**Exhibit 10.1**

 

**WORKING AGREEMENTbetweenCONN-SELMER, INC.andUNITED AUTOMOBILE, AEROSPACEAND AGRICULTURAL IMPLEMENTWORKERS OF AMERICA,**

**Local No. 612****(U.A.W.)**

 

**PREAMBLE**

 

ThisAgreement entered into and concluded at Elkhart, Indiana, this 31st day of March,2003 and effective the 1st day of April, 2003 by and between Conn-Selmer, Inc.,1119 North Main Street, or its successors, hereinafter known as the Company,and the International Union, United Automobile, Aerospace and AgriculturalImplement Workers of America (U.A.W.), and its affiliated Local Union No. 612,hereinafter known as the Union.

 

**Article I**

## **DEFINITIONS**

 

Forthe purpose of this agreement, certain words and phrases, wherever they appearin this agreement, shall be deemed to mean the following:

a)              **Employees:**All persons in the employ of Conn-Selmer, Inc. for more than sixty (60) days at1119 North Main Street, and its Plant 2 at 2415 Industrial Parkway, plus otheroperations now under the jurisdiction of Local No. 612, which may be moved andwhich will still remain under the jurisdiction of Local No. 612, Elkhart,Indiana, except sales, clerical, engineering, chief inspector, and supervisoryemployees.

b)             **Seniority:**An employee’s status in relation to otheremployees based on length of service.  SeeArticle VIII.

c)              **Steward:**A representative of employees, asprovided for in Article III.

d)             **BargainingCommittee:** The Committee ofemployees created in accordance with the provisions of Article III.

e)              **CompanyExecutives:** Any executive or otherrepresentative of the Company who may be designated to represent the Company incarrying out the provisions of this agreement.

f)                **Grievance:**Any act or condition which an employee feels to be in violation of the terms ofthis agreement or unfair or improper in connection with wages, hours, andworking conditions.

g)             **ProbationaryWorker:** A person who has beenemployed less than sixty-one days.

 

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h)             **Classification:**More than one employee engaged in the same or similar work in a departmentwhere each employee in a group could do the work of any other employee in thatgroup in accordance with Company standard.

i)                 **AverageEmployee:**An employee skilled andexperienced in the type of work in which he is engaged and who showswillingness and ability to produce a reasonable volume of output of standardquality work.

j)                 **Insubordination:**An employee’s willful refusal to obey a proper order or instructions of asupervisor.

k)              **ToQuit:**To leave the employmentof the Company voluntarily; statement of an employee to his supervisor or othernotice to the Company of his intention to leave his employment, coupled withfailure to report at the beginning of working hours on the work day afternotice of intention to leave employment; any action as listed above shall beconsidered conclusive evidence of leaving the employment of the Company for thepurpose of this definition and of interpretation of this agreement.

l)                 **Trainee:**An employee who is being trained because of a bump, job elimination, or openbid.

m)           **Reprimand:**  Disciplinary procedure.  Refer to Article VII, Shop Rules andDiscipline

n)             **StraightTime Average Hourly Earnings:**Allregular earnings averaged over a period of time excluding overtime premium pay.

 

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**Article II****RECOGNITION**

**Section 1, Bargaining Agent**

TheCompany recognizes the Union as the exclusive bargaining agent for all itsemployees (exclusive of salesmen, clerical, engineering, chief inspector, andsupervisory employees) for the purpose of collective bargaining with respect torates of pay, wages, hours and other conditions of employment.

 

**Section 2, UnionMembers**

Solong as permitted by applicable laws, decisions and regulations, all employeescovered by this agreement shall as a condition of continued employment berequired to be members of the Union on the effective date of thisagreement.  Probationary employees andnew hires shall become eligible for union membership thirty (30) calendar daysafter being hired and shall become members of the Union before beingtransferred to the active seniority list at the end of the sixty (60) dayprobationary period.

 

**Section3, Dues**

TheCompany shall deduct all regular dues and initiation fees levied in accordancewith the International Union Constitution from the pay of each member who hasvoluntarily signed an authorization permitting and instructing the Company tomake such deductions.  Such deductionsshall be made from the 3rd pay of the employee each month and remitted to theFinancial Secretary of Local 612 not later than the last day of each calendarmonth.  The Union shall furnish to theCompany a schedule of the current dues and initiation fees and notify theCompany officially in writing of any change in such dues.

 

**Article III****REPRESENTATION**

 

**Section 1, Stewards & BargainingCommittee**

For the purpose ofcollective bargaining, the employees shall be represented by a BargainingCommittee of not to exceed six (6) members, two of whom shall be the Presidentand Vice President of the Union, plus any International Representatives who mayaccompany them.

 

The Company willrecognize members of the Bargaining Committee, as well as stewards asrepresentatives of the Union, for the purpose of handling safety and healthcomplaints, settling disputes and grievances. Members of the Bargaining Committee and Stewards will represent therespective plant and areas of their jurisdiction and will be permitted to leavetheir work during the working hours to perform their designated duties asprovided for in this agreement.

 

At the request of eitherparty, the President (during Company paid hours) may be called in to helpadjust any controversy that may exist between the parties.

 

Should the InternationalRepresentative feel it necessary, they reserve the right to call in theInternational Time Study.

 

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The Union will beentitled to a sufficient number of stewards so that each employee has theopportunity of being represented as provided in the Grievance Procedure of thisagreement.

 

The Union assumes theresponsibility for assigning the duties of the Bargaining Committee andstewards, but Bargaining Committee members or stewards will not bediscriminated against because they perform duties assigned to them as providedin this agreement.

 

The steward andBargaining Committee person shall notify the supervisor at the time of going onunion business, if the supervisor is available.

 

**Section 2,Notification**

TheUnion agrees that immediately upon the election of new representatives,stewards, or any change in the personnel of any of the Committees dealing withthe Management, the Management will be immediately notified of such changes inwriting.

 

**Section 3, Payment for Union Time**

Shop Stewards, Time StudyRepresentatives and no more than six (6) members of the Bargaining Committeewill be paid for time lost while handling grievances, complaints, or anynegotiations with representatives of the Company as allowed for by thisagreement.  Incentive Union representativeswill be paid 125% of their applicable maximum incentive base rate andnon-incentive representatives will be paid their applicable hourly rate.

 

Employees shall be paidtheir hourly rate or incentive base rate if applicable for time lost whendiscussing grievances or complaints with representatives of the Company duringregular working hours.

 

If Bargaining Committeemembers are requested by Management to stay beyond their shift or come into theplant before or after normal working hours, premium time will be paid for thetime spent in such meetings.

 

**Section 4, Union Bulletin Boards**

TheCompany shall provide a bulletin board for the exclusive use of the Union.

 

**Section 5, Union Activities**

TheUnion agrees that its members will not carry on any Union activities in theplant or on the premises of the Company during working hours, except asdefinitely provided for in this agreement, or as may be mutually agreedupon.  Those who are not working shallabide by this rule, as do those who are working.  Lunch hours and before and after regular work shall not beconsidered working hours.

 

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**Article IV****MANAGEMENT**

**Section 1**

TheManagement of the plant and the direction of the working force remains an exclusiveManagement function.  This right ofManagement includes, but is not limited to, such functions as the right toplan, schedule, direct and control operations; to study or introduce newproduction methods or facilities; to discontinue present jobs; to makereasonable rules and regulations covering the operations of the plant; to hire,promote, demote, assign, and transfer employees; to lay off employees becauseof lack of work; and to suspend, discharge, or otherwise discipline employeesfor proper cause.  The Company shallhave the exclusive right to determine the source or sources from whichapplicants for work shall be secured and shall be the sole judge ofrequirements and qualifications for employment.  All of the above shall be true as long as it does not conflictwith other provisions herein.

 

Supervisorsand other salaried employees not under the jurisdiction of U.A.W. Local #612will not perform bargaining unit work except for the following:

1.               Experimental,developmental, or prototype work

2.               Emergencies– An unforeseen combination of circumstances or the resulting state that callsfor immediate action.  DepartmentalSteward will be notified as these occasions arise

3.               Instructionand training of bargaining unit employees

4.               Diagnosisof equipment for operational problems

 

**Section 2, Subcontracting/Outsourcing**

It is the policy of the Company to utilize its employees in theperformance of manufacturing, maintenance, and tool and die work in the shopthat is presently and historically performed by Bargaining Unit employees.  Both parties do hereby recognize thatinstances may arise during the term of this agreement when the Company finds itnecessary to utilize outside contractors. In such instances, the Company will provide the Union sixty (60) daysadvance notice, in writing, and information prior to such utilization and agreeto meet with the Bargaining Committee and discuss the reasons for the proposedoutsourcing and any possible solutions that may otherwise economically allow usto keep these jobs in-house.  Ifsubcontracting reduces an employee’s work hours below forty (40), the Companyagrees to meet with the Union in order to attempt to resolve the issue.  If the Union is not notified of theoutsourcing or subcontracting, the Company will pay the amount of labor cost ofthe job that was done outside.

 

**Section 3, Commitments re Cooperation,Employee Empowerment and Team Concept**

*Conn-Selmer, Inc. and the U.A.W.Local Unions have recognized their respective responsibilities to developimprovements in the work environment. Both parties maintain that an adversary relationship in labor matters iscounterproductive.  It is readilyunderstandable that future success in our very competitive business depends inlarge measure upon the ability to create a work environment which enables eachperson to contribute his/her knowledge, skill, ability and experience to thehealth of the enterprise as a whole. The parties agree to continually review and revise non-productive workrules and practices that adversely affect the competitiveness of theoperations.  Neither party can condonewastefulness in any manner – be it of people, plant,*

 

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*machinery or material.  Both parties agree to work as a team in theexploration and development of innovative programs conducive to the positiveattitudes of all our employees.  TheCompany and the Union agree that teamwork, cooperation and communication arekey factors in the overall success of the operation as a whole. The Union andthe Company agree to make every effort possible to maintain a positive andproductive relationship.*

 

#### **Section 4, Safety and Health**

The Company shall continue tomake necessary provision for the safety and health of its employees during thehours of their employment.  Individualemployees shall be responsible for using proper safety devices and followingall health and safety rules and regulations. The Union shall cooperate with the Company in the use of safety devicesand observance of safety rules and regulations.

 

Employees of Conn-Selmer, Inc.under the jurisdiction of the U.A.W. will be represented by their Health andSafety Representatives from the Bargaining Committee.  They will be automatic members of the Safety Committee.  The Safety Committee will meet on a monthlybasis to discuss and review the safety condition of their plant.  In addition to the Health and SafetyRepresentatives the Safety Committee will consist of designated members ofManagement.

 

**Article V****DISCRIMINATION**

**Section 1, Discrimination/Union**

TheCompany agrees that there shall be no discrimination against any member of theUnion because of said membership.

 

**Section 2, Discrimination/Other**

Neitherthe Company nor the Union shall discriminate against any employee because ofage, sex, race, nationality, handicap, color, religion, political belief, ormarital status for the purpose of evading the spirit or letter of thisAgreement.

 

**Article VI****GRIEVANCEPROCEDURE**

 

**Section 1, Purpose and Intent**

Thepurpose of this contract is to provide a working agreement which will enablethe Company and its employees, who are represented by the Union, to performtheir daily production in an efficient, peaceful, and orderly manner withfairness to all.

 

Itis the intent of all parties to gain benefits through cooperation and good willin the fulfillment of their respective obligations as set forth in the contentsof this agreement.

 

**Section 2, Grievance Procedure**

Forthe purpose of peacefully settling all complaints and grievances, both partieswill be governed by the grievance procedure as outlined in this article.

 

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TheCompany agrees to meet with the representatives of the Union to settlegrievances or disputes at such time as may be necessary and reasonable.

 

TheBargaining Committee may write and sign a grievance on behalf of an employee orgroup of employees.  If the issue raisedis not appropriate for resolution at the first or second step, the grievancemay be referred by the Bargaining Committee directly to the third step.

 

**Section 3, Time Limits**

No complaint will be considered a grievance unlessthe incident causing the complaint is reported within ten (10) working days ofthe time it became known to the person making the complaint.

 

Timelimits will be strictly adhered to in all five steps. If the Company fails tomeet the negotiated time limit in the grievance procedure, the specificadjustment requested will be awarded to the grievant, provided such adjustmentis allowed by our working agreement and is compliant to the present contractlanguage.  Should the Union fail to meetthe limits set forth in our working agreement, the Company’s last answer willservice as settlement****tothe grievance, providing such answer is compliant to our contract language.  Extensions to the time limits may bemutually agreed to in writing.

 

**Section 4, Steps to the Grievance Procedure**

 

**Step One**

Anemployee having a grievance, or one designated employee of a group having agrievance will first take up the grievance with the steward and the supervisorwho will attempt to adjust the problem

 

If the grievance is notadjusted by the supervisor, it will be reduced to writing by the Union andsigned by the supervisor.  Thesupervisor will answer the grievance in writing within five (5) working days, excluding weekends and holidays, after receipt ofthe grievance.

 

**Step Two**

*If the supervisors answer isunsatisfactory, the grievance will be forwarded to the BargainingCommitteeperson of that area****orthe President.  He/she may then appealthe grievance to the Human Resource Representative (or alternate when the needarises) within five (5) working days. They will meet, within five (5) working days, in an attempt to settlethe grievance and the Human Resource Representative (or alternate when the needarises) will write an answer within five (5) working days, excluding Saturdays,Sundays, and holidays after the meeting.*

 

**Step Three**

If the grievance remainsunsettled, it may be forwardedby a member of the Bargaining Committee to the President who will meet with theBargaining committee within****five(5) working days to the Plant Manager (or alternate when the need arises) whowill attempt to resolve the matter with the President, Vice President and oneother committee person.  The PlantManager (or alternate when the need arises) will meet with President, VicePresident and one

 

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othercommittee person will meet on the grievance(s) within five (5) workingdays.  The Plant Manager (or alternatewhen the need arises) has to give an answer within five (5) working days,excluding Saturdays, Sundays, and holidays from the final meeting and thediscussion of the matter.

 

**Step Four**

If the grievance remainsunsettled, it may be appealed to step four by filing a written appeal withinfive (5) working days of the step three answer.  The International Representative, the Bargaining Committee andthe Director of Human Resources (or alternate when the need arises) will meetand attempt to resolve the grievance no later than thirty (30) calendar days.

 

TheDirector of Human Resources (oralternate when the need arises) will give their decision in writing withrespect to the grievance within ten (10) working days excluding Saturdays,Sundays, and holidays, from the final meeting and discussion of the matter.

 

TheUnion representatives or the Management will have the right to call as witnessany employee to testify as to the facts concerning any disputes during thehearing of a grievance or complaint.

 

**Step five, Arbitration**

Anygrievance which is not satisfactorily settled in Step Four of the GrievanceProcedure may be submitted to arbitration by the Union, by providing theCompany with a written notice of its intent to arbitrate within thirty (30)working days of the receipt of the Company’s answer in Step Four.

 

TheUnion and the Company will agree upon an arbitrator selected from a panel ofseven (7) arbitrators obtained from the Federal Mediation and ConciliationService, or any other method mutually agreed to.  The cost of such panel will be split between the parties.  Selection will be made by the Company andthe Union from the Federal Mediation and Conciliation Service panel,eliminating one name until only one name remains on the list.  The name remaining will be thearbitrator.  The right to strike thefirst name on the panel will be rotated between the Company and the Union.

 

Thearbitrator’s power will be limited to the application and interpretation of theagreement to settle the grievance before him. The arbitrator shall at all times be governed wholly by the terms ofthis agreement and will have no power to, or authority to, amend, alter, ormodify this agreement in any respect. The arbitrator’s fees for the hearing will be paid by the losing party.The Company and the Union each will pay the expenses of it’s ownrepresentatives and witness.  Shouldeither party choose not to use the first panel of arbitrators, that party thatchooses to send for a new panel will bear the total expense of said panel.  Should either party request a stenographer,said party will bear the total expense of the stenographer.  If the arbitrator renders a split decisionthe arbitrator shall make as part of his/her decision a ruling as to how thecost of his/her services and expenses shall be prorated.  It will be the duty of the arbitrator withinthirty (30) days after the oral hearing is concluded to make his/her decisionin writing and to furnish a copy thereof to each of the parties.  His/her decision will be final and bindingupon both the Union and the Company.

 

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Note:  The Union retains the right to withdraw anygrievance at any time in the grievance procedure.

 

**Section 5, Probationary Employees**

TheUnion may represent any probationary employee in the matters of wages orworking conditions only.

 

**Section 6, Lockout and Strikes**

Theparties hereto agree that at no time during the life of this agreement shallthere be any strike, walkout, slow-down, lockout or other stoppage of work inthe plants of the Company.  During theterm of the Agreement, the Company agrees that it will not lockout itsemployees.

 

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# **Article VII**

**SHOP RULES ANDDISCIPLINE**

 

Inevery business where many people work together, some specific rules andregulations are necessary to define acceptable conduct and to promote thesmooth functioning of the business as a whole.

 

Thepurpose of the following rules is to insure all employees’ safety and fairnessin their cooperative efforts.  TheCompany feels that the great majority of employees are conscientious and followacceptable work habits. Unfortunately, there are a few individuals who abusethe rules. For this reason, we have set forth acts of misconduct, which, ifcommitted, will result in appropriate disciplinary action.

 

Whenan employee is being counseled for a disciplinary problem, the steward will beinvolved at the department level and the President/Committee person or designeeat the Human Resources level.

 

# **Infractions of a Minor Nature**

1.               Loafing, neglect or failure to performassigned duties.

2.               Violation of safety rules

3.               Failure to be in assigned area or at workstation at required time

4.               Leaving the department or job prior toauthorized time

5.               Use of the telephone during working hourswithout permission

6.     Creating or contributing to unhealthful or unsanitary conditions, ordisplaying signs, obscene pictures or literature, or distributing them.

7.               Negligence resulting in inferior work, scrap,or waste. A valid Quality Variation Reports will be considered.

8.               Creating a condition hazardous to theindividual or fellow employees such as horseplay, yelling, running, shoving orthrowing articles.

9.               Failure to wear or use safety equipment asrequired by PPE standards

10.         Solicitation of employees for donations or membership in outsideorganizations, circulation of petitions or magazines in the Plant withoutspecific approval of the Human Resources Department (Union excluded)

11.         Being in an unauthorized area of the Plant or Company property

12.         Being on Company property while under the influence of alcohol, or anyother illegal or controlled substance

13.         Gambling of any type

14.         Changing a certain phase of a set operating procedure without proper authorization

15.   Posting of notices or signs or writing in any form on official bulletinboards or removal of approved notices without approval of the Human ResourcesDepartment.  Union bulletin boardsexcluded.

16.         Leaving the Plant at break or lunch period and not returning withoutpermission or notification

17.         Entering or leaving the Plant by other than the designated employeeentrances

 

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18.         Subtle forms of harassment, intimidation, or inappropriate language orbehavior.

19.         Smoking in non-designated areas

20.         Loitering, roaming about or visiting throughout the Plant

 

ANYEMPLOYEE COMMITTING ANY OF THE ABOVE OFFENSES is subject to the following:

 

**1st Offense-**Written warning in the presenceof the employees’ steward. An entry noting the date and detailed reason for thereprimand will be placed in the employees’ personnel file and a copy providedto the union.

 

**2nd Offense–**Written warning given in thepresence of the President/Committee person or designee. An entry noting thedate and detailed reason for the reprimand will be placed in the employees’personnel file and a copy provided to the union.

 

**3rd Offense–**Final Written Warning withcounseling from the Human Resources Department in the presence of thePresident/Committee person or designee. An entry noting the date and detailedreason will be placed in the employees’ personnel file and a copy provided tothe union.

 

**4th Offense–**Discharge

 

ALLWARNINGS WILL REMAIN IN EFFECT TWELVE [12] MONTHS FROM THE TIME OF INFRACTION.

 

## **Infractionsof a Major Nature**

1.               Insubordination [willful disobedience of anorder by management]

2.               Theft

3.               Bringing, having, or consuming intoxicatingbeverages or narcotics in the Plant or on the Plant property.

4.               Smoking in high fire hazard areas.

5.               Willful damage to or unauthorized removal ofproperty belonging to the Company or another employee.

6.               Walking off the job.

7.               Swiping another employees’ badge in or outresulting in pay for time not worked.

8.               Falsification of personnel records.

9.               Possession of firearms or any type of weaponon Company property.

10.   Physical violence, aggressive retaliatory actions, verbal threats,patterns of continued intentional harassment, sexual harassment, or anyviolation of discrimination laws.

11.         Flagrant violation or reckless disregard of any safety rule or policywhich places the employee or others in danger.

12.         Falsifying incentive earnings, productioncounts, or time entries.

 

Any employee committing any of the aboveoffenses is subject to discipline up to and including discharge without anyprevious steps issued.

 

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Suspensionor discharge must be for “just cause”. All discipline will be graded to fit the offense.

 

**Article VIII**

# **SENIORITY**

 

**Section 1, Plant Seniority**

Plantseniority shall be observed and determined by the most recent hiring date ofeach employee.  In cases where two ormore employees are hired the same day, seniority is established at time of hireby alphabetical order of the last name.

 

**Section 2, Probationary Employee**

Newemployees shall be regarded as probationaryfor the first sixty days of their employment.  After sixty days of continuous employment, the names of suchemployees shall be placed on the seniority list.

 

Anyprobationary worker who is laid off and recalled within ninety (90) days willretain his/her original hire date.  Ifthe sixty (60) day probationary period has not been completed, the employeeshall complete his/her probationary period. The employee will be eligible for benefits in accordance with his/herseniority date.

 

**Section 3, Bargaining Committee and StewardSeniority**

Forreduction of force only, the President, Vice President, and the BargainingCommittee shall head the seniority list in the plant and all Stewards shallhead the seniority list in their districts and shifts (unless a higher officeris involved) but all shall be returned to their original standing on theseniority list upon termination of service on said Committee and/or as ShopSteward.

 

**Section 4, Shift Preference and Seniority**

a)              Senioremployees shall have preference of the first, second, and third shifts.  No one may exercise a shift selection moreoften than every three months.  Anemployee who is exercising his shift preference and displacing another employeeshall not be moved until the first day of the work week which immediatelyfollows the end of a thirty (30) day period which began at the time theemployee exercised his shift preference. If any deviation becomes necessary, such changes will be made by mutualagreement between the Company and the Union.

 

b)             Whenan opening occurs in a job which is worked more than one shift, that openingshall be offered first for purposes of shift selection to those working the job.If there are no employees with recall to the open shift, employees on layoffwith recall to the opposite shift will be offered the job.  In such instances, refusal will not resultin loss of recall rights to the regular shift.

 

Any remaining opening will then be posted.  After the opening is filled, the successfulbidder shall not be able to exercise shift selection for a period of threemonths.

 

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c)              Thisprocedure does not pertain to split shifts (i.e. Plant 2 - Shipping) nor doesit pertain to combination jobs. Combination jobs are offered first to the employee on layoff, byseniority, by shift based on the job that the combination is being createdfrom.

 

d)             Anemployee displaced by a bump may either exercise his bumping rights or exercisehis shift selection preference.

 

Elimination of shift would automaticallyconstitute a layoff, and affected employee or employees would have bumpingrights as per agreement Article VIII, Section 7(c).  The Company shall be the sole determiner of the number of personsto work any shift.

 

e)              Anemployee bumped for preference of shift will be allowed to exercise bumpingrights to another job on the same shift with recall rights to the job and shifthe was bumped from.

 

**Section 5, Establishment and Loss ofSeniority**

Anemployee’s length of service for the purpose of establishing seniority shallaccumulate from the most recent hiring date without any time deducted onaccount of leave of absence.  Anemployee shall cease to have seniority and is no longer an employee if:

a)              Hequits.

b)             Heis discharged for cause, and the discharge is not reversed through thegrievance procedure.

c)              Heis absent for two consecutive working days without notifying the Company unlesshe has a reasonable and valid excuse for his failure to providenotification.  Notification shall, ifpossible, be given prior to any absence, and in any event, as soon as possibleafter the beginning of the absence. Such notification shall include definite and proper reason for anyabsence.  Illness shall not constitute areasonable and valid excuse within the meaning of this paragraph for an absenceof more than two consecutive weeks.  Anabsence of more than two consecutive weeks because of illness shall be subjectto the provisions of Article IX, Section 2. If an employee has failed to report his absence, a meeting will be heldwithin one (1) day following the employees return to work, to review the factssurrounding the failure to report.  ThePresident and his designee will be present.  A decision will be madeby management within 24 hours of the hearing regarding whether or not theemployee shall lose his seniority.  Anyloss of seniority of the employee will be subject to the grievance procedure.

d)             Hefails to return to work from layoff within five (5) consecutive working daysafter receipt of notice from the Company to return, subject, however, to theprovisions of Section 6 of this Article. Evidence of notice shall be conclusive when given by registered U.S.mail (return receipt requested) addressed to the employee’s residence ofrecord.

e)              Hedoes not return at the expiration of a leave of absence or does not request andreceive an extension of said leave of absence.

f)                Heis absent for more than five consecutive working days (except for illness)without obtaining a leave of absence.

g)             Heis promoted into management or out of Local 612 jurisdiction.

h)             Heis laid off for a period that is equal to his seniority.  At no time shall any employee have less than90 days seniority.  But in no eventshall he retain his seniority after sixty (60) months of continuous layoff.

 

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**Section 6, Recall of Employees**

a)              Employees on layoff shall be notifiedofficially by certified mail (return receipt requested) from Human ResourceDepartment, sent to the last home address shown on the personnel records asfurnished by the employee.  Evidence ofnotice shall be conclusive when the above procedure is fully compliedwith.  The Company may contact by othermeans for the purpose of expediting recalls.

b)             In the event a laid off employee employedelsewhere (outside of the jurisdiction of Local  612 UAW) is recalled for work of a short duration, he/she mayrefuse recall and maintain rights to his regular job.

c)              Short duration shall be defined as thirty-(30) work days or less.

d)             The Company may work overtime in a groupwhile employees are laid off from the group. Employees shall be recalled to the group when, after deducting the hoursof group’s absences in the week from the amount of the group’s weekly overtimeand then adding the hours of any employees transferred into the group duringthe week, there remains a number of hours that would provide recalled employeeswith thirty-two (32) hours of work for a reasonable length of time.  If there are no employees with recall rightsto the group, then the Company may offer unlimited amounts of weekly overtime.

e)              An employee called for work shall report atthe time specified in the notice. Failure to report for work at the time specified shall not result inloss of seniority if the reason is due to illness, accident or emergency.

f)                If the recall is to a permanent position theCompany must guarantee two- (2) weeks work or the recall does not have to beaccepted and the employee retains that same recall.  On an immediate recall the Company does not have to guarantee two(2) weeks of work.

g)             If a recall is immediate the employee mustaccept or lose all rights to the job. Employees shall have one (1) hour to lookat the list of available jobs to determine whether or not to accept the recallor exercise his/her bumping rights.  Byrefusing they must then make a bump if the recall was to their regular job orbe terminated.

 

#### **Section 7, Reduction of Work Force**

Seniorityand qualifications shall govern any reduction in the working force over five(5)****working days, or areduction in working hours below forty- (40) hours in a calendar month.

a.)           The Company shall give at least a two-day notice before layoff excludingprobationary employees.

b.)          When it becomes necessary to reduce the hours of work in a jobclassification, layoff will be as follows:

1.               Probationary

2.               Temporary

3.               Employees who have not qualified

Thereafter, the least senior employee(s) willbe reduced from such job classifications.

c.)           Employeesreduced from a job classification may exercise their seniority to displace theleast senior employee in any job classification their seniority willallow.  An employee must exercisehis/her seniority for bumping within five working days, excluding holidays, theannual physical inventory, and the annual factory shutdown, after the date oflayoff by signing an irrevocable bump form.

 

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d.)          An employee bumping into a job classification should have the skill andability to perform the work in a competent manner up to the Company’s qualityand production standard.

e.)           Employees who were qualified in the job classification within the lastthree years will be presumed to be qualified. Employees will have thirty (30) working days to qualify withouttraining.  Familiarization with theprocess will be provided.  Pay will be100% base rate.

f.)             Employees not qualified will have (SeeBumping Chart) time to qualify with training. Pay will be eighty (80) percentof base rate with no progression until the employee qualifies.

g.)          Employees displaced through the bumping process will be entitled to thesame rights to exercise their seniority as set forth above.

h.)          Qualifying under the bumping procedure will be evaluated on performing at100% of standard averaged over forty- (40) consecutive work hours for incentivepositions and normal production level for non-incentive positions.

i.)              Failure to qualify will result in theemployee being placed on layoff with bidding and recall rights to his/herregular job**.**

 

# **Bumping Chart**

Labor Grade 1 through 3****will have three (3) week to train and mustqualify in the fourth week.  Employeewill be allowed to qualify earlier at their discretion.

 

Labor Grade 4 through 6 will have six (6) weeks to train and mustqualify in the seventh week.  Employeewill be allowed to qualify earlier at their discretion.

 

Labor Grade 7 and above will have to be pre-qualified. Qualificationand ability of the employee shall be determined by Management, subject to theGrievance Procedure.  Employees willhave thirty (30) working days to qualify without training.  Employee must be at 80% efficiency withinthe third week.  Familiarization withthe process will be provided.  Employeewill be paid at 100% of base wage.

Note:  Week equates to five (5)working days.

 

j)                 **Combinations**

The parties recognize that work is not staticand that new and changing technology requires continuous changes in jobcontent.  Minor changes will beongoing.  In addition to such minorchanges, the Company reserves the right to create, discontinue, combine ormodify job classifications at anytime. Changes in job classifications will be negotiated with the Union.  The SHP language will govern any changes inmethods that directly effect the standards. Should the Union disagree with the rate established by the Company, agrievance may be filed under Article VI, if the issue is not resolved in thegrievance procedure, the Union may advance such grievance to arbitration.  The arbitrator must be someone who isexperienced in standards disputes involving recognized industrial engineeringpractices and procedures.  Thearbitrator will have the right to visit the work place and perform his/her ownstudy using any recognized industrial engineering technique including thestopwatch time study method or the same predetermined time system the Companyused to establish the standard.  (Thearbitrator will have full authority to determine which system he/she elects tocheck the standard.)  The arbitrator’sdecision will be final and binding upon both the Company and the Local Union.

 

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Employee(s) whose positions are affected by the combination jobs areeligible to exercise their bumping rights.

k)              **Medical**

An employee who has provided the Company withproper medical documentation, and who in the opinion of the Company has becomeunable to do his regular work, shall be given preference to do such work, as hemay be capable of performing.  Theemployee shall select three jobs held by junior employees.  This clause shall not be used so that anemployee may upgrade himself, earnings wise.

 

A non-incentive employee will not be able to increase their baserate.  Their previous quarterly averagewill be compared to the previous quarterly average of any job classificationsthey may bump.

 

Incentive employees shall use their previous quarters average andcompare to the previous quarters average of any job classification they maybump.

 

Any employee bumping under the medical bumping language will berequired to qualify under the same qualification time as if from layoff.

 

Any employee bumped by a medical bump or bump created from a medicalbump will have the same requirements listed under the item (f) of this Article.(See Bumping Chart)

 

An employee on leave can be bumped by a laid off employee with moreseniority regardless of whether or not the job has been filled by atemporary.  If the job has been filled bya temporary, the employee on the temporary assignment must return to the statusthey had prior to the temporary position when the temporary status ends.  However, if the temporary is filled by anemployee on layoff, that employee will have bumping rights.

 

Employee bumped while on leave will be granted bumping rights when theleave expires.

l)                 **EfficiencyDisqualification –**If aqualified employee’s efficiency falls below 100% for incentive jobs and normalproduction pace for non-incentive job for two (2) consecutive weeks, he/shewill be counseled to determine the problem. After four (4) consecutive weeks of less than 100% efficiency, the 100%wage guarantee will be suspended and the employee will be paid the amountearned.  After eight (8) consecutive weeksof less than 100% efficiency for incentive jobs and normal production pace fornon-incentive jobs, the employee will be disqualified and removed to layoffwith bidding rights only.

m)           Anyprobationary worker on a layoff extending longer than ninety (90) days shall beterminated and shall be considered a new employee in any future employment bythe Company.

n)             Whena group of jobs includes both temporary and permanent jobs, the following shallapply in the case of a bump:

1.               Theemployee on the permanent job, if bumped, must accept recall to the temporaryjob or lose all rights to the job.

2.               Theemployee displaced from the temporary job will have bumping rights if heacquired the job from layoff status; otherwise, he must return to his previousjob.

 

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3.               Anemployee on a leave can be bumped by a laid off employee with more seniorityregardless of whether or not the job has been filled by a temporary.  An employee bumped while on leave will begranted bumping rights when the leave expires.

4.               Anemployee going into a department with their bumping rights can choose which jobthey want to bump (temporary or the permanent).

o)             Alaid off employee who bumps or bids a temporary and is recalled to a permanentjob must accept the recall and go on the job or lose his right to the permanentjob.

p)             ABargaining Unit employee represented by U.A.W. Local 364 or Local 612 who islaid off may make written application for work at other Conn-Selmer Elkhartplants whose hourly employees are represented by the U.A.W.  This laid off employee shall be givenpreference for employment and will be hired before other inexperiencedapplicants are given employment.

 

The employee’s vacation benefits and pensionbenefits will be determined in accordance with the employee’s original date ofhire.

 

If an employee is recalled to the plant fromwhich he was laid off, he may accept the recall and will lose all seniority atthe plant which hired him when laid off. If he chooses not to accept the recall, he may continue working at theplant that most recently hired him but will lose all seniority at the plantthat recalled him.

 

**Section 8, Increase of Work Force**

Regular Job. When an increase in the working forceis to be effected, all employees will be called back to their regular job inline with their seniority.

1.               Thejob on which an employee is working when he acquires seniority.

2.               Thejob to which an employee bids while on an original job, or

3.               Anemployee working any job (not his original job) at the time of being laid offor bumped retains recall to all previous jobs held.  At the time of recall, he loses recall only to all jobs heldafter the point of recall.

4.               Uponrefusing recall to original job, a person may elect a new original job fromjobs previously held and in so doing, relinquishes rights to all other jobs.

5.               Ifan employee acquires displacement rights either as a result of a bump or alayoff and announces his intention to bump a job but is bumped before heactually goes on the job, he shall have no claim to this job, with thefollowing exception: If he is asked to fill in on other work temporarily or isasked to remain temporarily on the job from which he is being bumped and isbumped during this period, he will have recall rights to the job he intended tobump.  An employee who is bumped willnot acquire displacement rights until the person bumping him goes on the job.

 

**Section 9, Displaced Employee**

A seniority employee displacedon a bid job by a returning Service Man (Article IX, Section 5) or by anemployee returning from a leave of absence may exercise his seniority forbumping as provided in Article VIII, Section 7 (c).

 

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**Section 10, Temporary Emergency/Layoff**

Inthe event of a temporary emergency or a breakdown of machinery or equipment,employees directly affected may be laid off, irrespective of seniority, for theduration of such emergency or breakdown. If the breakdown occurs in a group with a combination, the combinationemployee would relinquish his machine regardless of seniority.  If there is no combination, then seniorityrules apply.  Any layoff beyond three(3) working days will be subject to review between the Company and theBargaining Committee.

 

**Section 11, Job Bidding**

*Newlycreated jobs and all job vacancies in the Bargaining Unit may be filled forfive (5) working days without reference to seniority.  During this period, such jobs shall be posted for three (3)working days.  It is the employee’sobligation to investigate the details of the job during the postingperiod.  It will be the employees rightto obtain from the Company any/all pertinent information regarding the postedjob.  When a posting is taken down, thejob belongs to the senior employee on the bid. The Company may reject a bid if the bidder is at the 3rd stepof discipline of the Attendance Policy.*

a)              Open Bids:  The applicants are expected tobe able to do the job in an average manner and up to the Company standard withtraining. The successful bidder will have up to fifteen (15) working days todecide if the transfer will be permanent or if they choose to return to theirposition prior to the bid.  In the eventan employee is so transferred and fails to fill the job at the end of specifiedqualification period the employee will be placed on layoff with no bumpingrights. Once the bid has been awarded and/or employee is in the fifteen (15)working days of being placed in the job the employee will be restricted frombeing able to bid on other positions as follows**:**

 

Labor Grade 1 through 6 – twelve (12) months

Labor Grade 7 and above – twenty-four (24) months

 

This restriction period is in effect even if the employee should electto return to their previous position prior to the bid.  Successful bidders on non-incentive jobsshall receive the applicable hourly rate of the job to which they bid inaccordance with the Wage Progression Schedule. Successful bidders on incentive jobs will receive the applicableincentive base rate in accordance with the Wage Progression (UAW Local 612Article XII, Section 2 and Article XIX). The Company shall have the right to temporarily transfer people (not toexceed 30 days) into vacancies created by bidding for the duration of the trialperiod without the posting procedure.

b)             Trainee Disqualification:  Anyemployee who is disqualified from a job shall be entitled to only one (1) morebid within a twelve (12) month period from the date of the originaldisqualification.  If an employee bidson a temporary job while on layoff or is assigned to an open job during thistwelve (12) month period after disqualification he/she will still be entitledto one (1) bid.

c)        Any current employee, effective with the date of this contract, who isgiven work in his classification which he had not done previously, will be paidthe applicable hourly rate or the incentive base rate for training for areasonable length of time.

 

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d)       Jobs which are posted for three (3) days and are not successfully filledby bid may be filled by the Company from any source within forty-five (45)calendar days from the time the posting comes down.  If not filled, it must then be reposted.

e)        Any bid may be canceled.  However,if the bid is canceled during the posting period, any signers shall havepreference if the same job is again posted within forty-five (45) calendar daysfrom the date of the original posting.

f)          The Company will not be responsible for notifying laid off employees ofopen jobs to be posted for bidding.  TheCompany will contact the successful bidder by certified mail, which will besent to their address of record.

g)       An employee given two days notice of layoff may sign a bid without losingrecall to the job he is leaving (providing it is the employees’ regular job).

h)       No bid shall be valid for more than forty-five 45-calendar days.

i)           An employee cannot bid on a job while on a leave unless he can go on thejob within five (5) days.

j)           Should any change be made on a bid once it is posted, the bid will bereposted or the original bid will remain posted for another three- (3) workingday period.

 

**Section 12, Contested Jobs**

Contestedjobs will not be posted until the Grievance Procedure has been completed.  The Company will have the right to use, fillin, or transfer during such periods.

 

**Section 13, Canceling Signature on Bids**

Anemployee going on a job through a bid thereby automatically cancels hissignature on any other bids as of the date he goes on the bid job.  If an employee has signed several bids onthe board, the employee gets their choice of which bid they want, provided thatthey have not gone on any of the other bids.

 

**Section 14, Temporary Assignments**

a)              Employees may be assigned to any work,assignment, job duty, position or work area within their job classification.

b)             Employees, by seniority and who are qualifiedto perform the work, shall be temporarily assigned on a voluntary basis to workother than in their own classification to fill vacancies (not to exceed 30days) due to absences, vacations, production needs, leaves of short durationsand the training of replacements due to promotions or adjustments.  These employees shall retain their seniorityin, and be returned to their own job classifications when the necessity forthat temporary assignment has ceased to exist. If no volunteers, the least senior qualified employee in theclassification must accept the temporary assignment.  No one will be assigned to the job of any employee while he/sheis temporarily assigned unless mutually agreed upon between the departmentsupervisor and union steward or committee person.

 

The stewards of the departments affected will be notified prior totemporary transfers or fill-ins.  Thisincludes transfers within the department. All transfers and fill-ins will be documented.  The Company will inform the steward of the reason for theassignment and expected length of duration.

 

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c)              Fill-in – Employees who are out of work on their regular jobs may be filled inon jobs that require no training and at their base.  If the fill in produces thirty-two (32) hours in two consecutiveweeks there will be a recall.

d)             Transfers – Employee may be transferred to jobs for production needs who arequalified on the job.  After deductingthe absences of the employees for the week and then adding the hours of anyemployees transferred in to the group during the week, there remains a numberof hours that would provide an employee with thirty-two (32) hours in twoconsecutive weeks a recall will be made or the job will be posted in one (1)working day.

e)              Only employees who are willing and qualifiedon the job will be asked to train.  Ifthere are no volunteers available to train the least senior qualified employeewill be required to accept the assignment. The Company may hire a qualified retiree temporarily, for trainingpurposes only.  Training will be paid at127-1⁄2 % of the employees base rate or 127-1⁄2% of the maximum base rate of thejob they are training on, whichever is higher. Non-incentive employees will bepaid a $.30/hour premium while training.

 

##### **Section 15 – Temporary Jobs**

When a temporary job vacancy occurs, due to the temporary absence of anemployee and that absences is expected to last for thirty (30) days or more,the Company shall fill the vacancy by a temporary recall to those employeeswith recall rights or by posting a temporary bid if there are no recallsavailable.  Employees recalled orbidding to a temporary position will return to the classification they were inwhen the temporary no longer exists or if returning to layoff status willreceive bumping rights.  The temporarywill be for the length of the said leave of absence.

 

Whenan employee returns from a medical leave and finds that they are unable toresume working their job within three (3) calendar days and must go on medicalleave again, the employee working the job on a temporary basis will maintainrights to that job for the same medical and will not back up if needed duringthe three (3) day period.

 

TheCompany will notify the Bargaining Committee in advance when an employee isrequired to perform temporary experimental, developmental, or prototype workthat is not part of the employee’s job classification.

 

**Section 16, Seniority Lists**

TheCompany shall compile, maintain, post prominently, and furnish the Steward andBargaining Committee members every 60 days an official seniority list ofemployees arranged in order of seniority and showing their most recent hiringdate determined in accordance with the provisions of Section 5 of this Article.

 

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**Article IX**

**LEAVE OF ABSENCE**

 

**Section 1, Leave Procedure**

Uponapplication, leaves of absence may be granted employees at the convenience anddiscretion of the Company for limited periods not to exceed one year.  Any extension beyond one year will be byagreement between the Company and Union. Employees elected or selected to perform Union duties or employeeselected to public office in the City of Elkhart, Elkhart County, in the Stateof Indiana, or in the United States Legislature shall be granted leaves ofabsence with accumulated seniority until such service shall end.

 

Anemployee who is on a personal leave of absence for more than 5 consecutiveworkdays shall pay $10.00 for family coverage, or $3.00 for single coverage foreach working day that exceeds 5 days.

 

**Section 2, Medical**

Anemployee who may become temporarily physically unable to work shall be given aleave of absence upon presentation of a doctor’s certificate confirminginability to work.  Said certificateshall be presented within two weeks from the first day of absence occasioned bysuch illness.  A leave of absence forillness shall be for a maximum of thirty days or the expected length of absenceas specified on the physician’s certificate. A doctor’s recommendation for a change of climate shall be recognizedone time only and shall be for a maximum of three months.

 

**Section 3, Family and Medical Leave**

Family and Medical Leave willbe taken as provided by the Act.  At notime will the time taken on FMLA be counted as vacation time or as time neededunder existing provisions under our Sickness and Accident language.

 

*Any violation either of the FederalFamily and Medical Leave Act or of any State Laws relating to Family andMedical Leave shall be subject to the Grievance and Arbitration provisions ofthis agreement in addition to any other remedies provided by the law.  The Federal Family and Medical Leave Actwill be administered on a calendar year, January to January.*

 

**Section 4, Leave of Absence Form**

Everyleave of absence shall be made a matter of record.  The President of the Union and Financial Secretary shall benotified in writing within three (3) days after the approval of a leave.

 

**Section 5, Armed Services**

Anemployee who serves in the Armed Services or Government Service of the UnitedStates under a Selective Service Act shall accumulate seniority as provided forin that act.

 

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**Section 6, Excused Time Off**

Anemployee may be granted up to five consecutive days off from work on an excusedbasis without obtaining a leave of absence. However, the Company must be notified at least two (2) weeks in advance.  This privilege may be used only once duringeach calendar year.  If a holiday fallsduring the period in which the clause is used, the holiday will be paid.

 

**Section 7, Jury Duty**

Inthe event an employee is called upon to serve on a jury, incentive employeeswill be paid their straight time hourly average earnings for the previouscalendar quarter for all time lost less jury duty pay.  Non-incentive employees will be paid attheir applicable hourly rate less jury duty pay.

 

Afirst shift employee, or second shift employee, for the shift on the day onwhich the employee served on a jury.  Athird shift employee will be paid for the shift before or after the day onwhich the employee served on the jury. The third shift employee will select the shift of absence.

 

In order to qualify for jury duty supplemental payan employee must present the Company with the Notice to Report within two (2)working days following receipt of the notice. The Company under good faith will pay the employee prior to receivingcourt reimbursement.  The employee willbe required to submit the court reimbursement to the Payroll department withinfour (4) weeks of completion of serving on a jury.  If court reimbursement is not received within the specified timeframe, the Company will deduct the amount of pay received from the Company fromthe next pay period(s) of the employee.

 

**Section 8, Bereavement**

Inthe event of a death in an employee’s immediate family, time off up to three(3) working days shall be granted. Pay for incentive employees will be theemployee’s straight time average hourly earnings for the previous quarter.  Non-incentive employees will be paid attheir applicable hourly rate.  Time offwith pay will be granted for deaths in the immediate family which occur duringholidays and the vacation periods.  Forpurposes of bereavement pay, immediate family is defined as spouse, parent,child, still-born child, brother, sister, parent of spouse, step-parent,step-child, step-brother, step-sister, step-father-in-law, step-mother-in-law,half sister, half brother, grandparent, or step-grandparent (maximum of four),grandparent of spouse, grandchild, step-grandchild, brother-in-law,sister-in-law, son-in-law, daughter-in-law. “In-laws” will still be considered “in-laws” if an employee’s spouse hasdied but the employee has not remarried.

 

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**Article X**

**VACATIONS ANDHOLIDAYS**

 

**Section 1, Vacation Schedule**

Allemployees who have been in the continuous employ of the Company for more thanone (1) year prior to June 1st shall be entitled to vacations with payaccording to the following schedule:

 

| 1 year or more   |   | 5 days  |   | 3     | % |
|------------------|--------|---------|--------|-------|---|
| 2 years or more  |   | 7 days  |   | 3-1/2 | % |
| 3 years or more  |   | 8 days  |   | 4     | % |
| 4 years or more  |   | 9 days  |   | 4-1/2 | % |
| 5 years or more  |   | 10 days |   | 5-1/4 | % |
| 7 years or more  |   | 10 days |   | 5-3/4 | % |
| 10 years or more |   | 15 days |   | 7-1/2 | % |
| 13 years or more |   | 15 days |   | 8     | % |
| 15 years or more |   | 20 days |   | 9     | % |
| 17 years or more |   | 20 days |   | 9-1/2 | % |
| 21 years or more |   | 20 days |   | 10    | % |
| 25 years or more |   | 25 days |   | 11    | % |

 

The percentages shall becomputed on the gross earnings of the employees between June 1st of theprevious year and May 31st of the current year.

 

**Section 2, Termination of Employment**

Employeesleaving the employ of the Company will have a non-forfeitable right to theirvacation pay earned up to date of termination.

 

**Section 3, Vacation Scheduling**

Allvacations may be taken during the vacation period beginning June 1 and endingMay 31, except that employees entitled to seven (7) to twenty-five (25) daysvacation may schedule the balance of their vacation during the same periodprovided such vacation is scheduled 15 days in advance.  The Company realizes that not all vacationscan be scheduled 15 days in advance, thus, one day of vacation will be grantedto an employee when notifying his supervisor by 12:00 noon the day prior to thescheduled vacation day.  No additionalvacation days other than the one-day of vacation, will be granted unless theproduction schedule allows for the additional time off.  More than one employee in any one group maybe granted a vacation for the same time, provided that approval is consistentwith the efficient performance of the duties of that group.  The Company shall have the right to close thefactory for vacation, in which case all vacations shall be taken during thatperiod.  Seniority will govern allvacation requests submitted prior to April 1st for the upcomingvacation year.  After April 1, allrequests will be on a first request basis without regard to seniority.

 

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**Section 4, Vacation Shutdown**

Allemployees must take vacations to which they are entitled except that thoseemployees entitled to fifteen (15) to twenty-five (25) days may limit theirvacation to 10 days if they choose with no change in their vacation pay.  The Company shall have the right to work anemployee during the vacation period in case of emergency or unusual conditionswith his consent.  Employees asked towork during the plant shutdown for vacation shall have the opportunity toschedule their vacation at another time.

 

Employeeswho are on a medical leave of absence or a worker’s compensation leave ofabsence when the plant shutdown begins will be allowed to schedule theirvacations that would have been taken at the plant shutdown time at another timeduring the vacation year.  Thesevacations must be scheduled in accordance with Article X, Section 3 of theworking agreement.

 

**Week(s) of :**

 

|            |   | **2003**    |       | **2004**    |       | **2005**    |       |
|-----------------|--------|-------------|------------|-------------|------------|-------------|------------|
| **First Week**  |   | **6/29/03** | ** ** | **7/4/04**  | ** ** | **7/3/05**  | ** ** |
| **Second Week** |   | **7/6/03**  | ** ** | **7/11/04** | ** ** | **7/10/05** | ** ** |

 

#### **Section 5, Vacation Payments**

Vacationpayments shall be made to employees during the week immediately preceding thevacation period.

 

Employeesenlisting or being drafted for service in the armed forces shall receive theearned portion of their vacation according to their seniority.  An employee who has returned from theservice in the armed forces with seniority accumulated under the provisions ofArticle IX, Section 5, shall receive vacation in accordance with his senioritywith pay to be based upon forty hours at his applicable base rate (120% of hisapplicable base rate for incentive employees) or upon the vacation percentage,whichever is greater, less any amount previously paid for the same vacationyear.

 

**Section 6, Laid Off Employees**

Allemployees who have been laid off prior to June 1st shall receive the earnedportion of their vacations.  Vacationchecks to laid-off employees shall be mailed during the first two weeks inJune.

 

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**Section 7, Holiday Schedule and Eligibility**

TheCompany will pay all employees who meet the following eligibility rules foreight hours not worked on:

 

# **Holiday Schedule**

**2003**

 

| Good Friday               |   | 4/18/03  |   |
|---------------------------|--------|----------|--------|
| Memorial Day              |   | 5/26/03  |   |
| Labor Day                 |   | 9/1/03   |   |
| Thanksgiving Day          |   | 11/27/03 |   |
| Day after Thanksgiving    |   | 11/28/03 |   |
| Independence Day observed |   | 12/24/03 |   |
| Holiday 1                 |   | 12/25/03 |   |
| Holiday 2                 |   | 12/26/03 |   |
| Holiday 3                 |   | 12/29/03 |   |
| Holiday 4                 |   | 12/30/03 |   |
| Holiday 5                 |   | 12/31/03 |   |
| Holiday 6                 |   | 1/1/04   |   |

 

**2004**

 

| Good Friday               |   | 4/9/04   |   |
|---------------------------|--------|----------|--------|
| Memorial Day              |   | 5/31/04  |   |
| Labor Day                 |   | 9/6/04   |   |
| Thanksgiving Day          |   | 11/25/04 |   |
| Day after Thanksgiving    |   | 11/26/04 |   |
| Independence Day observed |   | 12/23/04 |   |
| Holiday 1                 |   | 12/24/04 |   |
| Holiday 2                 |   | 12/27/04 |   |
| Holiday 3                 |   | 12/28/04 |   |
| Holiday 4                 |   | 12/29/04 |   |
| Holiday 5                 |   | 12/30/04 |   |
| Holiday 6                 |   | 12/31/04 |   |

 

**2005**

 

| Good Friday               |   | 3/25/05  |   |
|---------------------------|--------|----------|--------|
| Memorial Day              |   | 5/30/05  |   |
| Labor Day                 |   | 9/5/05   |   |
| Thanksgiving Day          |   | 11/24/05 |   |
| Day after Thanksgiving    |   | 11/25/05 |   |
| Independence Day observed |   | 12/23/05 |   |
| Holiday 1                 |   | 12/26/05 |   |
| Holiday 2                 |   | 12/27/05 |   |
| Holiday 3                 |   | 12/28/05 |   |
| Holiday 4                 |   | 12/29/05 |   |
| Holiday 5                 |   | 12/30/05 |   |
| Holiday 6                 |   | 1/2/06   |   |

 

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a)              Payfor non-incentive employees will be at their applicable hourly base rate.  Holiday pay for incentive employees will beat the employee’s previous quarter’s average. New Year’s Day shall be paid at the same rate as the precedingChristmas.

b)             Employeesmust have seniority as of the date of the holiday.  Temporary workers are not eligible.

c)              Employees must have worked on the lastregularly scheduled work day prior to and the next regularly scheduled work dayafter such holiday, except when such holiday falls within the 5-day bumpingperiod of a laid off employee and he exercises bumping rights within this 5-dayperiod. (See Article 12, Section 2) If you are scheduled to work the day beforeor the day after a holiday you will be guaranteed eight (8) hours of work.

d)             Anexcused absence which the Personnel Department has confirmed in writing will beconsidered as time worked for the purpose of meeting eligibility rule (c).

e)              Anabsence because of illness which does not extend longer than one week beforeand/or after a holiday shall be considered as time worked for the purpose ofmeeting the eligibility rule (c) upon presentation of a doctor’s certificateconfirming inability to work.  Anyemployee on a medical leave of absence or a military leave of absence shallreceive holiday pay for the first holiday which falls during the leave.  In cases where a series of holidays areobserved together, all holiday pay will be granted.

f)                Whenone of the above holidays occurs during an employee’s vacation, the employeeshall be paid for such holiday in addition to his vacation pay.

g)             Iflaid off 15 days prior to a holiday and employee has no job to bump, employeewill be paid for the holiday.  Employeeswith a job to bump must exercise such bumping rights to be eligible for holidaypay.

h)             Anincentive employee returning to work who has been on layoff longer than a yearshall be paid his previous quarter’s average or the plant’s last previousquarter’s average in the last quarter the employee worked, whichever islower.  Basis of pay is calendarquarter.

i)                 Anincentive employee on medical leave of absence of more than one (1) calendaryear validated by a medical doctor’s statement which prevents them from workingwill be paid on the same calculation as (h) above.

j)                 Duringany extended shutdowns, the Shipping Department at Plant Two may be scheduled towork for some periods to provide service for our customers.  If the shutdown period would include aholiday the employee may take the holiday at a later date not to exceedsix  (6) months from the date holiday.

 

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# **Article XI**

**HOURS AND OVERTIME**

 

**Section 1 – WorkDay/Work Week**

RegularStarting Times are defined as follows:

 

UAWLocal 612 – Main Street Facility - First Shift - 6:00 a.m.

UAW Local 612 – Plant 2 – First Shift – 6:00a.m.Split Shift – 8:00 a.m.

 

*Senioremployees shall have preference of first, second, and third shifts.  No one may exercise shift selection moreoften than once a year, which shall be on April 1 of each year, except for thatopportunity to exercise their shift preference by seniority, when an openingoccurs in their job classification. When an opening occurs in a job classification which is worked more thanone shift, that opening shall be offered first for purposes of shift selectionto those working in the classification. The remaining opening will be posted and awarded by the open shift.  Elimination of a shift will automaticallyconstitute a layoff for the employee(s) working on that shift.  When an employee wants to exercise a shiftselection, once a year he/she must put his request in writing at least fiveworking days in advance of the week of April 1.  Such shift change will begin at the regular starting time of thefirst day of the first week following the five days of advance notice.*

 

*Split shift employees at Plant #2 willbegin their shifts at 8:00 a.m. and end their shift at 4:30 p.m.  If further exceptions are needed, theCompany will provide notice to the Union to secure their agreement regardingthe changes.  The number of split shiftemployees needed at Plant #2 will be discussed with the Bargaining Committee.*

 

The Company reserves the rightto schedule second and third shifts in accordance with our needs.  The Company will provide notice to the Unionto secure their agreement regarding the hours of these shifts.

 

It is understood by bothparties that overtime hours will be allocated fairly and equally amongst allemployees in the job classification scheduled to work the overtime.

** **

**Section 3 –Overtime Pay**

a)              The Company will pay one and one half (11⁄2)times the regular hourly rate for all hours worked in excess of eight (8) hoursin a day and time and one-half for all hours worked on Saturday.

b)             The Company will pay two (2) times theregular hourly rate for all hours worked on Sundays and holidays.  This payment is in addition to any holidaypay for which the employee may have qualified.

c)              The Company will pay twice the regular hourlyrate to non-incentive employees and twice the average hourly earnings of theincentive employees for all hours worked Sunday.

 

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d)             The Company will pay twice the regular hourlyrate to non-incentive employees and twice the average hour earnings of theincentive employees for all hours worked on paid holidays.  This will be in addition to the regularholiday pay.

e)              Premium time average earnings calculationsfor incentive employees under this Section will include all incentive andnon-incentive earnings during the full shift calculation period.

f)                Any unqualified workers or workers in progressionwill be excluded from scheduled overtime.

 

**Section 4,Assignment of Overtime**

TheCompany may work overtime in a group while employees are laid off from thegroup.  Employees shall be recalled tothe group when, after deducting the hours of the group’s absences in the weekfrom the amount of the group’s weekly overtime and then adding the hours of anyemployees transferred into the group during the week, there remains a number ofhours that would provide recalled employees with thirty-two (32) hours of workfor at least two (2) consecutive weeks.

 

Ifadditional employees are needed to work in the group, then employees withrecall rights to the jobs in the group shall have the next right to workovertime in the group if they are not required to work overtime in theirregular group.  The most senioremployees shall be asked first.

 

Anyunqualified workers or workers in progression will be excluded from scheduledovertime.  If the Company neglects tooffer the overtime work to those employees with recall that are present in theplant when the offer is made, the Company will pay the employee who was notoffered the overtime for the overtime missed if another employee who had noright to the overtime or another employee with less seniority with recall worked.

 

Ifadditional employees are needed to work overtime after offering overtime to theemployees aforementioned, then qualified employees on the overtime lists shallbe asked in accordance with their seniority, if they are not working on theirregular job at the time that the offered overtime occurs.

 

Employeestemporarily transferred from one job to another shall be paid, as provided forin Articles XII, XIII and XXI.

 

**Section 5, Breaks and Wash-up Periods**

Two ten (10) minute breaks willbe provided each employee during the normal workday – one (1) during the firstportion of the shift and one (1) during the latter portion of the shift.

 

These breaks maybe scheduled by the Company as fixed, staggered, as needed, or subject torelief, depending upon the requirements of the job involved.

 

The five (5) minutes ofwash-up time prior to the lunch period and the end of the shift set forth inPlant Rules will be continued.

 

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No separate payment for breaksand wash-up time will be made for incentive employees as such time has beenprovided for by appropriate allowances in the incentive standards under ArticleXIII.

 

**Section 6, Overtime Notification**

In an effort to bettercommunicate overtime, the Company will post overtime notices for daily overtimewithin the department by 11:00 a.m. the prior day.  Overtime notice for Saturday will be postedby 11:00 a.m. on Thursday.

 

It the Company neglects toprovide overtime notice and the employee missed an overtime opportunity becauseof the lack of notice, the Company will pay for all overtime wages lost.  If an employee is absent when the overtimenotice is provided by supervision it shall be his/her obligation to call todetermine whether or not overtime is being offered.

 

# **Article XII**

**WAGES, JOBCLASSIFICATIONS AND INCENTIVES**

 

**Section 1,****General**

The wage structure forboth incentive and non-incentive job classifications are set forth in ArticleXX.  The incentive plan is set forthcollectively in the Standard Hour Plan in Article XIII.

 

**Section 2,****WageProgression Schedule**

All employees who are hired or who permanently througha bid or who are recalled into a job classification (unless previouslyqualified) shall start at 80% of the maximum base rate for the labor grade of thatjob classification and progress from 80% to 100% of the maximum base rate inaccordance with the following progression schedule:

 

| **Labor  Grade** |   | **Length of Wage Progression** |   |
|------------------|--------|--------------------------------|--------|
| 1                |   | 1 month                        |   |
| 2                |   | 2 months                       |   |
| 3                |   | 3 months                       |   |
| 4                |   | 4 months                       |   |
| 5                |   | 5 months                       |   |
| 6                |   | 6 months                       |   |
| 7                |   | 7 months                       |   |
| 8                |   | 8 months                       |   |
| 9                |   | 9 months                       |   |
| 10               |   | 10 months                      |   |
| 11               |   | 11 months                      |   |

 

The employee shall receive a wage increase on each monthly anniversaryof the date of hire or transfer into the job classification until the employeereaches 100% of the maximum base rate.  (Any excused and/or time off the job approvedby the Company will not be counted towards the employees qualificationtime.)  The monthly progressionincrease shall be an amount equal to the difference between 80% of the maximumbase rate and 100% of the maximum base rate divided by the number of months inthe progression schedule.  (See WageProgression Schedule in Article XIX)

 

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When an employee permanently transfers by bidding or is recalled to a new job classification for whichhe/she previously qualified, such employee will be paid at the maximum baserate of the new job classification when the employee is moved to the new jobclassification.

 

Incentiveemployees shall remain at the progression base rates of their jobs until theyhave equaled or exceeded 100% performance based on an average for a productionwork week (five (5) consecutive days). An employee must have full access to incentive opportunity and beallowed to perform the work in said job for a minimum of 50% ofthe time during this period.

 

The employee once qualifiedshall be paid what his/hers earnings would generate against the maximumincentive base rate, retroactive to the first day of the qualifyingperiod.  However, if the employee isdeemed “qualified” and does not achieve 100% performance for any week duringthe pre-determined training period, he/she shall be returned to the trainingprogram for the remaining time.

 

Based on management’s assessment of an individualemployee’s qualifications at time of hire, transfer, or during the period ofthe wage progression, an employee may be advanced through the progression at anaccelerated pace.

 

An employee working in an incentive job classificationwill not be eligible for incentive pay until the employee is “qualified” andreaches 100% of the maximum rate.

 

**Section 3, Qualification Criteria**

The Company agrees to establishspecific qualification criteria for each job classification within a reasonablelength of time for non-incentive jobs and during the conversion for incentivejobs.  The Bargaining Committee willreview the qualifications criteria and help determine the fairnessthereof.  The Company also agrees todevelop a disqualification procedure for qualified operators who perform at anunacceptable level and meet with the Bargaining Committee to discuss theprocess.

 

**Section 5, Report In Pay**

Whenan employee reports to work he will be guaranteed a total of four (4) hours ofwork or four (4) hours of pay or a combination thereof.  Payment for time not worked in calculatingthe four (4) hours guarantee will be at the employee’s applicable base rate.

 

**Section 6,****Call In Pay**

Employeeswho receive emergency calls to return to work between the hours of 4:00 P.M.and midnight shall receive time and one-half of their applicable base rate andshall not receive less than two hours of pay. Employees who receive emergency calls between the hours of 12:00midnight and 6:00 A.M. shall receive two times their applicable base rate forall hours worked prior to 6:00 A.M. and shall not receive less than two hourspay.  Incentive employees will receivetheir actual incentive earnings in the calculations set forth in this Sectionif higher than their incentive base rate. Any guarantee payment for time not worked will be at the incentive baserate.

 

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**Section 7, Shift Differential**

Allemployees working on the second and third shifts shall receive $.40 per hour inaddition to their regular pay.

 

**Section 8, Union Overtime Computation**

In the event a Steward,Committeeman, Executive Board Member, or an officer of the Union is called awayfrom his job during the day because of Union duties, the time so taken shall,for the purpose of computing overtime pay, be considered as time actuallyworked.

 

**Section 9, Pay For Annual Inventory**

*The taking of inventory will beconsidered a regular work day. Employees will continue taking inventory until the inventory iscompleted.  Employees taking inventorywill be paid the previous quarter’s plant average or $17.00 whichever ishigher.*

 

**Section10, Pay For Work Related Injury**

Forany time lost from work due to work related injury or illness for which theCompany is required to pay, employees will be paid at their applicable baserate.

 

**Section 11, Lump Sum Payment**

Payablein separate checks to active, non-probationary employees on the first Friday inDecember (minus legal deductions).

**2003 -  $500**

**2004 -  $450**

**2005 -  $450**

**ELIGIBILITY:**

a)              Employees who have been actively employed forthirty (30) calendar days or more in the twelve (12) month period precedingeach December when the lump sum is paid and who are at work or are on layoff oron leave.

b)             Employees who retired or the beneficiary of aretiree who in the twelve (12) month period preceding the lump sum paymentshall also receive the payment if they have been actively employed for thirty(30) calendar days or more in the twelve (12) month period preceding eachDecember the lump sum is paid.  If anemployee quits or is discharged before the lump sum payment is made, he willnot be eligible for the lump sum payment.

 

**Section 12, New Hire**

NewHires will progress according to Working Agreement.  They will have to qualify and progress on the job they are hiredon the job they are hired in or in the same manner as an employee who gets ajob from a bid.

 

**Section13, Allocation of Work**

TheCompany shall allocate all work as equitably as practical among group ofemployees capable of doing such work. Ability to do the job in an efficient manner, up to the Company standardof quality, and the necessity of meeting production schedules, shall be theonly recognized factors in equitable allocation of work.

 

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## **Article XIII**

**Standard Hour Plan(SHP)**

 

The Company, on its part,agrees to provide to the Union and its employees opportunities for continuedemployment, good working conditions, and fair and equitable wages.  The Union agrees to accept reasonable measureson the part of the Company (as negotiated through Collective Bargaining) toimprove its competitive position by improving productivity, reducing waste,conserving material and supplies, and improving quality of workmanship.

 

The basic plan will be theStandard Hour Plan (SHP) in which incentive standards will be expressed interms of standard hours for a specified quantity of quality production.  However, other suitable time standards maybe used by mutual agreement, in writing, between the Company and Bargaining Committeein those situations where the SHP****is inappropriate.

 

Incentive standards underthis SHP will be established and paid on an individual basis.  Group standards will be utilized by mutualagreement in special circumstances.

 

#### **Section 1**

It is the responsibilityof the Company to establish proper methods for all jobs in the workplace and toestablish incentive rates that:

(a)          Arefair and equitable.

(b)         Arebased on the capacity of a normal worker (100% represents normal) working at asafe, normal pace and under normal conditions and will allow workers who exceedthese standards to earn extra compensation.

(c)          Allstandards will be established by the use of any accepted industrial engineeringmethod(s) such as time study (continuous stopwatch method), predetermined timesystem, standard data developed from studies made in this workplace or acombination of these.  Standards setfrom standard data (as outlined above) must show the specifications formethods, tooling, cycles, etc., in order to ensure that the proper time valuesare being applied. A worker whose job is to be studied will be notified onehour in advance of such study.  TheCompany will also inform the Local Union of its intent to do such study onehour in advance of the study.  It isunderstood that the Company will not be required to make such one hour advancenotification during the period of conversion from the old incentive pay systemto the new SHP, but will be obligated from that point forward.

(d)         RatingFactor (method to arrive at 100% performance if the stopwatch method isutilized): Different workers possess varying degrees of skill and effort;therefore, it may be necessary to rate (level/normalize) the worker to arriveat a standard representing 100% performance, either plus or minus, tocompensate for work pace variances above or below 100%.  Such rating will be made at the time of thestudy before leaving the observed job location.  The same rating procedure will be applicable to joint timestudies with the understanding that the observers will initial and exchangetheir rating before leaving the observed location.

 

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|   | Two Examples  of Applied Rating Factor (Examples Only): |
|--------|---------------------------------------------------------|
|   | Observed  Watch Time                                    | = |   | .90 |  Mins |
|   | Rating  Factor                                          | = |   | 110 | % |
|   | Normal Time                                             | = |   | .99 |  Mins |
|   |
|   | Observed  Watch Time                                    | = |   | 1.10 |  Mins |
|   | Rating  Factor                                          | = |   | 90 | % |
|   | Normal Time                                             | = |   | .99 |  Mins |

 

(e)          Allstandards will give due consideration to the quality of workmanship required.

 

(f)            Allstandards will be established to yield a “1/1” ratio, i.e., the standard willbe such that for each one (1) percent increase in production in excess of theestablished production standard, the worker will receive an equal percentageincrease in pay based upon the guaranteed base rate.  An employee cannot be paid less than the guaranteed base wage.

1.               Theearnings objectives of the incentive program will be twenty-five percent (25%)earnings above the guaranteed base rate for a qualified worker working at anincentive pace.  It is understood thatthe twenty-five percent (25%) earnings objective is not a minimum guarantee andit is further understood that there is no limit on earnings under thisincentive program.

2.               Amachine control allowance of twenty-five percent (25%) will be added to machinecycle times.  The machine controlallowance means there is twenty-five percent (25%) increase on the machineportion on the operation, which will be computed and stated separately as anelement and applied to the actual machine cycle time.  This allowance will be added even though there exist manualelements, required by the established method, which are wholly internal to themachine cycle time, it being understood that manual elements may be added tomore efficiently utilize such machine cycle time without affecting thestandard.

 

**Examples (ExamplesOnly):**
| **(1)** | **Element  Number**                                                                 |                                                                      | **Time (minutes)** |
|---------|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------|--------------------|
|    | 1.                                                                                  | (Manual  Internal)                                                        | .14                |   |
|    | 2.                                                                                  | (Manual  Internal)                                                        | .31                |   |
|    | 3.                                                                                  | (Manual  Internal)                                                        | .17                |   |
|    | 4.                                                                                  | (Machine  Time)                                                           | .82                |   |
|    | 5.                                                                                  | (Machine  Allowance) .82 x 25%       = | .21                |   |
|    | 1.03                                                                                |   Mins                                                          |
|    | Standard Time                                                                       |
|    |                                                                                |
|    | (Elements 1,  2 and 3 are internal to the machine cycle time in the example above.) |
|         |                                                                                     |                                                                           |                    |  |  |

 

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| **(2)** | **Element Number**                                                       |                                                                      | **Time (minutes)** |
|---------|--------------------------------------------------------------------------|---------------------------------------------------------------------------|--------------------|
|    | 1.                                                                       | (Manual  Internal)                                                        | .12                |   |
|    | 2.                                                                       | (Manual  Internal)                                                        | .32                |   |
|    | 3.                                                                       | (Manual)                                                                  | .09                |   |
|    | 4.                                                                       | (Machine  Time)                                                           | .44                |   |
|    | 5.                                                                       | (Machine  Allowance) .44 x 25%       = | .11                |   |
|    | 6.                                                                       | (Manual)                                                                  | 1.46               |   |
|    | 2.10                                                                     |   Mins                                                          |
|    | **Std. Time**                                                            |
|    |                                                                     |
|    | (Elements 1  and 2 are internal to the machine time in Example 2 above.) |                                                                      |
|         |                                                                          |                                                                           |                    |  |  |  |

 

Appropriateallowances under Section 4 (a) below will also be added to the manual elementsnot internal to machine time.

 

#### **4.**               Allowances and their application

(a)          Everyemployee will be entitled to and will receive allowances for Personal, Rest andDelay time (P R & D), which will be a minimum of 15**%** (other allowances may beadded as necessary).

(b)         Allallowances will be applied to increase the normal time, which, when properlyapplied, will yield an allowed time (Standard)

 

Example of allowance application (Example Only):

 
| 1.00 |   | Minute  Normal Time/Pc   |
|------|--------|--------------------------|
| +.15 |   | Minutes  Allowance Time  |
| 1.15 |   | Minutes  Allowed Time/Pc |

 

Using theallowed time above, pieces per hour would be calculated as follows:

 

60 (Mins.) ÷1.15 (Mins. Allowed Time) = 52.2 pcs/Hr

 

Standard Hoursper 100 pieces would be calculated as follows:

 
| allowed time  per piece x 100 pieces | =      | 115.0 | =      | 1.92  Standard Hrs/100 Pcs. |
|--------------------------------------|--------|-------|--------|-----------------------------|
| 60 minutes                           |   | 60    |   |                        |

 

5.               If aworker within an incentive job is required to work on a job that does not havea permanent production standard established, he/she will be paid the applicablehourly rate for all time worked on the job.

6.               Incentiveearnings will be calculated for each individual incentive employee for thetotal hours worked on incentive during each shift (including incentive timeworked by the employee on any pre or post shift overtime during that workday).

 

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7.               Any production standard once establishedwill not be changed unless the Company makes a change in the material(s),tool(s), machine(s), quality standard(s), method(s), design(s), layout(s),speed(s), or feed(s).  Any productionstandard, once established, will not be changed merely because of a change inname(s), symbol(s), number(s), or color(s) etc. of the product(s), material(s),tool(s), machine(s), or operation(s).

(a)          Aworker’s coordination or proficiency does not constitute a change in method(s).

(b)         Astandard will be changed if there is evidence of mathematical and/or clericalerror(s), misapplication of a predetermined time value and/or standard data developedin the workplace.

(c)          TheCompany may audit work and standards provided that only the element or****elementsof a standard which are affected by any of the above will be possibly changed;all elements that were not affected by the above****will not be changed.  This limitation will not apply in the caseof a “revamped method,” i.e., a situation where either thirty percent (30%) ofthe total elements or thirty-five percent (35%) of the total time are beingchanged.

8.               Priorto the installation of a standard or a revision where a change(s) is involved,the Company will explain the details and the methods, times, etc.****willbe made available to the Local Union Representatives in writing.  The details will include all data and adescription of the various elements of the job(s).

9.               Anacceptable record of a correct, new, or revised standard will include adetailing of each element and allowances, together with the time value of eachelement and such description and explanation as will be necessary to relate thetime standard to the operation and job(s) as it is performed.  If a continuous stopwatch study is used toestablish a standard, all strikeouts must have a written explanation listed onthe time study sheet(s).

10.         Anyrework, which is the responsibility of the worker performing the rework, willbe performed on standard without any additional pay except that such workerwill not be paid less than the guaranteed base wage for all time spent on therework.

11.         Incentiveearnings will be computed and paid by multiplying the percent earned by theappropriate guaranteed base wage.

 

**Example (Example Only)****:**

 
| Guaranteed  Base Wage:  |         | $      | 15.00  |              |   |   |
|-------------------------|--------------|--------|--------|-------------------|--------|--------|
|                    |         |   |   |              |   |   |
| Percent  earned:        |         |   | 130    | %                 |   |   |
|                    |         |   |   |              |   |   |
|                    |         | $      | 19.50  |              |   |   |
| 6.5 Hrs. on  Incentive: | 6.5 x $19.50 | =      |   |              | $      | 126.75 |   |
|                    |         |   |   |              |   |   |   |
| 1.5 Hrs. at  GBW:       | 1.5 x $15.00 | =      |   |              | $      | 22.50  |   |
|                    |         |   |   |              |   |   |   |
|                    |         | $      | 149.25 |   Total |

 

The same result can be arrivedat by multiplying the hours on incentive by the percent earned and adding theallowable downtime/non-incentive hours, then multiplying by the guaranteed basewage.

 

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**Example (Example Only)****:**

 
| 6.5 Hrs. on  Incentive x 130% | =                                              | 8.45 Earned  Hrs. |
|-------------------------------|------------------------------------------------|-------------------|
|                          |                                           |              |
|                          | +1.5  Allowable downtime or non-incentive Hrs. |
|                          |                                           |
|                          | 9.95 Total  Hours                              |
|                          |                                           |
| 9.95 Hrs. x  $15.00           | =                                              | $149.25           |

 

12.                                 Whenan employee working on a SHP **s**tandard encounters continuing off-standardconditions of a temporary nature which are substantially affecting his/herperformance, e.g. hard stock, oversized stock, equipment malfunctions, etc., he**/**shemay request through his/her supervisor that Industrial Engineering establish asupplemental standard or temporary allowance to compensate for the off-standardcondition for the duration of such condition. The Company will correct thecondition or establish a supplemental standard within 48 hours of the request(such supplemental standard will be paid retroactive to the affectedemployee[s] from the time the condition was reported).  If the Company fails to correct thecondition or establish the supplemental rate within the 48 hours period, theemployee will be paid 120% of their base wage for all time in excess of this 48hours period while working against the off-standard condition.  Any supplemental standard under this Sectionwill be applicable only so long as the unusual condition(s) for which they wereestablished continue to exist.

13.         Theparties agree that it is in their best interest to have bargaining unitemployees trained in the time study process in order to resolve questions,complaints, and possible grievance issues.

The Companyagrees to recognize Union Time Study Person (LUTSP) and one (1) Alternate LocalUnion Time Study Person (ALUTSP) in the facility

#### **14.**         Standards Dispute(s)

Once the Company issues a new or revised standard, workers will beexpected to make a reasonable effort to earn incentive and will give thestandard a fair and reasonable trial period of thirty (30) days from the dateof issuance.  In the event the thirty(30) day trial period is not practical, a set number of runs will be mutuallyagreed upon by the Company and the Union to serve as a trial period.

 

After thethirty (30) day trial period (or after the number of mutually agreed upon runsas outlined above), the worker will have thirty (30) working days to file SIR.

a)              Ifa SIR is not filed within the thirty- (30) working day period, the standardwill be considered established.

b)             Validstandard disputes will reviewed by the Company’s Industrial Engineer and theLUTSP, within 15 working days.  Ifnecessary a joint study, using the same method used to establish the standardwill be performed.  This time period maybe extended by mutual agreement between parties in writing.

c)              Ifa standard dispute exists, the grievance will be implemented at the third stepof the grievance procedure and will be processed as any other grievance inregard to time limits up to and including arbitration as outlined in thegrievance procedure.  It is understoodthat the parties may place a standards grievance on hold by mutual agreement inwriting.

 

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(It isunderstood that this period of time will be used to further investigate thefacts regarding the disputed standard and attempt to resolve the issue.)  Once the period of time the grievance was onhold has expired, the grievance will continue on in the grievance procedure asstated above, unless the hold is extended by mutual agreement in writing.

d)             Oncea standard has been disputed, the Company’s Industrial Engineer and the LUTSPwill, within 15 working days, perform a joint study, using the same method usedto establish the standard.  This timeperiod may be extended by mutual agreement between parties in writing.

e)              Ifthe dispute is not resolved, the Union may appeal the grievance to arbitrationas outlined in the grievance procedure with the understanding that thearbitrator must be someone who is experienced in standards disputes involvingrecognized industrial engineering practices and procedures.  The arbitrator will have the right to visitthe workplace and perform his or her own study using any recognized industrialengineering technique including the stopwatch time study method or the samepredetermined time system the Company used to establish the standard.  (The arbitrator will have the full authorityto determine which system he/she will use if he/she elects to check thestandard.)  The arbitrator’s decisionwill be final and binding upon both the Company and the Local Union.

f)                Back-pay,if any, will be paid retroactive to the date the standard was issued by the Company.

g)             Itis understood that the International Representative may bring an InternationalRepresentative from the Time Study and Engineering Department into theworkplace at any point during the grievance process in an effort to resolve thedispute.  The Company will provide acopy of all relevant and necessary information requested by the InternationalRepresentative and will allow full access to the job site, which will includethe right to perform a stopwatch time study.

 

If requestedby the International Representative, the Company’s Industrial Engineer or TimeStudy Representative will perform a joint time study using the stopwatch timestudy method; the parties will then meet in an attempt to resolve thegrievance.

#### **15.**         General Provisions

(a)          The LUTSP will perform joint analysis and studies as mutually agreed uponby the Company and the Union President as covered in Local UAW 612 ArticleXIII, Section 13 and Section 14.

(b)         During joint time studies by the stopwatchmethod the worker will follow the proper method as set by the Company.  It is further agreed that if a worker isobserved working below a pace of 100% during a stopwatch time study,such study may be stopped and the time recorded will not be used to set orcheck a standard.

(c)          Each employee will beresponsible for working to the quality standard established by the Company oneach job.  The Company and the Unionwill work together and will establish a quality action/variation reportingsystem to allow each incentive employee to monitor variations in material orprocess affecting quality.  It isunderstood that the quality action/variation reporting system will beimplemented prior to any conversion.  Anemployee directed to run parts or raw material after reporting a qualityvariation will not be penalized for poor quality work on such parts ormaterial.

 

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(d)         Theworker will be responsible for recording and reporting all downtime by use ofthe touch screen or use of the off standard cards.  The supervisor will verify the downtime, before turning it in topayroll (or other department).

(e)          TheCompany will not change any information on any time report/incentive report ordowntime report until it has been discussed with the worker who reported it,however, if****after the discussion, the report is changed and the partiesare in disagreement, the worker may file a grievance over the issue.

(f)            TheCompany will give a full explanation of all methods necessary to perform thejob and will fully train each worker in the correct way to complete their work.

(g)         When jobsin a job classification or department are placed on the new SHP, the newstandard(s) will apply and replace the former standard(s) on that specificjob.  The correctness of new SHP standardsshould not be judged in any way by comparison to former incentive or otherstandards or performance, but rather by the provisions of this SHP.

(h)         **Temporary Standards:**

The partiesrecognize that once the SHP for each job has been established and implemented,new or different equipment and/or process(es), etc. may be introduced into theworkplace**.**A temporary or****permanent standard will be issued****for suchjob(s) by the Company, within two (2) weeks of its introduction into theworkplace.  Until such time as atemporary or permanent standard is issued, the employee will be paid at 120% ofhis/her applicable base rate for all hours worked on the job.

(i)             **Downtime/Delay(s):**

On operationswhich are properly performed under the incentive system, delay(s) beyond thecontrol of the employee are paid for at the guaranteed base wage.  These delays include waiting for materialand machine electrical or mechanical breakdown or power failure.

 

Since delaysare included in the allowance portion of the SHP for each job, the employeewill record the delay(s) start and end time(s) and one (1) tenth (6 minutes)will be deducted from the downtime for each occurrence****(the intent of thisdeduction is to****avoid paying “double” for the same delay/downtime).

 

Should the employee encountermore than two (2) delays which equal or exceed six (6) minutes during thecourse of a workday, the entire duration (including the first six (6) minutes)of such subsequent delay (3rd, 4th, etc.) during suchworkday will also be treated as downtime and paid at the applicable base rate.

 

**Example (Example Only):**

From 7:00 a.m. to7:05 a.m. waiting on material – 5” downtime will be recorded; no separatepayment will be made.

 

From 8:00 a.m. to8:10 a.m. waiting on material – 10” downtime will be recorded; 4” will be paidat the applicable base rate.

 

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From 9:10 a.m. to9:25 a.m. waiting on material – 15” downtime will be recorded: 9” will be paidat the applicable base rate.

 

From 10:00 a.m. to10:03 a.m. machine jammed – 3” downtime will be recorded; no separate paymentwill be made.

 

From 1:17 p.m. to1:19 p.m. power failure – 2” downtime recorded; no separate payment will bemade.

 

From 1:32 p.m. to2:07 p.m. power failure – 35” downtime recorded; 35” will be paid at theapplicable incentive base rate.

 

Total downtime forthis day is 70 mins; 22 minutes carved out and covered by allowance structure;48 minutes separately paid at applicable incentive base rate.

### *(j)*             Requirements

Qualified employees workingagainst SHP standards will be expected to work at an incentive pace whileworking on the new incentive standards.

**16.****       Payment for NonProduction Activities**

TheSHP provides that work for certain activities and conditions will be paid atthe applicable base rate.  Theseactivities include all time assigned to unrated work within the incentive jobclassification provided, however, that the following activities or assignmentsfor regular incentive employees will be compensated at the following specialrates:

(a)          Assignments to train – 127 1⁄2 of theapplicable incentive base rate.  Ornon-incentive worker will be paid $.30/hour premium while training.

(b)         Assignments to un-ratedexperimental/prototype work – 125% of the applicable incentive base rate.

(c)          Participation in Company-called meetings,required hearing test and approved United Way activities – 125% of theapplicable base rate.

 

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# **Article XIV**

**SUCCESSOR CLAUSE**

 

In the event of any sale of allor substantially all of the assets of the Company at the location or locationscovered by this agreement to a buyer who plans to operate an operation at thatlocation or locations with all of the employees as are covered by thisagreement, the buyer shall be bound to recognize the Union as the exclusivebargaining representative of these employees before the sale.

 

**Article XV**

**SEVERANCE**

 

**Section 1**

Ifeconomic or competitive conditions make it necessary to move part or all of aplant to a new location or if there is a shutdown of a plant or product line,the employees affected will have the following rights:

a)              Employeeswhose jobs are affected due to job elimination shall be required to exercisetheir option of bidding, bumping, accept layoff or severance pay as provided inthis agreement.

b)             Allemployees actively on the payroll for the duration of this agreement or laidoff or on leave of absence are eligible for severance pay.

c)              Activeemployees who are eligible for early retirement may elect their retirement and receiveseverance in accordance with this agreement provided they qualify under theprovisions of Article XVIII, Section 2 of the Working Agreement between Local612 and the Company.

d)             Severancepay for affected employees shall be at the rate of one (1) week pay for eachfull year of seniority at average earnings for the previous calendar year(pro-rated monthly and paid at previous calendar year’s average or currentaverage earnings, whichever is higher). In addition, anyone with 10 or more year’s seniority will receive anadditional two weeks for every five years of seniority after 10 years.

e)              Employeesaccepting severance pay shall forfeit all seniority rights at the time,retaining only vested rights, if any, in the pension plan.

f)                Allinsurance benefits will be provided and paid for by the Company for a period ofthree (3) months.

 

**Article XVI**

**TRANSFER OFOPERATIONS**

 

1.               Ifthe Company transfers any of its operations between Conn-Selmer (U.A.W. Local612) and Vincent Bach (U.A.W. Local 364) employees will be entitled to thefollowing options:

a)              Transferringwith the job or operation to the plant or division to which the job istransferred, or

b)             Remainingunder the jurisdiction of their respective locals, U.A.W., and exercising theirseniority rights to bump under the bumping procedure of this agreement.

2.               Employeesexercising their rights under (a) shall retain all seniority credits except forthe purpose of bidding or bumping.

 

40

----

 

3.               Ifthe Company moves a job to another existing plant or to a new plant then latermoves back to the original plant, the rates must be intact from the originalplant subject to Section 7(a) of the Standard Hour Plan (Article XIII).

4.               TheCompany recognizes that each of its Local Unions would prefer to retain theirown separate identity and, therefore, will not merge the two Locals during thelife of this contract.

 

# **Article XVII**

## **TRANSFER BETWEEN LOCALS**

 

Employeesaffected by any transfer of operations between Conn-Selmer (U.A.W. Local 612)and Vincent Bach (U.A.W. Local 364) will be entitled to the following rights:

1.               Employeestransferring will have a letter placed by their name, (S) for Conn-Selmer (V)for Vincent Bach, and will be placed on the seniority list of the Local theytransfer to, with the date of transfer becoming their seniority date forpurposes of bidding or bumping within the Local to which they havetransferred.  The original hire datewith the Company will be used for vacation entitlement, pensions, and any othernegotiated benefits.

2.               Employeestransferring will not be allowed to exercise their bidding rights in the Localthey are transferred to for a period of one (1) year from the date of theoriginal transfer except in case of layoff.

3.               Employeestransferring will have the right to bid or bump back into their original Localfor a ten-year period that follows the date of transfer to the otherLocal.  If an employee bids or acceptsrecall to his original Local, he will forfeit all rights to the other Localunless he was bidding or accepted recall while on layoff on the street.

4.               Forthe purpose of bumping within groups of transferred employees, the senioritydate from their original Local will be used. An (S) can bump an (S) or a (V) can bump a (V) with less seniority.

5.               Shoulda layoff occur on a transferred job, those employees without a letter will belaid off first.

6.               Anemployee who has recall rights to a job being transferred will retain thoserecall rights even after the job is transferred.  An employee would lose recall rights to a transferred job if heis recalled and refuses recall to the transferred job.

7.               Employeestransferred will accumulate seniority in their original Local for purposes ofbidding or bumping back to their original Local.

8.               Anemployee displaced by an employee electing not to transfer with the operationswill have the option of bumping, taking layoff, or transferring with theoperations with the rights defined above.

9.               Employeeselecting not to transfer with the transferred operations and/or employeesdisplaced as a result of the transfer will be able to use the extra time fortraining that is provided when a job is eliminated.

10.         Existingrates will be transferred with jobs subject to Section 7(a) of the StandardHour Plan (Article XII).  Un-rated jobswill be rated in accordance with the agreement of the Local to which the jobsare being transferred.

11.         AsSkilled Trades is not a regular production job, they will not be considered astransferable for the purpose of this agreement.

 

41

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**Article XVIII**

**BENEFITS**

 

#### **Section 1, Insurance**

The health insuranceplans in effect as of May 1, 2003 will remain in effect for the duration of theWorking Agreement.  The followingincreases for employee health insurance contributions will be added to employeehealth insurance contributions that were in effect on May 1, 2003.

 

**Indemnity PPO**

**2003 Rates***

 

| **Core Plan – 80/20 Plan** |   |   |       |
|---------------------------------|--------|--------|------------|
| Single                          |   | $      | 21.00/week |   |
| Family                          |   | $      | 36.00/week |   |
|                            |   |   |       |
| **Option 1 – 90/10 Plan**  |   |   |       |
| Single                          |   | $      | 37.00/week |   |
| Family                          |   | $      | 67.00/week |   |
|                            |   |   |       |
| **Option 2 – 70/30 Plan**  |   |   |       |
| Single                          |   | $      | 16.00/week |   |
| Family                          |   | $      | 24.00/week |   |

 

----

*A maximum cap of $8.00/weekfor following contract year 2004 and 2005

 

*At each annual enrollment date an employee(“family unit” in the case of employees married to other Conn-Selmer employees)may elect to opt out of the HSMD insurance and receive a $890 payment eachquarter (three (3) month period) [$445 for employees opting out from singlecoverage] for which he/she has elected “no coverage”; to exercise this option,the employee must present evidence of alternative coverage.  The employee (or “family unit”) may elect tore-enter the contractual coverage at the next annual enrollment period(normally effective the next 1/1) or upon a change in status as defined inHIPPA; employee opting out may still elect Dental Plan*

 

 

 

|   |   | **Vision** |      |
|--------|--------|------------|-----------|
|   |   | **2003**   |      | **2004** |   | **2005** |   |
| Single |   | $          | 1.50/Week |   | $ | 1.50/Week |   | $ | 1.5/Week |   |
| Family |   | $          | 4.25/Week |   | $ | 4.25/Week |   | $ | 4.25Week |   |

 

42

----

 

 

|   |   | **Dental** |      |
|--------|--------|------------|-----------|
|   |   | **2003**   |      | **2004** |   | **2005** |   |
| Single |   | $          | 3.65/week |   | $ | 3.65/week |   | $ | 3.65/week |   |
| Family |   | $          | 8.19/week |   | $ | 8.19/week |   | $ | 8.19/week |   |

 

#### **Section 2, Pension Plan**

*Effective January 1, 2003, theamount used to compute the benefits of the pension plan will be increased to$26.50 per month.*

* *

*Effective January 1, 2004, theamount used to compute the benefits of the pension plan will be increased to$27.50 per month.*

* *

*Effective January 1, 2005, theamount used to compute the benefits of the pension plan will be increased to$28.50 per month.*

* *

*Effective January 1, 2006, theamount used to compute the benefits of the pension plan will be increased to$29.50 per month.*

 

Employees taking EarlyRetirement on or after April 1, 2003 will be eligible for full pensionbenefits, if such employee is age 62 or older and has 30 or more years ofCredited Service at the date of such Early Retirement.

 

Effective March 1, 1976, thereduction factor for employees taking Early Retirement shall be 4/10 of 1% percalendar month by which such employee is under 65 at the time his first earlyretirement benefit payment is paid to him; provided, however, that if suchemployee has completed thirty (30) or more years of Credited Service, this benefitshall be reduced by 4/10 of 1% for each complete calendar month by which he isunder age 62 at the time his first early retirement benefit is paid to him.

 

43

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**Article XIX**

**Wage ProgressionSchedules**

 

**Wage ProgressionSchedule - 1st Year**

 
| **Labor  Grade** |   | **Start  Wage** |       | **1  Month** |       | **2  Months** |       | **3  Months** |       | **4  Months** |       | **5  Months** |       | **6  Months** |       | **7  Months** |       | **8  Months** |       | **9  Months** |       | **10  Months** |       | **11  Months** |       | **12  Months** |       | **Maximum****Wage Rate** |       |
|------------------|--------|-----------------|------------|--------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|----------------|------------|----------------|------------|----------------|------------|--------------------------|------------|
|             |   |            | ** ** |         | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                     | ** ** |
| **1**            |   | **$**           | **10.01**  |         | $          | 12.44         | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                     | ** ** | **$** | **12.44** | ** ** |
| **2**            |   | **$**           | **10.80**  |         | $          | 12.12         |       | $             | 13.43      | ** **    |       | ** **    |       | ** **    |       | ** **    |       | ** **    |       | ** **    |       | ** **     |       | ** **     |       | ** **     |       | ** **               |       | ** ** | **$** | **13.43** | ** ** |
| **3**            |   | **$**           | **11.60**  |         | $          | 12.54         |       | $             | 13.48      |          | $          | 14.42         | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                     | ** ** |   | ** ** | **$** | **14.42** | ** ** |
| **4**            |   | **$**           | **12.39**  |         | $          | 13.15         |       | $             | 13.90      |          | $          | 14.66         |       | $             | 15.42      | ** **    |       | ** **    |       | ** **    |       | ** **     |       | ** **     |       | ** **     |       | ** **               |       | ** ** |   | ** ** | **$** | **15.42** | ** ** |
| **5**            |   | **$**           | **13.19**  |         | $          | 13.83         |       | $             | 14.48      |          | $          | 15.12         |       | $             | 15.76      |          | $          | 16.41         | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                     | ** ** |   | ** ** |   | ** ** | **$** | **16.41** | ** ** |
| **6**            |   | **$**           | **13.98**  |         | $          | 14.55         |       | $             | 15.12      |          | $          | 15.69         |       | $             | 16.26      |          | $          | 16.83         |       | $             | 17.40      | ** **     |       | ** **     |       | ** **     |       | ** **               |       | ** ** |   | ** ** |   | ** ** | **$** | **17.40** | ** ** |
| **7**            |   | **$**           | **14.78**  |         | $          | 15.29         |       | $             | 15.81      |          | $          | 16.33         |       | $             | 16.84      |          | $          | 17.36         |       | $             | 17.88      |           | $          | 18.39          | ** ** |           | ** ** |                     | ** ** |   | ** ** |   | ** ** |   | ** ** | **$** | **18.39** | ** ** |
| **8**            |   | **$**           | **15.57**  |         | $          | 16.05         |       | $             | 16.52      |          | $          | 17.00         |       | $             | 17.48      |          | $          | 17.96         |       | $             | 18.43      |           | $          | 18.91          |       | $              | 19.39      | ** **               |       | ** ** |   | ** ** |   | ** ** |   | ** ** | **$** | **19.39** | ** ** |
| **9**            |   | **$**           | **16.36**  |         | $          | 16.81         |       | $             | 17.26      |          | $          | 17.70         |       | $             | 18.15      |          | $          | 18.60         |       | $             | 19.04      |           | $          | 19.49          |       | $              | 19.93      |                     | $          | 20.38 | ** ** |   | ** ** |   | ** ** |   | ** ** | **$** | **20.38** | ** ** |
| **10**           |   | **$**           | **17.16**  |         | $          | 17.58         |       | $             | 18.00      |          | $          | 18.42         |       | $             | 18.84      |          | $          | 19.27         |       | $             | 19.69      |           | $          | 20.11          |       | $              | 20.53      |                     | $          | 20.95 |   | $ | 21.37 | ** ** |   | ** ** |   | ** ** | **$** | **21.37** | ** ** |
| **11**           |   | **$**           | **17.95**  |         | $          | 18.35         |       | $             | 18.76      |          | $          | 19.16         |       | $             | 19.56      |          | $          | 19.96         |       | $             | 20.36      |           | $          | 20.76          |       | $              | 21.16      |                     | $          | 21.56 |   | $ | 21.97 |   | $ | 22.37 | ** ** |   | ** ** | **$** | **22.37** | ** ** |
|                  |        |                 |            |              |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |                |            |                |            |                |            |                          |            |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

44

----

 

**Wage ProgressionSchedule - 2nd Year**

 
| **Labor  Grade** |   | **Start  Wage** |       | **1  Month** |       | **2  Months** |       | **3  Months** |       | **4  Months** |       | **5  Months** |       | **6  Months** |       | **7  Months** |       | **8  Months** |       | **9  Months** |       | **10  Months** |       | **11  Months** |       | **12  Months** |       | **Maximum  Wage Rate** |       |
|------------------|--------|-----------------|------------|--------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|----------------|------------|----------------|------------|----------------|------------|------------------------|------------|
|             |   |            | ** ** |         | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                   | ** ** |
| **1**            |   | $               | 10.26      |         | $          | 12.69         |       |          |       |          |       |          |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       | $ | 12.69 |   |
| **2**            |   | $               | 11.05      |         | $          | 12.37         |       | $             | 13.68      |          |       |          |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   | $ | 13.68 |   |
| **3**            |   | $               | 11.85      |         | $          | 12.79         |       | $             | 13.73      |          | $          | 14.67         |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   |   | $ | 14.67 |   |
| **4**            |   | $               | 12.64      |         | $          | 13.40         |       | $             | 14.15      |          | $          | 14.91         |       | $             | 15.67      |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   |   |   | $ | 15.67 |   |
| **5**            |   | $               | 13.44      |         | $          | 14.08         |       | $             | 14.73      |          | $          | 15.37         |       | $             | 16.01      |          | $          | 16.66         |       |          |       |           |       |           |       |           |       |                   |       |   |   |   |   | $ | 16.66 |   |
| **6**            |   | $               | 14.23      |         | $          | 14.80         |       | $             | 15.37      |          | $          | 15.94         |       | $             | 16.51      |          | $          | 17.08         |       | $             | 17.65      |           |       |           |       |           |       |                   |       |   |   |   |   |   | $ | 17.65 |   |
| **7**            |   | $               | 15.03      |         | $          | 15.54         |       | $             | 16.06      |          | $          | 16.58         |       | $             | 17.09      |          | $          | 17.61         |       | $             | 18.13      |           | $          | 18.64          |       |           |       |                   |       |   |   |   |   |   |   | $ | 18.64 |   |
| **8**            |   | $               | 15.82      |         | $          | 16.30         |       | $             | 16.77      |          | $          | 17.25         |       | $             | 17.73      |          | $          | 18.21         |       | $             | 18.68      |           | $          | 19.16          |       | $              | 19.64      |                   |       |   |   |   |   |   |   |   | $ | 19.64 |   |
| **9**            |   | $               | 16.61      |         | $          | 17.06         |       | $             | 17.51      |          | $          | 17.95         |       | $             | 18.40      |          | $          | 18.85         |       | $             | 19.29      |           | $          | 19.74          |       | $              | 20.18      |                   | $          | 20.63 |   |   |   |   |   |   |   | $ | 20.63 |   |
| **10**           |   | $               | 17.41      |         | $          | 17.83         |       | $             | 18.25      |          | $          | 18.67         |       | $             | 19.09      |          | $          | 19.52         |       | $             | 19.94      |           | $          | 20.36          |       | $              | 20.78      |                   | $          | 21.20 |   | $ | 21.62 |   |   |   |   |   | $ | 21.62 |   |
| **11**           |   | $               | 18.20      |         | $          | 18.60         |       | $             | 19.01      |          | $          | 19.41         |       | $             | 19.81      |          | $          | 20.21         |       | $             | 20.61      |           | $          | 21.01          |       | $              | 21.41      |                   | $          | 21.81 |   | $ | 22.22 |   | $ | 22.62 |   |   |   | $ | 22.62 |   |
|                  |        |                 |            |              |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |                |            |                |            |                |            |                        |            |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

45

----

 

**Wage ProgressionSchedule - 3rd Year**

 
| **Labor  Grade** |   | **Start****Wage** |       | **1  Month** |       | **2  Months** |       | **3  Months** |       | **4  Months** |       | **5  Months** |       | **6  Months** |       | **7  Months** |       | **8  Months** |       | **9  Months** |       | **10  Months** |       | **11  Months** |       | **12  Months** |       | **Maximum  Wage Rate** |       |
|------------------|--------|-------------------|------------|--------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|----------------|------------|----------------|------------|----------------|------------|------------------------|------------|
|             |   |              | ** ** |         | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |          | ** ** |           | ** ** |           | ** ** |           | ** ** |                   | ** ** |
| **1**            |   | $                 | 10.51      |         | $          | 12.94         |       |          |       |          |       |          |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       | $ | 12.94 |   |
| **2**            |   | $                 | 11.30      |         | $          | 12.62         |       | $             | 13.93      |          |       |          |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   | $ | 13.93 |   |
| **3**            |   | $                 | 12.10      |         | $          | 13.04         |       | $             | 13.98      |          | $          | 14.92         |       |          |       |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   |   | $ | 14.92 |   |
| **4**            |   | $                 | 12.89      |         | $          | 13.65         |       | $             | 14.40      |          | $          | 15.16         |       | $             | 15.92      |          |       |          |       |          |       |           |       |           |       |           |       |                   |       |   |   |   | $ | 15.92 |   |
| **5**            |   | $                 | 13.69      |         | $          | 14.33         |       | $             | 14.98      |          | $          | 15.62         |       | $             | 16.26      |          | $          | 16.91         |       |          |       |           |       |           |       |           |       |                   |       |   |   |   |   | $ | 16.91 |   |
| **6**            |   | $                 | 14.48      |         | $          | 15.05         |       | $             | 15.62      |          | $          | 16.19         |       | $             | 16.76      |          | $          | 17.33         |       | $             | 17.90      |           |       |           |       |           |       |                   |       |   |   |   |   |   | $ | 17.90 |   |
| **7**            |   | $                 | 15.28      |         | $          | 15.79         |       | $             | 16.31      |          | $          | 16.83         |       | $             | 17.34      |          | $          | 17.86         |       | $             | 18.38      |           | $          | 18.89          |       |           |       |                   |       |   |   |   |   |   |   | $ | 18.89 |   |
| **8**            |   | $                 | 16.07      |         | $          | 16.55         |       | $             | 17.02      |          | $          | 17.50         |       | $             | 17.98      |          | $          | 18.46         |       | $             | 18.93      |           | $          | 19.41          |       | $              | 19.89      |                   |       |   |   |   |   |   |   |   | $ | 19.89 |   |
| **9**            |   | $                 | 16.86      |         | $          | 17.31         |       | $             | 17.76      |          | $          | 18.20         |       | $             | 18.65      |          | $          | 19.10         |       | $             | 19.54      |           | $          | 19.99          |       | $              | 20.43      |                   | $          | 20.88 |   |   |   |   |   |   |   | $ | 20.88 |   |
| **10**           |   | $                 | 17.66      |         | $          | 18.08         |       | $             | 18.50      |          | $          | 18.92         |       | $             | 19.34      |          | $          | 19.77         |       | $             | 20.19      |           | $          | 20.61          |       | $              | 21.03      |                   | $          | 21.45 |   | $ | 21.87 |   |   |   |   |   | $ | 21.87 |   |
| **11**           |   | $                 | 18.45      |         | $          | 18.85         |       | $             | 19.26      |          | $          | 19.66         |       | $             | 20.06      |          | $          | 20.46         |       | $             | 20.86      |           | $          | 21.26          |       | $              | 21.66      |                   | $          | 22.06 |   | $ | 22.47 |   | $ | 22.87 |   |   |   | $ | 22.87 |   |
|                  |        |                   |            |              |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |               |            |                |            |                |            |                |            |                        |            |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

46

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**Article XX**

## **Labor Grade Structure**

 
| **Labor  Grade** |   |   |   | **Job Title**                                                        |   |
|------------------|--------|--------|--------|----------------------------------------------------------------------|--------|
| 1                |   | 4108   |   | **Janitor Split  Shift  (8:00 – 4:30)**                    |   |
|             |   |   |   |                                                                 |   |
| 2                |   | 4004   |   | Brush Bells & Oil Parts                                          |   |
|             |   | 4005   |   | Brush Finish/Seam Buff Mail Orders                                   |   |
|             |   | 4007   |   | Cork & Pad                                                       |   |
|             |   | 4008   |   | **Inspection**                                                       |   |
|             |   | 4009   |   | Instrument Cleaner Clarinet & Flute                              |   |
|             |   | 4013   |   | **Specialist Packer**                                                |   |
|             |   | 4015   |   | **Advertising  Stockroom Utility / Packer / Receiver / Stock Clerk** |   |
|             |   |   |   |                                                                 |   |
| 3                |   | 4017   |   | Woodfill                                                             |   |
|             |   | 4020   |   | Body Drill Group B (resonite bodies)                                 |   |
|             |   | 4021   |   | Coining Operator                                                     |   |
|             |   | 4022   |   | Key Trim & Cork Punch                                            |   |
|             |   | 4024   |   | Oboe Knobber                                                         |   |
|             |   | 4025   |   | **Specialist Order  Processor**                                      |   |
|             |   | 4027   |   | Tap & Set Clarinet Posts                                         |   |
|             |   | 4107   |   | **Accessory Shipper**                                                |   |
|             |   | 4115   |   | Body Drill A (wood)                                                  |   |
|             |   |   |   |                                                                 |   |
| 4                |   | 4028   |   | Parts Maker A2 & Deburring                                       |   |
|             |   | 4029   |   | Benchwork Harmony                                                    |   |
|             |   | 4117   |   | Drill Tap C’bore etc. Bb Clarinet Body Posts                    |   |
|             |   | 4110   |   | Jig Key Solder (springhook)                                          |   |
|             |   | 4040   |   | Parts Maker C (ream bench)                                           |   |
|             |   | 4042   |   | **Receiving**                                                        |   |
|             |   | 4046   |   | **Assembly  Coordinator**                                            |   |
|             |   | 4047   |   | Bassoon Driller / Knobber                                            |   |
|             |   | 4105   |   | **Specialized Order  Processor (Export) & UPS**                  |   |
|             |   | 4062   |   | **Stockkeeper**                                                      |   |
|             |   | 4103   |   | **Utility Worker  split shift (8:00 – 4:30)**                   |   |
|             |   | 4104   |   | **Utility Maintenance  Worker**                                      |   |
|             |   | 4106   |   | **Foamer/Instrument  Shipper (Domestic)**                            |   |
|             |   | 4114   |   | Clarinet Key Soldering                                               |   |
|             |   | 4121   |   | Body Prep for Assembly                                               |   |
|             |   | 4122   |   | **Cleaning Operator**                                                |   |
|             |   | 4123   |   | **Downstairs  Inspector**                                            |   |
|             |   | 4125   |   | Flute Body/Key Finishing                                             |   |
|             |   | 4126   |   | Ring & Arm/Cup & Arm/Oboe Key Soldering                      |   |

 

47

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| **Labor  Grade** |   |   |   | **Job Title**                                         |   |
|------------------|--------|--------|--------|-------------------------------------------------------|--------|
| 5                |   | 4063   |   | **CNC Operator**                                      |   |
|             |   | 4064   |   | Clarinet Assembly C (Bb’s)                       |   |
|             |   | 4068   |   | **Millwright Helper**                                 |   |
|             |   | 4071   |   | Jig Key Solder D (harmony)                            |   |
|             |   | 4072   |   | **Shipping / Receiving  Clerk**                       |   |
|             |   | 4102   |   | **Truck Driver/Dock  Person/Receiver**                |   |
|             |   | 4120   |   | Body Work                                             |   |
|             |   | 4124   |   | Flute Body Work                                       |   |
|             |   |   |   |                                                  |   |
| 6                |   | 4074   |   | Clarinet Assembly B (harmony)                         |   |
|             |   | 4075   |   | Flute Assembly                                        |   |
|             |   | 4077   |   | Combination  Lathe & Tap & Set Clarinet Posts |   |
|             |   | 4078   |   | Departmental Utility Worker                           |   |
|             |   | 4082   |   | **Mounting Inspection  / Customer Repair**            |   |
|             |   | 4085   |   | Key Point & Polish                                |   |
|             |   | 4113   |   | Parts Maker                                           |   |
|             |   |   |   |                                                  |   |
| 7                |   | 4086   |   | Buffer B                                              |   |
|             |   | 4087   |   | Finisher F&P (oboe finishing)                     |   |
|             |   | 4088   |   | General Machine (Dept. 1)                             |   |
|             |   | 4089   |   | **General Machine  (Dept. 25)**                       |   |
|             |   | 4085   |   | Parts Buffer C                                        |   |
|             |   | 4091   |   | **Testers**                                           |   |
|             |   |   |   |                                                  |   |
| 8                |   | 4092   |   | Mounter                                               |   |
|             |   | 4093   |   | **Coin Die Setter**                                   |   |
|             |   |   |   |                                                  |   |
| 9                |   | 4094   |   | **Millwright**                                        |   |
|             |   | 4119   |   | **Selmer Paris  Technician**                          |   |
|             |   |   |   |                                                  |   |
| 10               |   | 4094   |   | **Electronic  Technician**                            |   |
|             |   |   |   |                                                  |   |
| 11               |   | 4096   |   | **Tool & Die  Maker**                             |   |

 

----

***   Bold - Non-Incentive**

 

48

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**Article XXI**

# **Rates of Pay**

## **For Incentive Employees**

 
| **Condition**                                                                                                                          |   | **Rate**                                                                   |   | **Time (actual and earned  hours) included in  incentive calculation** |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------|
| Holidays (Article X, Section 7[a], [h] and [i])                                                                                        |   | Employee’s  previous quarter’s average                           |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Vacations (Article X, Section 1)                                                                                                       |   | Rate  in current calculation                                               |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Vacations – Alternative calculation (Article X,  Section 5)                                                                       |   | Higher  of vacation % or 120% of applicable incentive base rate x 40 hours |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Jury Duty (Article IX, Section 7)                                                                                                      |   | Employee’s  previous quarter’s average                           |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Bereavement (Article IX, Section 8)                                                                                                    |   | Employee’s  previous quarter’s average                           |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Paid Union Time (Article III, Section 3)  (Article XII, Section 8) and all other including Health and Safety  representative and LUTSP |   | 125%  of applicable maximum incentive base rate                            |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Assigned to train                                                                                                                      |   | 127  1⁄2% of applicable incentive base rate                             |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Trainee (progression schedule)                                                                                                         |   | Non-incentive  until qualified per wage progression                        |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Assigned to un-rated experimental/prototype                                                                                            |   | 125%  of applicable incentive base rate                                    |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Company-called meetings; hearing test; United  Way                                                                                     |   | 125%  of applicable incentive base rate                                    |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Employee payment during Disciplinary meetings                                                                                          |   | Applicable  incentive base rate                                            |   | No                                                                     |
|                                                                                                                                   |   |                                                                       |   |                                                                   |
| Employee assigned to administer First Aid                                                                                              |   | 125%  of applicable base rate                                              |   | No                                                                     |

 

49

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| Report In Pay                                                                                                                                                                                                |   | Applicable  incentive base rate (guarantee pay for time not worked)       |   | No     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Call In Pay                                                                                                                                                                                                  |   | Applicable  incentive base rate (guarantee pay for time not worked)       |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Inventory                                                                                                                                                                                                    |   | Higher  of previous quarter’s plant average or $17.00/hour           |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Pay for Work Related Injury                                                                                                                                                                                  |   | Applicable  incentive base rate                                           |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Rework/repair/returned goods                                                                                                                                                                                 |   | Reworked/repaired  on standard                                            |   | Yes    |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| •        Own fault (Article XIII Section 10) (SHP)                                                                                                                   |   | • Incentive rate  (special);                                         |   | Yes    |
| •        Not employee fault                                                                                                                                          |   | • 125% of employee's incentive  base rate                            |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| New machines, products not rated [Article XIII  Section 15(h)] (SHP)                                                                                                                                         |   | 120%  of applicable incentive base rate                                   |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Downtime [Article XIII Section 15 (i)] (SHP)                                                                                                                                                                 |   |                                                                      |   |   |
| •        First six (6) minutes of each occurrence  (Max 2 for occurrences that equal or  exceed six (6) minutes and all occurrences less than six (6) minutes.) |   | On  standard                                                              |   | Yes    |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| •        Time in excess of first six (6) minutes (And  all time for downtime occurrences exceeding six (6) minutes after first two  occurrences)                     |   | Applicable  incentive base rate                                           |   | No     |
|                                                                                                                                                                                                         |   |                                                                      |   |   |
| Off standard conditions substantially affecting  performance (Article XIII Section 12) (SHP)                                                                                                                 |   | • Supplemental  standard**or**                                       |   | Yes    |
|                                                                                                                                                                                                         |   | • Applicable incentive base rate; 120% of  applicable incentive base |   | No     |

 

50

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|                                                                             |   | rate  if no supplemental standard within 48 hours                                                                                                        |   |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                             |   |                                                                                                                                                     |   |   |
| Un-rated work within job classification  (Article XIII Section 5) (SHP)          |   | Applicable  incentive base rate                                                                                                                          |   | No     |
|                                                                             |   |                                                                                                                                                     |   |   |
| Temporary assignments to another job  classification (Article VIII, Section 14)  |   |                                                                                                                                                     |   |   |
|                                                                             |   |                                                                                                                                                     |   |   |
| •       Incentive to incentive                |   | Incentive  earnings; higher of two (2) base rates for calculation; guarantee rate of  120% of the employee’s incentive base rate                    |   | Yes    |
|                                                                             |   |                                                                                                                                                     |   |   |
| •        Incentive to non-incentive**/        |   | Non-incentive;  higher of two (2) base rates; 125% of the employee’s incentive base rate if  employee is deprived of incentive earnings opportunity |   | No     |
|                                                                             |   |                                                                                                                                                     |   |   |
| •       Non-incentive to incentive            |   | Incentive  earnings; higher of two (2) base rates for calculation and guarantee rate                                                                     |   | Yes    |
|                                                                             |   |                                                                                                                                                     |   |   |
| •       Non-incentive to non – Incentive |   | Higher  of two base rates                                                                                                                                |   | No     |

 

----

**/                              The125% rate would only be paid if the assignment was for the “Company’sconvenience” and the employee is deprived of incentive earnings opportunity inhis regular job classification.  Forexample, assignment of an employee from his regular job classification toanother job classification during a downtime situation or “out of schedule” (noscheduled production for that job) would not warrant the 125% payments.

 

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**EQUAL EMPLOYMENT OPPORTUNITY**

 

TheCompany recognizes the need to create a favorable work environment in which allemployees, regardless of race, color, national origin, sex, age, physicalhandicap, or religious affiliation, can enjoy equal opportunities in theiremployment relationship with the Company. (Employees are defined as anyone whois employed by the Company.)

 

Itis the Company’s policy to employ, retain, promote, and terminate all employeesand job applicants without regard to any individual’s sex, race, religion,origin, age, physical handicap, or any other factor prohibited by law.

 

Allemployees have the right to work in an environment free from all forms ofdiscrimination and conduct which can be considered harassing, coercive, ordisruptive, including sexual harassment. Sexual harassment does not refer to occasional compliments of a sociallyacceptable nature.  It refers tobehavior that is not welcome, which is personally offensive, which reducesmorale, and which, therefore, interferes with work effectiveness.  No employee, either male or female, shouldbe subject to unsolicited and unwelcome sexual overtures or conduct, eitherverbal or physical.  The Companystrictly prohibits sexual harassment of any kind.

 

Itis prohibited for any employee to refuse to hire, train, or promote anyemployee or applicant, or to discipline or dismiss any employee on the basis ofrace, national origin, age, sex, religious beliefs, physical handicap, or anyother basis prohibited by law.

 

Itis prohibited for any employee to make statements or jokes, or commit actsregarding a particular race, ancestry, sex, or religion that are derogatory,offensive, prejudicial, or harassing.

 

Itshall be the responsibility of all employees to abide by and carry out theletter, spirit, and intent of the Company’s equal opportunity commitment.

 

Anyemployee who feels that he or she has been subjected to discrimination orharassment because of sex, race, religion, national origin, age, physicalhandicap, or any other basis prohibited by law or by this policy, should reportthe complaint to his or her supervisor, plant or general manager, or personneldepartment who will investigate the complaint in a confidential manner.

 

Anemployee found to be in violation of the Company’s policy may be subject todisciplinary action, up to, and including, immediate discharge

 

52

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**ABSENTEEISM/TARDINESS**

 

1.               The intent of this program is to establish afair, consistent, and reasonable approach for absenteeism. The majority of ouremployees are conscientious and follow good work habits. Unfortunately, thereare a few individuals who abuse the system, and for this reason we must have aprocedure to administer discipline on a fair basis.

2.               **ExcusedAbsences –**Absences forthe following reasons shall be considered excused absences:

A.           Vacation

B.             Jury Duty

C.             Death in immediate family

D.            Job Related Injury

E.              Approved Leave of Absence

## **F.**              Proven Illness -  A proven illness must be supported by adoctor’s (M.D., D.D.S or  D.O.) officestatement or a written excuse stating that the employee was seen by the doctorand the dates the employee was unable to work.

G.             Union Activity

H.            Lack of Work

I.                 Physical examination for military duty

J.                Proven emergency, accident and immediatefamily emergency

K.            Layoff

L.              Prior excused absence approved by humanresources

M.         Court appearance will be excused unless they are due to illegal activityby the employee

 

**NOTE:** If an employee has made a commitment to workovertime by either written or verbal communication with his supervisor and doesnot work the overtime, the absence will be excused or unexcused in accordancewith the Attendance Policy.

 

3.               **Reportingof Absences**

a)              If an employee is absent for any reason,he/she must call the Human Resource no****later two(2) hours after the start of his/her shift or the absence willbe unexcused.

b)             An employee missing two (2) consecutive dayswithout calling in and not reporting to work on time the 3rd daywill be terminated.

4.               **Tardiness/LeavingEarly**

a)              Tardiness is the failure of an employee toreport to work on time at the beginning of his/her scheduled shift or after thelunch period.

b)             Leaving early is leaving the building beforethe beginning of the lunch period or before the end of the shift.

5.               **ProgressiveDisciplinary Procedure**

Step 1:  Written Warning

Step 2:  Written Warning

Step 3:  Final Written Warning

Step 4:  Discharge

 

53

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6.               **UnacceptableAbsenteeism/Tardy Levels**

a)              Tardiness and leaving early will not beexcused except for those items listed in****paragraph #2, Excused Absences.

 

When an employee exceeds the levels of absenteeism and/ortardiness/leaving early as listed below, they shall receive the disciplinarysteps listed below:

1)              Tardy and/or leave early – 10 times in theattendance year – Written Step

2)              Tardy and/or leave early – 15 times in theattendance year – Written Step

3)              Tardy and/or leave early – 20 times in theattendance year – Final Written Warning

4)              Tardy and/or leave early – 25 times –Discharge

b)             Absenteeism

1)              An employee who misses 16 unexcused hours inthe attendance year shall receive****awritten step.

2)              An employee who misses 32 unexcused hours inthe attendance year shall receive a written step.

3)              An employee who misses 48 unexcused hours inthe attendance year shall receive a final written warning.

4)              An employee who misses 16 unexcused hourswhile on probation will be discharged.

7.               Anyone given a final written warning forabsenteeism will be placed on one year’s probation beginning with the firstworking day following the final written warning.

8.               The attendance year is April 1st throughMarch 31st of each year.

 

Disciplinarysteps will be issued within ten (10) working days of the infraction.

 

Each step will become part of the employee’spersonnel record except that no step will remain in the employee’s personnelrecord if an additional step has not been added within six (6) months – Item 7being the only exception.

 

54

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# **ADMINISTRATIVERULES**

 

These rules have beenincorporated to provide guidance in administering the Working Agreement.

 

**MISCELLANEOUS**

 

The Company agrees to replaceOSHA approved safety glasses if they are broken while the employee is workingon his job.

 

**Skilled Trades**

The Company agrees to replacetools and gauges etc. for skilled trades, that are broken or worn from use onthe job, if in fact they bring them to management for review.  We also agree to tuition reimbursement for jobrelated training.  Must apply for andreceive prior approval.

 

# **Letter ofUnderstanding**

 

## **Re:**                             V- CAP

This letter describes ourunderstanding reached during the 2000 negotiations concerning deduction forvoluntary political contributions from employee paychecks.

 

The International Union willfurnish the Company, for each employee for whom a deduction is to be made, anAuthorization Card signed by the employee containing the following:

(a)  Name and Address

(b)  Plant

(c)  Department Number

(d)  Social Security Number

(e)  Local Union Number

(f)  Dollar/Cent amount to bededucted each period. (minimum $1.00)

(g)  Clock Number

 

Cards that cannot be processedwill be returned to the International Union for correction.

 

Commencing January 1, 2001, theCompany will make authorized deductions from checks for the third pay periodending in each month, and continuing for the term of the contract while theauthorization is in effect.

 

A deduction not made will notbe carried forward.

 

In the month followingeach deduction, the Company will issue one or more checks (one for each LocalUnion payable to U.A.W. V-CAP, in care of International Union, for deductionsmade in the preceding month.

 

55

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A computer diskette listingwill also be forwarded which will indicate the name, address, payroll locationcode, Local Union number, department number, full social security number, andthe amount deducted for employees whose deductions are included in thecheck.  Year-to-date deduction totalswill be included in the report.

 

The Company will pay the actualcosts of additional setup and programming, of general administration, computerand machine time, and of processing new authorization changes or cancellations.

 

Employees who wish to canceltheir authorizations for payroll deductions will sign a card supplied by theUnion for that purpose.  Refunds will bethe responsibility of the Union.

 

The International Union willcollect and forward as one transmittal all signed Authorization Cards andCancellation Cards for the initial processing and for each quarter toManagement.

 

An Authorization Card that isnot revoked by the employee shall continue in effect upon reinstatement toactive status in the same bargaining unit provided the employee’s record isstill being maintained by that payroll department.

 

The Union will indemnify andhold harmless the Company from any and all liability or claims arising fromadministrative error resulting from the deductions provided for in thisagreement.

 

# **Letter of Understanding for the term of this contract**

Inregards to employees who are in the plant(s) under a training progression asspecified in****2000Collective Bargaining Agreement and are laid off prior to completing theirtraining, will be granted the remaining training if they are recalled.  This only applies to employees in an activetraining progression that have achieved a minimum of 50% efficiency in theprogression.

 

Foremployees with less than 50% efficiency during the progression period andemployee’s on layoff with recall to a job they are not qualified on will beextended recall rights to the last job they were qualified.

 

56

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**JOINT BOARD OF ADMINISTRATION**

**ForHourly Pension Plan**

 

***Joint Board ofAdministration.***  There shall be established a Joint Board ofAdministration (“Joint Board”) consisting of four members (“Members”), two ofwhom shall be appointed by the Company and two of whom shall be appointed bythe Union (one representing each Local Union). Each Member shall serve until he or she shall resign, become incapableof acting, die, or be removed.

* *

***Removal of Members.***  The Companyor Union, at any time, may remove a Company Member or Union Member,respectively, and appoint a replacement to fill any vacancy on the JointBoard.  The Company or Union shallnotify the other party in writing before the appointment of a replacementMember shall be effective.

* *

**Quorum and Voting.**  To constitute a quorum for the transactionof business, the presence of two Members of the Joint Board shall be required,at least one of whom shall be a Company Member and at least one of whom shallbe a Union Member.  At all meetings ofthe Joint Board, the Union Members present shall have, in the aggregate, atotal of one vote to be cast on behalf of the Union, and the Company Memberspresent shall have, in the aggregate, a total of one vote to be cast on behalfof the Company.

 

**Duties and Functions.**  The Joint Board shall have the followingduties and functions:

(a)          Tohold meetings at such times and places as the Members shall determine to benecessary to perform the duties and functions of the Joint Board.

(b)         Toreview, at the request of a Participant, the number of years of service, theage, and the calculation of the amount of pension due to the applicant.

(c)          Toset up procedures for reviewing applications for pension submitted to the JointBoard for review.

(d)         Toreceive copies of the Annual Report (Form 5500) of the Plan for each year thatthe Collective Bargaining Agreement is in effect and to review the contents ofthe Annual Report.

(e)          Toconsider such other matters relating to the Plan that may come before the JointBoard.

 

**Chairman andSecretary.**  TheJoint Board shall select one of its members who shall serve as Chairman and Onewho shall serve as Secretary.  If theChairman is a Union Member,

 

57

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the Secretary shall be aCompany Member, and vice versa.  TheChairman shall preside at meetings of the Joint Board.  The Secretary shall keep records and minutesof all meetings and proceedings of the Joint Board.  The Secretary shall send copies of such minutes and records toall of the Members of the Joint Board.

 

**Adoption of Rules.**  The Joint Board may adopt such rules as itmay deem necessary for the proper performance of its duties.

 

**Personal Liability.**  To the extent permitted by law, Members ofthe Joint Board shall not incur any personal liability in connection with anyact done or omitted to be done by them in good faith.

 

58

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**401-K Loans**

 

**•****                 **Aparticipant can have one loan

 

**•****                 **Theparticipants can borrow up to 50% of their vested account balance, not toexceed $50,000.

 

**•****                 **Theminimum loan amount is $1,000.

 

**•****                 **Interestrate is based on 1% above prime rate and will remain in effect for the life ofthe loan.

 

**•****                 **Loanrepayments must be payroll deducted each payday and transmitted to Bankfacility along with the deferrals.

 

**•****                 **Theinterest is credited back to the participant’s account on a prorated basis totheir investment funds.

 

**•****                 **Aparticipant can pay the loan off in whole at any time.

 

**•****                 **Nopartial prepayments are allowed.

 

**•****                 **Thereis a **$125**origination fee, which is deducted for the loan check.

 

59

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**To:  Bargaining Committees – Local 612**

The Company agrees to provideemployees with a check for delayed S&A or worker’s compensation paymentsupon request from the employee and/or Union. A delayed payment occurs when the employee has not received an S&Aor worker’s compensation check within 18 days of filing the appropriatepaperwork.

 

60

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**Product Purchase**

 
| **Form#** 100.8 | **Date Effective**:  02/17/98 | **Revision Date:**  04/01/03 |
|-----------------|------------------------------------|-----------------------------------|

 

**Purpose:**

 

To provide our employees withan opportunity to purchase products manufactured or distributed by the Companyat a discounted price.

 

**Eligibility:**

 

Full-time employees or retireesare eligible to buy “Conn-Selmer products” for their own personal use or forthese of their spouse, children and grandchildren.

 

**General**

 

1)              Theterm “Conn-Selmer products” means any product manufactured or distributed bythe Company and appearing in a current catalog and retail price list.

 

2)              Instrumentpurchases are limited to one per year. Exceptions can be approved by an office of the Company.

 

3)              Theemployee purchase price will be:

 

a)              Maximumallowable discount* on all new products.

 

b)             25%discount* on wearables

 

----

*Discounts are from retail prices.

 

4)              Employeesales, including the appropriate sales tax and any shipping and/or handlingcharges will be for case, check or credit card at the time of delivery.

 

5)              Allsales are final except for warranty problems or wearable that are the wrongsize.

 

6)              SeeAPPENDIX A for procedure to sell to employees or retirees.

 

61

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**Article XXII**

# **DURATION**

 

**Section 1**

Nothingin this agreement shall permit the Union or any of its members to assume thatthey have any authority to officiate in management or in a supervisorycapacity.  If management or the Union orany of its members violate the terms of this agreement, it shall be considereda gesture of bad faith and subject to immediate correction through the establishedbargaining procedure.  The policy of manufacturing,the methods and schedules of production, including means and processes ofmanufacturing, are the prerogative of the Company.  It is agreed that the Company will not use this prerogative forthe purpose of discrimination against the Union.

 

TheCompany will notify the Union sixty (60) days in advance in writing when itbecomes necessary to withdraw production operations or functions from a plantunder the Union’s jurisdiction.  TheCompany will notify the Union ninety (90) days in advance in writing of closinga plant under the Union’s jurisdiction.

 

**Section 2**

Thisagreement shall remain in force through 12:00 a.m. (midnight) March 31, 2006and shall automatically renew from year to year unless written notice of desireto terminate or to modify any portion of the terms is given by either party tothe other at least sixty (60) days prior to the expiration of such annualperiod.  Amendments may be made fromtime to time by agreement.

 

Inwitness whereof, the employer and the union have hereto caused these Articlesof Agreement to be executed this 1st day of April 2003.

 
| Conn-Selmer,  Inc.    |   | Local 612          |   |
|-----------------------|--------|--------------------|--------|
|                  |   |               |   |
| /s/ Robert  Britton   |   | /s/ Beverly  Green |   |
| Robert  Britton       |   | Beverly  Green     |   |
|                  |   |               |   |
| /s/ Edward  H. Chesko |   | /s/ Nancy  Cook    |   |
| Edward H.  Chesko     |   | Nancy Cook         |   |
|                  |   |               |   |
| /s/ Michelle  Hammer  |   | /s/ Diane  Babcock |   |
| Michelle  Hammer      |   | Diane  Babcock     |   |
|                  |   |               |   |
| /s/ Dennis  Hanson    |   | /s/ Joyce  Miller  |   |
| Dennis  Hanson        |   | Joyce Miller       |   |
|                  |   |               |   |
| /s/ Doug  White       |   | /s/ Ray  Sargent   |   |
| Doug White            |   | Ray Sargent        |   |
|                  |   |               |   |
|                  |   | /s/ Lori  Randles  |   |
|                  |   | Lori Randles       |   |

 

62

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| International  Representatives:          |
|------------------------------------------|
|                                     |
| /s/ Terry  Thurman                       |   | /s/ Larry D.  Banghart |   |
| Terry  Thurman, Director of Region 3 UAW |   | Larry D.  Banghart, International Representative |

 

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