**Exhibit10.10**

 

**AGREEMENT**

 

**Between**

 

**NICE BALL BEARINGS, INC.**

**AN RBC COMPANY**

 

**and**

 

**UNITED STEELWORKERS OF AMERICA(AFL-CIO)**

**LOCAL 6816-12**

 

**OCTOBER 23, 1999**

 

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**TABLE OF CONTENTS**

 
| **ARTICLE** |
|-------------|
|        |   |
| 1           | Parties  to the Agreement |
| 2           | Philosophy  Statement |
| 3           | Union Recognition |
| 4           | Management  Rights |
| 5           | Union Security and  Check-off |
| 6           | Non-Discrimination |
| 7           | Structure and  Decision-Making Process |
| 8           | Work Performed  Outside the Bargaining Unit |
| 9           | Training |
| 10          | Probationary  Period |
| 11          | Seniority |
| 12          | Layoffs and Recall to Work |
| 13          | Open Jobs |
| 14          | Leave of  Absence |
| 15          | Overtime |
| 16          | Wages and Other  Compensation |
| 17          | New Products |
| 18          | Shift Premium |
| 19          | Temporary  Transfers |
| 20          | Vacations |
| 21          | Holidays |
| 22          | Safety and  Health |
| 23          | Union Facilities |
| 24          | Dispute Resolution |
| 25          | Living Agreement |
| 26          | Insurance |
| 27          | Pension  Benefits |
| 28          | Waiver of  Any Clause |
| 29          | Good Faith |
| 30          | General |
| 31          | Plant Shutdown |
| 32          | Duration  of Agreement |
|        |
|        |
| APPENDIX A  |
| APPENDIX B  |

 

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**ARTICLE 1**

**PARTIESTO THE AGREEMENT**

 

This Agreement is enteredinto between NICE BALL BEARINGS, INC. – AN RBC COMPANY (“RBC” or the “Company”or the “Employer”) and the UNITED STEELWORKERS OF AMERICA, AFL-CIO, on behalfof itself and the members of Local Union No. 6816-12 (the “Union”).

 

**ARTICLE 2**

**PHILOSOPHYSTATEMENT**

 

We understand that ourprimary responsibility is to manufacture quality bearing products, and providea service that satisfies our customers’ needs. Everything we do in manufacturing, customer service, and administrationmust be of the highest quality possible. These efforts should be accomplished in an environment that is costconscious, effective, continually promotes openness and trust and strives toachieve continuous growth of the business.

 

We believe that peoplewant to be involved in decisions that affect them, care about their jobs andeach other, take pride in themselves and in their contributions and want toshare in the success of their efforts.

 

Making progress towardthese mutually agreed upon goals will require a relationship of mutual respect,open communication, shared success, mutual aid, innovative problem solving, andshared decision-making.  The partiesagree that in order for the Union to effectively represent its members, theUnion must have a role in the decision-making process that affects itsmembers.  It is the intent of the Unionand RBC to create a workplace that recognizes the need for people to be treatedwith respect and dignity and recognizes that collective bargaining can be anessential and constructive force in our plant. All parties in this Agreement will strive to make the Kulpsville plantof RBC the best of its kind in the marketplace; making the highest qualityproduct; a cost effective, profitable operation; a coveted place to work, and aresponsible member of the community.

 

It is in this renewedspirit of mutual respect and recognition of each other’s stakes and equitiesthat this Agreement is entered into and agreed upon.

 

A**RTICLE 3**

**UNIONRECOGNITION**

 

The Company recognizesthe Union as the certified collective bargaining agent for all of itsproduction and maintenance employees engaged on jobs at its plant inKulpsville, Pennsylvania, excluding clerical employees, general officeemployees, and supervisory employees pursuant and subject to the provisions ofthe Labor-Management Relations Act of 1947 and amendments thereto.

The Company recognizesthe right of labor to organize in order to promote the interests and welfare oflabor and to bargain effectively and will not interfere with the right ofemployees to become members of the Union, nor will it discriminate againstemployees for filing or causing to be filed a just grievance or because ofmembership in the Union, or against any officer or representative elected orappointed to act in behalf of the Union pursuant to the terms of the Agreement.

 

**ARTICLE 4**

**MANAGEMENTRIGHTS**

 

The Union recognizes thatthe management of business and the direction of its workforce are exclusivelythe right of Management in all respect not inconsistent with the specificprovisions of the Agreement or any law, and it is understood that any mattersnot covered with respect to same shall rest within the sound discretion ofManagement.  Management will receive andconsider any suggestions from the Union with respect to the exercise of therights herein reserved.

 

**ARTICLE 5**

**UNIONSECURITY AND CHECK-OFF**

 

To the extent permittedby law, all bargaining unit members shall be required, as a condition of employment,to acquire and maintain membership in the Union immediately upon completion ofthirty (30) days of employment or the effective date of this Agreement,whichever is the later.

 

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The Company will providefor check-off of union dues and initiation fees on behalf of employees whorequest such a service in accordance with prevailing law.  The Company agrees to compute union dues onthe basis of earnings in the preceding month. In case of earnings of less than sixteen (16) hours, dues will not bededucted.  They will be deducted fromthe next pay which is sixteen (16) or more hours.  Further, the Company will deduct $5.00 from one pay per year forP.A.C. for those employees who have so directed.  The Union shall indemnify and save RBC harmless with respect toany claims or expenses arising out of any action taken as or not taken by RBCfor the purpose of complying with this Article.

 

**ARTICLE 6**

**NON-DISCRIMINATION**

 

The philosophy andmission of RBC are designed to be in full and complete compliance with thelegal and moral principles of equal opportunity in employment.  Accordingly, the Company and the Unionpledge, on behalf of themselves, as well as their officers, members andrepresentatives to treat all persons equally without regard to their race,color, religion, age, sex, national origin, disability, or veteran’sstatus.  Although the term “he” is usedthroughout this Agreement, it is used to represent both male and femaleemployees and is not intended to be discriminatory or exclusive in any way, butrather to simplify the language for understanding.

 

**ARTICLE 7**

**STRUCTUREAND DECISION-MAKING PROCESS**

 

The intent of the partiesis to create an evolutionary process towards a goal in which employees will beinvolved in 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 andinventory control, training, job assignment, repairs, scrap control, andscheduling time off.  It is anticipatedthat the transition towards this goal will extend over much, if not all, of theterm of this Agreement.  A Memorandum ofUnderstanding will be developed outlining this expected transition process.

.

***WORK GROUP MEMBER:***

The individual RBCemployee.

 

***WORK GROUP:***

An integrated group witha common manufacturing and support purpose related to a product or products,across all shifts.

 

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, requisition supplies, keep records, seek resources as needed, and beresponsible for job preparation and attainment of its own materials andsupplies.  It will constantly seekimprovement in quality, cost and work environment.  The Work Group will also be responsible for communicating anyproblems with the responsible function.

 

***WORK GROUP REPRESENTATIVE:***

An employee elected bythe Work Group to communicate with all shifts and participate with managementin coordinating the administrative functions of the Work Group and report atleast monthly on Work Group progress to the Plant Council.  The Plant Council may remove a Work GroupRepresentative upon petition of at least two-thirds of the members of the WorkGroup, or upon consensus of the Plant Council.

 

***WORK GROUP FACILITATOR:***

A member of managementwho will coordinate the activities of the Work Groups and provide resources asneeded.

 

***UNION PLANT COMMITTEE:***

The Union Plant Committeeis elected by the Union members according to the Union bylaws and will becomprised of the President, Vice President and Area Grievance Chairman.   However, the current committee members willcontinue in office for the balance of their term or until they resign or areremoved by the Union, whichever occurs first. Union Plant Committee members will have top seniority for layoffs andrecall purposes.  They will be assignedto serve on the Plant Council and the other committees created by thisAgreement as the Union sees fit.

 

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***PLANT COUNCIL:***

A consultative employeegroup, consisting of the Union Plant Committee and an equal number ofrepresentatives from the Company, which includes the Plant Manager or hisdesignee, who participate in decision-making processes addressing issuesaffecting the entire plant or which have not been resolved in the Work Group.  Additional members may be added by mutualagreement 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 proper causeand establishing fair efficiencies and work rules.  The Company will perform these functions in the spirit of thePhilosophy 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 and theStructure and Decision-Making framework.

 

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

 

C)                                    Decisionsmust be arrived at promptly.

 

D)                                   Adecision must provide a high level of acceptance for all parties.

 

E)                                     Oncea decision is reached, all parties must be totally committed to the decision.

 

F)                                     Anyparty may object to a proposed decision, in which event the objecting partymust propose concrete alternatives.

 

G)                                    Inthe event an alternative solution is not forthcoming, the objecting party mustre-evaluate its position in the context of the Philosophy Statement.

 

H)                                   Inthe event a decision acceptable to all parties is not promptly attainable, thematter will be referred to the Plant Council.

 

The Plant Council willalso seek to reach decisions on matters within its authority under thisAgreement by means of the consensus decision-making process outlined above,provided that, if such a decision is not promptly attainable, the Company shallhave the right to take action, subject to the Union’s right to grieve under theAgreement.

 

**ARTICLE 8**

**WORKPERFORMED OUTSIDE THE BARGAINING UNIT**

 

1.               It is not theintent of the Company to subcontract work provided there is sufficientmanpower, skills, abilities, and equipment in the plant to timely andeconomically perform the work involved.  The Company will notify the Union of scheduled subcontracting atthe weekly Plant Council meeting, including a brief description of the work tobe performed, and reasons for having it performed by an outside contractor.  If such notice is not feasible, the Companywill verbally contact a representative so designated by the Union.  The Union shall have the right to file agrievance regarding the Company’s action at Step 3 of Article 24.

 

2.               The parties shallconform to the principle that non-bargaining unit employees shall not performany operation that would deprive bargaining unit employees of their regularwork.  Non-bargaining unit employees maybe used to perform experimental work, with or without the assistance ofemployees in the bargaining unit, as management determines.  Experimental work is defined to mean allwork involved in the development of new, different or modified products, parts,tools or equipment.  Non-bargaining unitemployees may also be used in cases of emergency or training.

 

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**ARTICLE 9**

**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 will be established to develop, schedule and manage the training andeducation process.  Two (2) employeesselected by the Union Plant Committee and two (2) employees selected by thePlant Manager will constitute the Training and Education Committee.  The minimum training and education requirementfor each employee will include either on-the-job training to learn to performspecific skills and/or classroom training on subjects necessary to comply withthe Philosophy Statement of this Agreement. The Training and Education Committee will work with the members of theWork Groups to develop, schedule, and implement training and educationprograms.  An employee whose applicationfor training is approved and scheduled by the Training and Education Committeeshall be trained in accordance with that training schedule.  If an employee is at work and available toaccept training opportunities, but does not receive training in accordance withsuch schedule through no fault of his own, the employee will be paid at thelevel he would have attained if the training had been provided in accordancewith the schedule unless such training is prevented or delayed by unforeseencircumstances or by circumstances beyond the Company’s control.

 

The Training andEducation Committee will develop a training and education plan that willinclude necessary skills and education for the implementation of thisAgreement.  This plan will include aschedule 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 will submit its initial planfor six months training and education to the Plant Council for approval withinninety (90) days of the ratification of this Agreement.  The training and education plan will includethe utilization of a qualified trainer or trainers selected by the PlantCouncil, whose duties may also include helping the parties to facilitate thetransition process.  Expenses fortraining and education will be borne by the Company or through grants whereavailable.  After the initial trainingand education plan, the Committee will submit a plan every six (6) months forapproval.  Training will begin withinthirty (30) days of the approval of the initial plan, which must be finalizedwithin two (2) weeks of its submission.  In the event the members of the Committee shall fail to reach consensuson any aspect of the plan, the opposing views shall be submitted to the PlantCouncil 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

•team building

 

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

 

**ARTICLE 10**

**PROBATIONARYPERIOD**

 

1.               An employee mayacquire seniority rights by working ninety (90) continuous days, in which eventthe employee’s seniority will date back ninety (90) days.  When an employee acquires seniority, hisname shall be placed on the plant seniority list.  New employees who have worked less than ninety (90) calendar daysshall be classified as probationary employees. There shall be no responsibility for re-employment of such employees ifthey are laid off or discharged during this period.

 

2.               Benefits for newlyhired employees will begin following sixty (60) days.

 

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**ARTICLE 11**

**SENIORITY**

 

1.               Computing Seniority

 

A)          The seniority of anemployee shall be computed on the basis of the length of his service, from thedate of his last employment with the Company, subject to the provisions of thisAgreement.  When more than one employeeis hired on the same date, to establish their seniority position, their nameswill be placed on the seniority lists in alphabetical order by last name (atthe time of hire), first name, and middle name.

 

B)            An employee whoaccepts a position not within the Bargaining Unit will have ninety (90) days toreturn to the Bargaining Unit.  If theemployee exceeds this 90-day period, he will lose all rights and will return tothe Bargaining Unit only as a new employee.

 

C)            Service willaccumulate during an approved personal leave of absence, Union leave, familyand medical leave, maternity leave, sick leave, military leave, funeral leave,jury duty or layoff.

 

2.               Termination ofEmployment

 

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, if such an employee:

 

A)          Voluntarily quits hisemployment, or

 

B)            Is discharged forproper cause, or

 

C)            Is absent for three(3) consecutive working days without properly notifying the Company, or

 

D)           Fails to return to workfrom layoff within five (5) working days after being notified by telephoneunless prevented to do so because of sickness, injuries, or causes beyond hiscontrol and the Company is notified prior to the end of the fifth workingday.  In such event, he shall be given areasonable time in which to report for duty. The date of return shall not be later than one (1) year thereafter.  Such a condition shall not prevent employeesnext in service from being employed during the interim.  In instances where notification is by“overnight” mail or certified mail only, the five (5) days commence with thereceipt of the letter by the employee. In any event, if there is no response within two (2) weeks, the employeewhom the Company in unable to reach will be terminated.

 

E)             Fails to return towork at the end of an approved leave of absence or gives a false reason forobtaining a leave of absence, or

 

F)             Passes the time limitfor recall from layoffs.

 

3.               For purposes oflayoff and rehire, the officers of the Union shall have seniority in thefollowing order:  President, GrievanceChairman, Vice President and Grievance Committee providing they have theability to perform whatever jobs are available.  No layoff notice is required if one of the aforementioned leaveshis office.  The Union agrees to keepits list of officers and stewards up to date and will hold the Companyblameless if the list is not kept current.

 

**ARTICLE 12**

**LAYOFFSAND RECALL TO WORK**

 

1.       Layoff Provisions

 

A)          The Company will give atleast two and one-half (2-1/2) working days’ notice prior to layoff to theemployees affected, even if only one employee is affected, or will pay him atstraight time rate for two and one-half (2-1/2) working days in lieu of suchnotice.

 

B)            When a job iseliminated within a Work Group, the least senior employee in that Work Groupwill be 

 

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displaced.  In the event that the work group facilitatorbelieves that displacing the least senior employee in the group will deprivethe group of skills needed to meet production requirements, he will discuss thematter with the work group representative in an effort to reach agreement.  If such agreement is not immediatelyattainable, the issue shall be submitted to the Plant Council for action.

 

C)            An employee displacedfrom a Work Group may bump on the basis of plant seniority one of the leastsenior employees in the same or another Work Group.  In the event that the work group facilitator believes that suchbumping will deprive the group of skills needed to meet productionrequirements, he will discuss the matter with the work group representative in aneffort to reach agreement.  If suchagreement is not immediately attainable, the issue shall be submitted to thePlant Council for action.  The employeewill designate a job choice within 24 hours from the end of the shift on whichhe was displaced.  Employees can onlybump into a Skilled Trades job if they previously held the job.

 

D)           When a shift or part ofa shift is removed due to lack of work or reduction of work, any employeeaffected will be given the opportunity to exercise his seniority on the shiftof his choice, providing he currently possesses the skills and skill level ofthe junior employee he wishes to displace.

 

E)             When an employee isdisplaced and bumps a less senior employee, there will be no posting for a jobopportunity, but if more than one shift is involved, then subsection (D) aboveapplies.

 

2.       Recall Provisions

 

A)          If employees are laidoff and subsequent thereto it becomes necessary to increase the working forcein any Work Group, rehiring shall begin with the most senior qualifiedemployee, regardless of which work group he was laid off from.  He will be paid according to the skill levelin the Work Group to which he has been recalled.

 

B)            If an employee on therecall list is offered regular, full-time re-employment in the same Work Groupand shift as previously held, and he refuses to accept it, he will be droppedfrom the recall list and no longer have any rights under this Agreement.

 

C)            If an employee on therecall list is offered regular, full-time re-employment in a different WorkGroup or shift, and he refuses to accept it, he will remain on the recall listuntil such time as he is offered another opportunity to return to work.  A third refusal to return to work will causesuch employee to be removed from the recall list and no longer have any rightsunder this Agreement.  In order to countas a “refusal” for purposes of the preceding sentence, the offer which thelaid-off employee refuses must have been received at least one month subsequentto the prior offered he refused.

 

D)           The Company shallnotify eligible employees by telephone, where possible, to report for work andconfirm it by “overnight” or certified mail to the last known address, andshall give a copy of such notice to the Union at the same time.  If such employee does not report within five(5) working days after being notified by telephone, he shall lose his seniorityunless he is prevented from returning due to sickness, injuries, or causesbeyond his control, and the Company is notified prior to the end of the fifthworking day.  In such event, he shall begiven a reasonable time in which to report for duty.  Such a condition shall not prevent employees next in service frombeing employed during the interim.  Ininstances where notification is by “overnight” or certified mail only, the five(5) days commence with the receipt of the letter by the employee.  In any event, if there is no response withintwo (2) weeks, the employee whom the Company is unable to reach will be terminated.

 

E)             Alaid off employee will remain on the recall list according to the followingtime limits:

 

SENIORITY TIME LIMIT

 
| Probationers     |   | No Recall           |
|------------------|--------|---------------------|
| Non-probationers |   | 3 years (36 months) |

 

 

3.                    TheCompany agrees to notify the Union immediately, in writing, of all temporaryand permanent layoffs, resignations, discharges and transfers.

 

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4.                    Itshall be the duty of the employees to advise Human Resources, in writing, oftheir proper home addresses, and any notice sent by the Company by “overnight”mail or certified mail to the last known address of record with the Companyshall be considered proper notice.  TheCompany agrees to inform the Union of new or corrected addresses.

 

**ARTICLE 13**

**OPENJOBS**

 

1.                    Filling OpenJobs

 

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

 

1)              TheCompany will post notice of such opening for seventy-two (72) hours.  Employees who wish to apply for the openingmust do so by submitting a completed Job Vacancy Application to their workgroup facilitator during the posting period.

 

2)              Ifa job is posted when an employee is on vacation, workers’ compensation or anapproved leave of absence for reasons named in Article 14, Section 1, thatemployee will be given three (3) days in which to bid on the opening upon hisreturn, provided he will be returning from leave in a reasonable period oftime.  In the event that awarding of theposted job is delayed as a result thereof, the employer shall have the right tofill the position during the interim with the next most senior applicant who isqualified under 3, below.

 

3)              Applicantswill be awarded the open job on the basis of seniority and possession of theskill level required to perform the job. In the event that there are no applicants who currently possess therequired skill level, the job will be awarded on the basis of seniority and anaptitude to perform the job.

 

4)              Allawards to open jobs will be posted within five (5) working days.  A successful bidder will be transferred tothe open job within thirty (30) calendar days after he is designated, unlessthe Plant Council determines that his transfer within that time period would bedetrimental to his current Work Group.

 

B)            Whenan open job exists in one of the Skilled Trades classifications, the Companymay determine whether to train or hire on the outside.  If the Company decides that the posting andbidding procedure outlined in Subsection A above shall be utilized, the jobwill be awarded on the basis of seniority and aptitude.  However, employees who have previously heldthe job in the Skilled Trades classification in which the open job exists, willbe given priority.  Those employeesbidding for the job who have not previously held the open Skilled Trades jobwill be required to take a standard skills assessment test to verifyqualification and aptitude for successful performance, and must hold anyapplicable certifications.

 

2.       Successfulapplicants will receive a rate of pay commensurate with their classificationand level of 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.       If theemployee is disqualified within a period of sixty (60) days, he shall return tothe original job classification he held at the time of the job award.  Such employee shall then be restricted frombidding out of his classification for a period of six (6) months, except tofill a position that would otherwise be sent out for hire.

 

5.       If anemployee disqualifies himself within a period of sixty (60) days, he shallreturn to his original job classification he held at the time of the jobaward.  Such employee shall then be restrictedfrom bidding out of his classification for a period of six (6) months, exceptto fill a position that would otherwise be sent out for hire.

 

6.       In theevent work is transferred from one Work Group to another on a permanent basis,the affected employees will be given the opportunity of moving with fullseniority to the new Work Group.

 

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7.       Everysix (6) months, the Company shall place in each Work Group a plantwideseniority list.

 

8.       TheCompany agrees when a vacancy exists within the bargaining unit for a higherposition or skill level (to include all promotion, upgrading, transfers andreassignments), present employees will be considered for these positions beforenew employees are added to the workforce. The Company will carefully and impartially consider the ability,experience, past performance, interest demonstrated and any otherqualifications of the candidates for these vacancies in order of seniority.  The Company will give the applicant acceptedan appropriate opportunity to demonstrate his proficiency.

 

A)  The following procedure shall apply forposting of open positions:

 

Post as job opportunity(post for three (3) days plantwide).

 

Procedure to be followedin making awards (plantwide):

 

a)              seniority

b)             skilland ability

c)              plantwiderecall

d)             outsidehire

 

B)  Any interested employee may make applicationby filling out a Job Vacancy Form in triplicate.  One copy shall be given to the Union and one copy to the HumanResources Manager.  If the Company postsan open position and later decides to withdraw the open position, it isunderstood that the Union will be notified of such withdrawal.

 

9.                    Anyproposed mechanical aptitude or other test deemed necessary by the Training andEducation Committee, and individual results, will be reviewed with the UnionPresident or his designated substitute. Employees who are applicants for the open positions will be entitled torepeat tests previously taken.  Senioremployees who pass the test will not supplant junior employees who have passedprevious tests and are in training.

 

10.              Whenan opening exists on any shift, the most senior employee who currentlypossesses the required skills on another shift, and who requests such shiftassignment, may transfer into the vacancy. Application for such transfer must be made within three (3) working daysof posting of the opening.

 

**ARTICLE 14**

**LEAVE OFABSENCE**

 

1.       Typesand Conditions of Leave

 

*A. Personal Leave*

 

A personal leave ofabsence shall be understood to mean an absence from work without pay, requestedby an employee and consented to by the Company, covering an agreed period oftime and for reasonable cause.  TheUnion shall be notified of any such leave prior to commencement thereof and ofany extension thereto.  Personal leavesof absence will not be granted for the purpose of allowing an employee to takeanother position temporarily, try out new work, or venture into business forhimself.

 

*B. Union Leave*

 

Upon written request bythe District Director, United Steelworkers of America or his designatedrepresentative, a leave of absence not to exceed two (2) years will be grantedto members of the Union selected to work full time for the Union in an officialcapacity.  Such leave of absence will bewithout loss of seniority, but no other benefits shall apply during the term ofsuch leave.

 

Employees selected andappointed as delegates to any Union meeting, conference or conventionnecessitating a temporary leave of absence shall be granted such leave ofabsence without pay and without loss of seniority.

 

Employees elected topublic office or appointed to non-civil service positions shall be granted aleave of absence not 

 

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to exceed four (4)years.  Neither seniority nor benefitsaccumulate during the term of such leave.

 

Upon proper notification,any two (2) employees assigned by the Union to engage in activity relevant topolitical elections, will be excused from work on the day in question.

 

*C. Sick Leave*

 

An employee, who maybecome ill or injured and qualify for non-occupational disability, and hassupported his absence with satisfactory evidence similar to that required underthe Company’s Family and Medical Leave policy, shall, upon application, be grantedan unpaid leave of absence.  Theemployee must provide medical evidence of continued disability as required.

 

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 available andhe has the seniority to do so.  If theleave was an approved FMLA Leave for personal disability, he will return to hisprevious 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.

 

Employees on sick leavewill be removed from the active payroll. However, if an employee is not on the active payroll on 12/31 butreturns to work on or before 3/31 of the succeeding year and works at leastthirty (30) days in that year, that employee will be eligible for full vacationbenefits.

 

Employees on sick leavefor one (1) year or more will be taken off the payroll.  Those employees will not lose any rights tolife insurance or medical insurance, or any other accrued rights, and will bereinstated at full accumulated seniority if and when they are able to return towork.  However, for employees with lessthan ten (10) years of service, all benefits will cease after one (1) year.

 

During the period inwhich A&H benefits are paid, hospital coverage and life insurance willcontinue.

 

*D. Family and Medical 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.**             MaternityLeave*

 

Employees absent fromwork due to pregnancy shall be granted sick leave as described above, providedthe required application, approvals, procedures and proof of medical disabilityare followed as outlined in the Company’s FMLA Policy and conform to currentapplicable laws concerning maternity absences. A leave of absence for pregnancy may be extended up to three (3) monthsfollowing delivery, without loss of seniority or service.  In all instances, upon returning to workfollowing a delivery, a statement must be presented from the family physicianstating the employee is physically capable of performing her regular jobassignment.

 

*F.  Funeral Leave*

 

An employee will begranted three (3) days off with eight (8) hours straight time pay in the eventof a death in the immediate family for the purpose of arranging and attendingthe funeral; the immediate family being mother, father, spouse, children,brothers, sisters, half-brothers, half-sisters, sister-in-law, brother-in-law,mother-in-law, father-in-law, son-in-law, daughter-in-law, step-parents,step-children, grandparents and grandchildren. One (1) of these three (3) days may follow the funeral.

 

An employee will be givenone (1) day off with eight (8) hours straight time pay to attend the funeral ofa step-parent of a spouse.

 

If a death occurs in theimmediate family of an employee while he is on vacation, that employee will beentitled to

 

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three (3) consecutivedays off immediately upon conclusion of the vacation period.

 

*G.  Jury Duty*

 

In case of jury duty, theCompany will make up the difference in pay between jury duty pay and straighttime pay by the Company for forty (40) hours per week.  Such compensation shall be payable only ifthe employee gives the Company prior notice of such jury duty call and presentsproper evidence as to the jury duty performed.

 

The Company will pay upto eight (8) hours for employees who lose time from work due to necessity ofgoing to the Courthouse either to qualify for or to be excused from jury duty.

 

If an employee is on juryduty and death occurs in the immediate family, the employee will be coveredunder terms outlined in Section 1(F) above.

 

If an employee is on juryduty and is released for any reason, he shall have the option of reporting towork or having an excused absence.  Thisoption may be exercised only one (1) day in any one (1) week period and onlyafter notification to the Company.

 

If an employee is on juryduty and “daily” overtime is scheduled in that period, the employee will not beentitled to work such overtime. However, that employee will be entitled to work overtime if it isscheduled on a weekend.

 

*H.  Military Leave*

 

Any employee who isrequired to attend Military Reserve Training encampment shall be excused fromwork for up to two (2) weeks and shall be paid up to two (2) weeks thedifference between his military pay and what he would have earned while workingfor the Company, up to a maximum of eighty (80) hours.  The employee must present proof of his grossmilitary pay before any payment is made.

 

All veterans of World WarII, the Korean War, or Vietnam or situations arising therefrom, who previous toinduction were employed by the Company and who have returned within ninety (90)days after their discharge from War Service shall be compensated for any losttime for medical checkup for injuries received in World War II, the Korean War,Vietnam, or situations arising therefrom, so long as the maximum compensationshall not exceed eight (8) hours in any thirty (30) day period.  Regulation governmental procedure shall beobtained in certification of a veteran’s incapacity; proper governmentalidentification in the form of documentary evidence shall be submitted to thePlant Manager in such cases.  In thecircumstances of Malaria, such veteran would be treated in accordance withgovernmental regulations by a physician duly appointed by the government.  The Company will comply with all existingFederal and State statutes pertaining to veteran’s rights and benefits.

 

2.  Leave Provisions

 

A)   All requestsfor permission to take personal leave of one week (5 days) or more shall besubmitted to the Human Resources Manager. Requests for less than one week (up to a maximum of ten (10) days peryear in the aggregate) may be submitted to the Work Group Facilitator.  Approval of such requests is at thediscretion of the Human Resources Manager or the Work Group Facilitator, as thecase may be.

 

B)    Employeeswho are approved for Personal Leave, Union Leave, Sick Leave, Military Leave(except for yearly two-week encampments), Family and Medical Leave andMaternity Leave will be granted such leave without pay.

 

# **ARTICLE15**

**OVERTIME**

 

1.               Thecontracting parties hereby agree that the normal work day shall be eight (8)hours and that the normal work week shall be five (5) consecutive days,commencing Monday and ending Friday.  Itis agreed that the present working schedule shall remain in effect, and thatany change in established schedules shall be decided in the Plant Council.  This shall not be construed as a guaranteeof hours of work per day or per week.

 

2.               Startingtimes and shifts will remain in effect for the length of this contract.  Any change must be decided in the

 

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Plant Council.

 

3.               Curtailmenton a partial work group or plantwide basis will be as follows:

 

A)          TheCompany representatives on the Plant Council will notify the Unionrepresentatives on the Plant Council three (3) days prior to curtailment exceptfor circumstances beyond the control of the Company.

 

B)            Ona partial work group basis, work will be performed by immediately qualifiedemployees in line of seniority.

 

C)            Ifcurtailment exceeds five (5) consecutive days duration, the Company will thenrevert to the layoff provisions of this contract.

 

D)           Ifcurtailment occurs for one (1) or more days in a work group, the Company willattempt to place the affected employees in other work groups withoutinterfering with employees in those work groups.  An employee may also opt to take time off without pay or to usevacation time.

 

4.               Allwork in excess of eight (8) hours per day on any regular working shift or allwork in the work week in excess of forty (40) hours shall be paid for by theCompany at a rate of one and one-half (1 1⁄2) times the regular rate.

 

5.               Allwork performed on Saturday shall be paid for at one and one-half (1 1⁄2) timesthe employee’s regular hourly rate, and all work performed on Sunday shall bepaid for at two (2) times the regular hourly rate.  However, management will not be obligated to give Saturday andSunday work to any employee who has lost a scheduled day or more Monday throughSaturday of that week.  This shall applyeven though the employee may have worked less than forty (40) hours during theregular work week.  Before an employeeis denied an overtime opportunity because of absence, the Work GroupFacilitator will contact the Human Resources Manager to prevent any unjustapplication of this rule.

 

6.               Aholiday shall be counted as a day worked for purposes of overtime computation.

 

7.               Whenin the judgement of management, overtime is required for a given work group,the regular employees assigned to the work group shall be given preference overother employees to accept such overtime, provided that they have the ability todo the work available.  All reasonablemeans will be employed to equalize overtime among shifts in a work group.  Any questions as to the qualifications orcapability of any employee or employees will be explained by the work groupfacilitator to the work group representative. This paragraph does not apply to the skilled trades.

 

8.               Itshall be clearly understood that the responsibility for keeping the rotatinglist up to date shall rest with the Union and further, that the Union will holdthe Company blameless for any grievance arising from the selection of workersfrom the list, providing the selection of those persons whose turn it is towork is according to the Union’s list. In the event of a mistake under this section, the employee affectedthereby shall be given an overtime makeup turn the next time overtime isscheduled in this particular work group.

 

9.               TheCompany agrees (overtime work not being compulsory) to schedule weekendovertime by 11:00 AM on Thursday, except where an emergency makes suchscheduling impossible.  Wheneverpossible, the list of employees to work weekend overtime shall be given to theCompany by the Union no later than 8:30 AM on the Friday immediately precedingthe scheduled overtime.

 

10.         Wherea work group or any employee in the work group has been on an overtime basis,an employee will receive eight (8) hours notice, wherever practical, beforereturning to his regular shift.

 

11.         Propernotification of overtime will normally be four (4) hours after the start of theshift unless the Plant Council agrees otherwise.

 

12.         Whenovertime is to be worked within a work group, employees who possess therequired skills will be canvassed on a seniority basis.

 

13.         Ifan employee is scheduled for overtime on Saturday or Sunday and reports forduty, he shall receive pay for no

 

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less than four (4)hours work.  If the employee istransferred to other work on overtime, he shall be guaranteed eight (8) hourswork at the appropriate rate of pay.

 

14.         Employeeswho are called back to work after the end of their regularly scheduled shiftwill be guaranteed a minimum of four (4) hours pay at the appropriate overtimerate.  However, when any callbackresults in consecutive hours worked just before the employee’s regularlyassigned shift those hours will be paid at the appropriate rate and hours afterthe start of the scheduled shift will be paid on a straight time basis.

 

15.         Whenan employee is transferred from one work group to another work group, he shallbe afforded the opportunity to work any scheduled overtime in the work group towhich he was transferred.  In the eventthat no overtime is scheduled in that work group, he is eligible to acceptovertime in the work group from which he was transferred.

 

16.         Theparties also recognize the need in many cases for special exception overtimeagreements, which are to be entered into promptly in writing between themembers of the Plant Council.  Thepresent exception agreements shall remain in effect unless otherwise changedwithin the Plant Council.

 

17.         Overtimemay be worked in a Work Group where layoffs exist.  If the overtime exceeds 50% of total hours worked in two (2)consecutive weeks in such Work Group the Company will immediately recall atleast one (1) employee per week for the duration of the overtime.

 

**ARTICLE 16**

**WAGESAND OTHER COMPENSATION**

 

1.               Effective October25, 1999, a general increase of  $.60will be applied to all individual rate of pay of each member of the bargainingunit.  Employees who are not on theactive roll at the time of the general increase will receive the increaseadjustment at the time they return to the active roll.

 

2.               Effective October23, 2000, a general increase of $.30 will be applied to the individual rate ofpay of each member of the bargaining unit. Employees who are not on the active roll at the time of the generalincrease will receive the increase at the time they return to the active roll.

 

3.               Effective October22, 2001, a general increase of $.15 will be applied to the individual rate ofpay of each member of the bargaining unit. Employees who are not on the active roll at the time of the generalincrease will receive the increase adjustment at the time they return to theactive roll.

 

4.               Classifications andPay for Knowledge and Skills

 

A)          The currentclassification system will remain in effect until such time that the PlantCouncil institutes a pay for knowledge and skills system, at which timeAppendix A will go into effect.

 

B)            The Training andEducation Committee will consult with all interested parties and will prepare awritten report, surveying the skills and knowledge currently possessed by theemployees in the bargaining unit.

 

C)            The new system willconsist of four classifications:

 

Production

Skilled Trades(Maintenance)

Skilled Trades (ToolRoom)

Skilled Trades(Electronic Technician)

 

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

 

Basic

Core

Intermediate

Advanced

 

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

 

D)           Each employee assignedto a Work Group will be required to complete the Basic and Core levels oftraining for that group.  Intermediateand Advanced level training shall be voluntary.  However, if management of the Work Group determines thatinsufficient intermediate and advanced levels of training are available withinthe Group, it may resort to necessary measures, which may include transfers.

 

E)             Thefour-classification and pay for knowledge and skills system is designed tocreate greater flexibility and efficiency, and is not designed to reduce thework force.   Management of the WorkGroups will be free to assign employees in accordance with the knowledge andskill levels they have attained.

 

**ARTICLE 17**

**NEWPRODUCTS**

 

1.       TheCompany has the discretion to manufacture different products, new to the plant,and may create a new Work Group or otherwise staff the production of suchproduct by means of recalling or rehiring experienced employees or by means ofnew hires.  If the Company believes thatthe skills and/or knowledge needed to produce such product on an efficient andprofitable basis are substantially different than the skills and knowledge inthe existing Work Groups:

 

A)          The Company will installa wage range for the positions;

 

B)            The wage range will beexplained in the Plant Council with the object of obtaining a consensusagreement.  The wage program may beinstalled by the Company without a consensus agreement in the Plant Councilsubject to adjustment as provided below;

 

C)            When a wage range isinstalled, the Union may process the issue in accordance with Article 24 below,including submission to arbitration of a grievance alleging that such does notbear a fair relationship to the wage structure in the plant.  The decision of the arbitrator, if any,shall be effective as of the date when the employee(s) commenced manufacturingsuch different product.

 

**ARTICLE 18**

**SHIFT****PREMIUM**

 

1.       A shiftpremium of 5% of the regular hourly rate will be paid to all employees wheneverthey are assigned to and working on the afternoon and night shifts for the lifeof the contract.  Employees are expectedto start on time and work until the end of their scheduled shift.

 

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.       Shiftsshall be identified as follows:

 

A)   Day Shift -(“A” 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)    AfternoonShift - (“B” Shift)

When the majority ofhours on an employee’s regularly assigned shift shall fall between 3:00 p.m.and 11:00 p.m., inclusive, he shall be considered as working on the AfternoonShift.

 

C)    Night Shift- (“C” 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.

 

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**ARTICLE 19**

## **TEMPORARY TRANSFERS**

 

1.               Anemployee may be transferred into another Work Group temporarily if there is agreater need in that Work Group or if there is a lack of work in the other WorkGroup.  If a disagreement arises betweenthe two Work Groups regarding the appropriateness of the transfer, the matterwill be referred to the Plant Council for immediate action.  The transferred employee shall receive therate of pay of the skill level which he has attained and will be given atransfer slip.

 

2.               Ifsenior employees are involved, they may displace junior employees in the WorkGroup, providing they possess the skill level required to perform the job, andthe junior employee will be transferred.

 

3.               Transfersmay be made for daily absenteeism within a Work Group and may continue for upto five (5) working days.  If theabsence of any employee should exceed five (5) working days, the matter will bereferred to the Plant Council for action.

 

4.               Whenlayoffs are necessary, transfers may be made from one Work Group to anotherproviding no layoffs exist in the Work Group to which transfers are beingmade.  However, such transfers arepermitted to cover temporary vacancies (a) due to vacation or disability, (b)to respond to emergencies, or (c) where employees on layoff do not possess theskills necessary to perform the work in question.  In the case of (a) or (b), the transfer shall not exceed one (1)week unless the Plant Council gives its consent.

 

**ARTICLE 20**

**VACATIONS**

 

1.               The vacation yearshall begin on January 1 and end December 31. Each employee who is on the payroll on December 31 of any year shall beentitled to receive his full vacation benefits in the ensuing year,notwithstanding the fact that his services may have been terminated in the ensuingyear prior to the receipt of vacation pay.

 

2.               Employees not onthe active payroll as of December 31, but who become active after December 31,due to recall or return from a Company approved leave of absence, will beentitled to vacation benefits for each month of service in the current vacationyear.

 

A)          In cases of employeeswith less than one year’s service, vacation benefits will be prorated asmentioned above, except that employees with less than six (6) months’ servicewill not be entitled to vacation benefits.

 

B)            If any employee electsnot to return to his work group in which he formerly worked when called by theCompany after a layoff, the employee loses the right to the vacation privilege,unless he was on the active payroll the previous December 31, in which case hewill be paid his full vacation benefit.

 

C)            All employeesreturning from layoff to a permanent job who have been paid vacation benefitsin the current year, will be entitled to take equivalent time off without pay,except such employees must work at least one month immediately upon return fromlayoff.

 

D)           When an employee islaid off, he will receive all vacation benefits due at the time of such layoff.

 

3.                    Vacationbenefits for employees hired on or before October 22, 1999 shall be as follows:

 
| **Accredited Service Prior to  12/31 of Vacation Year** |   | **Vacation**   |
|---------------------------------------------------------|--------|----------------|
| 1 year less than 3  years                               |   | 1 week 1 day   |
| 3 years less than 5  years                              |   | 1 week 4 days  |
| 5 years less than 7  years                              |   | 2 weeks 1 day  |
| 7 years less than 9  years                              |   | 2 weeks 2 days |
| 9 years less than 11  years                             |   | 2 weeks 4 days |
| 11 years less than 13  years                            |   | 3 weeks        |

 

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| 13 years less than 15  years |   | 3 weeks 1 day  |
|------------------------------|--------|----------------|
| 15 years less than 20  years |   | 4 weeks        |
| 20 years less than 25  years |   | 5 weeks 1 day  |
| 25 years and over            |   | 5 weeks 3 days |

 

A)          Employeeshired on or after October 23, 1999 will receive a maximum of four (4) weeksvacation based on the accredited service schedule above.

 

4.                    Vacationpay for each eligible employee will be computed on the basis of a forty (40)hour week at straight time for the highest rate paid for the majority of thetime worked between January 1 and June 1. The vacation pay for an employee taking his vacation prior to June 1will be based on his highest rate for the majority of time worked from January1, until he applies for his vacation. Vacations taken after June 1 will be paid at the employee’s currentrate.

 

A)          The Company agrees topay the employee his vacation pay at the time the employee takes his vacationbetween January 1 and December 31. It is provided, however, that the employee will receive his vacation payon a regular pay date and that one week’s notice be given in advance of suchpay date.

 

B)            The Company agrees topay employees only when the vacation is taken. Any employee who is scheduled for a vacation and works during thatscheduled vacation will receive their vacation pay in addition to pay foractual time worked in lieu of additional time off.  This forfeiture will not apply if prior agreement has been made.  Any employee who is scheduled for vacationmay not change such vacation except by mutual agreement between the Company andthe Union.

 

C)            An employee willreceive vacation pay for each individual day he charges to vacation.

 

D)           An employee who desiresvacation by seniority must request such vacation by March 1.  If an employee does not follow the aboveprocedure, the Company will assign his vacation.

 

E)             Individual holidayscannot be charged as vacation days.  Theonly exception will be where the holiday, or holidays, fall within theemployee’s scheduled vacation week.  Inthese instances, the employee will receive his holiday pay.

 

F)             Employees who honortheir military reserve commitments in conjunction with their vacation time arenot entitled to reserve make up pay.

 

G)            Between the dates ofJanuary 1 and June 1, and September 15 and December 31, an employee may splithis vacation week into days.

 

5.                    Anyemployee who shall have worked a full month or any fraction thereof shall begiven credit for the full month in computing earned vacation time on a proratedbasis.  An employee who returns fromlayoff or is hired on or before the 15th of the month shall be givenfull credit for that month.

 

6.                    Vacationswill be scheduled by the Work Group and approved by the Work Group Facilitatorin accordance with production requirements.

 

A)          Employeeswith the greatest seniority within a Work Group will be given preference inscheduling vacation.

 

B)            Theright of the Company to shut down for two (2) consecutive weeks of mandatoryvacation anytime from July 15 to August 15 is recognized by the Union.  In addition, the Company has the right toschedule a vacation shutdown during the final week of the year (i.e. betweenChristmas Eve and New Year).  TheCompany will notify the Union of the three (3) weeks shutdown by February 1 ofthe vacation year.  Any functionpertaining to inventory during that shutdown would be performed by individualsin the Work Group where the inventory is to take place by seniority.

 

C)            Ifthere is work to be performed in a Work Group during the vacation shutdown,employees in the Work Group without eligibility for the scheduled shutdownweeks of vacation will be canvassed for the work 

 

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on a senioritybasis.  If more employees are necessary,the jobs will be filled by employees on a seniority basis in the Work Groupwhere the work is needed.  Should theemployee requirements remain unfilled, additional employees will be canvassedfrom the master seniority list on a plantwide basis.  Employees who work during the vacation shutdown period mayrequest alternative vacation time off, by seniority and scheduled by the WorkGroup, with Work Group Facilitator approval, in accordance with productionrequirements, provided each such request is submitted during the vacationshutdown period.  Thereafter, requestsfor alternative vacation time off shall be acted upon in the order received.

 

7.                    Thevacation schedule shall be posted on or before January 15.  This schedule will give the amount of hoursthe employee has for the vacation year.

 

A)          Thevacation schedule as to the employee’s choice of vacation shall be posted ineach Work Group by April 1.

 

B)            EachWork Group shall be responsible for posting its own vacation schedule by April1.

 

8.                    Anyemployee who is on vacation for a full week shall not be eligible for overtimeassignment during any weekday or weekend falling within such vacation period.

 

9.                    Inthe event of death of any employee who was eligible for a vacation but did notuse his vacation, the amount of vacation pay to which he would have beenentitled shall be paid to his surviving spouse or legal representative inaccordance with the laws of his state of domicile at the time of death.

 

10.              Anemployee shall be permitted one instance per year of post dating a vacation dayif 24 hours notice is given, except in the case of an emergency, in which casethe 24 hour notice will be waived. Thereafter, for the remainder of the year, an employee shall only be permittedto post date vacation days when approved by the Work Group and the Work GroupFacilitator.  No post dating will bepermitted in the period between June 1 and September 15.

 

11.              Anyemployee who is absent from the Company due to sickness or personal leave ofabsence may opt to take vacation money in lieu of time off.

 

12.              Anyexception to section 11 above must be agreed upon by the Company and the Union.

 

**ARTICLE 21**

**HOLIDAYS**

 

1.                    Thefollowing holidays shall be recognized as paid holidays for all hourlyemployees (such holiday time to be from 12:01 AM to 12:00 midnight of saidholiday):

 
| Good Friday      |   | Labor Day                                           |
|------------------|--------|-----------------------------------------------------|
| Easter Monday    |   | Thanksgiving Day                                    |
| Memorial Day     |   | Day after Thanksgiving                              |
| Independence Day |   | Three Holidays to be  designated at Year’s End |

 

2.                    Hourlyrate employees covered by this Agreement shall receive eight (8) hours pay attheir regular rate, including night shift bonus, for each of the aboveholidays, no work being required.

 

3.                    Whenany of the above holidays shall fall on Saturday, the preceding Friday shall beobserved in lieu thereof as a paid holiday. When any of the above holidays shall fall on Sunday, the Mondayfollowing shall be observed in lieu thereof as a paid holiday.  When the Christmas holidays fall on Fridayand Saturday, Thursday and Friday will be observed as the holidays.  Should the Christmas holidays fall on Sundayand Monday, Monday and Tuesday will be observed as holidays.

 

A)          Anemployee who works on any one of the above mentioned holidays shall be paid atdouble time the regular established rate for hours worked plus his holiday pay.

 

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B)            Aholiday which occurs during an employee’s vacation shall not affect the periodof vacation and the employee in such cases will return to work at the beginningof the regular work week rather than a day later.  When a paid holiday occurs while the employee is on vacation, hewill receive the holiday pay in addition to vacation pay.  If a holiday occurs during an employee’svacation week, the employee may have the privilege of taking the day at a latertime – the day to be agreed upon by the Company and the individual involved.

 

C)            Aholiday shall be counted as a day worked for purposes of overtime computations.

 

4.                    Tobe eligible for holiday pay, an employee must work that first scheduled workdayafter the holiday unless he has been excused by the Work Group Facilitator oris absent for reasonable cause.  Anyemployee who is absent forty-five (45) days or more prior to any of the aboveholidays shall not be entitled to pay for such holiday.

 

5.                    Anynew employee or former employee of the Company who quits his job, or wasdischarged must, if rehired, be on the payroll for sixty (60) days beforebecoming eligible to receive holiday benefits.

 

**ARTICLE 22**

**SAFETYAND HEALTH**

 

1.                    TheCompany recognizes the importance of taking every reasonable precaution topromote and protect the health and lives of its employees and hereby agrees:

 

A)          Toabide by and maintain to the best of its ability sanitation, safety, health andsatisfactory working conditions which comply with applicable Federal, State andCounty and Municipal laws and regulations; to maintain a clean, properlylighted, heated and ventilated factory with approved safety devices; first aidand sanitation facilities as are necessary to promote the health, safety andgeneral welfare of its employees.

 

B)            Thatno employee shall be required to perform any work which will seriously endangerhis personal safety or health, provided, however, that to be justified inrefusing to perform work, an employee must be able to show that he has areasonable basis for believing the work involved would seriously endanger hispersonal safety or health.

 

2.                    Ifan employee is injured while working on the job, his pay shall continue duringthe normal scheduled work hours while he remains on the plant premises.  If an employee is sent from his job to aphysician to receive medical attention because of an injury on the job, he shallbe paid for all lost time, not to exceed eight (8) hours. If it becomesnecessary, the Company shall provide quick, comfortable transportation to thedoctor or hospital or home.

 

A)          When injured on the job,employees must use the medical facilities made available by the Company for allservices in connection with the injury for a minimum of the first ninety (90)days of treatment.  The initialappointment must be scheduled by Human Resources, except in the event of anemergency.  Any employee who bypassesthe Company facilities will act on his own responsibility insofar as theexpense involved.

 

B)            The Company may electto provide work for ill or injured employees that meets the physicalrestrictions outlined by the Attending Physician.  If the decision of the Attending Physician is disputed, theemployee shall submit to an examination by a physician selected by agreement ofthe parties.  That physician’s decisionwill settle the issue.

 

C)            Light duty work asprovided for compensable injury employees is not limited to any specificarea.  This provision will not depriveany active employee of a work opportunity, upgrade or promotion nor cause thelayoff of any active employee or block the recall of any employee onlayoff.  Where the Union can showevidence that a light duty employee is used in violation of the above, suchemployee will be removed.  The PlantCouncil will be notified when a light duty person is assigned.

 

3.                    Thereshall be a health and safety committee in the plant composed of one (1) memberto be appointed by 

 

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Management and one(1) member to be appointed by the Union. It shall be the duty of the committee to make a thorough and completesurvey of the plant weekly for the purpose of listening to any investigation ofcomplaints relating to health, safety and working conditions, ascertainingwhether conditions exist which are dangerous to the health and safety of theemployees.  There is to be no exceptionto this rule unless it is agreed upon by the Plant Council.  Any such conditions shall be reported to theFacilitator of the Work Group and Work Group Representative shall be advised sohe may check to see that correction is made as soon as possible.  If, in the opinion of the Work Group Representative,proper remedial steps are not taken, then it shall be his duty to report suchcondition to the Area Grievance Committeeman of the Union.

 

No discriminatory orpunitive action shall be taken by the Company or its representatives against aWork Group Representative who performs his duties herein imposed in goodfaith.  In case of any serious accident,all members of the Plant Safety Committee will be immediately notified andthorough examination shall be made by the full plant committee.  From time to time a representative of theWorkers’ Compensation Insurance Carrier shall attend the safety meeting.

 

A)                                  Safetymeetings shall be conducted on a monthly basis.

 

4.                    Themembers of the Health and Safety Committee shall receive their regular hourlywages for time away from their regular scheduled duties while on inspectiontours or meetings.

 

5.                    Anemployee who is permanently unable to perform his regularly assigned job as aresult of a Company incurred disability may apply for permanent transfersubject to the following conditions: The search by the Company for an appropriate job must begin by reviewingjobs held by employees with less than three (3) years seniority and continuingthe search at yearly intervals.  In noevent may the applicant displace an employee with more Company seniority.  An employee transferred under this sectionrelinquishes recall rights to his former Work Group and he carries his fullCompany seniority into the Work Group where he is placed.  The search will be conducted by the WorkGroup, and failing successful placement, the search will be continued on aplantwide basis.  The Workers’Compensation Chairperson shall participate with the employee and the Company inall compensable job searches and receive a copy of such results.

 

6.                    Ifan employee is disabled as the result of a non-compensable accident, or suffersa health problem that makes it impossible for him to perform his normal duties,the Company will attempt to place him in another job within his capabilitiesseniority permitting.  Whether theemployee’s disability is considered temporary or permanent will be determinedby the appropriate Union and Company representatives.

 

7.                    Anemployee who has, as a result of a Company incurred injury, suffered the lossof an eye or the equivalent of complete amputation of an essential body member,may apply for preferred seniority on his regularly assigned job, as long as heis physically able to perform the duties thereof.  If the injury prevents his efficient performance on his regularlyassigned jobs, he may request a transfer, whereupon the Company will attempt toplace him in a job commensurate with his skill and physical capability.  An application approved under this sectionshall mean that the employee shall not be subject to displacement as long as heis physically capable of efficiently performing the duties of that job.

 

**ARTICLE 23**

**UNIONFACILITIES**

 

No notices of Unionmatters are to be posted on Work Group bulletin boards.  The Company shall install bulletin boardswithin the plant for posting by the Union of announcements covering Unionmatters.

 

**ARTICLE 24**

**DISPUTERESOLUTION**

 

1.                    Ifany differences arise between the Company and the Union as to the meaning orapplication of any provision of this Agreement, or as to its compliance byeither party with any of its obligations under this Agreement, such differenceshall be settled in the following manner:

 

STEP 1:

1.          An oral discussion ofthe difference must take place between the employee and his Work GroupFacilitator 

 

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with the UnionRepresentative.  The Work GroupFacilitator must give his answer within twenty-four (24) hours.

2.          Ifthe difference remains unsettled, the grievanceman or his substitute may becalled to discuss the matter further, and if no settlement is reached, thenwithin seven (7) days the employee may present the grievance in writing to hisWork Group Facilitator through his Union Representative.  A written answer must be given by the WorkGroup Facilitator within seventy-two (72) hours.

 

STEP 2:

1.               Anygrievance not settled under Step 1 shall, within ten (10) days from the date ofthe Work Group Facilitator’s answer, be heard by the Step 2 GrievanceCommittee.

2.               TheUnion Step 2 Committee shall consist of the Grievance Chairman, the AreaGrievanceman, and the Shop Steward involved. Designated substitutes for any of the above are permitted.  The Union may call upon the aggrieved andany witnesses the Union deems advisable.

3.               TheCompany Step 2 Committee shall consist of the Human Resources Manager and oneother member of management, or their designated substitute.

 

STEP 3:

1.               Anygrievance not settled under Step 2 shall, within ten (10) days from the date ofthe Work Group Facilitator’s answer, be heard by the Plant Council.

2.               Eitherparty may call a reasonable number of witnesses.

3.               TheUnion’s Area Staff Representative may attend.

4.               Incase of postponement of a third step meeting by either party, such meeting willbe rescheduled by mutual agreement of the parties.

 

STEP 4:

1.               Grievanceswhich have not been satisfactorily settled in Step 3 may be filed by the Unionfor arbitration within ten (10) days following receipt of the Company’s Step 3answer.

2.               Ifthe Union submits the matter to arbitration, it shall be referred to theAmerican Arbitration Association, and an arbitrator appointed according to theprocedure of that association.  Thedecision of the arbitrator shall be final and binding on all parties.

3.               Thecost of arbitration shall be divided equally between the Union and theCompany.  No arbitrator shall have theright to add to, subtract from, or in any way modify the provisions of thisAgreement.

 

2.       Exceptfor grievances involving seniority, all grievances must be filed in writingwithin thirty (30) days of the event which led to the grievance.  In cases of grievances involving retroactivepay, retroactivity shall in no case exceed a period of more than thirty (30)days prior to the date of the filing of the grievance, except for arithmeticalerrors in calculating pay.

 

3.       AnyUnion member who is discharged or suspended for disciplinary reasons by theCompany may enter a complaint in writing within one (1) calendar week of thedate of discharge or suspension and shall take precedence over other issuespending in the grievance procedure.  Ahearing for the discharged or suspended employee will be held withintwenty-four (24) hours of the Union’s request for such a hearing, and allparties involved in Step 3 grievances will attend.

 

A)          Ifdisciplinary action is taken against an employee on the night shift and noUnion representative is present, the Company will notify the proper Unionrepresentative on the following shift.

 

B)            Shouldit be decided that an employee has been discharged or suspended without justcause, such employee will be reinstated without loss of seniority and shall bepaid for all the hours he would have worked, less any deductions required bylaw.

 

C)            Ifthe Company fails to hear a step 1 or step 2 grievance within the contractualtime limits, the grievance will move automatically to the next step of thegrievance procedure.

 

4.       The****Company agrees to continuethe past practice of paying for a reasonable amount of straight time lost inthe grievance procedure.

 

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5.       Grievances pertaining tosafety and health will automatically be inserted in step 3 of the grievanceprocedure.  Any such grievance will beheard within one (1) week of submission.

 

6.       Second step grievanceswill be scheduled as follows:

 

1st Shift –any time during the shift.

2nd Shift –2:00 PM or later.

3rd Shift –initial grievance prior to 8:00 AM

 

7.       Union officials willnotify their Work Group Representatives when they leave their jobs to conductUnion business. Further, they will provide their Work Group Representativeswith the approximate time needed.

 

**ARTICLE 25**

**LIVINGAGREEMENT**

 

In keeping with ourPhilosophy Statement, this is a “Living Agreement.”  As a “Living Agreement,” both the Union and Management understandthat there may be issues that arise during the implementation of this Agreementthat have not been addressed or discussed during bargaining.   However, it may only be modified throughconsensus of the Parties.

 

**ARTICLE 26**

**INSURANCE**

 

The Company agrees tomaintain the following Group Health and Welfare insurance plans which provideeligible employees and dependents with non-occupational medical benefits,dental benefits, life insurance, accidental death and dismemberment insuranceand disability income in the event of non-occupational accident or sickness, aswell as certain benefits for retirees.

 

1.                    InsuranceBenefits – Active Employees

 

A)          GroupLife Insurance and Accidental Death and Dismemberment Insurance in the amountof $9,000 up to age 70.  EffectiveDecember 1, 1999, each employee’s coverage shall be increased to $12,000 foreligible active employees.

 

B)            Medicalcoverage will be provided to active employees and their eligible dependentsthrough the current group medical insurance plans.  Effective January 1, 2000, all active employees and theireligible dependents will be covered by the Aetna US Healthcare Patriot X Planor its equivalent.

 

C)            Dentalcoverage shall be provided to employees and their eligible dependents throughthe current Cigna Dental Plan or its equivalent.

 

D)           Anemployee hired after October 26, 1996 will pay $9 per week toward medicalinsurance for an individual and $15 per week for a family.

 

E)             Themedical insurance coverage described in section B above will be provided toactive employees and their eligible dependents and to retired employees underage 65 and their eligible dependents under age 65 at no cost.  However, the Company’s premium costobligation is limited to the rates effective from January 1, 2000, throughDecember 31, 2000.  Thereafter, if theCompany receives a premium rate increase for the Aetna US Healthcare Patriot XPlan, the parties will meet to discuss a modification of plan or alternativeplans which might avoid the increased cost. If no agreement is reached, any monthly premium increases over and abovethe rates effective from January 1, 2000, through December 31, 2000, must bepaid by such active employee or retiree under age 65, by means of weeklypremium copayments not to exceed $5.00 per week for single coverage and $10.00per week for family coverage, as the case may be, in order to be eligible forcontinued coverage in the Patriot X Plan. In the case of active employees, payment shall be by payrolldeduction.  The obligation to makeweekly payments in this section shall not apply to employees hired afterOctober 26, 1996, whose copay obligations are spelled out in D above.

 

F)             Fordisabilities commencing after December 1, 1999, $225 per week beginning withthe first day of 

 

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accident, or the eighth day in the event ofsickness.  Benefits will be payable upto a maximum of 52 weeks for each disability. Indemnity papers will be renewed monthly if no definite date of returnis given by the doctor.

 

2.                    InsuranceBenefits – Retirees

 

A)          Presentpension retired employees under age 65 and any employee who retires before age65 under the provisions of the Pension Plan are eligible to continue coverageunder the HMO plan described in section 1B above for themselves and eligibledependents under age 65.

 

B)            Anyemployee who retires on or after the effective date of this Agreement, at age65 and over with ten (10) years or more accredited service, shall be eligiblefor coverage under an Aetna US Healthcare Medicare Risk HMO Plan.  Any such employee will have benefits cappedat whatever the cost of those benefits was on November 1, 1999, or $350 permonth, whichever is higher.

 

C)            Spousesof retired employees are also eligible for coverage under the terms of section2A above until they reach age 65 and under the terms of section 2B above afterthey reach age 65.

 

D)           Employeeswho retire on or after March 1, 1997 shall be provided with Group LifeInsurance in the amount of $2,000.

 

3.                    InsurancePlans – General

 

A)          Thebenefits listed above take effect on the dates indicated for active employeesand become applicable at the increased rates to employees on any leave ofabsence only upon their return to active employment after the respective changedates listed above.

 

B)            Shoulda statute be enacted making mandatory benefits of the same or similar nature ascovered in any manner of this Plan, such statutory benefits shall not bepyramided, but shall be offset against any benefits payable under this Plan,and it may be necessary for us to adjust our Plan in accordance with suchstatute or statutes.

 

C)            ThisPlan is subject to the insurance industry’s coordination of benefits provision(also referred to as a non-profit, non-duplication provision) as set forth inthe applicable master contracts.  Thepurpose of this provision is to permit an individual who is insured under morethan one group insurance plan to receive from all plans no more than 100% ofhis allowable medical expenses.

 

D)           Morecomplete details, including eligibility requirements, will be published in aseparate booklet which will be issued to each employee.

 

**ARTICLE 27**

**PENSIONBENEFITS**

 

1.                    Apension plan has been provided in an agreement which is separate and apart fromthis Agreement.

 

2.                    Employeeswho retire shall be paid a lump sum retirement benefit of $1,500 provided thatthey have had at least ten (10) years of Company service and reached agesixty-five (65).  Employees with atleast ten (10) years of Company service who retire between the ages of fifty-five(55) and sixty-five (65) under the 55/30, early, or disability retirementprovisions of the Pension Plan will receive a reduced lump sum benefit inaccordance with the following:

 
| **At Least** |   | **Attained Age Less Than** |   | **Amount** |
|--------------|--------|----------------------------|--------|------------|
| 55           |   | 56                         |   | $          | 750 |
| 56           |   | 57                         |   | $          | 800 |
| 57           |   | 58                         |   | $          | 850 |
| 58           |   | 59                         |   | $          | 900 |
| 59           |   | 60                         |   | $          | 975 |
| 60           |   | 61                         |   | $          | 1050 |
| 61           |   | 62                         |   | $          | 1125 |
| 62           |   | 63                         |   | $          | 1200 |
| 63           |   | 64                         |   | $          | 1300 |
| 64           |   | 65                         |   | $          | 1400 |

 

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It is understood that thelump sum retirement benefits shall be payable in addition to any vacationpayments that may be due an employee at the time of his retirement.

 

3.                    Employeeswho retire with thirty (30) or more years of Company service will receive alump sum retirement benefit of $2000.

 

4.                    Employeeswho retire on or after March 1, 1997 shall be provided with Group LifeInsurance in the amount of $2000.

 

5.                    EffectiveDecember 1, 1979, an employee with thirty (30) years or more of accreditedservice may retire, at any age, and receive a pension without actuarialreduction.

 

6.                    Thepresent minimum pension formula shall be improved by increasing the pension permonth per year of service from $27 to $30 effective for retirements on or afterNovember 1, 1999.

 

7.                    The35-year maximum service limitation used to compute the pension benefit will beremoved for those employees retiring on or after December 1, 1977.

 

8.                    Amonthly benefit will be paid to any eligible surviving spouse of any activeemployee with at least 15 years of accredited service who dies on or afterDecember 1, 1977 at any age, and has not retired.

 

A)          Aperson shall be considered a surviving spouse only if married one year, andimmediately after the employee’s death, such person is a widow or widower ofsuch employee within the provisions of the Social Security Act.

B)            Amountof benefit – the amount payable to an eligible surviving spouse will be:

a.               50%of the employee’s normal retirement pension or $100, whichever is higher, forany month before the month in which the surviving spouse reaches age 60.

b.              50%of the employee’s normal retirement pension less 50% of the widow’s (orwidower’s) Social Security benefit or $50, whichever is higher, for each monthafter the surviving spouse reaches age 60.

c.               Asused above, normal retirement pension means the benefit calculated assuming theemployee had retired on the date of his death at age 65.

C)            Thefirst payment of any surviving benefit starts at the end of the month followingthe month in which the active employee dies, provided proper and timelyapplication is made by the surviving spouse. If timely application is not made, retroactive payment of survivingspouse’s benefit is limited to six (6) months.

D)           Thesurviving benefit shall cease the last day of the calendar month in which thesurviving spouse shall die or the last day of the calendar month in which thesurviving spouse remarries.

 

9.                    Morecomplete details will be published in a separate booklet to be furnished toeach employee.

 

# **ARTICLE28**

**WAIVEROF ANY CLAUSE**

 

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

 

**ARTICLE 29**

**GOOD FAITH**

 

1.                    ThisAgreement has been entered into in good faith by the parties hereto and eachparty agrees that it will carry out this Agreement to the best of its abilityso that harmony and cooperation between the Company and the Union and theemployees covered by this Agreement will prevail for the duration of theAgreement.

 

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2.                    TheUnion agrees to maintain quality standards as established by the Company in theattainment of full production and efficiency, and to that end, the Union agreesto observe all rules of the Company not inconsistent with this Agreement.

 

3.                    Itis the expressed desire of the Company and the Union that the procedureoutlined in this Agreement for the settlement of disputes will serve thepurpose of effecting a peaceful settlement of all disputes that may ariseduring the lifetime of this Agreement. To that end the Company agrees that so long as the Agreement is ineffect, it will not lock out any employees in connection with a labor dispute.

 

4.                    TheUnion agrees that so long as this Agreement is in effect, it will not call,cause or sanction any strike, slowdown or stoppage of work during the lifetimeof this contract.  The Union furtheragrees that with respect to any strike, slowdown or stoppage of work during thelifetime of this contract, the Company may discharge or otherwise disciplineany participating employees and such discharges or other forms of disciplineshall not be the subject of a grievance by the Union, except on the groundsthat the employee or employees did not participate in any activity prohibitedby this section.

 

5.                    Itis further understood that in the event of any prohibited activities on thepart of any employee which is not called, caused or sanctioned by the Internationalor Local Union, there shall be no liability on the part of the International orLocal Union, its officers or agents on account of such activity.

 

**ARTICLE 30**

**GENERAL**

 

A.           Effectiveon all pay as heretofore, the City Payroll Tax will be deducted from the weeklypay of each employee, and be paid by the Company to the Receiver of Taxes, ofthe City of Philadelphia, in accordance with the City Payroll Tax Law atpresent in effect.  The amount of thisdeduction shall be shown on each employee’s pay envelope each week.

 

B.             Ifan employee resigns after having been absent, his resignation will beconsidered to have taken place the last day worked, without waiver ofintervening rights.

 

C.             TheUnion agrees that during the life of this Agreement, it will not interfere withproduction or permit any of its members to interfere with production orproduction rates, providing such rates are reasonable, just and not detrimentalto the safety of the employee.

 

D.            TheWork Group Facilitator may perform such work normally under his jurisdictionand direction as is necessary, (1) to maintain an uninterrupted flow of workand normal Work Group efficiency, (2) to train employees, and (3) to relievebottlenecks in production.  This Articleshall not limit the Work Group Facilitator in performing other similar workwhich is a part of his regular duty as Work Group Facilitator, so long as doingsuch work does not affect the work opportunities of those employees underhim.  Members of the bargaining unitwill not perform salary jobs nor will salary people perform bargaining unitjobs, except where bargaining unit employees are asked and refused.

 

E.              TheUnion recognizes that it is necessary for the Company to issue rules from timeto time governing the conduct of employees and that it is the duty of eachemployee to familiarize himself with such rules and regulations.  This does not constitute acceptance by theUnion of any specific rules not in compliance with the provisions of this Agreement.

 

F.              Allemployees, who at the time of the signing of this Agreement, are volunteerfiremen, fire policemen and ambulance personnel, shall be paid for the timelost at their straight time hourly rate while performing duties at a fire, ifsuch duties are performed during their regular scheduled working hours.  This paragraph applies when those duties arethe cause of an employee reporting late for work or leaving early.

 

G.             Itis the policy of the Company not to discriminate against any employee orapplicant for employment because of race, color, religion, national origin,sex, age, handicap, veteran’s disability, or Vietnam era Veteran.

 

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H.            TheCompany will establish a program of retirement preparation classes to acquaintemployees nearing retirement age with their benefits and, in addition, theyshall have made available to them advice and counsel with respect to adjustingtheir mode of living when they retire from active employment.

 

I.                 Anyemployee who is asked to use his own vehicle for Company business shall receivean allowance at the prevailing IRS rate for mileage.

 

J.                Specialwritten agreements in existence prior to the date of this Agreement which havenot been changed by the terms thereof shall remain in effect unless subsequentlymodified by the mutual consent of the Union and the Company.

 

K.            Safetyglasses must be worn while on the shop floor.

 

L.              Employeesare expected to work their entire shift. Changing of clothing and/or showering is to be done after clocking outat the end of the shift.

 

M.         TheUnion’s Negotiating Committee shall consist of one representative per every 25employees, rounded up to the next highest number, with a minimum of five (5)representatives.

 

N.            Ifan employee accepts overtime and fails to report without being excused by theWork Group Facilitator, his absence shall be recorded as an unexcused absencefor purposes of tracking attendance.

 

O.            Thoseemployees laid off prior to October 23, 1984 will be credited for all layofftime for vacation and pension eligibility.

 

P.              Ifan employee is scheduled to report for duty and no work is available, or he isgiven less than four (4) hours’ work he shall receive pay for not less thanfour (4) hours’ at his regular rate. Except during overtime hours, if an employee is transferred to otherwork, he shall be guaranteed eight (8) hours of work and be paid in accordancewith the provision governing transfers. This will not apply however:

 

1.               Whenan employee is absent on the preceding scheduled work day and fails to makenecessary arrangements for his time off with his Work Group Facilitator.

2.               Whenan employee is notified not to come to work at least four (4) hours before thebeginning of his shift by telephone or radio or other available means as listedwith the Human Resources Office.

3.               Whenthe plant or part of the plant is closed due to conditions beyond the controlof management.

4.               Whenthe above mentioned occurs, after two weeks, all medical and insurance benefitswill continue for the affected employees unless they are placed on layoffstatus.

 

**ARTICLE 31**

**PLANTSHUTDOWN**

 

1.                    Inthe event of a temporary or permanent plant shutdown, the Company wouldcontinue to provide all benefits but not wages for a period not to exceed four(4) weeks to employees actively employed by the Company immediately prior tothe shutdown.

 

2.                    TheCompany will notify the Union sixty (60) days prior to any temporary plantshutdown, unless an emergency arises which makes such notice impossible.

 

3.                    Thoseemployees with vacation remaining are permitted to change such vacation tocorrespond with the plant shutdown dates.

 

4.                    Duringa temporary plant shutdown, any production work performed will be offered tothe most senior qualified employees within the Work Group.  If additional employees are needed fromoutside the Work Group, they will be canvassed from the master seniority list.

 

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**ARTICLE 32**

**DURATIONOF AGREEMENT**

 

This Agreement shallremain in full force and effect until midnight, October 25, 2002, andthereafter shall continue from year to year until either party gives the otherninety (90) days prior written notice of a desire to change, modify orterminate same.  If neither party givesnotice to terminate this Agreement, but one or both of the parties gives noticeas aforesaid of an intention to change or modify any of the terms or provisionsof this Agreement, representatives of the Company and the Union shall meet todiscuss, negotiate, and, if possible, agree upon such changes.  In the event such Agreement continues beyondthe expiration date of this Agreement, then the terms and conditions of thisAgreement shall remain in full force and effect until such time as saidnegotiations have terminated, either by reason of the inability of the partiesto finally conclude a new Agreement, or because a new Agreement between theparties has been concluded.

 

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

 

IN WITNESS WHEREOF, theduly chosen representatives of the parties hereto affix their hands and sealsthis 22nd day of October, 1999.

 

NICE BALL BEARINGS, INC.

 
| Michael Pfeiffenberger |   | Plant Manager           |
|------------------------|--------|-------------------------|
|                   |   |                    |
| Michael Collins        |   | Engineering Manager     |
|                   |   |                    |
| Bonni Mauro            |   | Human Resources Manager |

 

UNITED STEELWORKERS OFAMERICA, AFL-CIO

 
| George F. Becker |   | President                                              |
|------------------|--------|--------------------------------------------------------|
|             |   |                                                   |
| Leo W. Gerald    |   | Secretary/Treasurer                                    |
|             |   |                                                   |
| Richard Davis    |   | Vice President -  Administration                       |
|             |   |                                                   |
| L. Lynch         |   | Vice President - Human  Affairs                        |
|             |   |                                                   |
| Andrew V. Palm   |   | District Director                                      |
|             |   |                                                   |
| Norman Hayman    |   | Staff Representative                                   |
|             |   |                                                   |
| John Haney       |   | President - Local Union  6816-12                       |
|             |   |                                                   |
| Sharon Miller    |   | Vice President - Local  Union 6816-12                  |
|             |   |                                                   |
| James Asher      |   | Chairman of Grievance  Committee - Local Union 6816-12 |

 

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**AppendixA**

**Pay for Knowledge and Skills**

 

# **PRODUCTION**

 
|         |   | **Year 1** |   | **Year 2** |   | **Year 3** |   |
|--------------|--------|------------|--------|------------|--------|------------|--------|
| Hiring       |   | $          | 9.50   |       | $      | 9.50       |   | $ | 9.50 |   |
| Starting     |   | $          | 10.00  |       | $      | 10.00      |   | $ | 10.00 |   |
| Basic        |   | $          | 10.65  |       | $      | 10.97      |   | $ | 11.30 |   |
| Core         |   | $          | 13.65  |       | $      | 14.06      |   | $ | 14.48 |   |
| Intermediate |   | $          | 16.15  |       | $      | 16.63      |   | $ | 17.13 |   |
| Advanced     |   | $          | 17.25  |       | $      | 17.77      |   | $ | 18.30 |   |

 

 

### **SKILLED**

 

Mechanics

 
|         |   | **Year 1** |   | **Year 2** |   | **Year 3** |   |
|--------------|--------|------------|--------|------------|--------|------------|--------|
| Hiring       |   | $          | 10.50  |       | $      | 10.50      |   | $ | 10.50 |   |
| Starting     |   | $          | 11.00  |       | $      | 11.00      |   | $ | 11.00 |   |
| Basic        |   | $          | 11.45  |       | $      | 11.81      |   | $ | 12.18 |   |
| Core         |   | $          | 14.45  |       | $      | 14.90      |   | $ | 15.36 |   |
| Intermediate |   | $          | 16.85  |       | $      | 17.47      |   | $ | 18.01 |   |
| Advanced     |   | $          | 18.05  |       | $      | 18.60      |   | $ | 19.17 |   |

 

 

# **ElectronicTechnicians & Tool Makers**

 
|         |   | **Year 1** |   | **Year 2** |   | **Year 3** |   |
|--------------|--------|------------|--------|------------|--------|------------|--------|
| Hiring       |   | $          | 10.75  |       | $      | 10.75      |   | $ | 10.75 |   |
| Starting     |   | $          | 11.25  |       | $      | 11.25      |   | $ | 11.25 |   |
| Basic        |   | $          | 11.85  |       | $      | 12.21      |   | $ | 12.58 |   |
| Core         |   | $          | 14.85  |       | $      | 15.30      |   | $ | 15.76 |   |
| Intermediate |   | $          | 17.35  |       | $      | 17.87      |   | $ | 18.41 |   |
| Advanced     |   | $          | 18.45  |       | $      | 19.00      |   | $ | 19.57 |   |

 

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**AppendixB**

**Memorandum of Understanding**

 

1.               Allmemos of understanding will be printed in the contract booklet.

 

2.               Newpension benefits will be applicable to a ten (10) year employee on leave ofabsence at the time the contract is executed and who retires prior to returningfrom leave.

 

3.               AllPolicy agreements now in effect will remain in effect unless changed throughnegotiations or by the Union and Company Committees.

 

4.               AnyAgreement reached between the parties of a Policy Meeting must be reduced towriting at the time of agreement. Without such written confirmation, there will be no agreement.

 

5.               Anemployee will receive his vacation pay in weekly checks.  As an example, should an employee take three(3) consecutive weeks of vacation he would receive three (3) separate weeklychecks.

 

6.               Priorto the plant going out of business, the Company will notify the Union ninety(90) days in advance.

 

7.               Aslong as it is cost effective, janitorial responsibilities for the plant will beperformed by an outside janitorial service. Such duties shall include cleaning and maintaining lavatory facilitiesand lockers, emptying dumpsters and cleaning water fountains.

 

8.               Theprovisions agreed to in previous negotiations regarding the elimination of anincentive system will remain in effect for the life of this Agreement,including:

 

a)              Employeesaffected by the elimination of the incentive system whose hourly rates were redcircled as a result of such shall continue to maintain their red circle rates.

b)             Thered circle will apply for any moves made within a Work Group including biddingwithin a Work Group to a higher job; however, the red circle rate will notapply to a downward move within a Work Group if there is more than $.20.

c)              Theforegoing is predicated on the red circle employee maintaining hisproductivity, i.e. running the same number of machines, etc., which created theaverage hourly earnings at which the employee was red circled.

d)             Ifan employee is bumped from his job to another Work Group or is laid off fromthe Company due to a reduction in force, the red circle rate will not apply.

e)              Ifan employee bids off his job to another Work Group voluntarily, the red circlerate will not apply.

f)                Anemployee who is temporarily transferred for any reason will receive his redcircle rate of the job to which he is transferred, whichever is higher.

g)             Ifan employee who has been bumped or laid off is recalled to the job from whichhe was red circled, that employee’s red circle rate will be established.

h)             Redcircle rates are applicable only to incumbent incentive employees and may notbe transferred to others.

 

9.               TheCompany shall continue the productivity gainsharing plan currently in effect.

 

10.         Overtimehours scheduled prior to the beginning of a shift are not considered “assuch.”  An employee must work more than8 hours in his 24-hour cycle in order to receive overtime, except on Saturdayand Sunday.

 

11.         TheCompany will provide a payroll deduction for employees who live in Townshipsrequiring a 1% employment tax.

 

12.         Managementagrees to provide to the Union annual profit and loss statements for theduration of this Agreement.

 

Whenemployees start the “C” shift on Sunday night at 11:00 PM, the first hourworked (11:00 PM to 12:00 AM midnight) will be paid at double time.

 

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