**Exhibit10.11(a)**

 

**ARTICLEI**

 

**Agreement**

 

**Section1. **This Agreementdated the **thirtieth**day of March, **2002** is entered into between Tyson Bearing Company, Inc.,Glasgow, KY (hereinafter referred to as the “Company”), and the UnitedSteelworkers of America, AFL-CIO (hereinafter referred to as the “Union”) onbehalf of itself and the members of Local Union No. 7461-**01**.

 

a.                                       Inthe event all or substantially all of the assets of **Tyson Bearing Company, Inc.**are sold, the purchaser thereof shall be deemed to be a successor employerbound to all the terms and conditions of the Collective Bargaining Agreement,dated this thirtieth day of March, **2002**. **TysonBearing shall assure the purchaser accepts above before the sale takes place**.

 

**Section2.**  In considerationof this Agreement, the parties agree that it is the intent and purpose of theparties hereto that this Agreement is the complete Agreement covering rates ofpay, hours of work and working conditions to be observed between the parties,and to provide orderly relationships between the Company and the Union, and tosecure prompt disposition of differences between the parties pertaining to thecompliance with or application of this Agreement.

 

**Section3.**  In recognition ofits responsibility as the exclusive agent of the employees, the Union agreesthat it will cooperate in discouraging absenteeism and tardiness, and that itwill support proper Company efforts to eliminate waste, improve quality,prevent accidents, and strengthen good will between the Company and theUnion.  The Union also confirms that itsubscribes to the concept of a fair day’s work for a fair day’s pay.

 

**Section4.**  Employees areobligated to keep the Company informed regarding their correct address andtelephone number.  Employees must alsokeep the Company informed regarding their marital status and dependents to beeligible for benefits.  Agreement asdefined in Section 1. above, shall, as a condition of continued employment, bemembers of the Union in good standing. All new employees shall become members of the Union on the 60th dayfollowing the beginning of their employment.

 

**Section5.**  It is the policyof the Company not to discriminate against any employee or applicant foremployment because of race, creed, color, national origin, age, sex, religion,disabled veterans and handicapped status, or union affiliation.

 

**Section6.**  Any reference madeto he should read he/she. Any reference made to his should read his/her. Anyreference made to himself should read himself/herself.

 

**ARTICLE II**

 

**Rights andFunctions of Management**

 

**Section1. **The Unionrecognizes that the control of all matters relative to the management andoperation of the Plant and the operation of the Company’s business shall be

 

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vested exclusively in the Company, except as these matters may beexpressly limited by the terms of the Agreement.

 

**ARTICLE III**

 

**Union Recognition**

 

**Section1. **The Companyrecognizes the Union as the sole collective bargaining agency with respect torates of pay, hours of work and conditions of employment for all production andmaintenance employees employed by the Company at its Glasgow, Kentucky plant,but excluding all office clerical employees, professional and technicalemployees, guards and supervisors as defined in the acts.

 

**Section2. **The provisions ofthis Agreement constitute the sole procedure for the processing and settlementof any claim by an employee or the Union of a violation by the Company of thisAgreement.  As the representative of theemployees, the Union may process grievances through the grievance procedure,including arbitration, in accordance with the Agreement or adjust or settle thesame.

 

**Section3. **All employees,except those excluded from this Agreement as defined in Section 1. above,shall, as a condition of continued employment, be members of the Union in goodstanding.  All new employees shall become members of the Union on the 60th day of following the beginningof their employment.

 

**Section4.**  **Inter-PlantTransfer.**  In the event thatthe Company finds it necessary to transfer equipment to any other Companyproduction facility, either presently existing or which may come into existencein the future, and such transfer of equipment results in a layoff of employeeshaving two or more years of service in our Bargaining Unit, and also generatesa job vacancy in the other plant, employees laid off from our Bargaining Unitshall have the right to apply for and be transferred to such plant.

 

However, if the plant to which the equipment was transferred is coveredby a collective bargaining agreement and/or a bidding procedure, the eligibleapplicant’s rights shall be subject to the provisions of the collectivebargaining agreement and/or the bidding procedure in existence at the otherplant.  Any employee who transfers to ajob in another plant under the terms of the agreement shall retain his previousCompany service for computing vacation and pension benefits, but he/she shallbe subject to the wages, hours, benefits, and working conditions in existencein the other plant. Any employee who transfers voluntarily under the contractwill have recall rights for two years.

 

**Section5.**  The HumanResources Department will give each new employee when hired a copy of the LaborAgreement.

 

**Section6.**  With appropriatenotice, the Company will permit plant visitation rights to the DistrictDirector and the International Representative of U.S.W. District 8.

 

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**ARTICLE IV**

 

**Strikes andLockouts**

 

**Section1.**  The Union agreesthat there shall be no strikes, work stoppages, interruption or impeding ofwork. No officer or representative of the Union shall authorize, instigate, aidor condone any such activities. No employee shall participate in any suchactivities.  Any violation of this sectionby any employee shall be cause for dismissal or suspension.

 

**Section2.**  The Company agreesthat there shall be no lockouts from the Company’s Plant.

 

**ARTICLE V**

 

**Holidays**

 

**Section1.**  During the workyear, there are fourteen (14) full holidays which are observed in ourplant.  These are:

 

New Year’s Day

Good Friday

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Day after Thanksgiving

Day before Christmas

Christmas Day

Day before New Year’s Day

Three (3) FloatingHolidays at Year’s end

 

Floating Holiday (any Monday or Friday during thecalendar year which is celebrated as or tied in with a nationally observedholiday.  The Union will notify theCompany by January 15 of the effective date).

 

**Section2.**  Holidays generallystart with the third shift at 11:00 P.M. on the day before the holiday or theday before the holiday is observed. Holidays which fall on Sunday shall be celebrated on Monday. Holidayswhich fall on Saturday shall be observed on Friday.  Employees will be paid for these days as any other holiday.

 

**Section3.**  **HolidayEligibility.**  To be eligibleto receive pay for any of these holidays, you must:

 

a.                             Completesixty (60) calendar days of service prior to the holiday.

 

b.                            Workall the scheduled straight-time hours on the last scheduled work day before theholiday and on the next regular work day following the holiday or

 

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have an excusedabsence.  **Excused absence shall mean absencepreviously approved by the Company, or sickness supported by a doctor’sstatement.**

 

**Section4.**  **Holiday Pay.**

 

a.                             Eligibleemployees not working on an observed holiday will receive eight hours pay attheir straight time rate.

 

b.                            Eligibleemployees required to work on one of the above holidays will receive doubletime for all hours worked in addition to the holiday pay.

 

**Section5.**  When a paidholiday falls within an employee’s scheduled vacation, he/she shall receive anextra day off at his/ her discretion with one week’s notice or receive eight(8) hours additional pay for the holiday. If the holiday falls during a plant vacation shutdown, that holiday willbe scheduled by the Company.  TheCompany will notify the Union by May 31 of each contract year whether or notthe holiday during the plant shutdown will be scheduled immediately prior to orafter the shutdown, or whether the holiday may be used at the employee’sdiscretion with five (5) day’s notice.

 

**Section6.**  If an employee isabsent on the day before or the day after a scheduled holiday and is not paidfor that holiday per terms in Article V, Section 3.b., his/her absence will notbe recorded for disciplinary purposes.

 

**Section7.**  It is agreed thatemployees on a four-shift operation will celebrate all regularly scheduledholidays. Actual time off will be determined by the Company and the Union priorto the holiday, taking into consideration a canvass of employees on the shifttwo weeks prior to the holiday.

 

**Section8.**  Work schedules forweeks wherein paid holidays occur, may be changed by mutual agreement betweenthe Company and the Union.  Thisinvolves the right to waive other provisions of this Agreement in order toaccomplish such changes.

 

**ARTICLE VI**

 

**Job EvaluationPlan**

 

**Section1.**  Jobs have beenclassified in their work grades by the Company, using the National Metal TradesAssociation’s Job Evaluation Plan.  Jobdescriptions, labor grades, and rates of pay have been prepared and are ineffect for all present jobs.  Whenconditions warrant such action, the Company will establish new job classifications,change, or add to and remove jobs or job descriptions.  When new jobs are established, or changes oradditions made to existing jobs, new job descriptions will be drawn andevaluated by the Company in accordance with the NMTA Job Evaluation Plan.

 

**Section2.**  All job rates ofpay in effect at the time this Agreement is effective shall not be subject toprocess under the grievance procedure section of this contract.  Any new or

 

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changed job or job rate may be subject to processing under Article XX,Settlement of Differences.  Suchprocessing shall be confined to the result of the application of the NMTA JobEvaluation Plan.  The plan itself shallnot be subject to processing under Article XX, Settlement of Differences, norshall it be, in any manner or detail, subject to arbitration under thisAgreement.

 

**Section3.**  Rates of pay andthe effective dates thereof are listed for each of the labor grades outlined inthis agreement.

 

**Section4.**  The followingmethod will be used in determining the work grade to be assigned to a job:

 

The job will be analyzedand reviewed by the Company’s Job Analyst who will write up a description ofthe general details considered necessary to describe the principal functions ofthe job identified, which description shall not be construed as a detaileddescription of all of the work requirements that may be inherent in any givenjob.  A copy of all job descriptionsshall be made available to the Union’s Job Evaluation Representatives for theirinspection and review.  The Companyshall pay the Union Representatives at their labor grade for all hours spent injoint evaluation with the Company Job Evaluation Representatives.

 

**Section5.**  If the Union feelsthat the complement of machines to which an employee is assigned is notreflected adequately in his labor grade, the Union may submit this case to ajob evaluation committee composed of Union and Company representatives.

 

**Section6.**  The Company maycombine jobs within a group.  If jobsare to be combined across groups, the Union must agree before such acombination may occur.  If there isagreement on combining jobs across groups, employees having bidding and recallrights to the jobs which are combined will continue to have such rights on thenew job no matter in which group it is placed.

 

**ARTICLE VII**

 

**ProductionStandards and Incentive Pay**

 

**Section1.**  It is understoodthat the Company will make, at any time, motion time or methods studiesrequired for the efficient operation of its business, and may establishstandards and levels of performance, and may audit its standards when it deemsthis to be necessary in the interest of business.  The right of the Company shall be unrestricted as to whether ornot it desires to utilize an individual or group incentive payment basis.

 

**Effective06/01/02, gain-sharing will be based on total plant earned hours for deliveriesto finished stock compared to actual clocked hours on a four-week movingaverage, using the first three (3) months of 2002 as the base period forcalculating the base productivity factor (BPF), with the intent that the baseswill be fixed so that the payout to all employees during this three-monthperiod under the current program shall be the same as the total amount paid outto all employees under the new program (as attached).  The**

 

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**Union shall be provided all dataneeded to determine the payout under the program and time for the Union’srepresentative to review such data on a monthly basis.  Any challenge by the Union as to the correctpayout shall be subject to the grievance and arbitration procedure.**

 

a.                                       TheCompany will provide training so that the Union will have two qualified TimeStudy Representatives available. However, in no case will more than one Union Time Study Representativebe recognized by the Company for purposes of Union-Company business.  The Company shall provide a yearly refreshercourse in the Company’s method of time study.

 

b.                                      Laborreporting by employees will not be changed arbitrarily by foremen.  If any changes are made, the employee willreceive a copy of the changes on the next week day after the change.

 

**Section2.**  Once a productionstandard has been established, the equity of such a standard may be challengedunder the procedure set forth in Article XX, Settlement of Differences.  Should the Union dispute the equity orfairness of a production standard, the Company will review with a proper unionsteward, upon his/her request, the data relating to the production standard.

 

**Section3.**  A productionstandard may be changed whenever a substantial and continuing change inmaterial method, specifications, or equipment, or an accumulation of suchchanges, or an obvious clerical error or mechanical error has occurred, thathas a substantial effect on the productivity of the job.

 

**Section4.**  It is recognizedthat the Company has the right to institute incentive standards, with theunderstanding that such incentive standards shall be set in such a manner sothat qualified operators working at a normal pace can produce quality work 100%of standard.

 

The equity of any standard shall be subject to thegrievance procedure and the data shall be made available for review by adesignated local Union official or any International Time Study Representative.

 

**Section5.**  A productionstandard, after an appropriate trial period, may be subject to a checkstudy.  During the check study, eitherthe proper steward or the Union Time Study Representative shall be present toobserve the check study.  When theCompany representative and the steward agree that normal performance is beinggiven and the check study proves less than 100% of the unit time allowed, thatunit time allowed will be removed immediately. In the event of such action, employees involved will be paid theirapplicable job rate.  This payment willbe effective from the time the employee or employees started the particular loton which the check study was completed. This check study will be made within 45days after the rate is set.

 

**Section6.**  Employees workingon jobs designated as incentive jobs will be paid as follows:

 

a.                                       Timeused on rated work will be credited in accordance with the U.T.A.

 

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b.                                      Itis understood that since employees are guaranteed their job rate on a weeklybasis, they will be expected to maintain an efficiency of at least 100%.

 

c.                                       Abusesof the use of downtime such as prolonging it or creating it will not betolerated.

 

d.                                      Forthe special conditions listed below, the employee will be credited asspecified:

 

1.                                       **Instruction:**

When an employee at the direction of a foremaninstructs one or more employees, he/she (the instructor) shall receive twolabor grades higher than his/her own labor grade.

 

Unit times allowed are not applicable when this methodof pay is used.

 

2.                                       **ExperimentalWork:**

When an employee is assigned to perform experimentalwork as designed by his/her supervisor, he/she shall receive two labor gradeshigher than his/ her own labor grade.

 

3.                                       Incentiveworkers in labor grades 11 and 12 will receive two labor grades higher forinstruction and experimental work.

 

(Pay will be based on two (2) times the labor gradedifferential between labor grades 11 and 12.)

 

**Section7.**  Whenever rates areinitially established in any department or area, the employees involved will beguaranteed no less than 100% for any day in which they encounter rate problemsbeyond their control.  Such guaranteewill be effective for a period of four weeks from origin of installation.

 

**Section8.**  It is agreed thatincentive earnings as a portion of gross income will be designated in theemployees’ weekly pay statement.

 

**ARTICLE VIII**

 

**SAFETY AND HEALTH**

 

**Section1.**  Adequate heating,lighting, toilet, locker and sanitary facilities and all protective devicesnecessary to protect the health of employees shall be provided by theCompany.  The Union will at all timescooperate with and assist the Company in maintaining and improving safety andhealth conditions in the Plant.

 

**Section2.**  A joint SafetyCommittee consisting of two Company members and four employees designated bythe Union shall be established.  TheCompany shall pay for such time

 

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spent by the Union members of the Committee up to a maximum of onehour, per man, per month. The Committee will meet once each month at aregularly scheduled meeting.

 

**Section3.**

 

a.                                       Itshall be the function of the Joint Safety Committee to recommend improvementsin safety, sanitation and health conditions affecting the employees.

 

b.                                      Grievanceswhich arise under Section 1. of this Article, and which are not settled in theJoint Safety Committee, may be filed in Step No. III of the GrievanceProcedure.

 

c.                                       Ifan employee incurs an injury on the job, he/she must report it to his/herforeman.  All records of injuries whichoccur on the job will be available for examination by the Safety Committee.  An employee must report any injury sustainedin the Plant within twenty-four (24) hours.

 

**Section4.**  The parties agreeto abide by all Federal Legislation pertaining to Health and Safety and CivilRights.

 

**Section5.**  The Chairman ofthe Union’s Safety Committee will be informed of any accident occurring withinthe Plant involving a bargaining unit employee.  He/she will be permitted to investigate such accidents if he/shedeems it advisable.

 

**Section6.**  The Company willhave a qualified first aid practitioner on each shift.

 

**Section7.**  The Company willsend the Chairman of the Safety and Health Committee to the Annual KentuckySafety and Health Conference.  TheCompany will reimburse the chairman for reasonable expenses and three days’pay.

 

**ARTICLE IX**

 

**PLANT RULES**

 

**Section1.**  The Unionrecognizes that it is necessary for the Company to issue rules from time totime governing the conduct of employees and that it is the duty of eachemployee to familiarize himself/herself with such rules and regulations.  This does not constitute acceptance by theUnion of any specific rules not in compliance with the provisions of thisAgreement.

 

**Section2.**  A record of six(6) months without warnings will serve to clear an employee’s record of aprevious warning.

 

A record of twelve (12) months without furtherdisciplinary actions will serve to clear an employee’s record of a priorsuspension and all disciplinary action for attendance.

 

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**ARTICLE X**

 

**Jury Duty Pay**

 

**Section1.  Jury Duty Pay.**  Any employee who is called for Jury Dutyservice or is subpoenaed as a witness shall be excused from work for the dayson which he/she serves, and he/she shall receive for each such day of Jury Dutyservice or as a witness on which he/she otherwise would have worked, thedifference between eight (8) times his/her assigned personal rate and thepayment he/she receives for Jury service (excluding travel and mealallowance).  The employee will presentproof of service and the amount of pay received therefor.

 

**Section2.  Funeral Leave.**  Employees will be paid by the Company fortime lost due to death in the immediate family. Such pay to be no more thantheir assigned rate for a period not in excess of three (3) work days.  Immediate family includes mother, father ofemployee, husband or wife, children, step-children, brother or sister,mother-in-law, father-in-law, employee’s grand-children and grandparents.  For time lost due to death of thegrandparents of an employee’s spouse and sons-in-law and daughters-in-law, theemployee will be paid his/her assigned rate for one (1) work day to attend thefuneral.

 

Employees will be allowed three work days off to makearrangements and attend funeral. Except, if a holiday should fall during the three-day period, holidaywill count as a day off, or if funeral occurs during vacation period, excludingplant shutdown, funeral leave pay will be paid instead of vacation pay.  Vacation days may be taken at a later date.

 

**Section3.**  **MilitaryReserve Pay.**  Militaryreservists required to take up to two (2) weeks, per year, military trainingleaves will be paid the difference between their military training pay andtheir RBC base rate earnings. They should request a statement of pay from theirpaymaster while in training and submit this voucher to their supervisor upontheir return to work. If the two weeks military training should fall during thetime of the plant shutdown, the employee may take his/her vacation at anothertime.

 

**ARTICLE XI**

 

**Foreman’s Work**

 

**Section1.**  No individualexcluded from the definition of employee in Article III of this Agreement shallperform work of the type customarily performed by employees within theBargaining Unit, except for the purposes of training or instructing employeesor other occasional or hazardous work which requires the knowledge and skill ofsuch excluded employee or in case of emergencies or production difficultieswhere a regular qualified employee is not immediately available provided he/sheshall not by so doing replace any Bargaining Unit employee.

 

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**ARTICLE XII**

 

**Union BulletinBoard**

 

**Section1.**  The Union shallhave the right to have posted on a Union Bulletin Board notices of Unionmeetings, Union elections, names of Union officials and representatives, andUnion social and educational gatherings **and political issues**.  Union notices shall contain nothingcontroversial or adversely reflecting upon the Company.  A copy of each notice will be submitted tothe Human Resources Manager or his designated representatives before posting if**practical**.

 

**ARTICLE XIII**

 

**Leaves of Absence**

 

Section 1.

 

a.                                       **Medical:**  Any employee who is to be absent for morethan one (1) week because of personal illness or physical disability, and whohas acquired seniority of ninety (90) days or more with the Company shall, uponwritten request to the Company, be granted a leave of absence not to exceed one(1) year.  All such written requestsmust be accompanied by a physician’s certificate.

 

Sick leaves shall be granted without pay or otherbenefits, except as provided in this Agreement. Seniority shall accumulate upto one (1) year.

 

a.-1.                          Arequest for an extended leave of absence beyond the one-year limitation will begranted upon medical justification for such leave.  If the extended leave is granted under this section, seniorityfor the affected employee will continue to accumulate for a period of no morethan two (2) years.

 

b.                                      **Personal:**  A leave of absence for personal reasons maybe granted not to exceed six (6) months and seniority shall accumulate, butsuch leave is granted without pay or other benefits.  An employee who requires personal time off in excess of five (5)days must obtain a leave of absence prior to the actual absence where possible.

 

On personal leaves, employees may not engage in otheremployment.

 

b.-1.                         Personalleaves of absence due to death in the immediate family may be granted for aperiod not to exceed six (6) months. Such leaves will be granted without pay or other benefits, except thatseniority shall continue during the leave.

 

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b.-2.                         Personalleaves of absence due to sickness in the immediate family may be granted for aperiod not to exceed six (6) months. Such leaves must be certified and will be granted without pay, exceptthat other benefits will be covered for a maximum of thirty (30) days, andseniority will continue during the leave.

 

**Section2.**  Employees applyingfor a leave of absence for illness may be subject to physical examination andapproval of a physician appointed by the Company before such leave is grantedand/or before the employee may return to work. Any disagreements arising from differing opinions of physicians will besubject to a final decision by a qualified physician at Vanderbilt Universitymutually agreeable to both parties.  Anemployee must give the Company a forty-eight (48) hour written notificationbefore returning from leave.

 

**Section3.**  Failure to reportto the Company within three (3) working days after the expiration of any leaveof absence shall constitute voluntary resignation.

 

**Section4.**  An employeereturning to work after a leave of absence will return to his/her shift andshall be placed in the classification held at the time of leave.  This will be done on the basis of theemployee’s seniority and provided he/she is able to perform the jobrequirements.

 

**Section5.**  Any employee whois elected or appointed to an office or position with the local Union, theUnited Steelworkers of America or the AFL-CIO-CLC will be given a leave ofabsence.  Such leave will be without payor any other financial benefits, except pension benefits included in theAgreement; however, seniority will continue to accumulate.  The Union may apply for an extension of suchleave every three years.

 

**Section6.**  **Military ServiceReemployment Rights.**  TheCompany shall accord to each employee who applies for reemployment afterconclusion of his/her military service with the United States such reemploymentrights as he/she shall be entitled to under then existing statutes.

 

**ARTICLE XIV**

 

**Wages**

 

**Section1.  General.**

 

a.                                       Underthe terms of this Agreement, the Company shall not be required to pay for anytime except time spent at work to which the Company assigns the employee unlessotherwise specifically provided for in this Agreement.

 

b.                                      Allearnings are calculated on a weekly basis except when a moving average is usedin Gain-sharing.

 

**Section2.**  Labor Grades andRates of Pay are set forth in Appendix “A” attached hereto and are a part ofthis Agreement.

 

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**Section3.**  New employeeswithout previous experience will be hired at the appropriate rate as shown onthe progression rate scales outlined in Appendix “A” of this Agreement.  All employees hired after March 31,1996 willbe paid $3.00, per hour, lower than the prevailing wage scale in effect forthis labor agreement.

 

Employees who have some experience will be placed at arate on the progression rate scale commensurate with their experience andability to perform the job between the minimum hiring rate for the labor gradeup to and including the full job rate if the employee is fully qualified.

 

**Section4.**

 

a.                                       Anyemployee on temporary transfer to another job for the convenience of theCompany shall be paid the rate of his/her job or the full rate of the job towhich he/she is transferred, whichever is higher.  Such transfers will not exceed six (6) weeks.  If a transfer is made into a department wherethere is a layoff, the Company will give the reason necessary to the **Unit President**.

 

b.                                      Whenhe/she is transferred because of no work, machine breakdown or for his/herconvenience, he/she will be paid the rate of the job to which he/she istransferred.  Should the lack of work ormachine breakdown condition continue beyond the first week, the least senioremployee on the shift in affected job classification will be transferred.

 

**Section5.**  **ShiftPremium.**  Employees workingon a scheduled second shift shall be paid a night shift premium of .20 perhour.  Employees working on a scheduledthird shift shall be paid a night shift premium of .23 per hour.  Employees working on their scheduled shiftsstarting between 2 P.M. and 10 P.M. (2nd Shift) and 10 P.M. and 6 A.M. (3rdShift) shall be considered as working on night shifts and entitled to theapplicable bonus for that shift.  Whenan employee’s hours continue into the following shift, bonus will be determinedby the shift of origin. When an employee is called in or scheduled on a shiftother than his/her own, he/she shall receive bonus applicable to that shift forhours worked. “D” shift employees will receive .23 per hour shift premium forall hours worked.

 

**Section6.**  The Company willsupply the following tools to those employees, where needed, to operate withintheir respective job classification:

 

1. Metric tools

2. Special spanners

3. Snap ring pliers

4. Allen wrenches

5. Indicators

6. Special press wrenches.

 

All tools broken in the course of the job will bereplaced.

 

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**Section7.**  Only those jobswhich are presently designated as leader’s jobs by the Company are covered bythe terms of this Agreement.

 

It is understood that such additional duties ascomprise the lead aspect of the jobs in question may be deleted at the Company’sdetermination.  Upon such elimination ofthe duties, the Company need not pay the leader’s differential of .20.  Should the Company re-institute the leadduties, the differential will be restored.

 

Under no circumstances does the agreement to pay additionalmonies for the affected jobs infringe on Job Evaluation nor does it setprecedent for future jobs installed in accordance with Job Evaluation, ArticleVI.

 

On the basis of the above provisions, the Company willpay the leaders in question .20 higher than their evaluated rate.

 

**Section8.**  The Company agreesto provide payroll deduction for a Credit Union, if one is established.

 

**Section9.**  **Pay forWorkmen’s Compensation Injuries.** Day of injury and outside medical attention required:

 

**Returnto work after outside treatment:**

a.  Paid fortime out of plant; charged to job.

 

**Doesnot return to work from outside treatment:**

a.  Paid to endof normal shift; charged to job.

 

Medical attention on subsequent day after employee hasreturned to active work.*

 

 

*If additional visits for outside medical attentionare not possible on employee’s own time.

 

**Returnto work after treatment:**

a. Paid for time out of plant; charged to job.

 

**Doesnot return to work after treatment:**

a. Paid to end of normal shift; charged to job.

 

If additional visits are required, the employee mustnotify his/ her supervisor twenty-four (24) hours prior to day of absence.  **A reasonable schedule will be observed.**

 

Employees on the 2nd and 3rd shifts who are requiredto seek out of town treatment for their injuries will be paid four (4) hoursprovided they work the remainder of their shifts.

 

**Section10.**  Employeesattending company-sponsored training programs outside of a 50-mile radius willbe reimbursed for travel time at the employee’s straight-time rate.

 

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**Section11.**  It is agreed thatany vending machine profits in the Plant will be divided equally between theCompany and the Union to be used for the Family Picnic Fund.

 

**ARTICLE XV**

 

**Insurance andPension Benefits**

 

**Section1.**  A pension plan andinsurance program have been provided in agreements which are separate and apartfrom this Agreement.

 

**Section2.**  An employee’sinsurance terminates at the end of the first month in which an employee isgranted a personal leave, or is laid off with 3 days’ notice; or at the end ofthe month following the month laid off without 3 days’ notice.

 

While on medical leave, insurance benefits continuefor an employee and his/her dependents for a period not to exceed 39 weeks.

 

**Section3.**  In accordance withthe contractual terms as outlined in Article XV, Section 2., medical and lifeinsurance benefits are continued during term of leave for a period not toexceed 39 weeks.

 

**Section4.  MEDICAL AND INSURANCE BENEFITS**

 

Life Insurance: $20,000 effective June 1, 2002.

 

Accidental Death and Dismemberment: $20,000 effectiveJune 1, 2002.

 

Accident and Health: Effective April 1, 1990, Accidentand Health benefits shall be increased from $150.00 per week to $175.00 perweek, for a period not to exceed 39 weeks, with medical benefits covered forthat same 39-week period.

 

The following is a brief outline of the insuranceprogram.  The employee should alwaysrefer to the insurance booklet provided, or contact the Human ResourcesDepartment should there be questions concerning eligibility or limitations ofinsurance coverage:

 

**INSURANCE**

 

Eligibility begins on the first day after you havecompleted ninety (90) days of continuous service for the employee and eligibledependents.

 

Effective June 1, 2002, coverage will be as followsfor those employees not opting out:

 
| Medical: |   | -Steelworkers 100/80  PPO        |
|----------|--------|----------------------------------|
|     |   | -Steelworkers Drug  Option C     |
|     |   |                             |
| Vision:  |   | -Steelworkers  OptiCholce Vision |
|     |   |                             |
| Dental:  |   | -Steelworkers Dental  Plan A     |

 

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Effective June 1, 2002, all employees covered by theabove medical insurance will pay the following weekly contributions:

 
| **Type  Coverage:** |   | **Contract  Year 1:** |   | **Contract  Year 2:** |   | **Contract  Year 3:** |   |
|---------------------|--------|-----------------------|--------|-----------------------|--------|-----------------------|--------|
|                |   |                  |   |                  |   |                  |   |
| Family              |   | $                     | 28.00  |                  | $      | 38.00                 |   | $ | 44.00 |   |
| Single              |   | $                     | 16.00  |                  | $      | 23.00                 |   | $ | 29.00 |   |

 

If the insurance premium increases more than twenty(20%) percent from year 1 to year 2, or more than twenty (20%) percent fromyear 2 to year 3, the Union will either restructure the Plan to stay below thatcap, or increase employees’ contributions to cover the difference.  This language on premium cap will not besuperceded by any language in the Participation Agreement with the SteelworkersHealth and Welfare Fund.  This planshall be the insurance plan for the duration of this contract; and the Unionmay not opt out of this Plan during the life of this agreement.

 

The Company will pay a monthly Cash Option to anyemployee waiving the above medical insurance in the amount of $250.00/Family or$150.00/Single.  However, no more than20% may opt out.  In addition, theCompany agrees to continue the stand-alone Prescription Drug benefit, orsubstantially equivalent plan with $10/$20 co-pays, for those employees coveredby the separate agreement effective July 1, 2000.

 

Any employee retiring during the life of this laboragreement will have his benefits capped at whatever the cost of those benefitson April 1, 1996.

 

**MEMORANDUM OF UNDERSTANDING**

 

Amendments to the Pension Plan for Hourly Employees:  The present minimum pension formula shall beimproved by increasing the pension, per month, per year of service, from $29.00to $32.00 effective for retirements on or after July 1, 2004.

 

30-Year Retirement (early retirement without actuarialreduction).  An employee who attains 30or more years of service may elect to retire with a full pension (not actuarilyreduced) regardless of age.  Employeesretiring as of April 30, 1996, will have their retiree Major Medical Lifetimemaximum increased from $2,500.00 to $10,000.00.

 

Immediate Vested Retirement.  If you are terminated because of a permanent shutdown of thefacility, you may be eligible to retire at that time without actuarialreduction, provided you meet either of the following age and service combinationson the date of termination:

 

(1)                                  atleast 15 years of service and 55th birthday, or

 

(2)                                  atleast 15 years of service and combined age and years of service equal 80 ormore.

 

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**ARTICLE XVI**

 

**Union andManagement Cooperation**

 

**Section1.**  The Company andthe Union recognize the advisability of making every effort to constantlyimprove relationships between the Company, the Union and all employees.  In the interest of improving relationshipsand to provide a forum for the discussion of overall problems of mutualconcern, inclusive of Civil Rights, other than specific grievance cases, aLabor-Management Committee consisting of the Unit President and three (3) othermembers of the bargaining unit, the Plant Manager and ManagementRepresentatives designated by the Company shall meet monthly on Company time todiscuss problems which may cause a disruption in relationships or to suggestmeans of improving relationships, provided the Union provides the Company witha written agenda for this meeting at least one (1) business day prior to themeeting.

 

**ARTICLE XVII**

 

**Vacations**

 

**Section 1.****                VacationPeriod.** The vacation year begins on January 1 and ends on December 31 ofthe current year.

 

**Section 2.****                Eligibility.**

 

a.                                       Ifyour anniversary of continuous employment is reached on or before December 31of the current year, you are eligible for:

 
| **Accumulated Service on or Before  December 31 of the Current Year** |   | **Vacation** |   |
|-----------------------------------------------------------------------|--------|--------------|--------|
| 1  year                                                               |   | 2 weeks      |   |
| 10  years                                                             |   | 3 weeks      |   |
| 20  years                                                             |   | 4 weeks      |   |

 

b.                                      Eachemployee who is actively on the payroll on December 31 of any year shall beentitled to his/her full vacation benefits in accordance with Section 2. a.above, notwithstanding the fact that his/her service may have been terminatedfor any reason during the ensuing year prior to receipt of vacation benefits.

 

c.                                       Anyemployee who was on leave of absence or layoff on December 31, and returned orwas recalled thereafter, shall be entitled to his/her full vacation benefit inaccordance with 2.a. above provided he/she works at least six (6) monthsbetween January 1 and December 31 of the current vacation year.

 

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**Section 3.****                VacationSchedule.**

 

a.                                       Vacationswill, as far as possible, be granted at times most desired by employees; butthe final right to schedule vacation periods is reserved by the Company inorder to insure the orderly operation of the business.  This includes the right of the Company todetermine whether or not the Plant will be closed for all or part of a vacationseason, and to schedule vacations at such time.  The Company will, by May 31st of each year, make known to theUnion when the Plant will be shut down for vacation purposes.

 

a.-1.                          Noemployee will be required to work during a vacation shutdown or properlyscheduled vacation period without thirty (30) days notice.  Employees scheduled for inventory workduring the shutdown will be scheduled at least 10 days in advance, except wherecircumstances do not permit.

 

a.-2.                          Vacations(not including plant shutdown periods) shall be scheduled at least 30 days inadvance and may not be changed except by mutual consent.

 

b.                                      Vacationsare scheduled as consecutive days in combinations of five (5) working days,except where lesser combinations are agreed to mutually.

 

c.                                       Whena paid holiday falls within an employee’s scheduled vacation, he/she shallreceive an extra day off at his/her discretion with one week’s notice orreceive eight (8) hours additional pay for the holiday.  If the holiday falls during a plant vacationshutdown, that holiday will be scheduled by the Company.  The Company will notify the union by May31st of each contract year whether or not the holiday during the plant shutdownwill be scheduled immediately prior to or after the shutdown, or whether theholiday may be used at the employee’s discretion with five (5) days’ notice.

 

d.                                      Noemployee will be required to work overtime on the weekend or sixth or seventhday prior to or following his/her vacation period.

 

d.-1.                         An employeescheduled for five (5) or more days of vacation, shall not be required to workovertime on their last regular work day prior to that vacation.

 

e.                                       Workduring plant shutdown will be in seniority order by the classifications neededon their respective shifts.  Whennotified by May 31st of each year, employees scheduled to work in theirclassification, must work or will be subject to disciplinary action.

 

f.                                         WhenGeneral Laborers are needed during a plant shutdown, the jobs shall be filledin the classification in seniority order. If the jobs can not be filled in the classification, they will be filledon a seniority basis plant-wide.

 

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g.                                      Inventoryduring vacation shutdown will be filled in seniority order.

 

h.                                      Anemployee with three (3) or more weeks vacation may take one of those weeks indays, provided that employee gives the Company reasonable notice. The fourthweek of vacation can be split in the following manner: two (2) and three (3)days, or three (3) and two (2) days. Days worked during vacation shutdown maybe taken as individual days with reasonable notice.

 

**Section 4.****                VacationPay.**

 

a:                                       Foreligible employees, vacation pay shall be based on the average hours worked bythe employee for the first two-week period of the six weeks immediatelypreceding the vacation period.  Anemployee may make their selection once per year in order to determine whichvacation period the Company will use to establish their vacation pay.

 

a.-1.                Officers andCommitteemen shall be considered to have worked eight (8) hours each day andfive (5) days each week while on official Union business for the purpose ofcalculating vacation pay. This includes any Union member who is on officialUnion business.

 

b.                                      Vacationpay will be based on the employee’s regular job rate (not temporary rate)current at the time of vacation.  Thisdoes not include shift premium.

 

c.                                       Foreligible full-time employees, pay for each vacation week shall not be less thanforty (40) hours, nor more than forty-eight (48) hours.

 

**Section 5.****               **Foreach week of vacation as provided under this Article, Section 2.a., an employeewill receive a $45.00, per week, vacation bonus, effective March 28, 1981.

 

**Section 6.****               **Employeesrequired to work during vacation shutdown and taking their vacation at anothertime, the Company will pay the higher pay of the two (2) eligibility periods.

 

**ARTICLE XVIII**

 

**Seniority**

 

**Section1.  Definition of Seniority.**  Seniority is defined as the length of anemployee’s continuous service with the Company and shall date from the time ofthe employee’s most recent hiring.

 

**Section2.  Loss of Seniority.**  Seniority shall cease and employmentterminate upon:

 

a.                             Resignationor quit.

 

b.                            Dischargewith cause.

 

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c.                             Failureto report for work for three (3) work days without a valid reason and withoutsatisfactory notice to the supervisor within said three (3) work days.

 

d.                            Failureto report for work within three (3) work days after the expiration of a leaveof absence.

 

e.                             Failureto report to the Human Resources Office from layoff within three (3) work daysafter receiving notice of recall. However, if an employee can prove within ten (10) calendar days fromexpiration of leave of absence or receipt of recall that it was impossible forhim/her to notify the Company, his/her seniority rights shall be retained.  Recall notice will be by certified orregistered mail.  An employee laid offfrom the Plant may refuse recall to a temporary job without jeopardizing futurerecall rights.

 

f.                               Layofffrom the Company for more than forty-eight (48) consecutive months for anemployee with more than six (6) months service, or for a period equal to twicehis/ her length of service if the employee has less than six (6) months ofservice. Employees who bid or are recalled to jobs they cannot perform and, asa result, are disqualified by themselves or the Company, will not start theirrecall periods over again.

 

**Section3.  Rehired Employee.**  Any employee whose seniority has ceasedunder Section 2., and who is subsequently rehired shall be covered under theterms of this Agreement in the same manner as a new employee.

 

**Section4.  Probationary Period.**  During the first one hundred twenty (120)calendar days of employment for grades 1-6, and one hundred fifty (150) days ofemployment for grades 7-12, employees will be considered as probationary andshall be subject to discharge without recourse. After completion of theprobationary period, an employee’s record of continuous service will date backto the original employment date.

 

**Section5.  Seniority List.**  The Company will maintain seniority recordsof all employees which will be available in the Human Resources Department forexamination by the Union. Copies of Group seniority lists and a plant-wideseniority list will be given to the Local Unit President and Unit Griever everysix months upon request. The International Representative will be provided witha seniority list upon request, as well as the Local Unit President.

 

**Section6.  Group Seniority.**  New employees when hired will be assigned toa group and will accumulate seniority in the group. When an employee bids to adifferent group and accumulates two (2) months of service within one (1) year,he/she will be credited with his/her full Plant seniority in that group. Forpurposes of this Article, the various seniority groups and the jobclassifications assigned to them shall be as listed in Appendix “B” of thisAgreement.

 

**Section7.  Promotion to Excluded Position.**  Employees transferred from the BargainingUnit to an excluded position will cease to accumulate seniority on the date ofhis/her transfer. Should such transferred employee for any reason return to theBargaining Unit, within

 

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90 calendar days of his/her initial transfer, he/she will receive theseniority he/she had on the date of his initial transfer. In the event thetransferred employee fails to return to the Bargaining Unit within the 90 calendardays of the initial transfer, his/her seniority will be frozen as of the timehe/she left the Bargaining Unit.  Ifsuch transferred employee thereafter returns to the Bargaining Unit, it will beas a General Laborer, seniority permitting. No employee may transfer back intothe Bargaining Unit more than once during the life of this Agreement. Salariedemployees who moved from the Bargaining Unit under prior contracts will becovered by the provisions effective at those times.

 

**Section8.  Shift Assignment for Training. **Employees newly assignedor bidding to a new job may be assigned to another shift not in excess of onehundred twenty (120) days for grades 1-6 and one hundred fifty (150) days forgrades 7-12 for training. Should an employee be disqualified or terminated andanother employee hired or transferred, the new employee may, likewise, beassigned for not in excess of the training period. If at any time during thetraining period the Company feels that a particular employee is qualified, theparticular job will be canvassed for the open shift, and the employee involvedwill be moved immediately. Production Assistants may also be assigned toanother shift to train for up to sixty (60) days. Where possible, ProductionAssistants will be assigned in reverse seniority order. This section will notbe construed so as to move a senior employee from his/ her preferred shift tomake room for a trainee. If training occurs within an employee’s jobclassification, the senior employee will remain on his shift whether he is thetrainer or the trainee.

 

**Section9.  Local Union Officers and Committeeon Layoff.**  It isunderstood that the following Local Union Officers shall have top seniority forlayoff purposes during their respective terms in office: Local Union Presidentand/or Unit President and Unit Grievers.

 

a.                             TheLocal Union President and/or Unit President and Unit Grievers shall not bebumped from their respective shifts unless their jobs are eliminated.

 

b.                            TheChairman of the Grievance Committee will be permitted work on the first shiftprovided there is a job in his/her classification on the first shift. For thispurpose, the Chairman will be accorded super seniority with respect to bumpinginto the first shift or immunity from being bumped from it. The Unit Presidentwill be Chairman of the Grievance Committee.

 

c.                             Inthe interest of improving Company-Union relations, the Chairman of theGrievance Committee will be allowed to work second or third shift when he deemsit’s necessary for a period not to exceed sixty (60) days per year. TheChairman of the Grievance Committee will trade shift assignments with the mostsenior employee in his/her classification who desires to swap. If no one on thedesired shift wants to swap, then the junior employee will be bumped to the dayshift until the Grievance Chairman returns.

 

d.                            Anelected Unit Griever will be allowed to refuse recall without giving up recallrights or bidding rights to future openings to previously held jobs.

 

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e.                             Anelected Unit Griever will not hold a preferred job on his shift until heexhausts his seniority rights according to the contract.

 

f.                               Ifthe Chairman of the Grievance Committee is in Maintenance or Tool Room, theCompany will have the option of transferring that employee to the GeneralGroup, during the term of office. If the Chairman of the Grievance Committee isin any other group, the employee will have the option of transferring to theGeneral Group. If the employee is transferred, base pay will be red-circled atthe previous rate; and incentive will be based upon previous twelve-monthaverage. The Chairman’s job will be bid out as a temporary job during his termof office. As a result of this addition, no employee will be displaced; and, incase of a layoff, the normal contractual rules will apply. If the Chairman isnot moved, release for union business will not be unreasonably denied.

 

**FILLING PERMANENT JOB VACANCIES**

 

**Section10.  Seniority Recognition.**

 

a.                             It isthe intent of both parties to give the senior employee the opportunity forhigher paying jobs and choice of shifts, provided the employee has the abilityand qualifications to perform the work available, subject to the procedures andin the order outlined herein.

 

b.                            Onplant-wide bids, employees may bid up, but not laterally or downgradethemselves, without a valid reason. During the life of this contract, anemployee will be permitted the opportunity to bid laterally or downgrade onetime for any reason.

 

c.                             If,within four weeks after starting on a job to which he/ she has bid, an employeeperforms unsatisfactorily or if, within five days after starting on a job, anemployee self-disqualifies himself/herself, he/she shall be returned to the jobfrom which he/she has bid without prejudice. Self-disqualification shall bepermitted no more than once per contract year.

 

**Section11.  Procedure.**

 

a.          **Group Preference:**

 

a.-1.                          Employeesin the same group on the job classification involved will be given shiftpreference. Such preference will be determined by a shift preference cardfilled out by the employee and will remain in effect for the length ofemployment.  This same shift preferencecard shall also be used for the purposes of Section 17. below.  An employee may change his preference cardat any time if it is at least 24 hours prior to an actual job posting.  Whenever an opening occurs, the opening willbe filled according to the shift preference cards.  If an employee

 

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changes groups, theemployee’s shift preference will be transferred to the new group.

 

a.-2.                          Recallof most senior employee whether he’s/ she’s laid off from that classificationor a higher classification either in or out of the Plant.

 

If an employee is bumpedfrom his/her home group and acquires two months seniority within one year inanother group, the employee will be permitted to select the new group any timeafter obtaining group seniority.

 

A laid-off employee maybe recalled to a job in his last unit provided he has held that job and has thenecessary seniority. If a mistake in recall or plant-wide bid from layoff isbrought to the Company’s attention by the Union and not remedied, the affectedemployee will be paid from the time of notification until corrected.

 

An employee laid off fromthe apprentice program shall be recalled in the order of his entry into theprogram.

 

a.-3. Posting of job forupgrading, lateral or downgrading in group, based on group seniority, providedemployees have satisfactory ability and qualifications to perform the job (upto four (4) weeks to demonstrate proficiency). An employee who bids up withinhis/her group will be restricted from bidding down within the group for aperiod of one year from the date of bid.

 

b.                            **Plant-wideBid:**  If the job is notfilled by the procedure outlined in a. above, the job vacancy will be postedplant-wide for three (3) working days, excluding Saturday and Sunday andholidays. Applicants applying for the job will be given consideration in Plantseniority order to determine if they have the necessary ability andqualifications to meet the job requirements. If the Company voids a posted job,it must be re-bid before anyone is placed on it. Should a bidder bedisqualified by the Company or himself/herself, the next eligible bidder may beawarded the job. Should the next eligible bidder be disqualified, the bid maybe re-posted.

 

If there are nosuccessful bidders on an open job and it is not filled by the Company withinthirty (30) days, it will be re-bid. All openings created by job bids shall befilled by the above procedure.

 

c.                             **Hiring:**  If the job cannot be filled in accordancewith a. or b. above, the Company may exercise its discretion in filling of thevacancy by hiring new employees.

 

d.                            **Training of Employees:**  However, the Company may select employeesfor training whom the Company feels have the potential skill and ability, inwhich case, the selection will be made from those employees who bid for theposted

 

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job as trainees. Whereverpractical, present employees will be given preference for training on open jobsbefore hiring from outside. Seniority will be the controlling factor in anyselection providing all other factors are of relatively equal value.

 

e.                             Permanentshift swapping will be allowed within the classification provided no one elseis involved.

 

f.                               Temporaryshift swapping will be allowed within the classification provided no one elseis involved, and the employees are immediately qualified for the jobassignment.

 

g.                            Employeeswho have disqualified themselves will be entitled to re-bid those jobs aftertwo (2) years. An employee will also have this right to re-bid after two yearsif he is disqualified by the Company.

 

**Section12.  Bidding by Absentee.**  Employees who are to be absent from thePlant up to one month may notify the Human Resources Department of their desireto be considered for specific jobs which may be posted during their absence.

 

**Section13. Posting of Award.** The names of successful bidders with their seniority and the job awardedshall be posted on the bulletin board within two (2) weeks of the postingperiod.

 

Upon transfer to the new job, the employee’s senioritywill be adjusted to the date the job was awarded, and credit will also be giventoward any automatic progression rate on the new job.

 

a.                             Anemployee will be moved to the posted job within six (6) weeks of hisacceptance.

 

**Section14.  Inter-Departmental BiddingRestriction.**  Newemployees and employees accepted in another group on a posted bid will berestricted from bidding for another posted job within another group for aperiod of six (6) months after reaching full job rate for classifications 1-4and two (2) years for classifications 5-12. New employees hired in labor grades1 and 2 may bid plant-wide for open jobs after ninety (90) calendar days.

 

However, any employee will be permitted to bid upwardsat any time within the group, after reaching their full job rate, except he/she may not bid to a job he/she has held within the previous six (6) months.

 

a.                             If anemployee has bid on several jobs simultaneously, when the awards are made,he/she will have his/her choice of jobs if accepted on more than one.

 

b.                            TheCompany will provide the Chairman of the Grievance Committee with copies of allposted job bids as well as posted job awards.

 

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c.                             If noemployee in a seniority group bids on a group opening, the six-monthrestriction will be waived for any employee within the group with less than sixmonths in a new job.

 

**REDUCTION IN WORKFORCE**

** **

**Section15.**

 

a.                             Incase of a layoff: the least senior employee in the job classification willreturn to his/her home group, or if this is his/her home group, he/she will beallowed to bump up, provided he/she has previously held the job classificationand can demonstrate immediate proficiency. Employees not eligible to bump up will retrograde in his/her group onthe basis of his/her group seniority, provided he/she has the ability andqualifications to perform the job (up to three days in which to demonstrateproficiency).

 

a.-1.                          Anemployee who must return to his/her home group will be given a choice of shiftsprovided his/her seniority is sufficient. ~w >,

 

b.                            If theemployee is bumped from his/her home group, the employee may bump in reverseorder of last job held to next to the last job held and so on, to any job inwhich they have attained group seniority, provided they are immediatelyqualified after being familiarized with anything new to the equipment andoperations.

 

c.                             If anemployee cannot exercise the options provided in a. or b. above, he/she willbump the least senior employee in the general group (Labor Grades 1 and 2),provided he/she has more seniority and can perform the job.

 

c.-1.                          If anemployee is physically incapable of performing the duties of the above job,he/she will be permitted to bypass the job and bump the next least senioremployee in the General Group on a job which he/she is physically capable ofperforming.

 

d.                            Anyemployee involved in layoff procedure shall be given full rights and benefitsunder this Agreement according to their Plant seniority.

 

e.                             Anemployee is prohibited from bumping to a job on which he/she has alreadydisqualified himself/herself. Employees refusing recall to a classification, orwho withdraw their names from a bid job, do not give up bumping rights to thehighest classification previously held.

 

**Section16.  Optional Layoff.**  An employee has the option to accept layoffin place of downgrading, in which case he/she will not have recall rights tojobs in labor grades below the labor grade from which he/she accepted layoff.An employee maintains bidding rights while on optional layoff.

 

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a.                             Ifthere is a reduction in force in a classification, the senior employee(s) inthat classification may elect to take a Voluntary Layoff. Employee(s) acceptinglayoff will be on layoff until recalled by seniority to the group from which theyleft. An employee may reject recall to an open position and remain on layoff ifthe employee has the seniority and there are still employees on layoff. TheCompany will not deny unemployment benefits to employees who accept thislayoff.

 

**Section17.**  An employee mayexercise a shift preference within his/her job classification prior to vacationshutdown of each year, or prior to the first work week in August, should therebe no vacation shutdown. Such preference will be granted provided the employeehas sufficient seniority to displace the employee on the desired shift. If anemployee attains group seniority before July 1 of the current year, theaffected employee may exercise a shift preference within his/her jobclassification provided the employee has sufficient seniority to displace theemployee on the desired shift.

 

The preference will be based on the shift preferencecard provided for in Section 11 above. However, for any purpose, no changes shall be permitted in the shiftpreference card from June 1st to the effective date of the preference untilafter the preference is completed.

 

The employee will be physically moved to the desiredshift upon return from vacation shutdown, or on the first work day of the firstfull week in August, should there be no vacation shutdown.

 

**Section18.**  (Number of daysshown below will be defined as working days.)

 

1.                             Openjobs in areas designated, will be bid without a low shift preference. This willallow current employees an opportunity to fill the job vacancies, subject tothe bidding procedures, prior to hiring from the outside.

 

2.                             Employeeswill be hired to fill the open job vacancies and be placed on a shift fortraining. The shift will be determined by the Company.

 

3.                             Thenumber of employees to be hired at any given time will be at the discretion ofthe Company. However, if the number becomes so large as to make policing ofthis Agreement impossible on the part of the Company or the Union, thisAgreement is subject to cancellation.

 

4.                             Acopy of the employee’s name, date hired, clock number, job assigned and shiftassigned will be provided to the Union.

 

5.                             Theshift assignment for training will not be in excess of ninety days. The ninetydays will be per employee from the date of hire or transfer (in the case of asuccessful bidder). Should an employee be disqualified, the ninety days willstart again from the date of hire or transfer (in the case of a successfulbidder) of the new employee. If at any time during the ninety day trainingperiod, the Company feels that a particular employee(s) is(are) qualified, the

 

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particular job will becanvassed for the open shift and the employee(s) involved will be movedimmediately.

 

6.                             Ifthe Union shows where the Company has abused the training program by notproviding proper training to an employee, that particular job will be shiftcanvassed and the employee involved will be moved immediately.

 

7.                             Theemployees will not be considered on the overtime roster for the first sixtydays of the training period or until qualified, unless all other employees inthe affected job classification on the shift are asked to work.

 

8.                             Underthe training program, when an employee is a successful bidder on a downgradeand he/she is qualified to do the job, an opening will be declared immediatelyand a shift canvass will be taken to fill the opening. It is for up to sixweeks, as stated in the contract. This will be done before any other employeeis declared qualified. The employee bidding down cannot take a shift preferenceon the opening declared because of his downgrade; since “employees in the samegroup on the job classification involved will be given shift preference”, asstated in the Company-Union Agreement.

 

**Section19.**  Where the employee’spersonal health limitations are expected to be permanent or of long, continuedduration, and where the employee downgrades to the General Labor group, he/shewill assume the position of General Laborer and shall be credited with his/herfull Plant seniority without having to accumulate two (2) months of service asrequired by Section 6. of Article XVIII.

 

In making this transfer, the downgrading employeeshall give up any claim to return to his/her old classification after themedical limitations are lifted. The employee will be treated just as if he/shehad bid to the General Laborer classification. However, if the employee’slimitations are lifted within ninety (90) days, the employee will return to thejob from which he/she downgraded, his/her seniority permitting.

 

After there is a subsequent improvement in theemployee’s condition, and after limitations originally imposed by the physicianare either significantly modified or lifted entirely, the employee may bid toanother job in the plant only after he/she works an additional six (6) fullmonths in the General Laborer classification. However, the employee may bidonly if the duties of the job to which the employee is bidding are within theemployee’s limitations, if any. All doctors’ statements will be reviewed by theUnit President and Human Resources Manager and may be reviewed by therecognized Company doctor.

 

**Section20.**  Notices ofemployee hires and terminations will be sent to the Union’s FinancialSecretary.

 

**Section21.  Temporary Bids**

 

The following procedure will apply for jobs bid on atemporary basis to fill vacancies created by employees on leave of absence orother vacancies known to be of a temporary nature.

 

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A temporary job will be in effect for a maximum ofnine (9) months from date bid. At the end of nine (9) months, the temporary jobwill be bid as a permanent job. Should the employee on leave of absence returnto work prior to the end of the nine (9) months, he will bump the employee onthe temporary bid. Should the employee on leave of absence return after thetemporary job has been bid as permanent, he will bump the junior employee onthe shift and in the job classification he held at the time his leave started,providing his seniority is sufficient. If the employee returning from leavedoes not have sufficient seniority to return to his job classification, he willretrograde in his group on the basis of his group seniority, provided he hasthe ability and qualifications to perform the job.

 

In the event of a layoff, all temporary bids in theaffected group will be cancelled, prior to the layoff. Employees working on atemporary job will return to their permanent jobs and the layoff will takeplace at that time.

 

**ARTICLE XIX**

 

**Hours of Work**

 

**Section1.**  This article isintended to provide a basis for calculating overtime only. It shall not beconstrued as a guarantee of hours to be worked by an individual employee orgroup of employees per day or per week.

 

The Company may rotate employees in a department for aperiod not to exceed 4 weeks. During rotation, the department will operate 5days per week, but employees will be rotated on a continuing basis so that noemployee loses more than one day out of each week. If a longer rotation periodis necessary, the Company will be obliged to negotiate that with the Union.

 

**Section2.**  **Work Week.**  A normal work week shall consist of five (5)consecutive eight-hour days followed by 2 days of rest.

 

**Section3.  Work Day.**  A work day shall be defined as a consecutive24-hour period beginning with the starting time of an employee’s shift. Eightcontinuous hours of work interrupted by regularly scheduled lunch periods shallconstitute a day’s work.

 

**Section4.  Working Schedules.**  Except where an off-standard work week isestablished by the Company, the following are the working hours of the variousshifts. The Company may operate these different shift schedules simultaneouslywithin the Plant or any department.

 
| One-shift operation:   |   | 7:00 a.m. - 3:00 p.m.  |   |
|------------------------|--------|------------------------|--------|
|                   |   |                   |   |
| Two-shift operation:   |   | 7:00 a.m. - 3:00 p.m.  |   |
|                   |   | 3:00 p.m. -11:00 p.m.  |   |
|                   |   |                   |   |
| Three-shift operation: |   | 7:00 a.m. - 3:00 p.m.  |   |
|                   |   | 3:00 p.m. -11:00 p.m.  |   |
|                   |   | 11:00 p.m. - 7:00 a.m. |   |

 

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Four-shift operation:

 
|   |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   |
|--------|--------|----------|--------|-----------|--------|----------|--------|------------|--------|----------|--------|----------|--------|----------|--------|
|   |   |     |   |      |   |     |   |       |   |     |   |     |   |     |   |
| A      |   | 7-3      |   | 7-3       |   | 7-3      |   | 7-3        |   | 7-3      |   | OFF      |   | OFF      |   |
|   |   |     |   |      |   |     |   |       |   |     |   |     |   |     |   |
| B      |   | OFF      |   | 3-11      |   | 3-11     |   | 3-11       |   | 3-11     |   | 3-11     |   | OFF      |   |
|   |   |     |   |      |   |     |   |       |   |     |   |     |   |     |   |
| C      |   | 11-7     |   | OFF       |   | OFF      |   | 11-7       |   | 11-7     |   | 11-7     |   | 11-7     |   |
|   |   |     |   |      |   |     |   |       |   |     |   |     |   |     |   |
| D      |   | 3-11     |   | 11-7      |   | 11-7     |   | OFF        |   | OFF      |   | 7-3      |   | 3-11     |   |

 

**Section5.  Premium Pay - Four Shift.**  Employees who are on a four-shift schedulewill receive time and one-eighth for regularly scheduled hours worked onSaturdays and time and one-quarter for regularly scheduled hours worked onSundays.

 

**Section6.  Call-in Pay.**  If an employee is called into work prior tothe beginning of his/her shift, he/she shall be guaranteed a minimum of four(4) hours at the appropriate rate. If those hours are contiguous to his shift,premium rate is applied only to those hours which are not part of his normalshift.

 

**Section7.  Reporting Pay.**  In the event an employee reports for work asscheduled, he/she will be given at least four hours of work - or be sent home.If an employee reports to work as scheduled and work is not available, he/shewill be assigned other work and be paid at least four hours pay at his/herregular rate. If he/she is sent home, he/she will be paid four hours pay athis/her regularly assigned rate. This does not apply where: (1) the employee isunfit for work; (2) the inability to provide work is due to emergencysituations; or (3) he/she is notified not to report to work. Employees arerequired to maintain a reliable method of being contacted by phone to qualifyfor reporting pay.

 

**Section8.  Division of Overtime.**  No employee will be required to work morethan eight (8) hours voluntary or required overtime in a work week, and no morethan two (2) 6th-days, per month. On a weekly basis, the Company will post anovertime sign-up roster in designated areas. Any employee wishing to workovertime will indicate their preference on that sheet. When the Company has aneed for overtime, it will offer it to the most senior employee in theclassification on that roster. If there are no volunteers on the roster, thejunior employee in the classification will be required to work the overtime,unless that junior employee has already worked eight (8) hours overtime duringthat week. Opportunities for voluntary overtime will be rotated daily based onseniority. Employees signing the overtime roster will be expected to work ifneeded. If a mistake is made on overtime, that employee will be offered thenext available overtime opportunity. There will be no records kept, exceptweekly posted sheets for time and one-half. Double-time scheduling foremployees will be kept within eight (8) hours on a shift and twenty-four (24)hours between shifts where practical. Appropriate records will be kept. Noemployee will be required to work on their 6th or 7th day unless told by theend of his/her shift on the fourth day of their work week. Required overtimewill not be scheduled by phone.

 

28

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**Section 9.  Overtime Pay.**

 

a.                                       Exceptas provided in b. below, time and one-half shall be paid for all hours or partsof hours worked:

 

a.-1. in excess ofeight (8) hours in any one work day;

 

a.-2. in excess offorty (40) hours in any one work week;

 

a: 3. on the sixthday of the scheduled work week.

 

b.                                      Doubletime shall be paid for all hours or parts of hours worked on the seventh day ofthe scheduled work week, and between the hours of 7:00 a.m. and 3:00 p.m. onSunday.

 

**Section 10.  On Four-Shift Operation.**

 

1.                                       Whenan employee voluntarily transfers from one shift to another through shiftpreference, upgrading, recall, etc., he/she will not receive premium pay on thebasis of work performed on the sixth (6th) and seventh (7th) day of his/herprevious (old) work schedule.

 

2.                                       Whenan employee is involuntarily transferred due to being bumped, etc., he/she willreceive premium pay for working on the sixth and/or seventh day of his/her oldwork week schedule.

 

3.                                       Anemployee who transfers from the fourth shift of a four-shift schedule to thethird shift of a four-shift schedule, and an employee who transfers from thefourth shift of a four-shift schedule to the third shift of a three-shiftschedule will work on the first day off of his/ her new schedule at straighttime, thus enabling him/ her to have a five-day work week.

 

4.                                       Thissection insures employees on a 4-shift operation will be recognized for thepurpose of payment on his sixth and/or seventh day.

 

29

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| **Type of  Shift Change** | **OLD  SCHEDULE** | **End of  Payroll Week**       | **NEW  SCHEDULE** |     |
|---------------------------|-------------------|--------------------------------|-------------------|----------|
| **Three  Shift**          |              | **To A  Four Shift  Schedule** | ** **        | **Sun.** |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   |
| 1st to 2nd                |              | OFF                            |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 1st to 3rd                |              | OFF                            |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   |
| 1st to 4th                |              | OFF                            |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 7-3 |   | 3-11 |   |
|                      |              |                           |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2nd to 1st                |              | OFF                            |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 2nd to 2nd                |              | OFF                            |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 2nd to 3rd                |              | OFF                            |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | 11-7 |   | 11-7 |   | OFF |   |   |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |
| 2nd to 4th                |              | OFF                            |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 7-3 |   | 3-11 |   |
|                      |              |                           |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3rd to 1st                |              | 11-7                           |              | 11-7     |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | OFF |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 3rd to 2nd                |              | 11-7                           |              | 11-7     |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | OFF |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 3rd to 3rd                |              | 11-7                           |              | 11-7     |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   |
| 3rd to 4th                |              | 11-7                           |              | 11-7     |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | OFF |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 7-3 |   | 3-11 |   |

 

30

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| **Type of  Shift Change** | **OLD  SCHEDULE** |                            | **End of  Payroll Week** |     | **NEW  SCHEDULE** |     |
|---------------------------|-------------------|---------------------------------|--------------------------|----------|-------------------|----------|
| **Four  Shift**           |              | **To A Three  Shift  Schedule** |                     | **Sun.** |              | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   |
| 1st to 2nd                |              | OFF                             |                     | 7-3      |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   |
| 1st to 3rd                |              | OFF                             |                     | 7-3      |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   |
|                      |              |                            |                     |     |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2nd to 1st                |              | OFF                             |                     | OFF      |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 2nd to 2nd                |              | OFF                             |                     | OFF      |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   |
| 2nd to 3rd                |              | OFF                             |                     | OFF      |              | 3-11     |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   |   |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   |
|                      |              |                            |                     |     |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3rd to 1st                |              |                            |                     | 11-7     |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 3rd to 2nd                |              |                            |                     | 11-7     |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   |
| 3rd to 3rd                |              |                            |                     | 11-7     |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   |
|                      |              |                            |                     |     |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4th to 1st                |              | 3-11                            |                     | 3-11     |              | 11-7     |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 4th to 2nd                |              | 3-11                            |                     | 3-11     |              | 11-7     |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | OFF |   |
| 4th to 3rd                |              | 3-11                            |                     | 3-11     |              | 11-7     |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   | OFF |   |

 

31

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| **Type of  Shift Change** | **OLD  SCHEDULE** | **End of  Payroll Week**            | **NEW  SCHEDULE** |     |
|---------------------------|-------------------|-------------------------------------|-------------------|----------|
| **Four  Shift**           |              | **To A  Four Shift  Schedule** |              | **Sun.** |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   | **Mon.** |   | **Tues.** |   | **Wed.** |   | **Thurs.** |   | **Fri.** |   | **Sat.** |   | **Sun.** |   |
| 1st to 2nd                |              | OFF                                 |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 1st to 3rd                |              | OFF                                 |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   |
| 1st to 4th                |              | OFF                                 |              | 7-3      |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   |
|                      |              |                                |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2nd to 1st                |              | OFF                                 |              | OFF      |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 2nd to 3rd                |              | OFF                                 |              | OFF      |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   |
| 2nd to 4th                |              | OFF                                 |              | OFF      |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   |
|                      |              |                                |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3rd to 1st                |              | 11-7                                |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 3rd to 2nd                |              | 11-7                                |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 3rd to 4th                |              | 11-7                                |              | 11-7     |   | OFF |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   |
|                      |              |                                |              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4th to 1st                |              | 3-11                                |              | 3-11     |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | 7-3 |   | OFF |   | OFF |   |
| 4th to 2nd                |              | 3-11                                |              | 3-11     |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | OFF |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | 3-11 |   | OFF |   |
| 4th to 3rd                |              | 3-11                                |              | 3-11     |   | 11-7 |   | 11-7 |   | OFF |   |   |   | 7-3 |   | 3-11 |   | 11-7 |   | 11-7 |   | OFF |   | 11-7 |   | 11-7 |   | 11-7 |   |   |   |

 

32

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**Section 11. **No employee will be penalized by the loss ofworking days in the week immediately prior to a Plant shutdown.

 

**Section 12. **It is agreed to allow cross-shifting ofovertime (double time) opportunity for the production assistants in Cup Grind,Cone Grind, Roll Grind, Assembly and the operators in Heat Treat and Surfaceand O.D. Grind Departments on Sunday afternoons. The overtime opportunity isfor the purpose of allowing P.A.’s to come in and start up equipment so that itis warmed up and ready for production by the start of third shift at thebeginning of the work week. Such overtime (double time) opportunity for startup will be limited to coming in early for a maximum of four (4.0) hours. Theovertime scheduling under this cross-shifting agreement, will be kept withineight (8.0) hours between employees. This cross-shifting applies to all warm-upoperations.

 

Allfour-shift operations will be cross-shifted on Sunday 7:00 am to 3:00 pm.

 

**Section 13. **Master Overtime Roster.

 

TheCompany will post a Master Overtime Roster once a month. Employees desiring towork overtime after the group has declined must sign for overtime in the areathey desire to work.

 

TheCompany will have the right to choose qualified employees when a specific skillis required.

 

Onjobs which do not require extensive training, such as general labor, wrapping,wash and pack cups and dipping cones, the scheduling will be done in seniorityorder across shifts.

 

Ifmore than one employee who is capable of performing the work signs, the seniorperson will be scheduled.

 

Employeesneeded to work will be notified by the end of their shift.

 

Employeesaccepting overtime through this provision will be paid at the rate of pay forthe job they perform.

 

**ARTICLE XX**

 

**Settlement of Differences**

 

**Section 1. **A grievance shall be defined as any disputewhich arises between the Company and the Union over the compliance with orapplication of this Agreement as it pertains to any Bargaining Unit employee,and all such differences shall be settled in the following manner:

 

STEP I.                      Between the employee and his/hersupervisor, or at the request of the employee, between the employee,committeeman and supervisor. If the

 

33

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dispute is notsettled in accordance with an oral discussion between the supervisor, theemployee and/or the committeeman, then the dispute may be reduced to writingand submitted to the respective supervisor. Grievance must be returned to theemployee and his/her committee-man within 48 working hours with a writtenanswer to the dispute. Should the dispute remain unsettled, it may be submittedto Step II within five (5) working days from the date of the written answer.

 

STEPII.                   Onthe first and third Thursdays of each calendar month, Step II cases will beheard by the Step II Committee which shall consist of up to three (3)representatives of management and up to three (3) representatives of the LocalUnit. If the dispute still remains unsettled, it may be appealed by the Unionto the Third Step within seven (7) working days following the hearing in StepII. A hearing in Step III will be scheduled at the earliest convenience of theparties.

 

STEPIII.               TheStep III Committee shall hear all cases which have been unresolved in Step IIand said Committee shall consist of up to four (4) representatives ofmanagement, one of which shall be the Plant Manager, and up to four (4)representatives of the Local Unit. In addition, a representative of theInternational Union may sit in on any third step hearing. In the event that thedispute is not resolved in the third step, the Union may file the saiddifference for arbitration within ten (10) working days after the date of thethird step meeting.

 

Timelimitations in all steps may be waived by mutual agreement between the Unionand the Company.

 

**Section 2.**  If a grievance hereunder is referred toarbitration, the parties will attempt to agree upon an arbitrator. In the eventagreement is not reached within thirty (30) days, the parties will submit ajoint request to the Federal Mediation Service for a panel of arbitrators. If agrievance is submitted to arbitration, the decision of the arbitrator shall befinal and binding on both parties.

 

**Section 3.**  The arbitrator shall first determine thearbitrability of any issue submitted. No issue shall be arbitrable unless saidissue involves the meaning, application of, or compliance with a specific provisionor provisions of this Agreement. The arbitrator shall not add to, subtractfrom, or modify any of the provisions of this Agreement; and shall not reversemanagement’s decision except when in his/her judgement, management has actedwithout just cause. The arbitrator’s award shall in no case be retroactivebeyond thirty (30) days prior to the filing of the written grievance whichconstituted the issue in question.

 

Theproper expenses of the arbitrator and the arbitration proceedings shall beshared equally by the parties.

 

34

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**Section 4.**  All grievances must be filed within thirty(30) working days from the date of their occurrence. Grievances not so filedshall be deemed to have been waived and shall not be raised thereafter.Grievances resolved in either Step I, Step II or Step III above shall beconsidered satisfactorily settled, closed on the record, and shall not bereopened.

 

**Section 5.**  Grievances which shall arise between theUnion and the Company concerning employee discipline shall have priority overall other cases under this Article of the Labor Agreement. In a case involvingsuspension or discharge, the Chairman of the Grievance Committee and the HumanResources Manager will schedule a hearing within one (1) working day ifrequested by the Chairman of the Grievance Committee.

 

**Section 6.**  Answer to grievances unresolved in Steps I,II and III will be given within three (3) working days unless the time isextended by mutual agreement.

 

**Section 7.**  The grievant and a witness may be present atall steps of the grievance procedure.

 

**Section 8.**  By mutual agreement in writing, a grievancemay be initiated in the second or third step of the grievance procedure orsubmitted directly to arbitration.

 

**Section 9.**  The time limitations herein shall notinclude Saturdays, Sundays, holidays and may be extended at any time by mutualagreement in writing by the representatives involved in each step.

 

**Section 10.**  If a grievance is not referred or appealedto the next step within the specified time limit, it shall be consideredsettled on the basis of the Company’s last answer.

 

**Section 11.**  Grievances heard at the 2nd Step will beheard at the following times, dependent upon what shift the grievanceoriginated:

 
| 1st shift - Anytime  during the shift |
|---------------------------------------|
|                                  |
| 2nd shift - 2:00 p.m.  or later       |
|                                  |
| 3rd shift - 7:30 a.m.  or earlier     |

 

**ARTICLE XXI**

 

**Check Off**

 

TheCompany, for those employees who have heretofore or hereafter by writtenauthorization so directed, shall deduct from the first pay of each month theproper Union dues for the previous month, an initiation fee for new members,assessments, and promptly remit same to the International Secretary-Treasurerof the Union.

 

EffectiveJuly 1, 1999, the Company agrees to accept written wage assignmentauthorization of not less than one dollar ($1.00) from employees providing forpayroll deductions from their earnings for United Steelworkers of AmericaPolitical Action Fund (USWA-PAF). The Company shall remit monthly all monies sodeducted to the International Treasurer of the

 

35

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Union. The parties acknowledge that the costs of implementing andadministering the USWA-PAC check-off program would be an obligation of theUnion and that the estimated costs of such implementation and administration ofthe program have been incorporated by the Company in its valuation ofcollective bargaining negotiations settlements.

 

Anywritten authorization submitted is deemed to be an authorization for theCompany to deduct those dues, assessments and initiation fees as set forth inthe Union form as initialed at the date of the signing of the Agreement.

 

TheUnion shall indemnify the Company and hold it harmless against any and allsuits, claims, demands and liabilities that shall arise out of or by reason ofany action that shall be taken by the Company for the purpose of complying withthe foregoing provisions of this Article.

 

**ARTICLE XXII**

 

**Sub-Contracting**

 

Withrespect to production and maintenance work, including tooling which isregularly performed by Bargaining Unit employees, the Company will endeavor toutilize its available equipment and personnel before sub-contracting this work.Where the Company determines the need for sub-contracting, the reason shall bediscussed with the Union prior to such sub-contracting.

 

**MEMORANDUM OF AGREEMENT**

** **

Withrespect to Green operations, if the Company elects to sub-contract such work,the Company will establish its own Shipping Department within twelve (12) monthsand transfer production of L&S rollers to Tyson by August, 2002 and addmilitary packing jobs, which should total 8-12 jobs. Over the next twenty-four(24) months, the out-sourcing will affect jobs in Green Department, ColdForming, and Tool Room, for a total of twenty-six (26) jobs. This memorandum isagreed to on a non-precedent setting basis and in no way affects either party’sposition concerning sub-contracting under the contract. This memorandum willnot be used in any grievance or arbitration proceeding, unless it involves adispute concerning this memorandum.

 

**ARTICLE XXIII**

 

**Termination and Notice**

 

**Section 1.**  This Agreement shall take effect as of 12:01a.m. March 30, 2002, and shall continue in full force and effect until 12:00midnight, March 25, 2005.

 

**Section 2.**  Termination.

 

a.                             Ifeither party shall desire to terminate this Agreement, such party shall givewritten notice to that effect to the other party hereto not less than sixty(60)

 

36

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calendar daysprior to March 25, 2005. Negotiations shall begin within ten (10) dayssubsequent to the receipt of the notice.

 

b.                            Suchnotice having been given, unless the parties hereto agree otherwise in writing,this Agreement shall terminate 12:01 a.m., March 26, 2005.

 

**Section 3.**  Notice. The written notices provided forunder this Agreement shall be sent by registered mail. If sent by the Company,the notice shall be addressed to the Union at its principal office for thisdistrict; and if sent by the Union, the notice shall be addressed to theCompany at Glasgow, Kentucky, unless either party shall advise (by registeredmail) of any change of address to which notices should be sent.

 

INWITNESS WHEREOF, the parties hereto have caused this Agreement to be executedby their duly authorized representatives.

 
| **FOR THE COMPANY:**                                           |
|----------------------------------------------------------------|
| **TYSON BEARING COMPANY, INC.**                                |
|                                                           |
| George A. Sabochick,  Director of Operations                   |
| Linda S. Hester, Human  Resources Manager                      |
| Billy Joe Martin,  Factory Manager                             |
|                                                           |
|                                                           |
| **FOR THE UNION:**                                             |
| **UNITED STEELWORKERS OF AMERICA**                             |
| **AFL-CIO, CLC - On Behalf of Its**                            |
| **LOCAL UNION #7461-01**                                       |
|                                                           |
|                                                           |
| Leo W. Gerard,  International President                        |
| James English,  International Secretary-Treasurer              |
| Andrew V. Palm,  International Vice President (Administration) |
| Leon Lynch, International  Vice President (Human Affairs)      |
| Ernest R. Thompson,  Director, District 8                      |
| Frank Pittman,  Sub-District Director                          |
| Joe Villines, Staff  Representative                            |
|                                                           |
|                                                           |
| NEGOTIATING COMMITTEE                                          |
|                                                           |
| Stephen M. Williams,  President, Local 7461                    |
| Bobby R. Deckard, Unit  President, Local 7461-01               |
| Roger D. Judd,  Negotiating Committee                          |
| James M. Martin,  Negotiating Committee                        |
| Thomas N. Samson,  Negotiating Committee                       |

 

37

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**APPENDIX A**

 

(Employees HiredPrior to March 31, 1996)

 
| **Progression  Steps Labor** |   | **Full Job  Grade** |   | **Rate** |   |
|------------------------------|--------|---------------------|--------|----------|--------|
| **1st**                      |   | **2nd**             |   |     |   |   |   |
|                         |   |                |   | 1        |   | $ | 2.20 |   |
|                         |   |                |   | 2        |   | 2.20 |   |
| $                            | 2.17   |                |   |     | 3      |   | 2.27 |   |
| 2.24                         |   |                |   | 4        |   | 2.34 |   |
| 2.36                         |   |                |   | 5        |   | 2.47 |   |
| 2.48                         |   |                |   | 6        |   | 2.60 |   |
| 2.51                         |   | 2.63                |   | 7        |   | 2.75 |   |
| 2.66                         |   | 2.78                |   | 8        |   | 2.91 |   |
| 2.80                         |   | 2.93                |   | 9        |   | 3.07 |   |
| 2.97                         |   | 3.11                |   | 10       |   | 3.26 |   |
| 3.24                         |   | 3.39                |   | 11       |   | 3.55 |   |
| 3.51                         |   | 3.67                |   | 12       |   |   |   |
|                              |        |                     |        |          |        |  |  |  |  |

 

Effective6/01/02, in addition to the above scale, there will be add-ons of $12.10, perhour, for labor grades 1 through 9; $12.20, per hour, for labor grade 10;$12.25, per hour, for labor grade 11; and $12.30, per hour, for labor grade 12.

 

Effective4/01/03, in addition to the above scale, there will be add-ons of $12.40, perhour, for labor grades 1 through 9; $12.50, per hour, for labor grade 10;$12.55, per hour, for labor grade 11; and $12.60, per hour, for labor grade 12.

 

Effective4/01/04, in addition to the above scale, there will be add-ons of $12.70, perhour, for labor grades 1 through 9; $12.80, per hour, for labor grade 10;$12.85, per hour, for labor grade 11; and $12.90, per hour, for labor grade 12.

 

**PROGRESSION PERIODS PER STEP**

** **
| Labor Grades 3-4  |   | 20 Working Days |
|-------------------|--------|-----------------|
| Labor Grades 5-8  |   | 40 Working Days |
| Labor Grades 9-12 |   | 60 Working Days |

 

38

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**WAGE SCHEDULE**

**GLASGOW PLANT**

**(Base Rate Plus Add-on)**

 

(Employees HiredPrior to March 31, 1996)

 
| **Labor Grade** |   | **Effective  6/01/02** |   | **Effective  4/01/03** |   | **Effective  4/01/04** |   |
|-----------------|--------|------------------------|--------|------------------------|--------|------------------------|--------|
|            |   |                   |   |                   |   |                   |   |
| 1               |   | $                      | 14.30  |                   | $      | 14.60                  |   | $ | 14.90 |   |
| 2               |   | 14.30                  |   | 14.60                  |   | 14.90                  |   |
| 3               |   | 14.37                  |   | 14.67                  |   | 14.97                  |   |
| 4               |   | 14.44                  |   | 14.74                  |   | 15.04                  |   |
| 5               |   | 14.57                  |   | 14.87                  |   | 15.17                  |   |
| 6               |   | 14.70                  |   | 15.00                  |   | 15.30                  |   |
| 7               |   | 14.85                  |   | 15.15                  |   | 15.45                  |   |
| 8               |   | 15.01                  |   | 15.31                  |   | 15.61                  |   |
| 9               |   | 15.17                  |   | 15.47                  |   | 15.77                  |   |
| 10              |   | 15.46                  |   | 15.76                  |   | 16.06                  |   |
| 11              |   | 15.80                  |   | 16.10                  |   | 16.40                  |   |
| 12              |   | 16.14                  |   | 16.44                  |   | 16.74                  |   |
|                 |        |                        |        |                        |        |                        |        |  |  |  |

 

39

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(Employees HiredAfter March 31, 1996)

 
| **Progression  Steps** |   | **Labor  Grade** |   | **Full Job  Rate** |   |
|------------------------|--------|------------------|--------|--------------------|--------|
| **1st**                |   | **2nd**          |   |               |   |   |   |
|                   |   |             |   | 1                  |   | $ | 2.20 |   |
|                   |   |             |   | 2                  |   | 2.20 |   |
| $                      | 2.17   |             |   |               | 3      |   | 2.27 |   |
| 2.24                   |   |             |   | 4                  |   | 2.34 |   |
| 2.36                   |   |             |   | 5                  |   | 2.47 |   |
| 2.48                   |   |             |   | 6                  |   | 2.60 |   |
| 2.51                   |   | 2.63             |   | 7                  |   | 2.75 |   |
| 2.66                   |   | 2.78             |   | 8                  |   | 2.91 |   |
| 2.80                   |   | 2.93             |   | 9                  |   | 3.07 |   |
| 2.97                   |   | 3.11             |   | 10                 |   | 3.26 |   |
| 3.24                   |   | 3.39             |   | 11                 |   | 3.55 |   |
| 3.51                   |   | 3.67             |   | 12                 |   | 3.84 |   |
|                        |        |                  |        |                    |        |  |  |  |  |

 

Effective6/01/02, in addition to the above scale, there will be add-ons of $9.10, perhour, for labor grades 1 through 9; $9.20, per hour, for labor grade 10; $9.25,per hour, for labor grade 11; and $9.30, per hour, for labor grade 12.

 

Effective4/01/03, in addition to the above scale, there will be add-ons of $9.40, perhour, for labor grades 1 through 9; $9.50, per hour, for labor grade 10; $9.55,per hour, for labor grade 11; and $9.60, per hour, for labor grade 12.

 

Effective4/01/04, in addition to the above scale, there will be add-ons of $9.70, perhour, for labor grades 1 through 9; $9.80, per hour, for labor grade 10; $9.85,per hour, for labor grade 11; and $9.90, per hour, for labor grade 12.

 

**PROGRESSION PERIODS PER STEP**

** **
| Labor Grades 3-4  |   | 20 Working Days |
|-------------------|--------|-----------------|
| Labor Grades 5-8  |   | 40 Working Days |
| Labor Grades 9-12 |   | 60 Working Days |

 

40

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**WAGE SCHEDULE**

**GLASGOW PLANT**

**(Base Rate Plus Add-on)**

 

(Employees HiredAfter March 31, 1996)

 
| **Labor  Grade** |   | **Effective  6/01/02** |   | **Effective  4/01/03** |   | **Effective  4/01/04** |   |
|------------------|--------|------------------------|--------|------------------------|--------|------------------------|--------|
|             |   |                   |   |                   |   |                   |   |
| 1                |   | $                      | 11.30  |                   | $      | 11.60                  |   | $ | 11.90 |   |
| 2                |   | 11.30                  |   | 11.60                  |   | 11.90                  |   |
| 3                |   | 11.37                  |   | 11.67                  |   | 11.97                  |   |
| 4                |   | 11.44                  |   | 11.74                  |   | 12.04                  |   |
| 5                |   | 11.57                  |   | 11.87                  |   | 12.17                  |   |
| 6                |   | 11.70                  |   | 12.00                  |   | 12.30                  |   |
| 7                |   | 11.85                  |   | 12.15                  |   | 12.45                  |   |
| 8                |   | 12.01                  |   | 12.31                  |   | 12.61                  |   |
| 9                |   | 12.17                  |   | 12.47                  |   | 12.77                  |   |
| 10               |   | 12.46                  |   | 12.76                  |   | 13.06                  |   |
| 11               |   | 12.80                  |   | 13.10                  |   | 13.40                  |   |
| 12               |   | 13.14                  |   | 13.44                  |   | 13.74                  |   |
|                  |        |                        |        |                        |        |                        |        |  |  |  |

 

41

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**APPENDIX B**

**Seniority Groups**

 
| **Group  No.** |   | **Group Name**      |   | **Job No.** |   | **Job Title**                        |
|----------------|--------|---------------------|--------|-------------|--------|--------------------------------------|
| 1              |   | Assembly            |   | 0431        |   | Assembler                            |
|           |   |                |   | 0515        |   | Finish Stores  Attendant-Assembly    |
|           |   |                |   | 0719        |   | Assembly Utility Person              |
|           |   |                |   |        |   |                                 |
| 2              |   | General             |   | 0200        |   | General Laborer                      |
|           |   |                |   | 0411        |   | Utility Laborer                      |
|           |   |                |   |        |   |                                 |
| 3              |   | Shipping/ Receiving |   | 0509        |   | Material Handler-Mfg.                |
|           |   |                |   | 0510        |   | Receiver/Shipper                     |
|           |   |                |   | 0608        |   | P.A. Stores-Receiving                |
|           |   |                |   | 0813        |   | P.A. Receiving/Shipping              |
|           |   |                |   |        |   |                                 |
| 4              |   | Green               |   | 0406        |   | SU&O Marking  Machine            |
|           |   |                |   | 0430        |   | SU&O Cold Saws                   |
|           |   |                |   | 0517        |   | SU&O Saws &  Stampers        |
|           |   |                |   | 0606        |   | Screw Machining  Operator            |
|           |   |                |   | 0621        |   | Green Coolant Service  Operator      |
|           |   |                |   | 0711        |   | Tool Planning &  Control P.A.    |
|           |   |                |   | 0814        |   | SU&O Automatic  Screw Machine    |
|           |   |                |   | 0815        |   | SU&O CNC Lathes                  |
|           |   |                |   | 0902        |   | P.A. Machining                       |
|           |   |                |   | 0908        |   | SU&O CNC Lathes                  |
|           |   |                |   | 1104        |   | P.A. Machining                       |
|           |   |                |   |        |   |                                 |
| 5              |   | Heat Treat          |   | 0605        |   | Heat Treat Operator                  |
|           |   |                |   | 0612        |   | Tool Hardener                        |
|           |   |                |   | 0721        |   | Heat Treat Operator                  |
|           |   |                |   | 0722        |   | Tool Hardener                        |
|           |   |                |   | 0805        |   | Heat Treat P.A.                      |
|           |   |                |   |        |   |                                 |
| 6              |   | Inspection          |   | 0300        |   | Bench Inspector                      |
|           |   |                |   | 0511        |   | Quality  Inspector/Material Handler  |
|           |   |                |   | 0603        |   | Tool & Gage  Inspector-III       |
|           |   |                |   | 0720        |   | Metallurgical  Laboratory Technician |
|           |   |                |   | 0802        |   | Quality Auditor                      |
|           |   |                |   | 0803        |   | Tool & Gage  Inspector-II        |
|           |   |                |   | 0808        |   | Utility Inspector                    |
|           |   |                |   | 1003        |   | Tool & Gage  Inspector-I         |
|           |   |                |   | 1103        |   | Master Tool & Gage  Inspector    |

 

42

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**APPENDIXB (Continued)**

**SeniorityGroups**

 
|   |   |                      |   |   |   |                                            |
|--------|--------|---------------------------|--------|--------|--------|-------------------------------------------------|
| 7      |   | Maintenance               |   | APPE   |   | Apprentice  Electronic/Electrician              |
|   |   |                      |   | APPM   |   | Apprentice Machine  Repair/Maintenance Mechanic |
|   |   |                      |   | 0704   |   | Machine Repair  Maint.Mechanic-III              |
|   |   |                      |   | 0904   |   | Machine  Repair/Maint.Mechanic-II               |
|   |   |                      |   | 1100   |   | Machine  Repair/Maint.Mechanic-I                |
|   |   |                      |   | 1203   |   | Electronic/Electrician                          |
|   |   |                      |   |   |   |                                            |
| 8      |   | Tool Room                 |   | APPT   |   | Apprentice Tool, Die  & Gage Maker          |
|   |   |                      |   | 0401   |   | Tool Room Machine  Operator-III                 |
|   |   |                      |   | 0402   |   | Tool & Cutter  Grinder-II                   |
|   |   |                      |   | 0501   |   | Tool Room Machine  Operator-II                  |
|   |   |                      |   | 0602   |   | Tool & Cutter  Grinder-I                    |
|   |   |                      |   | 0701   |   | Tool Room Machine  Operator-I                   |
|   |   |                      |   | 0804   |   | Machinist-II                                    |
|   |   |                      |   | 1004   |   | Machinist-I                                     |
|   |   |                      |   | 1102   |   | Tool, Die & Gage  Maker-II                  |
|   |   |                      |   | 1202   |   | Tool, Die & Gage  Maker-I                   |
|   |   |                      |   |   |   |                                            |
| 9      |   | Press                     |   | 0420   |   | O/O Single-Stage Press                          |
|   |   |                      |   | 0616   |   | SU&O Phosphating                            |
|   |   |                      |   | 0620   |   | SU&O Single-Stage  Press                    |
|   |   |                      |   | 0712   |   | Verson Line Operator                            |
|   |   |                      |   | 0716   |   | SU&O Cold Heading  Machines                 |
|   |   |                      |   | 0723   |   | Crib  Attendant-Cage/Verson                     |
|   |   |                      |   | 0903   |   | P.A. Verson Line                                |
|   |   |                      |   |   |   |                                            |
| 10     |   | Roll Grind                |   | 0503   |   | Grinding Machine  Operator-Roll                 |
|   |   |                      |   | 0711   |   | Tool Planning &  Control P.A.               |
|   |   |                      |   | 0901   |   | Line Mechanic-Roll                              |
|   |   |                      |   | 0905   |   | Tool Repair &  Control P.A.                 |
|   |   |                      |   |   |   |                                            |
| 11     |   | Surface & O.D.  Grind |   | 0611   |   | SU&O Surface/O.D.  Grind                    |
|   |   |                      |   | 0811   |   | P.A. Surface & O.D.                         |

 

43

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** **

**APPENDIXB (continued)**

**SeniorityGroups**

 
|   |   |       |   |   |   |                                               |
|--------|--------|------------|--------|--------|--------|----------------------------------------------------|
|   |   |       |   |   |   |                                               |
| 12     |   | Cup Grind  |   | 0415   |   | Wash & Pack Cups                               |
|   |   |       |   | 0504   |   | Grinding Machine  Operator                         |
|   |   |       |   | 0711   |   | Tool Planning &  Control  P.A., Cup & Cone |
|   |   |       |   | 0901   |   | Line Mechanic-Cup                                  |
|   |   |       |   | 0906   |   | Line Mechanic-Grinding  A-  Cup & Cone         |
|   |   |       |   |   |   |                                               |
| 13     |   | Cone Grind |   | 0504   |   | Grinding Machine  Operator                         |
|   |   |       |   | 0711   |   | Tool Planning &  Control P.A.,  Cup & Cone |
|   |   |       |   | 0901   |   | Line Mechanic-Cone                                 |
|   |   |       |   | 0906   |   | Line Mechanic-Grinding  A-  Cup & Cone         |

 

Wash& Pack Cups, #0415, should be removed from Group #3, Shipping/Receiving,and moved into Group #12, Cup Grind. It is understood that, as a result of thismove, Classification #0415 will have bumping rights back to Group #3 and theremaining classifications #0509, 0608, and 0813, will have bumping rights toGroup #12 (classification 0415).

 

**MEMO OF UNDERSTANDINGPreferential Hiring**

 

Subjectto the terms of Article XVIII, Section 3., employees who are on layoff from theTRB Division as of the date of sale of TRB, will be afforded preferentialhiring consideration in the HBU Division prior to hiring new employees from theoutside.  If laid-off TRB employeesshould accept positions in the HBU Division, said employees shall forfeit theirrecall rights to TRB and will only carry over whatever service they had withSKF at the time of the sale of TRB.

 

44

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**[GRAPHICS - CALENDAR FOR 2002]**

 

45

----

 

**[GRAPHICS - CALENDAR FOR 2003]**

 

46

----

 

**[GRAPHICS - CALENDAR FOR 2004]**

 

47

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**[GRAPHICS - CALENDAR FOR 2005]**

 

48

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**REPORT-OFF PROCEDURE**

 

If you are going to be off or late for work, call 670-0099 at least two(2) hours before start of shift.  Givethe following information:

 

System will automatically record date and time of each call.

 

1.                                       Yourname.

 

2.                                       Yourclock number.

 

3.                                       Yourforeman’s name.

 

4.                                       Thereason for your absence or tardiness, e.g. sickness, death of relative, carbreakdown, etc..

 

5.                                       Whenyou will return to work.

 

If youcannot reach the report-off number, you are expected to call the regular Plantnumber, 670-0000, and report off to your foreman.

 

**HUMAN RESOURCES DEPARTMENT**

 

49

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**MEMORANDUM OF AGREEMENT**

 

ThisAgreement is between TYSON BEARING COMPANY, INC., a wholly-owned subsidiary ofRoller Bearing Company of America, Inc. (hereinafter “the Company”) and theUNITED STEELWORKERS OF AMERICA, AFL-CIO, on behalf of itself and the members ofits LOCAL UNION No. 7461 (hereinafter, individually and jointly, “the Union”).

 

TheCompany is about to purchase a portion (but not all) of the assets of a plantowned and operated by SKF USA INC. (hereinafter “SKF”) at Glasgow, Kentucky(hereinafter “the Glasgow plant”).  Itis anticipated that the asset purchase transaction will take place on a date onor before June 15, 1999 (hereinafter “the closing date”).  It is anticipated that the Company willoperate in a portion of the Glasgow plant (hereinafter referred to as “theTYSON Glasgow facility”) and that SKF will continue to operate in the remainderof the Glasgow plant.

 

Currently,the Union and SKF are parties to a collective bargaining agreement covering abargaining unit of employees at the Glasgow plant (hereinafter “the laborcontract”).  The labor contract wentinto effect on March 27, 1999, and, by its terms, is scheduled to terminate onMarch 29, 2002.

 

TheCompany has decided to recognize the Union as the exclusive bargainingrepresentative of a bargaining unit consisting of certain persons it willemploy in the TYSON Glasgow facility (hereinafter the “TYSON Bargaining Unit”)on and after the closing date and, at such time, to adopt the labor contract asapplicable to such TYSON Bargaining Unit, subject to this Memorandum ofAgreement.  The Union, in turn, hasagreed that the Company will replace SKF as the employer of the persons theUnion will represent in the TYSON Bargaining Unit under the labor contract onand after the closing date.

 

Theparties, however, have agreed to certain modifications in the labor contract,effective on the closing date. The purpose of this memorandum is to record theparties’ overall agreement, as follows:

 

I.                                         Recognition

 

The Company agrees thaton the closing date it will recognize the Union as the exclusive bargainingrepresentative of the TYSON Bargaining Unit at the Glasgow plant and will honorthe terms of the labor contract, as modified herein.  The Union agrees to recognize the Company as the employer of theTYSON Bargaining Unit under the terms of the labor contract with the rights ofmanagement spelled out therein.  TheCompany agrees to continue all benefits in the labor contract on behalf of theTYSON Bargaining Unit except those that pertain exclusively to the HUBoperation at the Glasgow plant which will continue to be operated by SKF.

 

II.                                     Pension

 

a)                                      Itis mutually agreed that the Pension Plan referred to in Article XV of the laborcontract (hereinafter “the SKF Pension Plan”) will be replaced, effective onthe closing date, by an equivalent plan sponsored by the Company.  The wording of

 

50

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the plan document andArticle XV will be subject to further discussions between the parties.

 

b)                                     Itis contemplated, however, that certain members of the bargaining unit,currently employed by SKF, will retire under the SKF Pension Plan, prior to theclosing date, pursuant to the 30-Year Retirement without actuarial reductionoption (including these employees who are eligible to age into such optionpursuant to the 1999 amendments to the labor contract) described in aMemorandum of Understanding between SKF and the Union or pursuant to an EarlyRetirement option with actuarial reduction, based on age 55 years or older andat least 10 years of service, and will thereafter confirm to the Company thatthey are available for immediate employment in a TYSON Bargaining Unit positionat the Tyson Glasgow facility after the closing date.  The parties have agreed that such retirees (hereinafter“retiree-applicants”) will be employed by the Company subject to certain termsand conditions that differ from the terms and conditions generally applicableunder the labor contract.

 

III.                                 Retiree-Applicants

 

Retiree-applicantsare subject to the following conditions:

 

a)                                      Theymust confirm their availability for employment by the Company not later thanJune 15, 1999 at 12:00 Noon.

 

b)                                     TheCompany agrees to employ each retiree-applicant who satisfies the conditionsspelled out in subparagraph (a) above and to assign such retiree-applicants,commencing on the closing date, to a position which is the same as the positionhe/she held with SKF at the time he/she applied for retirement.

 

c)                                      Retiree-applicantswho accept the Company’s offer will be employed under the terms of the laborcontract, except as follows:

 

1.                                       Theyshall not be subject to typical preemployment processing nor shall they besubject to a probationary period, but they shall be considered to be anemployee hired after March 31, 1996, for purposes of Article XIV, Section 3.,of the labor contract.

 

2.                                       Forpurposes of insurance benefits under Article XV, Section 4., they will betreated as employees hired prior to March 27, 1993.

 

3.                                       Theirrights and obligations pertaining to reduction in force, recall, transfers,filling of vacancies and other such non-economic/non-financial provisions,shall not be affected by Article XVIII, Section 3., of the labor contract.

 

4.                                       Theyshall be eligible for two (2) weeks of vacation benefits per year, inaccordance with Article XVII of the labor contract, and they shall not be

 

51

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eligible for any increasein annual vacation benefits while employed by the Company except as set forthin subparagraph 7. below. This provision shall be first effective for thevacation entitlements payable in the year 2000.

 

5.                                       Theymay elect to forego medical insurance coverage as described in Article XV,Section 4. of the labor contract, in which event the Company will make anadditional monthly payment to them, as follows:

 
| - Single                              |   | - $150.00, per  month |
|---------------------------------------|--------|-----------------------|
| - Married with or  without dependents |   | - $250.00, per  month |

 

Such monthly payments,less deductions required by law, will remain in effect unchanged while theiremployment continues, provided that, a change in status (i.e. from single tomarried or vice versa) will result in a change in the monthly amount. Adecision to forego medical insurance coverage is not irrevocable, but theemployee’s ability to resume coverage at a later date is subject to the termsof the policy and the determination of the carrier.

 

6.                                       Theclosing date shall be their first day of benefit service under the pension planto be sponsored by the Company as described in Paragraph II(a) above.

 

7.                                       (a)                                  Inthe event that, during any fiscal year which occurs during the term of thelabor contract, the Company’s total production cost at the Tyson Glasgowfacility exceeds $40 million, the following shall occur prospectively forretiree-applicants who are still active employees of the Company at thebeginning of the succeeding fiscal year:

 

•                                          Theyshall have their wage rates increased by $1.50, per hour.

 

•                                          Theyshall have their annual vacation entitlement increased by one week.

 

In the event that duringany such fiscal year, the Company’s total production cost at the Tyson Glasgowfacility exceeds $50 million, the prospective enhancement of wage rates andvacation entitlement shall be the following instead:

 

•                                          Wagerates shall be increased by $3.00 per hour.

 

•                                          Vacationeligibility under Article XVII, Section 2., of the labor contract shall bedetermined by the employees’ full years of service, notwithstanding the factthat they retired from SKF and were rehired by the Company as hereinbeforeprovided.

 

52

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(b)                                 Itis mutually understood that this paragraph 7. shall not operate so as toincrease the wage rates of retiree-applicants by more than $3.00 per hour inthe aggregate during the term of the labor contract nor shall it operate toincrease the vacation entitlement of retiree-applicants to more than four (4)weeks in any year of the labor contract.

 

INWITNESS WHEREOF, the Company and the Union have executed this Agreement bytheir duly authorized representatives, this 10th day of June, 1999.

 
| TYSON BEARING | UNITED STEELWORKERS  |                 |
|---------------|----------------------|----------------------|
| COMPANY, INC. | OF AMERICA, AFL-CIO  |                 |
|          |                 |                 |
| By:           | Michael S. Gostomski |                 | By: | Joe Villines, |   |
|          |                 | Staff Representative |
|          |                 | Gary S. Bartley      |
|          |                 | Twyman K. Appleby    |
|          |                 | Dale Wright          |
|               |                      |                      |  |  |  |  |

 

53

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**MEMORANDUMOF UNDERSTANDING**

 

Thisagreement is between TYSON BEARING COMPANY, INC., a wholly-owned subsidiary ofRoller Bearing Company of America, Inc. (hereinafter “the Company”) and theUNITED STEELWORKERS OF AMERICA, AFL-CIO, on behalf of itself and the members ofits LOCAL UNION NO. 7461 (hereinafter, individually and jointly, “the Union”).

 

Theparties have decided that certain eligible employees should have the option toforego group medical insurance benefits under Article XV, section 4, of the1999-2002 collective bargaining agreement (hereinafter “the active employees’plan”), in return for a monthly cash payment by the Company. The Companyrepresents that the coverage an electing eligible employee will receive underthis Agreement and the SKF USA, INC. plan will be at least equivalent to thecoverage he/she would receive under the active employees’ plan, and in theevent some disparity occurs, the Company will take the steps necessary toeliminate the difference. The following additional conditions shall apply:

 

1.                                       Suchoption shall be entirely voluntary on the employee’s part.

 

2.                                       Anemployee shall be eligible to exercise such option if he/she is a“retiree-applicant” within the meaning of the June, 1999 Memorandum ofAgreement between the parties and is thereby eligible for coverage under theSKF USA, INC. group medical insurance plan, which includes transition to aMedicare supplement plan when the employee or dependent becomesMedicare-eligible.

 

3.                                       Inorder to exercise such option, an eligible employee must voluntarily executethe written waiver of insurance specified under the active employees’ plan.

 

4.                                       Aneligible employee who voluntarily executes the written waiver of insuranceshall receive additional monthly salary in the following amounts, lessdeductions required by law:

 
| - Single                          |   | $100.00 per month |
|-----------------------------------|--------|-------------------|
| - Dependents,                     |   |              |
| married and/or  eligible children |   | $200.00 per month |

 

5.                                       Suchmonthly payments will remain in effect unchanged while the electing employeecontinues to be employed by the Company, provided that, a change in status(e.g. from single to married or vice versa) will result in a change in themonthly amount.

 

6.                                       Adecision to forego Company-paid group medical insurance coverage is notirrevocable. However, the employee’s ability to resume coverage at a later dateis subject to the terms of the policy, the determination of the carrier andapplicable provisions of controlling State or Federal law.

 

7.                                       Anemployee who exercises such option shall remain eligible for Company-paidprescription drug and dental insurance coverage under Article XV, section 4, ofthe 1999-2002 collective bargaining agreement.

 

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8.                                       Atthe time an employee who exercises such option subsequently terminates his/heremployment with the Company, the Company will pay to him/her, in a lump sum, anamount equal to the aggregate cost of the expenses covered by the SKF USA,INC.  Major Medical lifetime maximumduring the period of time that such option to forego active employees’ plancoverage was in effect.  The Companywill at the same time also pay to such employee an additional amount necessaryto cover the employee’s federal and/or state income tax liability, if any, onsuch lump sum payment.  The employee isrequired to submit documentation acceptable to the Company indicating theamount of covered medical expenses which have been charged to such lifetimemaximum.

 

9.                                       Inaddition, at any time an employee who exercises such option incurs coveredmedical expenses which exceed the SKF USA, INC. Major Medical lifetime maximumwhile such option is in effect, the Company will pay to the employee, in a lumpsum, an amount equal to the aggregate cost of such excess covered expenses,plus an additional amount necessary to cover the employee’s federal and/orstate income tax liability, if any, on such lump sum payment. The employee isrequired to submit documentation acceptable to the Company regarding suchexpenses.

 

INWITNESS WHEREOF, the Company and the Union have executed this Agreement this 29day of June, 2000.

 
| TYSON BEARING  COMPANY, INC. | UNITED STEELWORKERS  OF AMERICA, AFL-CIO |                |
|------------------------------|------------------------------------------|---------------------|
|                         |                                     |                |
| By                           | E. P. Trouteaud                          |                | By | Joe Villines |   |
|                         |                                     | Bobby R. Deckard    |
|                         |                                     | Charles Wayne Eaton |
|                              |                                          |                     |  |  |  |  |

 

**MEMORANDUMOF AGREEMENT**

 

TheCompany agrees to restore one (1) week of vacation effective June 1, 2002 tothe Retiree-applicants (per Memorandum of Agreement dated June 10,1999).

 

Inaddition, those Retiree-applicants subject to the Memorandum of Agreement datedJune 10, 1999, who are not receiving full pension from SKF will receive anadditional $1.00, per hour, effective June 1, 2002; another $1.00, per hour,effective April 1, 2003; and another $1.00, per hour, effective April 1, 2004.

 

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