**Exhibit 10.9**

 

**COLLECTIVE BARGAINING AGREEMENT**

** **

**Between**

** **

**SCHEID VINEYARDS INC.**

** **

**and**

** **

**UNITED FARM WORKERS OF AMERICA, AFL-CIO**

 

January 25, 2002 -December 31, 2006

 

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TABLE OF CONTENTS

 
| PREAMBLE                                                             |   |   |
|----------------------------------------------------------------------|--------|--------|
| ARTICLE 1: RECOGNITION                                               |   |   |
| ARTICLE 2: UNION SECURITY                                            |   |   |
| ARTICLE 3: HIRING                                                    |   |   |
| ARTICLE 4: SENIORITY                                                 |   |   |
| ARTICLE 5: LAYOFF AND  RECALL                                        |   |   |
| ARTICLE  6: PROMOTION, DEMOTION AND TRANSFER                         |   |   |
| ARTICLE  7: GRIEVANCE AND ARBITRATION                                |   |   |
| ARTICLE 8: STRIKES AND  LOCKOUTS                                     |   |   |
| ARTICLE 9:  DISCIPLINE AND DISCHARGE                                 |   |   |
| ARTICLE 10: LEAVES OF  ABSENCE                                       |   |   |
| ARTICLE 11:  WORKING CONDITIONS AND SAFETY                           |   |   |
| ARTICLE 12:  MANAGEMENT AND UNION RIGHTS                             |   |   |
| ARTICLE  13: LABOR CONTRACTORS AND SUBCONTRACTING OF WORK            |   |   |
| ARTICLE 14: HOURS AND  OVERTIME                                      |   |   |
| ARTICLE 15: WAGES                                                    |   |   |
| ARTICLE 16: VACATIONS  AND BONUS                                     |   |   |
| ARTICLE 17: HOLIDAYS                                                 |   |   |
| ARTICLE  18: ROBERT F. KENNEDY FARM WORKERS MEDICAL PLAN             |   |   |
| ARTICLE  19: SCHEID VINEYARDS INC. 401 (k) DEFINED CONTRIBUTION PLAN |   |   |

 

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| ARTICLE 20: DURATION                                            |   |   |
|-----------------------------------------------------------------|--------|--------|
| APPENDIX  “A”: SCHEDULE OF HOURLY WAGE RATES          |   |   |
| APPENDIX “B”:  SCHEDULE OF PIECE RATES                |   |   |
| APPENDIX “C”: AUTHORIZATION FOR VOLUNTARY  ASSESSMENT |   |   |
| APPENDIX “D”: RULES OF  CONDUCT                       |   |   |

 

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PREAMBLE

 

                This CollectiveBargaining Agreement (hereinafter called the “Agreement”) is between SCHEIDVINEYARDS INC. (hereinafter called the “Company”), and THE UNITED FARM WORKERSOF AMERICA, AFL-CIO (hereinafter called the “Union”), and said CollectiveBargaining Agreement shall operate for the purpose of establishing uniformwages, hours, and working conditions as hereinafter defined.

 

                The parties agreeas follows:

 

 

 

ARTICLE 1

 

RECOGNITION

 

                A.            The Company recognizes the rightsand obligations of the Union as the sole and exclusive bargaining agent tonegotiate wages, hours and conditions of employment, and to administer thisAgreement on behalf of covered workers. The term “worker” shall mean personsperforming agricultural labor in the vineyards or in support of such labor, butnot include family members of management, interns, security guards, managementtrainees, clerical, sales or supervisory workers who have the authority tohire, transfer, suspend, layoff, recall, promote, discharge, assign, reward ordiscipline other workers or the responsibility to independently direct them withoutdiscretion or adjust their grievances or effectively recommend such action, if,in connection with the foregoing, the exercise of such authority is not of amerely routine manner or clerical in nature, but requires the use ofindependent judgment.

 

                B.            Both the Company and the Union willmake known to the workers the obligations of the parties set forth in thisAgreement, and in addition, the Company shall so inform its supervisors.

 

                C.            Neither the Company nor any of itsrepresentatives will take any action to disparage, denigrate or subvert theUnion, nor promote or finance a decertification petition. Neither the Union norany of its representatives will take any action to disparage, denigrate orsubvert the Company.

 

                D.            The Union and the Company agree withthe objective of a fair day’s work for a fair day’s pay. The Union and theCompany further agree with the objective of a safe, productive and incentivebased work environment. In accordance with these objectives, the workersrecognize their obligations in carrying out their job responsibilities andassignments.

 

 

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                E.             In accordance with the law noemployee shall be discriminated against in his or her employment on the basisof race, color, religion, creed, age, sex, national origin, ancestry, maritalstatus, union activity or lack thereof or disability.

 

                F.             TheUnited Farm Workers Union was certified to represent all agricultural workersof the Company in the State of California by the Agricultural Labor RelationsBoard on April 30, 1992 in Case Number 92-RC-1-SAL.

 

 

 

ARTICLE 2

 

UNION SECURITY

 

                A.            Union membership shall be acondition of employment. Each worker shall be required to become a member ofthe Union immediately following fifteen (15) continual days of work after thebeginning of employment. The Company will advise new workers that it is acondition of their employment that they must become a member of the Unionimmediately following fifteen (15) continual days of work after the beginningof their employment. The Company shall furnish the workers membershipapplications and dues check off authorization forms as provided by the Union.The Union agrees to admit new workers into the Union.

 

                B.            Any worker who fails to become aUnion member within the time limit set forth herein or who fails to pay therequired initiation fee and periodic dues shall be immediately discharged orsuspended within five (5) work days after written notice from the Union to theCompany. Periodic dues is defined as a percentage of a worker’s gross wagesbefore taxes which are deducted from each pay check as provided in Section E.

 

                C.            The Union will notify the Company inwriting of the amounts of deduction within thirty (30) days of the execution ofthis Agreement and thirty (30) days before the effective date of any changes.

 

                D.            The Company agrees to deduct fromeach worker’s pay, the Union’s normal initiation fee and all periodic dues asrequired by the Union. The Company shall make such deductions upon presentationby the Union of individual authorizations,

signed by the worker, directing the Company to make such deductions.The Company shall make such deductions from the worker’s pay for that payrollperiod in which it is submitted, provided that it is submitted seven (7) daysin advance of the close of the pay period and periodically thereafter, asspecified on the authorization so long as such authorization is in effect. TheUnion shall provide the forms for all dues and initiation fees.

 

                E.             The Company agrees to deduct fromeach worker’s pay, a voluntary assessment of one dollar ($1.00) per week for amaximum of 26 weeks each calendar year according to the following conditions:

 

 

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1.             The Company and the Union agree that such assessmentsshall be for the benefit of duly elected ranch committee members foradministration of this Contract and Union training programs.

 

2.             The Union shall provide to the Company individualauthorization forms, signed by each worker authorizing such deductions. Theseforms shall be photocopies or exact replicas of the “Authorization forVoluntary Assessments” form in Appendix “C”.

 

3.             New, signed authorization forms shall be provided to theCompany for each calendar year.

 

4.             The Company shall make such deductions from the worker’spay in the payroll period after the period in which a form is submitted orlater as specified on the signed authorization forms.

 

                F.             Withheld deductions and assessmentsare to be sent to the Union within three (3) days after the payroll checks aredistributed to the workers. Dues reports shall be provided by the Company tothe Union in accordance with procedures to be agreed upon by the parties.

 

                G.            The Union shall indemnify and holdthe Company harmless from and against any and all claims, demands, suits orother forms of liability that may arise out of or by reason of action taken bythe Company for the purpose of compliance with any of the provisions of thisArticle.

 

                H.            In the event that the Company files inbankruptcy proceedings it shall promptly notify the Union. If such proceedingsoccur, any Union dues withheld from employees’ pay checks shall be forwarded tothe Union as provided in Paragraph F.

 

 

 

ARTICLE 3

 

HIRING

 

                A.            The Company shall operate, maintainand staff three or more facilities for the purpose of hiring new or additionalworkers. The Company will inform the Union of any change in the locations ofthe hiring facilities. Company headquarters at Hobson Avenue and Highway 101 inGreenfield, the Sage Ranch headquarters on Airline Highway in Paicines and theVineyard office located on Jolon Rd. in Bradley will be the locations of theCompany’s hiring facilities.

 

                B.            Whenever, at the beginning of anyoperating season, in any area of operation of the Company, the Companyanticipates the need for new or additional workers to perform any work coveredby this Agreement, the Company may, at least seventy-two (72) hours prior tothe date of anticipated need for such workers, notify the

 

 

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Union, in writing, stating the number of workers needed, the type ofwork to be performed, the date the workers are needed, and estimated durationthereof. The Company shall notify the Union promptly of any changes in estimatedstarting date.

 

                C.            Hiring shall not be done in anunlawfully discriminatory manner, but the Company may hire on the basis of pastexperience, competence, productivity, positive verification of previousemployment and other legitimate factors. The Company will determine jobqualifications.

 

                D.            When the Company hires a new worker,it will make available to the Union in writing after fifteen (15) work days,the name, social security number, hire date, job classification, and address ofthe new worker hired.

 

                E.             The parties understand and acceptthat the Company has three separate geographical areas of operations, one basedin the Greenfield area of Monterey County (“the Greenfield Operation”), theother based in the Paicines area of San Benito County (“the PaicinesOperation”) and the third based in the Bradley area of Monterey County (“theBradley Operation”). Workers hired for employment in any of these three areasof operations shall work solely in that respective area, rather than betransferred back and forth between the three areas, except in emergencies asdetermined by the Company and during the early stages of the harvest when theCompany may assign equipment operators to work in any of these areas in orderto prepare for operations.

 

                F.             The Company will use reasonableefforts to maintain a labor force of approximately 240 workers. The size of thelabor force may increase or decrease due to changes in the Company’s vineyardacres, seasonal demands or farming practices.

 

 

 

ARTICLE 4

 

SENIORITY

 

                A.            Seniority is defined as total lengthof service with the Company from date of hire in the geographical area ofoperation where the worker is hired (the Greenfield Operation, the PaicinesOperation or the Bradley Operation), unless there is a break in service.Classification seniority is defined as a worker’s total length of servicewithin a job classification, which has been designated as a separateclassification for purposes of acquiring and losing seniority beginning withhis/her date of entry or reentry into the classification. The foregoing issubject to the geographical area of operation where the worker is hired. Morespecifically, classification seniority is defined as a worker’s total length ofservice within a job classification in the Greenfield Operation, the PaicinesOperation or the Bradley Operation. A break in service terminates seniority.Layoffs are not considered a break in service. All workers on the payroll onthe effective date of this Agreement shall have seniority dates based on theiroriginal dates of hire unless seniority has been broken in accordance withArticle 4, Paragraph B of this Agreement. If seniority is or has been broken,then the worker’s new seniority shall be based on the

 

 

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worker’s most recent date of hire. After a worker has worked for theCompany at least twenty–five (25) work days within the preceding 120days, he/she shall acquire seniority. The days prior to acquiring seniorityshall constitute a probationary period, during which period a worker may beterminated; such termination will not be subject to the grievance andarbitration provision or any other legal procedure brought by the Union. Theworker shall be entitled to all benefits of the Agreement during theprobationary period, except as modified in this Agreement.

 

                B.            Seniority shall be lost for thefollowing reasons:

 

1.             Voluntary quitting;

 

2.             Discharge for just cause;

 

3.             When recalled following a layoff, failure to report backto work within four (4) calendar days after telephone notice to the worker or,if telephone contact is not made within five (5) calendar days from the mailingof a notice to the worker, unless reasons satisfactory to the Company aregiven. Employment elsewhere is not a satisfactory reason.

 

4.             Failure to report to work at the termination of a leaveof absence or vacation without an approved extension or other reasonssatisfactory to the Company. Securing other employment during a leave ofabsence is not a satisfactory reason.

 

5.             When a worker leaves the bargaining unit to accept apermanent supervisory position or other nonbargaining unit position with theCompany.

 

The Company will provide to the Union and the Workers Board on aquarterly basis, a list of workers by name, social security, seniority date,and job classification, whose seniority was broken during the prior quarter,pursuant to this Article.

 

                C.            On April 15, August 15 and November15, the Company shall provide the Union with up-to-date seniority lists, onefor the Greenfield Operation, one for the Paicines Operation and the other forthe Bradley Operation showing the name of each worker, his/her seniority date,social security number, and job classification. Where more than one worker hasthe same original date of hire, the worker with the highest last four digits inhis/her social security number shall have the higher seniority. The Companyshall also post the same seniority lists in a conspicuous place for examinationby the workers and the Union. The Union may review the accuracy of theseniority lists and present to the Company any error it may find on such lists.

 

                D.            If a question arises concerning theaccuracy of the seniority lists, the Union and the Company have up to two (2)weeks after the posting is complete to

 

 

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resolve the dispute, provided, however, that a worker not on theCompany’s payroll during such two (2) week period shall have up to five (5)work days within which to file a written grievance on the accuracy of theseniority lists after he/she returns to the Company’s payroll, or if a workeris not recalled, such worker shall have the right to file a grievance on theaccuracy of the lists within three (3) days of the discovery thereof,

 

                E.             It is understood that the Companyand the Union may agree, in writing, to make deviations from these seniorityprovisions regarding the application of seniority.

 

                F.             There shall be three separateseniority lists, one maintained for the Greenfield Operation, anothermaintained for the Paicines Operation and the other for the Bradley Operation.Each seniority list shall be organized by classification.

 

 

 

ARTICLE 5

 

LAYOFF AND RECALL

 

                A.            Whenever there is a layoff in anyjob classification, the Company shall retain the most effective workers basedon their qualifications which include: skills, efforts, productivity,experience, work history and seniority. Company approved leaves and excusedabsences will not adversely affect a worker’s work history. The Company shalllayoff first those workers who are least effective in accordance with the abovequalifications. In case of a dispute, the Company has the burden of provingthat the workers retained are more able to do an effective job. If workers areequal in this respect, the layoff shall be by seniority order within theclassification in the geographical area of operation where the worker isworking, with the worker with the lowest seniority laid off first. Morespecifically, classification seniority shall be followed on a geographicalbasis, with no bumping of workers between the Greenfield Operation, the BradleyOperation and the Paicines Operation. In making determinations for the purposesof this Article, there shall be no favoritism or unlawful discrimination by theCompany.

 

                B.            The Company will notify the Uniontwenty-four (24) hours in advance of any layoff, or as soon as possible priorto any layoff.

 

                C.            The Company, when anticipating therecall of seniority workers, shall telephone the workers not less than seventy-two(72) hours prior to the estimated starting day of work. If contact with theworker is not made by telephone, a written notice shall be mailed by FirstClass mail to the worker at his/her last known address. The names and addressesof those workers who are not contacted by telephone will be provided to theUnion, upon the Union’s written request. The most effective workers accordingto the qualifications listed in Paragraph A shall be recalled first. Only thoseworkers who have acquired classification seniority in a particular seasonaloperation (i.e., pruning/tying season; suckering/training season; and harvestseason) are entitled to be recalled for the same seasonal operation. If aworker does not work during the

 

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same seasonal operation in the following year after being recalled,he/she shall lose his/her seniority except where a Company approved leave ofabsence has been in effect. The Company shall request and the worker shallsupply at the time of layoff, if a change of address has occurred, the exactaddress where he/she wishes to receive a written notice of recall, and,thereafter, the worker shall be responsible for notifying the Company inwriting of any such change of address.

 

1.             The Company shall send a postcard or letter to theaddress supplied by each worker on layoff within the classification, advisinghim/her of the estimated date on which his/her classification will begin work.The postcard or letter shall advise the worker that the exact date on whichwork will begin can be obtained by phoning the Company office at (831)385-3924. The postcard or letter shall further advise the worker that if he/sheis unable to report to work on the date specified, he/she shall inform theCompany at 1972 Hobson Avenue, Greenfield, California 93927, in writing andthat his/her failure to report may result in his/her loss of seniority andtermination.

 

2.             Upon the Union’s written request, the Company shall makeavailable to the Union the names of all workers to whom recall notices weresent.

 

3.             The Company shall notify the Union of the exact startingdate forty-eight (48) hours in advance, or in the case of the harvest, as soonas possible, but no less than twenty-four (24) hours, of the exact date onwhich work is scheduled to begin.

 

4.             The Company shall make available to the Union, at theUnion’s request, any notices of recall that have been returned with UnitedStates Postal Service notice of nondelivery.

 

5.             During the operating season, when a layoff occurs withina classification of work that is fifteen (15) days or less, and the worker hasbeen given a specific report–back date, no recall procedures shall berequired.

 

D.            Whenever there is a recall and fewer than the expectednumber of employees return to work, the Company may call additional workerstwenty-four (24) hours prior to the estimated starting day of work.

 

E.            In cases of crews performing general labor, layoffs maybe by entire crew without regard to individual seniority. Such provision willnot be used for more than four (4) work days.

 

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F.             Incases where general labor crews will be transferred from one job to another,such transfers may be made by entire crew without regard to individualseniority. Such provision will not be used for more than five (5) work days.

 

 

 

ARTICLE 6

 

PROMOTION,DEMOTION AND TRANSFER

 

                A.            When the Company decides topermanently fill a job vacancy, or when it creates a new job, the job will beposted. Each unit job opening description posted shall include the jobclassification title, pay range, working title, and, if available, a brief jobdescription, anticipated shifts, required licenses and other pertinent data.

 

                B.            Such posting shall remain on thebulletin board for three (3) consecutive work days. All applications must bereceived within the posting period in order to be eligible. The posting periodshall be extended for another three (3) consecutive workdays if the Companyreceives no qualified applications during the initial posting.

 

                C.            Workers shall not be limited ontheir rights to bid for posted job vacancies in a job class higher than theirown. A worker who will be absent during the bidding period may submit a bid inwriting prior to departing.

 

                D.            The filling of vacancies, new jobs,and promotions within the bargaining unit and transfer to lower paying jobsshall be on the basis of the worker’s qualifications as they apply specificallyto the job in question, as well as the workers past performance. Those workerswho are the most effective with regard to the above qualifications shall bepromoted first. If workers are equal in such qualifications a promotion orvacancy shall be filled by seniority order within the geographical area of theoperation where the worker is working.

 

In making determinations for the purposes of this article, there willbe no favoritism or unlawful discrimination by the Company.

 

                E.             A bargaining unit worker has theright to refuse a promotion to a supervisor or management position.

 

                F.             The Company shall have the right tofill temporary vacancies, such as during the posting period or those created bya worker’s short–term illness, injury or other temporary absence notexceeding ten (10) days, without regard to the posting procedures.

 

 

 

ARTICLE 7

 

 

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GRIEVANCEAND ARBITRATION

 

                A.            The parties agree that all disputeswhich arise during the duration of this contract concerning the application andinterpretation of any specific and express provision of this Agreement shall besubject to the grievance and arbitration procedure. The parties further agreethat the grievance and arbitration procedure of this Agreement shall be theexclusive remedy with respect to any disputes arising under this Agreement andno other remedies shall be utilized by any person with respect to any disputeinvolving this Agreement.

 

                B.            Grievances shall be resolved in thefollowing manner:

 

                Step One:Any grievance arising under this Agreement shall be immediately taken upbetween the Company supervisor involved and the employee or the Union steward.They shall use their best efforts to resolve the grievance. In the event thegrievance is not immediately satisfactorily resolved, the aggrieved party may chooseto proceed to Step Two.

 

                Step Two:Any grievance not resolved in Step One, shall be reduced to writing settingforth the nature of the grievance. A grievance regarding discharge must be inwriting and sent to the Company by certified mail, fax (followed by certifiedmail hard copy sent same day), or hand delivery within five (5) days (excludingSundays and holidays) of the occurrence of the discharge or discovery thereof.All other grievances must be in writing and sent to the Company by certified mailor hand delivered within ten (10) calendar days of the occurrence of the actionthat predicated such grievance or discovery thereof. Grievances which have gonethrough Step One and have been submitted in writing according to the above,shall be discussed in a meeting between the Union Representative and theCompany representative delegated to resolve such matters not later than ten(10) calendar days from the filing of the grievance, unless both parties agreeto meet after the ten (10) day period.

 

The failure of the grieving party to file a grievance within the timelimits specified in this paragraph shall wave the grievance.

 

Valid written grievances shall include the following information:

 

1 .            Section(s) of contract alleged tohave been violated.

2.             Action(s) claimed to have violated contract.

3.             Remedies sought.

4.             Name(s) and signature(s) of person(s) in the grievance.(If more than ten (10) workers are involved in the grievance then thesignatures of a ranch committee member and a union 

 

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representative shall be sufficient. )

 

                5.             Dateof alleged violation.

 

If the grievance is not satisfactorily resolved in the Step Twomeeting, the party receiving the grievance shall give a written response to theother regarding its position including reasons for denial within ten (10) workdays from the close of the Step Two meeting. If the party receiving thegrievance fails to respond within said ten (10) work days such party shall beconsidered to have withdrawn its objection to the grievance and the grievanceshall be granted in the grieving party’s favor. A Union representative mayfully participate in the grievance meeting.

 

                Step 3: Ifthe grieving party is not satisfied with the written response, it may requestin writing that the matter be referred to arbitration. This request shall bemade not more than thirty (30) calendar days from the receipt of such writtenresponse. The request for arbitration must be sent to the Company by certifiedmail, fax (followed by certified mail hard copy sent same day), or handdelivery. If the parties are unable to agree upon an arbitrator within fifteen(15) days of the request for arbitration, they shall select an arbitrator foreach case from a list of nine (9) persons submitted to the parties by theCalifornia State Mediation and Conciliation Service (CSMCS). Each party shallalternatively strike one (1) name from said list (the first strike beingdetermined by a coin toss) and the last name remaining shall be the arbitrator.If said individual is unable or unwilling to serve, the parties shall request anew list of nine (9) names from the CSMCS and the process shall be repeated.Either party has the right to reject the first list sent by the CSMCS.

 

                C.            The arbitrator shall consider anddecide the grievance referred to him/her and his/her decision shall be finaland binding on the Company, the Union, and the workers. The arbitrator’sdecision shall be in writing, signed and delivered to the respective parties.The arbitrator shall have no authority to modify, amend, change, alter, orwaive any provision of the Agreement. Within this limitation, he/she shall havethe authority in a discipline case to award back pay for any loss of earningsfrom the Company and the right to revoke the discipline, if it is found thatthe discipline was rendered without just cause. The arbitrator shall have noauthority to impose compensatory damages, punitive damages, or attorney’s fees.

 

                D.            Unless otherwise mutually agreed to,all testimony taken at arbitration hearings shall be under oath, reported andtranscribed. The arbitrator’s and reporter’s fees and expenses., and the cost,if any, of a hearing room shall be paid by the losing party. All other expensesincident to the arbitration shall be borne by the party incurring them. Thearbitrator shall allow briefs if either party so requests.

 

                E.             Step 3 grievances shall bearbitrated in the order of their filing date. If Step 3 grievance is notarbitrated within one year of its filing date the grievance shall be dismissed.

 

 

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ARTICLE 8

 

STRIKES AND LOCKOUTS

 

A.           There shall be no strikes, slowdowns, or interruptions ofwork by any of the workers or the Union during the term of the Agreement. Thereshall be no picketing, boycotts, or other adverse economic action of any kindagainst the Company or its products, and there shall be no lockout against theworkers during the term of this Agreement.

 

B.            If any said events occur, the officers and representativesof the Union and/or Company as the case may be, shall do everything withintheir power to end or avert such activity.

 

C.            Workers engaging in any strikes, slowdowns, boycotts orother curtailment of production in violation of this Agreement may be subjectto discipline, including discharge. In the event of an arbitration overdisciplinary action taken by the Company against a worker for violation of thisArticle, the arbitrator’s authority shall be limited to determining whether theworker in fact violated any provision of the Article. If it is found thathe/she did, the discipline shall stand.

 

 

 

ARTICLE 9

 

DISCIPLINE AND DISCHARGE

 

A.           The Company shall have the right to discipline anddischarge workers for just cause. The parties agree that working under theinfluence of alcohol or illegal drugs, having the same in their possession onCompany time or property, negotiating a transaction pertaining to illegal drugsconstitute just cause and if any of the foregoing is established, the Company hasthe right to terminate. Additional basis for termination may be reviewed inindividual discipline cases which proceed to arbitration.

 

The Company shall have the right to require a worker to submit to adrug and/or alcohol test if reasonable suspicion exists that the worker hasconsumed or has in his/her possession alcohol or drugs or is under theinfluence of either. If the worker refuses to submit to the test, such refusalshall constitute insubordination and be grounds for termination. If the workeradmits to the consumption or the possession of drugs or alcohol or being underthe influence of either, or the Company believes it has sufficient evidence ofthe foregoing, the Company shall not be required to have the worker tested Thefirst twenty-five (25) work days of employment (within a 120 day period) for anew non–seniority employee shall be considered as a probationary period.The Company

 

 

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may discharge such new employee during this twenty-five (25) work dayperiod without being subject to the grievance procedures or Union intervention.Unless immediate action is necessary, the Company shall, upon the worker’srequest, notify the Union prior to any investigatory interview of a workerwhich might reasonably result in disciplinary action, and upon request of theworker, the Union shall have the right to be present during these interviews.Provided, however, if a situation occurs in a remote area, wherein the Companydeems it necessary to take action and no steward or Union representative isavailable, the Company may take action.

 

                B.            No worker shall be summarilydischarged. In all cases in which the Company concludes that a worker’s conductmay justify discharge, he/she shall be suspended initially for not more thanfive (5) working days. Upon the worker’s request, during this suspension, theCompany will meet with the worker. Furthermore, if the worker requests thepresence of a Union representative during the review of the facts of the case,such shall be permissible. This suspension period may be extended for three (3)days at the request of either party to assure a complete investigation of thefacts which initiated the suspension. At the end of the suspension period, theCompany shall notify the worker and the Union of its final action.

 

                C.            The Union and the worker(s) involvedshall be furnished with any discharge or suspension notices within forty–eight(48) hours, exclusive of Saturday, Sunday, or holidays, after the suspension ordischarge occurs.

 

                D.            The worker may acknowledge, bysignature, if he/she so desires, in receiving a written warning, and suchacknowledgment is in no way an admission of guilt.

 

                E.             The Company and the Union agreethat the Company’s Rules of Conduct were developed solely by the Company. TheRules of Conduct are listed in Appendix “D”.

 

                F.             The Union acknowledges and acceptsthat the Company takes the position that violation of any of the Rules ofConduct constitutes just cause for the discipline imposed for the violation.The Company acknowledges and accepts that the Union may take the positionduring a grievance proceeding or in arbitration that the discipline imposed forviolation of the Rules of Conduct does not constitute just cause for thediscipline imposed. It shall then be for the arbitrator to decide whether justcause has been established, subject to the limitation set forth in Paragraph Aof this Article.

 

 

 

ARTICLE 10

 

LEAVES OF ABSENCE

 

 

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A.            Aworker shall be granted a leave of absence without pay upon request for validpersonal reasons, as determined by the Company. Applications for leaves ofabsence without pay and any extension thereof, shall be made to the Company atleast two (2) days, excluding weekends and holidays, in advance of theeffective date of the leave of absence, except for emergency requests.Applications for leaves of absence which will be longer than two (2) continualdays shall be submitted to the Company at least two (2) weeks in advance of theeffective date of the leave of absence, except for emergency requests. Suchleaves shall not constitute a breach of the worker’s seniority. Leaves ofabsence are not valid unless they are approved by the Company in writing beforethe effective date of the leave of absence.

 

Occasionally, individual employees require short leaves (two - threehours) taken at the end of the work day. Such leaves are permissible if theemployee has given his/her immediate supervisor one (1) work day notice and hasreceived a written leave of absence approved by the Company. If a supervisor isunavailable during the work day the employee shall telephone the office andleave a voice message at (831) 385-3924 or (831) 385-4801 with their first andlast name and the reason for the leave.

 

In case of an emergency leave where the employee is unable to speakwith a Company representative, the employee shall leave a voice message at(831) 385-3924 or (831) 385-4801 with their first and last name and the reasonfor the emergency leave. In addition, the employee shall call back duringnormal business hours to speak with a Company representative as soon aspossible, but in no event later than three work days from the start of theemergency leave. The employee shall inform the Company of the nature andduration of the emergency. An emergency leave is not valid unless approved bythe Company, within three work days from the start of the emergency leave. TheCompany shall apply reasonable standards when granting emergency leaves.

 

                B.            Unless excused, a worker who doesnot return to work on the day following the expiration of his/her leave ofabsence will be considered as having resigned voluntarily and will forfeit allhis/her seniority rights.

 

                C.            Workers on leaves of absence whodesire to return to work before their leave expires, shall notify the Companythree (3) days prior to their intended date of return to work. The Company isnot required to return the worker to his/her job prior to the expiration of theearlier agreed upon expiration date.

 

                D.            At the written request of the Union,a leave of absence shall be granted to no more than two (2) workers selected bythe Union who are required to perform functions on behalf of the Union,necessitating a leave of absence. The leave of absence may be granted for aperiod of one (1) month, renewable for one additional month upon properapplication. A leave of absence without pay shall be granted for temporaryleave not to exceed three (3) consecutive work days at one time, to conductUnion business, provided that notice is given by the Union to the Company atleast two (2) days prior to the day on which such leave commences.

 

 

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E.            A disability leave shall be for the purpose ofrecuperating from an illness, injury, disability or pregnancy leave. Thefollowing shall apply to disability leaves of absence:

 

1 .            The worker must provide writtenverification from a medical doctor that he/she cannot work due to the,disability. The Company may waive this requirement if the disability does notexceed three (3) days.

 

2.             A worker shall be granted a leave of absence for aperiod of up to 4 months while disabled due to non job–related illness.This provision shall also apply to female employees who are disabled due topregnancy including prenatal and postnatal disability.

 

3.             A leave of absence for a job–related disabilitywill be authorized for the duration of the disability or until the workerindicates a desire to be terminated, accepts employment with another company orrefuses to return to work after having been released for full or partial work.

 

4.             Workers on an approved disability leave of absence orwork related injury in excess of ten (10) days must update the Company at theend of the first calendar month and each month thereafter concerning theirhealth status, anticipated date of return to work and continued intent toreturn to work. If a worker does not comply with this reporting requirement,the Company may terminate the worker.

 

5.             All jobs in the Company require varying amounts ofphysical labor. The Company will attempt to adjust a disabled worker’s workassignment to accommodate the disability. New assignments will depend on theavailability of vacancies in suitable positions and upon the approval of theworker’s medical doctor. If a suitable position is not available, the workermay not return to work until a written release is approved by the worker’smedical doctor.

 

6.             The Company requires all workers who plan to take aleave on account of disability (e.g., due to corrective surgery or pregnancy)to give the Company at least two (2) months notice of the approximate date theleave will commence and the estimated duration of the leave.

 

7.             A leave of absence without pay shall be granted to workersby the Company upon workers applying to and being confirmed by the

 

 

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                Company for jury duty or witness duty whensubpoenaed.

 

8.             The Company agrees to be bound contractually to anyapplicable Family and Medical Leave Act (FMLA) laws. If the same are notapplicable as a matter of law, this paragraph is of no effect. Nothing in thisAgreement is intended to abrogate rights under the FMLA laws.

 

                F.             Workers shall be granted an unpaidleave of absence (LOA) when enrolled in any one of the following courses:

 

1 .            Trainingcourses that are relevant to the work performed in the vineyards.

 

2.             ESL(Englishas a second language) and citizenship classes.

 

3.             ClassA drivers license.

 

LOA’s shall be limited to a maximum of two (2) work hours for eachattendance twice a week for the duration of the course. At least fifteen (15)days advance notice is required and such LOA’s shall be limited to a maximum offive (5) percent of workers hired by the Company. Documentation of the courseand attendance is required.

 

ARTICLE 11

 

WORKING CONDITIONSAND SAFETY

 

                A.            The Company will comply with allapplicable laws relating to the health and safety of farm workers.

 

                B.            In the interest of each workerspersonal safety, the Company will publish safety rules covering the overalloperations.

 

The use of such chemicals injurious to farm workers must be such so asnot to cause injury to workers. Therefore, the Company shall maintain in itsarea office(s) and shall make available to its workers, the followinginformation, in English and Spanish and shall make such information availableto the Union. The Company shall have seventytwo (72) hours to make suchinformation available to the requesting party following written request.

 

1.             Locationof fields treated with an agricultural chemical.

 

2.             Nameof material used by brand name, formulation, chemical name, and registrationnumber.

 

3.             Dateand time material was applied.

 

 

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4.             Amountof material applied.

 

5.             Methodof application.

 

6.             Applicator’sname and address, if any.

 

7.             Re-entrydate in accordance with the chemical label requirements.

 

When an agricultural chemical is to be applied, the Company shalladvise all workers in the immediate area prior to the application. Re–entryinto treated fields shall be in accordance with label requirements. Workersshall not re-enter a field during the prohibited period, nor shall the workerrefuse to re-enter thereafter. Nothing in this paragraph shall infringe uponthe right of a worker under the paragraph below.

 

Equipment and chemicals for fumigation and spraying shall be stoppedoutside the area where employees are working, or where workers take rests orlunch. Fumigation and spraying shall not be performed in close proximity to thearea in which workers are present.

                C.            Protective equipment and otherdevices necessary to properly protect workers from injury and sickness shall beprovided by the Company according to state and federal laws. Such protectiveequipment shall be provided by the Company without cost, except that theCompany may assess a reasonable charge to cover loss or willful destructionthereof by the worker. When the Company introduces new personal protectiveapparel) or extends the use of protective apparel to new areas or issues, ornew rules relating to the use of protective apparel, the Union will be advisedof such changes, in advance.

 

Workers shall be responsible for returning all equipment that waschecked out to them, but shall not be responsible for normal wear and tear.Workers shall be charged actual cost for excessive breakage beyond normal wearand tear and for equipment that is not returned. Receipts for returnedequipment shall be given to the worker by the Company. The Company and theUnion have agreed that the following tools, equipment and protective garmentsare to be provided: irrigation boots for irrigators and those temporarilyassigned to irrigation work; pruning shears; budding knives; coveralls for tractordrivers; breathing and protective eye wear for tractor drivers when spraying ordusting; protective rubberized coveralls, gloves, masks and goggles foremployees engaged in hand spraying; hard hats for driving stakes hydraulically;gloves for handling stakes and wires in the installation and repair andmaintenance of trellises, stakes, wire and posts. Supervisors will have millbastard files available for use by the crew leader or the worker as appropriatefor sharpening shears when needed; no Company shears will be sharpened exceptwith Company files.

 

                D.            All Company vehicles and equipmentused by and around workers shall be maintained and operated in safe conditionsat all times.

 

                E.             A worker may refuse to perform workthe worker legitimately believes to be unsafe or hazardous to his/her health.

 

 

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                F.             In cases involving occupationinjuries, illnesses, or disease, the Company will provide to the Union, uponreceipt of a written request, a copy of Occupational Safety and HealthAdministration form OSHA no. 101 entitled “Supplementary Record of OccupationalInjuries and Illnesses,” provided the ill or injured worker involved approvesin writing the release of such information. In the event a worker dies, writtenapproval from the worker’s legal heirs is acceptable.

 

                G.            The Company shall make the necessaryprovisions for the safety and health of its workers and will maintain adequatemedical and first aid services to care for accidents and minor illnessesoccurring while at work.

 

                H.            Any worker who becomes sick orinjured during working hours will be provided with transportation to thenearest Company approved doctor provided that if an injury is of a minor natureand does not impair an employees ability to transport himself/herself, suchshall be permissible.

 

                I.              In accordance with law, thereshall be adequate toilet facilities, separate for men and women in the fieldreadily accessible to workers, that will be maintained in a clean and sanitarymanner. Doors on portable toilets shall have latches. Hand washing facilities,soap and paper towels shall be provided.

 

                J.             Each place where there is workbeing performed shall be provided with suitable, cool, potable drinking waterconvenient to workers. Water shall be provided in cool cans or equivalentcontainers. Individual paper drinking cups shall be provided.

 

Failure to adhere strictly to these safety procedures will subject aworker to disciplinary actions which may include termination.

 

 

 

ARTICLE 12

 

MANAGEMENT ANDUNION RIGHTS

 

                A.            The Company retains any and allrights and prerogatives of management it had prior to the execution of thiscontract except as specifically and expressly limited or modified by theprovisions of this contract.

 

                B.            The Company may adopt or alter anyrules which are not in direct conflict with the provisions of this Agreement.The Company will provide to the nearest Union field office a copy of any new orrevised Company rules and the Union will acknowledge receipt of the same,thereby indicating its knowledge of the rules.

 

                C.            Supervisors, interns and otherworkers not included in the bargaining unit shall not perform any work coveredby this Agreement except for instruction, training, emergencies, temporary workand/or work they have performed in the past. There shall be no more than three(3) interns working at any one time in each geographical area of operation asdefined in Paragraph E of Article 3. This paragraph shall not be used for thepurpose of avoiding the recall of laid off workers.

 

 

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D.            Crew Leaders are “workers” as defined in Paragraph A ofArticle 1 and are members of the bargaining unit. Crew Leaders are responsiblefor carrying out the instructions of Vineyard Supervisors and management andrelaying such instructions to their crews. As defined in Paragraph A of Article1, Crew Leaders do not discipline or recommend discipline for other workers;however, they are responsible for observing, reporting and quality control. Theparties understand and accept that workers on occasion may serve as CrewLeaders for a period of time and thereafter not serve as Crew Leaders. Inaccordance with past practice, such is permissible.

 

E.            In the event the Company decides to increase itsmechanization in any way that will result in the permanent displacement ofbargaining unit workers, the Company shall notify the Union in writing one (1)month before commencing such mechanical operations and shall meet with theUnion to discuss the training of displaced workers to operate and maintain thenew mechanical equipment, the placing of displaced workers in other jobs withthe Company, the training of workers for other jobs with the Company, or theplacing of such workers on a preferential rehire list. Experimentation with newequipment is not subject to the next paragraph. The Company may experiment withnew equipment applications without following the procedure in paragraph E.

 

F.            New job classifications or material changes in the operationof existing job classifications shall be established and made effective by theCompany in accordance with the following procedure.

 

1 .            The Company shall notify the Unionin writing of new job classifications or of material changes in existing jobclassifications. Such notices shall be given at least ten (10) days in advanceof the date on which the new classification or the change in an existing jobclassification is to become effective.

 

2.             The Company and the Union shall meet within five (5)days after notice is received to negotiate the wage rate.

 

3.             If the Union and the Company cannot reach an agreementon the job classification and wage rates, the matter may be submitted toarbitration as provided for in Article 8 of this Agreement, which shall decidethe dispute. The scope of such arbitration shall be the job wage rate.

 

4.             Any wage rate increase shall be retroactive to theeffective date of the new classification or of the change in the existing jobclassification.

 

G.            Time off during regular working hours, without pay, willbe provided to no more than five (5) members of the Worker’s Board to attendcollective bargaining sessions scheduled by the Company during working hours.Upon written request, the Union may post notices on the Company’s bulletinboards provided these notices do not

 

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exceed an area of 12” x 12” and do not remain in place longer than ten(10) days.

 

                H.            Vineyard Access:

 

1 .            Duly authorized and designated UnionRepresentatives will have a right of access to the Company premises covered bythis Agreement in connection with the administration of this Agreement,provided that there is no interference with presently working employees or withthe conduct of Company business.

 

2.             Before a Union Representative contacts any worker oncompany property, he or she will notify a Company agent by telephoning theGreenfield office (831–385–4801) at least one hour prior to theirarrival.

 

3.             In order to accommodate Union Representatives, who occasionallydrive over one mile on vineyard farm roads, access to Company property shall beallowed at the following time periods:

 

a.             One hour before the start of the usual work day in themorning.

 

b.             Fifteen minutes before the standard noon lunch period(11:45 A.M.), until 15 minutes after the conclusion of lunch period (12:45P.M.).

 

c.             One hour after the conclusion of the usual work day inthe afternoon.

 

d.             The Company, in its discretion, may allow additionaland/or longer time periods if requested by the Union representative.

 

                I.              The Union will advise the Companyof the names of its duly authorized and designated representatives in writing.This notice will be effective upon receipt by the Company.

 

1 .            The Union will indemnify and holdthe Company harmless from any and all liability for any injuries sustained orcaused by anyone involved in taking access under this Article 13. The Unionhereby certifies to the Company that all vehicles operated by its agents orrepresentatives during any such access, shall be covered by an automobilegeneral liability insurance policy.

 

 

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ARTICLE 13

 

LABOR CONTRACTORSAND SUBCONTRACTING OF WORK

 

A.            The parties understand and agree that the hazards ofagriculture, unpredictable weather conditions and shortages in labor are suchthat subcontracting may be necessary.

 

In the event that labor contractor workers are required to completework within the available time frame, the Company will notify the Union by faxof the approximate number of labor contractor workers the Company will utilizeand the approximate duration. At the Union’s request, the Company will meet todiscuss such labor requirements.

 

The parties agree that in the application of this article the followingwill apply:

 

1 .            In the geographical area ofoperations (as defined in Article 3, Section E) where subcontracting isnecessary, all workers hired by the Company, who are available for recall, areworking or have been offered work.

 

2.             Notwithstanding Paragraph 1 above, subcontracting ispermissible under this Agreement where the Company does not have the equipmentto do the work being subcontracted. When the Company does subcontract pursuantto the terms of this provision, any workers of the subcontractor who actuallyoperate or maintain the equipment shall not be covered by terms of thisAgreement.

 

3.             Notwithstanding Paragraph 1 above, subcontracting ispermissible under this Agreement where skills of a specialized nature arerequired.

 

4.             The provisions of Article 2 - Union Security, shall notapply to labor contractor workers.

 

5.             Article 7 - Grievance and Arbitration, and Article 9 -Discipline and Discharge, shall apply only to terminations of labor contractorworkers who have worked a probationary period of twenty-five (25) work days onCompany property. Only terminations prompted by work–related incidentsoccurring on Company property while performing Company-related work will beeligible for this provision.

 

6.             In lieu of Article 3 - Hiring, Article 4 - Seniority,Article 5 - Layoff and Recall and Article 6 - Promotion, Demotion and Transfer,labor , contractor companies hired by the Company shall hire, recall, layoffand promote labor contractor workers using systems established by

 

 

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                each labor contractor company.

 

7.             Labor contractor workers shall be excluded from allprovisions of the Agreement related to insurance (including health, vision,dental and life insurance), 401 k plan, leaves of absences (paid and unpaid),vacations, holidays and all economic provisions.

 

8.             All other provisions of the Agreement shall apply tolabor contractor workers.

 

 

 

ARTICLE 14

 

HOURS AND OVERTIME

 

                A.            Nine (9) hours per day andfifty-four (54) hours a week shall be the usual number of hours of work forpiece work and general labor, except during harvest.

 

                B.            Each worker shall be entitled to onefull day, twenty-four (24) hours off work, without pay during each payrollweek. Insofar as possible, work shall be arranged so that each worker will haveSunday off.

 

                C.            When a worker is assigned to a“shift” they will be paid overtime at the rate of time and one-half (1 1/2) fortime worked in excess of ten (10) consecutive hours. A shift is the assignedworking period of time that a worker is performing his/her job duties.

 

                D.            Time and one-half (1 1/2) shall bepaid for all work in excess of ten (10) hours in any one work day, for all workin excess of sixty (60) hours in any regularly scheduled work week and time andone-half (1 1/2) for work performed on Sunday. In the case of a Monday “shift”which begins Sunday evening at 8:00 P.M. or later, time and one half (1 1/2)will be paid for the Sunday hours worked and after ten (10) consecutive hourshave been worked. Overtime earnings while working by piece rate shall equal atleast 1.5 times the piece rate minimum base wage.

 

                E.             A night-time premium of fifty cents($.50) per hour will be paid for hours worked between 8:00 P.M. and 6:00 A.M.Any shift that was begun at 8:00 P.M. will be considered a shift for theupcoming day, e.g. work starting at 8:00 P.M. Sunday will be attributed to theMonday shift. The night–time premium will only apply to a work shiftwhich begins before 12:00 A.M. (midnight). The night–time premium shallnot be paid for Sunday hours or overtime.

 

                F.             A worker shall receive the rate ofhis/her classification for all time worked, including time, if any, worked in aclassification with a lesser rate of pay. When a worker performs work in ahigher rated job, he/she shall be paid at the highest rate for

all time worked on the highest rated job.

 

                G.            If more than five (5) consecutivedays of overtime work are anticipated,

 

 

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the work shall be offered initially on the basis of highest senioritywithin the classification required to work the overtime. If there are novolunteers for the overtime work, the Company has the right to assign the workto anyone. The Company has the right to finish fields or the harvest orderswithout searching for seniority workers.

 

H.            Meal time breaks shall be one-half (1/2) hour and notcompensated for nor counted as hours worked under the provisions of thisAgreement. The Company shall not use the meal time breaks for the purpose ofmoving the workers to another job-site, or any other related work activity.

 

I.             Workers shall have paid rest periods of fifteen (15)minutes each, which insofar as practical, shall be in the middle of eachcontinuous four (4) hour work period or major fraction thereof.

 

J.             Aworker paid on an hourly basis who is required to report for work and doesreport and is furnished no work or less than four (4) hours of work for reasonsother than an Act of God or other cause beyond the control of the Company, shallbe paid at least four (4) hours for that day at the worker’s hourly rate ofpay.

 

 

 

ARTICLE 15

 

WAGES

 

                A.            The Company shall pay the wage rates(hourly and piece rates) in accordance with Appendices A and B attached hereto.However, when the Company determines that particular piece rates areinappropriate, it may pay on an hourly basis.

 

                B.            All new hires will be designated as“General Labor Probation Employees” until they have completed twenty–five(25) work days. These new employees will receive training for job skills,policies and safety. The Company will conduct “tailgate” meetings and suchother training sessions as are necessary for the explanation of Companypolicies, Senate Bill 198 safety compliance issues, the proper use ofmachinery, tools and safety equipment and other important information.

 

                C.            After completion of the probationperiod, new employees will be classified as “General Labor Trainees” until theyhave completed 1,200 total hours of work from their original hire date. Duringthe training period, employees will be paid the General Labor Trainee rate fromAppendix “A” for hourly work. Employee skills and productivity will beevaluated during the training period. If, in the Company’s sole discretion, aworker’s performance has reached an appropriate level, such worker may bepromoted to the General Labor wage rate from Appendix “A” prior to thecompletion of 1,200 hours. All General Labor Trainees not already promoted,shall be promoted to the General Labor wage rate after completing 1,200 hours.

 

D.           An employee in a “Trainee” classification, other thanGeneral Labor

 

 

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Trainee, will be promoted to the appropriate regular classificationwhen, in the Company’s sole discretion, he/she has exhibited the necessaryqualifications in accordance with Article 6, Paragraph D. Such Traineeclassifications include Mechanic Trainee, Tractor Driver Trainee, IrrigatorTrainee and Crew Leader Trainee, as listed in Appendix “A.”

 

                E.             The trainee period for tractordriver trainees and irrigator trainees shall not exceed 100 workdays.

 

                F              The Company will meet with CrewLeader Trainees and Mechanic Trainees on or before the 100th workday to discuss their job status. Atthe trainee’s request, a Union representative may be present at the meeting.

 

                G.            A premium of fifty cents ($0.50) perhour at the employee’s current rate of pay will be paid to Machine HarvestDrivers.

 

                H.            A premium of twenty-five cents($0.25) per hour at the General Labor rate will be paid to Hand Harvest TractorDrivers for time worked before or after the piece rate work activities.

 

 

 

ARTICLE 16

 

VACATIONS AND BONUS

 

                A.            Vacation pay for the completedcalendar year will be paid to workers in January of the following year. Inorder to qualify for the first January vacation check, the worker must haveearned gross wages of at least $6,500 in each of the immediate past twocalendar years. Workers must continue to earn $6,500 in gross wages eachcalendar year in order to maintain their qualifications for vacation pay. Ifthe worker falls below the $6,500 minimum in any one calendar year, he/she thenmust requalify as if it were his/her first year of employment. The vacation payamounts are calculated as a percentage of gross wages. The percentage is basedon the number of consecutive calendar years the worker has met the minimumqualifications, as follows:

 

| **Calendar Year** |   | **Minimum  Gross** |   | **% Vacation  Pay** |   |
|-------------------|--------|--------------------|--------|---------------------|--------|
| 1                 |   | $                  | 6,500  |                | 0      |   |
| 2                 |   | $                  | 6,500  |                | 2      |   |
| 3–4          |   | $                  | 6,500  |                | 4      |   |
| 5 or more         |   | $                  | 6,500  |                | 6      |   |

 

 

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                B.            A bonus is paid to any worker whoworks 600 hours or more during the farming year from December 1st to November30th.  Workers will be paid a bonus often ($.10) cents for each hour worked. Bonuses will paid to those who qualifywith the first check in December or with the final check at lay-off.

 

 

 

ARTICLE 17

 

HOLIDAYS

 

                A.            Commencing on the effective date ofthis Agreement, the following holidays shall be paid holidays for workers whoqualify under the provisions of this Article:

 

|             |   | **Hours** |
|------------------|--------|-----------|
| NEW YEARS DAY    |   | 8         |
| GOOD FRIDAY      |   | 8         |
| MEMORIAL DAY     |   | 8         |
| JULY 4TH         |   | 8         |
| LABOR DAY        |   | 8         |
| THANKSGIVING     |   | 8         |
| CHRISTMAS        |   | 8         |
| CESAR CHAVEZ DAY |   | 8         |

 

To qualify a worker must work the scheduled work day both immediatelybefore and after each holiday. In addition, the worker must have already workedfour hundred (400) hours during the current calendar year; however, for NewYear’s Day the qualifying period shall be the prior calendar year.

 

A worker who reports for work on such workdays immediately before andafter the holiday, but who works less than the full number of scheduled hourson the day before and the day after the holiday, must provide valid writtendocumentation to the Company in support of his/her reasons why he/she onlyworked a partial day in order to be eligible to receive holiday pay. TheCompany shall apply reasonable standards in determining what to accept as validwritten documentation.

 

 

 

ARTICLE 18

 

ROBERT F. KENNEDYFARM WORKERS MEDICAL PLAN

 

The Company willcontribute to the Robert F. Kennedy Medical/Dental/Vision Plan (the

 

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“RFK Plan”) for the worker and their qualified dependents. An initialqualification period of 100 work days is required for the Company to begin contributionsto the RFK Plan. Once initially qualified, each employee must maintain aminimum of 80 work hours in a calendar month to continue to qualify for theinsurance benefits.

 

Contributions by the Company to the RFK Plan shall be as follows:

 

                For the periodJanuary 1, 2002 to August 31, 2002: $1.63 per hour worked

                For the periodSeptember 1, 2002 to August 31, 2003: $1.79 per hour worked

                For the periodSeptember 1, 2003 to August 31, 2004: $1.96 per hour worked

                For the periodSeptember 1, 2004 to August 31, 2005: $2.15 per hour worked

                For the periodSeptember 1, 2005 to December 31, 2006: $2.30 per hour worked

 

The qualified employees shall be covered by the RFK B 05A Medical Planor a plan with equivalent benefits. In addition, qualified workers shall beprovided with the VSP #2 Vision Plan and the PUD #3 Dental Plan or plans withequivalent benefits. If contributions in excess of the above rates arenecessary to maintain the benefits, employees will contribute the difference.Upon written notification from the Union, the Company will deduct suchcontributions in excess of the above rates from the employees wages and willremit the same to the RFK Medical Plan.

 

Each employee shall have the right to decline coverage under the RFKPlan. If coverage is declined the Company shall not make contributions to theRFK Plan for such employee.

 

The Union will provide, or cause to be provided, to the Company thefollowing materials by July 31 of each year of the contract: Summary AnnualReport, a copy of the summary plan description as and when filed with theDepartment of Labor, a copy of Form 5500 as filed with the Internal RevenueService. In addition, on a monthly basis, a census list of the names ofemployees and dependents of employees covered under the RFK Plan will beprovided. In addition, the Union will provide the Company with copies of allclaims experience studies prepared for the RFK Plan’s trustees by the Union,any employee of the RFK Plan or any outside consultant to the RFK Plan.

 

The Company will remit the appropriate summary reports and monies forthe RFK Plan within one calendar month following the premium month. The partiesagree that the Company’s obligation under this Article is complete upon thesubmission of appropriate summary reports and monies on a monthly basis andtherefore, the Union agrees to indemnify and hold the Company harmless from anyand all claims, lawsuits, administrative proceedings and/or other actionsbrought in any forum by anyone regarding the RFK Plan and its operation,including any damages, cost of suits and “reasonable attorneys’ fees.

 

 

 

 

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ARTICLE 19

 

SCHEIDVINEYARDS INC. 401(k) DEFINED CONTRIBUTION PLAN

 

The Company will, after execution of this Agreement, contribute fifteencents ($.15) per hour worked into a 401 (k) Defined Contribution Plan for eachworker who has qualified.

 

 

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ARTICLE 20

 

DURATION

 

This Agreement shall be in full force and effect from January 25, 2002until December 31, 2006.

 
| SCHEID VINEYARDS INC. |                    | UNITED FARM WORKERS OF AMERICA, AFL-CIO |
|-----------------------|-------------------------|-----------------------------------------|
|                  |                    |                                    |
| By:                   | /s/ Scott D. Scheid     |                                    | By: | /s/ Arturo Rodriguez |
|                  | Scott D. Scheid         |                                    |   | Arturo Rodriguez |
|                  | President               |                                    |   | President |
|                  |                    |                                    |   |   |
| By:                   | /s/ Kurt J. Gollnick    |                                    | By: | /s/ Jorge Rivera |
|                  | Kurt J. Gollnick        |                                    |   | Jorge Rivera |
|                  | Chief Operating Officer |                                    |   | Lead Negotiator |
|                  |                    |                                    |   |   |

 

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**APPENDIX“A”**

 

**SCHEDULEOF HOURLY WAGE RATES**

 
|                                    |   | **2002** |   | **2003** |   | **2004** |   | **2005** |   | **2006** |   |
|-----------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
| MECHANIC                                |   | $        | 11.20  |     | 11.25  |     | 11.40  |     | 11.60  |     | 11.80  |   |
| MECHANIC TRAINEE                        |   | $        | 10.30  |     | 10.35  |     | 10.50  |     | 10.70  |     | 10.90  |   |
| MECHANIC  ASSISTANT                     |   | $        | 9.50   |     | 9.70   |     | 9.90   |     | 10.15  |     | 10.35  |   |
| ADVANCED TRACTOR  DRIVER                |   | $        | 10.30  |     | 10.35  |     | 10.50  |     | 10.70  |     | 10.90  |   |
| INTERMEDIATE  TRACTOR DRIVER            |   | $        | 9.75   |     | 9.80   |     | 9.95   |     | 10.15  |     | 10.35  |   |
| TRACTOR DRIVER  TRAINING (TRIAL PERIOD) |   | $        | 8.75   |     | 8.80   |     | 8.95   |     | 9.15   |     | 9.35   |   |
| IRRIGATOR LEVEL  1                      |   | $        | 10.30  |     | 10.35  |     | 10.50  |     | 10.70  |     | 10.90  |   |
| IRRIGATOR LEVEL  2                      |   | $        | 9.75   |     | 9.80   |     | 9.95   |     | 10.15  |     | 10.35  |   |
| IRRIGATOR  TRAINEE (TRIAL PERIOD)       |   | $        | 8.75   |     | 8.80   |     | 8.95   |     | 9.15   |     | 9.35   |   |
| CREW LEADER                             |   | $        | 10.30  |     | 10.35  |     | 10.50  |     | 10.70  |     | 10.90  |   |
| CREW LEADER  TRAINEE (TRIAL PERIOD)     |   | $        | 8.75   |     | 8.80   |     | 8.95   |     | 9.15   |     | 9.35   |   |
| GENERAL LABOR                           |   | $        | 8.50   |     | 8.60   |     | 8.70   |     | 8.90   |     | 9.10   |   |
| GENERAL LABOR  TRAINEE                  |   | $        | 8.10   |     | 8.15   |     | 8.20   |     | 8.25   |     | 8.30   |   |
| GENERAL LABOR  PROBATION                |   | $        | 7.50   |     | 7.50   |     | 7.75   |     | 7.75   |     | 7.75   |   |

 

 

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**APPENDIX “B”**

 

**SCHEDULEOF PIECE RATES**

 

Piece rates will be determined by the Company and announced to theemployees prior to the time they enter the field and begin working. The Companyshall closely evaluate the field conditions and will consider vine vigor,spacing, training practices and timing when determining rates. There shall be apiece rate minimum wage of $6.75 per hour for calendar years of 2002 - 2003 and$7.00 per hour for calendar years 2004 - 2006.

 

If, after giving their best efforts towards the piece rate jobassignment, the worker(s) believe the rate is set too low they may follow thegrievance procedures referenced in Article 8.

 

 

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**APPENDIX “C”**

 
|   | Ranch-Code |   | Dispatch |
|--------|------------|--------|----------|
|   | o General  | Other  |
|   | Field      |
|   | Work       |
|   | Location   |
|   |

 

 

**Authorization for VoluntaryAssessment**

Autorizatión para Deduccions Voluntarios

 

**The Collective Bargaining Agreementbetween Scheid Vineyards Inc. and the United Farm Workers (effective January25, 2002 through December 31, 2006), provides in Article 2, Section F thatvoluntary assessments of one dollar ($1.00) per week for up to 26 weeks eachyear may be deducted from your pay if you authorize such deductions by signingbelow.**

El Acuerdo Colectivo entre Scheid Vineyards Inc. y la Union deCampensinos (UFW) (efectivo 25 de enero de 2002 a 31 de dicembre de 2006),proporciona en Articulo 2, Sección F que deducciones voluntarios de un dollar($1.00) por semana hasta 26 semanas cada año pueden ser restados de su pago siusted autoriza las deducciones con su firma en la linea abajo.

 

 

 

o            **Yes, please deduct $1.00 per week from my pay for 26weeks and send it to the United Farm Workers.**

                Si, por favorresta $1.00 por semana de mi pago por 26 semanas y mandelo a la Union deCampensinos (UFW).

 

o            **No, please do not deduct any assessments from my pay.**

                No, por favor noreste deducciones de me pago.

 

**                Assessments will begin in thepayroll period after the period in which this form is submitted to the ScheidVineyards Payroll Department.**

                Las deducciones empezaran en el periodo de pagodespués que esta forma sea entregada al departamento de nominas de ScheidVineyards.

 

 

 
| **Name (Please Print)** |   |   |             |   |   |
|-------------------------|--------|--------|------------------|--------|--------|
| Nombre (Por escrito)    |   |   | S.S. #           |   |
|                    |   |   |             |   |   |
|                    |   |   |             |
| **Signature** / Firma   |   |   | **Date** / Fecha |

 

 

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**APPENDIX “D”**

 

**RULES OFCONDUCT**

 

Listed below are examples that illustrate the type of conduct which isnot permitted and may result in disciplinary action or immediate termination.

 

1 .            Obtaining employment on the basis offalse or misleading information.

2.             Falsifying any time card, timekeeping record orproduction record.

3.             Fraud - by whatever means.

4.             False remarks about the company or fellow employees.

5.             Using someone else’s identification card or permittingsomeone else to use your card to enter the property.

6.             Unauthorized duplication or use of keys or any deviceused for locking or securing company premises or property.

7.             Transmission of confidential and/or employee informationto unauthorized persons.

8.             Leaving premises during working hours without writtenpermission from authorized personnel.

9.             Failure to promptly inform the office **(831 - 385-3924/831 - 385-4801)** orimmediate supervisor by directly talking to them or by telephone prior to 9:00a.m. when unable to report to work due to an emergency.

10.           Excessive tardies or absences.

11.           Possessing, using, or being under theinfluence of alcohol or drugs in work areas or during work hours.

12.           Violation of sanitation rules.

13.           Unsafe working practices thatendanger you or your fellow worker’s health and safety.

14.           Failure to report industrial injuriesto your crew leader or supervisor immediately after an injury.

15.           Violation of any Fish and Game laws.

16.           Horseplay, immoral conduct, orindecency.

17.           Using profane, abusive, or derogatorylanguage.

18.           Fighting, threatening, or disruptingthe work of others.

19.           Possession of any unauthorized typeof weapon in work areas or on company property.

20.           Sleeping on the job during workinghours.

21.           Insubordination, belligerency orfailure or refusal to perform assigned work or exercises.

22.           Slowing or interfering withproduction or advocating or encouraging other employees to do so.

23.           Performing work of a personal natureduring working hours.

24.           Abuse, misuse, or theft of companyproperty, supplies, materials and equipment or the property of another employee.

25.           Failure to obtain permission fromsupervisor before using company telephone.

26.           Charging supplies to the company forpersonal use.

27.           Smoking in unauthorized areas.

 

 

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28.           Posting notices of any kind oncompany property without prior written approval of the company.

29.           Allowing visitors in the work area oron work equipment.

30.           Gambling or any moral offense.

31.           Carelessness or negligence resultingin excessive spoilage, damage, waste, loss, or inferior work.

32.           Conviction of a felony or convictionof any crime which renders you unsuitable for your position.

33.           Solicitation of money or sale ofmerchandise on, company property.

34.           Incompetence or inefficiency in theperformance of the duties of the position.

35.           Discourteous or offensive conduct orlanguage toward other employees or supervisors.

36.           Abuse of illness leave privileges.

37.           Failing to supportor interfering with the company’s goal of being profitable, including failingto be loyal to the company, working at less than the employee’s full potential,or creating or promoting dissension among fellow employees.

38.           Three unexcused absences and/or threetardies during a 90 day period.

39.           Not being available at recall time.

40.           Failure to follow all safety rulesand use all safety equipment required.

 

Employees who violate rules of Scheid Vineyards Inc. are subject todisciplinary action. In some cases, an employee may receive a verbal or writtenwarning. Suspension and/or termination may follow if the employee continues toviolate any of the rules. Depending on the seriousness of the violation, it ispossible for the employee to be terminated immediately.

 

This is not a complete list but it does give us a general idea of thebehavior that is expected of employees by Scheid Vineyards Inc. Before youbegin work in a field, you must have read these rules. You will need to signthe attached form stating that you have read and understand the rules set forthby Scheid Vineyards Inc.

 

 

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