Exhibit 10.8





Exhibit 10.8




BASIC AGREEMENT

BETWEEN

Warner Electric, LLC

and

United Steelworkers

and

Local Union No. 3245

For Contract Years

February 1, 2009 through March 28, 2010




 


 









 







WARNER ELECTRIC BRAKE SAFETY POLICY





	•	 	Safety is our first priority. Safety concerns must be managed before other business
concerns can be successfully accomplished.






	•	 	Working safely is a condition of employment. All employees are required to work safely and
follow all safety rules and regulations.






	•	 	No job is so important that it cannot be done safely. Safety precautions must be taken
before and during any job.






	•	 	All injuries can be prevented. With management taking responsibility to ensure a safe
environment and all of us working safely, this is a realistic goal.






	•	 	Every employee is responsible for preventing injuries. When we all work safely, act safely,
and report any unsafe condition, we are doing our part to prevent injuries.






	•	 	Training employees to work safely is essential. For every employee to be responsible for
safety, he/she must know what safe conditions, acts, and operations are. To achieve that level
of understanding, appropriate training will be given.






	•	 	All operating exposures can be safeguarded. To ensure safe working conditions, all areas or
points that are dangerous and cannot be practically eliminated, will be safeguarded by way of
safety devices, warnings, guards, personal protective equipment or other appropriate means.




 


2









 










INDEX




	 	 	 	 	 	 	 	 	 	 	 
	Article	 	Paragraph	 	Page
	 	 	 
	 	 	 	 	 	 	 	 
	I	 	Intent, Purpose and Scope of Agreement
	 	 	2	 	 	 	6	 
	II	 	Recognition
	 	 	6	 	 	 	6	 
	III	 	Hours of Work
	 	 	17	 	 	 	8	 
	IV	 	Overtime and Allowed Time
	 	 	21	 	 	 	8	 
	 	 	Holidays
	 	 	26	 	 	 	9	 
	 	 	Overtime Distribution
	 	 	30	 	 	 	10	 
	 	 	Call-In/Report-In Pay
	 	 	34	 	 	 	10	 
	 	 	Bereavement Pay
	 	 	35	 	 	 	11	 
	V	 	Vacations
	 	 	36	 	 	 	11	 
	VI	 	Seniority
	 	 	48	 	 	 	14	 
	 	 	General
	 	 	48	 	 	 	14	 
	 	 	Rule for Applying Seniority
	 	 	49	 	 	 	14	 
	 	 	Seniority Defined
	 	 	50	 	 	 	14	 
	 	 	Transfer of Seniority
	 	 	51	 	 	 	15	 
	 	 	Decrease in Forces
	 	 	54	 	 	 	15	 
	 	 	Recall to Occur As Follows
	 	 	62	 	 	 	17	 
	 	 	Loss of Seniority
	 	 	63	 	 	 	18	 
	 	 	Probationary Period
	 	 	64	 	 	 	18	 
	 	 	Information to the Union
	 	 	65	 	 	 	19	 
	 	 	Shift/Job Transfers
	 	 	66	 	 	 	19	 
	 	 	Temporary Transfer
	 	 	69	 	 	 	20	 
	 	 	Job Posting
	 	 	70	 	 	 	20	 
	VII	 	Military Service
	 	 	76	 	 	 	21	 
	VIII	 	Leave of Absence
	 	 	77	 	 	 	21	 
	 	 	Jury Service
	 	 	82	 	 	 	22	 
	IX	 	Adjustment of Grievances
	 	 	83	 	 	 	22	 
	 	 	To File a Grievance
	 	 	87	 	 	 	23	 
	 	 	Suspension
	 	 	103	 	 	 	25	 
	X	 	Bulletin Boards
	 	 	105	 	 	 	25	 
	XI	 	Wages/Job Descriptions/Evaluations
	 	 	107	 	 	 	26	 
	 	 	Temporary Transfer Rate
	 	 	117	 	 	 	27	 
	 	 	Shift Differential
	 	 	118	 	 	 	27	 
	XII	 	Cost-of-Living
	 	 	122	 	 	 	28	 
	XIII	 	Safety and Health
	 	 	132	 	 	 	30	 
	XIV	 	Insurances and Pensions
	 	 	142	 	 	 	31	 
	XV	 	Severance Allowance
	 	 	145	 	 	 	32	 
	XVI	 	Termination, Expiration and Scope
	 	 	155	 	 	 	33	 
	XVII	 	Compliance with Law
	 	 	156	 	 	 	33	 
	 	 	Appendix A – Classification by Pay Rate
	 	 	 	 	 	 	37	 
	 	 	– Addendum
	 	 	 	 	 	 	39	 
	 	 	Appendix B – Rate Retention Groups
	 	 	 	 	 	 	41	 
	 	 	Appendix C – Overtime Distribution Agreement
	 	 	 	 	 	 	41	 
	 	 	Appendix D – Overtime Groups
	 	 	 	 	 	 	44	 
	 	 	Productivity Incentive
	 	 	 	 	 	 	44	 






 


3









 





	 	 	 	 	 	 	 	 	 	 	 
	Article	 	Paragraph	 	Page
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Enrollment Dates
	 	 	 	 	 	 	45	 
	 	 	401K Program
	 	 	 	 	 	 	45	 
	 	 	Appendix E – Insurances
	 	 	 	 	 	 	45	 
	 	 	Insurance Agreement
	 	 	 	 	 	 	47	 
	 	 	Definitions
	 	 	1	 	 	 	47	 
	 	 	Program of Insurance Benefits
	 	 	2	 	 	 	47	 
	 	 	Medical Plan
	 	 	3	 	 	 	48	 
	 	 	Dental Plan
	 	 	4	 	 	 	50	 
	 	 	Hearing Aids
	 	 	5	 	 	 	50	 
	 	 	Life Insurance
	 	 	6	 	 	 	50	 
	 	 	Cost of Benefits
	 	 	7	 	 	 	51	 
	 	 	Participation by Employees
	 	 	8	 	 	 	51	 
	 	 	Requirement of Law
	 	 	9	 	 	 	52	 
	 	 	Additional and Alternate Benefits
	 	 	10	 	 	 	52	 
	 	 	Administration of the Program
	 	 	11	 	 	 	52	 
	 	 	Administration of Sickness and Accident Ben
	 	 	12	 	 	 	52	 
	 	 	Life Insurance for Disability Retirees
	 	 	13	 	 	 	53	 
	 	 	Benefit Continuation Clause for Early
Retirement Window
	 	 	 	 	 	 	53	 
	 	 	Retirement Options 1 & 2
	 	 	 	 	 	 	54	 
	 	 	Extension of Benefits
	 	 	14	 	 	 	54	 
	 	 	Extent of Company Obligations
	 	 	15	 	 	 	55	 
	 	 	Insurance Reports
	 	 	16	 	 	 	55	 
	 	 	Term of Agreement
	 	 	 	 	 	 	56	 





 


4









 





NOTICE TO ALL EMPLOYEES




WHEN UNABLE TO




REPORT FOR WORK




CALL




(815) 389-4300




OR YOUR SUPERVISOR’S




DIRECT PHONE NUMBER.




THIS WILL ENABLE THE




COMPANY TO ACCURATELY




MAINTAIN YOUR




ATTENDANCE RECORD




 





TO LEAVE AN EMERGENCY MESSAGE




CALL




(815) 389-7777




LEAVE YOUR NAME, TELEPHONE #,




AND MESSAGE AND HANG UP.




YOUR EMERGENCY MESSAGE WILL BE




RESPONDED TO




 


5









 







AGREEMENT




1. This Agreement is made and entered into February 1, 2009 by and between WARNER ELECTRIC, LLC, or
its successors or assigns, (hereinafter referred to as the “COMPANY”) and the UNITED STEELWORKERS
(hereinafter referred to as the “UNION”) on behalf of itself and Local Union No. 3245. The Company
will furnish each present or new employee with a copy of this Agreement.



ARTICLE I

Intent, Purpose and Scope of Agreement




2. It is the intent and purpose of this Agreement to set forth herein the basic rules covering
rates of pay, hours of work, and conditions of employment to be observed by the parties hereto. It
is further understood and agreed that this Agreement together with any written appendices,
supplements or letters of understanding hereto contains all understandings between the Company and
the Union. This Agreement cannot be modified or amended except in writing signed by the Company and
the Union. No individual shall have any right to modify, amend or revoke this Agreement.



3. This Agreement relates to the South Beloit plant of the Company located at 449 Gardner Street,
South Beloit, Illinois.



4. The Company and Union will apply the provisions of this Agreement to all employees, without
discrimination as to age (as provided in appropriate laws), sex, color, national origin, race,
disability or religion.



5. COOPERATION – The Union, the Company and all employees covered by this Agreement mutually agree
to make every reasonable effort to maintain and improve the skill, efficiency, ability, and
production of all employees, the quality of products, the methods and facilities of production, and
to eliminate accidents, waste, conserve material and supplies and improve quality of workmanship.



ARTICLE II

Recognition




6. The Company hereby recognizes the Union as the exclusive bargaining agent for all its
production, maintenance, and service employees, excluding Sales Persons, Service Manager, Assistant
Service Manager, Service School Instructors, office and plant clerical employees, technical
employees, timekeepers, Industrial Engineering Department employees, security personnel, plant
superintendents, assistant superintendents, supervisors, assistant supervisors, and other
supervisory employees with authority to hire, promote, discharge, discipline or otherwise effect
changes in the status of the employees, or effectively recommend such action, in all those matters
specifically provided for herein pertaining to wages, hours, and working conditions.



7. The Union hereby recognizes that the Management of the plant and the direction of the working
forces including the right to direct, plan, and control plant operations, and establish and change
production schedules, the right to hire, promote, demote, transfer, suspend or discharge employees
for proper cause, or to relieve employees because of lack of work or for other legitimate reasons,
subject to the provisions of this Agreement, or the right to introduce new and improved methods or
facilities, or to change existing production methods or facilities, and to manage the properties,
is vested in the Company.


 


6









 





8. No employee shall engage in any activity not authorized by the Company, which shall interfere
with production. This section shall not restrict the legitimate activities of the Shop Committee
members pursuant to Article IX, Par. 98, Safety Committee members pursuant to Article XIII Par.
136, and the members of the Job Evaluation Committee, Worker’s Compensation Committee, Civil Rights
Committee, Group Insurance Committee, Pension Committee, Women of Steel and Apprenticeship
Committee as authorized by the appropriate Company representatives.



9. Any employee who is a member of the Union in good standing on the effective date of this
Agreement shall, as a condition of employment, maintain membership in the Union to the extent of
paying the periodic membership dues uniformly required of all Union members.



10. Any employee who, on the effective date of this Agreement, is not a member of the Union and any
employee thereafter hired, shall, as a condition of employment, starting thirty (30) days after the
effective date of this Agreement, or thirty (30) days following the beginning of their employment,
whichever is the later, acquire and maintain membership in the Union to the extent provided in
Paragraph 9 above.



11. The Union agrees that it will make membership in the Union available to all employees covered
by this Agreement on the same terms and conditions as are generally applicable to other members of
the Union. At the instance of the Company, termination of Union membership for reasons other than
the failure of the employee to tender the dues, assessments and initiation fees specified in this
Agreement, may be submitted to an impartial arbitrator under the grievance procedure of the
Agreement for determination only as to whether such termination conforms to the Constitution of the
United Steelworkers.



12. On receipt of a voluntary written assignment authorizing such deduction from the employee on
whose account such deductions are made, the Company shall deduct union dues, initiation fee, and
assessments in accordance with the Constitution of the United Steelworkers, as certified to the
Company by the International Treasurer of the Union. The Company shall deduct Union dues on a
weekly basis, based on the employee’s earnings from that week. Any sum deducted by the Company
pursuant to this Paragraph shall be remitted promptly by it to the International Treasurer of the
Union.



13. Should the International Treasurer of the Union certify to the Company in writing that changes
in dues or initiation fees have been duly adopted by the United Steelworkers, during the term of
this Agreement, the Company shall deduct the changed dues or initiation fees have duly adopted by
the United Steelworkers, during the term of this Agreement, the Company shall deduct the changed
dues or initiation fees in the manner provided in Par. 12.



14. The Union shall indemnify and hold the Company harmless against all suits, claims, demands and
liabilities that shall arise out of or by reason of any action that shall be taken by the Company
for the purpose of complying with these foregoing provisions or in the reliance on any list or
certificate which shall have been furnished by the Company under these provisions.



15. During the life of this Agreement, the Union agrees that there will be no strikes, stoppages,
or slowdowns; the Company agrees that there shall be no lockouts. Both parties promise and agree
that they shall, in an endeavor to prevent such events from taking place, charge their
representatives, committees, and agents with full responsibility for the performance of each and
every promise and undertaking herein contained. No meetings of the Union’s membership
shall be scheduled during regular working hours without mutual agreement of the parties in writing.


 


7









 





16. Except during an emergency, employees excluded from the provisions of this agreement shall not
perform production or maintenance work. Instruction, engineering analysis, continuous improvement
team activities, assistance in debugging machinery, product demonstrations, lab work, carrying test
and/or sample parts, and safety and ergonomic evaluations do not constitute production or
maintenance work.



ARTICLE III

Hours of Work




17. This Article defines the normal hours of work and shall not be construed as a guarantee of
hours of work per day or per week. This Article shall not be considered as any basis for the
calculation or payment of overtime, which is covered solely by Article IV, “Overtime.”



18. The normal workday shall be eight (8) hours per day, Monday through Friday.



	 	 	 	 	 	 
	 

	 	Hours of work:	 	 	 
	 
	 	 	 	 	 
	 

	 	First Shift:
	 	7:00 a.m. to 3:00 p.m.	 
	 

	 	Second Shift:
	 	3:00 p.m. to 11:00 p.m.	 
	 

	 	Third Shift:
	 	11:00 p.m. to 7:00 a.m.	 






19. Rest periods shall be provided and taken as follows:



	 	 	 	 	 	 	 	 	 
	 

	 	First Shift
	 	9:30 a.m. to 9:45 a.m.
	 	-
	 	15 minutes
	 

	 	 	 	12:30 p.m. to 12:40 p.m.
	 	-
	 	10 minutes
	 
	 	 	 	 	 	 	 	 
	 

	 	Second Shift:
	 	5:30 p.m. to 5:45 p.m.
	 	-
	 	15 minutes
	 

	 	 	 	9:00 p.m. to 9:10 p.m.
	 	-
	 	10 minutes
	 
	 	 	 	 	 	 	 	 
	 

	 	Third Shift:
	 	1:30 a.m. to 1:45 a.m.
	 	-
	 	15 minutes
	 

	 	 	 	4:30 a.m. to 4:40 a.m.
	 	-
	 	10 minutes






On regular six (6) hour shifts on Saturday and Sunday, rest periods shall be provided and taken as
follows:




All Shifts: Three (3) hours into the six (6) hour shift. -15 minutes



except that rest periods shall be staggered by the Company where necessary to insure continuous
production operations. Relief personnel will be assigned to the continuous production operation to
provide the relief period for the operator.



20. The normal work pattern shall be five (5) consecutive workdays beginning at 12:01 a.m. Monday
of each week, or at the time on Monday at which the employee begins work. Seven (7) consecutive
days beginning at 12:01 a.m. Monday shall constitute a payroll week.



ARTICLE IV

Overtime and Allowed Time




21. This Article provides the basis for the calculation of, and payment for, overtime and shall
not be construed as a guarantee of hours of work per day or per week, or a guarantee of days of
work per week.


 


8









 





The payroll week shall consist of seven (7) consecutive days commencing at 12:01 a.m. Monday for
the purpose of computing the pay of employees.



22. Time and one-half shall be paid for hours worked in excess of forty (40) hours in a payroll
week; all contractual paid time and union time, shall for purposes of this provision, be treated as
time paid.



23. Double time shall be paid for all hours worked on Sunday.



24. In all instances of premium pay for work on a day as such, the employee’s entire shift shall be
considered as having been worked on the day on which their shift is regularly scheduled to
commence, except if the employee’s first regular shift of the work week begins between 10:00 p.m.
and 12:00 midnight on Sunday, during such week, each shift shall be considered as having been
worked on the day their shift is scheduled to end.



25. Work performed by employees on their floating holiday, or on a Holiday, will be on a voluntary
basis, and will be paid at double time plus holiday pay. The scheduling of floating holidays
during the Christmas period will be at the employee’s discretion.



26. Holidays



Contract
Year 2009




April 10 — Good Friday (Friday)

May 25 — Memorial Day (Monday)

July 4 — Independence Day (Saturday) Celebrated Friday, July 3

September 7 — Labor Day (Monday)

November 26 — Thanksgiving (Thursday)

November 27 — Day after Thanksgiving (Friday)

December 24 — Christmas Eve (Thursday)

December 25 — Christmas Day (Friday)

December 31 — New Year’s Eve (Thursday)





Contract Year 2010




January 1 — New Years Day (Friday)




One (floating) holiday to be scheduled in accordance with current vacation scheduling process and
paid as 8 hr. of classification rate as holiday pay for employees hired on or before May 17, 2006.



27. The regular earned hourly rate shall be the average straight time hourly earnings for the day
on which the overtime was worked. The “average straight time hourly earnings” shall be the
employee’s total straight time hourly earnings for the day, divided by the actual hours worked for
the day (including any hours paid for under a guarantee of hours). Overtime rates as outlined above
shall be paid the employees for such hours worked in the following manner:




(A) Time and one-half shall be one and one-half times the regular earned hourly rate of
the employee.


 


9









 






(B) Double time shall be twice the regular earned hourly rate of the employee.



28. The overtime and/or the premium payments provided for in this Article shall not be duplicated
for the same hours worked and to the extent that hours are compensated for at overtime or premium
rates under one provision, they shall not be counted as hours worked in determining overtime or
premium pay under the same or any other provisions.



29. When two or more rules are applicable, the one more favorable to the employee will apply, but
nothing contained herein shall be construed to require or permit the pyramiding of premium and/or
overtime rates.



30. Both parties agree that overtime shall be worked when necessary to permit the proper operation
of the Company. Overtime will be distributed among employees in the overtime distribution groups
identified in Appendix D, which groups may be changed from time to time in recognition of new or
revised job classification and new or revised cost centers, subject to the grievance procedure.



31. Holidays defined in Par. 26 of this Article will be paid for at the employee’s classification
rate and the Cost-of-Living adjustment if not worked.



32. During the term of this Agreement the days (defined above) will be paid holidays. To qualify
for holiday pay, an employee must have completed the first thirty (30) calendar days of their
probationary period and must have worked their assigned shift on their last scheduled workday
before the holiday (which may not be mandated to exceed 8 hours) and their assigned shift on their
first scheduled workday following the holiday. In cases of holidays which are observed on Friday or
Monday, neither the adjoining Saturday nor the adjoining Sunday shall be considered as a “scheduled
work day before” nor a “scheduled work day after” the holiday for purposes of qualifying for
holiday pay, and work on such Saturday or Sunday shall be voluntary except that concerted refusal
of such overtime work and failure to work by an employee who had agreed to work shall be
disciplinable offenses. If an employee desires to be absent from work the scheduled work day before
or after a holiday, they must give reasonable notice prior to the holiday; provided, however, if
they are absent from work the scheduled work day before or after a holiday due to circumstances
beyond their control, they will not be disqualified from receiving unworked holiday pay. Otherwise
eligible employees on disability leaves of absence are eligible for holiday pay up to and including
one consecutive year of such leave(s) provided, however, that otherwise eligible employees hired on
or after January 28, 1984 on disability leaves of absence shall be eligible for holiday pay up to
and including thirty (30) consecutive days following the commencement of such leave(s).



33. The classification rate shall be that of the payroll week in which the holiday falls. If an
employee is absent and does not have wages earned during the holiday week, then the classification
rate to be used shall be that of the last payroll week the employee worked prior to the holiday
week.



34. Employees who report for regular work, (unless notified not to do so, including announcements
by local news media) or who are called back to work after punching out and leaving the plant, shall
be given either a minimum of four (4) hours’ work or pay at the applicable contract rate (with
applicable premiums, if any) for the current payroll period, (provided, that if the employee
refuses an assignment of work which they are qualified to do, they shall receive no
pay). The provisions of this Paragraph shall not apply in cases of strikes, work stoppages, in
connection with labor disputes, failure of utilities beyond the control of the Company, or any acts
of God which interfere with work being provided or an outside cause which prevents access, egress
or occupancy to the extent that work cannot be provided to the employees.


 


10









 





35. Employees actively at work, defined as person who is on the active payroll, will be granted
three (3) work days off with pay at their classification rate to attend or make arrangements for
the funeral of their spouse, mother, father, sister, brother (including half-brothers and
half-sisters), son, daughter, grandchild, mother-in-law, father-in-law, or other than a
blood-related parent if it can be demonstrated without a reasonable doubt that the employee’s
parent is other than the blood-related mother or father. Such employee will receive bereavement pay
entitlement for only one mother and one father. Employees actively at work will be granted three
(3) days off with pay at their classification rate to attend or make arrangements for the funeral
of their brother-in-law or sister-in-law (defined as the brother(s) and/or sister(s) of the
employee’s spouse, and the spouse(s) of the employee’s brother(s) and/or sister(s). The in-law
relationship ceases to exist when the marriage, which created the relationship, is terminated by
divorce, annulment, legal separation or death followed by remarriage. Employees actively at work
will be granted one (1) day off with pay at their classification rate to attend or make
arrangements for the funeral of the employee and spouse’s grandmother or grandfather. An employee
who has not previously been granted work days off with pay for the funeral of his mother or father
may notify the Company that he elects, instead, such pay rights for the funerals of his maternal
grandparents or his paternal grandparents. In the event of such election, the funeral pay rights
otherwise applicable to the designated grandparents shall apply to the employee’s parents. Should
the death occur during any of the employee’s scheduled weeks or days of vacation, the vacation thus
interrupted will be extended by the period of authorized bereavement. Should the death occur during
any of the employee’s vacation, or a paid holiday, the vacation or holiday thus interrupted will be
extended by the period of authorized bereavement effected.



ARTICLE V

Vacations




36. An employee who has been on the payroll of the Company as of the anniversary date of their
employment, and prior to May 17, 2006 shall retain their current earned vacation entitlement.



Employees hired on or after May 17, 2006 shall receive the following vacation with pay:



	 	 	 
	Service	 	Vacation
	 
	1 but less than 3 years

	 	1 week (5 days)
	 
	3 but less than 10 years

	 	2 weeks (10 days)
	 
	10 but less than 20 years

	 	3 weeks (15 days)
	 
	20 and over

	 	4 weeks (20 days)






Full weeks of vacation are to be taken as full weeks; extra days may be taken individually.


 


11








 





However, employees with two weeks of vacation or more may take their vacation time off entitlement
in excess of one week as individual days. Two (2) of the individual days may be taken in (1/2) day
increments, subject to the scheduling rules of Paragraph 38.



Employees on the active payroll of the Company on their 30th year of service anniversary
date shall receive a $100.00 award and on each such anniversary date thereafter while on the active
payroll.



The Company will issue vacation checks under the following guidelines. Full week(s) vacation checks
will be issued on the pay period preceding the start of vacation. Pay for individual vacation days
taken will be included in the employee’s regular check for the week it was taken. If an employee
takes vacation for all the days in a week when a holiday(s) occurs, except the holiday(s)
themselves, the vacation days will be paid in advance as if it were a full week and the holiday(s)
will be paid in the week after their occurrence.



37. Vacation pay shall be paid for all employees, beginning January 1, 2007, at their base hourly
rate. Base hourly rate to include shift differential.



38. (A) During any calendar year employees shall be permitted to select the time for vacation
subject to (B), (C), (D), (E) and (F) below so far as practicable, provided the employee gives
written notice to the Human Resources Department of their preference before April 1, and provided
that the Company may schedule in a manner which takes into consideration the operating and
maintenance needs of the plant. Conflicts in requests shall be resolved on the basis of seniority.
When taking single days of vacation, you must notify your supervisor before the end of your prior
shift. Failure to do so will result in an absence. When taking half (1/2) days vacation you must
notify your supervisor before the end of your prior shift. Failure to do so will result in an
absence.



(B) The Company may schedule a vacation shutdown of 1 week’s duration. In years that the Company
schedules a shutdown, notification to employees will be made by March 15.



Vacation
Shutdown



	 	 	 	 	 
	Year 2009

	 	Monday
	 	June 29
	 

	 	Tuesday
	 	June 30
	 

	 	Wednesday
	 	July 1
	 

	 	Thursday
	 	July 2






(C) When a vacation shutdown is scheduled; shutdown work requirements will be announced at the time
the shutdown is announced. Shutdown work requirements will be filled voluntarily from the top of
the seniority list in each classification required, and if volunteerism does not meet the need, the
balance of the requirements will be met by assignment from the bottom of the seniority list up.
Shutdown work requirements that arise subsequent to March 15 will be filled by volunteers from the
top of the seniority list. Any employees asked to work will be charged in accordance with Appendix
C. Employees not asked to work during the shutdown period will not be charged for any overtime. If
an out of overtime spread condition occurs because of the overtime worked during the shutdown
period, the Company shall have 30 days to bring the effected employees back into the 30 hour
overtime spread.


 


12









 





(D) Employees who are entitled to vacation and who work during vacation shutdown will be permitted
to request their vacation so far as practicable, and in consideration of the operating and
maintenance needs of the Company, at any other time of the year. In instances where employee
vacation requests conflict with the Company’s needs, vacations will be scheduled on the basis of
seniority.



(E) In order to qualify for the vacation defined in Par. 36, an employee must have worked not less
than seventy (70) percent of the regular days of work available to them during the twelve (12)
months immediately preceding January 1 of any calendar year, except in the case of any employee who
completes one (1) year of service in the calendar year, it shall be twelve (12) months immediately
preceding their anniversary date. It is understood and agreed for this purpose that the absence
from work because of Company layoffs due to lack of work (not to exceed ten [10] work weeks),
occupational accidents, certified illness, holidays, vacation and union business shall be
considered as time worked for the purpose of computing eligibility for vacation privileges.



(F) An employee may take pay in lieu for any earned vacation, not to exceed five (5) days in any
year. Such scheduling should be handled with the normal April 1 vacation scheduling procedure.
Changes after the vacation schedule is established must be consistent with production needs. Pay
in lieu will normally be included in the vacation check at the time the vacation is taken. This
shall not change the practice of paying for unused vacation at the end of each calendar year. The
Union will be informed of all pay in lieu arrangements. No employee shall be discriminated against
based upon his exercise or nonexercise of this understanding.



39. In the event of the death of an employee eligible for vacation pay at the time of their death,
such vacation due the employee shall be paid to their surviving spouse or other legal heir.



40. If any employee is laid off for a period equal to or longer than their vacation, the employee
may designate the equivalent portion of such layoff period as their vacation with pay.



41. Vacation periods may not be postponed from one year to another and made accumulative, and will
be forfeited unless completed within each calendar year, but in any event the employee will receive
their vacation pay.



42. An employee entering military service who is eligible for vacation in the year in which they
enter and who has not received such vacation shall receive the vacation pay to which they are
entitled under this Article.



43 Any employee returning from military service who is eligible for vacation in the year in which
they return shall receive a vacation subject to the provisions of this Article, except Par. 38
above, provided it is not in the same year in which they enter. Their vacation pay will be paid in
accordance with Paragraph 37.



44. In the event an employee has their vacation scheduled immediately upon beginning work and
therefore does not have any hours worked, their vacation pay is computed by multiplying their rate
for the job classification to which they are assigned by their vacation hours.



 


13









 




45. Vacation Pay for Layoffs.
During any calendar year, if an employee is on layoff through no fault of their own and solely as a
result of such layoff they have not fulfilled the requirements of Par. 38 (A) of this Article, and
such an employee has had earnings in the preceding calendar year, they shall be entitled to receive
vacation pay in accordance with Paragraph 37 as provided in Par. 36 of this Article.
Employees who are laid off may elect to receive their vacation pay at the time of layoff under
Paragraph 40 and, in accordance with Paragraph 40, a corresponding portion of the layoff will be
considered as the employee’s vacation time off at the time of layoff. If the employee does not
elect his vacation pay and time off at the time of layoff and is recalled in the same calendar
year, they will receive their vacation pay in accordance with Paragraph 46. If the employee does
not elect their vacation pay at the time of layoff and is not recalled during the calendar year,
they will be paid any vacation pay owing at the end of the calendar year.



46. In the event an employee has been on layoff and is recalled to work during any calendar year,
and such an employee has had earnings in the preceding calendar year, but solely because of such
layoff has not fulfilled the requirements of Par. 38 (A) of this Article, they shall be entitled to
vacation pay as outlined in Par. 45 above. Upon returning to work anytime in the year, such
employee will be eligible to receive their vacation pay upon giving one week’s notice but vacation
time off will be granted (if requested) consistent with Paragraph 38 of this Article.



47. Any employee who retires will receive whatever vacation with pay they have accrued and not
taken, plus pro-rated vacation time and pay they have accrued towards his/her next years vacation.
Retirees will be paid for all unused and accrued vacation within two (2) weeks of retiring.



ARTICLE VI

Seniority




48. General. The Company and the Union recognize that promotional opportunity and job security in
the event of promotions, decreases of forces, and rehirings after layoffs should increase in
proportion to length of continuous service, and that in the administration of this Article, full
consideration shall be given continuous service in such cases. “Continuous service”
as referred to herein, means a period of employment not interrupted by a break sufficient to
terminate the employee’s seniority.



49. Rule for Applying Seniority. In all cases of promotion or increase or decrease in forces
except when a different rule is stated, the following factors shall be considered; however, only
where factors (B) and (C) are relatively equal shall length of continuous service govern:




	 	(A)	 	Length of continuous service;
	 
	 	(B)	 	Ability to perform the work;
	 
	 	(C)	 	Physical fitness.





50. Seniority Defined. Length of continuous service as outlined in this Article is defined herein
as years, months, and days of service with the Company since the last date of hire. In cases where
two or more employees commence work on the same date, the following method will determine the most
senior employee:


Shift 3 = Most Senior

Shift 1 = Senior to employee who started on Shift 2

Shift 2 = Least Senior




 


14









 





In the case of two or more employees starting on the same shift and same date, at the orientation,
between the Union, employees, and the Company, the employees will draw a card from a deck of cards
and the high card will determine the most senior employee, which determination shall be final and
govern all future issues of relative seniority during their employment with the Company.
All affected employees who have not established permanent seniority shall do so as outlined by the
card drawing provisions of this Article. When seniority is established the Company will provide to
the Union a listing of the employees affected and a copy to the employee.



51. Transfer of Seniority. Employees transferred from one classification to another
classification, by job bid or promotion shall transfer their seniority to the new classification
after twenty (20) working days on the job to which they had bid or transferred, provided it is the
last classification to which they have bid or have been promoted. An employee thus transferred
shall serve a trial period of not less than one working day and not more than twenty (20) working
days, which period may be extended by mutual agreement. In cases covered by the above employees
will be allowed to wash themselves out during the trial period (on the job to which they had bid or
been promoted) by giving notice to the Company not later than the twentieth (20th) day,
provided they had not previously held the classification in the previous two (2) years.



52. Employees who wash themselves out as above specified or who are washed out by the Company shall
be entitled to return to their former job classification with full seniority. If there have been
other personnel moves which have resulted from their bid or promotion, the employees involved will
be returned to their former job classifications (to the extent that this is necessary in order to
accommodate the washout) with full seniority, and the Company will be entitled to postpone the
reverse moves caused by the washout until all resulting personnel moves may be accomplished without
the necessity of paying premium pay.



53. Employees who are transferred in lieu of layoff will immediately transfer their seniority to
the new classification.



54. Decrease in Forces. When a reduction in force is necessary, forces shall be reduced in the
following manner: (Subject to the exceptions in Article XI, Par. 113).



55. The Company will allow in certain situations for a voluntary layoff to occur. If this happens,
the following guidelines will apply on a seniority basis:




	 	a)	 	The voluntary layoff period will be for a maximum of four (4) weeks. This
time period may be extended when the Company, Union and an employee mutually agree.
	 
	 	b)	 	The voluntary layoff option will be made available to those Employees in
the classification whose work assignments are being immediately affected by the
reduction. No employee on voluntary layoff will be allowed to exercise their
seniority in any classification.
	 
	 	c)	 	When it is determined that a recall is needed, the person who went out on
involuntary layoff would be recalled prior to a person who volunteered.
	 
	 	d)	 	If it is determined that production needs change and all other options have
been exhausted, the Company would have the option to recall a person on voluntary
layoff.
	 
	 	e)	 	Upon return from voluntary layoff the employee will return to his/her
previous classification and shift.
	 
	 	f)	 	During a voluntary layoff, a person would retain their Insurance consistent
with the Insurance Agreement in the contract.
	 
	 	g)	 	In the event there are insufficient volunteers for a required layoff, the
procedures prescribed in this Article concerning decreases in forces will apply.




 


15









 










56. (1) Probationary employees will be the first to be displaced from the classification(s) to be
reduced; (2) Next, employees who have not acquired seniority in the classification as provided in
Par. 51 shall be displaced from the classification(s) to be reduced and shall be returned to the
classification in which they still hold seniority. (Employees who have been transferred into the
classification pursuant to Par. 57 shall be excepted from this group and shall be considered on the
basis of their total seniority as part of the group considered in sub-paragraph (3) hereof). (3)
Next, employees will be displaced from such classification(s) on the basis of their seniority in
the classification, on the basis of the factors in Par. 49.



57. Employees who are displaced from their regular classification shall be offered a job
opportunity in a vacant job or in a job held by an employee with less seniority, as follows:



(1) To a job classification for which the employee is fully qualified by previous
classification and satisfactory performance in the job classification for the Company, or



(2) To a job classification for which the employee qualifies under the factors set forth in
Par. 49, without any training period.



58. Employees displaced in the above process shall be considered on the same basis as specified in
Par. 56 hereof for reduction of forces in a classification. Such employees who are displaced in
this process shall be given a similar opportunity. Employees who are displaced under the above
procedure and who do not have sufficient seniority and qualification to secure another job under
the above procedure shall be laid off from the Company.



59. In the event of partial or complete shutdown of manufacturing operations during straight-time
hours for the purpose of taking inventory, seniority by shift shall apply only among employees in
the same job classification doing the same type of work. Employees performing such work will be
paid at their classification rate. During overtime hours for the purpose of taking inventory, the
Appendix “C” Overtime Distribution Agreement shall apply.



60. Employees who have completed their probationary period and who are scheduled for a layoff for a
period exceeding three (3) working days, shall be notified at least three (3) working days prior to
such layoff. The Union shall be notified as soon as practicable after the Company makes the
determination to lay off employees. In the event an employee is temporarily laid off for a period
of not more than three (3) working days, due to lack of work or other legitimate causes, the
employee with the least continuous service in the classification affected shall be laid off.



61. Employees may elect layoff instead of exercising their seniority or shift rights to displace a
less senior employee in a different classification. (The Company will provide the employee and
Union with a list of the different classifications that have less senior employees.) Employees
electing layoff under this Paragraph will only be eligible for recall to their regular assigned
classification or to such other classifications as they designate in writing to Human Resources at
the time of layoff. Such employees shall be notified by certified mail that their rights are due to
expire. Such notice will state that they must accept the next recall for which they are eligible or
terminate their seniority and all employment rights. In no event shall the employee’s seniority be
extended for a period greater than that specified in Par.63 (E). The president of the local union
shall appoint two (2) committee members to be present in the Layoff & Recall meeting prior to
notice being given to employees of such Layoff or Recall. Only one (1) of the appointed members
may be present at the meeting with the employees.


 


16









 





62. Recall to occur as follows:





	 	I.	 	When increasing the workforce in an area without adding to the overall plant
headcount, both shift preference and recalls, direct and indirect, will be honored
based on seniority. If the position is not filled through this process, then the
position will be posted.
	 
	 	II.	 	Opening occurs in classification that has employees on layoff and most senior
person on layoff is from the classification that is being recalled.
	 
	 		 	A. The person with the most seniority with the Company shall be recalled by
telephone or certified mail.
	 
	 		 	B. The person recalled is expected to advise the Company of their availability for
recall upon contact by telephone, or if unable to be contacted by telephone, shall
have forty-eight (48) hours after sending certified mail to notify the Company of
their availability for work and must report for work not later than the beginning
of their shift on the third working day following the day the notice to report was
sent.
	 
	 		 	(1) In the event the employee does not accept recall or fails to report for work,
their seniority and all employment rights will be terminated.
	 
	 	III.	 	Opening occurs in classification that has employees on layoff. However, there
are more senior employees on layoff from other classifications.
	 
	 		 	A. The Company shall recall the most senior person, regardless of their
classification, who is fully qualified to perform the work of that classification
by:






(1) Previous classification and satisfactory performance in the job
classification for the Company, or




(2) Under the factors set forth in Paragraph 49, Article VI of the Basic
Agreement, without any training period.




	 		 	B. The person recalled is expected to advise the Company of their availability
for recall upon contact by telephone, or if unable to be contacted by telephone,
shall have forty-eight (48) hours after sending certified mail to notify the
Company of their availability for work and must report for work not later than the
beginning of their shift on the third working day following the day the notice to
report was sent.
	 
	 	 	 	In the event the employee does not accept recall or fails to report for work, their
seniority and all employment rights will be terminated.
	 
	 	IV.	 	Opening occurs in classification that has no employees on layoff. However,
there are employees on layoff from other classifications.
	 
	 		 	A. That job shall be posted in accordance with Article VI, Par. 70 of the Basic
Agreement.
	 
	 		 	B. After job posting and selection procedures have occurred, persons on layoff
will be recalled to the job vacancy that would then exist in accordance with Part I
and Part II, if applicable. If Part I and Part II are not applicable, persons will
be recalled in accordance with length of continuous service, physical fitness and
ability to perform the work, without any training period.




 


17









 





	 	 	 	C. The person recalled is expected to advise the Company of their availability for
recall upon contact by telephone, or if unable to be contacted by telephone, shall
have forty-eight (48) hours after sending certified mail to notify the Company of
their availability for work and must report for work not later than the beginning
of their shift on the third working day following the day the notice to report was
sent.




	 	 	 	In the event the employee does not accept recall or fails to report for work, their
seniority and all employment rights will be terminated.
	 
	 	 	 	NOTE: Employee’s recalled from layoff that are unable to return to work due to
medical reasons shall be placed on medical leave of absence provided the employee
accepts the recall.





63. Loss of Seniority. Continuous service as outlined in this Article shall be broken and
employees shall not be considered as having any length of continuous service or any employment
relationship whatsoever with the Company:



(A) If they shall quit;



(B) If they shall have been discharged for proper cause;



(C) If they fail to report for work, or make satisfactory explanation of such failure within
forty-eight (48) hours after notification has been sent to report for work by certified mail, one
copy of such notification being tendered to the Union Committee. Such notice shall not be sent
unless such employee has been absent and has failed to notify the Company by the middle of the
employee’s shift on the second consecutive working day of the reason for such absence, or;



(D) If they fail to report on schedule following a vacation or an authorized leave of absence
without giving a reasonable excuse (employees who present an excuse for such absence will be
permitted to work after the presentation of the excuse until such time as the Company decides
whether to honor the excuse as an exception to the rule) or;



(E) If they shall have been absent from the service of the Company for any reason (except for a
leave of absence for military service) for a period of two (2) years, where such employee has been
continuously employed for over ninety (90) calendar days and not over two (2) years shall be
considered as having lost their seniority and employment relationship if they have been absent from
the service of the Company for a period equal to their length of service with the Company. Absence
due to a compensable disability incurred during the course of employment shall not break continuous
service provided such individual is returned to work within thirty (30) days after final payment of
statutory compensation for such disability, or after the end of the period used in calculating a
lump sum payment.



64. Probationary Period. A new employee, and others re-employed following a break in continuous
service, as outlined in Par. 63 above, will acquire seniority after they have completed ninety (90)
calendar days of employment, exclusive of any periods of absence due to medical reasons of five or
more consecutive days, from the date of their employment or re-employment with the Company. Such
employees shall be considered probationary employees until they have acquired seniority. There
shall be no responsibility for the re-employment of probationary
employees if they are laid off or discharged during this period. Probationary employees may file
and process grievances after thirty (30) calendar days from date of employment or re-employment but
may be laid off or discharged during their probationary period as exclusively determined by
Management.


 


18









 





65. Information to the Union. Every three months the Company shall furnish the Union with copies of
a seniority list and post copies on the bulletin boards of the Company. Once each month between the
quarterly lists, the Company will furnish the Union one copy of an updated seniority listing. The
company will also continue to provide the union with an updated list of shift preferences and
recalls periodically.



(A) No more than once per month, at the request of the union, the Company will provide a list of
hires, terminations, promotions, transfers and seniority of bargaining unit employees during the
preceding calendar month.



(B) The Company will continue to provide the Union with copies of written leave of absence forms,
written disciplines, names of employees who are to be laid off or who have been recalled (including
the date of notice and the name of the job classification involved), “employee record change
requests” and notices that appear on Company bulletin boards that pertain to the bargaining unit.
The Company will transmit this information within two (2) weeks after the action is taken or, in
the case of leave of absence, within one (1) week after the form is completed. Inadvertent failure
to transmit the information or failure of the Union to receive it shall not invalidate the action
involved, since the purpose of this provision is only to keep the Union informed. Errors shall be
corrected when discovered.



66. Shift/Job Transfers. Employees who have completed their probationary period who desire to
change shifts or jobs shall indicate their preference on a form provided by the Company. When a
vacancy occurs in a classification, an employee performing the same type of work in the
classification, with a written preference form on file, shall be given preference based on their
seniority for transfer where the vacancy exits, subject to the following conditions. To accept a
shift preference the employee must be able to fill the position within seven (7) calendar days from
the shift or job award, unless the employee is on an approved vacation.



(A) In the event it is not possible to transfer the employee in accordance with their preference
due to there not being an adequately qualified crew on the shift from which the transfer is to be
made, the transfer will be made as quickly as possible.



(B) The Company shall have the right to train new employees to the classification on the day shift
for a period of not to exceed thirty (30) working days (except that such period may be extended by
agreement of the parties), and any transfers shall not take place until this training is completed.



(C) In the event an employee is promoted in a classification, the employee thus promoted will
remain on the same shift and area unless there is a more senior employee in the classification
where the promotion occurs with a preference form on file. If this should occur the two employees
will exchange places.


 


19









 





(D) In the event the Company decides to decrease the number of employees in a classification on a
shift and increase the number of employees in the same classification on another shift within the
same area, the Company will utilize this Paragraph to achieve the necessary results. If
openings exist after all preferences have been utilized, the least senior employees (being
decreased) will be transferred and shall exercise their seniority rights regardless of shift or
area. All employees (direct or indirect) may utilize their seniority to bump a less senior
employee, and shall not be required to remain within their classification.



67. Employees granted a preference change under this Paragraph to their first choice shall not be
entitled to a preference change for a period of one hundred twenty (120) days. Employees granted
their second choice will continue to have their first choice on file unless changed by Paragraph
68.



68. Employees may withdraw or change their written preference at any time. However, the preference
form on file before Wednesday of any work week shall govern any changes to be effective in the
following work week and thereafter unless changed by subsequent preference form. In the event of a
reduction or recall from layoff in the work force in any department or shift, the Company will
notify the Union of these reductions or recalls at which time the preferences shall be frozen
effective midnight the day immediately preceding such notice. They shall remain frozen until the
displacements resulting from such reductions or recalls are complete.



69. Temporary Transfer. Vacancies of 45 days or less in a classification shall be considered as
temporary. The Company may fill such temporary vacancies as follows. Employees farmed into a
classification on any one shift will be considered one occurrence. The Company shall not exceed 45
occurrences in any individual classification in a 120 day period. Job vacancies in excess of 45
days may also be considered temporary such as the case where the vacancy is due to an employee
being on leave of absence due to occupational accidents and certified illness.



70. Job Posting. When a vacancy occurs or is expected to occur, (other than a temporary vacancy),
which has not been filled either by promotion, preference form or recall from layoff, the Company
shall, to the greatest degree practicable, post the job vacancy on bulletin boards
throughout the Company for a period of two (2) working days. Such posting will include the job
title, the location of the job, the pay rate, the shift, and the job description.



71. Non-probationary employees desiring such job shall apply for the job on a form prescribed by
the Company. The employee selected by the Company (such selection governed by Par. 49 of this
Article) shall be given a trial period of not less than one working day and not more than twenty
(20) working days, which period may be extended by mutual agreement. If it is determined by the
Company that they are not satisfactorily performing the job, or if employees wash themselves out
pursuant to the terms of Article VI, Par. 51, they shall be returned to their former classification
and the Company shall continue to make selections by seniority from the bidders and again provide a
trial period under the same procedure. If the next employee is washed out by the Company or washes
out pursuant to the terms of Article VI, Par.51, the Company after exhausting all bidders may
recruit from any available source. Upon bidding the job and being selected, the employee will not
be entitled to bid on another permanent job opening for a period of six (6) months, except in the
event the employee is not on the job they obtained through bidding due to a decrease in forces as
set forth in Par. 54.



72. An employee may withdraw a bid within one (1) working day after bids have been closed by giving
written notice to Human Resources or their supervisor. An employee withdrawing a bid in a timely
manner and/or an employee who is washed out by the Company during the trial period shall not be
subject to a bidding bar.


 


20









 





73. An eligible bidder shall be placed on their job within ten (10) working days after their
selection. Such ten (10) day period may be extended by mutual agreement between the Company and
Union.



74. A list of successful bidders shall be posted following the week in which the selections are
made. If posted jobs are not filled, and if the vacancy still exists, the Company shall re-post the
position within thirty (30) days.



75. An employee promoted from the bargaining unit may be returned but once by the Company to the
bargaining unit, provided such option is exercised by the Company not later than six months after
such promotion. Upon their return, the employee will be credited with the amount of accumulated
seniority they had as of the date of their promotion from the bargaining unit, and shall
immediately resume the accumulation of seniority.



ARTICLE VII

Military Service




76. The Company shall accord to each employee who applies for re-employment after conclusion of
military service with the United States such re-employment rights as they shall be entitled to
under then existing statutes. If the position of such employee has been eliminated, the Company
will use every reasonable effort to provide for the employee employment for which they can
satisfactorily qualify.



ARTICLE VIII

Leave of Absence




77. The Company, in cases where production requirements permit or unusual circumstances warrant,
may grant, at its discretion, a leave of absence upon written request made in the form prescribed
by the Company and upon good cause being shown for such leave for a definite period of not more
than eight (8) weeks. Additional leave may be granted in writing upon written request where deemed
justified, but in any event, no succession of leaves shall extend beyond one (1) year; provided
that in exceptional cases of extended absence because of illness or accident a longer leave of
absence may be granted at the Company’s discretion.



78. Up to five (5) employees at any one time (unless otherwise mutually agreed), as designated by
the Union, may request leave from the Company for up to 14 calendar days to serve as a delegate to
a union convention or for other official union business or training. Whenever possible, the Company
will be provided at least thirty days advance notice of any such leave. Notice given less than 30
days in advance of a leave will not be unreasonably denied. There shall be no deduction from
“continuous service” (under this Agreement or the Pension Agreement) for leaves granted under this
Paragraph.



79. Any employee (not exceeding three in number at any one time) selected by the Union to act as a
full-time official representative will be given a leave of absence by the Company for the duration
of such office. There shall be no deduction from “continuous service” (under this Agreement or the
Pension Agreement) for the first twelve (12) months (accumulative) of leave(s) of absence granted
under this Paragraph. After the first twelve (12) months of leave(s) of absence under this
Paragraph, “continuous service” will be frozen for the duration of such leave(s).



80. Pregnancy shall be treated the same as any other total or temporary disability and leave of
absence under the terms of this agreement.


 


21









 





81. In the event an employee on leave of absence accepts substitute gainful employment or
self-employment without the prior consent of the Company, their leave shall automatically be
considered cancelled and employment terminated without recourse, except in the following cases:




(A) As an official representative of the Union, or




(B) In some section of the United States (other than Winnebago County, Illinois, or Rock
County, Wisconsin), where such employee is residing temporarily because the illness of a
member of their immediate family.



82. An employee who is called for jury service shall be excused from work for the days on which
they serve and they shall receive, for each day of such service on which they otherwise would have
worked, the difference between eight (8) times their classification rate (plus shift premium if
applicable) and the payment they receive for jury service. The employee will present proof of such
service and the amount of pay received therefore. An employee who is subpoenaed for court
appearance and is not the plaintiff or defendant shall be excused from work for the court
appearance and shall be paid for each day lost for which they otherwise would have worked in the
same manner as provided for jury service, above. The employee will present proof of such appearance
and the amount of any pay received therefore.



ARTICLE IX

Adjustment of Grievances




83. It is agreed that the Union will establish a Shop Committee from employees in the bargaining
unit to meet with representatives of the Management for the purpose of presenting and
participating in the adjustment of grievances, and, when established, shall furnish the Company
with the names of the Committee members.



84. Such committee shall consist of three (3) members from the day shift and one (1) member each
from the second and third shifts, provided there are at least ten (10) or more employees for each
committee member on the second and third shifts. An additional committee member will be added at
such time, and for as long as, the bargaining unit exceeds 200 employees. Thereafter, an additional
committee member will be designated for every 100 employees added to the bargaining unit.



85. The Company shall recognize alternates appointed to fill a vacancy caused by the vacation or
leave of absence of a committee member, and such alternate shall be allowed to attend regular
monthly union meetings if they so request.



86. At such time as the entire committee is absent from the plant due to Labor Contract
negotiations, two (2) alternate committee members per shift affected may be appointed by the Union
and shall be recognized by the Company.



87. Should any difference or dispute arise between the Company and its employee(s) concerning
the meaning and application of the provisions of this Agreement, (or should the Union contend that
the Company has violated its obligations under the Agreement to the Union, as such) an earnest
effort shall be made to settle the difference orally. This oral effort shall be made by the
aggrieved employee (or in the case of a breach of obligation to the Union, as such, by a
committee member) and/or not to exceed two committee members at the option of the employee. If the
matter is not resolved orally, it shall be taken up in the following manner:


 


22









 





88. FIRST: In writing to the supervisor involved. A meeting shall be held within one (1) working
day after receipt of the written grievance. The Company will normally be represented at this
meeting by the supervisors involved, provided that the Company may designate alternate or
additional First Step Representatives in appropriate cases. The Union will be represented by the
grievant and up to two (2) shop committee members. The written grievance shall be answered by one
of the Company First Step Representative within two (2) working days after the first step meeting.
If the answer is not satisfactory the grievance shall be appealed to the next step by the Union
within four (4) working days of the written answer.



89. SECOND: Second step meetings will be held within (7) calendar days of the Union’s request
unless otherwise mutually agreed. The Company shall make its written answer within seven (7)
working days after the meeting at which the grievance is discussed. If the answer is not
satisfactory, the grievance shall be appealed to the next step by the Union within ten (10) working
days of the written answer.



90. THIRD: Between an International Representative of the Union, the Local Union President and/or
the two Chairpersons of the Shop Committee and the Managers of the Company and/or other Company
Representatives at a regular or special meeting. One or more witnesses may be called into the
meeting by agreement of the parties. The Company shall make its written answer within ten (10)
working days after the third step meeting in which the grievance is discussed.



91. FOURTH: If the Union is not satisfied with the third step answer of the Company, it may,
within thirty (30) calendar days of the date of the answer give notice of its intention to refer
the grievance to arbitration. (If the Company fails to give an answer within the time limit
prescribed at Step Three, the Union may elect to treat the grievance as having been denied and may
give notice of its intent to refer the matter to arbitration.) After such notice is given, the
Company and the Union will attempt to agree upon an impartial arbitrator. If no agreement is
reached within thirty (30) calendar days thereafter the Federal Mediation and Conciliation Service
(FMCS) will thereafter be asked to submit a panel of seven (7) arbitrators to the parties. The
parties shall, upon receipt of said panel, strike names alternately until one (1) name remains on
the panel; this remaining person shall serve as the impartial arbitrator. The arbitrator shall have
jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of
this agreement insofar as shall be necessary to the determination of grievances appealed to the
arbitrator. The arbitrator shall not have jurisdiction or authority to add to, detract from or
alter in any way the provisions of this Agreement.



92. Each party shall assume its own expenses in connection with arbitration, and the fee of the
arbitrator shall be paid by the two (2) parties, one-half (1/2) by each.



93. Grievances reduced to writing shall be dated and signed by the aggrieved employee(s) or their
Shop Committee Member, except that grievances relating to more than two (2) employees shall be
signed by at least two (2) aggrieved employees and the Shop Committee Member for the area(s)
involved. All answers by the Company and all appeals by the Union shall be in writing, dated and
signed by the Company or Union representative involved.



94. In the event an employee dies, the Union may process on behalf of their legal heirs any claim
they would have had relating to any monies due under the provisions of this Agreement.


 


23









 





95. Grievances settled shall be signed off by a Shop Committee Member and/or International
Representative.



96. Written grievances and appeals shall be answered by the Company Representative or their
designee within the time limit fixed therein or the Union may pass the grievance to the next step,
except that in Step 2, if the Company fails to answer within the time limits fixed therein it shall
be considered adjudicated in favor of the employee. Grievances not appealed within the specified
time limits shall not be eligible for further appeal. All time limits in this Article may be
extended with the written consent of the other party.



97. Meetings between the International Representative of the Union, the Local Union President
and/or the two Chairpersons of the Shop Committee or their alternates, and Managers of the Company
and/or other Company Representatives provided for in the third step of the grievance procedure,
shall be held at least once each month, prior to the fifteenth (15th) of the month to
consider all grievance appeals submitted during the preceding month. Special meetings will be
arranged on a date and at a time mutually satisfactory in regard to difficulties which may arise
and which need immediate attention.



98. Members of the Shop Committee will be afforded time off at their classification rate for
the purpose of attending meetings with the Company pursuant to the first three steps of the
grievance procedure. A member of the Shop Committee shall also be allowed time off when necessary
at their classification rate, to aid in the settlement of grievances in the area which they
represent. A committee member on Union activity shall obtain permission from their supervisor
(which shall not be unreasonably denied) and properly record their absence prior to leaving their
work station to conduct these activities; shall report their presence and their purpose to the
supervisor of the department in which they wish to conduct this activity; and shall report their
return to their supervisor at the conclusion of this activity. Members of the Shop Committee shall
do their utmost to see that their absence from their work station due to handling of grievances
shall be as little as practicable and shall do their utmost to see that their absence from the work
station does not interfere with production. Company paid time under this section is limited to a
weekly maximum of the sum of seven (7) hours times the number of active committee members (“the
pool”). All time used by the committee members will be deducted from the pool. Unused hours will
not be carried over from week to week.



99. All grievances must be presented promptly and not later than thirty (30) days after the cause
of the grievance arises unless the circumstances of the case made it impossible for the employee or
the Union to know that they had grounds for such claim prior to that date, in which case the
retroactivity shall not exceed thirty (30) days prior to the date the grievance was filed in
writing. Grievances involving discharge must be presented within three (3) working days of the
action (subject to Par. 103). Grievances alleging improper layoff must be presented within two (2)
working days of the Company notice to the employee of this intended layoff or there shall be no
retroactivity prior to the date of the grievance.



100. Grievances alleging improper recall must be presented within two (2) working days after notice
is given to the employee (at the address last given by them to the Human Resources
Department) that a less senior employee was recalled to a job classification to which they were
entitled, or there shall be no retroactivity prior to the date of the grievance. In cases of
retroactivity the employee will be paid at the rate of the job classification to which they were
entitled.


 


24









 





101. The Grievance Committee of the Union shall be notified and given a list of all employees
scheduled for layoff or recall prior to such layoff or recall taking place. The layoff list
proposed by the Company shall not become final until one working day after the Union has been
provided with the list.



102. The assignment of Shop Committee Members to their respective plant areas shall be a matter
of full knowledge to both the Union and the Company immediately. It is further agreed, for the
purpose of prompt settlement of grievances, that, where necessary, committee members will handle
grievances without restriction as to area.



103. Under the provisions of this Agreement, no employee, after their probationary period provided
in Par. 64 of Article VI, Seniority, shall be discharged or given a disciplinary layoff in excess
of five (5) days, without first being suspended. Such initial suspension shall be for not more than
five (5) working days. During this period of initial suspension, the employee may, if they believe
that they have been unjustly dealt with, request a hearing and a statement of the offense before
their supervisor or their superintendent or the Human Resources Department Representative, with a
Grievance Committee member or the plant committee present if they so desire. At such hearing, the
facts concerning the case shall be made available to both parties. After such hearing or if no such
hearing is requested, the management may conclude whether the suspension shall be converted into
discharge or disciplinary layoff, or dependent upon the facts of the case, whether such suspension
shall be extended, or revoked, or modified or affirmed. If the suspension is revoked, the employee
shall be returned to employment and made whole in the absence of mutual agreement to the contrary;
but in the event a disposition shall result in the affirmation, extension or modification of the
suspension, or in the discharge of the employee, the employee may within three (3) working days
after such disposition allege a grievance in writing on a regular grievance form which shall be
handled in accordance with the procedure outlined in this Article, beginning with Step Two. Should
any employee as a result of this grievance, have their discipline or discharge revoked, they shall
be returned to work and made whole. In the event of arbitration the arbitrator shall determine
what, if any, substitute earnings or compensation are to be offset.



104. Where discipline of an employee is involved or there is a dispute as to the correctness of an
employee’s record of absence/tardiness, an employee or (with the employee’s permission) their Shop
Committee Member may review their record of absence/tardiness in the presence of a supervisor.



ARTICLE X

Bulletin Boards




105. The Company agrees to provide up to two (2) glassed in bulletin boards with locks to be placed
at the South Beloit plant which may be used exclusively by the Union for posting notices signed by
the Union Secretary or the President of the Local Union and restricted to:




	 	1.	 	Notices of Union recreational and social affairs.
	 
	 	2.	 	Notices of Union appointments and results of Union elections.
	 
	 	3.	 	Notices of Union meetings.
	 
	 	4.	 	Notices of Union elections.
	 
	 	5.	 	Notices, which shall be non-controversial in nature, approved by Company
Representatives.





106. It is agreed that the Company may remove any notice which is not in accordance with the
above restrictions.


 


25









 





ARTICLE XI

Wages




107. New and/or changed jobs shall be described and classified in accordance with the National
Position Evaluation Program, which may be modified as necessary by mutual agreement. The new or
changed description and classification shall then be submitted to the job evaluation committee and,
if agreed to, shall then be established. If no agreement is reached, the Company may place the
description and classification in effect, after which a grievance may be filed at any time within
the next thirty (30) days, contending that the job has been improperly described and/or classified.



108. Job evaluation points assigned to a job classification shall be changed only when it has been
established that there have been changes in the job content or by mutual agreement.



109. The standard hourly wage schedule of rates for the respective job classes set forth in
Appendix “A” shall become effective and shall remain in full force and effect for the duration of
this Agreement. A schedule of jobs in each job class is also included in Appendix “A.” Appendix “A”
constitutes the minimum rates of pay for the applicable job classification (direct and indirect as
applicable) and are incorporated by reference and are fully made a part of this Agreement.



110. Employees hired on or after May 17, 2006 for all job classifications, shall serve a
progression period where applicable, or will enter at the starting wage rate set forth in Appendix
“A”. Progression increases may be subject to demonstration of required skills on milestone dates.
Bidding into a higher classification will result in applicable new hire rate.



111. Effective on or after August 6, 2006, employees hired prior to May 17, 2006 bumping into a
lower classification will result in applicable Incumbent rate. Bidding into a higher
classification will enter at the 6 month progression rate for new classification set forth in
Appendix “A”.



112. It is understood and agreed that nothing contained in this Article shall prevent the Company
from paying a present employee or a new employee the rate of the job classification to which they
are transferred or assigned, provided they are qualified and able to perform the work
satisfactorily.



113. When a reduction of employees occurs in a classification or in the Company, an employee who
has attained a classification above the lowest grade in an occupational group (see Appendix B)
shall not be reduced in rate as long as they are retained at work within that occupational group.
Such rate retention shall also apply in the event such an employee is recalled to the occupational
group from a job classification outside of the occupational group or from layoff out of the plant.



114. An employee wishing to be reduced in classification within an occupational group may exercise
this right but once and only in the event there is a posted opening.



115. When employees are temporarily assigned to another job classification outside their own
occupational group, they shall be paid on the basis of either the rate of their regular job
classification or the rate of the classification to which they are assigned, whichever is greater.


 


26









 





116. Indirect. When an indirect employee is temporarily assigned to another indirect job
classification outside their own occupational group, they shall be paid on the basis of either the
indirect rate of their regular job classification or the indirect rate of the classification to
which they are assigned, whichever is greater. When an indirect employee is temporarily assigned to
a direct job classification outside their own occupational group, they shall be paid the higher of
the rate of their regular job classification or the rate of the job classification to which they
are assigned.



Direct. When a direct employee is temporarily assigned to another direct job classification
outside their own occupational group, they shall be paid the higher of the direct rate of their
regular job classification or the direct rate of the job classification to which they are assigned.
An employee who is classified in a direct labor classification and who is temporarily transferred
to an indirect labor classification, other than pursuant to Article VI, shall be paid either the
rate of their regular classification or the rate of the classification to which they are assigned,
whichever is greater.



Employees hired on or after January 28, 1984, who are working under the new hire rate progression,
will be paid the appropriate rate provided for in this Paragraph when temporarily transferred,
reduced to the applicable rate based upon their time in the new hire rate progression.



117. No employee shall be temporarily transferred to another classification outside their
occupational group (unless they consent) if there is an employee from another occupational group
working in the group and shift and in the Operation to which they are regularly assigned; provided
that this limitation shall not apply when an employee has been temporarily transferred out of the
occupational group because of disability or their own request.



118. It is agreed that a shift differential shall be paid to an employee regularly assigned to
other than the day shift as follows: an employee who works four or more hours after 3:00 p.m. and
before 11:00 p.m. shall receive a differential of fifty-five (.55) cents per hour for each hour
worked; an employee who works four or more hours after 11:00 p.m. and before 7:00 a.m. shall
receive a differential of sixty-five (.65) cents per hour for each hour worked. An employee
regularly assigned to the first shift shall not receive a shift differential for overtime work. No
change in method of shift differential pay will be made for an employee temporarily transferred
from one shift to another for a period not exceeding one day. If such transfer exceeds one day, the
shift differential shall be, or shall not be, paid in accordance with the provisions of this
Paragraph relating to the shift on which they are temporarily working.



119. Saturday and Sunday shall be as defined in Article IV, Par. 24.



120. In the event the work of a job classification as set forth in Appendix “A” is discontinued or
becomes inoperative, the Union will be immediately notified of the reason thereof. Such
notification does not preclude the filing of a grievance should any disagreement arise between the
parties.



121. Pay Adjustments and Corrections. Where a “retro” adjustment involves a deduction from the
employee’s pay, no more than $50 will be deducted from any one check. In the case of gross errors
the $50 maximum will not apply and other arrangements will be made.


 


27









 





ARTICLE XII

Cost-of-Living




122. For the term of this contract, the cost-of-living provisions will be frozen.



123. (A) Except as set forth below in sub-paragraph (C)(3) and (4), all cost-of-living adjustments
provided in this Article shall be accumulated in a cost-of-living float which shall be an “add-on,”
and shall not be part of an employee’s classification rate. Such adjustments shall be payable only
for clock hours actually worked and for reporting allowances and shall be included in the
calculation of overtime premium, but, except as provided below, shall not be part of the employee’s
pay for any other purpose and shall not be used in calculation of any other pay, allowance, or
benefit. Cost-of-living adjustments will be included in the calculation of holiday pay as defined
in Paragraph 31 of this Agreement. Vacation pay in any year will be calculated from the prior
year’s earnings as stated on the Wage and Tax Statement (Form W2) in accordance with Paragraph 37
of the Agreement.



124. (B) The United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index
for Urban Wage Earners and Clerical Workers — C.P.I. — W U.S. City Average: All items 1982-84 = 100
shall be used as the basis for cost-of-living adjustments provided for in sections (C), (D) and (E)
below. Such index shall be referred to as the “BLS-CPI.”



125. (C) (1) During the calendar year 1999, there shall be four (4) cost-of-living adjustment
dates: February 1, 1999, May 1, 1999, August 1, 1999,
and November 1, 1999.


(2) The cost-of-living adjustment added to the cost-of-living float on such date (if a Monday) or
on the first Monday following such 1999 adjustment dates, if any, will be an adjustment of one cent
($.01) for each full four-tenths (.4) points movement in the BLS-CPI index figures (after the six
cent [$.06] “set off” or “corridor” set forth in [C] [3] below) based upon the following
calculation months for the following 1999 adjustment dates:



February 1, 1999 – Subtract September, 1998 index figure from the December, 1998 index figure.



May 1, 1999 – Subtract December, 1998 index figure from the March, 1999 index figure.



August 1, 1999 – Subtract the March, 1999 index figure from the June, 1999 index figure.



November 1, 1999 – Subtract the June, 1999 index figure from the September, 1999 index figure.



If the calculation for any quarterly adjustment when dividing four-tenths (.4) into the applicable
BLS-CPI index change between calculation month indexes results in tenths of the index left over,
such tenths will be carried over into the BLS-CPI index change between the calculation month
indexes for the next quarterly adjustment.



(3) The first six cents ($.06) which the above formula would otherwise generate for 1999
cost-of-living adjustments on the 1999 adjustment dates will not be paid in any form. No 1999
cost-of-living adjustments will be added to the cost-of-living float until the first six cents
($.06) which the application of the formula would produce has been exceeded and then only the
amount generated in excess of six cents ($.06) shall be added to the cost-of-living float.



126. (D) (1) During the calendar year 2000, there shall be four (4) cost-of-living adjustment
dates: February 1, 2000, May 1, 2000, August 1, 2000, and November 1, 2000.



 


28









 





(2) The cost-of-living adjustment added to the cost-of-living float on such date (if a Monday) or
on the first Monday following such 2000 adjustment dates, if any, will be an adjustment of one cent
($.01) for each full four-tenths (.4) points movement in the BLS-CPI index figures (after the six
cent ($.06) “set off” or “corridor” set forth in (D) (3) below based upon the following calculation
months for the following 2000 adjustment dates:



February 1, 2000 – Subtract the September, 1999 index figure from the December, 1999 index figure.



May 1, 2000 – Subtract the December, 1999 index figure from the March, 2000 index figure.



August 1, 2000 – Subtract the March, 2000 index figure from the June, 2000 index figure.



November 1, 2000 – Subtract the June, 2000 index figure from the September, 2000 index figure.



If the calculation for any quarterly adjustment when dividing four-tenths (.4) into the applicable
BLS-CPI index change between calculation month indexes results in tenths of the index left over,
such tenths will be carried over into the BLS-CPI index change between the calculation month
indexes for the next quarterly adjustment.



(3) The first six cents ($.06) which the above formula would otherwise generate for 2000
cost-of-living adjustments on the 2000 adjustment dates will not be paid in any form. No 2000
cost-of-living adjustments will be added to the cost-of-living float until the first six cents
($.06) which the application of the formula would produce has been exceeded and then only the
amount generated in excess of six cents ($.06) shall be added to the cost-of-living float.



127. (E) (1) During the calendar year 2001, there shall be four (4) cost-of-living adjustment
dates: February 1, 2001, May 1, 2001, August 1, 2001, and November 1, 2001.



(2) The cost-of-living adjustment added to the cost-of-living float on such date (if a Monday) or
on the first Monday following such 2001 adjustment dates, if any, will be an adjustment of one cent
($.01) for each full four-tenths (.4) points movement in the BLS-CPI index figures (after the three
cent ($.03) “set off” or “corridor” set forth in (E) (3) below) based upon the following
calculation months for the following 2001 adjustment dates:



February 1, 2001 – Subtract September, 2000 index figure from the December, 2000 index figure.



May 1, 2001 – Subtract December, 2000 index figure from the March, 2001 index figure.



August 1, 2001 – Subtract the March, 2001 index figure from the June, 2001 index figure.



November 1, 2001 – Subtract the June, 2001 index figure from the September, 2001 index figure.



If the calculation for any quarterly adjustment when dividing four-tenths (.4) into the applicable
BLS-CPI index change between the calculation month indexes results in tenths of the index left
over, such tenths will be carried over into the BLS-CPI index change between the calculation month
indexes for the next quarterly adjustment.



(3) The first three cents ($.03) which the above formula would otherwise generate for 2001
cost-of-living adjustments on the 2001 adjustment dates will not be paid in any form. No 2001
cost-of-living adjustments will be added to the cost-of-living float until the first three cents
($.03) which the application of the formula would produce has been exceeded and then only the
amount generated in excess of three cents ($.03) shall be added to the cost-of-living float.



 


29









 





128. (F) In no event will a reduction of the BLS-CPI and the application of the formulas set forth
in Subsection (C), (D) and (E) provide the basis for a reduction of an employee’s base rate and
such reduction shall reduce the cost-of-living “add on” only to the extent of the amount
accumulated in the cost-of-living float for the quarter or quarters involved.



129. (G) No adjustments, retroactive or otherwise, shall be made due to any revision which may
later be made in the published BLS-CPI index for any month or months specified in Subsections (C),
(D) and (E) above.



130. (H) Should the BLS-CPI, in its present form and on the same basis (including composition of
the “Market Basket” and Consumer Sample) as the last index published prior to January 1, 1999
become unavailable, the parties shall attempt to adjust this Article or, if agreement is not
reached, request the Bureau of Labor Statistics to provide the appropriate
conversion or adjustment which shall be applicable thereafter. The purpose of such conversion shall
be to produce as nearly as possible the same result as would have been achieved using the BLS-CPI
in its present form.



131. (I) In the event the Bureau of Labor Statistics does not issue the Consumer Price Index on or
before the beginning of the pay periods referred to above, any adjustments required will be made at
the beginning of the first pay period after receipt of the Index.



ARTICLE XIII

Safety and Health




132. The Company and the Union will cooperate in the objective of eliminating accidents and health
hazards. The Company shall continue to make reasonable provisions for the safety and health of its
employees at the plants during the hours of their employment. The Company, the Union and the
employees recognize their obligations and/or rights under existing federal and state laws with
respect to safety and health matters.



133. Protective devices and safety apparel necessary to properly protect employees from
injuries shall be provided by the Company. Complaints concerning inadequate heating and/or
ventilation will be given prompt and due consideration.



134. The Company will request a physical examination of each and every new employee hired before
they report for work. They may from time to time request a physical examination of employees now on
the payroll of the Company. It is expressly understood and agreed that any physical examination of
employees on the payroll shall be made at the Company’s expense and shall not be done for the
express purpose of separating the employee from the payroll of the Company.



135. Employees injured at work who, upon direction of the Company approved medical provider or
facility, are unable to complete their shift shall be paid at their classification rate for the
difference between the hours actually worked on that day and



(1) On Monday through Friday, the hours they were actually scheduled to work that day, but not
more than eleven; or



(2) On Saturday, Sunday or holiday if the injury took place during the first four (4) hours of
work, four (4) hours at the applicable premium rate of pay; or, if the injury took place after four
(4) hours of work, the number of hours for which they were scheduled (not in excess of eight) at
the applicable premium rate of pay.



Nothing herein is intended to prevent employees from seeing a doctor of their own choice, but if
they do so on the day of the injury payment under this clause shall require the concurrence of the
Company.





 


30











 




136. A Safety Committee consisting of three employees designated by the Union and at least two
management members designated by the Company shall be established to cover the plant. The Safety
Committee shall hold monthly meetings at times determined by the Committee. The Committee may
engage in periodic safety tours of the items agendaed as part of its regular safety meetings. Time
spent in committee meetings and official committee plant tours shall be considered hours worked to
be compensated by the Company. The function of the Safety
Committee shall be to advise the plant management concerning safety and health and to discuss
legitimate safety and health matters but not to handle grievances. In the discharge of its
function, the Safety Committee shall: consider existing practices and rules relating to safety and
health, formulate suggested changes in existing practices and rules, recommend adoption of new
practices and rules, review proposed safety and health programs developed by management and review
accident severity and frequency statistics. All accidents involving fatalities or serious disabling
injuries, or such other serious situations as merit investigation, such as fires, explosions, or
like catastrophes shall be agendaed to the Safety Committee for consideration. Upon request, the
Union Safety Committee will be given access on a confidential basis to reports or studies that
directly relate to safety hazards, health or dangerous conditions that exist in the plant (e.g.,
air sampling and noise monitoring). A Union Safety Committee Member upon notice to the Management
Safety Council shall be given affordable time to present issues pertaining to safety, at the
Management Safety Council meeting.



137. The Union Chairperson or a designee shall be notified immediately when a serious accident has
occurred. By the tenth of each month the Company will provide the Union a list of all employees who
were sent from work to the physician for treatment during the prior month for work related (or
claimed work related) injuries claimed at work during that month.



138. The Union Chairperson or a designee will be afforded time off from their job as may be
required to visit departments’ at all reasonable times for the purpose of transacting the
legitimate business of the Committee, after notice to the supervisor of the department to be
visited and the permission (which shall not be withheld) from their own supervisor. The Company
will pay up to four (4) hours/week toward the time spent in such activity.



139. New rules and regulations applicable to safety and health will be posed and discussed with the
Safety Committee with the objective of increasing employee cooperation.



140. Recommendations of the Safety Committee shall be submitted to the appropriate Manager for
their consideration and for such action that they may consider consistent with the Company’s
responsibility to provide for the safety and health of its employees during the hours of their
employment and the mutual objective set forth in Par. 132.



141. Grievances involving safety matters shall first be raised orally between the grieving employee
and their supervisor as provided in the grievance procedure. If the grievance is not satisfactorily
resolved, the employee may immediately (within two (2) working days) file in writing in the second
step under such procedure.



ARTICLE XIV

Insurance and Pensions




142. Any benefits payable under said provisions will be coordinated so that the total benefits
payable under all such group plans will not exceed 100% of the charges for such services.



143. The term “employer group or prepayment plan” is defined as any group plan for which any
employer makes contributions or for which any employer provides a means of collecting contributions
required by employees (including payroll deduction).



144. The Pension Agreement, Health Benefits, 401K Plan, Dental Plan, Life and A& S Benefits as
provided for in this Agreement shall remain in effect for the term of this Agreement
unless mutually agreed to between the Company and the Union.


 


31









 





ARTICLE XV

Severance Allowance




145. When in the sole judgment of the Company it decides to permanently discontinue the
operation of a plant or a substantial section of a plant and finds it necessary to terminate the
employment of employees as a result thereof, any employee whose employment is terminated either
directly or indirectly as a result thereof and who is not entitled or indirectly as a result
thereof and who is not entitled to other employment with the Company under the provisions of
Article VI of this Agreement or Par. 147 below will be entitled to a severance allowance in
accordance with and subject to the provisions of this Article.



146. Eligibility. To be eligible for a severance allowance an employee must have accumulated one
or more years of seniority at the time of termination, as computed in accordance with Article VI of
this Agreement.



147. As an exception to Par. 146 above, however, any employee otherwise eligible for a severance
allowance that is offered a job within the bargaining unit under the provisions of Article VI of
this Agreement will not be entitled to severance allowances whether they accept or reject the job
offer. If such a transfer results directly in the permanent termination of some other employee,
that employee will then be eligible for a severance allowance, subject to all of the other
provisions of this Article.



148. In lieu of severance allowance, the Company may offer an eligible employee a job outside the
bargaining unit. The employee will have the option of either accepting the job offered or receiving
severance allowance.



149. Scale of Allowance — An eligible employee will receive a severance allowance based on his
seniority at the time of termination as follows:



	 	 	 	 	 
	 	 	Weeks of
	 	 	Severance
	Seniority as of Date of Termination	 	Allowance
	 
	 	 	 	 
	1 year but less than 2 years
	 	2 weeks
	2 years but less than 5 years
	 	4 weeks
	5 years but less than 10 years
	 	6 weeks
	10 years but less than 20 years
	 	8 weeks
	20 years or more
	 	12 weeks






150. Calculation of Allowance — A week of severance allowance will be calculated in accordance
with the provisions for calculating a week of paid vacation as set forth in Article V of the
Agreement.



151. Payment of Severance Allowance — Payment of any severance allowance for which an employee may
be eligible will be made in a lump sum at the time of termination.



152. Notwithstanding any other provisions of this Article, any employee who is eligible for a
severance allowance under the provisions of this Article, may, at the time of termination, elect to
be placed on layoff status for a period of one (1) year, rather than to be terminated and receive
severance allowance. At the end of such period, such an employee may elect to remain on layoff
status or to be terminated and receive the severance allowance to which they are entitled. If such
an employee elects to remain on layoff at the expiration of such period, they will forfeit their
right to the severance allowance to which they would otherwise be eligible.


 


32









 





153. An employee who voluntarily terminated their employment with the Company before they are
terminated by the Company will not be entitled to a severance allowance.



154. Nonduplication of Allowance. Severance allowance shall not be duplicated for the same
severance, whether the other obligation arises by reason of contract, law, or otherwise. If an
individual is or shall become entitled to any discharge, liquidation, severance or dismissal
allowance or payment of similar kind by reason of any law of the United States of America or any of
the states, districts, or territories thereof subject to its jurisdiction, the total amount of such
payments shall be deducted from the severance allowance to which the individual may be entitled
under this Article, or any payment made by the Company under this Article may be offset against
such payments. Statutory unemployment compensation payments shall be excluded from the
nonduplication provisions of this Section, except that the severance allowance will be allocated by
the Company to the equivalent number of weeks immediately following termination.



ARTICLE XVI

Termination, Expiration and Scope




155. The terms and conditions of the Agreement shall continue in full force and effect until 12:00
p.m. (midnight), March 28, 2010, and shall continue in full force and effect indefinitely
thereafter, provided, however, that either party may terminate this Agreement at any time on or
after March 28, 2010 by giving to the other party at least sixty days prior written notice by
certified mail of its election to terminate. In the event the Company shall desire such termination
of the Agreement, such notice shall be sent by certified mail to the District Office of the United
Steelworkers, 1126 South 70th Street, Suite N509A, West Allis, WI 53214 and a copy shall
be sent to the offices of Local Union 3245 at 1620 Shore Drive, Beloit, Wisconsin, 53511. In the
event the Union shall desire such termination of the Agreement, notice of such desire shall be sent
by the Union by certified mail to the offices of the Company, 449 Gardner Street, South Beloit, IL
61080. Either party may by written notice change the address to which certified mail notice to it
shall be given.



ARTICLE XVII

Compliance with Law




156. It is understood and agreed that if any of the terms and provisions of this Agreement are, or
become in violation of any State or Federal laws, they are null and void so long as they may be in
violation, and it is further agreed that the parties hereto shall immediately meet for the purpose
of resolving any term or provisions so indicated.


 


33









 





	 	 	 
	UNITED STEELWORKERS	 	WARNER ELECTRIC, LLC.
	 
	 	 
	Leo W. Gerard
	 	Stan Owens
	     President United Steelworkers
	 	     Operation’s  Manager, N.A.
	 
	 	 
	James D. English
	 	Dave Ebling
	     Secretary-Treasurer
	 	     VP/GM ECB Group
	 
	 	 
	Thomas Conway
	 	Charles Evans
	     Vice President (Administration)
	 	     Human Resources Manager
	 
	 	 
	Fred Redmond
	 	Gary Simpler
	     Vice President (Human Affairs)
	 	     Legal Counsel
	 
	 	 
	Mike Bolton
	 	Chet Shubert
	     Director District 2
	 	     Vice President
	 
	 	     Human Resources
	Dennis Latus
	 	 
	     Staff Representative
	 	Dan Heise
	 	 	     Plant Operations Manager
	Steve Reynolds
	 	 
	     President, Local 3245
	 	Judy Crandall
	 	 	     Human Resources
	James Elliott
	 	     Representative
	     Committeeperson
	 	 
	 
	 	 
	Jada Hammond
	 	 
	     Committeeperson
	 	 
	 
	 	 
	Phil Sholes
	 	 
	     Committeeperson
	 	 






 


34









 





September 19, 1986




Mr. Lawrence Duncan

Staff Representative




United Steelworkers of America

Beloit, Wisconsin 53511




Dear Mr. Duncan:




Our policy is to utilize our own employees to the maximum practical extent in production and
maintenance work. At the same time, it is recognized that problems of skill, equipment, time,
economy, and know-how may render it necessary or expedient to subcontract. Whenever the Union feels
that subcontracting involves work which could be done economically and within the prescribed time
limits by bargaining unit employees, the Company will discuss and explain the matter upon request
to the Union. It is further agreed that the Company will notify the Union in writing prior to
subcontractors coming into the plant to perform such work or such work being sent out, or contracts
to perform such work being signed by management. This letter is not merely meant to constitute a
notification procedure but it is intended to, where possible, provide sufficient advance notice so
as to allow the Union to, upon request, discuss the decision.



Sincerely,




Donald F. Sorensen




Manager — Employee Relations

Warner Electric Brake & Clutch Company



 


35









 





Pension




For employees who retire or otherwise become eligible on or after January 30, 2005 the following
formulas apply:




Formula to be used for benefits received effective January 30, 2005:

$31.00 multiplied by years of accrued service.



For purposes of pension accrual years of continuous service will be frozen July 3, 2006.
Employees who reach 30 years of service and who are at least 57 years of age will be eligible to
receive a lump sum payment based on frozen pension accrued.


 


36









 





APPENDIX “A”




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2/1/2009	 
	 	 	2008	 	 	$500 Lump	 
	 	 	Base	 	 	INCREASE	 
	Assembler A (Direct labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	14.77	 	 	 	0	 
	Starting Wage Rate
	 	 	13.77	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	14.02	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	14.27	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	14.52	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	14.77	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Assembler B (Direct labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	14.06	 	 	 	0	 
	Starting Wage Rate
	 	 	10.92	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	11.19	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	11.44	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	11.71	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	11.96	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Machinist (Direct labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	17.18	 	 	 	0	 
	Starting Wage Rate
	 	 	14.57	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	15.14	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	15.71	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	16.28	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	16.85	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Shop Coordinator (Direct labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	17.64	 	 	 	0	 
	Starting Wage Rate
	 	 	15.09	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	15.64	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	16.19	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	16.74	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	17.29	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Material Handler (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	13.32	 	 	 	0	 
	Starting Wage Rate
	 	 	10.92	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	11.19	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	11.44	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	11.71	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	11.96	 	 	 	0	 






 


37









 





	 	 	 	 	 	 	 	 	 
	 	 	2008	 	 	2/1/2009	 
	 	 	Base	 	 	INCREASE	 
	Inspector (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	15.86	 	 	 	0	 
	Starting Wage Rate
	 	 	13.53	 	 	 	0	 
	Wage Progression (3 months post hire)
	 	 	14.10	 	 	 	0	 
	Wage Progression (6 months post hire)
	 	 	14.67	 	 	 	0	 
	Wage Progression (9 months post hire)
	 	 	15.24	 	 	 	0	 
	Wage Progression (12 months post hire)
	 	 	15.81	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Truck Driver (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	15.49	 	 	 	0	 
	Starting Wage Rate
	 	 	14.57	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Truck Driver Diesel (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	16.04	 	 	 	0	 
	Starting Wage Rate
	 	 	14.83	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Tool & Die Maker (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	18.88	 	 	 	0	 
	Starting Wage Rate
	 	 	18.33	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Senior Tool & Die Maker (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	19.26	 	 	 	0	 
	Starting Wage Rate
	 	 	18.33	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Master Mechanic (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	18.63	 	 	 	0	 
	Starting Wage Rate
	 	 	18.09	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Senior Master Mechanic (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	19.08	 	 	 	0	 
	Starting Wage Rate
	 	 	18.09	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Electrician (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	19.67	 	 	 	0	 
	Starting Wage Rate
	 	 	19.10	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Senior Electrician (Indirect labor)
	 	 	 	 	 	 	 	 
	Incumbent Rate
	 	 	20.08	 	 	 	0	 
	Starting Wage Rate
	 	 	19.10	 	 	 	0	 






 


38









 





ADDENDUM — APPENDIX “A”




(INCUMBENTS)




I. INCUMBENT (Hired Prior to May 17, 2006) Bids up



	 	 	 	 	 
	Assembler B	 	 	 	Machinist
	Incumbent Rate
	 	→	 	6 Month Progression Rate
	 
	 	→	 	9 Month Progression Rate
	 
	 	→	 	12 Month Incumbent Rate






II. INCUMBENT (Hired Prior to May 17, 2006) Bids down



	 	 	 	 	 
	Shop Coordinator	 	 	 	Assembler A
	Incumbent Rate
	 	→	 	Incumbent Rate
	 
	 	→	 	Next Increase per Contract






III. INCUMBENT (Hired Prior to May 17, 2006) Bumping up or down



	 	 	 	 	 
	All Classifications	 	 	 	All Classifications
	Incumbent Rate Old Classification
	 	→	 	Incumbent Rate New Classification
	 
	 	→	 	Next Increase per Contract






(NEW HIRES)




IV. NEW HIRE < 6 months (Hired on or after May 17, 2006) Bidding up



	 	 	 	 	 
	Assembler A	 	 	 	Machinist
	New Hire Rate
	 	→	 	New Hire Rate
	3 Month Progression Rate
	 	→	 	3 Month Progression Rate
	6 Month Progression Rate
	 	→	 	6 Month Progression Rate







Employee enters new classification wage rate in the same relative “grid” wage rate as they were
in while in their old classification. Time begins at day 1.


 


39









 





V. NEW HIRE > 6 months (Hired on or after May 17, 2006) Bidding up



	 	 	 	 	 
	Assembler A	 	 	 	Machinist
	6 Month Progression Rate
	 	→	 	6 Month Progression Rate
	9 Month Progression Rate
	 	→	 	6 Month Progression Rate
	12 Month Progression Rate
	 	→	 	6 Month Progression Rate
	 
	 	→	 	9 Month Progression Rate
	 
	 	→	 	12 Month Progression Rate







Employee enters new classification wage rate in the same relative “grid” wage rate as they were
in while in their old classification. Time begins at 1 day.



VI. NEW HIRE (Hired on or after May 17, 2006) Bidding down



	 	 	 	 	 
	Machinist	 	 	 	Assembler B
	New Hire Rate
	 	→	 	New Hire Rate
	3 Month Progression Rate
	 	→	 	3 Month Progression Rate
	6 Month Progression Rate
	 	→	 	6 Month Progression Rate
	9 Month Progression Rate
	 	→	 	9 Month Progression Rate
	12 Month Progression Rate
	 	→	 	12 Month Progression Rate







Employee enters new classification wage rate in the same relative “grid” wage rate as they were
in while in their old classification. Time begins at 1 day.



VII. NEW HIRE (Hired on or after May 17, 2006) Bumping up or down



	 	 	 	 	 
	(Down) Machinist	 	 	 	Assembler B
	New Hire Rate
	 	→	 	New Hire Rate
	3 Month Progression Rate
	 	→	 	3 Month Progression Rate
	6 Month Progression Rate
	 	→	 	6 Month Progression Rate
	9 Month Progression Rate
	 	→	 	9 Month Progression Rate
	12 Month Progression Rate
	 	→	 	12 Month Progression Rate






	 	 	 	 	 
	(Up) Assembler B	 	 	 	Machinist
	New Hire Rate
	 	→	 	New Hire Rate
	3 Month Progression Rate
	 	→	 	3 Month Progression Rate
	6 Month Progression Rate
	 	→	 	6 Month Progression Rate
	9 Month Progression Rate
	 	→	 	9 Month Progression Rate
	12 Month Progression Rate
	 	→	 	12 Month Progression Rate







Employee involuntarily bumping will retain time in grid upon moving to new classification.


 


40









 





APPENDIX “B”

RATE RETENTION GROUPS





	 	1.	 	Material Handler
	 
	 	2.	 	Assembler A, Assembler B
	 
	 	3.	 	Machinist
	 
	 	4.	 	Shop Coordinator
	 
	 	5.	 	Inspector
	 
	 	6.	 	Truck Driver
	 
	 	7.	 	Truck Driver Diesel
	 
	 	8.	 	Senior Tool & Die, Tool & Die
	 
	 	9.	 	Senior Master Mechanic, Master Mechanic
	 
	 	10.	 	Senior Electrician, Electrician





APPENDIX “C”

OVERTIME DISTRIBUTION AGREEMENT




1. Supervisors shall be responsible for the equalization of overtime and for maintaining and
the daily posting of overtime distribution records; each group showing the names of the employees
in the group and the overtime hours worked and/or declined by each employee, total overtime hours
charged, and the employee’s shift and overtime group to which assigned. Overtime hours charged but
not worked will be identified with a circle around the hours charged.



2. Overtime within each overtime group shall be maintained within the thirty straight time hour
spread, regardless of shift.



3. Only overtime that is offered to an employee on or before his shift prior to the shift on which
the overtime is to be worked will be charged to an employee who declines the offered overtime. It
is agreed that in the event an employee is scheduled to work overtime for any of the reasons
spelled out below, they shall be charged. There is no intent to allow anyone to arbitrarily
schedule an employee to work overtime just for the sake of charging them to bring their overtime in
line without working anyone. For the purpose of charging overtime, it is understood that, the
overtime period begins at the time the employee completes a normal work day (8 hours).



4. No employee shall be discriminated against or disciplined for their inability to work overtime,
except that an employee shall be required to work overtime if they have agreed to do so, or if they
have been notified to work overtime at least forty (40) hours ahead of time and have not been
excused.



5. Overtime hours worked or declined by the employee shall be charged on the basis of straight time
for each hour.



6. When an employee new to the Company has passed sixty days of their probationary period, they
shall be charged with the average overtime hours in the overtime group to which they are assigned.
The new employee will not work overtime hours prior to their 60th day unless all
employees in their overtime group are assigned to work overtime, or unless all other available
employees in their overtime group have been asked to work.


 


41









 





7. When an employee is transferred (other than temporary transfers) they shall be charged with the
average of the overtime group to which they are assigned on the first day of their transfer.



8. When an employee in an overtime group is absent for any reason, they shall be charged for the
overtime hours that they could have worked had they been available.



9. When the Company attempts, but is unable to contact any employee not on Company premises, the
employee shall not be charged with the overtime hours which the Company was attempting to offer
them.



10. The Company may schedule employees to continue work during overtime hours which they were
performing during straight-time hours even though this may create a temporary imbalance of overtime
opportunities within the limitations specified in Paragraph 2 above.



11. When an overtime group is exhausted the Company will use an employee from that same
occupational group provided there is not an experienced employee currently in the area.



12. If an overtime group is not exhausted, and an employee from another overtime group performs
overtime work in that overtime group (except as is provided in Paragraph 34, Article IV) the
Company shall reimburse the low employee in the overtime group for the actual overtime hours they
would otherwise have worked, at the appropriate overtime premium rate. It is recognized that time
to time an employee scheduled for overtime may fail to report as scheduled, and the Company may
assign an employee from another overtime group if necessary, or an employee from the proper
overtime group, whichever is practicable, without incurring any violation of these overtime
distribution provisions, until such time as with reasonable diligence a proper employee from the
proper overtime group can be assigned. For purposes of this Appendix, the availability of an
employee in an overtime group shall be considered exhausted if all hours of overtime opportunity
are offered to the employees within the overtime group in a twenty-four (24) hour period in
accordance with the provisions of Article III and Article IV of this Agreement.



13. If the Company bypasses the lowest available employee in the overtime group (and the overtime
hours of such employee are lower than the permissible spread at the time the overtime begins), the
Company shall be liable to reimburse such employee at the appropriate overtime premium rate for the
actual overtime hours they otherwise would have worked. Employees who receive reimbursement without
working shall be charged with the appropriate number of hours on the overtime list.



14. The overtime distribution total shall continue from year to year without a cutoff date being
applicable. In other words, if an employee is behind on their overtime opportunities for the
previous contract year, they shall have first opportunity for overtime hours in the succeeding
year. The overtime totals shall be carried over at the end of each contract year in the same manner
as they are carried over from month to month during the contract year.


 


42









 





15. For purposes of overtime distribution only, a vacation taken in weekly increments will be
considered to start on Friday after the completion of the employee’s shift and finishing at the
start of the employee’s shift on Monday following the week or the multiple of weeks vacation. In
the case of a day or day’s vacation immediately before a weekend, the weekend shall be considered
as part of the employee’s vacation with work commencing on their regular shift on Monday. If
the employee elects to take a day or day’s vacation starting Monday, the vacation will be
considered as having started on the previous Friday at the end of the employee’s shift. In the case
of single day’s vacation taken on Friday or Monday, an employee may at their option, if asked, work
weekend overtime.



16. In scheduling weekend overtime the following procedure shall apply:




	 	(A)	 	The supervisor involved will, in accordance with normal practice, determine how many,
and which employees are required for Friday, Saturday, and Sunday overtime.
	 
	 	 	 	Should the supervisor determine to ask an employee who would be “on vacation” (which, in
accordance with Paragraph 15 of the Overtime Distribution Agreement, begins at the end of
their shift on Friday) the employee will be charged for overtime if asked. If the
employee’s entire overtime group has been scheduled, the employee will be considered
“asked.”
	 
	 	(B)	 	The Company may, either by asking the employee as an individual or by scheduling
their entire overtime group, offer an employee overtime work on the Friday or Saturday or
Sunday which begins their vacation. No disciplinary action will be taken if the employee
refuses this overtime unless they have accepted the overtime assignment and fail to
report.





When the Company schedules or asks an entire overtime group for a week or more at a time all
employees in that overtime group will be charged for all hours scheduled or asked unless the
employee’s overtime is cancelled by a supervisor.



When an employee is on leave of absence or vacation they will be charged for overtime hours worked
if one employee above the employee on leave of absence or vacation and all the employees below are
asked to work.




	 	(C)	 	With the exception of the Friday or Saturday or Sunday which begins as employee’s
vacation, an employee on vacation will not be eligible for overtime assignments during
their vacation, but will however be charged for overtime in accordance with Paragraph 8 of
the Overtime Distribution Agreement.





17. If an employee has a physical limitation, known to the supervisor, due to a dermatitis
condition, back or weight limitation, or legal restriction, etc., so that they are precluded from
these tasks during straight time hours, they will not be permitted to work at these tasks on
overtime hours. However, they shall be charged for all overtime hours that would have been
available to them, provided that another employee actually performs the work. Such limitation shall
be noted on the overtime record.



18. The Company shall make every attempt to notify employees of overtime as soon as possible.


 


43









 





APPENDIX “D”

OVERTIME GROUPS




Group #1 — Material Handler

Group #2 — Assembler A

Group #3 — Assembler B

Group #4 — Machinist

Group #5 — Shop Coordinator

Group #6 — Inspector

Group #7 — Truck Driver

Group #8 — Truck Driver Diesel

Group #9 —  Senior Tool & Die, Tool & Die

Group #10 — Senior Master Mechanic, Master Mechanic

Group #11 — Senior Electrician, Electrician




LETTER OF UNDERSTANDING




Any overtime groups agreed to are subject to change as new cells are developed.



PRODUCTIVITY INCENTIVE




The South Beloit Productivity Incentive program will be implemented as soon as practicable
following the ratification of the collective bargaining agreement. The program will be made
retro-active to February 1, 2009. The Company and the Union committee will meet to discuss and
agree on how this program will be monitored and communicated to employees. The Union committee
will have the right to information necessary to evaluate the performance of the program. Issues
that arise on the performance of the incentive program shall be reviewed and resolved if possible
by a committee comprised of a minimum of two Company and two Union officials. Alleged breaches of
the terms of this productivity incentive program are subject to the grievance and arbitration
provisions of the CBA.


 


44









 





ENROLLMENT DATES




Group Health Insurance




The participant can re-enroll during the two (2) week open enrollment of each year. The
participants cannot make a change in plan coverage unless there is a qualifying event such as
marriage, birth, etc. Changes such as adding a dependent, dropping a dependent may be made at any
time during the year.



Option Life




Participants may enroll or increase their coverage once a year during the two (2) week open
enrollment of each year. They may stop at any time with 30 days advanced notice.



401(k)




Employees are eligible for initial enrollment after sixty (60) days of employment. Changes in the
amount of contribution, investment elections, and investment transfers can be done at any time.
Contributions may be stopped at any time. Participants may reenroll the first day of the following
month after they stop deductions.



401(k) Program

Effective July 1, 2006, Company matches 50% up to 6% (for total of 3% of eligible wages)




	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Contribution	 	 	 	 	Employer Contribution	 	 	Total	 
	1% of eligible wages	 	 	 	 	0.5% of eligible wages	 	 	1.5% of eligible wages	 
	 	2%	 	 	 
	 	 	1.0%	 	 	 	3.0%	 
	 	3%	 	 	 
	 	 	1.5%	 	 	 	4.5%	 
	 	4%	 	 	 
	 	 	2.0%	 	 	 	6.0%	 
	 	5%	 	 	 
	 	 	2.5%	 	 	 	7.5%	 
	 	6%	 	 	 
	 	 	3.0%	 	 	 	9.0%	 






APPENDIX “E” INSURANCE

SCHEDULE OF BENEFITS




	 	 	 
	For You	 	For Your Dependents
	Life insurance:

$40,000 effective 2/1/2009

	 	Life insurance:

Spouse $8,000
 Each dependent child $4,000
	 
	 	 
	Additional life and AD&D:

In $1,000 increments combined maximum
coverage $60,000 through payroll
deduction.

	 	Additional spouse and dependent life insurance:

Spouse $14,000/dependent $6,000
available through payroll
deduction.
	 
	 	 
	Sickness & Accident:

67% of base pay up to a maximum of $410
per week effective 2/1/2009.

	 	Not applicable.






Life insurance and accidental death and dismemberment insurance benefits are both occupational and
non-occupational. All other benefits are non-occupational.


 


45









 





No benefits for A.D. & D. shall be payable for any loss resulting from taking poison, asphyxiation,
or inhalation of gas, self-destruction, acts attributable to war and other causes
specified in the policy; or, when the date of accidental bodily injury is more than one hundred
twenty days from the date the loss is sustained.



Accident and sickness benefits begin on the first day of accident, first day of hospitalization or
outpatient surgery, and eighth day of sickness, and continue for a maximum of thirty-nine weeks
during any one period of disability. Worker’s Compensation to be supplemented by Accident and
Sickness Benefit including a payment at the per diem Sickness and Accident level (1/5th of the
Sickness and Accident Weekly Benefit Amount) for the Worker’s compensation waiting period (not
including the day of the accident which is covered by Paragraph 135 of the Collective Bargaining
Agreement). Such supplement for the waiting period may be by direct payment or insured with the
Sickness and Accident carrier and if the waiting period is subsequently paid by any other
insurance, by any governmental agency or from any other source, the Company shall be entitled to
reimbursement from the employee by payroll deduction, set off from future Worker’s compensation
payments from the Worker’s Compensation insurance carrier or any other reasonable method of
recoupment, other than recoup from a private policy carried by the individual employee where he or
she is paying the full premium.



The individual certificate will define a continuous disability or confinement.



“Dependents” include only, your spouse and unmarried children from the date of live birth until
nineteen years, stepchildren and legally adopted children are eligible dependents; but parents or
other relatives are not eligible for dependent coverage even though supported by you. Children
after attainment of age nineteen while incapable of self support because of a disabling sickness or
injury that commenced prior to age nineteen are covered provided such child was eligible for
coverage as a dependent prior to age nineteen. Such children must otherwise meet the definition of
dependent children, must legally reside with you, and must be principally supported by you.
Children until age twenty seven are eligible dependents if they are full-time students at an
accredited school provided they are unmarried and otherwise a dependent.



Eligibility — A regular employee actively at work will be eligible immediately. Future new
regular employees will become eligible for Medical and Dental on the first day of the month after
hire. Future new regular employees will become eligible for Short-Term Disability 60 days after
hire date.


 


46









 





INSURANCE AGREEMENT




THIS AGREEMENT is made and entered into this 1st day of February 2009 by and between WARNER
ELECTRIC, LLC or its successors or assigns (hereinafter referred to as the “Company”) and the
UNITED STEELWORKERS (hereinafter referred to as the “Union”) on behalf of itself and LOCAL UNION
NO. 3245.



Definitions




1. Wherever used herein:




	 	(a)	 	“Employee” means an individual in the bargaining unit who has completed their
first 60 days (except for health care);
	 
	 	(b)	 	“Program” means the program of insurance benefits established by this
Agreement;





Program of Insurance Benefits



2. The Program shall be applicable to Employees while this Agreement is in effect in accordance
with the provisions of this Agreement, subject to the following provisions:




	 	(a)	 	Employees not actively at work on February 1, 2009 shall not be eligible to
participate under the Program until they return to active work on or after February 1,
2009 provided, however, that any Employee who shall return to work and who shall
subsequently become eligible for benefits due to a recurrence of a disability or claim
which commenced prior to February 1, 2009, will be eligible for benefits at the
applicable rates of benefits provided for under the Program, but only for the balance
of the period for which he would have been entitled to benefits under the Prior
Program.
	 
	 	(b)	 	The amounts of life insurance after retirement provided for under the Program
shall be applicable in accordance with the Benefit Continuation Clause for Early
Retirement Window Plan.




 


47









 










3. Medical Plan — Effective February 1, 2009, a comprehensive Preferred Provider Organization (PPO)
medical, offering both in and out of network benefits, will become effective for all employees.
Basic features of the plan are as follows:



ALTRA BASIC PLAN

SCHEDULE OF BENEFITS




	 	 	 	 	 
	Benefit	 	In-Network	 	Out-of-Network
	Annual Deductible

	 	$500/$1,000
	 	$1,000/$3,000
	Coinsurance

	 	80%/20%
	 	60%/40%
	Out of Pocket Maximum

	 	$2,000/$4,000
	 	$4,000/$8,000
	Lifetime Maximum

	 	Unlimited
	 	Unlimited
	Office Visit Copayments
	 	 	 	 
	Primary Care Physician

	 	$15 per visit
	 	N/A
	Specialist

	 	$30 per visit
	 	N/A
	Inpatient Hospital
Services
	 	 	 	 
	Inpatient Care

	 	20% after deductible
	 	40% after deductible
	Surgery & Anesthesia

	 	20% after deductible
	 	40% after deductible
	Physicians Services

	 	20% after deductible
	 	40% after deductible
	X-ray & Lab Services

	 	20% after deductible
	 	40% after deductible
	Outpatient Services
	 	 	 	 
	Outpatient Surgery

	 	20% after deductible
	 	40% after deductible
	Maternity Services
	 	 	 	 
	Hospital Services

	 	20% after deductible
	 	40% after deductible
	Prenatal-Postpartum

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	Mental Health/Substance
Abuse
	 	 	 	 
	Inpatient

	 	20% after deductible 

As many days as medically
necessary.
	 	40% after deductible
	Outpatient

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	Emergency Room

	 	$250 Copay

*(waived if admitted)
	 	40% after deductible
	Medical Services
	 	 	 	 
	Office Visits

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	Gynecological Visits

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	Specialist Visit

	 	$30 Copay
	 	40% after deductible
	Well Child (Immunizations)

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	Annual Physical

	 	Office Visit Copay $15 or $30
	 	40% after deductible
	X-ray & Lab

	 	20% after deductible
	 	40% after deductible
	Allergy Tests & Treatment

	 	Office Visit Copay $15 or $30
	 	40% after deductible






 


48









 





	 	 	 	 	 
	Benefit	 	In-Network	 	Out-of-Network
	Prescription Drug
	 	 	 	 
	Generic (Mandatory)

	 	$10 Copay	 	 
	Brand

	 	$25 Copay	 	 
	Non-Formulary

	 	$40 Copay	 	 
	Mail Order (Mandatory
for maintenance
medications)

	 	90-day supply, $20, $50, $80	 	 
	90 Day Retail

	 	Not Available	 	 
	Vision Care
	 	 	 	 
	Eye Exam	 	$60 — allowance per plan year, in or out of network
	Eyewear	 	$100 allowance per plan year
	Other Services
	 	 	 	 
	Skilled Nursing Facility

	 	20% after deductible
	 	40% after deductible
	Home Health Care

	 	20% after deductible
	 	40% after deductible
	Durable Medical Equipment

	 	No Copay, no deductible
	 	40% after deductible
	Chiropractic Services,
$500 Maximum

	 	$30 Copay
	 	40% after deductible






This is a summary of some of the basic features of your health care plan. For a complete listing
of benefits, exclusions and limitations please refer to your plan booklet.





	 	 	 	 	 
	Weekly Medical Plan Contribution	 
	 	 	2/1/2009	 
	Single
	 	$	40.12	 
	Employee & Spouse
	 	$	75.04	 
	Employee & Child(ren)
	 	$	71.76	 
	Family
	 	$	104.63	 






On an annual basis, if an additional plan is made available to non-bargaining unit employees, this
plan will be made available to bargaining unit employees subject to bargaining with the union.



Contributions will be set at the lesser of 30% of the actual premium or a guaranteed maximum as
stated in the medical and dental charts.



The Company and Union, by mutual agreement, may change health benefit plans to an equivalent
coverage lower cost plan. Employee contributions will be 25% of the premium.


 


49









 





4. Dental Plan




Dental benefits are provided based on the schedule below:



	 	 	 	 	 
	Annual Deductible:
	 	 	$25/$75	 
	Benefit Type:
	 	 	 	 
	Preventive ($0 Ded.)
	 	 	100%	 
	Basic
	 	 	80%*	 
	Major
	 	 	50%*	 
	Orthodontic Benefit ($0 Ded.)
	 	 	50%*	 
	Maximum Annual Benefit
	 	 	$1,000 per person
	Orthodontic Lifetime 
	 	 	 
	Maximum
	 	 	$1,500 per person








	 	 	 
	*	 	DeltaPreferred and DeltaPremier dentists will accept Delta Dental’s payment, plus any required
employee coinsurance and any applicable deductible as payment in full. These dentists will file
your claims for you. If you go to a non-network dentist, payment will be made directly to you
unless you assign benefits to the dentist. Delta Dental will pay the lower of usual, reasonable,
and customary as determined by the Plan of the state in which services are rendered or the fee the
dentist bills for covered services. You will be responsible for paying the difference between the
non-participating dentist’s charge and Delta Dental’s payment.






	 	 	 	 	 
	Weekly Dental Plan Contribution	 
	 	 	2/1/2009	 
	Single
	 	$	2.05	 
	Couple
	 	$	3.47	 
	Family
	 	$	5.93	 






The dental program shall not be subject to the insurance continuation provisions of Paragraph 14 of
this Agreement, nor shall this program be provided for future retirees.



5. Hearing aids and the associated examination will be self-funded at 50/50 to a maximum Company
payment of $2,500 every three (3) years. Eligible dependents are covered.



6. Life Insurance and AD & D




(a) Employees with life insurance and AD & D coverage shall have the right, at their
option, to increase both coverages equally through payroll deduction, at their own expense, in
$1,000 increments, at $.44/month per $1000, up to a maximum of $60,000 life insurance coverage and
$60,000 AD & D coverage. Coverage shall be on a monthly basis. Employees may initiate, increase, or
decrease such additional coverages during the two (2) week open enrollment of each year and may
terminate at any time upon thirty (30) days written notice.



(b) Employees with dependent life insurance coverage shall have the right, at their
option, to increase the coverage through payroll deduction, at their own expense at the rates
listed below. The additional $14,000 spouse/$6,000 dependent insurance coverage shall be paid on a
monthly basis through payroll deduction. Employees may initiate, increase, or decrease such
additional coverages during the two (2) week open enrollment of each year and may terminate at any
time upon thirty (30) days written notice.


 


50









 





	 	 	 	 	 
	 	 	Cost	 
	 	 	Per Family	 
	Age of Employee	 	Per Month	 
	Less than 30
	 	$	1.50	 
	Age 30-34
	 	$	1.60	 
	Age 35-39
	 	$	1.90	 
	Age 40-44
	 	$	2.60	 
	Age 45-49
	 	$	3.80	 
	Age 50-54
	 	$	5.60	 
	Age 55-59
	 	$	8.40	 
	Age 60-64
	 	$	12.20	 
	Age 65-69
	 	$	18.70	 






Cost of Benefits




7. The cost of the benefits under the Program shall be paid by the Company, except as provided
below in this Paragraph 7 and 10 hereof:



(a) Any employee on layoff who elects to continue basic life insurance after the last
month of layoff for which such life insurance is continued without contribution by him will be
required to pay $.44 per month (or the applicable group premium rate at the time of the layoff) per
$1,000 of basic life insurance for each month as to which he is eligible in order to continue such
insurance.



(b) The amounts required to be paid for benefits provided under law in excess of basic Program
benefits shall be paid entirely by the Employees.



Participation by Employees




8. Each employee shall be a participant in the Program and the amount, if any, which he shall be
required to contribute to the cost thereof, shall be deducted by the Company from his pay. Each
Employee shall furnish to the Company any such written authorization or assignment (in a form
agreed to by the Company and the Union) as shall be necessary to authorize the deduction from his
pay of the amount of any contributions.



Changing selection during plan year is possible only if you have a change in your family
situation. This would include:




	 	•	 	The birth or adoption of a child.
	 
	 	•	 	Marriage or divorce.
	 
	 	•	 	Death of your spouse or other dependent.
	 
	 	•	 	Significant change in employee or spousal health coverage attributable to the
spouse’s employment.
	 
	 	•	 	Employee or spousal employment status change.





Other major changes may be considered, depending on the circumstances.


 


51









 





Requirements of Law




9. It is intended that the provisions for the insurance benefits which shall be included in the
Program shall comply with and be in substitution for the provisions for similar benefits which are
or shall be made by any applicable law or laws. Where, by agreement, certain basic benefits under
the Program are provided under law rather than under the Program, the Company will pay the amount
required to be paid therefore, including any employee contribution required by law on account of
such benefits. The Company shall, after consultation with the Union, reduce the benefits of the
Program to the extent that benefits provided under any law would otherwise duplicate any of the
Program benefits.



Effective January 30, 2005, active and retired employees and their dependents, who are 65
years or older and who are entitled to Medicare, will not be reimbursed for the Part B monthly
premium, if they are paying such premium under the Medicare Program. In addition, the Company will
not reimburse the monthly Part B premium for disability retirees retiring on or after January 30,
2005 if they are paying such premium under the Medicare program.



Additional and Alternate Benefits




10. The Program shall be in substitution for any and all insurance benefits or payments to or on
behalf of Employees for death, sickness or accident, hospitalization, medical or surgical service
provided by the Company in whole, or in part, except as the Company and the Union have agreed or
may agree in writing.



Administration of the Program




11. The Program shall be administered by the Company or through arrangements provided by it. Except
as may otherwise be provided in this Agreement, the Company will arrange to have the
hospitalization and physicians’ services benefits under the Program provided through contracts with
carriers selected by the Company, which contracts, respectively, shall be consistent with this
Agreement and shall provide benefits in the amounts listed in Appendix E. Sickness and accident
benefits and life insurance shall be provided by such method and through such carriers, if any, as
the Company in its sole discretion shall determine.



All benefits except life insurance, accidental death and dismemberment and weekly income
benefits shall be paid directly to the provider of the service for which benefits are payable.



Administration of Sickness and Accident Benefits




12. The payment of sickness and accident benefits is an obligation of the Company, but the
Agreement with the Union permits the Company to provide the payment through a policy with an
insurance company. The Company performs important administrative functions in connection with the
handling of claims, including the issuance of benefit checks. In the typical case, such handling
is routine and a claim is paid within two weeks after it is received by the Company. The Company
is authorized to make benefit payments on claims without prior approval of the insurance company
when Company personnel engaged in claims work determine the claim meets the standards established
by the insurance company for Company approval. If you have a claim which does not meet these
standards it is referred to the insurance company for decision and you are notified of such action
within two weeks after the claim is received by the Company. In reaching its decision, the
insurance company may take reasonable steps to investigate the medical and other factual aspects
of the claim.


 


52









 





Life Insurance for Disability Retirees




13. An employee who shall retire on or after January 30, 2005 under the disability provisions of
the Company Pension Plan at or after age 57 and prior to age 62 will have his life insurance (in
the full amount set forth in Appendix E) continued until age 62 at which time it will be reduced to
$5,000.00.



An employee who shall retire under the disability provisions of the Company Pension Plan prior
to age 57 will receive in equal monthly installments over a five year period the full face value of
his life insurance benefit then in effect. If death occurs before the full face value has been
paid, his beneficiary will be paid the difference between said full face value and the amount
already paid.



At the time an employee in any of the above categories leaves the employment of the Company,
Accidental Death & Dismemberment coverage will cease.



BENEFIT CONTINUATION CLAUSE FOR EARLY RETIREMENT WINDOW PLAN




The Company and the Union have agreed to an early retirement window plan which shall be
available to designated employees who notify the Company of their election to retire by August 1,
2006 and retire before December 31, 2006.



Employees who retire in accordance with the above-described early retirement window plan
(“early retirees”), and employees who have retired between December 1, 2004 and May 5, 2006, shall
be eligible for continued coverage under the Company’s medical and retiree life insurance plans
until they reach age 65.



Early retirees who elect continued coverage shall make the same contributions and receive the
same medical benefits as active employees. Early retirees shall be eligible for single, couple or
family coverage, subject to the applicable contribution. Contributions to the cost of insurance
shall be made by the retiree by sending in a monthly check to the Company by the 1st of
each month.



Early retirees between the ages of 57 and 65, who elect single, couple or family coverage
under the medical plan, shall have their medical coverage continued until such a time they are
qualified for Medicare or Medicaid or in the case of children until they no longer qualify because
of age, disability, marriage, etc.



Early retirees shall be subject to the same plan terms and rules as active employees,
including but not limited to dates for changing coverage, contributions, exclusions, co-pays,
deductibles, benefits, limits on benefits, etc. Such terms and rules may be amended, subject only
to the Company’s duty to negotiate with the Union over changes in benefits affecting active
employees. If any amendments are made to the terms affecting active employees, early retirees will
be subject to the same amendments as active employees. In the event coverage for active employees
is terminated, coverage for early retirees shall also be terminated.


 


53









 





For purposes of COBRA coverage, retirement shall be treated as a qualifying event and the
maximum period for COBRA coverage shall be measured from the date of retirement.



This clause shall survive expiration of the collective bargaining agreement. This clause
shall be binding on the Company and its successors.



RETIREMENT OPTION 1.

SPECIAL RETIREMENT PROGRAM





	 	•	 	Employees age 57+ with 30 years of service as of December 31, 2006






	 	•	 	Must elect to retire by August 1, 2006
	 
	 	•	 	Still eligible for $2,000 ratification payment
	 
	 	•	 	Retiree healthcare benefits remain intact.
Retiree healthcare available at applicable (currently 25%, 30%
effective 1/1/2007) active employee contribution rate, OR a one-time
$13,000 cash payment in lieu of healthcare benefits.
	 
	 	•	 	Lump sum pension payment option is available.






	 	•	 	Retiree healthcare assurance letter provided.
	 
	 	•	 	Warner Electric management will determine last day worked, which will be prior to
12/31/2006 or a later date by mutual agreement.





RETIREMENT OPTION 2.

EARLY RETIREMENT PROGRAM





	 	•	 	Employees age 57+ with 5 years of service as of December 31, 2006






	 	•	 	Must elect to retire by August 1, 2006
	 
	 	•	 	Still eligible for $2,000 ratification payment
	 
	 	•	 	$13,000 cash payment
	 
	 	•	 	Retiree healthcare and retiree life insurance is no longer available.
	 
	 	•	 	Plan does not allow a lump sum pension
payment for employees with less than 30 years of service.






	 	•	 	Warner Electric management will determine last day worked, which will be prior to
12/31/2006 or a later date by mutual agreement.





Extension of Benefits




14. If an employee shall be absent from the service of the Company for a period not to exceed
thirty (30) months, due to non-occupational disability (validated by doctor’s certificate) the
insurance program shall be kept in effect for such employees during such thirty (30) month’s period
only. In cases of absence due to occupational disability, the insurance program shall be kept in
effect for up to five (5) years.


 


54









 





In cases of layoff of employees with less than two (2) years of seniority, the group insurance
program shall cease on the last day worked except that such employee shall have the conversion
privileges provided for in the master insurance policy. In cases of layoff of employees with two
(2) or more years of seniority, sickness and accident benefit coverage will cease on the last day
worked; life insurance, hospitalization benefits, and surgical benefits shall be kept in effect for
two (2) months after the end of the month in which the employee last worked; life
insurance may be continued thereafter for a period of an additional twelve (12) months by paying
the required premiums in advance to the Company in the amount specified in Paragraph 4 (a) above.



In cases where an active employee dies with five (5) but less than ten (10) years of seniority
with dependent coverage in effect at the time of death, the dependent coverage (hospital, surgical,
medical, dental and drug only) will be continued for the dependents during the month of death and
the following six months assuming continued payment of the monthly premium contribution provided
for in the group insurance program. This extension shall be the month of death and the twelve
following months in the case of an active employee who dies with ten (10) or more years of
seniority and with dependent coverage in effect at the time of death.



Extent of Company Obligation




15. The failure of any carrier to provide for benefits under the Program shall not result in any
liability to the Company, nor shall such failure be considered a breach by the Company of any of
the obligations which it has undertaken by this or any other agreement with the Union. In the event
of any such failure, the Company and the Union shall immediately take action to provide substitute
coverage in accordance with the provisions of this Agreement. Differences between claimants and the
insurance carrier or their agents shall not be subject to the grievance procedure provided in the
Basic Agreement. In the event of a disputed claim the Company will assist in communicating with the
insurance carrier to assure compliance with the Master Insurance Contract.



Insurance Reports




16. The Union shall be furnished, upon request, an annual report regarding the Program. From time
to time during the term of this Agreement, the Union shall be furnished such additional information
as shall be reasonably required for the purpose of enabling it to be properly informed concerning
the operation of the Program. Any accounting under the Program shall make no distinction between
the experience with respect to Employees and other employees who may be covered, except that
experience of employees who participate in the Program on a different basis or are entitled to
different benefits from those provided for employees represented by the Union shall be included in
such accounting only to the extent that the Company and the Union agree to such inclusion. The
Company will continue the present arrangements under which it undertakes the keeping of insurance
records of individual employees, the completion of individual employees’ certificates, the
recording of changes in insurance classifications and a major portion of the investigation and
payment of claim. The cost to the Company of performing such work will not, for any accounting
under the Program, be deemed to be a cost of the Program.


 


55









 





Term of Agreement




The Insurance Agreement dated February 1, 2009 shall remain in effect through March 28, 2010. This
Agreement shall become effective as of February 1, 2009 and shall remain in effect until March 28,
2010 in accordance with the Basic Agreement.




 


56