exv10w6



 





Exhibit
10.6




Plant Closing Agreement

AMERIDRIVES INTERNATIONAL AND UNITED STEEL, PAPER AND

FORESTRY, RUBBER, MANUFACTURING ENERGY, ALLIED INDUSTRIAL

AND SERVICE WORKERS INTERNATIONAL UNION LOCAL 3199-10




1. This Agreement is between American Enterprises MPT, L.P., its parent, subsidiaries, affiliates,
officers, directors, agents and representatives (hereinafter referred to as “the Company” or “the
Employer”) and United Steel, Paper and Forestry, Rubber, Manufacturing Energy, Allied Industrial
and Service Workers International Union, AFL-CIO-CLC and its Local Union 3199-10 (hereinafter
referred to as “the Union”).



2. The parties have had the opportunity to discuss all issues associated with the Employer’s
decision to close the facility located at 1802 Pittsburgh Avenue, Eric Pennsylvania 16502. This
Agreement sets forth their understandings and commitments related to the closing of the facility.



3. To be eligible for the package of separation benefits provided by this Agreement, each
individual employee must be on the payroll as of September 20, 2007 and remain employed by the
Company until the termination date assigned to him/her by the Employer, the closing date or date
otherwise agreed to by the Employer and the Union. Employees who separate their employment prior to
such date will not be eligible for the severance, completion bonus or other monetary benefits as
provided in this Agreement.



4. The
Company will allow employees to volunteer for layoff as employment is reduced during the
plant close down. Approval of such requests will be based on the determination by the Company that
it will be able to cover the necessary skills and resources required to perform the work with the
remaining employees. Where there are multiple requests for voluntary layoff within a job
classification, seniority will be given preference provided the remaining employees are able to
perform the work remaining.



5. The Employer and the Union, agree that it is in the mutual interests of all parties to assure
that the closure of this facility be done in a cooperative manner and that needs of the Company’s
employees and customers are met to the best of the Company’s and employee’s abilities.



6. The Employer will not contest the unemployment compensation eligibility of employees whose
employment is terminated as a result of the plant closing and will cooperate with State of
Pennsylvania unemployment compensation representatives to facilitate the receipt of unemployment
compensation and any and all other local, state and/or federal benefits.



7. An employee who leaves active employment with the Employer, for reasons other than medical
leave, layoff, or company approval, prior to the termination date assigned to him/her by the
Employer, the closing date or date otherwise agreed to by the Employer and the Union is not
entitled to any of the separation benefits provided in this Agreement.



 









 





8. This
is the complete Agreement between the Employer and the Union related to the closure of the
Employer’s facility located at 1802 Pittsburgh Avenue, Erie Pennsylvania. If part of the Agreement
is deemed unenforceable, the parties desire that the remaining provisions of the Agreement remain
in effect. The parties agree that if any portion is deemed unenforceable the parties will meet to
negotiate a settlement for the portion(s) deemed unenforceable within fifteen (15) working days of
such knowledge.



9. Any dispute over the interpretation or application of this Agreement will be handled under the
grievance/arbitration procedure provided in the current collective bargaining agreement, or through
appropriate judicial remedies.



10. The current Collective Bargaining Agreement will remain in effect until the terms of this
Agreement are complied with. In the event the Company does not shut down its facility located at
1802 Pittsburgh Avenue, Erie Pennsylvania and terminate all bargaining unit employees, the current
Collective Bargaining Agreement dated September 20, 2004 through September 19, 2007 remains in
effect.



11. Any conflict between the current Collective Bargaining Agreement and this Agreement will result
in this Agreement being the controlling document. If the Company reverses its decision to close
this facility, this Agreement will be voided, and the Collective Bargaining Agreement dated
September 20, 2004 through September 19, 2007 will remain in effect.



12. The Company has requested and the Union and bargaining unit employees have agreed to cooperate
and to use their best efforts to effectuate a smooth relocation of production operations. For
this consideration and cooperation, the Company agrees to provide the following benefits within one
week of each employee’s date of separation from the Company:




	 	a)	 	Payment for vacation earned but not yet taken;
	 
	 	b)	 	Their final paycheck;
	 
	 	c)	 	Payment for any holidays occurring during the month of the employee’s
separation for which he or she has not already received payment.
	 
	 	d)	 	Completion Bonus as provided for in Appendix A.





13. The Company shall also pay severance pay as provided in Appendix B to all eligible employees.
Employees will have up to twelve (12) months following the date they are separated to request
payment of their severance pay. Receipt of severance pay will terminate the seniority rights of the
employee. An employee’s seniority rights will automatically terminate after twelve (12) months from
his or her date of separation and



 









 




payment of severance pay will occur following this date. The amount of severance pay an employee is
entitled to will be determined based on the date the employee is laid off, not the date the
employee requests payment of his/her severance pay.




14. The supplemental Unemployment Benefit Fund program will be discontinued as of October 1, 2007.
All monies in the SUB fund will be distributed to all employees as soon as possible.



15. All unresolved grievances still outstanding at the time of plant closing may proceed to
arbitration after the completion of a third step grievance
meeting.

16. The Company will keep the Union and all employees updated on the person(s) responsible for
benefits administration. Employees must keep the Company informed of their current mailing address.



17. The Company will work with pension administrator Prudential to facilitate
the pension calculation and retirement process for employees separated as a result of the plant
closing.



IN WITNESS WHEREOF, the Employer and the Union have signed this Closing
Agreement this:         
             
             
      day of   
           
          
                    
            
    2007.



	 	 	 
	FOR THE UNION:

	 	FOR THE COMPANY:
	 
	 	 
	/s/
[ILLEGIBLE]
	 	/s/ [ILLEGIBLE]
	 

	 	 





 









 






Exhibit A




Completion Bonus




	 	 	 	 	 
	 	 	Estimated Number of	 	 
	Anticipated Date of	 	Associates to be	 	Completion Bonus per
	Separation	 	Separated	 	Associate
	From September 2007 -
December 2007
	 	23	 	$   750
	From January 2008 -
March 2008
	 	20	 	$1,750
	From April 2008 -
December 2008 
	 	31	 	$4,250
	From January 2009 -
December 2009
	 	  0	 	$7,500






In the event an employee is laid off and subsequently returns to work, he or she shall receive the
highest completion bonus to which he or she is eligible. Any earlier paid completion bonus will be
off-set against a later paid completion bonus.



Exhibit B




Severance Package




	 	 	 
	Years of Service	 	 
	(Number of people in group)	 	Dollars per Person
	< 5 Years (14)
	 	$  2,000
	5 but < 10 Years (2)
	 	$  2,500
	10 but < 15 Years (5)
	 	$  4,500
	15 but < 20 Years (7)
	 	$  7,000
	20 but < 25 Years (40)
	 	$10,000
	25 but < 30 Years (3)
	 	$13,000
	30 + Years (3)
	 	$15,000