representatives and two (2) management representatives.  The shop committee will determine the (2)
union representatives.  The person
selected for the lead position shall be by majority vote of the committee.


 


Section
3.                       Job
Openings and Upgrading Procedure


 


When the Company declares a job open there shall be shift preferences
right, which will operate within the department and classification, involved
before the open job is posted.


(1)                                  If no employee in the
plant has recall rights to the open job, it will be posted plant wide so that
any employee previously qualified on the job may bid before an employee laid
off from the Company who has rights to that job is recalled.  If no person on layoff fills the open job,
it will be posted plant wide so that any employee will have the chance to bid
before hiring from outside.  This is not
applicable to grades 10, 11, and 12.


 


(2)                                  In the event a junior
worker in a department is transferred to another shift and the transfer exceeds
forty-five (45) days, a bid for a shift preference must be posted when the
vacancy is filled.  If the transfer does
not exceed forty-five (45) days, the employee that was transferred will have to
return to the shift.


 


When a job is posted for bid, it shall remain on the bulletin board for
a period of four (4) working days including Saturdays and Sundays if a four
shift operation is instituted. 
Employees will also have the right to designate in advance with the
Company personnel office, their desire to upgrade to specific jobs.


 


A.                                   Any successful
applicant for a job who moves into a new department shall take all his
seniority into that department upon demonstrating sufficient skill and ability
to perform the job equal to the department average, not to exceed a period of
ninety (90) continuous days of work within the new department.  In the event of work force reduction,
probationary employees will be considered as without rights and will be laid
off prior to other employees in the department.  With respect to those employees who have less than ninety (90)
days in a department and are not probationary employees, Company seniority will
determine which employee will be affected in case of layoff.


 


21

















 


B.                                     Any employee who
fails to meet job requirements on any job where he/she is a successful bidder
shall be returned to his/her former job, department, and shift.


 


C.                                     After any
upgrading or award of a bid, an employee will be restricted from bidding again
for another job for a period of nine (9) months.  The restriction will be waived in the event that an opening
occurs in maintenance or in the tool room for L.G. six and above.  If after bidding on a posted job an employee
is disqualified by the Company, he/she may bid on another posted job at any
time, provided all means for filling that job have been exhausted in
conformance with Article XII of the Agreement. 
After an employee has bid on a job he/she may disqualify him/herself on
that job at any time prior to the passage of twenty (20) consecutive working
days or the Company may disqualify him/her in a ninety (90) day period.


 


After an employee has been disqualified from a job by the Company, he
may bid on that job again after a one-year period; however, if he is again
disqualified from the job he/she will not be permitted to bid on it in the
future.  This restriction may be removed
if employee has successfully demonstrated improved skills.


 


D.                                    Downward moves will
only be permitted once a suitable replacement has been found, for up to a
maximum of one hundred twenty (120) days.


 


E.                                      Consistent with
the terms of this contract, an employee will have the right to move laterally
on an open job.


 


F.                                      The following
will prevail for employees who are successful bidders on open jobs but
circumstances prevent them from moving:


 


1.                                       If after two (2)
weeks from date of bidding the employee is still within department, he/she will
receive make up pay equal to his present step in the Labor Grade in which he
was the successful bidder.  Seniority
will commence in the new department at this time.


Note:  Incentive earnings for
assembly will not be calculated on the make up pay; overtime will not be paid
on make up pay, but will be paid on hours worked at straight time.


2.                                       Successful
bidders shall not be detained for any time in excess of six (6) weeks from
their bidding date unless approved by the employee.


3.                                       At the time of
the actual transfer the employee will automatically be placed at a rate on the
progression rate scale per company policy.  Ninety
(90) day Company qualification will begin upon actual transfer to position.


 


G.                                     If an opening
occurs within 120 days of the award of the bid, the next eligible bidder will
fill the position.  If there are no
eligible bidders, the job will be reposted before the Company may hire from the
outside.


 


22

















 


Section 4.                       Lay Off and Recall


 


When an employee is laid off from his/her department and job
classification he shall have the option of retrograding in compliance with (B)
below or he/she may displace the least senior employee in his labor grade in
his unit.  If his seniority precludes
the displacement of any employee in his labor grade, he may bump the least
senior employee on a lower base rate job within the unit.


 


A.                                   When a move has been
effectuated under the seniority provisions of the contract, the affected
employee will be allowed to exercise a shift preference so long as it is
consistent with his seniority.


 


B.                                     In the event of a
lay-off, the affected employee will be given the opportunity, seniority
permitting, to retrograde into any job previously qualified on while in the
employee of the Company.  Retrograde may
mean upward, downward or lateral movement.


 


C.                                     After an employee
has exhausted all seniority moves under the provisions of the contract he will
be given the opportunity to bump a less senior employee in labor grade 6 and
below, provided he can perform that job proficiently within a three (3)  week
period.


 


D.                                    After an employee
has exhausted all seniority moves under the provisions of the contract, he will
be recalled to any job by seniority in Labor Grade 9 or below provided he hasn’t
waived his rights to that job and he will be given up to three weeks to
demonstrate proficiency on the job. 
This section is not applicable to maintenance and tool room jobs.


 


23

















 


E.                                      When an employee
is laid off, he/she will be asked whether he/she will accept recall to any job
or just his/her own.  If the employee
waives recall to other jobs, he will be recalled only to his own job.  If the employee accepts recall to jobs other
than his own, he may not refuse those jobs when offered.  An employee, on layoff, may revise his/her
status concerning the job or jobs to which he/she’ll return by notifying the
Company in writing.  Such notification
may be made no more than twice a year during any given layoff.  Recall rights are for 30 months.


 


F.                                      If an employee is
recalled by the Company and subsequently disqualifies himself or is
disqualified by the Company, his subsequent placement will be in accordance
with Section 4, A, B, C, and D in the event of work force reduction,
probationary employees will be considered as without seniority rights and will
be laid off prior to any other employees in the department.


 


G.                                     When an employee
is laid off from his/her job and replaces an employee with less seniority in
another job, said employee will have the option of going back to his/her
original job or stay on present job after 90 days.


 


 


H.                                    When an employee with
less than one (1) year’s service is laid off, such employee shall have recall
rights not to exceed (1) year.


 


Section 5.


This Article does not limit or guarantee the number of hours to be
worked by any department or any employee. 
In the event of a curtailed workweek the days worked shall be
consecutive beginning on Monday except for off-standard work schedules.  If curtailment is necessary beyond four (4)
weeks, the Union may discuss alternatives with the Company.


 


Section 6.


Bulletin Boards shall be provided for all seniority lists and other
Union purposes as well.  It is
understood that the Union officers shall submit any document to be posted on
the bulletin boards to the appropriate representative of management for his
approval prior to posting.


 


Section 7.


It is understood that the following Union officers shall have top
seniority during their respective terms of office:


 


	
  1.

  	
   

  	
  President

  
	
  2.

  	
   

  	
  Vice President

  
	
  3.

  	
   

  	
  Financial Secretary

  
	
  4.

  	
   

  	
  Recording Secretary

  
	
  5.

  	
   

  	
  Bargaining Committee Members

  



 


This seniority shall be for the purpose of layoff and recall only.  The four top Union officers shall be
assigned to the first shift.


 


24

















 


Section
8.


 


The committeeman on each shift shall hold top seniority on his respective
shift for the purpose of layoff and recall only.  This seniority shall not take precedence over the officers as
listed in Section 7.  This provision
protects Union officers from the vagaries of bumping/layoff during the terms of
office.  Therefore they are to remain on
the shift to which they are assigned until the abolition of that shift or upon
voluntary removal to another shift.  On
the other hand, this provision in no way permits a Union officer to use his
privileges for purposes of vacation or promotion preference, etc.  To allow the bumping of Union committeemen
or officers without respect to shift retention, it is technically possible to
have them all confined to one shift while the other shifts have no
representation.  This was never the intention,
since such an eventuality would leave Company-Union contracts in an unworkable
state.


 


Section
9.


 


It is understood that any employee promoted from the bargaining unit
will have 60 days to return with his accumulated seniority except for 30
days.  If the employee does not return
to the bargaining unit in that time, he will lose all his seniority and may
return thereafter only as a new employee. 
Any return to the bargaining unit must be to a posted job.  If there is not posted job, the affected
employee may bump the least senior employee whose job he can perform.  The job in question must be labor grade 7
and below.


 


Section 10.


 


Employees applying for jobs in Labor Grade 8 and above shall be
required to pass a job test in connection with job openings in such labor
grades.  The following procedure will
apply:


 


A.                                   The Company will
reimburse 100% of tuition for any required courses providing completion of
course with a grade “C” or at least a 72%.


 


B.                                     Testing will be
administered and evaluated by an independent agency.


 


C.                                     Openings will be
filled from within on a seniority basis providing applicants pass the test with
a grade “C” or at least a 72%.  If no
one qualifies, the Company may seek outside applicants.  A joint Union-Company trades committee will
be established to oversee the program.


 


D.                                    It is the policy of
the Company to encourage its employees to prepare themselves voluntarily for
increased responsibility by studying accredited semi-technical, and
professional subjects related to the Company’s business.  To aid the employee, the Company has
instituted a Tuition Refund Plan by which 75% of the tuition paid by each
employee will be refunded on approved and satisfactorily completed subjects.


 


E.                                      If an opening
occurs in the Tool room and it cannot be filled with a qualified employee
either in or out of the plant, the Company may establish a training program to
fill the job.


 


25

















 


Section
11.


 


Shift preference may be exercised twice  per year, and an employee
must stay on the shift for six months after exercising this right.  It is the obligation of the employee to
notify the Company two weeks in advance if he wishes a shift preference, and
transfers will occur only on a Monday, unless otherwise agreed to.  In exercising the shift preference, the
employee will bump the last senior employee in the same job on the shift he
desires to transfer to provided his seniority is greater.  The displaced employee will then bump the
least senior employee in the same job on the next shift of priority, provided
his seniority is greater.


 


26

















 


Article XIII


 


Settlement of
Differences


Section 1.


 


A grievance shall be defined as any dispute which arises between the
Company and the Union over the compliance with or application of this Agreement
as it pertains to any bargaining unit employee, and all such differences shall
be settled in the following manner.


 


Step
I.                                      The
employee shall first attempt to resolve any grievance dispute with his/her
immediate supervisor.  The employee may
request to have his/her committee-person present when he/she talks with the
supervisor.  If the dispute is not
settled in accordance with an oral discussion between the supervisor, the
employee and/or the committeeman, then the dispute must be reduced to written
grievance and submitted to the Supervisor or his/her designee  within
five (5) working days from the date of the initial discussion with the
supervisor.  The supervisor will provide
written response within (5) working days upon receipt of the written
grievance.  If the dispute still remains
unsettled, it will be submitted to Step II.


 


Step
II.                                  Within
five (5) working days from the date of receipt of a written grievance by the  Human
Resources Manager, it shall be heard by the Step II committee.  The Step II Committee  shall consist of two
representatives of management and two representatives of the local Union and
the Grievant.  If the parties
cannot conduct a Step II hearing within five (5) working days from the date of
receipt ofthe  written grievance, the parties, by mutual agreement, may
extend the time limit.  If
the grievance in Step II is not heard within the five (5) working days time
limit or the extended time agreed upon by the parties, it will be placed
immediately on the Third Step Agenda.  If the dispute still remains unsettled  after
the Step II hearing, it will be placed on a Third Step Agenda
within five (5) working days following the hearing in Step II.


 


27

















 


Step
III.                              The
Union must schedule the Step III meeting within five (5) working days.  If the grievance in Step III is not
scheduled within the five (5) working day limit or extended by mutual agreement
it will be dropped by the Union.  The
Step III committee shall hear all cases which have been unresolved in Step II.
The Step III committee  shall consist of two representatives of
management and the President, Vice President, Financial Secretary and Recording
Secretary of the local Union.  In
addition, the General Manger and a representative of the International Union
may sit in on any third step hearing. 
The Company shall present its Step III response within five (5) working
days of the third step hearing. In the event that the dispute is not resolved
in the third step, the Union may file the said difference for arbitration
within ten (10) working days after the date of the third step response. If the
union does not request arbitration within the ten (10) working day period, the
grievance shall be dropped by the Union. 
But the said ten (10) working days may be waived by mutual agreement in
writing  between
the Union and the Company so as to further discuss the subject of the dispute
under the cooperative management clause of this Agreement.


 


The parties by mutual agreement may submit any grievance to non-binding
mediation before a mediator assigned by the Federal Mediation and Conciliation
Service without waving the right of the Company or the Union to submit the
grievance to binding arbitration in the event non-binding mediation does not
resolve the grievance.


 


Section 2.


If a grievance hereunder is referred to arbitration, the parties will
use the arbitration procedures of the Federal Mediation and Conciliation  Service.  The parties will alternate as to which party
will strike its first name in an arbitration panel.  If a grievance is submitted to arbitration, the decision of the
arbitrator shall be final and binding on both parties and any costs with
respect to said arbitration shall be borne equally between the parties.  The cost of the court reporter and
transcript shall borne by the requesting party(ies).


 


Section 3.


No issue in dispute under this Labor Agreement shall be arbitrable
unless the said issue involves the meaning, application of, or compliance with
a specific provision of this Agreement or the intent thereof and  unless
the grievance has been timely filed. 
The arbitrator shall not add to, subtract from, or modify any of the
provisions of this Agreement, and shall not reverse management’s decision in
cases involving discipline or discharge except when, in the judgment of the
arbitrator, management has acted without just cause.  The arbitrator’s award shall in no case be retroactive beyond 30
days prior to the filing of the written grievance which constituted the issue
in question.


 


Section 4.


All grievances must be filed within five (5) working days from the date
of its known occurrence.  In no case,
however, shall the Company’s liability for retroactive pay exceed a period of thirty
(30) days prior to the date on which the grievance is filed.  Grievances not so filed shall be deemed to
have been waived and shall not be raised thereafter.  Grievances resolved in either Step I, II, or III above shall be
considered satisfactorily settled, closed on the record, and shall not be
reopened.


 


28

















 


Section 5.


Grievances that shall arise between the Union and the Company
concerning employee discipline shall have priority over all other cases under
this Article XIII of the Labor Agreement.


 


29

















 


Article XIV


 


Wages and Rates of
Pay


Section 1.


 


Wage rates for Tier I employees are listed in Appendix A.


Tier I rates apply to employees hired before August 10, 2002.


 


Wage rates for Tier II employees are listed in Appendix B.


Tier II rates apply to employees hired August 10, 2002 and after.


 


Section 2.


 


New employees without previous experience will be hired at the
appropriate rate as shown on the progression rate scales outlined in Appendix
“B” of this Agreement.


 


The first step of the four steps on the Progression Scale will not
apply to employees bidding to another labor grade.


 


The four-step Progression Scale will only apply to new employees hired
after July 22, 1978


 


Section 3.


Employees who have some experience will be placed at a rate on the
progression rate scale commensurate with their experience and ability to
perform the job between the minimum hiring rate for the labor grade up to and
including the full job rate if the employee is fully qualified.  In no case shall any employee receive less
than his present rate when he is accepted for training on another job provided
the move is lateral or up.


 


30

















 


Section 4.


Any employee on a progression rate shall be reviewed periodically and
appropriate adjustments shall be made on the basis of the review period until
the employee reaches the full rate of the job. 
Employees in all labor grades shall be reviewed a minimum of every
thirty- (30) days and progressive adjustments will be granted provided the
employee demonstrates appropriate progression in skill, ability and performance
on the job.


 


Section 5.


Employees working on a scheduled second shift shall be paid a night
shift premium of $.25 per hour. 
Employees working on a scheduled third shift shall be paid a night shift
premium of $0.27 per hour.  Employees
assigned to one shift shall not receive a premium applicable to another shift
for any reason.


 


Section 6.


Any employee on transfer to another job shall be paid the rate of
his/her job or the rate of the job to which he/she is transferred, whichever is
higher.  An incentive employee will be
paid five (5) labor grades higher than his/her base rate in those cases where
the job to which he/she is transferred causes a loss of earnings.  Temporary transfers will not exceed ninety
(90) days in a year unless otherwise agreed to.  If a transfer exceeds ninety (90) days, the job will be
posted.  The Company may temporarily
transfer an incentive employee to another job based on skill and ability in
cases of absence and vacation and to expedite work.  If the transferred employee is the non-junior employee, the
employee will be paid average hourly earnings up to 120% of base rate.  If the transfer exceeds 30 continuous days,
then the employee will be paid average his/her hourly earnings thereafter.  In addition, the Company may temporarily transfer
an employee to another department to train another employee, in which case the
transferred employee will be paid average earned rate from the last full week
worked.


 


Section 7.


Effective immediately, employees operating on machine-controlled
incentive standards who are training new operators will be paid three (3) labor
grades higher than their present classifications.      Training will be conducted
in accordance with the Company’s Training Plan.  Training time will be considered as time spent with a new
operator. When assembly operators train other employees they will be paid the top
step of labor grade 4.


 


31

















 


Article XV


 


Insurance, Benefits,
Pensions and 401(k) Plan


 


Section 1.


Pension, 401(k) plan, health, and dental insurance benefits are set
forth in documents that are separate and apart from this contract booklet.


 


Section 2.


First tier employees (hired before 8/10/2002) coverage will pay $14.00
per week in health insurance premium payments  during the first year of
this contract (8/10/2002 – 6/30/2003); $14.00 per week during the second year
of this contract (7/1/2003 – 6/30/2004) plus 50% of any premium increase up to
a maximum of $10.00.


 


Second tier employees (hired after 8/10/2002) coverage will pay $20.00
per week in health insurance premium payments  during the first year of this
contract (8/10/2002 – 6/30/2003); $20.00 per week during the second year of
this contract (7/1/2003 – 6/30/2004) plus 50% of any premium increase up to a
maximum of $10.00.


 


First tier employees (hired on or before 8/10/2002) who elect dental
coverage will pay $2.00 per week in premium payments during the first year of
this contract (8/10/02002 – 6/30/2003); $2.25 per week during the second year
of this contract (7/1/2003 – 6/30/2004).


 


Second tier employees (hired on or before 8/10/2002) who elect dental
coverage will pay $5.00 per week in premium payments during the first year of
this contract (8/10/2002 – 6/30/2003); $6.00 per week during the second year of
this contract (7/1/2003 – 6/30/2004).


 


Section 3.


All Employees who are covered under their spouse’s medical insurance
policy and who opt out of coverage under the Company’s medical insurance policy
will be paid $100.00 monthly for single (spouse covered under separate policy
provided by spouse’s employer) and $200.00 monthly for family coverage.  Employees who opt out of coverage under the
Company’s policy must provide evidence of medical insurance under another
insurance policy.


 


Section 4.


With respect to pension service credits, all active employment time
accrued prior to the acquisition of the Bremen Bearing Company by RBC, Inc.
shall be counted as years of service for pension eligibility purposes.


 


Section 5.


The Company will pay the cost of Medicare supplemental insurance
premiums, up to $100.00 monthly for employees retiring during the term of this
agreement.


 


32

















 


Section 6.


The pension payment for employees (hired before 8/10/2002) shall be
$28.75 per month per year of service for employees who retire after June 30,
2002.  The payment shall increase
another $.25 (from 28.75 to 29.00) per month per month per year of service for
employees who retire after June 30 2003.


 


Effective January 1, 2003, all second tier bargaining unit employees
with six full months of service shall be eligible to participate in the (401)k
plan provided by RBC Corporation (hereafter the “RBC 401k Plan”) subject to all
the terms and conditions of that plan. 
The RBC 401k plan may be changed from time to time, consistent with
corporate-wide changes made to the RBC 401(k) plan, without further
consultation or bargaining with the Union, provided that the Union is given
notice of such changes at least four (4) weeks in advance of such changes.  The employee may contribute 1% to 15% of his/her
salary pretax. The Company will make a 50% matching contribution of the pretax
amount of the employee’s contribution up to a maximum of 5%.  The employee’s contribution shall be 100%
vested immediately, and the Company’s contributions shall be vested 100% after
three (3) vesting years.


 


Section 7.


Weekly accident and health benefit will be $240  from Aug 10, 2002 to July
31, 2003; $250 from Aug. 1, 2003 to July 31, 2004.


 


Section 8.


The amount of group life and accidental death and dismemberment
insurance for active first tier employees (hired before 8/10/02) will be
$10,000.  Second tier life insurance
will be $8,000.  Life and accidental
death and dismemberment insurance for active employees age 66 or over will be
$6,500.  Life insurance is continued
upon retirement under the Pension Plan  but is reduced to $1,800 upon attainment
of age 66, $1,600 upon attainment of age 67, and $1,500 upon attainment of age
68 and thereafter.


 


Section 9. 
Payroll deductions


The Company agrees to make weekly payroll deductions to up to three
accounts.  The Company assumes no
obligation other than three deductions per employee, per payroll period.


 


Section 10. 
Eye Exam


Approved safety glasses must be worn by all employees in the
manufacturing operation.  The Company
will provide safety glasses as described below.


 


The Company will provide annual eye exams for the employees in jobs
where accurate vision is a requirement, such as Inspectors.  Eye exams will also be provided where the
employee is not covered under the Company provided or another insurance policy.


 


The Company will schedule annual visual exams as follows:


•                  Full exams when
an employee starts in Inspection and every two years thereafter,


•                  Progressive
exams the year between full exams


 


33

















 


The Company will pay for the following:


•                  One pair of
approved safety glasses (frames and lenses), every 24 months for employees
requiring prescription glasses.


•                  Replacement
lenses every 12 months if eye exam warrants the corrected lenses.


 


Non-prescription safety glasses are issued to employees by the
supervisor.  Damaged glasses should be
returned to the supervisor to receive a replacement.


 


Section 11. 
Miscellaneous


The Company will supply coveralls for use by the maintenance
department.


 


34

















 


Article XVI


 


Jury Duty, Bereavement and Military Reserve Pay


 


Section 1.  Jury Duty Pay.


Any employee who is called for Jury Duty service shall be excused from
work for the days on which he serves. 
He shall receive for each such day of jury service on which he otherwise
would have worked, the difference between eight (8) hours of pay at his/her
assigned base rate and the payment he/she receives for jury service.  The employee will present proof of service
and the amount of pay received therefore.


 


Section 2.  Bereavement Pay.


Employees will be paid by the Company for time lost due to death in the
immediate family.  Such pay to be no
more than their assigned rate for a period not in access of three (3) work
days.  Immediate family includes mother,
father of employee, husband or wife, children, brother or sister,
mother-in-law, father-in-law, grandchildren, stepchildren, stepparents,
grandparents, son-in-law and daughter-in-law. The three days allowed must be
taken.  In other words, no pay can be
taken in lieu of the time allowed off. 
If a person decides they only want one or two days off and wishes to
work, this is his/her option.  The days
off must be consecutive and only at the time of the funeral.  The employee cannot take one day at the time
of the funeral and two days two months later for the same bereavement.  In case the three days include Saturday and
Sunday, the employee will not lose two paid days, but will take two additional
days for Saturday and Sunday.  For
example, the employee would take off Friday, Monday and Tuesday with pay.  If the bereavement occurs during the
employee’s vacation, the three days allowed should be taken immediately after
the termination of the vacation time. 
The vacation time does not count against the three days allowed.  If a holiday falls on one of the three days
allowed, an extra day can be taken with pay.


 


Employees will be allowed one day off with no pay due to the death of a
spouse’s grandparents.


 


Section 3.  Military Reserve Training Pay


An active employee who is required to attend Military Reserve Training
Encampment will receive the difference in pay between his assigned base rate
and payment received for his military service. 
Payment hereunder shall be based on proof of service and shall not
exceed a period of eighty (80) hours.


 


35

















 


Article XVII


 


Safety and Health


 


Section 1.


The Company as prescribed under the Laws of the State of Indiana and
the United States shall provide heating, lighting, toilet, locker, and sanitary
facilities and all protective devices necessary to protect the health of
employees.  The Union will at all times
cooperate with and assist the Company in maintaining and improving safety and
health conditions in the plant.


 


Section 2.


The Company will make every effort to avoid scheduling only one
employee per shift.


 


Section 3.


The Company has the right to conduct Drug & Alcohol testing for
cause and reasonable suspicion in accordance with the Company’s drug and
alcohol policy, attached as Appendix D. 
Positive test results will result in disciplinary action up to and
including termination.


 


36

















 


Article XVIII


 


Plant Rules
& Disciplinary Action


 


Section 1.


The Company shall have the right to issue rules and reasonable
regulations from time to time governing the conduct of employees in the
workforce, and it is the duty of each employee to familiarize himself/herself
with such rules and regulations and to comply herewith.  This does not constitute acceptance by the
Union of any specific rules not in compliance with the provisions of this
Agreement.


 


The union reserves the right to grieve the rule.


 


Section 2.


Disciplinary action will be conducted as follows:


 


	
  Step 1.

  	
   

  	
  Verbal warning

  	
   

  	
  Step 3. Suspension 1-5 days

  
	
  Step 2.

  	
   

  	
  Written warning

  	
   

  	
  Step 4. Termination

  



 


Steps may be skipped due to the seriousness of the event up to an
including immediate termination.  All
steps will be documented and remain in employee’s file.  However, actions will become inactive as
follows (providing no other disciplinary action is taken):


 


	
  Step 1

  	
   

  	
  6 months

  	
   

  	
  Step 3

  	
   

  	
  12 months

  
	
  Step 2

  	
   

  	
  12 months

  	
   

  	
  Step 4

  	
   

  	
  Will not be removed

  



 


Management has the right to administer disciplinary action in
accordance with company policy.


 


37

















 


Article XIX


 


Leave of Absence


 


Section 1.


A.                                   Employees who are to
be absent for more than five working days for personal illness or physical
disability and who have acquired one (1) year of service with the Company, will
be granted a leave of absence up to one (1) year.  Employees with sixty days seniority, but less than once (1) year
of service will be granted a leave of absence for the period equal to their
length of service.  Leaves of absence
will only be granted upon written request and when accompanied by a physicians
statement justifying the reason.  Such
leaves will be granted without pay except seniority will accumulate for the
duration of the leave.


 


Requests for personal leaves of unusual reasons may be made through the
Human Resources Manager.  Such leaves,
if granted, shall not be in excess of two weeks.  Paid time available, such as vacation, may be used at the
employee’s request.


 


B.                                     Employees applying
for a medical leave of absence or returning from a leave of absence may be
subject to a medical examination and approval by a Company appointed physician.


 


C.                                     An employee with a
physician’s statement must renew medical certification every thirty–(30) days.


 


D.                                    Family Medical
Leave Act


                                                Time
off for medical leaves of absences will run concurrently with Family Medical
Leave (FML) if the employee is eligible under the provisions of Family Medical
Leave Act (FMLA).  The Company will
administer FML with a 12-month rolling period. 
Paid time available, such as vacation, may be used at the employee’s
request. Required documentation must be completed as required by the Act.


 


Section 2.


Any employee who is elected or appointed to a position with the
International Union (UAW) will be granted a leave of absence for the duration
of his assignment upon written request by the International Union.  Seniority will accumulate during such leave
but without pay or other benefits except for pension purposes.


 


Section 3.


A.                                   Failure to report to
work within five days after the expiration of a leave of absence or extension
thereof shall constitute a voluntary resignation


 


38

















 


B.                                     Employees
returning to work after a leave of absence will be placed on the same job held
at the beginning of the leave based on their seniority and provided they are
able to perform the full job requirements.


 


Section 4.


A.                                   Any employee who has
been granted a leave of absence and who while on leave of absence, seeks or
accepts other employment or who engages in any business or occupation shall be
considered as having voluntarily quit. 
Exceptions to this Section may be made by mutual agreement.


 


Section 5.  Other Leave of Absences


Other leave of absences include illness or injury of a family member
that may be eligible under FMLA, military duty, jury duty, bereavement, and
personal leave.  Proper documentation
and approval is needed as required by the Company.  Paid time available, such as vacation, may be used at the
employee’s request.


 


Section 6.  Payment of Insurance Premiums during Leave of
Absences


Employees will be required to pay their share of insurance premiums,
and may elect to pay them in two different ways.


1.                                       Employee may
elect to pay by the 25th of the month while they are out on leave of
absence; or


2.                                       Employee may
designate payment upon return to work on a basis of 1.5 times regular weekly
premium until the premiums are recouped.


 


39

















 


Article XX


 


Amendments and Modifications


 


Section 1.


Neither party shall be obligated to negotiate further on any matter
during such term.  This Agreement may,
however, be modified by mutual agreement of the parties, provided that all such
modifications are in writing and properly executed.  This Agreement supersedes and voids all prior agreements, if any,
written or oral, or established by custom, practice, or precedent.  In the event of the provisions of this
Agreement shall become invalid or unenforceable by reason of any federal or
state law or executive order now existing or hereafter enacted, such invalidity
or unenforceability shall not have any effect on the remaining provisions of
this Agreement.


 


Section 2.


No amendments or modifications of this Agreement shall be valid except
when committed to writing and signed by the authorized representatives of both
parties.  The authorized representatives
of the Union shall include the duly authorized representatives of the
International Union and the duly authorized representatives of the Local Union
No. 1368.


 


40

















 


Article XXI


 


Termination and Notice


 


Section 1.


This agreement between the parties shall remain in force for the period
commencing on August 10, 2002 and ending 12:00 midnight on August 9, 2004.  It shall automatically renew itself from
year to year thereafter unless written notices of the desire to terminate or
amend any portion of any of the terms hereof is given by either party to the
other, at least sixty (60) days prior to August 9, 2004, or in the event this
Agreement is renewed such notice shall then be given at least sixty (60) days
prior to any subsequent annual expiration date.


 


If notice of the desire to terminate or amend shall be given, as
provided in the preceding paragraph, negotiations for the new or amended
Agreement shall being not later than ten (10) days subsequent to such notice,
and shall continue until agreement has been reached; and during such
negotiations this Agreement shall remain in full force and effective provided,
however, that if negotiations continue beyond the terminal date of this
Agreement, either party then terminate this Agreement upon ten (10) days
written notice to the other party.


 


41

















 


	
  Appendix “A”

  	
   

  
	
  Rates
  of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2002

  	
   

  
	
  Employees Hired Before
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12.82

  	
   

  	
  12.97

  	
   

  
	
  Inspection LG 2

  	
   

  	
   

  	
   

  	
  12.85

  	
   

  	
  12.95

  	
   

  	
  13.10

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  12.96

  	
   

  	
  13.06

  	
   

  	
  13.16

  	
   

  	
  13.31

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  13.07

  	
   

  	
  13.17

  	
   

  	
  13.27

  	
   

  	
  13.42

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Production
  Attendant  LG6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  17.51

  	
   

  	
  17.64

  	
   

  	
  17.77

  	
   

  	
  17.97

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  17.63

  	
   

  	
  17.76

  	
   

  	
  17.89

  	
   

  	
  18.08

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  17.63

  	
   

  	
  17.76

  	
   

  	
  17.89

  	
   

  	
  18.08

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  17.84

  	
   

  	
  17.97

  	
   

  	
  18.10

  	
   

  	
  18.29

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.65

  	
   

  
	
  Team Leader

  	
   

  	
  20.53

  	
   

  	
  20.68

  	
   

  	
  20.83

  	
   

  	
  21.05

  	
   

  



 


 


	
  Appendix “A”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2003

  	
   

  
	
  Employees Hired Before
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  13.17

  	
   

  	
  13.32

  	
   

  
	
  Inspection  LG 2

  	
   

  	
   

  	
   

  	
  13.20

  	
   

  	
  13.30

  	
   

  	
  13.45

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  13.31

  	
   

  	
  13.41

  	
   

  	
  13.51

  	
   

  	
  13.66

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.62

  	
   

  	
  13.77

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  17.86

  	
   

  	
  17.99

  	
   

  	
  18.12

  	
   

  	
  18.32

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  17.98

  	
   

  	
  18.11

  	
   

  	
  18.24

  	
   

  	
  18.43

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  17.98

  	
   

  	
  18.11

  	
   

  	
  18.24

  	
   

  	
  18.43

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  18.19

  	
   

  	
  18.32

  	
   

  	
  18.45

  	
   

  	
  18.64

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21.00

  	
   

  
	
  Team Leader

  	
   

  	
  20.88

  	
   

  	
  21.03

  	
   

  	
  21.18

  	
   

  	
  21.40

  	
   

  



 


42

















 


	
  Appendix “B”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2002

  	
   

  
	
  Employees Hired After
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9.82

  	
   

  	
  9.97

  	
   

  
	
  Inspection LG 2

  	
   

  	
   

  	
   

  	
  9.85

  	
   

  	
  9.95

  	
   

  	
  10.10

  	
   

  
	
  Shift Helper/Sorter  LG 3

  	
   

  	
  9.96

  	
   

  	
  10.06

  	
   

  	
  10.16

  	
   

  	
  10.31

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  10.07

  	
   

  	
  10.17

  	
   

  	
  10.27

  	
   

  	
  10.42

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  13.61

  	
   

  	
  13.74

  	
   

  	
  13.87

  	
   

  	
  14.07

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  13.73

  	
   

  	
  13.86

  	
   

  	
  13.99

  	
   

  	
  14.18

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  13.73

  	
   

  	
  13.86

  	
   

  	
  13.99

  	
   

  	
  14.18

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  13.94

  	
   

  	
  14.07

  	
   

  	
  14.20

  	
   

  	
  14.39

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  17.65

  	
   

  
	
  Team Leader

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


 


	
  Appendix “B”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2003

  	
   

  
	
  Employees Hired After
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10.17

  	
   

  	
  10.32

  	
   

  
	
  Inspection  LG 2

  	
   

  	
   

  	
   

  	
  10.20

  	
   

  	
  10.30

  	
   

  	
  10.45

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  10.31

  	
   

  	
  10.41

  	
   

  	
  10.51

  	
   

  	
  10.66

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.62

  	
   

  	
  10.77

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  13.96

  	
   

  	
  14.09

  	
   

  	
  14.22

  	
   

  	
  14.42

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  14.08

  	
   

  	
  14.21

  	
   

  	
  14.34

  	
   

  	
  14.53

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  14.08

  	
   

  	
  14.21

  	
   

  	
  14.34

  	
   

  	
  14.53

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  14.29

  	
   

  	
  14.42

  	
   

  	
  14.55

  	
   

  	
  14.74

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Team Leader

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


43

















 


APPENDIX
“D”


 


STATEMENT OF COOPERATION


 


ALCOHOL AND DRUG ABUSE


 


Both the Company and Union express their collective determination to
deal effectively and constructively with the problem of alcohol and drug abuse
among the Bargaining Unit employees. 
The Company and Union recognize that excessive use of alcohol or drugs
by employees impairs their ability to function in an effective and safe manner
and contributes to increased absenteeism, tardiness, and potential safety
problems.  Further, that use of either
on the premises or reporting to work in an intoxicated state is in violation of
the plant work and safety rules.  Both
the Company and Union agree that a joint effort by both parties will be
extended to help Bargaining Unit employees afflicted and develop a system for
early identification and detection. 
Thereafter, arrangements will be made to refer afflicted employees for
proper treatment and appropriate follow-ups.


 


Both the Company and Union agree that neither the Management nor Union
officials are always able to provide the level of motivation required by an
employee affiliated by either alcohol or drug dependency.


 


As a result, both parties recognize that mutual cooperation is
necessary to encourage each afflicted employee to recognize his or her problem
and seek professional treatment.  And
further to adopt the personal conviction to respond to treatment and to
maintain a resolve to avoid future alcohol and drug abuse after completing a
recognized program of treatment.


 


Both the Company and Union agree to implement the program stated above
with the Alcohol and Drug Abuse Committee, and will work cooperatively outside
of the grievance procedure of the contract on these problems.  The responsibilities of this Committee will
be as follows.


 


1.                                       To
assure any afflicted employee that discussions that take place will be held in
the strictest of confidence.


 


2.                                       To communicate
to all employees that they may consult on a confidential basis with plant
medical personnel, or an outside qualified facility or agency, concerning their
problem without fear or disciplinary action being based on such a discussion or
program of treatment being initiated.


 


3.                                       To attend such
meetings and seminars to evaluate and determine the appropriateness of programs
or treatment offered by various community agencies, as well as establish
programs for educational and informational use by both Union members and
Management at a plant level.


 


44

















 


Both the Company and Union agree that nothing contained herein is to be
construed or constitute any waiver of the Management’s right to maintain or
invoke discipline in such cases of misconduct which may result from, or be
associated with, the use of alcohol or drugs at Union reserves the right to
exercise its rights to process any grievances concerning such matters as may be
permitted in accordance with the contract.


 


During the following initiation of a program of treatment, an afflicted
employee shall not receive nor expect any special privileges or exemptions from
all of the conditions required of employees of the Company.


 


Both the Company and Union will encourage employees with either of the
problems described above to voluntarily participate without the necessity of
disciplinary action being taken.


 


When a leave of absence is necessary so that an afflicted employee may
undergo treatment for either alcoholism or drug dependency from a recognized
program, provided the employee has voluntarily submitted for such treatment,
they will be granted such a leave of absence and will be eligible to receive
the benefits provided in accordance with the contract during said leave.  An employee may be granted only one such
leave under these provisions, except that an additional leave may be granted
only with prior approval of the Alcohol and Drug Abuse Committee.


 


The Alcohol and Drug Abuse Committee shall consist of two (2) members
from the Management and two (2) members appointed by the Union and, should the
performance of their duties require that time be spent during regularly
scheduled working hours, the Union Committee Member will be paid his/her
regular rate of pay up to a maximum of four (4) hours per month.  Any time spent at furthering the objectives
of this program or attending seminars offered by various community agencies
with respect to alcoholism or drug abuse outside the Committee Member’s
regularly scheduled working hours shall not be compensated.


 


Prior to attending any outside community or professional programs which
will necessitate the absence of the Union committee member during his/her
regularly scheduled hours, permission to do so must be obtained from the Human
Resources Manager.


 


45

















 


8/10/02


Alcohol & Drug
Policy


 


POLICY STATEMENT


It is the policy of our Company to create a drug-free, alcohol-free
workplace in accordance with the statement of cooperation for Alcohol and Drug
Abuse.  The use of controlled substances
and/or alcohol in the workplace or working under the influences of alcohol or
controlled substances is inconsistent with the behavior expected of employees,
subjects all employees and visitors to our facilities to unacceptable safety
risks, and undermines the Company’s ability to operate effectively and
efficiently.  The manufacture,
distribution, possession, sale, or use of a controlled substance or alcohol in
the workplace or while engaged in company business off our premises is strictly
prohibited and will lead to disciplinary action up to and including
termination.  Use of drugs or alcohol is
also prohibited during nonworking time to the extend that it impairs an
employee’s ability to perform on the job.


 


PROCEDURE


1.                                       Employees will
be required to submit to a drug/alcohol test under the following circumstances:


 


A.                                   Post Accident
Testing:  An employee shall be tested
for the use of controlled substances, as soon as possible, after a reportable
accident occurring while on Bremen Bearings, Inc. time or business or on any
work site.  A “reportable accident”
means an accident resulting in property damage or resulting in any person, as a
result of the accident, receiving medical treatment away from the scene of the
accident.


 


B.                                     Whenever there is
a reasonable cause to believe that an employee’s ability to perform his/her job
is impaired due to the use of drugs/alcohol, as indicated hereafter.


 


2.                                       Any employee
whose drug/alcohol test result is positive will be subject to three day
suspension pending investigation.


 


3.                                       Refusing to take
a drug/alcohol test or any behavior intended to interfere with the valid
results of that test will be considered as a positive test and a violation of
this drug/alcohol policy warranting disciplinary action up to and including discharge.


 


4.                                       After
notification of a positive test, the employee will have 24 hours to decide if
he/she elects to have the same sample re-tested by a different laboratory at
his/her own expense.


 


5.                                       Employees taking
medication must report such use to their immediate supervisor if the medication
is likely to interfere with the employee’s ability to function safely on that
job.  The employee may be removed from
his/her job or reassigned to another job until return to that position is
deemed appropriate.  The unauthorized
use of prescription drugs that were prescribed for another person will be
considered a violation of this drug policy.


 


46

















 


REASONABLE CAUSE
TESTING


 


The Company shall have reasonable cause for drug/alcohol testing if an
employee is having work performance problems or displaying behavior described
below (not all inclusive):


 


•                  Abnormally
dilated or constricted pupils


•                  Glazed stare -
redness of eyes


•                  Flushed face


•                  Changing or
slurring of speech


•                  Constant
sniffing


•                  Needle marks
(Not applicable if a diabetic)


•                  Change in
behavior


•                  Forgetfulness or
poor concentration


•                  Constant fatigue
or hyperactivity


•                  Smell of alcohol


•                  Difficulty
walking


•                  Slowed reactions


 


Except for smell of alcohol and needle marks, an employee must show two
or more indications to establish probably cause.


 


If a supervisor observes an employee engaging in such behavior
affecting an employee’s job performance, the supervisor will advise the Human
Resources Manager or designee and a union representative of the behavior.  The Human Resources representative and the
union representative will talk with and observe the employee to determine if
the employee is likely to be under the influence of alcohol and/or drugs.


 


If the human resources representation and the union representation
determine that it is likely the employee is under the influence of alcohol or
drugs, the employee will be required to submit to a breath-alcohol test and/or
urine drug test.  If the employee tests
positive or refuses to be tested, he/she will be subject to discipline, up to
and including, discharge.  If the human
resources representative concludes that it is likely the employee is under the
influence of alcohol and drugs and the union representation disagrees, the
employee will be given an opportunity to voluntarily submit to testing to
exonerate him/herself.  If the employee
declines, the Company may take such disciplinary action it deems appropriate up
to and including discharge, subject to the employee’s right to grieve the
disciplinary action.


 


If an employee requests assistance prior to any demand that the
employee submit to post accident or probable cause drug/alcohol testing, the
Human Resources Manager or Administrator will arrange for assessment by an
appropriate substance abuse professional (SAP).  If the SAP determines that treatment would be appropriate, the
employee will be offered an opportunity to participate in a drug/alcohol
rehabilitation program with or without a leave of absence as deemed appropriate
by the Alcohol and Drug Awareness Committee.


 


47

















 


DEFINITIONS


 


1.                                       Alcohol use means
the consumption of any beverage, mixture, or preparation, including any
medication containing alcohol which, when consumed, causes an alcohol
concentration in excess of those established by the State of Indiana for
driving while intoxicated.


 


2.                                       Controlled
Substance use means a positive test at the established government
standards as defined by HCFA/DOT 49 CFR Part 40 for any of the following
substances.


 


•                  Marijuana


•                  Cocaine


•                  Opiates


•                  Amphetamines


•                  Phencyclidine
(PCP)


 


48

















 


6/28/99


Disciplinary Action
Policy


 


POLICY STATEMENT


It is the intent of management to promote safety, quality,
productivity, and good human relations by following an improvement plan to
provide fair and equal treatment to all employees and to promote understanding
of acceptable conduct and encourage corrective improvement in behavior where required.


 


PROCEDURE


This procedure is for disciplinary action related to work performance
and conduct-related problems.  Union
employees have the right to union representation at all levels of discipline.


 


The progressive discipline process for absenteeism is separate from
this system in accordance with the attendance policy.


 


The disciplinary action steps are initiated by the employee’s
supervisor and/or management representative and may be built on a combination
of different types of violations.


 


Step 1. Verbal


Counsel the
employee and issue a verbal warning. 
Attempt to determine and resolve the cause of the problem.  At the same time, state specifically that
the employee is receiving a formal verbal warning.  Place a discipline document in the employee’s file describing the
incident and the discussion.  Verbal
warnings will be active for a six (6) month period before becoming inactive.


 


Step 2. Written


Hold a meeting
with the employee, at which time you explain the nature of the offense and warn
the employee that any further misconduct could lead to a suspension, or
discharge.  Issue a written warning of
the offense.  Written warnings will be
active for a twelve (12) month period before becoming inactive in employee’s
file.


 


Step 3. Suspension


Hold a meeting
with the employee, at which time you explain the nature of the offense and warn
the employee that any repetition could lead to discharge.  Issue a written document of the offense,
including a reference to the prior offense(s). 
A one (1) to five (5) day suspension (without pay) may occur as part of
this step and will be active for a twelve (12) month period before becoming
inactive.


 


Step 4. Discharge


A further
instance of misconduct within twelve (12) months of suspension may result in
discharge.


 


49

















 


IMMEDIATE SUSPENSION
AND/OR DISCHARGE may take place at any time, without
regard to the preceding steps, if the employee commits an offense for which
immediate suspension and/or discharge is specified as a penalty or if, in the
judgment of Management, the employee’s continued presence would be contrary to
the best interests of the Company or any of its employees.  Immediate discharge may be justified for
these types of offenses:


 


•                  Theft of company
property or that of other employees


•                  Insubordination
or refusing to follow instructions


•                  Violation of the
Company’s Substance Abuse Policy


•                  Deliberate
destruction of company property


•                  Deliberate
injury to another person


•                  Violating a
confidence; unauthorized release of confidential information


•                  Violation of the
Company’s harassment policy


•                  Threatening
another employee with physical harm


•                  Deliberately
endangering another employee


•                  Any other
violation of the plant rules which, in the judgment of Management, seriously
threaten the welfare of the Company or any employee


 


Distribution of documentation of disciplinary action steps to include:


Human Resources Manager- original to be placed in employee’s file


Employee


Union Office


 


50

















 


	
  ATTENDANCE POLICY

  	
   

  	
  BREMEN BEARINGS

  
	
  8/10/02

  	
   

  	
  Effective 8/10/02

  



 


It is the Company’s philosophy that employees should be responsible for
their attendance and absenteeism from work. 
Effective August 10, 2002, an absenteeism policy will become effective
utilizing a point system that tracks both full and partial day absences on a
12-month rolling calendar.


 


All absences will be documented; however, points will not be assessed
for the following:  Approved leave of
absences (Medical, FMLA, Workers’ Compensation, Bereavement, Military, Jury
Duty, Personal Leaves, Union), Snow Emergency Days, Disciplinary Suspensions,
Holidays, Vacations, time when employee is sent home by the Company due to no
work, and if employee goes home because no work is available in his/her
department.


 


Points will be assessed as follows:


 


	
  •

  	
   

  	
  One point (1)

  	
   

  	
  Each full day absent (more than 4 hours)

  
	
  •

  	
   

  	
  One/half point (1/2)

  	
   

  	
  Partial day absent (less than 4 hours

  (tardy in excess of 6 minutes. leave/return, leave early)

  
	
  •

  	
   

  	
  One/half point (1/2)

  	
   

  	
  Failure to call in to supervisor or call in voice mail at least 60
  minutes before beginning of shift or notify supervisor previously with a
  written notification (form)

  
	
  •

  	
   

  	
  8 points

  	
   

  	
  3 consecutive days no call-no show

  



 


Each period of illness involving consecutive days will be assessed one
(1) point, provided proper medical documentation is presented upon return to
work.


 


The following corrective action will be taken in any 12 consecutive
month period in which an employee has accumulated the following points for
unexcused absences:


 


	
  2 points

  	
   

  	
  —

  	
   

  	
  Verbal warning

  
	
  4 points

  	
   

  	
  —

  	
   

  	
  Written warning

  
	
  6 points

  	
   

  	
  —

  	
   

  	
  3-day Suspension without pay

  
	
  8 points

  	
   

  	
  —

  	
   

  	
  Termination

  



 


The Company will recognize and reward employees who have 6 months of
perfect attendance with a $100.00 payment.


 


51

















 


Training Plan


6/28/99


 


Training employees on jobs is the responsibility of the supervisor in
the department; however, the use of experienced operators as instructors is
critical to the success and effectiveness of the training process.  The Company will utilize the following
outline to ensure effective training.


 


1.                                       Supervisor
assigns the trainee to an operator who will review the following with the
employee:


 


•                  Work instructions


•                  Personal
protective equipment required


•                  Safety measures


•                  Quality and
inspection requirements


•                  Forms and
reports to be completed


•                  Equipment
operation


•                  Product
characteristics of good and bad quality


•                  Incentive
criteria (if applicable)


•                  Other information
and skills needed for success of training


 


2.                                       The
supervisor and/or trainer will review training status with trainee a minimum of
once every week to identify progression and areas that need special attention.


 


3.                                       Training
criteria will be established for each job through a coordinated effort of
supervisors and operators.


 


4.                                       A
time-line will be identified and established to monitor normal training time.


 


A training committee will be established to establish training criteria
and time lines as well as training techniques and methods.  The committee will consist of 2 supervisors,
2 operators, and a member of the bargaining committee.


 


Human Resources and the Plant Manager will monitor the program to
ensure completeness and effectiveness.


 


52

















 


It is agreed that the foregoing language represents the terms and
conditions of a new labor agreement between the Bremen Bearings of RBC, USA,
and Local 1368 of the U.A.W.


 




	
  For the Union

  	
   

  	
  For the Company

  






 


	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  



Agreed to this 10th day of August, 2002.


 


53