**Exhibit10.11**

 

 

**AGREEMENT**

**between**

**ROLLER BEARING COMPANY OF AMERICA**

**and**

**INTERNATIONAL UNION U.A.W.**

**LOCAL 502**

 

***July 1, 2001***

 

 

**ARTICLE 1**

**PARTIESTO THE AGREEMENT**

 

This Agreement is entered into between ROLLER BEARINGCOMPANY OF AMERICA (“RBC” or the “Company” or the “Employer”) and theINTERNATIONAL UNION U.A.W.  and itsLocal 502 (the “Union”).

 

**ARTICLE 2**

**PHILOSOPHYSTATEMENT**

 

This Agreement recognizes the need for a new approach toUnion/Management relations and the more effective use of human resources in themanufacture of bearings worldwide.  Itfurther recognizes the competitiveness in the bearing industry and thepotential for increased global competitive pressures with our current andfuture customers.  Both partiesrecognize the need to develop and maintain an atmosphere of cooperative problemsolving to accomplish our mutual objectives. We understand that our job security depends upon our success in makingquality bearings, in a cost-effective manner, and in satisfying our customerexpectations and commitments.

 

We believe that people want to be involved in decisions that affectthem, care about their jobs and each other, take pride in themselves and intheir contributions and want to share in the success of their efforts.

 

Making progress toward these mutually agreed upon goals will require arelationship of mutual respect, open communication, shared success, mutual aid,innovative problem solving, and shared decision-making.  The parties agree that in order for theUnion to effectively represent its members, the Union must have a role in thedecision-making process that affects its members.  It is the intent of the UAW and RBC to create a workplace thatrecognizes the need for people to be treated with respect and dignity andrecognizes that collective bargaining can be an essential and constructiveforce in our plant.  All parties in thisAgreement will strive to make the West Trenton plant of RBC the best of itskind in the marketplace; making the highest quality product; a cost effective,profitable operation; a coveted place to work, and a responsible member of thecommunity.

 

It is in this renewed spirit of mutual respect and recognition of eachother’s stakes and equities that this Agreement is entered into and agreedupon.

 

**ARTICLE 3**

**UNIONRECOGNITION**

 

The Company recognizes the Union as the exclusivecollective bargaining agent for all the Company’s production and maintenanceemployees at its plant in West Trenton, New Jersey, in respect to rates of pay,wages, hours of employment and other conditions of employment, excluding,however, office employees, supervisors, plant protection employees, laboratoryemployees, and time study personnel, pursuant and subject to the provisions ofthe Labor-Management Relations Act-1947 and amendments thereto.

 

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**ARTICLE 4**

**UNIONSECURITY AND CHECK-OFF**

 

To the extent permitted by law, all bargaining unitmembers shall be required, as a condition of employment, to become and remainmembers in good standing of the Union on and after the thirtieth (30th) dayfollowing the beginning of their employment or the effective date of thisAgreement, whichever is the later, to the extent of paying an initiation feeand membership dues specified by the Union. No employee shall be discharged by the Company for failure to maintaingood standing in the Union until such employee has received a written noticefrom the Union that he is not in good standing, and has at least seven (7) daysthereafter in which to put himself in good standing.  For the purposes of this Article, “good standing with the Union”means that the employee’s dues for any month must be tendered by the last dayof the month following such month.

 

RBC will provide for check-off of union dues andinitiation fees on behalf of employees who request such a service in accordancewith prevailing law.  The Union shallindemnify and save RBC harmless with respect to any claims or expenses arisingout of any action taken as or not taken by RBC for the purpose of complying withthis Article.

 

**ARTICLE 5**

**NON-DISCRIMINATION**

 

The philosophy and mission of RBC are designed to bein full and complete compliance with the legal and moral principles of equalopportunity in employment.  Accordingly,the Company and the Union pledge, on behalf of themselves, as well as theirofficers, members and representatives to treat all persons equally withoutregard to their race, color, religion, age, sex, national origin, disability,or veteran’s status.  Although the term“he” is used throughout this Agreement, it is used to represent both male andfemale employees and is not intended to be discriminatory or exclusive in anyway, but rather to simplify the language for understanding.

 

The Company agrees that neither it nor any of itsrepresentatives will intimidate, coerce, interfere with or discriminate againstany employee because of proper activity on behalf of the Union.  The Union agrees that it nor any of itsofficers or members will threaten, intimidate, coerce or interfere in anymanner with any employee.

 

**ARTICLE 6**

**STRUCTURE AND DECISION-MAKING PROCESS**

 

The intent of the partiesis to create an evolutionary process towards a goal in which employees will bepart of the decision-making process with respect to producing to schedule,producing a quality product, performing to budget, housekeeping, health, safety, environmental conformance,maintenance of equipment, material and inventory control, training, jobassignment, repairs, scrap control, and scheduling time off.

.

*WORKGROUP MEMBER:*

The individual RBCemployee.

 

*WORKGROUP:*

An integrated group ofnot more than 20 Work Group Members with a common manufacturing and supportpurpose related to a product or products.

 

The Work Group will havethe responsibility and authority to produce quality products to schedule atcompetitive costs.  It will haveresponsibility for both direct and indirect work and, as such, will holdmeetings, obtain supplies, keep records, seek resources as needed, and beresponsible for job preparation and attainment of its own  materials and supplies.  It will constantly seek improvement inquality, cost, and the work environment. The Work Group will also be responsible for the planning and schedulingof the work and communications within and outside the group.

 

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*WORKGROUP REPRESENTATIVE:*

An employee elected bythe Work Group to participate with management in coordinating theadministrative functions of the Work Group and report at least monthly on WorkGroup progress to the Plant Council. The Plant Council may recall a Work Group Representative upon petitionof at least two-thirds of the members of the Work Group.

 

*WORKGROUP SUPERVISOR:*

A member of managementwho will coordinate the activities of the Work Group.  In addition, Work Group Supervisors will be responsible foremployment, termination, and coordination of job transfers, and will doadvanced planning for resources, both short and long term, and will determineand plan resources needed by the Work Groups, including administration,engineering, materials, financial, etc.

 

*UNIONPLANT COMMITTEE:*

 

The Union Plant Committee is elected by the unionmembers according to the Union bylaws. Membership will consist of a President and one additional member forevery forty (40) employees, with a minimum of no less than three members. UnionPlant Committee members and two members of the Education and Training Committeewill have top seniority for layoffs and recall purposes.  They will be assigned to serve on the PlantCouncil and the other committees created by this Agreement as the Union seesfit.  The Union President or hisdesignee will be afforded up to twenty (20) hours per week for the purpose ofconducting Union business.

 

*PLANTCOUNCIL:*

A consultative employeegroup, consisting of three (3) members of the Union Plant Committee and anequal number of representatives from the Company, including the Plant Manageror his designee, who participate in decision-making processes addressing issuesaffecting the entire plant or which have not been resolved in the WorkGroup.  Additional members may be addedby mutual agreement of the parties on an ad hoc basis while resolving specificissues.  The Plant Council will meet asoften as necessary, but at least weekly.

 

In connection with theforegoing and with other issues affecting the plant, the parties recognize thatall functions of management are reserved exclusively to the Company, exceptinsofar as they are delegated or shared pursuant to the terms of thisAgreement.  These functions include themanagement of the business, the determination of the products, methods,processes and means of manufacturing, the establishment of the size anddirection of the work force, the setting of working schedules, the rights tohire, promote, demote, lay off, transfer, discipline, discharge for propercause and establishing fair efficiencies and Shop Rules.  The Company will perform these functions inthe spirit of the Philosophy Statement of this Agreement.

 

Within the Work Groups,decisions on matters within the Groups’ authority which are not otherwiseprovided for in this Agreement will be made through the consensusdecision-making process outlined below:

 

a)  Suchdecisions shall be made in the context of the Philosophy Statement (Article 2)and the Structure and Decision-Making framework (Article 6).

 

b)  Decisionsshould be achieved through the joint efforts of all to discover the bestsolution.

 

c)  Decisionsmust be arrived at promptly.

 

d)  A decisionmust provide a high level of acceptance for all parties.

 

e)  Once adecision is reached, all parties must be totally committed to the decision.

 

f)  Any partymay object to a proposed decision, in which event the objecting party mustpropose concrete alternatives.

 

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g)  In theevent an alternative solution is not forthcoming, the objecting party mustre-evaluate its position in the context of the Philosophy Statement.

 

h)  In theevent a decision acceptable to all parties is not promptly attainable, thematter will be referred to the Plant Council.

 

The Plant Council will also seek to reach decisions onmatters within its authority under this Agreement by means of the consensusdecision-making process outlined above, provided that, if such a decision isnot promptly attainable, the Company shall have the right to take action,subject to the Union’s right to grieve under the Agreement.

 

**ARTICLE 7**

**WORK PERFORMED OUTSIDE THE BARGAININGUNIT**

 

1.  The partiesshall conform to the principle that non-bargaining unit employees  shall not perform any operation which woulddeprive employees of their regular work. This is not to be interpreted to prevent their necessary function ofinstruction and demonstration and of engaging in productive activities whererequired in order to handle incidents which affect efficient operation.

 

2. Non-bargaining unit employees may be used to perform experimental work,with or without the assistance of employees in the bargaining unit, asmanagement determines.   Experimentalwork is defined to mean all work involved in the development of new, differentor modified products, parts, tools or equipment.

 

3.  Whenexperimental work is to be performed on a production basis, it will be assignedto bargaining unit employees. Experimental work on a production basis is defined to mean production ofproducts, parts, tools or equipment after design and testing have beencompleted and production for inventory or orders has commenced, and will beassigned to bargaining unit employees.

 

**ARTICLE 8**

**TRAINING**

 

Both the Union and theCompany recognize that training will be required to prepare Work Group andPlant Council Members to perform these functions and that this transformationwill require a gradual cultural change, but agree to work together over thelife of this Agreement to obtain the skills necessary to meet the levels ofauthority and responsibility described here.

 

A Training and EducationCommittee has been established to develop, schedule and manage the training andeducation process.  Two (2) employeesselected by the UAW N.J. Area Director and two (2) employees selected by theRBC Plant Manager will constitute the Training and Education Committee.  A minimum of two (2) hours training and/oreducation will be provided for each employee per month when averaged on ayearly basis.   This minimum trainingand education requirement will include either on-the-job training to learn toperform specific skills and/or classroom training on subjects necessary toconform with the Philosophy Statement of this Agreement.  The Training and Education Committee willwork with the members of the Work Groups to develop, schedule, and implementtraining and education programs.

 

The Training and Education Committee will develop a training and educationplan that will include necessary skills and education for the implementation ofthis Agreement.  This plan will includea schedule of training for all employees in coordination with the principles ofthe pay for knowledge and skills process. A skills assessment of all employees and the requirements for all levelsof each classification will be included in the plan.  The Training and Education Committee has submitted its initialplan for six months training and education to the Plant Council.  The training and education plan is on goingprocess and will be updated as needed during the length of this contract. Thetraining and education plan will include the utilization of a qualified traineror trainers selected by the Plant Council, whose duties may also includehelping the parties to facilitate the process. Expenses for training and education will be borne by the Company orthrough grants

 

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where available.  After theinitial training and education plan, the Committee will submit a plan every six(6) months for approval.  Training willbegin within thirty (30) days of the approval of the plan which must befinalized within two (2) weeks of its submission.   In the event the members of the Committee shall fail to reachconsensus on any aspect of the plan, the opposing views shall be submitted tothe Plant Council for determination.

 

Each Training andEducation Plan will include (but will not be limited to):

•technical skills

•problem-solving

•consensus decision-making

•business basics and philosophy

•trade unionism

•team building

•English as a second language.

 

Any Skilled Tradescomponents of the training and education plan will be developed with theassistance of the UAW Skilled Trades Department.

 

Each member of the UnionPlant Committee will be given a minimum of 60 hours of training in business andeconomics related studies each year of this labor agreement, at Companyexpense.  Such training may include visitsto other manufacturing facilities, classroom training, or on-site training,etc. and will be determined by joint union and management agreement.

 

Unless deemed otherwise,all training and education approved by the Plant Council as part of theTraining and Education Plan will be mandatory and costs will be borne by theCompany.

 

**ARTICLE 9**

**PROBATIONARYPERIOD**

 

1.  Any new or rehired employeeshall be considered on probation with no seniority for a period of sixty (60)scheduled work days, not including absence days for any reason.  Once the probationary period issatisfactorily completed, the employee will receive seniority credit dated backto the first day of his current hiring.

 

2.  The Company may, at anytime, transfer, layoff, or discharge a probationary employee for any reasonwhatsoever and no claim may be made by the Union or any of its members that thetransfer or discharge of such employee was improper.  Bargaining unit employees will not be asked to pass judgment onthe performance of the probationer.

 

**ARTICLE 10**

**SENIORITY**

 

1.  Computing Seniority

 

A. The seniority standing of an employee shall becomputed on the basis of the length of his service.  His seniority date is his date of hire.  When more than one employee is hired on the same date, toestablish their seniority position, their names will be placed on the senioritylists in alphabetical order by last name (at the time of hire), then firstname, if needed.

 

B.  Servicewill accumulate during an approved personal leave of absence, Union leave,family and medical leave, maternity leave, sick leave, military leave, funeralleave, or jury duty.

 

2.   An employee’s length ofservice and seniority shall be considered ended, and the employee will have nofurther recall or other rights as an employee of any kind or nature, except theright to vacation pay, and insurance continuation through COBRA, if such anemployee:

 

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A.  Voluntarilyquits his employment (if rehired by the Company within three (3) working daysafter quitting, seniority shall not be affected), or

 

B.  Isdischarged for proper cause, or

 

C.  Is absentfor three (3) working days without properly notifying the Company, unless asatisfactory explanation is given for failure to call.  (NOTE: this does not remove the obligation of calling in on the first day ofabsence), or

 

D.  Fails toreturn to work from layoff within five (5) working days after propernotification by certified mail, return receipt requested or an accepted methodof overnight delivery by the Company at the last known address as it appears onthe Company records, unless a satisfactory reason is given, or

 

E.  Fails toreturn to work at the end of an approved leave of absence or gives a falsereason for obtaining a leave of absence, or

 

F.  Passes thetime limit for recall from layoffs, or

 

G.  Requestsand receives severance pay as a result of a qualified layoff.

 

**ARTICLE 11**

**LAYOFFSAND RECALL TO WORK**

 

**1.  Layoff Provisions**

 

A.  The Companywill give at least seventy-two (72) hours notice prior to layoff to theemployees affected, even if only one employee is affected.

 

B.  When a jobis eliminated within a classification in a Work Group, the least senioremployee in that classification in the Work Group will be displaced.

 

C.  An employeedisplaced from a classification within a Work Group may bump on the basis ofplant seniority the least senior employee in the same or a lower ratedclassification in another Work Group. The employee will designate a job choice within 48 hours from the end ofthe shift on which he was displaced. Employees can only bump into a Skilled Trades job if they previouslyheld the job.

 

**2.  Recall Provisions**

 

A.  Recall willbe offered to employees on the recall list in reverse order of layoff whenthere are no successful bidders for an open job.

 

B.  If anemployee on the recall list is offered regular, full-time re-employment of 60working days or more on the same job and shift as previously held, and herefuses to accept it, he will be dropped from the recall list and no longer haveany rights under this Agreement, except the right to any unpaid vacation andbenefits through COBRA.

 

C.  If anemployee on the recall list is offered regular, full-time re-employment of 60working days or more on a different job or shift than his regular job, and herefuses to accept it, he will remain on the recall list  until such time as he is offered anotheropportunity to return to work.  A thirdrefusal to return to work will cause such employee to be removed from therecall list and no longer have any rights under this Agreement, except theright to any unpaid vacation and benefits through COBRA.

 

D.  Employeeson the recall list are responsible for keeping the Company notified of anychange of address or phone.  If theCompany cannot contact a previous employee at the last known address, he willbe dropped from the recall list.

 

E.  A laid offemployee will remain on the recall list according to the following time limits:

 

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SENIORITY TIME LIMIT

 
| Probationers       |   | No Recall               |
|--------------------|--------|-------------------------|
| 2 years or less    |   | 2 years                 |
| 2 years to 5 years |   | equivalent of seniority |
| 5 years and over   |   | 5 years                 |

 

**ARTICLE 12**

**OPENJOBS**

 

1.  FillingOpen Jobs

 

A.  Whenever the Company determines that an openjob exists in the Bargaining Unit (other than a Skilled Trades job):

 

1)  The Company will post notice of such openingfor forty-eight (48) hours.  Employeeswho wish to apply for the opening must do so by putting a job bid form in theBid Box during the posting period.  Onlythose employees who apply during such 48-hour period will be considered for thejob and will have a right to grieve the final selection.

 

2)  Any employee may submit a bid under theprovisions of paragraph 1) above on behalf of an employee who is on vacation orleave of absence during the posting period. Employees on leave of absence will be considered, provided they will bereturning from leave in a reasonable period of time.

 

3)  Applicants will be awarded the open job onthe basis of seniority.

 

4)  A successful bidder will be transferred tothe open job within forty-five (45) calendar days after he is designated.

 

B.  When an open job exists in one of theSkilled Trades classifications, the posting and bidding procedure outlined inSubsection A above shall apply.  The jobwill be awarded on the basis of seniority. However, employees who have previously held a job in the Skilled Tradesclassification in which the open job exists, will be given priority.  Those employees bidding for the job who havenot previously held a Skilled Trades job will be required to take a standardskills assessment test to verify qualification and aptitude for successfulperformance.  Where no applicantpossesses the requisite qualifications, the Company may determine whether totrain or hire on the outside.

 

2.  Successfulapplicants will receive a rate of pay commensurate with previous experience,qualifications, and training.

 

3.  Successfulapplicants will be trained on the shift where suitable training conditionsexist, and will be moved to the posted shift as soon as practical aftersufficient skill levels are reached.

 

4.  Situationswhere successful applicants either change their mind about a job or receive ajob failure will be reviewed by the Plant Council and appropriate actions takenas agreed.

 

5.  If anunqualified candidate is selected for a Skilled Trades position, the Trainingand Education Committee will develop a two-year apprenticeship program,including classroom and on-the-job assignments, which will providecomprehensive exposure to all required skills for successful performance of thejob.  The program will be submitted tothe Plant Council for review and approval.

 

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**ARTICLE 13**

**SEVERANCEPAY**

 

1.  In theevent that the Company transfers any equipment or jobs or any part thereof toanother location established by it beyond a twenty-five mile radius from thecenter of West Trenton, NJ, and, in the future event, that such transfer is theimmediate cause of, or that such transfer directly or indirectly results in alayoff of employees, any employee thus laid off shall have the option to electto take severance pay in lieu of such layoff subject to the provisions below:

 

A.  In the event that such transfer as describedabove, results in a bumping of employees without a layoff, any such bumpedemployee who is entitled under the provisions of this Agreement to another jobcovered by this Agreement, which would result in a loss of less than $1.00 perhour in wages below the job from which he is being bumped or from which he wasoriginally bumped because of a transfer within the time limit, shall not beentitled to severance pay.

 

Any such employeethus bumped who is not entitled under the provisions of this Agreement toanother job covered by this Agreement which would result in a loss of less than$1.00 per hour in wages below the job from which he is being bumped, or fromwhich he was originally bumped because of a transfer within the time limit,shall have the option to elect to take severance pay in lieu of the job towhich he is entitled under the provisions of this Agreement.

 

B.  When a layoff or bumping as a result of atransfer, occurs between the date of the transfer and within the following twoyears, employees in such layoffs or bumping with more than one year seniorityshall have a claim on severance pay.

 

C.  When a layoff or bumping, as a result of atransfer, occurs two years after the date of the transfer, but within fiveyears of the transfer, employees in such layoff or bumping shall have a claimto severance pay, when the length of their seniority is more than the timeperiod between the date of the transfer and the date of the layoff or bumping.

 

D.  When the layoff or bumping as a result ofthe transfer, occurs five years or more after the date of the transfer, thereshall be no claims for severance pay.

 

E.  Severance Pay

 

1)  To elect to take such severance pay in lieuof layoff or bumping, the employee must advise the Company of his election inwriting, delivered to it within 90 days after the commencement of the layoff orincident of bumping.  Severance payshall be computed on the basis of forty hours pay at the employee’s regularstraight time hourly rate, at the date of the commencement of the layoff orincident of bumping, for each year of seniority since the date of the lasthire.

 

2)  The Company will increase the severance payfrom 1 week to 2 weeks per year of service whenever productivity increases anaverage of 1% a month.  Otherwise,severance pay of 1 week will apply.

 

Formula:

 

+ West Trenton PlantSales Dollars

+ Transfers to Hartsvilleand Warehouse in Sales Dollars

+/- Change in WIP +Finished Goods Inventory

-----------------------------------------------------------------------

= Output

 

Hours = Total straighttime + overtime hours

Output = ProductivityMeasure Hours

 

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F.  Severance pay hereunder shall be paid to anelecting employee within one year after the receipt by the Company of thenotice of election and, upon payment of severance pay in a lump sum, theemployee shall thereafter have no further seniority, recall or other rights asan employee of any kind or nature, except the right to vacation pay due to himunder Article 23.

 

G.  Seniority employees on extended sick leavehave no claim under the above provisions.

 

2.  Until sucha time as the Plant Closing Notification laws go into effect, the Company willgive the employees 45 days advance notice of an imminent plant closing as thelaws’ language pertains.  When the lawgoes into effect, it will comply fully with the language of the law.

 

**ARTICLE 14**

**LEAVE OFABSENCE**

 

**1.  Types and Conditions of Leave**

 

***A.  Personal Leave***

 

Upon written application, a leave of absence for a specified purpose,and a specified period of time may be granted to employees with the mutualconsent of the Company and the Union.  Acopy of such leave is to be given to the Union.

 

***B.  Union Leave***

 

Members of the Union, not to exceed one (1) for everyforty (40) represented employees at any one time, elected or appointed by theUnion to assignments which take them away from their employment with theCompany, shall be given a leave of absence for the period of such Unionassignment, and upon return to work for the Company shall be re-employed on thesame job which they performed at time of leave and at the rate of payprevailing for that job.

 

Duly elected Union representatives, not to exceed one(1) for every forty (40) represented employees at any one time, shall begranted leaves of absence for short periods to attend Union Conventions andsimilar Union functions.

 

The Union will give theCompany as much notice as possible whenever more than two Union representativeswill be out of the plant simultaneously.

 

***C.  Sick Leave***

 

An employee, who maybecome ill or injured and qualify for non-occupational state disability, andhas supported his absence with satisfactory evidence similar to that requiredunder the Company’s Family and Medical Leave policy, shall, upon application,be granted an unpaid leave of absence. The employee must provide medical evidence of continued disability asrequired.

 

An employee on SLOA orworkers’ compensation will not receive an attendance infraction for absenteeismbut they will not qualify for Perfect Attendance.

 

In all instances, uponreturning to work, a statement must be presented from a qualified physicianstating the employee is physically capable of performing his regular jobassignment.  The Company reserves theright to obtain a second opinion from a qualified physician designated by theCompany and at the Company’s expense. The employee will return to his previous job provided work is availableand he has the seniority to do so.  Ifthe leave was an approved FMLA Leave for personal disability, he will return tohis previous job or a comparable job. Otherwise, he will be eligible to bump another job, subject to theseniority provisions of this Agreement, and provided he has the skill andability to perform the work.

 

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***D.  Family andMedical Leave***

 

It is understood that allof the leave provisions herein shall be administered in a manner consistentwith an employee’s rights, if any, under applicable family and medical leavestatutes.  Likewise, it is the parties’intent that the Company shall have the right to exercise any rights of anemployer under such applicable statutes.

 

***E.  Maternity Leave***

 

Employees absent fromwork due to pregnancy shall be granted Sick Leave as described above, providedthe required application, approvals, procedures and proof of medical disability are followed as outlined inthe Company’s FMLA Policy and  conformto current applicable laws concerning maternity absences.  A leave of absence for pregnancy may beextended up to three (3) months following delivery,  without loss of seniority or service.  In all instances, upon returning to work following a delivery, astatement must be presented from the family physician stating the employee isphysically capable of performing her regular job assignment.

 

***F.  Funeral Leave***

 

A seniority employee whohas a death occur in his immediate family (father, step-father, mother,step-mother, husband, wife, brother, step-brother, sister, step-sister, child,father-in-law, mother-in-law) will be excused from work up to three days.   A seniority employee whose grandchild,step-child, grandparent(s) or spouse’s grandparent(s) pass away, will beexcused from work for one day.

 

For each such day ofabsence on which he otherwise would have worked and does not work, he shall bepaid eight times his regular straight time hourly rate, provided the employeeattends the funeral and submits proof of death.  In the case of death in foreign residence, a death certificate isrequired.

 

***G.  Jury Duty***

 

A seniority employee whois called to and reports for jury duty shall be excused from work on the dayson which he serves or where jury duty was canceled after he reported toserve.  In addition, he shall receivefor each day of jury service on which he otherwise would have worked and doesnot work, eight times his regular straight time hourly rate.

 

Such payments shall notexceed a total of twenty (20) days in any calendar year.  Such compensation shall be payable only ifthe employee gives the Company prior notice of such jury duty call; andpresents proper evidence as to the jury duty performed.

 

***H.  Military Leave***

 

The Company will conform to the requirements of anyapplicable provisions of law with respect to military training or service.

 

**2.  Leave Provisions**

 

A.  Any employee on leave may return to work inline with his seniority, before the expiration of the leave, providing not lessthan seven (7) calendar days notice is given to Management.

 

B.  Employees who are approved for PersonalLeave will be required to apply any remaining vacation days to the beginning ofthe leave period commencing with the first day of the leave.

 

C.  Employees who are approved for PersonalLeave, Union Leave, Sick Leave, Military Leave (except for yearly two-weekencampments), Family and Medical Leave and Maternity Leave will be granted suchleave without pay.

 

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**ARTICLE 15**

**OVERTIME**

 

The regular work weekwill be scheduled as eight (8) hours a day, forty (40) hours per week, as longas, in the Plant Council’s judgment, it is practicable and consistent with theefficient operation of the plant.

 

Overtime opportunitieswill be substantially equalized within a Production Work Group, between thoseemployees with the appropriate skill level for the required work.  Work Groups will develop and administertheir own plans for a fair and consistent scheduling and regulation of overtimeopportunities within the group.   ThePlant Council will develop plans for a fair and consistent scheduling andregulation of overtime opportunities between Work Groups, which will beadministered by the Work Groups.

 

In the case of Saturdaywork, announcement prior to 9:00 a.m. on the previous Thursday will beconsidered as sufficient.  In the eventthat this work is canceled after that time, the Company will compensate theaffected employee at the rate of four (4) hours overtime pay.

 

Employees will be paidtime and one-half for:

 

a)  Time worked in excess of eight hours in anycontinuous twenty-four hours, beginning with the starting time of theemployee’s regularly assigned shift.

 

b)  All work performed in excess of forty (40)hours in any normal work week

 

c)  All time worked on any shift which starts onSaturday.

 

Double time shall be paidfor:

 

a)  All work performed on Sundays and holidays,except the 1st hour of the normal night (third) shift and as provided underArticle 24.

 

**ARTICLE 16**

**WAGES AND OTHER COMPENSATION**

 

1.               Effective July 1,2001 a three percent (3%) general increase will be applied to all individualrates of pay of each member of the bargaining unit.  Employees who are not on the active roll at the time of thegeneral increase will receive the increase adjustment at the time they returnto the active roll.

 

2.               Effective July 1,2002 a three and one-half percent (3 1⁄2%) general increase will be applied toall individual rates of pay of each member of the bargaining unit.  Employees who are not on the active roll atthe time of the general increase will receive the increase adjustment at thetime they return to the active roll.

 

3.               Effective July 1,2003 a three and one-half percent (3 1⁄2%) general increase will be applied toall individual rates of pay of each member of the bargaining unit.  Employees who are not on the active roll atthe time of the general increase will receive the increase adjustment at thetime they return to the active roll.

 

4.  ***Classifications and Pay forKnowledge and Skills***

 

a)  The new system will consist of threeclassifications:

 

Production

Skilled Trades (Maintenance)

Skilled Trades (ToolRoom)

 

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Furthermore, within eachclassification, there will be four levels of training:

 

Basic

Core

Intermediate

Advanced

 

Training will be providedin each level, as necessary, and as determined by the Education and TrainingCommittee in consultation with the Work Groups and with final approval by thePlant Council.

 

b)  Pay rates for each classification and levelare listed in back of book – Appendix A

 

c)  Each employee assigned to a Work Group willbe required to complete the Basic and Core levels of training for thatgroup.  Intermediate and Advanced leveltraining shall be voluntary.  However,if management of the Work Group determines that insufficient intermediate andadvanced levels of training are available within the Group, it may resort tonecessary measures which may include transfers.

 

d)  The three-classification and pay forknowledge and skills system is designed to create greater flexibility andefficiency, and is not designed to reduce the work force.  Therefore, during the term of thisAgreement, there will be no layoffs of bargaining unit employees as a directresult of the institution of this system. However, it is mutually agreed that the Company retains the right toadjust the size of the work force due to business, market or other suchconditions.  Moreover, management of theWork Groups will be free to assign employees in accordance with the knowledgeand skill levels they have attained.

 

**ARTICLE 17**

**PERFECT ATTENDANCE/SERVICE TIME AWARD**

 

6.   Employeeswho have perfect attendance by working all regularly scheduled hours (notincluding overtime) in any specified quarter will earn a $150.00 PerfectAttendance Award for that period.  Forpurposes of this award, perfect attendance is defined as no available hoursmissed for unexcused absences, illness or injury, discipline, leave of absence,or strike.

 

An employee on SLOA or workers’ compensation will notreceive an attendance infraction for absenteeism but they will not qualify forPerfect Attendance.

 

7.   Employees actively at workon March 31 with more than five (5) years seniority will receive $9 a year foreach year of service as a Service Time Award. Service time will be calculated each year on March 31 and the award willbe paid on April 30.

 

**ARTICLE 18**

**NEWPRODUCTS**

 

1.  When andif, from time to time, the Company, at its discretion, decides to manufacture adifferent product, new to the plant, it may create a new Work Group orotherwise staff the production of such product by means of recalling orrehiring experienced employees or by means of new hires.  If the Company believes that the skillsand/or knowledge needed to produce such product on an efficient and profitablebasis are substantially different than the skills and knowledge in the existingWork Groups:

 

a)  the Company will install a wage range forthe positions;

 

b)  the wage range will be explained in thePlant Council with the object of obtaining a consensus agreement.  The wage program may be installed by the

 

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Company without aconsensus agreement in the Plant Council subject to adjustment as providedbelow;

 

c)  when a wage range is installed, the Unionmay process the issue in accordance with Article 29 below, including submissionto arbitration of a grievance alleging that such does not bear a fairrelationship to the wage structure in the plant.  The decision of the arbitrator, if any, shall be effective as ofthe date when the employee(s) commenced manufacturing such different product.

 

**ARTICLE 19**

**SHIFT****PREMIUM**

 

1.   A shiftpremium of 10% of the regular hourly rate will be paid to all employeeswhenever they are assigned to and working on the afternoon and night shifts forthe life of the contract.

 

2.  Wherescheduled variations from the regularly scheduled shifts occur, the jobsinvolved will be considered as falling on the shift on which a major part ofthe job is worked.

 

3.  Anyemployee who is called in to perform work in the shift preceding or succeedinghis regularly assigned shift, or who holds over beyond his regularly assignedshift, will be paid the shift premium, if any, applicable to the shift on whicha major portion of his regular scheduled hours are worked.  However, when an employee on the Day Shiftor the Afternoon Shift works twelve or more continuous hours per day, includingpaid lunch period, he shall be paid the applicable shift premium for all hoursworked over eight.

 

4.  Shiftsshall be identified as follows:

 

(a)  Day Shift - (1st Shift)

When the majority ofhours on an employee’s regularly assigned shift shall fall between 7:00 a.m.and 3:00 p.m., inclusive, he shall be considered as working on the Day Shift.

 

(b)  Afternoon Shift - (2nd Shift)

When the majority of hourson an employee’s regularly assigned shift shall fall between 3:00 p.m. and11:00 p.m., inclusive, he shall be considered as working on the AfternoonShift.

 

(c)  Night Shift - (3rd Shift)

When the majority ofhours on an employee’s regularly assigned shift shall fall between 11:00 p.m.and 7:00 a.m., inclusive, he shall be considered as working on the Night Shift.

 

5.  An employeeon 2nd or 3rd shift, who has been awarded a new job on either 2nd or 3rd shift,and who, for the Company’s convenience has been temporarily transferred to dayshift for training, shall receive shift premium during the period of suchtraining.  New employees will only bepaid shift premium, when transferred to the applicable shift(s).  Day shift personnel will be paid under otherapplicable provisions of the Contract.

 

**ARTICLE 20**

**PAID BREAK AND LUNCH PERIODS**

 

All employees willreceive two (2) Company-paid, twenty (20)-minute paid breaks each shift. TheWork Groups will be responsible for scheduling break times for the group.

 

Employees are encouragedto remain on Company property during break times.  Those who remain on Company property are not required to clockout, whereas those who leave the grounds, must clock out and back in upon theirreturn to the plant.

 

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Employees who remain onCompany property must take their breaks only in the cafeteria, rest rooms, oron the Company grounds and parking lots. Breaks may not be taken on the manufacturing floor.

 

All vending machines willbe located in the cafeteria and all profits generated will go to the Union’sactivity fund to be expended as they decide.

 

**ARTICLE 21**

**REPORTINGPAY**

 

1.  Anyemployee who has not been notified when there is lack of work, and thereforereports to work as scheduled, shall receive four (4) hours pay at his regularhourly rate, unless the lack of work is caused by circumstances beyond thecontrol of the Company, or resulted from a labor dispute, or alternative workwas made available, or the employee could not be reached because of an outdatedphone number.

 

2.  If anemployee is asked to return to work after completing his shift and leaving theplant or he is asked to come in to work when he was not already scheduled, hewill be paid the applicable overtime rate for the work.  If the call back time is less than threehours, he will receive his regular rate of pay for the difference between thehours worked and three hours.

 

**ARTICLE 22**

**TEMPORARY TRANSFERS**

 

Employees may be temporarily transferred to other jobs,within the Work Group and outside the Work Group, as required to meetproduction needs.  Employees will not betemporarily transferred between classifications except with the employee’sconsent or in order to deal with the production needs of the business on thelast three work days of the production month.

 

**ARTICLE 23**

**VACATIONS**

 
|   | 1.     | Current Vacation Year is defined as the current  twelve months between June 1 and May 31.                                             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                  |
|   | 2.     | Vacation pay = hours worked x applicable % x  straight time rate with night premium in effect on June 1 of the current  vacation year |
|   |   | Or                                                                                                                                    |
|   |   | Vacation pay = gross wages x applicable %                                                                                             |
|   |   | Whichever pay is  greater                                                                                                             |

 

A.  Vacation Pay Schedule:

 
|                        |   | **Eligible Time Off** |   | **Applicable %** |
|-----------------------------|--------|-----------------------|--------|------------------|
| 6 mos. less than 1 year     |   | 1 week                |   | 2                |
| 1 year less than 2 years    |   | 1 week 2 days         |   | 2.8              |
| 2 years less than 3 years   |   | 1 week 4 days         |   | 3.6              |
| 3 years less than 5 years   |   | 2 weeks 2 days        |   | 4.8              |
| 5 years less than 7 years   |   | 2 weeks 3 days        |   | 5.2              |
| 7 years less than 9 years   |   | 2 weeks 4 days        |   | 5.6              |
| 9 years less than 11 years  |   | 3 weeks               |   | 6.0              |
| 11 years less than 13 years |   | 3 weeks 1 day         |   | 6.4              |
| 13 years less than 15 years |   | 3 weeks 2 days        |   | 6.8              |
| 15 years less than 17 years |   | 3 weeks 3 days        |   | 7.2              |
| 17 years less than 19 years |   | 3 weeks 4 days        |   | 7.6              |
| 19 years less than 21 years |   | 4 weeks               |   | 8.0              |
| 21 years less than 23 years |   | 4 weeks 1 day         |   | 8.4              |
| 23 years and over           |   | 4 weeks 2 days        |   | 8.8              |

 

B.  Factor for Computed Clock Hours Calculation

 

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1)  Calculation:

 

a)  Between 1500 hours and 2000 clocked workedhours shall be paid at 2000 hours

Vacation = 2000 xapplicable % x straight rate with night premium in effect on June 1 of the current vacation year

 

b)  Over 2000 clocked worked hours -

Vacation pay = hoursworked x applicable % x straight time rate with night premium in effect on June1 of the current vacation year

 

Or

Vacation pay =gross wages x applicable %

whichever isgreater

 

c)  Less than 1500 clocked hours of work

Vacation pay = grosswages x applicable %

 

2)  For the purpose of computing clocked hours,any hours lost because of a work week scheduled under forty (40) hours (exceptas listed in Paragraph 3.a.) or hours paid for negotiating time and PlantCouncil meeting time which fall in the earnings period shall be counted asclocked hours.

 

3)  Clocked hours shall be computed in fullcalendar weeks, Starting with the Monday before June 1, or June 1, if it fallson a Sunday or Monday of the previous vacation year.

 

a)  Time lost, during the earnings period, inany work week under forty (40) hours because of a shutdown due to holiday,vacation, power failure, storm, strike, fire or cause beyond the power of theCompany, shall not be considered clocked hours.

 

b)  Earnings Period covers from June 1 to May 31of the preceding vacation year. Earnings Period shall be computed in full calendar weeks, in the samemanner as clocked hours.

 

3.  Vacation schedules may be canceled in theevent of a National Emergency. Employees affected shall receive vacation pay on the same basis asoutlined in the Vacation Pay Schedule.

 

4.  Vacation Payment after Separation

 

A.  Employees who die, or go on leave or layoff, on or before May 31of the preceding vacation year shall be issued theVacation Pay for which they qualify under the above Sections.

 

B.  Employees who leave before December 31 ofthe preceding vacation year for any reason other than those listed in 4.A.above, are not eligible for Vacation Pay.

 

C.  Anyone leaving the employ of the Companybetween December 31st of the preceding vacation year, and the following May31,  who qualified for vacation pay,shall receive that pay based on the applicable percentage of their wages earnedbetween the previous June 1st and their date of leaving.

 

D.  Anyone retiring between December 31st of thepreceding vacation year, and the following May 31, shall be issued the vacationpay for which they qualify.

 

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6.  An employee who returns to work from aMilitary Leave and who has not been back at work for a full year on June 1 ofthe current vacation year will be paid his applicable percentage of 2000 hours,times the total of his June 1 regular straight time hourly rate and applicableshift premium.

 

8.  Vacation Time:

 

A)          Vacation may be taken as1/2 days (4 hrs), one day at a time or weekly or any variety of the above.

 

B)            A vacation requestform must be completed, approved, and turned in to Human Resources on Mondaysat 8am for proper payroll processing.

 

C)            Employees may take avacation day in place of being off sick by notifying their supervisor prior tothe start of their shift. Their perfect attendance money and attendance recordwill not be affected.

 

D)           Employees may chooseeither a lump sum or “pay as you go” method for vacation pay.  Employees must elect their vacation paymentmethod by May 1 of the vacation year.

 

E)             Lump sum paymentswill be made by the end of the second full week in June.

 

F)             Any balance of moneyowed for “pay as you go” vacation not used during the year will be paid by thefirst full week in June.

 

G)            RBC will have advancedvacation checks ready on the payday of the week before the employee goes onvacation, or write a replacement check the same day.  This applies to pre-approved vacation of one week or more in the sameweek with two weeks notice.

 

**ARTICLE 24**

**HOLIDAYS**

 

1.  Hourlyrated employees shall be paid for the following Holidays without work beingperformed, provided they meet the eligibility requirements described below:

 
| New Year’s Day               |   | December 24                    |
|-----------------------------------|--------|--------------------------------|
| Good Friday                       |   | Christmas Day                  |
| Memorial Day                      |   | Three (3) weekdays between     |
| Independence Day                  |   | Christmas Day  and December 31 |
| Labor Day                         |   | December 31                    |
| Thanksgiving Day                  |   |                           |
| Friday following Thanksgiving Day |   |                           |

 

In applying thisprocedure, when any of the above enumerated holidays falls on Sunday the dayfollowing (Monday) will be observed as the holiday and it shall be paid as suchholiday.  When any of the aboveenumerated holidays falls on Saturday the previous day (Friday) will beobserved as the holiday and it shall be paid as such holiday.

 

2.  To beeligible for Holiday Pay, an employee must have completed his probationaryperiod and have worked the last scheduled work day before and the nextscheduled work day after the holiday within the same work week or have anacceptable explanation for not doing so.

 

3.  Eligible employees shallreceive eight (8) hours’ pay at their regular straight time hourly rateexclusive of night shift and overtime premium for each of the paid holidays.

 

4.  If work isperformed on these holidays, employees shall, in addition to the regularholiday payment, receive twice their regular hourly rate for hours actuallyworked,

 

16

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exclusive of night shift and overtime premium.  Employees who have accepted such holidaywork assignment and then fail to report for and perform such work withoutreasonable explanation, shall not receive pay for the holiday.

 

**ARTICLE 25**

**401K**

 

1.               A non discretionaryCompany contribution on behalf of each covered employee, in the amount of four(4) percent of gross wages will be deposited in each account monthly. Anadditional contribution on behalf of certain current older employees designedto replace the contribution made to the former defined pension plan will bedeposited yearly.

 

2.               In addition totheir regular contribution of 4%,  theCompany will contribute an additional one (1%) percent on any employeecontributions of 10% or more to their 401K.

 

3.               Loans will bepermitted on moneys contributed by the employee. You must be a plan participantfor one year before you may take a loan.

 

4.               Loans are allowedfor the following reasons:

Purchase of, orrenovations to a primary home

Unreimbursed medicalexpenses

Secondary tuition foryourself or your dependents

Avoid eviction from orforeclosure to your primary home

 

5.               Minimum loan:  $1000; Maximum loan:  50% of vested account value, or $50,000(whichever is less)

 

**ARTICLE 26**

**PERSONAL INJURIES/WORKERS’COMPENSATION**

 

**1.  Return to work from injury and/or illness -Not Work Related**

 

A.  An employee who has been incapacitated by apersonal injury or illness may return to work when he is able to return totheir regular job with no restrictions. Full duty with no restrictions.

 

**2.  Procedures for Handling On-the-Job Injuries**

 

A.  When injured on the job, employees must usethe medical facilities made available by the Company for all services inconnection with the injury.  Anyemployee who bypasses the Company facilities will act on his own responsibilityinsofar as the expense involved.

 

B.  Employees who, while at home, requireemergency medical attention for injuries sustained at work, will report to theCapitol Health System - Mercer Campus or Helene Fuld Campus emergency room.

 

C.  Employees who are injured at their work inthe plant and sent to the hospital, shall, if they are sent home from thehospital, receive pay at their regular rate for the balance of their shift ortime in the hospital, whichever is less. This applies to the first time they are sent home for such injury.

 

1)  Doctor visits on day shift will be scheduledto finish not later than normal quitting time, if possible.

 

D.            The Company may electto provide work for workers’ compensation illnesses or injuries provided thework available meets the physical restrictions outlined by the attendingphysician.

 

E.               If an employeedisputes the treatment or course of action taken by the attending physician hemay request a second opinion through the workers’

 

17

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compensationcarrier.  A second opinion must be approvedby the workers’ compensation carier for all medical treatment to be paid.

 

**ARTICLE 27**

**SAFETYAND HEALTH**

 

1.  The Companyagrees that it will provide sanitary and safety devices within the plant.  The Union agrees that the employees willtake proper care of such equipment.

 

2.  A CompanyRepresentative and Union President, or his designee, will tour the shop onceper month during working hours to review matters for safety and health.

 

3.  Safety andEnvironmental Committee

 

A.  The Company and Union will expand its SafetyCommittee to include responsibility for analyzing and correcting unsafe andunhealthful working conditions inside the plant, insuring that the plant doesnot pose a threat to the outside environment, and overseeing training onhealth, safety, and environmental issues.

 

B.  The Committee will consist of two (2)persons appointed by the Union President and two (2) persons appointed by theRBC Plant Manager.

 

C.  The Committee will meet at least once permonth or as often as necessary.

 

D.  The Committee will conduct regularinspections of the different areas of the plant to ensure that conditions arenot hazardous.  Reports of theseinspections will be given to the Work Groups that were inspected and to thePlant Council.

 

E.  Employee training required by law regardingHealth and Safety will be separate from the minimum time for training requiredin the Training and Education Section of this Agreement.  Such training, however, will be part of theTraining and Education Committee’s regular plan.

 

4.  SafetyGlasses

 

A.  The Company will provide up to $110 ($25credit for exam and $85 for glasses) for each employee purchasing prescriptionsafety glasses once per contract year. Policy choices will be explained when PO is issued.   All doctor’s and lab visits will be made onthe employee’s own time.

 

B.  The Company will supply non-prescriptionSafety Glasses.

 

C.  Employees are responsible for the care oftheir safety glasses (prescription and non-prescription).  The Company will replace any glasses thatare broken during the course of work.

 

D.  Safety glasses are required on the shopfloor.

 

5.  Safety WorkShoes - Under the shoe policy, one pair of work shoes per year will beprovided.  Payments will be made inaccordance with current safety shoe policy.

 

**ARTICLE 28**

**UNIONFACILITIES**

 

The Company agrees toprovide the Union with a suitable Bulletin Board on which it may post notices,provided such Union notices deal with meetings, election of officers,appointment of committees and other non-controversial matters concerning theaffairs of Local 502, U.A.W.

 

18

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The Company will providethe Union officials with office space, as well as telephone and computerservices, for use in conjunction with performance of their duties under theterms of the Agreement.

 

**ARTICLE 29**

**DISPUTERESOLUTION**

 

It is recognized that,from time to time, disputes will arise, and that, although every effort will bemade to resolve issues at the source, resolution will not always be reachedwithout intervention from others.

 

Disputes on the shopfloor will first be discussed with the affected employees and supervisors, asappropriate,  in an attempt to settlethe issue.   If the matter cannot be resolved,the aggrieved employee may request that the Supervisor call a member of theUnion Plant Committee to discuss the issue.  Other disputes will be handled at the level that they arise.  All disputes involving discipline oraffecting employment will be reviewed by the Plant Council.

 

If the dispute cannot beresolved at the first level, a member of the Union Plant Committee may submitthe dispute as a written grievance, along with all the facts, to the PlantCouncil, not more than ten (10) days after the dispute arose.   A meeting will be scheduled within one (1)week of such submission to review the issues with the Plant Council and theappropriate parties.

 

If the Plant Councilcannot find resolution of the issue acceptable to the affected employee, theissue will be discussed in a meeting with the Plant Council and the UAWInternational Representative and individuals selected to represent theCompany.  If the issue cannot besatisfactorily resolved at this meeting, the Company will respond in writing tothe issue within five (5) days after the meeting.  At that time, the party who raised the issue may demand final andbinding arbitration.  In order to demandarbitration, the party must submit its demand, in writing, within thirty (30)days after the dispute was submitted as a written grievance.   This thirty (30)-day time limit can only beextended by consensus of the Plant Council, and then only for thirty (30)additional days.  A log will be kept ofall written grievances in order to comply with the timeliness provisions.

 

Arbitration will be inaccordance with the Rules of Voluntary Labor Arbitration of the AmericanArbitration Association and a dispute may be submitted to arbitration by filinga Demand for Arbitration in accordance with such rules within thirty (30) daysof the submission of the grievance to arbitration.  If made within the scope of the authority of the Arbitrator, thedecision of the Arbitrator upon the issues submitted shall be final and bindingupon the parties to the Agreement.

 

The compensation andexpense of the Arbitrator and the Arbitration proceedings shall be borneequally by the parties.

 

**ARTICLE 30**

**LIVINGAGREEMENT**

 

In keeping with our Philosophy Statement, this is a“Living Agreement”.  As a “LivingAgreement,” both the Union and Management understand that there may be issuesthat arise during the implementation of this Agreement that have not beenaddressed or discussed during bargaining.  However, it may only be modified through consensus of the Parties.

 

**ARTICLE 31**

**INSURANCE**

 

***1.******              Insurance Benefits -Active Employees***

 

1)              Subject to theprovisions of this Agreement, life insurance and AD&D Insurance will beprocured by the Company for all regular employees for the life of thiscontract.  This insurance will beprovided at no

 

19

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expense to theemployee.

 

2)              Life insurance isvalued at $20,000 and AD&D is valued at $40,000.

 

3)              The group medicaland prescription plans will be provided to eligible employees and dependentsfor the life of this contract. The prescription plan will provide mail orderprovisions for qualified maintenance drugs. The Company will select the carrier and reserves the right to changecarriers.

 

The medical andprescription plan premium on 5/1/01 is the “2001 premium” for calculatingincreases in company and union employee contributions.

 

1.  The shared cost for the first year of thecontract is as follows.  The companywill pay the 2001 premium and union employees will pay $25.00.

 

2.  The premium increase between 5/1/01 and5/1/02, 2002 premium, will be shared as follows:

 

A.           The company will firstpay premium increases calculated as follows. 2001 premium X 112.5%

 

B.             The balance of thepremium increase, 2002 premium – (minus 2001 premium X 112.5%) will be sharedas follows:

 

(1)          80% will be paid by thecompany

 

(2)          20% will be paid by theunion employees

 

(3)          The union paid premiumincrease will be added to $30.00

 

3.  The premium increase between 5/1/02 and5/1/03, 2003 premium, the premium will be shared as follows:

 

A.           The company will firstpay premium increases calculated as follows. 2002 premium X 112.5%

 

B.             The balance of thepremium increase, 2003 premium – (minus 2002 premium X 112.5%) will be sharedas follows:

 

(1)  80% will be paid by the company

 

(2)          20% will be paid by theunion employees

 

(3)          The union paid premiumincrease will be Added to their 2002 rate

 

Any changes to thepresent health/prescription insurance carrier will be equal or better than thecurrent coverage.

 

4)              The Union will havethe right to discuss insurance rates and medical plan coverage changes.  In order to improve health insurance costsand coverage the Union will work with RBC and the insurance carrier during the60 day period following notification of the rate change by the carrier.

 

5)               Group medical andprescription plans, dental and life insurance plans will remain in effect forall active employees, employees on disability and employees on approved FamilyLeave of Absence.

 

6)              The Company willprocure a group dental plan for the life of this contract.  This dental plan will be provided at noexpense to the employee.  Such planshall be evidenced by a written agreement conforming to the requirements oflaw.

 

B.  Employees hired on or after the effectivedate of this Agreement shall be eligible for the above plans after theycomplete their probationary period.

 

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C.  All administrative expense shall be borne bythe Company and the Company shall determine all administrative procedures whichmay be required to execute such a program.

 

D.  Employee weekly medical co-paycontribuitions will be deducted on a pre-tax basis and will be automaticallydeducted from the pay of employees who are enrolled in the plans.  Employees on the disability, workers’ comp,  temporary disability, or an approved leaveof absence will be expected to make monthly contributions toward theirco-pay.  Employees who are on layoff andeligible to receive benefit continuation will receive that coverage at nocost.  Employees who enroll in the planwill be covered for individual or family coverage as applicable.

 

***2.  Insurance Benefits - Retirees***

 

A.  The following identifies requirements forretirement from the Company with respect to benefit continuation eligibilityand benefit coverage.

 

1)  Retirees are defined as employees whoterminate their employment with the Company, and are, at the time oftermination, at least age sixty-five (65) or are eligible for Medicarebenefits, and have at least ten (10) years of service with the Company.

 

2)  Early Retirees are defined as employees whoterminate their employment with the Company, and are, at the time oftermination, at least sixty (60) years of age, and who have at least ten (10)years of service, but are not yet eligible as Retirees.   Early Retirees who leave the Company, butwho later meet the eligibility requirements as Retirees will be consideredthereafter to be eligible for benefit continuation and coverage for Retirees.

 

B.  Early Retirees may continue on the activeemployee’s medical, prescription and dental plans described above until age 65or until they become Medicare eligible. Such coverage will also apply tospouses of retirees.  The coverage,active or Medicare, will depend of the spouse’s age.

 

(1)          A monthly co-pay perhousehold, payable in advance, for all employees who retire prior to age 65, or

 

(2)          When an Early Retiree istotally disabled, continuation will remain in effect by paying the currentactive co-pay.  Continuation will beavailable for a period of up to two (2) years provided the early retiree doesnot become eligible for Medicare.  Aftertwo years the early retiree can remain in the active employees’ plan by payingthe  monthly medical co-pay until theyare 65 years of age.  At 65 years theemployee will be transferred to Medicare coverage as provided under the lengthof the contract.

 

(3)          Early retirees spouseswill have 6 months of additional coverage beyond the death of the RBC earlyretiree,  provided, the spouse continuesto pay the monthly medical co-pay.

 

C.  Retirees age 65 who become Medicare eligibleare no longer eligible for coverage under the active employee benefitplans.  They are eligible for thefollowing coverages for the life of this contract:

 

(1)          Life insurance in theamount of $6,500 procured and paid by the Company.

 

(2)          Any retiree may purchaseand pay for any Medicare supplemental coverage and upon proof of purchase willbe reimbursed the Company’s portion of the monthly premium for the life of thiscontract.

 

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(3)          Surviving spouses willcontinue to receive the Company’s monthly Medicare reimbursement for 6 monthsbeyond the death of the RBC retiree provided they submit proof of continuedinsurance coverage.

 

C. ***3.  Insurance Plans - GeneralInformation***

 

A.  Terms of any contract issued by an insurancecompany shall be controlling in all matters pertaining to benefits thereunderand it is understood that the grievance procedure of any collective bargainingagreement between the parties hereto shall not apply to this plan of insuranceor any insurance plan in connection therewith.

 

B.  All insurance is term insurance withoutcash, loan or paid up values.

 

C.  All of the benefits provided under a healthcare carrier to an employee or his dependents, if any, are subject to thecoordination of benefits provisions of the medical care contract.

 

***4.  Insurance Plans - Termination of Employment***

 

**A.  TERMINATIONSCHEDULE**

 
|                               |   | **Life**                      |   | **AD&D/Medical/Dental/  Prescription Drugs**                                                          |
|------------------------------------|--------|-------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                               |   |                          |   |                                                                                                      |
| Quit                               |   | Same day                      |   | Same day                                                                                                  |
| Discharge                          |   | Same day                      |   | Same day                                                                                                  |
| Layoff                             |   | Six months  Same day AD&D |   | Six months – Medical                                                                                 |
| Services                           |   | Six months                    |   | Same day                                                                                                  |
| * Leave of Absence                 |   |                          |   |                                                                                                      |
| Personal                           |   | Six months                    |   | Sixty days                                                                                                |
| Union                              |   | Six months                    |   | Six months                                                                                                |
| Sick or Injury  (Non-Occupational) |   | One year                      |   | One year                                                                                                  |
| Maternity                          |   | Six months                    |   | Nine months from date of leaving or upon completion  of pregnancy whichever occurs first.                 |
| Sick or Injury  (Occupational)     |   | Six months                    |   | Until seniority acquired on last day worked is  equaled by the period of time involved in the disability. |
| Retirement                         |   | Same day for AD&D only    |   | As per contract and age at retirement                                                                     |
| Strike                             |   | Suspended                     |   | Suspended                                                                                                 |

 

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**Following the applicable period of subsidized coverage by the Company, employeesmay pick up Life Insurance premiums through the Company to continue coveragefor the duration of the Leave of Absence.*

 

A.  Employees on Leave of Absence are expected to maintain coverage by paying theappropriate medical co-pay.  It is theirresponsibility to contact the HR Department to arrange for payments.  Once Company subsidized coverage is ended,employees may continue coverage under COBRA.

 

B.  Employees who request and receive severancepay in a lump sum as outlined in this Agreement will thereafter have no furtherrights to company-paid benefit continuation as described in this Article, butmay continue coverage under COBRA.

 

C.  Employees who are recalled from layoff andare subsequently laid off again within one month of the recall date, will notbe eligible for insurance continuation as described above, but rather, allinsurance will be terminated as of the last day of work and they can apply forCOBRA.

 

D**.**  In no event will Company-paid insurance coverage continue forlonger than the initial six-month period. If an employee on the layoff listrefuses recall for the third time or refuses an offer of his original positionor is recalled but fails the job to which he is called his benefits will beterminated and he will be offered COBRA.

 

***5.  Insurance Coverage - Surviving Dependents***

 

The Company will maintainthe current health benefits for surviving spouses and eligible dependentchildren of deceased active members for 6 months from the date of death of theemployee for the life of this contract. The cost of this coverage will be paid by the Company.

 

**ARTICLE 32**

**WAIVEROF ANY CLAUSE**

 

A waiver of any clause inthis contract does not mean a permanent waiver.

 

**ARTICLE 33**

**NOSTRIKE-NO LOCKOUT**

 

The Company agrees thatthere shall be no lockout, and the Union agrees that there shall be no strike,walk-out, slow-down, stoppage of or other interference with work, during theterm of this Agreement.

 

**ARTICLE 34**

**DURATION OF AGREEMENT**

 

This Agreement shallremain in full force and effect until midnight, June 30, 2004, and thereaftershall continue from year to year until either party gives the other ninety (90)days prior written notice of a desire to change, modify or terminate same.  If neither party gives notice to terminatethis Agreement, but one or both of the parties gives notice as aforesaid of anintention to change or modify any of the terms or provisions of this Agreement,then within ten (10) days after such notice or not less than thirty (30) daysprior to the expiration of this Agreement, representatives of the Company, andthe Union shall meet to discuss, negotiate, and, if possible, agree upon suchchanges.  In the event such Agreementcontinues beyond the expiration date of this Agreement, then the terms andconditions of this Agreement, shall remain in full force and effect until suchtime as said negotiations have terminated, either by reason of the inability ofthe parties to finally conclude a new Agreement, or because a new Agreementbetween the parties has been concluded.

 

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This Agreement shall be binding on the parties hereto,their executors, administrators, and successors.

 

IN WITNESS WHEREOF, theduly chosen representatives of the parties hereto affix their hands and sealsthis             day of                ,2002.

 
| FOR THE UNION: |   |               |   | FOR THE COMPANY: |
|----------------|--------|--------------------|--------|------------------|
|           |   |               |   |             |   |   |
|           |   | Joseph Csik, Jr.   |   |             |   | Steven Koltenback |
|           |   |               |   |             |   |   |
|           |   | Jeffery Mann       |   |             |   | Barbara A. Loughlin |
|           |   |               |   |             |   |   |
|           |   | Nandor Palmai, III |   |             |   |   |

 

**APPENDIXA**

 

**PRODUCTION JOBS**

 
| **Pay Rates**     |   | **7/1/01  3%** |       | **7/1/02  3.5%** |       | **7/1/03  3.5%** |       |
|-------------------|--------|----------------|------------|------------------|------------|------------------|------------|
| **Advanced**      |   | **17.48**      | ** ** | **18.09**        | ** ** | **18.72**        | ** ** |
| **Intermediate**  |   | **16.02**      | ** ** | **16.58**        | ** ** | **17.16**        | ** ** |
| **Core**          |   | **14.54**      | ** ** | **15.05**        | ** ** | **15.58**        | ** ** |
| **Basic**         |   | **12.79**      | ** ** | **13.24**        | ** ** | **13.70**        | ** ** |
| **Starting Rate** |   | **10.60**      | ** ** | **10.97**        | ** ** | **11.35**        | ** ** |
| **Hire Rate**     |   | **8.84**       | ** ** | **9.15**         | ** ** | **9.47**         | ** ** |

 

**SKILLED TRADES JOBS**

 
| **Pay Rates**     |   | **7/1/01  3%** |       | **7/1/02  3.5%** |       | **7/1/03  3.5%** |       |
|-------------------|--------|----------------|------------|------------------|------------|------------------|------------|
| **Advanced**      |   | **19.84**      | ** ** | **20.53**        | ** ** | **21.25**        | ** ** |
| **Intermediate**  |   | **18.51**      | ** ** | **19.16**        | ** ** | **19.83**        | ** ** |
| **Core**          |   | **16.89**      | ** ** | **17.48**        | ** ** | **18.09**        | ** ** |
| **Basic**         |   | **15.73**      | ** ** | **16.28**        | ** ** | **16.85**        | ** ** |
| **Starting Rate** |   | **14.12**      | ** ** | **14.61**        | ** ** | **15.12**        | ** ** |
| **Hire Rate**     |   | **11.76**      | ** ** | **12.17**        | ** ** | **12.60**        | ** ** |

 

**Monthly****MedicalCo-pay for Early Retiree:**

**$135 permonth per family**

 

**Company’s****MonthlyContribution to Supplemental Medicare Health Insurance per Retiree/Spouse:**

**8/1/01 -$43.17**

**8/1/02 -$44.47**

**8/1/03 -$45.80**

 

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**INDEX**

 

**ARTICLE**

 
| 1      | Parties to the Agreement                     |
|--------|----------------------------------------------|
| 2      | Philosophy Statement                         |
| 3      | Union Recognition                            |
| 4      | Union Security and  Check-off                |
| 5      | Non-Discrimination                           |
| 6      | Structure and  Decision-Making Process       |
| 7      | Work Performed  Outside the Bargaining Unit  |
| 8      | Training                                     |
| 9      | Probation Period                             |
| 10     | Seniority                                    |
| 11     | Layoffs and Recall to Work                   |
| 12     | Open  Jobs                                   |
| 13     | Severance Pay                                |
| 14     | Leave of Absence                             |
| 15     | Overtime                                     |
| 16     | Wages and Other  Compensation                |
| 17     | Perfect  Attendance/Service Time Award       |
| 18     | New Products                                 |
| 19     | Shift  Premium                               |
| 20     | Paid Break and Lunch  Periods                |
| 21     | Reporting Pay                                |
| 22     | Temprary Transfers                           |
| 23     | Vacations                                    |
| 24     | Holidays                                     |
| 25     | 401K                                         |
| 26     | Personal Illness/Workers’  Compensation |
| 27     | Safety and Health                            |
| 28     | Union Facilities                             |
| 29     | Dispute Resolution                           |
| 30     | Living Agreement                             |
| 31     | Insurance                                    |
| *32*   | Waiver of Any Clause                         |
| *33*   | No Strike – No Lockout                  |
| 34     | Duration of Agreement                        |
|   | Appendix  A – Pay Rates                 |
|   |                                         | Company  Contribution to Retiree |
|   |                                         | Health  Insurance |
|   | Index                                        |
|   | Memorandum of  Understanding #1              |
|   | Memorandum of  Understanding #2              |

 

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**MEMORANDUMOF UNDERSTANDING NO. 2**

***Transition Issues***

***Pay and Benefits***

 

A.  In connection with 1996-97negotiations, the parties have agreed to a new pay structure which will go intoeffect when the three-classification and pay for knowledge and skills system isinstituted.  The parties have alsoagreed to certain general increases and a flexibility increase, as described inArticle 16 of the Agreement.  Inapplying these increases, the parties have reached the followingunderstandings:

 

1.  Employeeswill be provided training opportunities with a goal of completing each level oftraining within their classification in the time indicated in Appendix A orless.

 

2.  When alevel of training has been satisfactorily completed as of June 1st, theemployee will thereafter be paid at the rate of pay of the level attained or athis then current individual rate of pay, whichever is higher.

 

3.  Allemployees will begin training by June 1, 1997.

 

4.  An employeewho has been at work and available to accept training opportunities and who,through no fault of his own, has not been offered the training necessary tocomplete a level of training, will be paid at such level commencing with theend of the training year, June 1.

 

5.  The oneyear training period may be extended by mutual agreement to accommodate anemployee who has not satisfactorily completed a level of training by June 1,such extensions to be determined on an individual case-by-case basis.

 

B.  The parties have also agreedto eliminate the incentive pay clause which appeared in Article 20, paragraph5, of the 1994-96 Agreement, effective upon the ratification of this Agreement.  It is recognized, however, that certain employeeswill not have had an opportunity to advance to the top of their former rangesat the time such clause is eliminated. The parties have agreed that such employees will continue to receiveincreases in the amount, at the intervals, and subject to the conditions setforth in such former paragraph 5, until they have received the number ofincreases they would have received if that clause had not been eliminated.

 

C.  The parties have also agreedto terminate the former defined benefit pension plan.  Termination will take place as soon as practicable after legalapprovals have been obtained, effective on the last day of a calendarmonth.  Current accruals will beconverted into annuities in accordance with current vesting schedules and legalobligations with respect to lump sum and retirement options.  It is anticipated that such terminationshall not occur until sometime after June 1, 1997, that is, until after thenext plan year begins.  Accordingly, itis anticipated that covered employee will accrue another year of service creditunder such plan.

 

As a result, effective June 1, 1998, the Company willinstitute a defined contribution plan for covered bargaining unit employees,subject to the following terms:

 

1.               Necessarygovernmental approvals and qualifications.

 

2.               An annual nondiscretionary Company contribution on behalf of each covered employee, in theamount of four (4) percent of gross wages, plus an additional contribution onbehalf of certain current older employees designed to replace the current$17.00 benefit for such employees.

 

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3.               No hardshipwithdrawals.

 

4.               No loans.

 

5.               Full and immediatevesting for current employees.  Newemployees to vest 50 percent at the end of the plan year in which two (2)years’ service is attained and 100 percent at the end of the plan year in whichthree (3) years’ service is attained.

 

6.               Quarterlyinvestment statements.

 

7.               Employees eligibleto make individual contributions up to 15 percent of gross wages.

 

8.               Investment optionsto be determined by the parties and to include at least one bond and one incomefund.

 

9.               Employees eligibleto change investments quarterly.

 

10.         Plan pays administrativecosts up to a limit of $20,000 per year over and above forfeitures.

 

11.         Upon retirement ortermination, employee may take vested amounts in cash, may leave funds in Plan(if they exceed $3,500), may roll over his funds or may direct the Plan topurchase an annuity on his behalf.   Thecost of purchasing such an annuity shall be an administrative expense of thePlan, subject to paragraph 10 above.

 

12.         The precise terms aresubject to drafting by legal and financial consultants to be retained by theCompany and will be reviewed further by the parties.

 

D.  Finally, the Company hasagreed to pay each employee who was a member of the Union negotiating committeeeight (8) hours of pay at straight time rates, less deductions required bylaws, for each day when the parties engaged in collective bargaining and theemployee was thereby unable to report for work on his regularly scheduledshift.

 

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**MEMORANDUMOF UNDERSTANDING NO. 1**

***Transition Issues***

***Work Group Issues***

 

 

This Memorandum of Understanding outlines the process of transition ofcurrent employees to Product Line focused Work Groups.  The Bushing Work Group has been identifiedas the Experimental Work Group for greater employee involvement andparticipation.   As the members of theWork Groups are identified, the traditional departments will be eliminated, andgroup members will begin to function as a Work Group, even though they may notbe physically located in the same area. The physical transition of machines and equipment to Product Line WorkGroups is expected to be completed no later than December 1999.

 

Any issues not specifically addressed in this Memorandum ofUnderstanding No. 1 will be handled through the procedures and philosophystatement of the Agreement.

 

**1.  *Establishing the Work Groups***

 

Within two (2) weeks after the ratification of the Agreement, theCompany will identify the specific technical skills required in each Work Groupto insure production requirements can be met during the transition period.

 

The jobs will then be posted and the Plant Council will selectemployees by seniority, insuring that the required technical skills identifiedby the Company are included in each Work Group.   Once employees are assigned to a Work Group, they may be askedto work on any job within their classification (either Production, SkilledTrades Maintenance, or Skilled Trades Tool & Die Maker).  Employees may be asked to work in their sameclassification in another Work Group if needed for business reasons.  At that time, current job descriptions andjob classes will no longer apply.

 

Each Work Group will then select a representative to serve asspokesperson to others outside the group.

 

**2.  *Developing the Pay for Skill and Knowledge Program***

 

The Training and Education Committee will identify the skills andknowledge required for each level of the Pay for Skill and Knowledge system,the method of training, and the measure of successful completion for each ofthe three job classifications.  ThePlant Council shall use its best efforts to retain the services of the trainermentioned in Article 8 of the Agreement within one month after ratification, ifpossible, to assist the Training and Education Committee in this effort.

 

As a guideline, the Basic and Core levels will consist of basiceducation requirements in such areas as safety, trade unionism, andintroductory accounting, team building and problem solving and will consist ofjob skills generally associated with the present Class 1 and Class 2 jobs.  The Intermediate and Advanced levels willconsist of further business, group management, and problem solving training, aswell as job skills generally associated with the present Class 3 and Class 4jobs.

 

The Training and Education Committee along with the Work GroupRepresentative and the Work Group Supervisor will develop individual trainingplans for the first six months to allow all employees to meet the Basic leveltraining requirements within one year (by June 1, 1998).  The plans will be submitted to the PlantCouncil for final approval.

 

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The Education and Training Committee along with the members of the WorkGroup will be responsible for insuring that employees are given the trainingidentified on their individual training plan or rescheduling within areasonable time period.

 

The Education and Training Committee will have developed andimplemented the individual training plans by June 1, 1997.

 

**3.  *Group Management***

 

Initially, all Work Groups will be managed in a traditional sense withthe Supervisor retaining group management responsibilities.   As the Bushing Work Group completestraining for problem-solving, decision-making, group management, schedulingwork, and accounting it will begin taking on those responsibilities.  The other Work Groups will continue to bemanaged more traditionally through a supervisor, but may increase the employeeparticipation in the management of the Work Group as mutually agreed by theWork Group and members of the Plant Council, after evaluating the effectivenessof this approach in the Bushing Work Group.

 

It is understood that the twenty (20) hours per week given to the UnionPresident for the performance of Union business (see Article 6) is intended tocover all his normal functions, such as attendance at Plant Council meetings, trainingas a Union official, answering employee or retiree inquiries, investigatinggrievances, etc.  In this connection,the parties recognize that, in contrast to the 1994-96 contract, thesefunctions no longer include a formal daily tour of the plant.

 

**4.  *Area/Machine Layout***

 

Each Work Group (including both represented and non-representedemployees and supervisors) will determine the most effective machine layout ofthe manufacturing area and will develop a plan for moving the equipment(including timetables).  The BushingWork area will be established first.

 

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