**Exhibit10.1**

 

**AGREEMENT**

 

between

 

**CONN-SELMER,INC.**

 

and

 

**U.A.W.LOCAL 2359**

 

February 21, 2005

 

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**COLLECTIVEBARGAINING AGREEMENT**

 

THE AGREEMENT, made andentered into as of the 21st day of February, 2005 by and betweenCONN-SELMER, INC., whose office is located at 34199 Curtis Boulevard, Eastlake,Ohio, (hereinafter designated as the Company) and U.A.W. Local 2359(hereinafter designated as the Union).

 

**NONDISCRIMINATION.**  The company and the union are committed tothe optimum utilization of human resources and equal opportunity.  Job applicants and employees are evaluated onthe basis of job qualifications – not age, disability, gender, national origin,race, religion, or any other legally protected group characteristic.  The company and the union are committed tomaintaining a place of employment that is safe, productive, and free from anyform of harassment or violence.  Thecompany and the union each agree that they shall not discriminate against anyemployee who exercises any legally protected rights.  The company will not discriminate against anyemployee because of membership in the union.

 

**ARTICLE I - MANAGEMENT**

 

**Section A.**Subject to the provision of this Agreement, it is expressly understood andagreed that the right to manage the Plant and direct the work force is vestedexclusively in Management and that all rights not specifically modified in theAgreement are retained by the Company including the rights to hire, suspend, ordischarge for proper cause, or transfer, and the right to relieve employee fromduty because of lack of work, or for any other legitimate reason are vestedexclusively in the Company, provided that this will not be used for purpose ofdiscrimination against any member of the Union.

 

**ARTICLE II - RECOGNITION**

 

The Company recognizesthe Union as the sole and exclusive bargaining agency for all its employees(except supervision, plant protection, and office workers) with respect torates of pay, working conditions and hours or days of work.

 

**ARTICLE III - REPRESENTATION**

 

**Section A. UNION SHOP COMMITTEE.**The Union shall be represented by a Shop Committee of not more than five (5)members nor less than three (3) members, all of whom shall be employees of theCompany, shall have completed their probationary period with the Company asherein provided, and shall be chosen by members of the Union.

 

The Union Shop Committee shall negotiate in the manneras hereinafter provided with the Company on grievances that may arise in thePlant.  International Union Officials maybe called in by the Shop Committee to assist in these negotiations.

 

**Section B. DEPARTMENTAL STEWARDS.**The Union, in addition to the Shop Committee, shall be represented byDepartmental Stewards who shall be employees of the Company, having completedtheir probationary period, and shall be chosen by and from members of the Unionon a

 

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basis of one (1) Stewardfor each Supervisor, with the assurance of a minimum of one (1) Steward foreach work shift scheduled by the Company.

 

In the application of the above, it is agreed, theUnion shall be entitled to a Steward for each designated Department or group ofDepartments.

 

**Section C. COMMITTEE CHANGES.**The Union agrees to keep the Company informed at all times of who constitutesthe Shop Committee and the Stewards’ Committee, also when changes in saidCommittees are made.

 

**Section D. DISCIPLINARY ACTION:SHOP COMMITTEE AND STEWARDS.** A twenty-four hour grace periodwill be given to the Shop Committee and Department Stewards when they arepersonally involved in disciplinary action that warrants suspension ordischarge, the Chairman will be advised of disciplinary action forinvestigation before disciplinary action takes effect.

 

**ARTICLE IV - NORMAL HOURS ANDOVERTIME**

 

**Section A. NORMAL WORK WEEK.**For shop employees which may be worked without payment of overtime, for allhourly rate employees shall consist of five (5) days, Monday through Friday, ofeight (8) hours each.

 

**Section B. TIME AND ONE-HALF.**All work performed in excess of eight (8) hours during any regular working dayor work performed on Saturday, outside of the week as above defined, shall bepaid for at the rate of time and one-half.      Employees shallreceive time and one-half for all overtime worked.  The pay to be computed on the average hourlyearnings for the week the overtime is worked.

 

**Section C. OVERTIME.**Employees shall be paid time and one-half for all time worked prior to theirscheduled starting time or after their scheduled quitting time, once they havecompleted eight (8) hours.

 

An employee’s scheduled starting and quitting time asscheduled on Monday for the week shall be considered the employee’s scheduledstarting and quitting times for the remainder of the work week unless mutuallyagreed upon between the Company and the Union.

 

**Section D. LATENESS.**  It has been established that if an employeeis going to be late for work, he/she must call his/her Supervisor or leave adetailed message on the voice message system and advise him/her at what timehe/she will arrive.  This must be donewithin two (2) hours from starting time.

 

This is necessary in order for the Supervisor toorganize the work load in his/her department so production is not lost for theday.

 

Should he/she not call in and advise the Supervisorthat he/she is going to be late, he/she will not be allowed in the Plant two(2) hours from starting and will be marked absent for the day.

 

This rule shall not apply if the weather is a factorin preventing the employee from arriving on schedule.

 

**Section E. ABSENCE.**  It has been established that if an employeeis going to be absent from work, they must call their Supervisor, HumanResources Resources, or leave a detailed message

 

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on the voice messagesystem and advise them that they will be absent.  This should be done within two (2) hours fromstarting time.

 

1.             Oneday sickness will not be excused, unless:

 

a)             Physician’sslip is presented by employee upon return to work.

 

b)            Employeewas sent home the day before because of obvious illness, and return onfollowing day doubtful.

 

2.             Twoday sicknesses will not be excused, unless physician’s slip is presented byemployee upon return to work.

 

3.             Employeesreturning to work after missing three (3) or more days because of illness willnot be permitted to work without physician’s slip stating employee is able toperform regular duties.  Physician’s slipmust be presented by employee upon return to work.

 

4.             Absencefrom work for reason other than illness will not be excused unless employeereceived permission from the Human Resources Manager or the Plant Manager (ortheir alternate as needed) prior to absence. See Section F.  LEAVE OFABSENCE.  Court and legal appointmentsthat are related to an employee’s infraction of the law are not excused “wholeday” absences.  All court and legalappointments, handled on a reporting late or an out early basis, will beexcused (with advance notification, provided documentation is submitted uponreturn to work).  “Whole day” absence,for court and legal appointments that are not related to an employee’sinfraction of the law, will be excused (with advance notification, provideddocumentation is submitted upon return to work).

 

5.             Deathin family, jury duty, etc. will be excused absences once verification ispresented.

 

6.             “Emergencies”that occur between work shifts will be handled on an individual basis.  The Human Resource Manager must be consultedbefore excusing absence.

 

7.             Previouslyscheduled overtime for a Saturday and/or Sunday (hereinafter called “weekendovertime”) will be assigned in accordance with the established procedure,however, any unexcused absence will fall under the following guideline:

 

a.             Allunexcused weekend overtime missed will be charged as hours paid.  (i.e., 5 hrs. o.t. = 7 1/2 missed.)

 

8.             Anyjail time preventing an employee’s ability to report to work will not be viewedas an excused absence.  The Company willnot issue any leaves of absence towards time spent in jail.  Each consecutive day in jail will be chargedagainst the 16 Hour Policy (Infractions of a Minor Nature, #1).  The number of days permitted will depend uponthe number of warnings the employee’s personnel record can support, to amaximum of nine (9) days.  Any time injail beyond what the employee’s record can support will lead to dismissal.  Should the employee not

 

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be convicted, all jailtime will not be charged against the 16 Hour Policy or the 60 Hour Policy.

 

**Section F. LEAVE OF ABSENCE:**

 

1.             Anemployee may be granted a leave of absence, by the company, upon writtenrequest to a Supervisor for a period not to exceed two (2) calendar weeks inany one year, for a minimum of two (2) days (single days will only be approvedwhen combined with remaining vacation days, or with a personal holidayrequest), but will not be granted a leave to work at any other job or business.Earned but unused Vacation days must be used first.  Insurance and Hospitalization benefits willcontinue.  Any grievance arising out ofthe application of the provision shall be subject to negotiation between theCompany and Union.

 

Examples of such absences are personal business, courtappearances, etc.  Company may requestverification.

 

2.             Byagreement between the Company and the Union Shop Committee, employees may begranted a leave of absence for a definite period of time not to exceed one-half(1/2) their seniority length and in no event to exceed one (1) year without prejudiceto seniority for one or more of the following reasons:

 

a)             Deathor serious illness in family.

 

1)     Referto Article IV., Section F., #10.

 

b)            Personalaffairs involving legal settlement.

 

During such leave of absence, the employee shall onlyaccumulate seniority and all benefits are temporarily withheld until employeereturns, at which time the benefits will be reinstated.

 

3.             Employeesshall be granted a leave of absence for illness or injury causing confinementto a Hospital or at home under physician’s care.  Provided a physician’s certificate ispresented and proof of continued disability is supplied as requested, upon thebasis of the following schedule:

 

a)             Upto four (4) years seniority.  A period oftime equal to one-half (1/2) their seniority.

 

b)            Four(4) or more years seniority.  A period oftime equal to their seniority.

 

c)             Referto Article IV., Section F., #10.

 

4.             Thiscould also include outpatient treatment as prescribed by an attending physicianwhich qualifies under the medical plan.

 

5.             Asper Contract Article XIII, Section A., #3: See Contract for Benefit schedule of Sickness and Accident WeeklyBenefits.

 

6.             “S& A Benefit Medical” forms may be obtained from the Human Resources office.

 

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7.             Leaveof absences, personal/medical, if approved, will not count toward hoursincluded under the Excessive Absentee Policy.

 

8.             A“Leave of Absence” form may be obtained from Supervisor or the Human Resourcesoffice.

 

9.             Duringsuch leave of absence due to personal injury or illness, the employee shallaccumulate seniority and all Sickness and Accident payments (based upon thedirection of the third party administrator) and Life Insurance benefits (basedupon successful filing of a waiver of premium) shall continue for their defined term. During such leave for Workers’ Compensation, Life Insurance benefitsshall continue for their defined term (based upon successful filing of a waiverof premium).  Coverage ofHospitalization/Dental Benefits, for Sickness and Accident Leaves, are paid fora period of six (6) months.  COBRA willbe effective after the initial six (6) months at a subsidized rate equal to thenormal payroll amount for an additional six (6) months.  Employees, for both Sickness and Accident andWorkers’ Compensation Leaves, are responsible for Hospitalization/DentalContribution amount during leave period. Benefit levels and contributions will be consistent with the currentcollective bargaining agreement. Contributions must be paid to the designated third party administratoron a monthly basis, prior to the next effective month due, otherwise benefitswill be cancelled (continuation could otherwise be made available through theterms defined by COBRA).

 

10.           Familyand Medical Leave Act (FMLA)

 

An employee, under theterms specified for Family and Medical Leave, with twelve (12) months ofservice and at least 1,250 hours worked, may be granted up to twelve (12) weeksof unpaid leave based on a twelve month rolling calendar for the followingreasons:

 

1.             Thebirth or placement for adoption or foster care of a child. Leave taken for thebirth of a child or the placement of a child for adoption or foster care mustbe a consecutive twelve (12) week period completed within twelve (12) monthsafter the date of birth or placement.

 

2.             Theneed for the employee to care for a spouse, parent, child with a serious healthcondition.

 

3.             Theemployee’s own serious health condition.

 

Additionally, medicalcertification and continued documentation for intermittent absences will berequired for such absence in accordance with the Act, and the regulationspromulgated thereunder.

 

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A.            Statusof Accrued Paid Time

 

If the leave is for thecare of a spouse, parent, and/or child the employee may be required to take anyremaining vacation days at the beginning of the FMLA leave.

 

If the need for FMLA isforeseeable (such as planned surgeries or normal births), thirty (30) daynotice is requested.  If the need forFMLA is unforeseeable (such as serious injury or illness, or a prematurebirth), you must notify the company as soon as possible, and in no event, morethan two (2) days after knowing of the need for a leave.  Formal notice is further accomplished by submittinga FMLA Application Form.  FMLAApplication Forms must be submitted within fifteen (15) calendar days of areturn from an unforeseeable serious health condition for either the employee,or a defined family member, or the absence will not be regarded as FMLA andwill be subject to the terms of the attendance rules.

 

B.            Statusof Benefits

 

Health care coverages (asdefined by COBRA) will continue under the same terms and conditions as whileactively at work.  Employee will beresponsible for continuing to make contributions to these plans while on leave.

 

FMLA leave will notconstitute a break in the employee’s record of continuous service and theperiod of such leave of absence shall be included in the records as continuousservice.  Employees, following FMLAleave, will be restored to their original job and pay rate.  The only exception would be changes thatwould have affected the employee if he / she had not gone on leave.

 

These terms are subjectto review if the corresponding FMLA regulations are revised or changed.

 

**Section G. OUT EARLY:**

 

1.             Employeeswill not be permitted to leave work early, and will be charged with lost timeexcept for the following reasons:

 

a)             Lackof work.

 

b)            Obviouslyill and unable to continue to work.

 

c)             Emergencycall from family, requiring employee to leave. Verification may be requested.

 

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d)            Workers’Compensation injury or illness.

 

**WORK SCHEDULE** -The employee is to be notified on Thursday, by 12:00 p.m. if the work schedulefor the coming week is going to be changed, so that the employee has enoughtime to make arrangements if necessary.

 

If a department is advised ahead of time as requiredabout the schedule change, they must work eight (8) hours before overtime ispaid.

 

Only when the Company changes the schedule out oforder does an employee receive overtime for the time worked prior to setschedule or time after set schedule no matter how many hours they work thatday.

 

**OVERTIME -** TheCompany agrees to seek volunteers for available overtime by priority ofclassification, qualification, and overall seniority.  For the purpose of maintaining efficientoperations and complying with customer requirements, the Company shall have theright to institute daily overtime or to extend the work week.  Lacking enough volunteers, it shall assign asmany junior qualified employees as needed in that classification or departmentto perform the work.  In the applicationof this provision, no employee shall be required to work in excess of ten (10)overtime hours per week and not for more than three (3) consecutive weeks.  A list of employees scheduled for Saturdayovertime will be solicited by 11:15 a.m. (when feasible), and will be posted by2:45 p.m. Thursday, and any disputes arising from the posted list must becommunicated before 2:45 p.m. Friday, otherwise a grievance for a seniorityclaim may not be submitted.

 

**Section A. DOUBLE TIME.**Work performed on Sundays shall be paid for at the rate of double time.  Work performed on the thirteen (13) Holidaysin 2005, and the thirteen (13) Holidays in 2006, and the thirteen (13) Holidaysin 2007, as identified in Article VII - Section C, shall be paid for at therate of double time in addition to Holiday Pay as stated in Article VII - SectionC.

 

**Section B. NO WORK.**When employees report for work, not having been properly notified in advancethat there will be no work, and prevented from performing their jobs that daythrough no fault of their own, they shall be guaranteed four (4) hours work orfour (4) hours pay at their straight time day rate if no other work isavailable for assignments; in no event shall they be paid for less than four(4) hours.

 

However, this section shall not apply if the Companyis unable to operate its plant or any portion thereof due to an act of Nature,utility failure, mechanical breakdown, government restriction, fire, flood,riot, civil commotion, or labor dispute, unless the mechanical breakdown orfire is caused by the company’s negligence.

 

**Section C. NOTIFICATION OFADDRESS CHANGE.** It is the responsibility of each employee tokeep the Human Resources Department informed of current address and telephonenumber.  Attempts to reach the employeeat the telephone number currently listed in the Human Resources Department’sfiles shall constitute proper notice.

 

**Section D. CALL BACK.**Any employee being called back to perform a task shall be paid no less thanfour (4) hours at straight time pay or which ever is higher, in the event ofovertime or a Holiday.

 

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**Section E. TIME AND ATTENDANCE,LABOR REPORTING.** Each employee shall be required to enter hisor her own attendance and labor transactions into the data collectionsystem.  Employee shall be responsiblefor the accuracy of the count and time entered for all transactions.  Employees should be at their appointed placeof work when signal is given for work to begin and should remain at their workuntil signal is given to quit.

 

**ARTICLE V - SENIORITY**

 

**Section A. SENIORITY.**  Will commence on the first day workedregardless of when employment was first offered by any Company representative.

 

**Section B. PROBATIONARY PERIOD.**All new employees shall be considered as on probation for a period of three (3)months accumulated service, except for excusable absence, after starting dateand during such period, shall not be entitled to any seniority rights under theprovisions of this Article.  Theperformance of any new employee will be evaluated on each one (l) monthanniversary date for the subsequent three (3) month probation.  However, after a period of two (2) monthsaccumulated service, they shall be entitled to Holiday Pay, and after three (3)months accumulated service shall be entitled to the Personal Holiday.  After a probation period of three (3) months,seniority shall be determined as of the date the employee started to work, andafter a period of three (3) months accumulated service shall qualify for allbenefits.

 

**Section C. SUPERSENIORITY STATUS.**The Chairman of the Shop Committee and all members of the Shop Committeehandling all matters concerning the Grievance Procedure shall head theplant-wide seniority list during their terms of office.  Any member of the shop committee who at thetime of election is on second or third shift will be assigned to the firstshift within their respective classification. Such shop committee member transferred from other than first shift willreplace the employee within their classification, with the lowest plant-wideseniority, unless they can be otherwise absorbed into theirclassification.  This would not apply totemporary transfers between shifts for up to thirty (30) days.  If there is a reduction in the work forceduring the term of office of the Grievance Committeeperson, they will remain atwork in their respective departments regardless of seniority unless the entiredepartment is laid off.

 

The Committee must be able to do the job in accordancewith the bumping procedure.  Thissuperseniority status is applicable to layoffs only, and employees will returnto their original positions on the seniority list at the termination of theirterms in office.  The Department Stewardsshall head the seniority list in their respective departments during their termof office.  This superseniority status isapplicable to layoffs only, and employees will return to their originalpositions at the termination of their terms of office.

 

**Section D. MEDICALDISQUALIFICATIONS.** Medical conditions that create a permanentinability for an employee to perform their present job will result in:

 

a.             returnto job they have previously satisfactorily performed, providing there is anopening, providing they have seniority.

 

b.             seniorityprevailing, accept an open job that meets the stipulated work restrictions(failure to accept an open job will be construed as a voluntary quit).

 

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c.             alay-off.

 

**Section E. LAY-OFF PROCEDURE.**When it becomes necessary to reduce the work force for an indefinite period ina department or within a work cell, the reduction will be made according to jobclassifications, and employees will be notified three (3) normal working daysin advance.  It is understood and agreedthat in all cases of reduction in workforce, seniority shall be the determiningfactor so long as those employees remaining in affected job classificationshave the skills and abilities to ensure continued efficient operations of theCompany.

 

When a reduction in workforce is implemented in adepartment, the following procedure will govern, seniority prevailing, providedthat affected employees have the skills and abilities to perform availablejobs:

 

1.            Probationaryemployees in the department shall be laid off before any employee havingseniority in that department is affected.

 

a.             Employeeson inactive status for sickness and accident, workers’ compensation, FMLA, orpersonal leave, while other senior employees within their classification aremoved to lay-off status, will be moved to layoff status.

 

2.            Iffurther reduction is necessary, employees having seniority shall be entitled todisplace other employees within the department in accordance with thefollowing:

 

a.             Displacethe employee having the least seniority in an occupation he/she had previouslysatisfactorily performed while in the employ of the Company.

 

b.             Ifemployees cannot displace employees in jobs previously satisfactorilyperformed, they shall be entitled to displace the employee having the leastseniority in an occupation he/she is able to perform without further training.

 

c.             Bumpingrights for those inactive at the time of lay off, may be invoked at the timesaid employee is scheduled to return, or is released to return to work.  Bumping rights under these circumstances,expire the working day following the scheduled return date.  Recall rights will be extended for the normaldefined term (one-half seniority to a maximum of three (3) years) effectivewith the date of lay off; however, recall rights will not be extended until theemployee is scheduled to return or is released to return to work.

 

3.            Anyemployee having seniority displaced from a department in accordance with theabove procedure shall be entitled to displace employees in other departments inaccordance with the following:

 

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a.             Displacethe employee having the least seniority in an occupation he/she had previouslysatisfactorily performed while in the employ of the Company.

 

b.             Ifemployee cannot displace employees in jobs previously satisfactorily performed,they shall be entitled to displace the employee having the least seniority inan occupation he/she is able to perform without further training.

 

c.             Ifemployee is displaced from original bump by a senior employee with moreseniority who can perform the job without training, the employee may againexercise his/her bumping privileges. Only the senior employee will be considered for each multi-bumpsituation.

 

4.            Inrecognition of the Company’s responsibility to maintain efficient operations,it is understood and agreed that the following criteria shall apply toemployees displacing other employees in accordance with the above procedure:

 

a.             Employeewill have five (5) working days (employee with fifteen (15) years senioritywill be offered up to ten (10) working days) during which to demonstrateability to satisfactorily perform the work with the opportunity forfamiliarization of equipment and work area, without training.  At the end of this period, employee must beperforming at the established production standard.

 

5.            Ifan employee fails to displace another employee, due to lack of skills orabilities, he/she shall be placed on layoff status, with the right to recallonly to:

 

a.             His/herregular job; or

 

b.             Ajob he/she previously satisfactorily performed; or

 

c.             Bottomof lay-off list.

 

6.            Shouldan employee choose not to exercise his/her seniority rights under this Section,he/she shall be placed on layoff status, relative to seniority.

 

Employees accepting jobsin accordance with the above procedures shall be paid at the current rate forthe job.

 

Employees accepting jobsin accordance with the above procedures may, with seniority prevailing,exercise shift preference.

 

**Section F. RECALL PROCEDURE.**When it becomes necessary to recall employees from layoff, or to re-man adepartment after a reduction, the following procedure shall be applied:

 

1.             TheCompany shall determine with seniority prevailing whether there are displacedemployees working elsewhere in the plant or on the layoff list who previouslyperformed in the job classification. Employee will be reassigned to an open job in accordance to thefollowing procedure:

 

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a.     performedjob within the past ten (10) years.

 

b.     satisfactorilyperformed the job for a minimum of a two (2) year period.

 

c.     employeewill have five (5) days for familiarization and minimal training during whichto demonstrate ability to satisfactorily perform the work.  At the end of this period, employee must be performingat the established production standard.

 

d.     ifan employee fails to satisfactorily perform the work as required above due tolack of skills or abilities under this Section, the employee shall be placed onlayoff status, with the right to recall only to his/her original job.

 

e.     employeesaccepting jobs in accordance with the above procedures shall be paid at thecurrent rate for the job.

 

f.      employeesbypassed shall retain their relative positions on the lay-off list.

 

2.             Shouldopen jobs become available and the employee was unable to qualify for theabove, employee will be recalled from the layoff list in accordance with theirseniority, provided that employee has the skills and abilities to perform theavailable jobs.  Displaced employeetaking available job shall not be reassigned to their original job once theyhave chosen to sign a Job Bid, or have completed one (1) year in their new jobclassification.  Employees bypassed shallretain their relative positions on the lay-off list.

 

3.             Shouldemployees be unable to qualify for the above, they will be recalled toavailable jobs denoted by an asterisk on the Job Classification list, by usingplant wide seniority of those employees on the lay-off list.  If the employee’s original job should re-open,the employee must return to that original job. Employees bypassed shall retain their relative positions on the lay-offlist.

 

4.             Employeesrecalled from the layoff list to their original jobs refusing to return to suchjobs, shall be considered having quit, forfeiting all accumulated seniority.

 

5.             Employeesrecalled from the layoff list to available work refusing such job shall beplaced at the bottom of the layoff list. However, upon second refusal of recall to available work, employeesshall be considered on layoff until original job becomes available, or ArticleV, Section F., #2., becomes applicable.

 

6.             Itis understood and agreed that the recall and re-manning procedures contained inthis Agreement will be invoked only when full time, permanent jobs becomeavailable.  Should temporary jobs become

 

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available, the Companyshall exercise its prerogative to fill those vacancies, within the limitationsof this Agreement, after having first advised the Union.

 

**Section G. TEMPORARY REDUCTIONS.**The work week shall not be less than thirty-two (32) hours, consisting of four(4) eight (8) hour days, for a period of not longer than six (6) weeks and thenthe Company and the Union shall meet to consider the advisability of continuingthe thirty-two (32) hour week or reducing the number of employees according toseniority.  This clause does not apply toa temporary reduction in a certain department or work cell due to lack of work,shortage of material, overstock or temporary setback of production.  A temporary reduction in a department will beof definite duration, not to exceed one (1) week, in which case employees willbe placed on layoff status, without invoking Article V, Section E.  Should the temporary reduction exceed one (1)week, the Company and Union shall meet to discuss the advisability of reducingthe work force according to Article V, Section E.

 

**Section H. SENIORITY FORFEITURE.**Employees shall forfeit seniority if:

 

1.             Theyquit or retire.

 

2.             Theemployee is laid off for a period in excess of one-half (1/2) of his/herseniority but in no event shall he/she retain his/her seniority after three (3)years continuous lay-off.

 

3.             Theyare discharged for just cause.

 

4.             Theyare absent for three (3) consecutive working days without reasonablecause.  Questionable cause shall benegotiated between the Company and the Union.

 

5.             Theyfail to report for work within five (5) days, after receiving notice to reportwhere such failure to report does not arise from good causes, such asemployment elsewhere (for a period not to exceed two (2) weeks), illness, deathin the immediate family, absence from the city or military service, provided,however, in such cases that they give the Company notice of the good causepreventing them from returning to work within three (3) days of receipt ofnotice.

 

6.             Whileon leave of absence, they accept employment with another concern withoutapproval of the Shop Committee and the Company.

 

**Section I. SENIORITY ROLLS.**The Company shall furnish an accurate seniority roll showing the status of allemployees covered by this Agreement, a copy of said roll shall be given to theShop Committee on request.  The Companywill also notify the Union in writing of hiring, discharging, rehiring,furloughing, and transferring of each and every employee, in order to keep theabove mentioned seniority roll up to date.

 

**Section J. JOB POSTING &BIDDING.** Notices of vacancies or new jobs created will beposted on the job posting bulletin boards for a period of three (3) workingdays during which employees shall have the opportunity to advance their statusby filing an application for transfer to such jobs with the Human ResourcesManager.  If posted jobs are not filledin thirty (30) days, a one-day posting will be made before a new employee ishired.  Work cells, once developed,

 

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will be initially staffedwith active employees from the traditional job classifications that were mergedby the given work cell.  Job openings,within a given work cell, will not be posted until the staffing requirementswithin the work cell exceeds the available active employees that were mergedfrom the traditional job classifications. The traditional job classification will be the basis for posting anavailable work cell position.  Theexisting job posting and bidding rules, contained within this section, willgovern the evaluation of any subsequent job vacancy or bid into a work cell.

 

Requests for transfer will be considered in accordanceto the employee’s seniority, qualifications, and curtailment of production,before any new employee is hired for such a job.  Before the job is awarded to a bidder, thelay-off list will be referred to for qualified senior employees (See ArticleV., Section F.).  If a laid off employeeaccepts the job, the job bid must be signed. If an employee on the lay-off list refuses the job, refer to Article V,Section F., #5.  If there is reasonabledoubt as to the employee’s qualifications, a reasonable trial period shall begranted.  Should any employee disqualifythemself during the five (5) day trial period, they shall have return rights totheir previous job.  Once the employee isaccepted for the job, and once the employee completes the five (5) day trialperiod, he/she relinquishes the rights to the job he/she left.  Any employee who fails to successfully hireor transfer into a new job will be placed on layoff status, with no bumpingrights.  Layoff status will beautomatically invoked upon the issuance of the third infraction of a minornature for failing to meet a reasonable measure of efficiency (Infraction of aMinor Nature #10).  Employees who aredisqualified in this manner will relinquish recall rights to any previouslydisqualified job, and all warnings on record will continue for the remainder oftheir terms once the employee returns from layoff.

 

Employees interested in being considered for roughassembly should first bid into the rough assembly training classification.  The horn slide training classification willbe comprised of two (2) separate tiers; Trainee B - Grade 2, and Trainee A -Grade 5.  Available positions will beposted as Trainee B - Grade 2.  Existingemployees who transfer into this classification will have the customary five(5) day trial period.  Employees inTrainee B will be evaluated on a monthly basis, and transfer to Trainee A willonly occur after the employee has reached a skill level equivalent to theestablished standards for horn slide assembly. Transfer from Trainee B to Trainee A must be accomplished within six (6)months, if not, Article V., Section J., would apply.  Existing horn slide assemblers will retaintheir current classification, and employees within the Trainee A will beconsidered part of the horn slide assembly capacity.  Under this program, the trainingclassifications may not be considered a permanent position.  Any employee within Trainee A can bid onRough Assembly jobs within departments 35 and 38, and will not be required tocomplete one year of service.  However,any subsequent transfer to rough assembly (either by bid or placement) willrequire employees to complete one year of service.

 

Any subsequent job openings in rough assembly will befilled predominantly by employees from this training classification.  This, however, is not intended to prevent anyof the current rough assemblers from bidding into a new rough assemblyopening.  Providing no eligible bids arereceived from current rough assemblers, the Trainee A can bid with seniority

 

14

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prevailing.  If no eligible bidsare received from Trainee A, then placement of a Trainee A will be done at thediscretion of the company.

 

Plantwide seniority rules will apply to layoff withinthis training classification (e.g. a senior Trainee A will remain over a juniorhorn slide assembler, or a junior Trainee A can be bumped by a senior roughassembler).

 

An employee transferred from one department to anothershall immediately be credited with his/her total seniority in the newdepartment.  The Maximum dayrate willreplace “Traditional” hourly rates for all downward job transfers and lateraljob transfers (outside of their department only).  Employees with a “Traditional” hourly rate,who are approved for an upward transfer request, or a lateral transfer request(within their department), or are laid off for lack of work or for medicaldisqualification (excluding job disqualifications), will preserve their“Traditional” hourly rate or the Maximum dayrate (whichever is higher).  The most senior employee may exercise shiftpreference from one shift to another, within a work cell, within a jobclassification, within a department, provided a vacancy exists.  The company reserves the right to temporarilypostpone shift preference, to a maximum of one (1) year, within classificationsthat require extended training or supervision (specifically 5A41 – Polisher,5A42 – Buffer, and 5A35 – Color Buffer). All transfer requests shall be answered if rejected for seniority,qualifications, or curtailment of production.

 

In the application of this provision, requests fortransfer to another job, in the department wherein the vacancies occur or thenew job is created, shall be considered before any such requests made byemployees from other departments.

 

Once an employee accepts a transfer, or once anemployee disqualifies themself during a trial period and returns to theirprevious job, that employee will not be allowed to submit another request fortransfer for for a period of six (6) months. This applies to intra-departmental, as well as inter-departmentaltransfers.

 

Requests for transfers submitted by employees in LaborGrades 1 and 2, with less than one (1) year seniority or probationaryemployees, will be considered and possibly accepted, providing that an employeewith one (1) year or more seniority did not bid the job.

 

Employees in Labor Grades 3 and above with less thanone (1) year seniority shall not be entitled to place transfer requests.

 

Requests for transfer into a lower Labor Grade, orinto into the same Labor Grade(except for those established with “Traditional” hourly rates) will not bepermitted.  Employees, established with aTier 2 wage rate, can possibly be considered and accepted for a lateral transferwithin their department.

 

It is understood thatrequests for transfer will be considered on an individual basis, taking inaccount all the factors presented at the time the request for transfer issubmitted.

 

When an abnormal condition exists that may result inthe curtailing of production in other parts of the Plant Management reservesthe right to hire experienced individuals in preference to present employeeswho do not have previous experience.

 

Union and the bidders will be notified within five (5)working days of the final posting date.

 

15

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**Section K. SENIORITY GRIEVANCES.**Any grievances arising out of seniority shall be subject to negotiationsbetween the Union and the Company.

 

**Section L. NOTIFICATION OF JOBSTATUS.** In laying off, furloughing, or transferring anyemployee, the Company Representative shall notify the Chairman of the ShopCommittee and the employee in such layoff, furlough or transfer as soon aspractical.

 

**Section M. TRANSFER INTOBARGAINING UNIT.** Employees who were not employed in thebargaining unit at any time during their period of employment with the Companyand who are transferred into the bargaining unit shall be credited withseniority from the date of transfer into the bargaining unit after havingserved their probationary period.

 

**Section N. REASSIGNMENT TOBARGAINING UNIT.** Employees who were, or may be transferred orpromoted from jobs within the bargaining unit to jobs outside the bargainingunit shall retain their seniority but shall not accumulate seniority whileworking on such jobs.  In the event suchemployees are transferred into the bargaining unit, they shall be placed onavailable jobs where they are best qualified in line with their seniority, butshall not be entitled to exercise their seniority to displace any regularfull-time employee within the bargaining unit for a period of ninety (90) daysfrom the date of transfer.

 

**Section O. DISCHARGE PROCEDUREAND GRIEVANCES.** Should an employee be subject to discharge,he/she shall be advised of the reason for such action.  The Company shall then request the presenceof the Chairman of the Shop Committee to discuss the cause with him/her beforehe/she is required to leave the Plant.

 

Should the employee or his/her representative considerthe action to be improper, a written protest must be presented to the Companywithin five (5) working days after the action was taken, or the action takenwill be considered as accepted.  Such protestwill be handled in accordance with the established grievance procedure.  If it is determined that the discharge wasunjustified, the employee shall be reinstated to his/her former position and tohis/her former standing on the seniority list, without any loss of pay.

 

**ARTICLE VI - GRIEVANCE PROCEDURE**

 

**Section A. INTENT OF DISPUTEADJUSTMENTS.** It is the intent of the parties to thisAgreement that the procedure herein set forth serve as a peaceful means for theadjustment of all disputes that may arise between them.

 

**Section B. NOSTRIKE / NO LOCKOUT.**  The union agrees thatit will not encourage, sanction, or approve any strike, handbilling, sympathystrike, or other interruption of work growing out of any dispute.  On the contrary, the union will activelydiscourage and endeavor to prevent or terminate any strike, stoppage, slowdown,or other interruption of work.

 

The company agrees thatneither it nor its representatives will put into effect any lockout during theterm of this agreement.

 

16

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**Section C.** Anygrievance relating to the issuance of a warning must be submitted to thefollowing grievance procedure within fourteen (14) calendar days following theissuance of said warning to the employee(s), otherwise the action is regardedas accepted.  The union, whenever awarning is issued, will be immediately furnished a copy of the written warningupon issuance to the employee.  Whenevera grievance arises, the following steps shall be taken to ensure proper andtimely handling, except in the case of a termination, which will go directly toStep 4.:

 

**Step 1.**

 

An employee with aproblem, complaint or question will discuss the details of the complaint withthe Supervisor and the Department Steward. Who, after investigating complaint or problem, will determine if thereis cause.  The Supervisor, within a 24hour period, will give a formal answer to the employee in the presence of theDepartment Steward.

 

**Step 2.**

 

Failing satisfactorysettlement with the Supervisor, a grievance shall be written, at which timeemployee and Department Steward shall present the written grievance to theSupervisor who will submit the grievance to a Company Representative selectedby the Company, who will within a five (5) day grace period, conduct a meetingof all parties involved in an attempt to resolve the issue.

 

**Step 3.**

 

If the issue is still notresolved, the written grievance will be taken up in a meeting with theGrievance Committee and a Representative of the Company within ten (10) workingdays of the notice of rejection to settlement in Step 2.

 

**Step 4.**

 

Inthe event satisfactory settlement is not made, and after the above procedurehas been exhausted, the grievance shall be referred to the Plant Manager orhis/her representative and the Union’s International Representative and theCompany Legal Advisor.  Should such ameeting be necessary, it will be held at 2:00 p.m. within two (2) weeks noticeof rejection in step three or on a date agreed upon by both. The Step 4 meetingmay be delayed beyond the above mentioned timetable by mutual consent of theCompany representative and the Union.  If(a) the company fails to meet, or (b) the union fails to submit writtenrejection to the 3rd step outcome, within the specified time limitsin the 4th step of the grievance procedure, then the grievance shallbe considered settled on the basis of the last position – in favor of the unionin situation (a), or in favor of the company in situation (b).

 

**Step 5.**

 

If the grievance is notsettled pursuant to the steps in the grievance provisions of this agreement,then either party shall, within thirty (30) calendar days after any Step 4grievance answer submit the grievance to arbitration.  Both the company and the union agree toutilize expedited arbitration as a preferred method.  Post hearing briefs will be permitted only byagreement of the parties or by direction of the arbitrator if one party sorequests.

 

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The employer and theunion shall agree upon a list of three (3) arbitrators to serve for theduration of this agreement.  When eitherparty requests arbitration pursuant to Section C., Step 5., the parties shallmeet within seven (7) working days to select an individual from this panel to hearsaid matter.  The arbitrator will beselected by process of rotation.  As soonas the parties select the arbitrator, they shall jointly request a hearing datebe set as soon as possible subject to the availability of the parties.  If the parties and the arbitrator are unableto agree upon a date within thirty (30) days of contact with the arbitrator,then the parties, by mutual agreement, may immediately select anotherarbitrator.  No more than thirty (30)days after submission of the case to the arbitrator, the arbitrator will issuehis / her award.  The parties agree toaccept the arbitrator’s award as final and binding upon them; however, thearbitrator shall have no power to add to, subtract from, or modify any of theterms of this agreement.

 

The cost of thearbitrator, and meeting room shall be shared equally by the parties.  Any other expense (such as attorney,transcript, or witness or advocate fees) must be paid by the party incurringsuch expense.

 

No aggrieved party shallhave any right to invoke the grievance procedure provided above, or thearbitration procedure provided above, unless the matter of such grievance hasbeen presented as provided above.

 

**ARTICLE VII - WAGES**

 

**Section A. NEW EMPLOYEECLASSIFICATION.** Any new employee may be employed in anybracket or classification to be determined by their past experience.

 

**Section B.  “TRADITIONAL” HOURLY RATES.**  All existing union hourly employees (with ahire date on or before the execution of this collective bargaining agreement),will preserve the higher of their overall hourly average or their currentDayrate (for the period between 02/16/04 and 02/18/05) as their straight-timehourly rate for all hours worked (excluding the stated exceptions See ArticleVII., Section D.).  Employees already establishedwith an interim work cell hourly rate will receive the higher of their currentwork cell rate, their overall hourly average, or their current Dayrate (for theperiod between 02/16/04 and 02/18/05) as their straight-time hourly rate forall hours worked (excluding the stated exceptions See Article VII., SectionD.).

 

**Section C. HOLIDAYS.**The Company shall pay all employees with seniority covered by this Agreement attheir hourly earnings for the following Holidays, to be observed on designateddates: 

 

a.             2005:

 

# Friday, March 25 – Good Friday

Monday, May 30 - MemorialDay

Friday, July 1 -Independence Day (Observed)

Monday, September 5 -Labor Day

Thursday/Friday, November24 & 25 - Thanksgiving Holidays

Friday/Monday, December23 & 26 - Christmas Holidays

Tuesday/Wednesday/Thursday,December 27, 28, & 29 - (3) Floating Holidays

 

18

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Friday, December 30 - NewYear’s Holiday (Observed)

 

b.             2006:

 

Friday, April 14 - GoodFriday

Monday, May 29 - MemorialDay

Friday, June 30 -Independence Day (Observed)

Monday, September 4 -Labor Day

Thursday/Friday, November23 & 24 - Thanksgiving Holidays

Monday/Tuesday, December25 & 26 - Christmas Holidays

Wednesday/Thursday/Friday,December 27, 28, & 29 - (3) Floating

Holidays

Monday, January 1 - NewYear’s Day

 

c.             2007:

 

Friday, April 6 - GoodFriday

Monday, May 28 - MemorialDay

Friday, June 29 -Independence Day (Observed)

Monday, September 3 -Labor Day

Thursday/Friday, November22 & 23 - Thanksgiving Holidays

Monday/Tuesday, December24 & 25 - Christmas Holidays

Wednesday/Thursday/Monday,December 26, 27, & 31 - (3) Floating

Holidays

Tuesday, January 1 - NewYear’s Day

 

d.             PersonalDay to be used as requested by employee:

 

1.     Twoweeks notice must be submitted prior to the day being requested, seniorityprevailing, when combined with other regularly scheduled holidays.

 

2.     Mustbe approved by Human Resource Manager.

 

3.     ThePersonal Holiday, if used at any other time, can be merely taken with advanceor “call-in” notice.  However, thePersonal Holiday cannot be applied retroactively to a day already missed.  The Personal Holiday, if arranged on acall-in basis, must be reported to your Supervisor or Human Resources withintwo (2) hours of your scheduled starting time. This holiday must be taken by the end of each contract period.  Employees who have not used their personalholiday shall be paid for the holiday at the end of the contract year.

 

**HOLIDAY PAY QUALIFICATIONS.**Absence from work without permission or approval of the Company and Union ShopCommittee the working day prior to, or the working day following paid Holidayswill result in forfeiture of Holiday Pay unless the Company and Union agreethat the employee has a reasonable excuse for payment of Holiday Pay which is:

 

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a.             Duringthat week of the Holiday, from Monday to Sunday, an employee is hospitalizedprior to the Holiday and is unable to work as required.

 

b.             Hospitalizedon the Holiday and unable to report the day after as required.

 

c.             Hospitalizedon the day scheduled to return to work as required.

 

d.             Duringthe week of the Holiday, a physician’s slip stating that employee has been sickand was unable to report to work as required either on the day before theHoliday or on the day after the Holiday.

 

e.             Employeeon Leave of Absence for personal, sickness, or injury reasons do not qualifyfor Holiday Pay - unless, the employee works the next scheduled workdayfollowing the holiday.

 

f.              Employeeswho were laid off 30 days prior to a holiday, will qualify for payment of theholiday.

 

In addition to the listed exceptions to holiday payqualifications, emergencies that occur the day before or the day after aholiday will be handled on an individual basis. The employee must report the emergency to the Human Resource Manager,and the employee must furnish documentation proving the legitimacy of suchemergency upon return to work.  HumanResources will determine if payment for the holiday(s) is to be made underthese conditions.

 

**Section D. SPECIAL RATES.**

 

a.             **INSTRUCTOR PAY.** The Company may appoint new instructors totrain one or more employees for the job. For the time spent instructing, they will receive will receive twentyfive cents ($.25) per hour over their hourly rate.

 

b.             **GROUP LEADER PAY.** The company may appoint group leaders in aparticular area of the plant.  For thetime spent in a group leader role, group leaders will receive a minimum oftwenty five cents ($.25) per hour over their hourly rate.

 

c.             **TEMPORARY TRANSFERS.** When an employee’s work is in two (2)or more Labor Grades, he/she shall carry the higher rate.  Temporary transfers can be made as an interimwork assignment during temporary periods of no work, for up to six (6) weeks,leaving the affected employee an opportunity to return to their normal job.Temporary transfers, under these circumstances, will be further extended ifmutually agreed by the company and the union.

 

d.             **SHIFT DIFFERENTIALS.** Employees working on the second shiftshall receive additional compensation of fifty cents ($.50) per hour.  Employees working on the third shift shallreceive additional compensation of seventy-five ($.75) per hour.

 

**ARTICLE VIII – QUALITY, COST,DELIVERY, AND SAFETY**

 

Employees are expected tosafely produce quality instruments in the most efficient manner.  Conforming to safety requirements, improvingquality standards, and improving manufacturing efficiencies is every employee’sresponsibility.

 

20

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Manufacturing operations,not contained within a work cell, must meet or exceed 110% of the jobstandard.  Any voids in quality,efficiency, or safety will be subject to the established warning system.

 

Safety standards,quality standards, and manufacturing efficiencies (compared to the standardsestablished by the former individual incentive system), must be maintained orimproved with each subsequent work cell that is developed.  Work cells will be organized according toestablished lean manufacturing principles, and will be based upon standard timeobservations.  Work cell cycle times,following the removal of all non-value added operations, will be determined tobe the combination of the lowest repeatable times for each remaining jobelement.  The resulting job elements,given the customer TAKT time, will be divided between the employees that areassigned to each given work cell.  Jobelements, depending on the customer TAKT time, may be changed or altered, andemployees assigned to each given work cell will be required to assume the mostleveled and balanced combination of job elements.  Quality, cost, delivery, and safetydeficiencies, identified within a work cell, will be handled on an individualbasis, and may be subject to the established warning system.

 

**WAGE RATES EFFECTIVE:**

 

Effective February 25,2005, a flat bonus of $641.00 (Gross) will be paid to all active unionemployees.

 

Effective February 20, 2006, two percent (2 %) shall be added to all“Traditional” hourly rates.  A generalwage increase of one percent (1%) shall be added to all “Tier 2” hourly rates.

 

Effective February 19,2007, two and one-half percent (2.5 %) shall be added to all “Traditional”hourly rates.  A general wage increase ofone percent (1%) shall be added to all “Tier 2” hourly rates.

 

*Recall Jobs – ArticleV., Section F., #3.

 

**JOB CLASSIFICATIONS AND TIER 2HOURLY RATES:**

 

**#1 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 12.416     |        | $          | 12.541       |       | $ | 12.666 |   |
| Minimum Hourly  Rate |       | $           | 10.554     |        | $          | 10.659       |       | $ | 10.766 |   |

 

*Sweepers

 

**#2 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 12.543     |        | $          | 12.669       |       | $ | 12.795 |   |
| Minimum Hourly  Rate |       | $           | 10.662     |        | $          | 10.768       |       | $ | 10.876 |   |
|                      |            |             |            |             |            |              |            |  |  |  |  |

 

*Case Sizing BoringMachine Operator

 

*Degreaser / PartsCleaner

 

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*Harperizer &Tumbling Machine Operator

 

*Laborer

 

*Laborer - Air/WaterCheck Horns

 

*Vibratory & TumblingMachine Operator

 

*Operator - Cut andShrink

 

*Operator - Drill Press& Milling

 

*Trucker - Stock Handler

 

*Trainee B

 

*Laborer - Rinse Tank

 

**#3 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 12.660     |        | $          | 12.787       |       | $ | 12.915 |   |
| Minimum Hourly  Rate |       | $           | 10.761     |        | $          | 10.869       |       | $ | 10.978 |   |

 

Bender - Crooks

 

Lead and Silver Solderer

 

Operator - Punch Press

 

Packers

 

Pantograph/SchmidtEngraver Set-Up Oper.

 

*Pickling Tank Operator

 

*Shippers

 

Straighten Trombone SlideTubes

 

Aqueous System Set-UpOperator

 

Lead Pot Operator

 

**#4 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 12.807     |        | $          | 12.935       |       | $ | 13.064 |   |
| Minimum Hourly  Rate |       | $           | 10.886     |        | $          | 10.995       |       | $ | 11.105 |   |

 

Automatic Tube BuffingMch.

 

Brazer

 

CNC Automatic SpinningMachine Operator

 

CNC Drill Operator

 

CNC Laser Operator

 

Draw Bench Operator

 

Engine Lathe Operator

 

Final Assembly Horns

 

Honer - Trombone Slides

 

Maintenance Helper

 

Operator Turret Lathe,Hand Screw

 

Set-Up Opr. Vertical DrawMch.

 

*Stock Clerk

 

Rotary Valve Finisher

 

22

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Auto. Buff. Mach. Set-upOpr.

 

Cell Technician

 

**#5 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 12.871     |        | $          | 13.000       |       | $ | 13.130 |   |
| Minimum Hourly  Rate |       | $           | 10.940     |        | $          | 11.050       |       | $ | 11.160 |   |

 

Assembler Valves &Crooks

 

Bender

 

Operator Automatic ScrewMch.

 

Piston Machinist

 

Plater C

 

Rough Assembly - Cornets,Trumpets

 

Rough Assembly - HornSlides and Trombone Bells

 

Rough Assembly - LargeHorns & Rotary Valves

 

Rough Assembly - TromboneSlides

 

Waste Water PretreatmentOperator

 

Trainee A

 

Annealing FurnaceOperator

 

**#5A Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 17.600     |        | $          | 17.776       |       | $ | 17.954 |   |
| Minimum Hourly  Rate |       | $           | 12.215     |        | $          | 12.338       |       | $ | 12.461 |   |

 

Color Buff and Color Rag

 

Polisher

 

Buffer

 

Rotary Valve Maker

 

Set-Up Operator – PunchPress

 

Lacquer Sprayers

 
| ** **              | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **2/19/07** | ** ** |
|-------------------------|------------|-------------|------------|-------------|------------|-------------|------------|
| TU/SU                   |       | $           | 17.600     |        | $          | 17.776      |       | $ | 17.954 |   |
| FG/FTM/MI/FH            |       | $           | 16.254     |        | $          | 16.416      |       | $ | 16.581 |   |
| BA/EU/Pro ST  TM/Pro TR |       | $           | 14.908     |        | $          | 15.057      |       | $ | 15.207 |   |
| St TR/CR/TM             |       | $           | 13.562     |        | $          | 13.697      |       | $ | 13.834 |   |
| Components              |       | $           | 12.215     |        | $          | 12.338      |       | $ | 12.461 |   |
|                         |            |             |            |             |            |             |            |  |  |  |  |

 

**#6 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.082     |        | $          | 13.212       |       | $ | 13.344 |   |
| Minimum Hourly  Rate |       | $           | 11.119     |        | $          | 11.230       |       | $ | 11.343 |   |

 

Automatic HydraulicSpinning Machine Operator

 

Bender Skilled

 

Inspector B

 

Sheet Brass Workers

 

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Plasma Arc Welder

 

Piston Liner, Assembler,and Ball-Out

 

**#6B Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.136     |        | $          | 13.267       |       | $ | 13.400 |   |
| Minimum Hourly  Rate |       | $           | 11.165     |        | $          | 11.277       |       | $ | 11.390 |   |

 

Spinner - Metal

 

**#6A Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.250     |        | $          | 13.382       |       | $ | 13.516 |   |
| Minimum Hourly  Rate |       | $           | 11.262     |        | $          | 11.375       |       | $ | 11.489 |   |

 

Maintenance B

 

**#6A-1Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.376     |        | $          | 13.510       |       | $ | 13.645 |   |
| Minimum Hourly  Rate |       | $           | 11.369     |        | $          | 11.483       |       | $ | 11.598 |   |

 

Maintenance & WelderA

 

Plater B

 

**#6A-2Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.556     |        | $          | 13.691       |       | $ | 13.828 |   |
| Minimum Hourly  Rate |       | $           | 11.522     |        | $          | 11.638       |       | $ | 11.754 |   |

 

Operator CenterlessGrinder

 

Turret Lathe & HandScrew - Set-Up Oper.

 

CNC Turning Center Set-UpOperator

 

**#7 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.903     |        | $          | 14.042       |       | $ | 14.183 |   |
| Minimum Hourly  Rate |       | $           | 11.818     |        | $          | 11.936       |       | $ | 12.055 |   |

 

Plater A

 

Tool Maker Trainee

 

Horn Tester

 

**#7B Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.240     |        | $          | 14.382       |       | $ | 14.526 |   |
| Minimum Hourly  Rate |       | $           | 12.104     |        | $          | 12.225       |       | $ | 12.347 |   |

 

Horn Repair

 

**#8 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.968     |        | $          | 15.118       |       | $ | 15.269 |   |
| Minimum Hourly  Rate |       | $           | 12.723     |        | $          | 12.850       |       | $ | 12.978 |   |

 

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Tool Room Machinist B

 

**#9 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 15.609     |        | $          | 15.765       |       | $ | 15.922 |   |
| Minimum Hourly  Rate |       | $           | 13.267     |        | $          | 13.400       |       | $ | 13.534 |   |

 

Maintenance A

 

Tool Room Machinist A

 

**#9A Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 15.918     |        | $          | 16.077       |       | $ | 16.238 |   |
| Minimum Hourly  Rate |       | $           | 13.531     |        | $          | 13.666       |       | $ | 13.803 |   |

 

Tool & Die Maker

 

**#10 Grade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 16.484     |        | $          | 16.648       |       | $ | 16.815 |   |
| Minimum Hourly  Rate |       | $           | 14.011     |        | $          | 14.151       |       | $ | 14.293 |   |

 

Maintenance &Electrician

 

**#10AGrade**

 
| ** **           | ** ** | **2/21/05** | ** ** | **2/20/06** | ** ** | **02/19/07** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 16.667     |        | $          | 16.834       |       | $ | 17.002 |   |
| Minimum Hourly  Rate |       | $           | 14.167     |        | $          | 14.309       |       | $ | 14.452 |   |

 

CNC Programmer, Complex

 

Tool & Die MakerComplex

 

Tier 2 employees will beeligible for wage increases (up to the maximum dayrate), once time / skill /performance based thresholds have been achieved.

 

**ARTICLE IX - VACATIONS**

 

The Union and theCompany agree that the purpose of vacations is that of relaxation of theindividual from the requirements of his/her work and that such relaxation isearned by total years of service and hours worked.  Total years of service will include anyformer years of service with the former King Musical, United MusicalInstruments, or Conn-Selmer, Inc. in addition to current continuous years ofservice.

 

**Section A. VACATION PERIOD.**The Plant will be closed for a two-week Vacation Period beginning on thefollowing dates:

 

1.         Monday,July 4, 2005 - the Fourth of July Holiday to be observed on Friday, July 1,2005.

 

2.         Monday,July 3, 2006 - the Fourth of July Holiday to be observed on Friday, June 30,2006.

 

3.         Monday,July 2, 2007 - the Fourth of July Holiday to be observed on Friday, June 29,2007.

 

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The employee’s senioritystatus for the purpose of vacations will be determined as of June 30th of thevacation year.  The new vacation yearbegins each subsequent July 1.  Newvacation time becomes available each subsequent July 1.

 

The designated Shutdownperiod will be staffed as follows:

 

a.         Forplant-wide maintenance, a Volunteer Sign-Up Sheet for Laborers required duringthe shutdown will be posted two months prior to the shutdown for a period often (10) working days.

 

b.         Thosejunior employees who cannot entirely cover the vacation period will be thefirst volunteers selected for the above posted position(s).  However, these junior employees may onlyvolunteer for the time not covered by vacation. Volunteers paid to a Maximum of Grade 5A.

 

c.         Shouldthere be a need for additional manpower, seniority prevailing, all otheremployees may volunteer.  Vacation may bescheduled and paid at a later date according to Article IX, Section C., letterb.  Volunteers paid to a Maximum of Grade5A.

 

d.         Shouldthe need for additional manpower still exist, remaining junior employees notcovered by vacation will be required to work. Junior employees will be paid at their Hourly Rate.

 

e.         Shouldthe need for additional manpower still exist, junior employees will be requiredto work, seniority prevailing.  Vacationmay be scheduled and paid at a later date according to Article IX, Section C.,letter b.  Junior employees will be paidat their Hourly Rate.

 

f.          Thelist of Laborers scheduled to work the shutdown will be posted five (5) daysafter the posting period is completed. Those scheduled to work during the shutdown period will be subject tothe same Company Rules that govern any regular workday.

 

**Section B. VACATION PAY.**Shall be computed on the basis of the employee’s average hourly earnings forthe 52 week period beginning and ending closest to June 1, through May 31, orhis/her rate of pay for the classification for which he/she has worked for themajority of the vacation year, whichever is higher, based on the followingschedule:

 
| **Length of Service**                                  | ** ** | **Days of Vacation** | ** ** |
|--------------------------------------------------------|------------|----------------------|------------|
| Six (6) months  to one (1) year seniority              |       | 2                    |       |
| One (1) year to  two (2) years seniority               |       | 5                    |       |
| Two (2) years to  five (5) years seniority             |       | 10                   |       |
| Five (5) years  and up to ten (10) years seniority     |       | 12                   |       |
| Ten (10) years  and up to fifteen (15) years seniority |       | 15                   |       |
| Fifteen (15)  years to twenty (20) years seniority     |       | 17                   |       |
| Twenty (20)  years or more seniority                   |       | 20                   |       |

 

Vacation pay shall bepaid as follows:

 

2through 10 days:               Paid in itsentirety the last pay period before designated shutdown.

 

12through 20 days:             Paid when employeetakes vacation, per Article IX, Section C.

 

Deductions for Medicalcontribution to be deducted from vacation pay. Calculated the same as if employee was working.

 

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**Section C. THIRD AND FOURTH WEEKVACATION REQUIREMENTS.**

 

a.)    Employeemust have either ten (10), fifteen (15) or twenty (20) years of service priorto June 30 to qualify.

 

b.)   One(1) week notice must be submitted prior to the day(s) being requested.

 

c.)    Vacationday(s) will be paid the following Friday of the workweek requested.

 

d.)   Thirdand Fourth week cannot be added to the following year’s vacation.

 

e.)    Mustbe approved by Human Resource Manager.

 

f.)    Individualvacation requests, outside of the determined shutdown period, when possible,will be awarded based upon seniority.

 

g.)   Vacationdays, not taken during the scheduled shutdown period, may be taken on a“call-in” basis.  This option will beavailable starting with the 2005-06 vacation year, and is limited to sixteen(16) hours in 1⁄2-day increments, and sixteen (16) hours in full-day increments(except for those with twenty five (25) years of service who will haveunlimited full-day “call-in” vacation days). These “call-in” days cannot be used consecutively, cannot be used theday before or the day after a regularly scheduled holiday, and cannot beapplied retroactively.

 

Average Hourly Earningsare computed as follows:

 

Total earnings lessovertime premium less vacation pay divided by the Total Hours Paid lessVacation Hours paid.

 

**Section D. LOST TIMEQUALIFICATIONS.** Employees who are formally approved forretirement or who are or have been on a sickness or personal leave of absenceor have lost time due to permanent lay-off, shall receive, at the time ofseparation, their accumulated vacation pay for the regular hours actually paidwith 1,700 hours as the 100% basis.

 

a.         Employeesmust work no less than 1,700 hours to qualify for 100% vacation time due.

 

b.         Employeeswho work less than 1,700 regular work hours will have vacation time due pro-ratedwith 1,700 hours as the 100% qualifying figure against their actual hours paid.

 

**Section E. LOST TIME ALLOWANCES.**Deductions will not be made for lost time due to injury or disease on the jobcompensable by Workers’ Compensation within the vacation year of such injury.

 

Deductions will not be made for lost time due tomilitary reserve duty, lost time when on union business, injury or illness asdefined by the Sickness and Accident Weekly Benefits Plan, during the vacationyear, once employees have been off work for five (5) consecutive weeks.

 

When production is suspended because of fifty percent(50%) or more of the Plant is shutdown due to lack of orders for instruments,employees laid off because of the Plant shutdown will be allowed an additional160 hours credit before deductions are made.

 

**ARTICLE X - UNION SECURITY**

 

All employees who arecovered by the representation clause in the contract and are present members ofthe Union, must as a condition of employment, remain members in good financialstanding except for assessments and fines during the life of the contract.

 

27

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All employees hired into the bargaining unit describedin the representation clause of the contract must, as a condition of employment,join the Union within thirty (30) days from their hiring date and remainmembers in good financial standing throughout the life of the contract.

 

The Company does agree, subject to applicable Federaland State Laws, to a voluntary check-off of Union dues, provided such voluntarycheck-off authorization meets with the approval of the Company.

 

This check-off by the Company of monthly dues does notcover any assessment over and above the mandatory monthly dues as determined bythe National Administrative Committee of the Union.

 

**ARTICLE XI - MEDICAL EXAMINATION**

 

**Section A. INJURY REPORTING.**All employees must report all injuries when they occur to their Supervisor, soit can be recorded and sent to the dispensary, doctors or hospital.

 

**Section B. TRANSPORTATION TOCOMPANY DOCTOR.** The Company will provide transportation toand from the Company recognized Medical Facility for those employees injured onthe job when necessary on the day of the injury only.

 

**Section C. LOST TIME-INJURY**.An employee will be compensated at their hourly rate for lost time on the dayof the injury when sent to Doctors or Hospital, but will not exceed past thenormal quitting time, providing a slip indicating the time lost is turned backto their Supervisor, who will forward it to Human Resources.

 

**Section D. WORKERS’ COMPENSATION**.If the treating physician for an established workers’ compensation claimrequires the employee to visit his/her office or hospital during working hoursfor follow-up treatment, he/she shall be compensated for loss of time up to amaximum of two (2) hours for each visit at their hourly rate.  However, this provision only applies toappointments relating to treatment, or when the company requires and schedulesan independent medical exam during work hours. Claims in excess of this amount shall be determined between the Companyand the Union Shop Committee.

 

Should an injury not be reported as per requirements,and a claim filed by employee, the Company has no choice but to deny such claimat the hearing.

 

**ARTICLE XII - GENERAL PROVISIONS**

 

**Section A. UNION ACTIVITIES.**The Company recognizes and will not interfere with the right of its employeesto become members of the Union.  TheUnion agrees that neither it nor any of its officers or members will engage inany Union activity while such employees are on Company time, unless it ismutually agreed by the Company.

 

The Shop Steward, Departmental Stewards and ShopCommittee shall be paid at their hourly rate for all time spent in mutuallyagreed upon meetings with Management during scheduled working hours.

 

In addition to pay for time spent in mutually agreedupon meetings with Management during scheduled working hours, the Chairman ofthe Shop Committee shall receive pay for up to ten (10) hours per week and theDepartmental Stewards shall receive pay for up to three (3) hours per week forthe time spent on problems arising under this Contract which affect the mutualinterest of the Union and the Company.

 

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**Section B. TELEPHONE USAGE.**It is agreed that the President of the Union or his representative shall haveuse of the Company’s telephone at any time to consult with the UAW, orGovernment agencies’ representatives in regard to matters covered by thisAgreement.

 

**Section C. BULLETIN BOARDS.**Are to be used solely for the purpose of exhibiting official announcements ofthe Union and the Company.  The dedicatedbulletin board for the union is to be used solely for the purpose of postingofficial union business, and may not include any personal announcements orstatements.

 

**Section D. REST PERIODS.**In effect during working hours and the wash-up period at quitting time shall becontinued (a constant allowance of 20 minutes per day for rest periods andwash-up time, except for the Polishing / Buffing / Color Buffing Departments,where an additional 5 minutes wash-up time is allowed).

 

**Section E. SUPERVISORS WORKING.**No employee outside the bargaining unit shall perform any work customarilyperformed by employees within the bargaining unit.  It is agreed, however, the Supervisors mayperform such work while acting as instructors or assisting in solving aproduction problem.  It is furtherrecognized that it is part of the normal procedure of supervision to test andinspect.  During the period in which ashortage of staffing exists due to absenteeism or assignment of personnel toother jobs, the Shipping Department, Maintenance and Tool Room, Machine Shop,and Repair Department Supervisors are excluded from this limitation.

 

**Section F. TEMPORARY EMPLOYEE.**Is one engaged by the Company for a definite period of time, not in excess ofninety (90) days, to perform a specific type of work that does not occur withregularity.  The Company agrees not tocall in temporary employees, if regular employees are available to do the work.

 

**ARTICLE XIII - FRINGES AND SCOPEOF THE AGREEMENT**

 

**Section A. BENEFITS.**The Company agrees to an insurance plan for its employees under a policy orpolicies issued by an insurance company, association or medical group asselected by the Company, subject to the right of the Company to amend, cancelor reinsure the policies or change the underwriters thereof, provided thebenefits indicated herein are maintained for the life of this Agreement.

 

The Company shall affordthe employees an annual opportunity to enroll in the company sponsoredhealthcare programs.

 

**1.****     HOSPITALIZATIONPLANS.**

 

**Self-Insured or Kaiser HMOMedical Insurance.** Effective May 1, 2005, (or the first pay cycle for each subsequent calendar year).  Spousal carve-out to apply on all plans.

 
| **Contribution: (Per Week)** | ** ** | **2005** | ** ** | **2006** | ** ** | **2007** | ** ** |
|------------------------------|------------|----------|------------|----------|------------|----------|------------|
| **Kaiser  HMO:**             |       |     |       |     |       |     |       |
| Employee only:               |       | $        | 16.00      |     | $          | 21.00    |       | $ | 26.00 |   |
| Employee and  Family:        |       | $        | 22.00      |     | $          | 27.00    |       | $ | 32.00 |   |

 

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| **Base  Plan:**       |   |   |   |   |   |   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|
| Employee only:        |   | $      | 9.00   |   | $      | 14.00  |   | $ | 19.00 |   |
| Employee and  Family: |   | $      | 25.00  |   | $      | 30.00  |   | $ | 35.00 |   |

 

**2.****     FLEXIBLESPENDING ACCOUNTS:** Effective May 1, 2005,**(or the first pay cycle for each subsequent calendar year).

 

**Healthcare:**** **Allows you to use before-tax dollars to pay for typicalout-of-pocket health care expenses such as deductibles, copayments, andnon-covered expenses.

 

Up to $2,500.00

 

**DependentCare:**  Allows youto use before-tax dollars to pay for child care or for an elderly or disabledfamily member.

 

Up to $5,000.00 can becontributed if married, or up to $2,500.00 can be contributed if single.

 

**3.****     VISION PLAN:**Effective May 1, 2005.

 

Eyeexam and glasses or contacts every 24 months:

 
| Exam:       |   | $      | 35.00  |   |
|-------------|--------|--------|--------|--------|
| Frames:     |   | $      | 55.00  |   |
| Lenses:     |   |   |   |
| Single:     |   | $      | 40.00  |   |
| Bifocal:    |   | $      | 50.00  |   |
| Trifocal:   |   | $      | 70.00  |   |
| Lenticular: |   | $      | 80.00  |   |
| Contacts:   |   |   |   |
| Cosmetic:   |   | $      | 105.00 |   |
| Medical:    |   | $      | 210.00 |   |

 

During the term of theagreement, if an employee opts out of the Vision Plan, for any reason, theemployee will not be allowed to re-enroll. The employee will not be allowed to re-enroll unless agreed to in thenext round of negotiations.

 
| **Contribution: (Per Week)** | ** ** | **2005** | ** ** | **2006** | ** ** | **2007** | ** ** |
|------------------------------|------------|----------|------------|----------|------------|----------|------------|
| Employee only:               |       | $        | 1.00       |     | $          | 1.00     |       | $ | 1.25 |   |
| Employee and Family:         |       | $        | 3.50       |     | $          | 3.50     |       | $ | 3.75 |   |

 

**4.****                     DENTALPLAN.** Effective May 1, 2005.

 

$1,000 Annual Maximum Benefits

 
| Preventative Services: |   | 100%, no deductible                                   |
|------------------------|--------|-------------------------------------------------------|
| Basic Restorative:     |   | 85%, $50 deductible                                   |
| Major Restorative:     |   | 50%, $50 deductible                                   |
| Orthodontia:           |   | 50%, $50 deductible,  $1000 lifetime limit per child. |

 

30

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| **Contribution: (Per Week)** | ** ** | **2005** | ** ** | **2006** | ** ** | **2007** | ** ** |
|------------------------------|------------|----------|------------|----------|------------|----------|------------|
|                         |       |     |       |     |       |     |       |
| Employee only:               |       | $        | 2.50       |     | $          | 2.50     |       | $ | 2.50 |   |
| Employee and  Family:        |       | $        | 3.50       |     | $          | 4.00     |       | $ | 4.00 |   |

 

**5.  SICKNESS AND ACCIDENT WEEKLY BENEFITS.**Beginning with the first day of an accident or the eighth day of a sickness,benefits will be payable for a maximum of 26 weeks for any one continuousperiod of disability in any one year.  Ifa period of illness exceeds two (2) weeks (14 days) for a non-occupationalsickness, the initial two (2) week (14 days) waiting period will bewaived.  The employee will be paid fromthe first day of illness according to the following schedule:

 

$340per week effective February 21, 2005

$345per week effective February 20, 2006

$350per week effective February 19, 2007

 

**6.  LIFE INSURANCE.** $30,000effective February 21, 2005; to $31,000 effective February 20, 2006; $32,000effective February 19, 2007.

 

**7.  PENSION.** Employees whoretired after February 16, 2000 shall receive a monthly benefit increase to$22.00 per service year effective March 1, 2005; increase to $23.00 per serviceyear effective January 1, 2006. Employees who retired after February 16, 2005shall receive a monthly benefit increase to $24.00 per service year effectiveJanuary 1, 2007.

 

**Section B.  MEDICARE INSURANCE PREMIUM. **The Company will pay the entire cost for those employees covered underMedicare Part B, reimbursing those employees on a quarterly basis.

 

**Section C. RETIREE INSURANCEPREMIUM.** All payments of premium by the Company for insuranceor hospitalization for employees, retired under the provisions of theRetirement Plan for Hourly Employees because of disability or otherwise, shallterminate during the month following the month of retirement.

 

**Section D. CLAIMS PROCESSING.**The Company shall bear all necessary administrative expenses and agrees that inthe administration of the insurance plan, all claims shall be processed asexpediently as possible.  All mattersconcerning benefits provided under the insurance plan shall be governed by theterms and conditions of the insurance policy or policies purchased by theCompany.

 

**Section E. BENEFITS WAITINGPERIOD.** Employees shall become eligible for sickness andaccident insurance, life insurance and hospitalization/dental coverage afterthey have completed three (3) months of accumulated service, provided they arestill actively at work and have enrolled.

 

**Section F. ONE MONTH LAY-OFFCLAUSE.** All insurance coverage of an employee shall becancelled one (1) month following the month after lay-off date.  The employee may exercise the COBRA privilegeas described in Section G of this Article.

 

**Section G. COBRA.**If employment terminates for any reason other than gross misconduct, or if thehours worked are reduced so that medical coverage terminates, the employee andcovered

 

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dependents may continuecoverage under the Company plan as outlined in the Summary Plan Description,provided the employee and dependents are not covered under any other plan.  For the purpose of this provision, “grossmisconduct” means any violation of State or Federal laws.  Any employee who elects to continue coverageunder the Plan must pay the full cost of the coverage.

 

If an employee becomes divorced or legally separated,or if the employee’s dependent child is no longer an eligible dependent underthe plan, the employee or another family member must notify the Company withinsixty (60) days.

 

**Section H. PLAN 125.**An employee may choose to have their employee contribution forHospitalization/Dental Coverage deducted on a pre-tax basis toward their shareof the cost of the benefits.  Theemployee should refer to the Summary Plan Description of the Benefit Plan forthe Employees of Conn-Selmer, Inc. for details regarding this program.

 

**Section I. JURY DUTY.**An employee who has completed his/her probationary period and who serves as ajuror during his/her regular work week, Monday to Friday, inclusive, shall beexcused from work for the days required to serve, and will be paid eight (8)hours at average hourly earnings (excluding night shift differential) for eachday of jury service.  The employee mustpresent satisfactory evidence.  If an employeeworks his/her regular shift in addition to performing jury duty, he/she shallnot qualify for payment under the provisions of this paragraph.

 

In order to qualify for Jury Duty pay, an employeemust present the Company with Notice to Report within two (2) working daysfollowing receipt of such notice.

 

**Section J. BEREAVEMENT PAY.**An employee who is actively on payroll and has completed his/her probationaryperiod will be granted as an excused absence, in case of death in his/herimmediate family and shall, following the date of death, receive three (3)working days off with payment of his/her average hourly earnings, excludingprior personal or sick leaves of absence. The members of the immediate family are considered to be father, mother,husband, wife, brother, sister, son, daughter, mother-in-law, father-in-law,step-parents, step-children, grandparents or your spouse’s grandparents.  Bereavement days occuring during an employeesvacation will displace vacation days (Example: Employee is on a two (2) week vacation and a death occurs in theimmediate family, employee returning to work as scheduled will only be chargedwith seven (7) vacation days). Bereavement days occuring during a holiday will be taken immediatelyafter the holiday.

 

**Section K. RE-NEGOTIATION.**It is understood and agreed between the parties hereto that all economicissues, including, but not limited to wages and so-called fringe benefits havebeen fully negotiated between the parties and shall not be subject to furthernegotiation during the life of this Agreement but all other matters notspecifically set forth in this Agreement shall be subject to negotiation duringthe term of the Agreement.

 

**“COMPANY RULES, REGULATIONS ANDPOLICIES”**

 

In every business wheremany people work together, some specific rules and regulations are necessary todefine acceptable conduct and to promote the smooth functioning of the businessas a whole.

 

The purpose of thefollowing rules is to insure all employees safety and fairness in theircooperative effort, rather than to place restrictions on any one individual.

 

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The Company feels that a great majority of itsemployees want to play the game fairly and will abide by the rules where theyare known.  For this reason, we have setforth acts of misconduct which, if committed, will result in appropriatedisciplinary action.

 

When an employee is being counseled in line with adiscipline problem, the steward will be involved at the department level andthe Chairman of the Shop Committee at the Human Resources level.

 

**INFRACTIONS OF A MINOR NATURE**

 

1.         Absencewithout an authorized reason.

 

**16-HourPolicy:**

 

a)         Accumulated16 hours or more absence during a four (4) week period.

 

b)        Excusesmay be granted upon presentation of doctor’s report, or court order (under theterms defined by Article II., Section E.).

 

2.         Tardinesswithout an authorized reason.

 

**Lateness:**

 

a)         Five(5) latenesses in a four (4) week period.

 

**Late fromLunch:**

 

a)         Notbeing at the work station by 11:45 a.m. will be considered late from lunch.

 

3.         Loafing,neglect or failure to perform assigned duties.

 

4.         Improperuse of Company property.

 

5.         Violationof safety rules.

 

6.         Failureto be in assigned area or at station at required time.

 

7.         LeavingDepartment or job prior to authorized time.

 

8.         LeavingDepartment to use phone without obtaining required pass.

 

9.         Creatingor contributing to unhealthful or unsanitary condition, or displaying signs,obscene pictures or literature or distributing them.

 

10.       Neglectof duty or failure to meet reasonable measure of efficiency or productivity ornegligence resulting in inferior work, scrap, or waste.

 

11.       Runningor in any other way creating a condition hazardous to the individual or fellowemployee.

 

12.       Failureto wear assigned safety garments or use of assigned safety equipment.

 

13.       Solicitationof employees for donations or memberships in outside organizations, circulationof petitions or magazines in the Plant area without specific approval of theHuman Resources Department.

 

14.       Beingin an area unauthorized in the Plant or on Plant property.

 

15.       Gamblingof any type.

 

16.       Changinga certain phase of a set operating procedure without proper authorization.

 

17.       Postingof notices or signs or writing in any form on official bulletin boards orremoval of approved notices without approval of the Human Resources Department.

 

18.       Leavingthe Plant at break or lunch period and not returning without permission ornotification.

 

19.       Enteringor leaving the Plant by other than the authorized area assigned.

 

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20.       Subtleforms of harassment, intimidation, or inappropriate language or behavior.

 

21.       Smokingin non-designated, low fire hazard areas.

 

22.       Failureto enter or improper entering of labor reporting.

 

**ANYEMPLOYEE COMMITTING ANY OF THE**

 

**ABOVEOFFENSES** is subject to:

 

1st offense - written warning

 

2nd offense - written warning

 

3rd offense - written warning with counseling withDepartment Steward.

 

4th offense - written warning with counseling withChief Shop Steward.

 

5th offense - dismissal

 

All warnings will remain in effect twelve (12) monthsfrom time of infraction.

 

**INFRACTIONS OF A MAJOR NATURE**

 

1.         **Excessive Absenteeism:**

 

a)         Includesthe following missed work time:

 

•          60 hoursaccumulated lost time per three (3) months includes:

 

•          Out Early,excused and unexcused

 

•          Absences,excused and unexcused

 

•          Alllatenesses

 

•          Leave ofabsences, personal/medical/FMLA, if approved will not count toward hoursincluded under the Excessive Absentee Policy.

 

1st Offense - Writtenwarning with counseling by Human Resources

 

2nd Offense - Writtenwarning with three (3) days suspension

 

3rd Offense – Dismissal

 

All warnings will remainin effect until the one (1) year anniversary date from the date of infraction.

 

2.         Insubordination(willful disobedience of authority).

 

3.         Theft.

 

4.         Bringing,having or consuming intoxicating beverages or narcotics in the Plant or onPlant property.

 

5.         Smokingin high fire hazard areas (Department(s) 50, 51, 52, 55, Oil Room, Truck Docks,Warehouse, and Hazardous Waste Storage Area).

 

6.         Willfuldamage to or unauthorized removal or appropriation of or defacing propertybelonging to the Company or another employee.

 

7.         Walkingoff the job.

 

8.         Punchinganother employee’s time card in or out resulting in pay for time not worked.

 

9.         Falsificationof personnel records.

 

10.       Possessionof firearms or any type of weapon on company property.

 

11.       Physicalviolence, aggressive retaliatory actions, verbal threats, patterns of continuedintentional harassment, sexual harassment, or any serious violation ofdiscrimination laws.

 

34

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12.       Flagrantviolation or reckless disregard of any safety rule or policy which places theemployee or others in danger.

 

13.       Beingon company property while under the influence of alcohol, or any other illegalor controlled substance.

 

**ANYEMPLOYEE COMMITTING ANY OF THE ABOVE OFFENSES IS SUBJECT TODISCIPLINE UP TO AND INCLUDING DISCHARGE.**

 

**ARTICLE XV - DURATION OFAGREEMENT**

 

**Section A.**  The Union and the Company mutually agree thatall of the provisions of the Agreement shall remain in full force and effectwithout change up to and including February 15, 2008, unless changes by mutualagreement and shall continue from year to year thereafter unless at least sixty(60) days prior to February 15, 2008, or sixty (60) days prior to anyanniversary date thereafter, either party notifies the other, in writing of itsdesire to terminate, modify, or change the Agreement.

 

**Section B. RETIREMENT AGREEMENT**.It is agreed that all the provisions of the Retirement Agreement for HourlyEmployees will be continued to February 15, 2008, in order to coincide with theexpiration of that Contract.

 

IN WITNESS WHEREOF, theparties have executed the foregoing Agreement this 21st day ofFebruary, 2005.

 

U.A.W. LOCAL 2359

Robert A. Brown

Bryant Harvey

Rory Krause

Randol G. Lang

Jack Carlos Swanson

 

INTERNATIONALREPRESENTATIVE OF U.A.W.

Linda K. Romanik

 

CONN-SELMER, INC.

# Michelle C. Hammer

# Linda Iliano

# Robert R. Stone

# Richard J. Vacha

# David B. Woodruff

 

**MEMORANDUM OF AGREEMENT**

 

Effective February 17,1997, by mutual consent, the job classifications for Polisher (5A41) and Buffer(5A42) will be recognized as separate jobs from this day forward.  All previous related

 

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memorandums of agreementwill be considered null and void, and will not be recognized from this dayforward.  This agreement does not changeany portions of the current bargaining agreement, nor does it change any otherestablished employment practice not specifically discussed.

 

**MEMORANDUM OF AGREEMENT**

 

Effective February 17,1997, by mutual consent, the overtime hours for a five (5) hour Saturdayclean-up schedule, within departments 50 and 52, will be rotated between thosethat volunteer for the available positions. Only employees from departments 50, and 52 will be eligible to volunteerfor the available positions.  The setpositions on this clean-up crew will be assigned by the company.

 

This policy will notapply to a three (3) hour Saturday clean-up schedule within departments 50, and52, or to any other overtime schedule in other areas of the shop.

 

This agreement does notchange any portions of the current bargaining agreement, nor does it change anyother established employment practice not specifically discussed.

 

Letter of Understanding:

 

In the event the companydetermines to outsource or subcontract work performed at the facility, it willmeet with the union to discuss the matter further.  While the company will endeavor to preservework at the facility, all outsourcing or subcontracting options will only beused to improve the competitiveness of student trumpets, student cornets, andstudent trombones, and also specifically the 3⁄4 Baritone (Model 623).  Other instruments may be added with mutualagreement with the company and the union.

 

Letter of Understanding:

 

The cost of “emergency”medical treatment, for what was considered to be a “certified” work relatedincident, that was later denied payment by the OBWC and the employee’s medicalinsurance, will be reimbursed by the company. “Non-emergency” injuries or illnesses, that may not be work related, orthat will not be granted “certification” by the company, will be referred tothe employee’s physician; and, if denied will not be eligible forreimbursement.

 

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Letter of Understanding:

 

In the event the companydetermines to insource production operations normally performed at othermanufacturing facilities, or develop and refine production operations for othermanufacturing facilities, these same operations will not be construed aspermanently assigned to this manufacturing facility.  This understanding, under these terms,permits the company to restore, implement, or move these same productionoperations to other alternative manufacturing facilities.

 

Letter of Understanding:

 

An employee promoted to asupervisory or managerial position, or appointed or elected to an assignmentwith the international union, shall be granted such leave, and shall beguaranteed reemployment in the same or like position, in line with his or herseniority at the prevailing rate of pay. Seniority shall accumulate during such leaves; however, all benefitsprovided under the terms of this collective bargaining agreement shallterminate effective with the commencement of the said leave, and shallreinstate upon return from said leave (based upon the benefit levels, plans,and contributions in effect at that time). Return rights, for either assignment, will be limited to one occurrenceper individual for future leave requests. Any current leaves will not be accommodated under these defined terms.

 

Letter of Understanding:

 

The company agrees tomaintain the payroll cycle on a weekly basis, and to provide continued accessto direct deposit.  Voluntary, after-taxdeductions may be combined with the normal union dues deduction (when processedeach month).  Any additional, voluntaryafter tax deductions must be summarized and submitted with the monthly uniondues check-off list.

 

### Letter of Understanding

 

Employees, asked toperform work on regularly scheduled holidays, will postpone holiday pay to anequivalent number of additional personal holiday(s).  Any additional personal holidays, accumulatedin this manner, will be subject to the same defined terms as identified underArticle VII., Section C., d., #3.

 

### Letter of Understanding

 

Employees that were previouslydisqualified from the job being recalled, will be bypassed, and will retaintheir relative position on the recall list. Internal job bids will only be compared to the relative seniority,qualifications, and job factors that are presented by the next employeeeligible for recall from the layoff list.

 

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Letter of Understanding

 

During the term of thisagreement, if the company should permanently close the Eastlake Facility or ifthe company should take action resulting in the permanent displacement of atleast 25% of the employees actively working as of February 15, 2005, uponrequest by the union the company will engage in negotiations with the unionover the effects of permanent closure or permanent displacement on thoseaffected employees.

 

Letter of Understanding

 

The company has reviewedthe feasibility of installing showers for the polishing, buffing, and colorbuffing departments and has agreed to install three (3) showers within one (1)of the existing restrooms.

 

Letter of Understanding

 

To better facilitate leanmanufacturing in the rough assembly departments the company and union haveagreed to combine Departments 35 and 38.

 

Letter of Understanding

 

The company has agreed toconduct periodic air quality monitoring of the Eastlake facility.

 

Letter of Understanding

 

In an endeavor toimprove quality, the company and the union have agreed to develop a responseteam(s) to address issues impacting / impeding the facility in meetingproduction requirements.

 

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U.A.W. LOCAL 2359

 

 
| /s/ Robert A. Brown                     |             | /s/ Bryant Harvey    |   |
|-----------------------------------------|------------------|----------------------|--------|
| Robert A. Brown                         | Bryant Harvey    |
|                                    |             |
|                                    |             |
| /s/ Rory Krause                         |             | /s/ Randol G. Lang   |   |
| Rory Krause                             | Randol G. Lang   |
|                                    |             |
|                                    |             |
| /s/ Jack Carlos Swanson                 |             |                 |
| Jack Carlos Swanson                     |             |
|                                    |             |
|                                    |             |
| INTERNATIONAL  REPRESENTATIVE OF U.A.W. |
|                                    |             |
|                                    |             |
| /s/ Linda K. Romanik                    |             |                 |
| Linda K. Romanik                        |             |
|                                    |             |
|                                    |             |
| CONN-SELMER,  INC.                      |
|                                    |             |
|                                    |             |
| /s/ Michelle C. Hammer                  |             | /s/ Linda Iliano     |   |
| Michelle C. Hammer                      | Linda Iliano     |
|                                    |             |
|                                    |             |
| /s/ Robert R. Stone                     |             | /s/ Richard J. Vacha |   |
| Robert R. Stone                         | Richard J. Vacha |
|                                    |             |
|                                    |             |
| /s/ David B. Woodruff                   |             |                 |
| David B. Woodruff                       |             |

 

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