**Exhibit10.3**

** **

**A  G R  E  E  M  E N  T**

 

 

between

 

 

**CONN-SELMER,  INC.**

 

 

and

 

 

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

 

 

May 5, 2003

 

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**COLLECTIVE BARGAINING AGREEMENT**

 

THE AGREEMENT, made and entered into as of the 5th day of May, 2003 byand between CONN-SELMER, INC., whose office is located at 34199 CurtisBoulevard, 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 to the optimum utilization of humanresources and equal opportunity.  Jobapplicants and employees are evaluated on the basis of job qualifications – notage, disability, gender, national origin, race, religion, or any other legallyprotected group characteristic.  Thecompany and the union are committed to maintaining a place of employment thatis safe, productive, and free from any form of harassment or violence.  The company and the union each agree thatthey shall not discriminate against any employee who exercises any legallyprotected rights.  The company will notdiscriminate against any employee because of membership in the union.

 

**ARTICLEI - MANAGEMENT**

 

**SectionA.** Subject to the provision of this Agreement, it isexpressly understood and agreed that the right to manage the Plant and directthe work force is vested exclusively in Management and that all rights notspecifically modified in the Agreement are retained by the Company includingthe rights to hire, suspend, or discharge for proper cause, or transfer, andthe right to relieve employee from duty because of lack of work, or for anyother legitimate reason are vested exclusively in the Company, provided thatthis will not be used for purpose of discrimination against any member of theUnion.

 

**ARTICLEII - RECOGNITION**

 

The Company recognizes the Union as the sole and exclusive bargainingagency for all its employees (except supervision, plant protection, officeworkers and casual employees) with respect to rates of pay, working conditionsand hours or days of work.

 

**ARTICLEIII - REPRESENTATION**

 

**SectionA. UNION SHOP COMMITTEE.** The Union shall be represented by aShop Committee of not more than five (5) members nor less than three (3)members, all of whom shall be employees of the Company, shall have completedtheir probationary period with the Company as herein provided, and shall bechosen 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.  National Union Officials may becalled in by the Shop Committee to assist in these negotiations.

 

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**SectionB. DEPARTMENTAL STEWARDS.** The Union, in addition to the ShopCommittee, shall be represented by Departmental Stewards who shall be employeesof the Company, having completed their probationary period, and shall be chosenby and from members of the Union on a basis of one (1) Steward for eachSupervisor, with the assurance of a minimum of one (1) Steward for each workshift 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.

 

**SectionC. COMMITTEE CHANGES.** The Union agrees to keep the Companyinformed at all times of who constitutes the Shop Committee and the Stewards’Committee, also when changes in said Committees are made.

 

**SectionD. DISCIPLINARY ACTION: SHOP COMMITTEE AND STEWARDS.** Atwenty-four hour grace period will be given to the Shop Committee and DepartmentStewards when they are personally involved in disciplinary action that warrantssuspension or discharge, the Chairman will be advised of disciplinary actionfor investigation before disciplinary action takes effect.

 

**ARTICLEIV - NORMAL HOURS AND OVERTIME**

 

**SectionA. NORMAL WORK WEEK.** For shop employees which may be workedwithout payment of overtime, for all hourly rate employees shall consist offive (5) days, Monday through Friday, of eight (8) hours each.

 

**SectionB. TIME AND ONE-HALF.** All work performed in excess of eight(8) hours during any regular working day or work performed on Saturday, outsideof the week as above defined, shall be paid for at the rate of time andone-half.

 

**SectionC. OVERTIME.** Employees shall be paid time and one-half forall time worked prior to their scheduled starting time or after their scheduledquitting time, once they have completed 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.

 

**SectionD. LATENESS.**  It hasbeen established that if an employee is going to be late for work, he/she mustcall his/her Supervisor or Guard and advise him/her at what time he/she willarrive.  This must be done within 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.

 

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**SectionE. ABSENCE.**  It hasbeen established that if an employee is going to be absent from work, they mustcall their Supervisor or Human Resources and advise them that they will beabsent.  This should be done within two(2) hours from starting 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’sslip must 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 dependupon the number of warnings the employee’s personnel record can support, to amaximum of nine (9) days.  Any time injail beyond what

 

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the employee’s record can support will lead todismissal.  Should the employee not beconvicted, all jail time will not be charged against the 16 Hour Policy.

 

**SectionF. 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 orbusiness.  Insurance and Hospitalizationbenefits will continue.  Any grievancearising out of the application of the provision shall be subject to negotiationbetween the Company and Union.

 

Examples of suchabsences are personal business, court appearances, doctor’s appointments,family illness, etc.  Company mayrequest verification.

 

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 withoutprejudice to seniority for one or more of the following reasons:

 

a)                                      Deathor serious illness in family.

 

b)                                     Personalaffairs involving legal settlement.

 

During such leaveof absence, the employee shall only accumulate seniority and all benefits aretemporarily withheld until employee returns, at which time the benefits will bereinstated.

 

3.                                       Employeesshall be granted a leave of absence for illness or injury causing confinementto a Hospital, Sanitarium, 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 periodof time equal to one-half (1/2) their seniority.

 

b)                                     Four(4) or more years seniority.  A periodof time equal to their seniority.

 

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.

 

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

 

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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 and Life Insurancebenefits shall continue and they shall only terminate in these cases upon thetermination of the leave under the above schedule, or at the end of three (3)years from the time they began their leave of absence, whichever shall occursooner.  Insurance benefits foremployees of ten (10) or more years seniority shall continue for the length oftheir seniority during leaves of absence due to personal illness orinjury.  Coverage ofHospitalization/Dental Benefits are paid for a period of one (1) year.  Employees are responsible forHospitalization/Dental Contribution amount during leave period.  Such benefits shall not increase during theperiod of the leave of absence.

 

10.                                 Familyand Medical Leave Act (FMLA)

 

An employee, under the terms specified for Family andMedical Leave, with twelve (12) months of service and at least 1,250 hoursworked, may be granted up to twelve (12) weeks of unpaid leave based on atwelve month rolling calendar for the following reasons:

 

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, medical certification and continueddocumentation for intermittent absences will be required for such absence inaccordance with the Act, and the regulations promulgated thereunder.

 

A.            Statusof Accrued Paid Time

 

If the leave is for the care of a spouse, parent,and/or child the employee may be required to take any remaining vacation daysat the beginning of the FMLA leave.

 

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If the need for FMLA is foreseeable (such as plannedsurgeries or normal births), thirty (30) day notice is requested.  If the need for FMLA is unforeseeable (suchas serious injury or illness, or a premature birth), you must notify thecompany as soon as possible, and in no event, more than two (2) days afterknowing of the need for a leave.  Formalnotice is further accomplished by submitting a FMLA Application Form.  FMLA Application Forms must be submittedwithin fifteen (15) calendar days of a return from an unforeseeable serioushealth condition for either the employee, or a defined family member, or theabsence will not be regarded as FMLA and will be subject to the terms of theattendance rules.

 

B.            Statusof Benefits

 

Health care coverages (as defined by COBRA) willcontinue under the same terms and conditions as while actively at work.  Employee will be responsible for continuingto make contributions to these plans while on leave.

 

FMLA leave will not constitute a break in theemployee’s record of continuous service and the period of such leave of absenceshall be included in the records as continuous service.  Employees, following FMLA leave, will be restoredto their original job and pay rate.  Theonly exception would be changes that would have affected the employee if he /she had not gone on leave.

 

These terms are subject to review if the correspondingFMLA regulations are revised or changed.

 

**SectionG. 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.

 

d)                                     Workers’Compensation injury or illness.

 

**WORKSCHEDULE** - The employee is to be notified on Friday, by 2:30p.m. if the work schedule for the coming week is going to be changed, so thatthe employee has enough time 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.

 

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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-** The Company agrees to seek volunteers for availableovertime by priority of classification, qualification, and overallseniority.  For the purpose ofmaintaining efficient operations and complying with customer requirements, theCompany shall have the right to institute daily overtime or to extend the workweek.  Lacking enough volunteers, itshall assign as many junior qualified employees as needed in thatclassification or department to perform the work.  In the application of this provision, no employee shall berequired to work in excess of ten (10) overtime hours per week and not for morethan three (3) consecutive weeks.  Alist of employees scheduled for Saturday overtime will be posted by 2:45 p.m.Thursday, and any disputes arising from the posted list must be communicatedbefore 2:45 p.m. Friday, otherwise a grievance for a seniority claim may not besubmitted.

 

**SectionA. DOUBLE TIME.** Work performed on Sundays shall be paid forat the rate of double time.  Workperformed on the twelve (12) Holidays in 2003, and the thirteen (13) Holidaysin 2004, 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 -Section C.

 

**SectionB. NO WORK.** When employees report for work, not having beenproperly notified in advance that there will be no work, and prevented fromperforming their jobs that day through no fault of their own, they shall beguaranteed four (4) hours work or four (4) hours pay at their straight time dayrate if no other work is available for assignments; in no event shall they bepaid 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.

 

**SectionC. NOTIFICATION OF ADDRESS CHANGE.** It is the responsibilityof each employee to keep the Human Resources Department informed of currentaddress and telephone number.  Attemptsto reach the employee at the telephone number currently listed in the HumanResources Department’s files shall constitute proper notice.

 

**SectionD. CALL BACK.** Any employee being called back to perform atask shall be paid no less than four (4) hours at straight time pay or whichever is higher, in the event of overtime or a Holiday.

 

**SectionE. TIME AND ATTENDANCE, LABOR REPORTING.** Each employee shallbe required to enter his or her own attendance and labor transactions into thedata collection system.  Employee shallbe responsible for the accuracy of the count and time entered for alltransactions.  Employees should be attheir appointed place of work when signal is given for work to begin and shouldremain at their work until signal is given to quit.

 

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**ARTICLEV - SENIORITY**

 

**SectionA. SENIORITY.**  Willcommence on the first day worked regardless of when employment was firstoffered by any Company representative.

 

**SectionB. PROBATIONARY PERIOD.** All new employees shall be consideredas on probation for a period of three (3) months accumulated service, exceptfor excusable absence, after starting date and during such period, shall not beentitled to any seniority rights under the provisions of this Article.  The performance of any new employee will beevaluated on each one (l) month anniversary date for the subsequent three (3)month probation.  However, after aperiod of two (2) months accumulated service, they shall be entitled to HolidayPay, and after three (3) months accumulated service shall be entitled to thePersonal Holiday.  After a probationperiod of three (3) months, seniority shall be determined as of the date theemployee started to work, and after a period of three (3) months accumulated serviceshall qualify for all benefits.

 

**SectionC. SUPERSENIORITY STATUS.** The Chairman of the Shop Committeeand all members of the Shop Committee handling all matters concerning theGrievance Procedure shall head the plant-wide seniority list during their termsof office.  Any member of the shopcommittee who at the time of election is on second or third shift will beassigned to the first shift within their respective classification.  Such shop committee member transferred fromother than first shift will replace the employee within their classification,with the lowest plant-wide seniority, unless they can be otherwise absorbedinto their classification.  This wouldnot apply to temporary transfers between shifts for up to thirty (30)days.  If there is a reduction in thework force during the term of office of the Grievance Committeeperson, theywill remain at work in their respective departments regardless of seniorityunless the entire department 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 DepartmentStewards shall head the seniority list in their respective departments duringtheir term of office.  Thissuperseniority status is applicable to layoffs only, and employees will returnto their original positions at the termination of their terms of office.

 

**SectionD. MEDICAL DISQUALIFICATIONS.** Medical conditions that createa permanent inability for an employee to perform their present job will resultin:

 

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).

 

c.                                       alay-off.

 

**SectionE. LAY-OFF PROCEDURE.** When it becomes necessary to reduce thework force for an indefinite period in a department, the reduction will be madeaccording to job classifications, and employees will be notified three (3)normal working days in advance.  It isunderstood and agreed that in all cases of reduction in workforce, seniorityshall be the determining factor so

 

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long as those employees remaining in affected job classifications havethe 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 thenormal defined term (one-half seniority to a maximum of three (3) years)effective with the date of lay off; however, recall rights will not be extendeduntil the employee 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:

 

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.

 

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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 during which to demonstrate ability tosatisfactorily perform the work with the opportunity for familiarization ofequipment and work area, without training. At the end of this period, employee must be performing above theguarantee rate or at the same production level as the displaced employee.

 

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 jobs in accordance with the above procedures shallbe paid at the current rate for the job.

 

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

 

**SectionF. RECALL PROCEDURE.** When it becomes necessary to recallemployees from layoff, or to re-man a department after a reduction, thefollowing 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:

 

a.               performed jobwithin the past ten (10) years.

 

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

 

c.               employee will havefive (5) days for familiarization and minimal training during which todemonstrate ability to satisfactorily perform the work.  At the end of this period, employee must beperforming above the guarantee rate.

 

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d.              if an employee failsto satisfactorily perform the work as required above due to lack of skills orabilities under this Section, the employee shall be placed on layoff status,with the right to recall only to his/her original job.

 

e.               employees acceptingjobs in accordance with the above procedures shall be paid at the current ratefor 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 bypassedshall retain 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 shouldre-open, the employee must return to that original job.  Employees bypassed shall retain theirrelative positions on the lay-off list.

 

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 becomeavailable, the Company shall exercise its prerogative to fill those vacancies,within the limitations of this Agreement, after having first advised the Union.

 

**SectionG. PLANT LAY-OFF AND TEMPORARY REDUCTIONS.** On a plant-widelayoff, affecting all departments, the work week shall not be less thanthirty-two (32) hours, consisting of four (4) eight (8) hour days, for a periodof not longer than six (6) weeks and then the Company and the Union shall meetto consider the advisability of continuing the thirty-two (32) hour week orreducing the number of employees according to seniority.  This clause does not

 

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apply to a temporary reduction in a certain department due to lack ofwork, shortage of material, overstock or temporary setback of production.  A temporary reduction in a department willbe of definite duration, not to exceed one (1) week, in which case employeeswill be 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 ofreducing the work force according to Article V, Section E.

 

**SectionH. SENIORITY FORFEITURE.** Employees shall forfeit seniorityif:

 

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 cause preventingthem from returning to work within three (3) days of receipt of notice.

 

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

 

**SectionI. SENIORITY ROLLS.** The Company shall furnish an accurateseniority roll showing the status of all employees covered by this Agreement, acopy of said roll shall be given to the Shop Committee on request.  The Company will also notify the Union inwriting of hiring, discharging, rehiring, furloughing, and transferring of eachand every employee, in order to keep the above mentioned seniority roll up todate.

 

**SectionJ. JOB POSTING & BIDDING.** Notices of vacancies or newjobs created will be posted on the job posting bulletin boards for a period ofthree (3) working days during which employees shall have the opportunity toadvance their status by filing an application for transfer to such jobs withthe Human Resources Manager.  If postedjobs are not filled in thirty (30) days, a one-day posting will be made beforea new employee is hired.

 

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, the lay-off list will bereferred to for qualified senior employees. If a laid off employee accepts the job, the job bid must be signed.  If an employee on the lay-off list refusesthe job, refer to Article V, Section F., #5 page 12.  If there is reasonable doubt as to the employee’s qualifications,a reasonable trial period shall be granted. Should any employee disqualify themself during the five (5) day trialperiod, they shall have return rights to

 

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their previous job.  Once theemployee is accepted for the job, and once the employee completes the five (5)day trial period, 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 be automaticallyinvoked upon the issuance of the third infraction of a minor nature for failingto meet a reasonable measure of efficiency (Infraction of a Minor Nature#10).  Employees who are disqualified inthis manner will relinquish recall rights to any previously disqualified job,and all warnings on record will continue for the remainder of their terms oncethe 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., Page 13 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 training classifications may not beconsidered a permanent position.  Anyemployee within Trainee A can bid on Rough Assembly jobs within departments 35and 38, and will not be required to complete one year of service.   However, any subsequent transfer to roughassembly (either by bid or placement) will require employees to complete oneyear of service.

 

Any subsequent job openings in rough assembly will befilled predominantly by employees from this training classification.  This, however, is not intended to preventany of 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 seniorityprevailing.  If no eligible bids arereceived 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 most senior employeemay exercise shift preference from one shift to another, within a jobclassification, within a department, provided a vacancy exists.  The company reserves the right totemporarily postpone shift preference, to a maximum of one (1) year, withinclassifications that require extended training or supervision (specifically5A41 – Polisher, 5A42 – Buffer, and 5A35 – Color Buffer).  All transfer requests shall be answered ifrejected for seniority, qualifications, or curtailment of production.

 

14

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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 a period of one (1) year. 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 the same Labor Grade, will be accepted only when the earning potential ofthe employee will be significantly improved by the downward or lateraltransfer.

 

It is understood that requests for transfer will beconsidered on an individual basis, taking in account all the factors presentedat the time the request for transfer is submitted.

 

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.

 

**SectionK. TRAINING PAY REDUCTION.** It is mutually agreed that when anemployee bids into a new job, their actual hourly rate will be reduced by nomore than twenty-five cents ($.25) an hour from the top of the newclassification rate to absorb the training process and the Company agrees toelevate the employee towards the top of the rate as they progress during thetraining period or when employee is capable of performing all duties assignedin job grade, according to the following schedule:

 
| Day Worker   | -      | increase in 30 days                                                             |
|--------------|--------|---------------------------------------------------------------------------------|
|         |   |                                                                            |
| Piece Worker | -      | increase when employee achieves base rate; but in no  case, longer than 60 days |

 

**SectionL. SENIORITY GRIEVANCES.** Any grievances arising out ofseniority shall be subject to negotiations between the Union and the Company.

 

**SectionM. NOTIFICATION OF JOB STATUS.** In laying off, furloughing, ortransferring any employee, the Company Representative shall notify the Chairmanof the Shop Committee and the employee in such layoff, furlough or transfer assoon as practical.

 

**SectionN. TRANSFER INTO BARGAINING UNIT.** Employees who were notemployed in the bargaining unit at any time during their period of employmentwith the Company and who are transferred into the bargaining unit shall becredited with seniority from the date of transfer into the bargaining unitafter having served their probationary period.

 

15

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**SectionO. REASSIGNMENT TO BARGAINING UNIT.** Employees who were, ormay be transferred or promoted from jobs within the bargaining unit to jobsoutside the bargaining unit shall retain their seniority but shall notaccumulate seniority while working on such jobs.  In the event such employees are transferred into the bargainingunit, they shall be placed on available jobs where they are best qualified inline with their seniority, but shall not be entitled to exercise their seniorityto displace any regular full-time employee within the bargaining unit for aperiod of ninety (90) days from the date of transfer.

 

**SectionP. DISCHARGE PROCEDURE AND GRIEVANCES.** Should an employee besubject to discharge, he/she shall be advised of the reason for suchaction.  The Company shall then requestthe presence of the Chairman of the Shop Committee to discuss the cause withhim/her before he/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.  Suchprotest will 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.

 

**ARTICLEVI - GRIEVANCE PROCEDURE**

 

**SectionA. INTENT OF DISPUTE ADJUSTMENTS.** It is the intent of theparties to this Agreement that the procedure herein set forth serve as apeaceful means for the adjustment of all disputes that may arise between them.

 

**Section B. NO STRIKE / NO LOCKOUT.**  The union agrees that it will not encourage,sanction, or approve any strike, handbilling, sympathy strike, or otherinterruption of work growing out of any dispute.  On the contrary, the union will actively discourage and endeavorto prevent or terminate any strike, stoppage, slowdown, or other interruptionof work.

 

The company agrees that neither it nor its representatives will putinto effect any lockout during the term of this agreement.

 

**SectionC.** Any grievance relating to the issuance of a warning mustbe submitted to the following grievance procedure within fourteen (14) calendardays following the issuance of said warning to the employee(s), otherwise theaction is regarded as accepted.  Theunion, whenever a warning is issued, will be immediately furnished a copy ofthe written warning upon issuance to the employee.  Whenever a grievance arises, the following steps shall be takento ensure proper and timely handling:

 

**Step 1.**

 

An employee with a problem, complaint or question willdiscuss the details of the complaint with the Supervisor and the DepartmentSteward.  Who, after investigating

 

16

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complaint or problem, will determine if there iscause.  The Supervisor, within a 24 hourperiod, will give a formal answer to the employee in the presence of theDepartment Steward.

 

**Step 2.**

 

Failing satisfactory settlement with the Supervisor, agrievance shall be written, at which time employee and Department Steward shallpresent the written grievance to the Supervisor who will submit the grievanceto a Company Representative selected by the Company, who will within a five (5)day grace period, conduct a meeting of all parties involved in an attempt toresolve the issue.

 

**Step 3.**

 

If the issue is still not resolved, the written grievancewill be taken up in a meeting with the Grievance Committee and a Representativeof the Company within ten (10) working days of the notice of rejection tosettlement 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 Executive VicePresident or his representative and the Union’s National 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 submitwritten rejection to the 3rd step outcome, within the specified timelimits in the 4th step of the grievance procedure, then thegrievance shall be considered settled on the basis of the last position – infavor of the union in situation (a), or in favor of the company in situation(b).

 

**Step 5.**

 

If the grievance is not settled pursuant to the stepsin the grievance provisions of this agreement, then either party shall, withinthirty (30) calendar days after any Step 4 grievance answer submit thegrievance to arbitration.  Both thecompany and the union agree to utilize expedited arbitration as a preferredmethod.  Post hearing briefs will bepermitted only by agreement of the parties or by direction of the arbitrator ifone party so requests.

 

The employer and the union shall agreeupon a list of three (3) arbitrators to serve for the duration of thisagreement.  When either party requestsarbitration pursuant to Section C., Step 5., the parties shall meet withinseven (7) working days to select an individual from this panel to hear saidmatter.  The arbitrator will be selectedby process of rotation.  As soon as theparties select the arbitrator, they shall jointly request a hearing date be setas soon as possible subject to the availability of the parties.  If the parties and the arbitrator

 

17

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are unable to agree upon a date withinthirty (30) days of contact with the arbitrator, then the parties, by mutualagreement, may immediately select another arbitrator.  No more than thirty (30) days after submission of the case to thearbitrator, the arbitrator will issue his / her award.  The parties agree to accept the arbitrator’saward as final and binding upon them; however, the arbitrator shall have nopower to add to, subtract from, or modify any of the terms of this agreement.

 

The cost of the arbitrator, and meetingroom shall be shared equally by the parties. Any other expense (such as attorney, transcript, or witness or advocatefees) must be paid by the party incurring such expense.

 

No aggrieved party shall have any right to invoke thegrievance procedure provided above, or the arbitration procedure providedabove, unless the matter of such grievance has been presented as providedabove.

 

**ARTICLEVII - WAGES**

 

**SectionA. NEW EMPLOYEE CLASSIFICATION.** Any new employee may beemployed in any bracket or classification to be determined by their pastexperience.

 

**SectionB. MINIMUM HIRING RATES AND INCREASES.** The minimum hiringrate for new employees will be twenty-five cents ($ 0.25) below the top ofthe corresponding job grade.  Hourlywage rates, reduced for new hires, will be elevated to the top of thecorresponding job grade by the end of their three (3) month probation.

 

**SectionC. HOLIDAYS.** The Company shall pay all employees withseniority covered by this Agreement at their average hourly earnings for thefollowing Holidays, to be observed on designated dates:

 

a.          2003:

 

Monday, May 26 - Memorial Day

 

Friday, June 27 - Independence Day (Observed)

 

Monday, September 1 - Labor Day

 

Thursday/Friday, November 27 & 28 - ThanksgivingHolidays

 

Thursday/Friday, December 25 & 26 - ChristmasHolidays

 

Monday/Tuesday/Wednesday, December 29, 30, & 31 -(3) Floating Holidays

 

Monday, January 1 - New Year’s Holiday

 

b.         2004:

 

Friday, April 9 - Good Friday

 

Monday, May 31 - Memorial Day

 

Friday, July 2 - Independence Day (Observed)

 

Monday, September 6 - Labor Day

 

Thursday/Friday, November 25 & 26 - ThanksgivingHolidays

 

Friday/Monday, December 24 & 27 - ChristmasHolidays

 

Tuesday/Wednesday/Thursday, December 28, 29, & 30- (3) Floating Holidays

 

18

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Friday, December 31 - New Year’s Day

 

c.          Personal Day to be used as requested by employee:

 

1.               Two weeks noticemust be submitted prior to the day being requested, seniority prevailing, whencombined with other regularly scheduled holidays.

 

2.               Must be approved byHuman Resource Manager.

 

3.               The PersonalHoliday, if used at any other time, can be merely taken with advance or“call-in” notice.  However, the PersonalHoliday 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.

 

**HOLIDAYPAY QUALIFICATIONS.** Absence from work without permission orapproval of the Company and Union Shop Committee the working day prior to, orthe working day following paid Holidays will result in forfeiture of HolidayPay unless the Company and Union agree that the employee has a reasonableexcuse for payment of Holiday Pay which is:

 

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 ResourceManager, and the employee must furnish ‘documentation’ proving the legitimacyof such emergency upon return to work. Human Resources will determine if payment for the holiday(s) is to bemade under these conditions.

 

**SectionD. SPECIAL RATES.**

 

a.                                       **INSTRUCTORPAY.** The Company may appoint new instructors to train one or moreemployees for the job.  For the timespent instructing, they

 

19

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will receive fifteen cents ($.15) per hour over theirKing bracket rate or their average piecework earnings whichever is greater.

 

b.                                      **GROUP LEADERPAY.** The Company will pay group leaders at least ten cents ($.10)per hour over the day rate of the highest classification of the employee thathe/she leads.

 

c.                                       **TEMPORARYTRANSFERS.** When an employee’s work is in two (2) or more LaborGrades, he/she shall carry the higher rate. Temporary transfers can be made as an interim work assignment duringtemporary periods of no work, for up to six (6) weeks, leaving the affectedemployee an opportunity to return to their normal job. Temporary transfers,under these circumstances, will be further extended if mutually agreed by thecompany and the union.

 

d.                                      **NEW HORNS.**A new or revised procedure, or a new or prototype horn, that is unlike anyestablished operation, that cannot be assigned a temporary rate, will be paidat average overall earnings.

 

e.                                       **SHIFTDIFFERENTIALS.** Employees working on the second shift shall receiveadditional compensation of fifty cents ($.50) per hour.  Employees working on the third shift shallreceive additional compensation of seventy-five ($.75) per hour.

 

**ARTICLEVIII - INCENTIVE WORK**

 

The normal cycle time per piece will be established by time study of ajob at normal working conditions.

 

Variable allowances will be determined for theoperation and converted into minutes per piece.

 

A constant allowance of 20 minutes per day for restperiods and wash-up time plus 24 minutes for personal and fatigue totaling 44 minutesper day or 5.5 minutes per hour will be allowed except for the PolishingDepartment, where an additional 5 minutes wash-up time is allowed making 49minutes per day or 6.125 minutes per hour.

 

Sixty minutes minus the constant allowance will be thenet operating time per hour.

 

The net operating time per hour divided by the normalcycle time per piece plus the variable allowance will equal the number ofpieces per hour.

 

The reciprocal of the number of the pieces per hourwill equal the standard hours per piece.

 

EXAMPLE:

 
|                         |   | **min. per pc.** |   |
|------------------------------|--------|------------------|--------|
| Normal cycle  time per piece |   | 1.520            |   |
| Variable  allowance          |   | 089              |   |
| Total normal  time per piece |   | 1.609            |   |

 
|                |   | **min. per hr.** | ** ** |
|---------------------|--------|------------------|------------|
| Constant  allowance |   | 5.5              |       |
| Net operating  time |   | 54.5             |       |

 

20

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Standard number pieces per hour =

...54.5 divided by 1.609 = 33.87 pieces per hour.

Standard hour per piece = .0295

Piecework price = standard hours per piece x base rateof the work classification

(1.64) = .0295 x 1.64 = .0484 each or $4.84 per 100

 

When the standard has been established as above, theemployee shall be notified of the standard.

 

Payment for incentive work shall be the earned hourstimes the base rate as established by the job evaluation program.  The employee being guaranteed on anyoperation or group of operations as established in the time study, a minimumearnings equal to his/her regular straight time hourly rate for KingInstruments and his/her Cleveland Guaranteed Rate of Cleveland Instruments.

 

**SectionA. TRIAL PERIOD.** Shall be no shorter than thirty (30) daysand a minimum of two (2) complete runs of an operation by the employee afterthe rate has been established and the employee has been notified of therate.  During the trial period, theemployee may request the Supervisor to furnish the facts concerning the timestudy.

 

The employee may protest a standard by filing awritten grievance with Management within five (5) working days after the abovesaid trial period has been completed. Company will notify the Shop Steward when the above said trial periodhas been completed.  It is understoodthat before such a grievance if filed, the elements of the study beingquestioned must first have been discussed by the employee with his/herSupervisor, a Committeeperson and the Time Study person.

 

The Company agrees to give top priority to retiming ofany operation whose standard is under protest and will guarantee the employee’shourly day rate until the operation has been retimed and/or accepted.  Union to receive notice at completion ofretiming.  If the employee can makethirty percent (30%) in excess of his/her day rate during the trial period, therate will remain in effect as an accepted rate.

 

Management reserves the right to:  retime all elements effected; reset thestandard on any operation when there is a change in method, material, design ortooling; establish a maintenance system for all piecework rates.  (A maintenance system is a method to makesure all operations and elements are being completed).  Clerical error may be corrected at anytime.  The employee shall be guaranteedhis/her hourly rate when there are substandard tools or materials.

 

**SectionB. RESTUDY.** It is agreed that Management may restudy anyoperation where it feels that increase productivity through new processes, newtooling, equipment and methods could be applicable.  Management may restudy any operation where:

 

a.                                       rateshave been arbitrarily set, or

b.                                      thereis no proper documentation for the present rates

 

It is to be significantly understood that any resultant changes willnot adversely affect the employees’ earnings. It is also Management’s desire to enable employees to increase theirearning through increased efforts.

 

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**SectionC. PIECEWORK METHOD/PLAN.** It is Management’s intention, withthe cooperation of the Union Committee, to attempt to find a PieceworkMethod/Plan that will incorporate and/or eliminate the tack-on into thepiecework rate to enable employees to realize full proportionate earnings forincreased effort yet at the same time keep production of musical instrumentscompetitive with the market.

 

No Company Representative or their Representativesshall be placed upon a productive job for the purpose of setting up orestablishing any or all piecework or other standard rates; however, in theevent a time study has been protested, Management shall reserve the right touse any method it sees fit to verify the study.

 

**SectionD. REWORK/SCRAP.** It is the Company’s Policy to pay for onlygood pieces.  That is, the Company doesnot pay for work which must be reworked or scrapped.

 

If faulty work can be corrected by the employee whowas responsible for it, he/she must do it on his/her own time.

 

If the faulty work must be done by another employee,credit will be given to the original employee for the piece price less therework cost of those pieces.

 

The above does not apply if the cause is beyond thecontrol of the employee.

 

**SectionE. WORK OUTSIDE OF CLASSIFICATION.** When an employee onincentive, whose regular work is scheduled, is assigned to a job that is a typeof work outside of his/her classification, he/she shall be guaranteed his/her averageearnings.  This premium is only to bepaid:

 

1.             Inthe event an employee of lesser seniority remains on incentive in theclassification from which the employee was displaced.

 

2.             Ifin the pay period anyone remaining in the classification from which theemployee was displaced is working overtime. This does not apply on Saturday unless another employee remaining in theclassification is working.

 

Employees on incentive shall receive time and one-halffor all overtime worked.  The pay to becomputed on the average hourly earnings for the week the overtime is worked.

 

**JOBCLASSIFICATION AND BASE RATES EFFECTIVE.**

 

Effective February 19, 2003, two percent (2%) shall be added to allpiecework rates.  A general wageincrease of two percent (2%) shall be added to all daywork and guaranteedrates.

 

Effective February 16, 2004, two percent (2%) shall be added to allpiecework rates.  A general wageincrease of two percent (2%) shall be added to all daywork and guaranteedrates.

 

For Time Study purposes, Base Rate plus Tack-On will add up to Max DayRate.

 

*Recall Jobs –Article V., Section F., #3, Page 12.

 

**#1 Grade**

 
|                               |   | **2/19/03** |   | **2/16/04** |   |
|------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                   |   | $           | 13.525 |        | $      | 13.796 |   |
| Cleveland  Guaranteed Rate         |   | 12.383      |   | 12.630      |   |
| Base Rate for  King Piecework      |   | 8.985       |   | 9.256       |   |
| Base Rate for  Cleveland Piecework |   | 7.843       |   | 8.090       |   |
|                                    |        |             |        |             |        |  |  |

 

*Sweepers

 

22

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**#2 Grade**

 
|                               |   | **2/19/03** |   | **2/16/04** |   |
|------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                   |   | $           | 13.664 |        | $      | 13.937 |   |
| Cleveland  Guaranteed Rate         |   | 13.454      |   | 13.723      |   |
| Base Rate for  King Piecework      |   | 9.124       |   | 9.397       |   |
| Base Rate for  Cleveland Piecework |   | 8.914       |   | 9.183       |   |
|                                    |        |             |        |             |        |  |  |

 

*Case Sizing Boring Machine Operator

*Degreaser / Parts Cleaner

*Harperizer & Tumbling Machine Operator

*Laborer

*Laborer - Air/Water Check Horns

*Vibratory & Tumbling Machine Operator

*Operator - Cut and Shrink

*Operator - Drill Press & Milling

*Trucker - Stock Handler

*Trainee B

*Laborer - Rinse Tank

 

**#3 Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 13.791 |        | $      | 14.067 |   |
| Cleveland  Guaranteed Rate          |   | 13.597      |   | 13.869      |   |
| Base Rate for  King Piecework       |   | 9.251       |   | 9.527       |   |
| Base Rate for  Cleveland Piecework. |   | 9.057       |   | 9.329       |   |
|                                     |        |             |        |             |        |  |  |

 

Bender - Crooks

Induction Machine Operator

Lead and Silver Solderer

Operator - Punch Press

Packers

Pantograph/Schmidt Engraver Set-Up Oper.

*Pickling Tank Operator

*Shippers

Straighten Trombone Slide Tubes

Water Key Assembler

Aqueous System Set-Up Operator

Lead Pot Operator

 

23

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**#4 Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 13.952 |        | $      | 14.230 |   |
| Cleveland  Guaranteed Rate          |   | 13.719      |   | 13.993      |   |
| Base Rate for  King Piecework       |   | 9.412       |   | 9.690       |   |
| Base Rate for  Cleveland Piecework. |   | 9.179       |   | 9.453       |   |
|                                     |        |             |        |             |        |  |  |

 

Automatic Tube Buffing Mch.

Brazer

CNC Automatic Spinning Machine Operator

CNC Drill Operator

CNC Laser Operator

Draw Bench Operator

Engine Lathe Operator

Final Assembly Horns

Honer - Trombone Slides

Lacquer Sprayers

Maintenance Helper

Operator Turret Lathe, Hand Screw

Set-Up Opr. Vertical Draw Mch.

*Stock Clerk

Rotary Valve Finisher

Auto. Buff. Mach. Set-up Opr.

 

**#5 Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 14.021 |        | $      | 14.301 |   |
| Cleveland  Guaranteed Rate          |   | 13.770      |   | 14.045      |   |
| Base Rate for  King Piecework       |   | 9.481       |   | 9.761       |   |
| Base Rate for  Cleveland Piecework. |   | 9.230       |   | 9.505       |   |
|                                     |        |             |        |             |        |  |  |

 

Assembler Valves & Crooks

Bender

Operator Automatic Screw Mch.

Piston Machinist

Plater C

Rough Assembly - Cornets, Trumpets

Rough Assembly - Horn Slides and Trombone Bells

Rough Assembly - Large Horns & Rotary Valves

Rough Assembly - Trombone Slides

Waste Water Pretreatment Operator

Trainee A

Annealing Furnace Operator

 

24

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**#5A Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 14.089 |        | $      | 14.371 |   |
| Cleveland  Guaranteed Rate          |   | 13.872      |   | 14.149      |   |
| Base Rate for  King Piecework       |   | 9.549       |   | 9.831       |   |
| Base Rate for  Cleveland Piecework. |   | 9.332       |   | 9.609       |   |
|                                     |        |             |        |             |        |  |  |

 

Color Buff and Color Rag

Polisher

Buffer

Rotary Valve Maker

Set-Up Operator - Punch Press

 

**#6 Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 14.250 |        | $      | 14.535 |   |
| Cleveland  Guaranteed Rate          |   | 13.974      |   | 14.253      |   |
| Base Rate for  King Piecework       |   | 9.710       |   | 9.995       |   |
| Base Rate for  Cleveland Piecework. |   | 9.434       |   | 9.713       |   |
|                                     |        |             |        |             |        |  |  |

 

Automatic Hydraulic Spinning Machine Operator

Bender Skilled

Inspector B

Sheet Brass Workers

Plasma Arc Welder

Piston Liner, Assembler, and Ball-Out

 

**#6B Grade**

 
|                                |   | **2/19/03** |   | **2/16/04** |   |
|-------------------------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate                    |   | $           | 14.309 |        | $      | 14.595 |   |
| Cleveland  Guaranteed Rate          |   | 14.056      |   | 14.337      |   |
| Base Rate for  King Piecework       |   | 9.769       |   | 10.055      |   |
| Base Rate for  Cleveland Piecework. |   | 9.516       |   | 9.797       |   |
|                                     |        |             |        |             |        |  |  |

 

Spinner - Metal

 

**#6A Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 14.433 |        | $      | 14.722 |   |
|                  |        |             |        |             |        |  |  |

 

Inspect and Pretest, Cup Instruments

Maintenance B

 

**#6A-1 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 14.571 |        | $      | 14.862 |   |
|                  |        |             |        |             |        |  |  |

 

Maintenance & Welder A

Plater B

 

**#6A-2 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 14.767 |        | $      | 15.062 |   |
|                  |        |             |        |             |        |  |  |

 

Automatic Screw Mch. Set-Up Oper.

 

25

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Inspect & Final Test, Cup Instr.

Operator Centerless Grinder

Turret Lathe & Hand Screw - Set-Up Oper.

CNC Turning Center Set-Up Operator

 

**#7 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 15.145 |        | $      | 15.448 |   |
|                  |        |             |        |             |        |  |  |

 

Plater A

Tool Maker Trainee

 

**#7B Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 15.512 |        | $      | 15.822 |   |
|                  |        |             |        |             |        |  |  |

 

Horn Repair

 

**#8 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 16.305 |        | $      | 16.631 |   |
|                  |        |             |        |             |        |  |  |

 

Tool Room Machinist B

 

**#9 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 17.003 |        | $      | 17.343 |   |
|                  |        |             |        |             |        |  |  |

 

Maintenance A

Tool Room Machinist A

 

**#9A Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 17.340 |        | $      | 17.687 |   |
|                  |        |             |        |             |        |  |  |

 

Tool & Die Maker

 

**#10 Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 17.956 |        | $      | 18.315 |   |
|                  |        |             |        |             |        |  |  |

 

Maintenance & Electrician

 

**#10A Grade**

 
|             |   | **2/19/03** |   | **2/16/04** |   |
|------------------|--------|-------------|--------|-------------|--------|
| Maximum Day Rate |   | $           | 18.156 |        | $      | 18.519 |   |
|                  |        |             |        |             |        |  |  |

 

CNC Programmer, Complex

Tool & Die Maker Complex

 

**ARTICLEIX - VACATIONS**

 

The Union and the Company agree that the purpose of vacations is thatof relaxation of the individual from the requirements of his/her work and thatsuch relaxation is earned by ‘total’ years of service and hours worked.  ‘Total’ years of service will include anyformer years of

 

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service with the former King Musical, or United Musical Instruments, inaddition to current continuous years of service.

 

**SectionA. VACATION PERIOD.** The Plant will be closed for a two-weekVacation Period beginning on the following dates:

 

1.             Monday, June 30,2003 - the Fourth of July Holiday to be observed on Friday, June 27, 2003.

 

2.             Monday, July 5,2004 - the Fourth of July Holiday to be observed on Friday, July 2, 2004.

 

The employee’s seniority status for the purpose of vacations will bedetermined as of June 30th of the vacation year.  The new vacation year begins each subsequent July 1.  New vacation time becomes available eachsubsequent July 1.

 

The designated Shutdown period 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 at Day Rate to a Maximum of Grade 5A.

 

c.                           Shouldthere be a need for additional manpower, seniority prevailing, all otheremployees may volunteer.  Vacation maybe scheduled and paid at a later date according to Article IX, Section C.,letter b.  Volunteers paid at Day Rateto a Maximum of Grade 5A.

 

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 Day 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 Day 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.

 

**SectionB. VACATION PAY.** Shall be computed on the basis of theemployee’s average hourly earnings for the 52 week period beginning and endingclosest to June 1, through May 31, or his/her rate of pay for theclassification for which he/she has worked for the majority of the vacationyear, whichever is higher, based on the following schedule:

 
| **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                    |   |

 

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Vacation pay shall be paid as follows:

 

2 through 10 days:                                                                                                                                             Paidin its entirety the last pay period before designated shutdown.

 

12 through 20 days:                                                                                                                                       Paidwhen employee takes vacation, per Article IX, Section C.

 

Deductions for Medical contribution to be deducted from vacationpay.  Calculated the same as if employeewas working.

 

**SectionC. THIRD AND FOURTH WEEK VACATION 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.                           Must beapproved by Human Resource Manager.

 

Average Hourly Earnings are computed as follows:

 

Total earnings less overtime premium less vacation paydivided by the Total Hours Paid less Vacation Hours paid.

 

**SectionD. LOST TIME QUALIFICATIONS.** Employees who are formallyapproved for retirement or who are or have been on a sickness or personal leaveof absence or have lost time due to permanent lay-off, shall receive, at thetime of separation, their accumulated vacation pay for the regular hoursactually paid with 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 duepro-rated with 1,700 hours as the 100% qualifying figure against their actualhours paid.

 

**SectionE. LOST TIME ALLOWANCES.** Deductions will not be made for losttime due to injury or disease on the job compensable by Workers’ Compensationwithin 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.

 

**ARTICLEX - UNION SECURITY**

 

All employees who are covered by the representation clause in themaster contract and are present members of the Union, must as a condition ofemployment, remain members in good financial standing except for assessmentsand fines during the life of the master contract.

 

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

 

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.

 

**ARTICLEXI - MEDICAL EXAMINATION**

 

**SectionA. INJURY REPORTING.** All employees must report all injurieswhen they occur to their Supervisor, so it can be recorded and sent to thedispensary, doctors or hospital.

 

**SectionB. TRANSPORTATION TO COMPANY DOCTOR.** The Company will providetransportation to and from the Company recognized Medical Facility for thoseemployees injured on the job when necessary on the day of the injury only.

 

**SectionC. LOST TIME-INJURY.** An employee will be compensated for losttime on the day of the injury when sent to Doctors or Hospital, but will notexceed past the normal quitting time, providing a slip indicating the time lostis turned back to their Supervisor, who will forward it to Human Resources.

 

**SectionD. WORKERS’ COMPENSATION.** If the treating physician for anestablished workers’ compensation claim requires the employee to visit hisoffice or hospital during working hours for follow-up treatment, he/she shallbe compensated for loss of time up to a maximum of two (2) hours for eachvisit.  However, this provision onlyapplies to appointments relating to treatment, or when the company requires andschedules an independent medical exam during work hours.  Claims in excess of this amount shall bedetermined between the Company and 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.

 

**ARTICLEXII - GENERAL PROVISIONS**

 

**SectionA. UNION ACTIVITIES.** The Company recognizes and will notinterfere with the right of its employees to become members of the Union.  The Union agrees that neither it nor any ofits officers or members will engage in any Union activity while such employeesare on Company time, unless it is mutually agreed by the Company.

 

The Shop Steward, Departmental Stewards and ShopCommittee shall be paid at the rate of their combined piecework and dayworkaverage straight time hourly earnings for all time spent in mutually agreedupon 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

 

29

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per week for the time spent on problems arising under this Contractwhich affect the mutual interest of the Union and the Company.

 

**SectionB. TELEPHONE USAGE.** It is agreed that the President of theUnion or his representative shall have use of the Company’s telephone at anytime to consult with the Mechanics Educational Society of America affiliatedwith the UAW, or Government agencies’ representatives in regard to matterscovered by this Agreement.

 

**SectionC. BULLETIN BOARDS.** Are to be used solely for the purpose ofexhibiting official announcements of the Union and the Company.  The dedicated bulletin board for the unionis to be used solely for the purpose of posting official union business, andmay not include any personal announcements or statements.

 

**SectionD. REST PERIODS.** In effect during working hours and thewash-up period at quitting time shall be continued.

 

**SectionE. SUPERVISORS WORKING.** No employee outside the bargainingunit shall perform any work customarily performed by employees within thebargaining unit.  It is agreed, however,the Supervisors may perform such work while acting as instructors or assistingin solving a production problem.  It isfurther recognized that it is part of the normal procedure of supervision totest and inspect.  During the period inwhich a shortage of staffing exists due to absenteeism or assignment ofpersonnel to other jobs, the Shipping Department, Maintenance and Tool Room,Machine Shop, and Repair Department Supervisors are excluded from thislimitation.

 

**SectionF. TEMPORARY EMPLOYEE.** Is one engaged by the Company for adefinite period of time, not in excess of ninety (90) days, to perform aspecific type of work that does not occur with regularity.  The Company agrees not to call in temporaryemployees, if regular employees are available to do the work.

 

**ARTICLEXIII - FRINGES AND SCOPE OF THE AGREEMENT**

 

**SectionA. BENEFITS.** The Company agrees to an insurance plan for itsemployees under a policy or policies issued by an insurance company,association or medical group as selected by the Company, subject to the rightof the Company to amend, cancel or reinsure the policies or change theunderwriters thereof, provided the benefits indicated herein are maintained forthe life of this Agreement.

 

The Company shall afford the employees an annual opportunity to enrollin a Health Maintenance Organization.

 

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

 

**AEtnaSelect Choice HMO.** Effective May 5, 2003.

 
| **Contribution:  (Per Week)** |   | **2003** |   | **2004** |   |
|------------------------------------|--------|----------|--------|----------|--------|
| Single Plan:                       |   |     |   |     |   |
| Employee only:                     |   | $        | 23.00  |     | $      | 23.00 | ** |
| Family Plan:                       |   |     |   |     |   |
| Employee and  Family:              |   | $        | 40.00  |     | $      | 40.00 | ** |

 

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**KaiserHMO.**  Effective May 5,2003.

 
| **Contribution:  (Per Week)** |   | **2003** |   | **2004** |   |
|------------------------------------|--------|----------|--------|----------|--------|
| Single Plan:                       |   |     |   |     |   |
| Employee only:                     |   | $        | 16.00  |     | $      | 16.00 | ** |
| Family Plan:                       |   |     |   |     |   |
| Employee and  Family:              |   | $        | 22.00  |     | $      | 22.00 | ** |

 

**KaiserAdded Choice.** Effective May 5, 2003.

 
| **Contribution:  (Per Week)** |   | **2003** |   | **2004** |   |
|------------------------------------|--------|----------|--------|----------|--------|
| Single Plan:                       |   |     |   |     |   |
| Employee only:                     |   | $        | 22.00  |     | $      | 22.00 | ** |
| Family Plan:                       |   |     |   |     |   |
| Employee and  Family:              |   | $        | 39.00  |     | $      | 39.00 | ** |

 

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**Employees contribution increases will be capped at $ 6.00 per week inthe second year.  If total premiumincreases in the second year exceeds $12.00 per week (equally divided betweenemployees and company) the company and the union agree to secure competitivebids from local providers and/or modify the plan design to maintain theincrease to $12.00 per week or less.

 

**2. DENTAL PLAN.** Effective May 5, 2003.

 

$1,000 Annual Maximum Benefits

 
| Preventative  Services: |   | 100%,  no deductible |   |
|-------------------------|--------|---------------------------|--------|
| Basic  Restorative:     |   | 85%, $50 deductible       |   |
| Major  Restorative:     |   | 50%, $50 deductible       |   |

 
| **Contribution:  (Per Week)** |   | **2003** |   | **2004** |   |
|------------------------------------|--------|----------|--------|----------|--------|
| Single Plan:                       |   |     |   |     |   |
| Employee only:                     |   | $        | 0.00   |     | $      | 0.00 |   |
| Family Plan:                       |   |     |   |     |   |
| Employee and  Family:              |   | $        | 0.50   |     | $      | 0.50 |   |

 

**3.  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. If a period of illness exceeds two (2) weeks (14 days) for anon-occupational sickness, the initial one (1) week (7 days) waiting periodwill be waived.  The employee will bepaid from the first day of illness according to the following schedule:

 

$330 per week effective May 5, 2003

$335 per week effective February 16, 2004

 

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**4.  LIFE INSURANCE.** $27,000effective May 5, 2003; to $28,000 effective February 16, 2004.

 

**5.  PENSION.** Employees whoretired after February 16, 2000 shall receive a monthly benefit increase to$20.00 per service year effective June 1, 2003; and increase to $21.00 perservice year effective January 1, 2004.

 

**SectionB. MEDICARE INSURANCE PREMIUM.** The Company will pay theentire cost for those employees covered under Medicare Part B, reimbursingthose employees on a quarterly basis.

 

**SectionC. RETIREE INSURANCE PREMIUM.** All payments of premium by theCompany for insurance or hospitalization for employees, retired under theprovisions United Musical Instruments U.S.A., Inc. Retirement Plan for HourlyEmployees because of disability or otherwise, shall terminate during the monthfollowing the month of retirement.

 

**SectionD. CLAIMS PROCESSING.** The Company shall bear all necessaryadministrative expenses and agrees that in the administration of the insuranceplan, all claims shall be processed as expediently as possible.  All matters concerning benefits providedunder the insurance plan shall be governed by the terms and conditions of theinsurance policy or policies purchased by the Company.

 

**SectionE. BENEFITS WAITING PERIOD.** Employees shall become eligiblefor sickness and accident insurance, life insurance and hospitalization/dentalcoverage after they have completed three (3) months of accumulated service,provided they are still actively at work and have enrolled.

 

**SectionF. ONE MONTH LAY-OFF CLAUSE.** All insurance coverage of anemployee shall be cancelled one (1) month following the month after lay-offdate.  The employee may exercise theCOBRA privilege as described in Section G of this Article.

 

**SectionG. COBRA.** If employment terminates for any reason other thangross misconduct, or if the hours worked are reduced so that medical coverageterminates, the employee and covered dependents may continue coverage under theCompany plan as outlined in the Summary Plan Description, provided the employeeand dependents are not covered under any other plan.  For the purpose of this provision, “gross misconduct” means anyviolation of State or Federal laws.  Anyemployee who elects to continue coverage under the Plan must pay the full costof the coverage.

 

If an employee becomes divorced or legally separated,or if the employee’s  dependent child isno longer an eligible dependent under the plan, the employee or another familymember must notify the Company within sixty (60) days.

 

**SectionH. PLAN 125.** An employee may choose to have their employeecontribution for Hospitalization/Dental Coverage deducted on a pre-tax basistoward their share of the cost of the benefits.  The employee should refer to the Summary Plan Description of theBenefit Plan for the Employees of United Musical Instruments U.S.A., Inc. fordetails regarding this program.

 

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**SectionI. JURY DUTY.** An employee who has completed his/herprobationary period and who serves as a juror during his/her regular work week,Monday to Friday, inclusive, shall be excused from work for the days requiredto serve, and will be paid eight (8) hours at average hourly earnings(excluding night shift differential) for each day of jury service.  The employee must present satisfactoryevidence.  If an employee works his/herregular shift in addition to performing jury duty, he/she shall not qualify forpayment 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.

 

**SectionJ. BEREAVEMENT PAY.** An employee who is actively on payrolland has completed his/her probationary period will be granted as an excusedabsence, in case of death in his/her immediate family and shall, following thedate of death, receive three (3) working days off with payment of his/heraverage hourly earnings, excluding prior personal or sick leaves of absence.  The members of the immediate family areconsidered to be father, mother, husband, wife, brother, sister, son, daughter,mother-in-law, father-in-law, step-parents, grandparents or your spouse’sgrandparents.  Bereavement days occuringduring an employees vacation will displace vacation days (Example:  Employee is on a two (2) week vacation and adeath occurs in the immediate family, employee returning to work as scheduledwill only be charged with seven (7) vacation days).  Bereavement days occuring during a holiday will be takenimmediately after the holiday.

 

**SectionK. RE-NEGOTIATION.** It is understood and agreed between theparties hereto that all economic issues, including, but not limited to wagesand so-called fringe benefits have been fully negotiated between the partiesand shall not be subject to further negotiation during the life of thisAgreement but all other matters not specifically set forth in this Agreementshall be subject to negotiation during the term of the Agreement.

 

**“COMPANYRULES, REGULATIONS AND POLICIES”**

 

In every business where many people work together, some specific rulesand regulations are necessary to define acceptable conduct and to promote thesmooth functioning of the business as a whole.

 

The purpose of the following rules is to insure allemployees safety and fairness in their cooperative effort, rather than to placerestrictions on any one individual.

 

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.

 

**INFRACTIONSOF A MINOR NATURE**

 

1.                           Absencewithout an authorized reason.

 

**16-Hour Policy:**

 

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

 

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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 from Lunch:**

 

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.                     Neglect ofduty or failure to meet reasonable measure of efficiency or productivity ornegligence resulting in inferior work, scrap, or waste.

 

11.                     Running or inany other way creating a condition hazardous to the individual or fellowemployee.

 

12.                     Failure towear 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.                     Being in anarea unauthorized in the Plant or on Plant property.

 

15.                     Being onCompany property while under the influence of alcohol, or any other illegal orcontrolled substance.

 

16.                     Gambling ofany type.

 

17.                     Changing acertain phase of a set operating procedure without proper authorization.

 

18.                     Posting ofnotices or signs or writing in any form on official bulletin boards or removalof approved notices without approval of the Human Resources Department.

 

19.                     Leaving thePlant at break or lunch period and not returning without permission ornotification.

 

20.                     Entering orleaving the Plant by other than the authorized area assigned.

 

21.                     Subtle formsof harassment, intimidation, or inappropriate language or behavior.

 

22.                     Smoking innon-designated, low fire hazard areas.

 

**ANY EMPLOYEE COMMITTING ANY OF THEABOVE OFFENSES** is subject to:

 

1st offense - written warning

2nd offense - written warning

3rd offense - written warning with counseling withDepartment Steward.

 

34

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

5th offense - dismissal

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

 

**INFRACTIONSOF A MAJOR NATURE**

 

1.                           **ExcessiveAbsenteeism:**

 

a)                          Includesthe following missed work time:

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

•                              OutEarly, excused and unexcused

•                              Absences,excused and unexcused

•                              Alllatenesses

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

1st Offense - Written warning with counseling by HumanResources

2nd Offense - Written warning with three (3) dayssuspension

3rd Offense – Dismissal

All warnings will remain in 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.                     Possession offirearms 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.

 

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

 

**ANY EMPLOYEE COMMITTING ANY OF THE ABOVE OFFENSES IS SUBJECTTODISCIPLINE UP TO AND INCLUDING DISCHARGE.**

 

**ARTICLEXV - DURATION OF AGREEMENT**

 

**SectionA.**  The Union and theCompany mutually agree that all of the provisions of the Agreement shall remainin full force and effect without change up to and including February 15,

 

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2005, unless changes by mutual agreement and shall continue from yearto year thereafter unless at least sixty (60) days prior to February 15, 2005,or sixty (60) days prior to any anniversary date thereafter, either partynotifies the other, in writing of its desire to terminate, modify, or changethe Agreement.

 

**SectionB. RETIREMENT AGREEMENT.** It is agreed that all the provisionsof the Retirement Agreement for Hourly Employees will be continued to February15, 2005, in order to coincide with the expiration of that Contract.

 

IN WITNESS WHEREOF, the parties have executed the foregoing Agreementthis 5th day of May, 2003.

 

U.A.W. LOCAL 2359

Bryant Harvey

Randol G. Lang

Larry Martin

Adam Rosciszewski Jr.

Scott Rosciszewski

Jack Swanson

REPRESENTATIVE OF U.A.W.

Bill Meany

CONN-SELMER, INC.

Edward H. Chesko

Robert R. Stone

David B. Woodruff

 

**MEMORANDUMOF AGREEMENT**

 

Effective February 17, 1997, by mutual consent, the job classificationsfor Polisher (5A41) and Buffer (5A42) will be recognized as separate jobs fromthis day forward.  All previous relatedmemorandums of agreement will be considered null and void, and will not berecognized from this day forward.  Thisagreement does not change any portions of the current bargaining agreement, nordoes it change any other established employment practice not specificallydiscussed.

 

**MEMORANDUMOF AGREEMENT**

 

Effective February 17, 1997, by mutual consent, the overtime hours fora five (5) hour Saturday clean-up schedule, within departments 50 and 52, willbe rotated between those that volunteer for the ‘available’ positions.  Only employees from departments 50, and 52will be eligible to volunteer for the ‘available’ positions.  The ‘set’ positions on this clean-up crewwill be assigned by the company.

 

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This policy will not apply to a three (3) hour Saturday clean-upschedule within departments 50, and 52, or to any other overtime schedule inother areas of the shop.

 

This agreement does not change any portions of the current bargainingagreement, nor does it change any other established employment practice notspecifically discussed.

 

Letter of Understanding:

 

In the eventthe company determines to outsource or subcontract work performed at thefacility, it will meet 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 tobe a “certified” work related incident, that was later denied payment by theOBWC and the employee’s medical insurance, will be reimbursed by thecompany.  “Non-emergency” injuries orillnesses, that may not be work related, or that will not be granted“certification” by the company, will be referred to the employee’s physician;and, if denied will not be eligible for reimbursement.

 

Letter of Understanding:

 

In the event the company determines to insource production operationsnormally performed at other manufacturing facilities, or develop and refineproduction operations for other manufacturing facilities, these same operationswill not be construed as permanently assigned to this manufacturingfacility.  This understanding, underthese terms, permits the company to restore, implement, or move these sameproduction operations to other alternative manufacturing facilities.

 

Letter of Understanding:

 

The company will organize a five (5) member team consisting of two (2)supervisors and three (3) union employees to overview health and safety issuesrelated to buffing systems and

 

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operations in Departments 50, 51, and 52.  The team will endeavor to cooperatively develop and monitor allhousekeeping, preventative maintenance, safe work practices, and safetyrules.  The Human Resources Manager andthe Chief Shop Steward will appoint their respective team members.  By June 20, 2003, a member of eachbargaining committee, along with this safety team, will meet to cooperativelydraft their goals and objectives to increase safety, decrease “no work” time,and identify negligence for any related “no work” occurrence in thesedepartments.

 

The formation of this team, specific to Departments 50, 51, and 52,will be in addition to the established Safety Committee.

 

Letter of Understanding:

 

An employee promoted to a supervisory or managerial position, orappointed or elected to an assignment with the international union, shall begranted such leave, and shall be guaranteed reemployment in the same or likeposition, in line with his or her seniority at the prevailing rate of pay.  Seniority shall accumulate during suchleaves; however, all benefits provided under the terms of this collectivebargaining agreement shall terminate effective with the commencement of thesaid leave, and shall reinstate upon return from said leave (based upon thebenefit levels, plans, and contributions in effect at that time).  Return rights, for either assignment, willbe limited to one occurrence per individual for future leave requests.  Any current leaves will not be accommodatedunder these defined terms.

 

Letter of Understanding:

 

The company agrees to maintain the payroll cycle on a weekly basis, andto provide continued access to direct deposit. Voluntary, after-tax deductions may be combined with the normal uniondues deduction (when processed each month). Any additional, voluntary after tax deductions must be summarized andsubmitted with the monthly union dues check-off list.

 

Letter of Understanding:

 

The company agrees to amend the qualifying hours for accrued vacation,for the 2003-04 vacation year, to 1,600 hours; and amend the qualifying hoursfor payment credits, for the 2003 pension year, to 1,440 hours.

 

38

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U.A.W.

 

LOCAL 2359

 
| /s/ Bryant Harvey      |                  | /s/ Randol G. Lang        |   |
|------------------------|-----------------------|---------------------------|--------|
| Bryant Harvey          | Randol G. Lang        |
|                   |                  |
|                   |                  |
| /s/ Larry Martin       |                  | /s/ Adam Rosciszewski Jr. |   |
| Larry Martin           | Adam Rosciszewski Jr. |
|                   |                  |
|                   |                  |
| /s/ Scott Rosciszewski |                  | /s/ Jack Swanson          |   |
| Scott Rosciszewski     | Jack Swanson          |

 

 

REPRESENTATIVE OF U.A.W.

 

 
| /s/ Bill Meany |   |   |
|----------------|--------|--------|
| Bill Meany     |   |

 

 

CONN-SELMER, INC.

 

 
| /s/ Edward H. Chesko |            | /s/ Robert R. Stone |   |
|----------------------|-----------------|---------------------|--------|
| Edward H. Chesko     | Robert R. Stone |
|                 |            |
|                 |
| /s/ David B. Wodruff |            |
| David B. Woodruff    |

 

39

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