Document:

Exhibit
10.11

 

 

AGREEMENT

between

ROLLER BEARING COMPANY OF AMERICA

and

INTERNATIONAL UNION U.A.W.

LOCAL 502

 

July 1, 2001

 

 

ARTICLE 1

PARTIES
TO THE AGREEMENT

 

This Agreement is entered into between ROLLER BEARING
COMPANY OF AMERICA (“RBC” or the “Company” or the “Employer”) and the
INTERNATIONAL UNION U.A.W.  and its
Local 502 (the “Union”).

 

ARTICLE 2

PHILOSOPHY
STATEMENT

 

This Agreement recognizes the need for a new approach to
Union/Management relations and the more effective use of human resources in the
manufacture of bearings worldwide.  It
further recognizes the competitiveness in the bearing industry and the
potential for increased global competitive pressures with our current and
future customers.  Both parties
recognize the need to develop and maintain an atmosphere of cooperative problem
solving to accomplish our mutual objectives. 
We understand that our job security depends upon our success in making
quality bearings, in a cost-effective manner, and in satisfying our customer
expectations and commitments.

 

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

 

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

 

It is in this renewed spirit of mutual respect and recognition of each
other’s stakes and equities that this Agreement is entered into and agreed
upon.

 

ARTICLE 3

UNION
RECOGNITION

 

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

 

1

 

ARTICLE 4

UNION
SECURITY AND CHECK-OFF

 

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

 

RBC will provide for check-off of union dues and
initiation fees on behalf of employees who request such a service in accordance
with prevailing law.  The Union shall
indemnify and save RBC harmless with respect to any claims or expenses arising
out of any action taken as or not taken by RBC for the purpose of complying with
this Article.

 

ARTICLE 5

NON-DISCRIMINATION

 

The philosophy and mission of RBC are designed to be
in full and complete compliance with the legal and moral principles of equal
opportunity in employment.  Accordingly,
the Company and the Union pledge, on behalf of themselves, as well as their
officers, members and representatives to treat all persons equally without
regard to their race, color, religion, age, sex, national origin, disability,
or veteran’s status.  Although the term
“he” is used throughout this Agreement, it is used to represent both male and
female employees and is not intended to be discriminatory or exclusive in any
way, but rather to simplify the language for understanding.

 

The Company agrees that neither it nor any of its
representatives will intimidate, coerce, interfere with or discriminate against
any employee because of proper activity on behalf of the Union.  The Union agrees that it nor any of its
officers or members will threaten, intimidate, coerce or interfere in any
manner with any employee.

 

ARTICLE 6

STRUCTURE AND DECISION-MAKING PROCESS

 

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

.

WORK
GROUP MEMBER:

The individual RBC
employee.

 

WORK
GROUP:

An integrated group of
not more than 20 Work Group Members with a common manufacturing and support
purpose related to a product or products.

 

The Work Group will have
the responsibility and authority to produce quality products to schedule at
competitive costs.  It will have
responsibility for both direct and indirect work and, as such, will hold
meetings, obtain supplies, keep records, seek resources as needed, and be
responsible for job preparation and attainment of its own  materials and supplies.  It will constantly seek improvement in
quality, cost, and the work environment. 
The Work Group will also be responsible for the planning and scheduling
of the work and communications within and outside the group.

 

2

 

WORK
GROUP REPRESENTATIVE:

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

 

WORK
GROUP SUPERVISOR:

A member of management
who will coordinate the activities of the Work Group.  In addition, Work Group Supervisors will be responsible for
employment, termination, and coordination of job transfers, and will do
advanced planning for resources, both short and long term, and will determine
and plan resources needed by the Work Groups, including administration,
engineering, materials, financial, etc.

 

UNION
PLANT COMMITTEE:

 

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

 

PLANT
COUNCIL:

A consultative employee
group, consisting of three (3) members of the Union Plant Committee and an
equal number of representatives from the Company, including the Plant Manager
or his designee, who participate in decision-making processes addressing issues
affecting the entire plant or which have not been resolved in the Work
Group.  Additional members may be added
by mutual agreement of the parties on an ad hoc basis while resolving specific
issues.  The Plant Council will meet as
often as necessary, but at least weekly.

 

In connection with the
foregoing and with other issues affecting the plant, the parties recognize that
all functions of management are reserved exclusively to the Company, except
insofar as they are delegated or shared pursuant to the terms of this
Agreement.  These functions include the
management of the business, the determination of the products, methods,
processes and means of manufacturing, the establishment of the size and
direction of the work force, the setting of working schedules, the rights to
hire, promote, demote, lay off, transfer, discipline, discharge for proper
cause and establishing fair efficiencies and Shop Rules.  The Company will perform these functions in
the spirit of the Philosophy Statement of this Agreement.

 

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

 

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

 

b)  Decisions
should be achieved through the joint efforts of all to discover the best
solution.

 

c)  Decisions
must be arrived at promptly.

 

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

 

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

 

f)  Any party
may object to a proposed decision, in which event the objecting party must
propose concrete alternatives.

 

3

 

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

 

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

 

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

 

ARTICLE 7

WORK PERFORMED OUTSIDE THE BARGAINING
UNIT

 

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

 

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

 

3.  When
experimental work is to be performed on a production basis, it will be assigned
to bargaining unit employees. 
Experimental work on a production basis is defined to mean production of
products, parts, tools or equipment after design and testing have been
completed and production for inventory or orders has commenced, and will be
assigned to bargaining unit employees.

 

ARTICLE 8

TRAINING

 

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

 

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

 

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

 

4

 

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

 

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

•
technical skills

•
problem-solving

•
consensus decision-making

•
business basics and philosophy

•
trade unionism

•
team building

•
English as a second language.

 

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

 

Each member of the Union
Plant Committee will be given a minimum of 60 hours of training in business and
economics related studies each year of this labor agreement, at Company
expense.  Such training may include visits
to other manufacturing facilities, classroom training, or on-site training,
etc. and will be determined by joint union and management agreement.

 

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

 

ARTICLE 9

PROBATIONARY
PERIOD

 

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

 

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

 

ARTICLE 10

SENIORITY

 

1.  Computing Seniority

 

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

 

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

 

2.   An employee’s length of
service and seniority shall be considered ended, and the employee will have no
further recall or other rights as an employee of any kind or nature, except the
right to vacation pay, and insurance continuation through COBRA, if such an
employee:

 

5

 

A.  Voluntarily
quits his employment (if rehired by the Company within three (3) working days
after quitting, seniority shall not be affected), or

 

B.  Is
discharged for proper cause, or

 

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

 

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

 

E.  Fails to
return to work at the end of an approved leave of absence or gives a false
reason for obtaining a leave of absence, or

 

F.  Passes the
time limit for recall from layoffs, or

 

G.  Requests
and receives severance pay as a result of a qualified layoff.

 

ARTICLE 11

LAYOFFS
AND RECALL TO WORK

 

1.  Layoff Provisions

 

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

 

B.  When a job
is eliminated within a classification in a Work Group, the least senior
employee in that classification in the Work Group will be displaced.

 

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

 

2.  Recall Provisions

 

A.  Recall will
be offered to employees on the recall list in reverse order of layoff when
there are no successful bidders for an open job.

 

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

 

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

 

D.  Employees
on the recall list are responsible for keeping the Company notified of any
change of address or phone.  If the
Company cannot contact a previous employee at the last known address, he will
be dropped from the recall list.

 

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

 

6

 

SENIORITY TIME LIMIT

 

	
  Probationers

  	
   

  	
  No Recall

  
	
  2 years or less

  	
   

  	
  2 years

  
	
  2 years to 5 years

  	
   

  	
  equivalent of seniority

  
	
  5 years and over

  	
   

  	
  5 years

  

 

ARTICLE 12

OPEN
JOBS

 

1.  Filling
Open Jobs

 

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

 

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

 

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

 

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

 

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

 

B.  When an open job exists in one of the
Skilled Trades classifications, the posting and bidding procedure outlined in
Subsection A above shall apply.  The job
will be awarded on the basis of seniority. 
However, employees who have previously held a job in the Skilled Trades
classification in which the open job exists, will be given priority.  Those employees bidding for the job who have
not previously held a Skilled Trades job will be required to take a standard
skills assessment test to verify qualification and aptitude for successful
performance.  Where no applicant
possesses the requisite qualifications, the Company may determine whether to
train or hire on the outside.

 

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

 

3.  Successful
applicants will be trained on the shift where suitable training conditions
exist, and will be moved to the posted shift as soon as practical after
sufficient skill levels are reached.

 

4.  Situations
where successful applicants either change their mind about a job or receive a
job failure will be reviewed by the Plant Council and appropriate actions taken
as agreed.

 

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

 

7

 

ARTICLE 13

SEVERANCE
PAY

 

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

 

A.  In the event that such transfer as described
above, results in a bumping of employees without a layoff, any such bumped
employee who is entitled under the provisions of this Agreement to another job
covered by this Agreement, which would result in a loss of less than $1.00 per
hour in wages below the job from which he is being bumped or from which he was
originally bumped because of a transfer within the time limit, shall not be
entitled to severance pay.

 

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

 

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

 

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

 

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

 

E.  Severance Pay

 

1)  To elect to take such severance pay in lieu
of layoff or bumping, the employee must advise the Company of his election in
writing, delivered to it within 90 days after the commencement of the layoff or
incident of bumping.  Severance pay
shall be computed on the basis of forty hours pay at the employee’s regular
straight time hourly rate, at the date of the commencement of the layoff or
incident of bumping, for each year of seniority since the date of the last
hire.

 

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

 

Formula:

 

+ West Trenton Plant
Sales Dollars

+ Transfers to Hartsville
and Warehouse in Sales Dollars

+/- Change in WIP +
Finished Goods Inventory

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

= Output

 

Hours = Total straight
time + overtime hours

Output = Productivity
Measure Hours

 

8

 

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

 

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

 

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

 

ARTICLE 14

LEAVE OF
ABSENCE

 

1.  Types and Conditions of Leave

 

A.  Personal Leave

 

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

 

B.  Union Leave

 

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

 

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

 

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

 

C.  Sick Leave

 

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

 

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

 

In all instances, upon
returning to work, a statement must be presented from a qualified physician
stating the employee is physically capable of performing his regular job
assignment.  The Company reserves the
right to obtain a second opinion from a qualified physician designated by the
Company and at the Company’s expense. 
The employee will return to his previous job provided work is available
and he has the seniority to do so.  If
the leave was an approved FMLA Leave for personal disability, he will return to
his previous job or a comparable job. 
Otherwise, he will be eligible to bump another job, subject to the
seniority provisions of this Agreement, and provided he has the skill and
ability to perform the work.

 

9

 

D.  Family and
Medical Leave

 

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

 

E.  Maternity Leave

 

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

 

F.  Funeral Leave

 

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

 

For each such day of
absence on which he otherwise would have worked and does not work, he shall be
paid eight times his regular straight time hourly rate, provided the employee
attends the funeral and submits proof of death.  In the case of death in foreign residence, a death certificate is
required.

 

G.  Jury Duty

 

A seniority employee who
is called to and reports for jury duty shall be excused from work on the days
on which he serves or where jury duty was canceled after he reported to
serve.  In addition, he shall receive
for each day of jury service on which he otherwise would have worked and does
not work, eight times his regular straight time hourly rate.

 

Such payments shall not
exceed a total of twenty (20) days in any calendar year.  Such compensation shall be payable only if
the employee gives the Company prior notice of such jury duty call; and
presents proper evidence as to the jury duty performed.

 

H.  Military Leave

 

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

 

2.  Leave Provisions

 

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

 

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

 

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

 

10

 

ARTICLE 15

OVERTIME

 

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

 

Overtime opportunities
will be substantially equalized within a Production Work Group, between those
employees with the appropriate skill level for the required work.  Work Groups will develop and administer
their own plans for a fair and consistent scheduling and regulation of overtime
opportunities within the group.   The
Plant Council will develop plans for a fair and consistent scheduling and
regulation of overtime opportunities between Work Groups, which will be
administered by the Work Groups.

 

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

 

Employees will be paid
time and one-half for:

 

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

 

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

 

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

 

Double time shall be paid
for:

 

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

 

ARTICLE 16

WAGES AND OTHER COMPENSATION

 

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

 

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

 

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

 

4.  Classifications and Pay for
Knowledge and Skills

 

a)  The new system will consist of three
classifications:

 

Production

Skilled Trades (Maintenance)

Skilled Trades (Tool
Room)

 

11

 

Furthermore, within each
classification, there will be four levels of training:

 

Basic

Core

Intermediate

Advanced

 

Training will be provided
in each level, as necessary, and as determined by the Education and Training
Committee in consultation with the Work Groups and with final approval by the
Plant Council.

 

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

 

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

 

d)  The three-classification and pay for
knowledge and skills system is designed to create greater flexibility and
efficiency, and is not designed to reduce the work force.  Therefore, during the term of this
Agreement, there will be no layoffs of bargaining unit employees as a direct
result of the institution of this system. 
However, it is mutually agreed that the Company retains the right to
adjust the size of the work force due to business, market or other such
conditions.  Moreover, management of the
Work Groups will be free to assign employees in accordance with the knowledge
and skill levels they have attained.

 

ARTICLE 17

PERFECT ATTENDANCE/SERVICE TIME AWARD

 

6.   Employees
who have perfect attendance by working all regularly scheduled hours (not
including overtime) in any specified quarter will earn a $150.00 Perfect
Attendance Award for that period.  For
purposes of this award, perfect attendance is defined as no available hours
missed for unexcused absences, illness or injury, discipline, leave of absence,
or strike.

 

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

 

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

 

ARTICLE 18

NEW
PRODUCTS

 

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

 

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

 

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

 

12

 

Company without a
consensus agreement in the Plant Council subject to adjustment as provided
below;

 

c)  when a wage range is installed, the Union
may process the issue in accordance with Article 29 below, including submission
to arbitration of a grievance alleging that such does not bear 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 manufacturing such different product.

 

ARTICLE 19

SHIFT PREMIUM

 

1.   A shift
premium of 10% of the regular hourly rate will be paid to all employees
whenever they are assigned to and working on the afternoon and night shifts for
the life of the contract.

 

2.  Where
scheduled variations from the regularly scheduled shifts occur, the jobs
involved will be considered as falling on the shift on which a major part of
the job is worked.

 

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

 

4.  Shifts
shall be identified as follows:

 

(a)  Day Shift - (1st Shift)

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

 

(b)  Afternoon Shift - (2nd Shift)

When the majority of hours
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 Afternoon
Shift.

 

(c)  Night Shift - (3rd Shift)

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

 

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

 

ARTICLE 20

PAID BREAK AND LUNCH PERIODS

 

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

 

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

 

13

 

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

 

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

 

ARTICLE 21

REPORTING
PAY

 

1.  Any
employee who has not been notified when there is lack of work, and therefore
reports to work as scheduled, shall receive four (4) hours pay at his regular
hourly rate, unless the lack of work is caused by circumstances beyond the
control of the Company, or resulted from a labor dispute, or alternative work
was made available, or the employee could not be reached because of an outdated
phone number.

 

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

 

ARTICLE 22

TEMPORARY TRANSFERS

 

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

 

ARTICLE 23

VACATIONS

 

	
   

  	
  1.

  	
  Current Vacation Year is defined as the current
  twelve months between June 1 and May 31.

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Vacation pay = hours worked x applicable % x
  straight time rate with night premium in effect on June 1 of the current
  vacation year

  
	
   

  	
   

  	
  Or

  
	
   

  	
   

  	
  Vacation pay = gross wages x applicable %

  
	
   

  	
   

  	
  Whichever pay is
  greater

  

 

A.  Vacation Pay Schedule:

 

	
   

  	
   

  	
  Eligible Time Off

  	
   

  	
  Applicable %

  
	
  6 mos. less than 1 year

  	
   

  	
  1 week

  	
   

  	
  2

  
	
  1 year less than 2 years

  	
   

  	
  1 week 2 days

  	
   

  	
  2.8

  
	
  2 years less than 3 years

  	
   

  	
  1 week 4 days

  	
   

  	
  3.6

  
	
  3 years less than 5 years

  	
   

  	
  2 weeks 2 days

  	
   

  	
  4.8

  
	
  5 years less than 7 years

  	
   

  	
  2 weeks 3 days

  	
   

  	
  5.2

  
	
  7 years less than 9 years

  	
   

  	
  2 weeks 4 days

  	
   

  	
  5.6

  
	
  9 years less than 11 years

  	
   

  	
  3 weeks

  	
   

  	
  6.0

  
	
  11 years less than 13 years

  	
   

  	
  3 weeks 1 day

  	
   

  	
  6.4

  
	
  13 years less than 15 years

  	
   

  	
  3 weeks 2 days

  	
   

  	
  6.8

  
	
  15 years less than 17 years

  	
   

  	
  3 weeks 3 days

  	
   

  	
  7.2

  
	
  17 years less than 19 years

  	
   

  	
  3 weeks 4 days

  	
   

  	
  7.6

  
	
  19 years less than 21 years

  	
   

  	
  4 weeks

  	
   

  	
  8.0

  
	
  21 years less than 23 years

  	
   

  	
  4 weeks 1 day

  	
   

  	
  8.4

  
	
  23 years and over

  	
   

  	
  4 weeks 2 days

  	
   

  	
  8.8

  

 

B.  Factor for Computed Clock Hours Calculation

 

14

 

1)  Calculation:

 

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

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

 

b)  Over 2000 clocked worked hours -

Vacation pay = hours
worked x applicable % x straight time rate with night premium in effect on June
1 of the current vacation year

 

Or

Vacation pay =
gross wages x applicable %

whichever is
greater

 

c)  Less than 1500 clocked hours of work

Vacation pay = gross
wages x applicable %

 

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

 

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

 

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

 

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

 

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

 

4.  Vacation Payment after Separation

 

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

 

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

 

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

 

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

 

15

 

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

 

8.  Vacation Time:

 

A)          Vacation may be taken as
1/2 days (4 hrs), one day at a time or weekly or any variety of the above.

 

B)            A vacation request
form must be completed, approved, and turned in to Human Resources on Mondays
at 8am for proper payroll processing.

 

C)            Employees may take a
vacation day in place of being off sick by notifying their supervisor prior to
the start of their shift. Their perfect attendance money and attendance record
will not be affected.

 

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

 

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

 

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

 

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

 

ARTICLE 24

HOLIDAYS

 

1.  Hourly
rated employees shall be paid for the following Holidays without work being
performed, provided they meet the eligibility requirements described below:

 

	
  New Year’s Day

  	
   

  	
  December 24

  
	
  Good Friday

  	
   

  	
  Christmas Day

  
	
  Memorial Day

  	
   

  	
  Three (3) weekdays between

  
	
  Independence Day

  	
   

  	
  Christmas Day
  and December 31

  
	
  Labor Day

  	
   

  	
  December 31

  
	
  Thanksgiving Day

  	
   

  	
   

  
	
  Friday following Thanksgiving Day

  	
   

  	
   

  

 

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

 

2.  To be
eligible for Holiday Pay, an employee must have completed his probationary
period and have worked the last scheduled work day before and the next
scheduled work day after the holiday within the same work week or have an
acceptable explanation for not doing so.

 

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

 

4.  If work is
performed on these holidays, employees shall, in addition to the regular
holiday payment, receive twice their regular hourly rate for hours actually
worked,

 

16

 

exclusive of night shift and overtime premium.  Employees who have accepted such holiday
work assignment and then fail to report for and perform such work without
reasonable explanation, shall not receive pay for the holiday.

 

ARTICLE 25

401K

 

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

 

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

 

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

 

4.               Loans are allowed
for the following reasons:

Purchase of, or
renovations to a primary home

Unreimbursed medical
expenses

Secondary tuition for
yourself or your dependents

Avoid eviction from or
foreclosure to your primary home

 

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

 

ARTICLE 26

PERSONAL INJURIES/WORKERS’
COMPENSATION

 

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

 

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

 

2.  Procedures for Handling On-the-Job Injuries

 

A.  When injured on the job, employees must use
the medical facilities made available by the Company for all services in
connection with the injury.  Any
employee who bypasses the Company facilities will act on his own responsibility
insofar as the expense involved.

 

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

 

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

 

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

 

D.            The Company may elect
to provide work for workers’ compensation illnesses or injuries provided the
work available meets the physical restrictions outlined by the attending
physician.

 

E.               If an employee
disputes the treatment or course of action taken by the attending physician he
may request a second opinion through the workers’

 

17

 

compensation
carrier.  A second opinion must be approved
by the workers’ compensation carier for all medical treatment to be paid.

 

ARTICLE 27

SAFETY
AND HEALTH

 

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

 

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

 

3.  Safety and
Environmental Committee

 

A.  The Company and Union will expand its Safety
Committee to include responsibility for analyzing and correcting unsafe and
unhealthful working conditions inside the plant, insuring that the plant does
not pose a threat to the outside environment, and overseeing training on
health, safety, and environmental issues.

 

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

 

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

 

D.  The Committee will conduct regular
inspections of the different areas of the plant to ensure that conditions are
not hazardous.  Reports of these
inspections will be given to the Work Groups that were inspected and to the
Plant Council.

 

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

 

4.  Safety
Glasses

 

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

 

B.  The Company will supply non-prescription
Safety Glasses.

 

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

 

D.  Safety glasses are required on the shop
floor.

 

5.  Safety Work
Shoes - Under the shoe policy, one pair of work shoes per year will be
provided.  Payments will be made in
accordance with current safety shoe policy.

 

ARTICLE 28

UNION
FACILITIES

 

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

 

18

 

The Company will provide
the Union officials with office space, as well as telephone and computer
services, for use in conjunction with performance of their duties under the
terms of the Agreement.

 

ARTICLE 29

DISPUTE
RESOLUTION

 

It is recognized that,
from time to time, disputes will arise, and that, although every effort will be
made to resolve issues at the source, resolution will not always be reached
without intervention from others.

 

Disputes on the shop
floor will first be discussed with the affected employees and supervisors, as
appropriate,  in an attempt to settle
the issue.   If the matter cannot be resolved,
the aggrieved employee may request that the Supervisor call a member of the
Union Plant Committee to discuss the issue.  
Other disputes will be handled at the level that they arise.  All disputes involving discipline or
affecting employment will be reviewed by the Plant Council.

 

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

 

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

 

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

 

The compensation and
expense of the Arbitrator and the Arbitration proceedings shall be borne
equally by the parties.

 

ARTICLE 30

LIVING
AGREEMENT

 

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

 

ARTICLE 31

INSURANCE

 

1.              Insurance Benefits -
Active Employees

 

1)              Subject to the
provisions of this Agreement, life insurance and AD&D Insurance will be
procured by the Company for all regular employees for the life of this
contract.  This insurance will be
provided at no

 

19

 

expense to the
employee.

 

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

 

3)              The group medical
and prescription plans will be provided to eligible employees and dependents
for the life of this contract. The prescription plan will provide mail order
provisions for qualified maintenance drugs. 
The Company will select the carrier and reserves the right to change
carriers.

 

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

 

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

 

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

 

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

 

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

 

(1)          80% will be paid by the
company

 

(2)          20% will be paid by the
union employees

 

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

 

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

 

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

 

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

 

(1)  80% will be paid by the company

 

(2)          20% will be paid by the
union employees

 

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

 

Any changes to the
present health/prescription insurance carrier will be equal or better than the
current coverage.

 

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

 

5)               Group medical and
prescription plans, dental and life insurance plans will remain in effect for
all active employees, employees on disability and employees on approved Family
Leave of Absence.

 

6)              The Company will
procure a group dental plan for the life of this contract.  This dental plan will be provided at no
expense to the employee.  Such plan
shall be evidenced by a written agreement conforming to the requirements of
law.

 

B.  Employees hired on or after the effective
date of this Agreement shall be eligible for the above plans after they
complete their probationary period.

 

20

 

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

 

D.  Employee weekly medical co-pay
contribuitions will be deducted on a pre-tax basis and will be automatically
deducted from the pay of employees who are enrolled in the plans.  Employees on the disability, workers’ comp,  temporary disability, or an approved leave
of absence will be expected to make monthly contributions toward their
co-pay.  Employees who are on layoff and
eligible to receive benefit continuation will receive that coverage at no
cost.  Employees who enroll in the plan
will be covered for individual or family coverage as applicable.

 

2.  Insurance Benefits - Retirees

 

A.  The following identifies requirements for
retirement from the Company with respect to benefit continuation eligibility
and benefit coverage.

 

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

 

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

 

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

 

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

 

(2)          When an Early Retiree is
totally disabled, continuation will remain in effect by paying the current
active co-pay.  Continuation will be
available for a period of up to two (2) years provided the early retiree does
not become eligible for Medicare.  After
two years the early retiree can remain in the active employees’ plan by paying
the  monthly medical co-pay until they
are 65 years of age.  At 65 years the
employee will be transferred to Medicare coverage as provided under the length
of the contract.

 

(3)          Early retirees spouses
will have 6 months of additional coverage beyond the death of the RBC early
retiree,  provided, the spouse continues
to pay the monthly medical co-pay.

 

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

 

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

 

(2)          Any retiree may purchase
and pay for any Medicare supplemental coverage and upon proof of purchase will
be reimbursed the Company’s portion of the monthly premium for the life of this
contract.

 

21

 

(3)          Surviving spouses will
continue to receive the Company’s monthly Medicare reimbursement for 6 months
beyond the death of the RBC retiree provided they submit proof of continued
insurance coverage.

 

C. 3.  Insurance Plans - General
Information

 

A.  Terms of any contract issued by an insurance
company shall be controlling in all matters pertaining to benefits thereunder
and it is understood that the grievance procedure of any collective bargaining
agreement between the parties hereto shall not apply to this plan of insurance
or any insurance plan in connection therewith.

 

B.  All insurance is term insurance without
cash, loan or paid up values.

 

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

 

4.  Insurance Plans - Termination of Employment

 

A.  TERMINATION
SCHEDULE

 

	
   

  	
   

  	
  Life

  	
   

  	
  AD&D/Medical/Dental/

  Prescription Drugs

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quit

  	
   

  	
  Same day

  	
   

  	
  Same day

  
	
  Discharge

  	
   

  	
  Same day

  	
   

  	
  Same day

  
	
  Layoff

  	
   

  	
  Six months

  Same day AD&D

  	
   

  	
  Six months – Medical

  
	
  Services

  	
   

  	
  Six months

  	
   

  	
  Same day

  
	
  * Leave of Absence

  	
   

  	
   

  	
   

  	
   

  
	
  Personal

  	
   

  	
  Six months

  	
   

  	
  Sixty days

  
	
  Union

  	
   

  	
  Six months

  	
   

  	
  Six months

  
	
  Sick or Injury

  (Non-Occupational)

  	
   

  	
  One year

  	
   

  	
  One year

  
	
  Maternity

  	
   

  	
  Six months

  	
   

  	
  Nine months from date of leaving or upon completion
  of pregnancy whichever occurs first.

  
	
  Sick or Injury

  (Occupational)

  	
   

  	
  Six months

  	
   

  	
  Until seniority acquired on last day worked is
  equaled by the period of time involved in the disability.

  
	
  Retirement

  	
   

  	
  Same day for AD&D only

  	
   

  	
  As per contract and age at retirement

  
	
  Strike

  	
   

  	
  Suspended

  	
   

  	
  Suspended

  

 

22

 

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

 

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

 

B.  Employees who request and receive severance
pay in a lump sum as outlined in this Agreement will thereafter have no further
rights to company-paid benefit continuation as described in this Article, but
may continue coverage under COBRA.

 

C.  Employees who are recalled from layoff and
are subsequently laid off again within one month of the recall date, will not
be eligible for insurance continuation as described above, but rather, all
insurance will be terminated as of the last day of work and they can apply for
COBRA.

 

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

 

5.  Insurance Coverage - Surviving Dependents

 

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

 

ARTICLE 32

WAIVER
OF ANY CLAUSE

 

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

 

ARTICLE 33

NO
STRIKE-NO LOCKOUT

 

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

 

ARTICLE 34

DURATION OF AGREEMENT

 

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

 

23

 

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

 

IN WITNESS WHEREOF, the
duly chosen representatives of the parties hereto affix their hands and seals
this             day of
                ,
2002.

 

	
  FOR THE UNION:

  	
   

  	
   

  	
   

  	
  FOR THE COMPANY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Joseph Csik, Jr.

  	
   

  	
   

  	
   

  	
  Steven Koltenback

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jeffery Mann

  	
   

  	
   

  	
   

  	
  Barbara A. Loughlin

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nandor Palmai, III

  	
   

  	
   

  	
   

  	
   

  

 

APPENDIX
A

 

PRODUCTION JOBS

 

	
  Pay Rates

  	
   

  	
  7/1/01

  3%

  	
   

  	
  7/1/02

  3.5%

  	
   

  	
  7/1/03

  3.5%

  	
   

  
	
  Advanced

  	
   

  	
  17.48

  	
   

  	
  18.09

  	
   

  	
  18.72

  	
   

  
	
  Intermediate

  	
   

  	
  16.02

  	
   

  	
  16.58

  	
   

  	
  17.16

  	
   

  
	
  Core

  	
   

  	
  14.54

  	
   

  	
  15.05

  	
   

  	
  15.58

  	
   

  
	
  Basic

  	
   

  	
  12.79

  	
   

  	
  13.24

  	
   

  	
  13.70

  	
   

  
	
  Starting Rate

  	
   

  	
  10.60

  	
   

  	
  10.97

  	
   

  	
  11.35

  	
   

  
	
  Hire Rate

  	
   

  	
  8.84

  	
   

  	
  9.15

  	
   

  	
  9.47

  	
   

  

 

SKILLED TRADES JOBS

 

	
  Pay Rates

  	
   

  	
  7/1/01

  3%

  	
   

  	
  7/1/02

  3.5%

  	
   

  	
  7/1/03

  3.5%

  	
   

  
	
  Advanced

  	
   

  	
  19.84

  	
   

  	
  20.53

  	
   

  	
  21.25

  	
   

  
	
  Intermediate

  	
   

  	
  18.51

  	
   

  	
  19.16

  	
   

  	
  19.83

  	
   

  
	
  Core

  	
   

  	
  16.89

  	
   

  	
  17.48

  	
   

  	
  18.09

  	
   

  
	
  Basic

  	
   

  	
  15.73

  	
   

  	
  16.28

  	
   

  	
  16.85

  	
   

  
	
  Starting Rate

  	
   

  	
  14.12

  	
   

  	
  14.61

  	
   

  	
  15.12

  	
   

  
	
  Hire Rate

  	
   

  	
  11.76

  	
   

  	
  12.17

  	
   

  	
  12.60

  	
   

  

 

Monthly Medical
Co-pay for Early Retiree:

$135 per
month per family

 

Company’s Monthly
Contribution to Supplemental Medicare Health Insurance per Retiree/Spouse:

8/1/01 -
$43.17

8/1/02 -
$44.47

8/1/03 -
$45.80

 

24

 

INDEX

 

ARTICLE

 

	
  1

  	
  Parties to the Agreement

  
	
  2

  	
  Philosophy Statement

  
	
  3

  	
  Union Recognition

  
	
  4

  	
  Union Security and
  Check-off

  
	
  5

  	
  Non-Discrimination

  
	
  6

  	
  Structure and
  Decision-Making Process

  
	
  7

  	
  Work Performed
  Outside the Bargaining Unit

  
	
  8

  	
  Training

  
	
  9

  	
  Probation Period

  
	
  10

  	
  Seniority

  
	
  11

  	
  Layoffs and Recall to Work

  
	
  12

  	
  Open
  Jobs

  
	
  13

  	
  Severance Pay

  
	
  14

  	
  Leave of Absence

  
	
  15

  	
  Overtime

  
	
  16

  	
  Wages and Other
  Compensation

  
	
  17

  	
  Perfect
  Attendance/Service Time Award

  
	
  18

  	
  New Products

  
	
  19

  	
  Shift
  Premium

  
	
  20

  	
  Paid Break and Lunch
  Periods

  
	
  21

  	
  Reporting Pay

  
	
  22

  	
  Temprary Transfers

  
	
  23

  	
  Vacations

  
	
  24

  	
  Holidays

  
	
  25

  	
  401K

  
	
  26

  	
  Personal Illness/Workers’
  Compensation

  
	
  27

  	
  Safety and Health

  
	
  28

  	
  Union Facilities

  
	
  29

  	
  Dispute Resolution

  
	
  30

  	
  Living Agreement

  
	
  31

  	
  Insurance

  
	
  32

  	
  Waiver of Any Clause

  
	
  33

  	
  No Strike – No Lockout

  
	
  34

  	
  Duration of Agreement

  
	
   

  	
  Appendix
  A – Pay Rates

  
	
   

  	
   

  	
  Company
  Contribution to Retiree

  
	
   

  	
   

  	
  Health
  Insurance

  
	
   

  	
  Index

  
	
   

  	
  Memorandum of
  Understanding #1

  
	
   

  	
  Memorandum of
  Understanding #2

  

 

25

 

MEMORANDUM
OF UNDERSTANDING NO. 2

Transition Issues

Pay and Benefits

 

A.  In connection with 1996-97
negotiations, the parties have agreed to a new pay structure which will go into
effect when the three-classification and pay for knowledge and skills system is
instituted.  The parties have also
agreed to certain general increases and a flexibility increase, as described in
Article 16 of the Agreement.  In
applying these increases, the parties have reached the following
understandings:

 

1.  Employees
will be provided training opportunities with a goal of completing each level of
training within their classification in the time indicated in Appendix A or
less.

 

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

 

3.  All
employees will begin training by June 1, 1997.

 

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

 

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

 

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

 

C.  The parties have also agreed
to terminate the former defined benefit pension plan.  Termination will take place as soon as practicable after legal
approvals have been obtained, effective on the last day of a calendar
month.  Current accruals will be
converted into annuities in accordance with current vesting schedules and legal
obligations with respect to lump sum and retirement options.  It is anticipated that such termination
shall not occur until sometime after June 1, 1997, that is, until after the
next plan year begins.  Accordingly, it
is anticipated that covered employee will accrue another year of service credit
under such plan.

 

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

 

1.               Necessary
governmental approvals and qualifications.

 

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

 

26

 

3.               No hardship
withdrawals.

 

4.               No loans.

 

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

 

6.               Quarterly
investment statements.

 

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

 

8.               Investment options
to be determined by the parties and to include at least one bond and one income
fund.

 

9.               Employees eligible
to change investments quarterly.

 

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

 

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

 

12.         The precise terms are
subject to drafting by legal and financial consultants to be retained by the
Company and will be reviewed further by the parties.

 

D.  Finally, the Company has
agreed to pay each employee who was a member of the Union negotiating committee
eight (8) hours of pay at straight time rates, less deductions required by
laws, for each day when the parties engaged in collective bargaining and the
employee was thereby unable to report for work on his regularly scheduled
shift.

 

27

 

MEMORANDUM
OF UNDERSTANDING NO. 1

Transition Issues

Work Group Issues

 

 

This Memorandum of Understanding outlines the process of transition of
current employees to Product Line focused Work Groups.  The Bushing Work Group has been identified
as the Experimental Work Group for greater employee involvement and
participation.   As the members of the
Work Groups are identified, the traditional departments will be eliminated, and
group members will begin to function as a Work Group, even though they may not
be physically located in the same area. 
The physical transition of machines and equipment to Product Line Work
Groups is expected to be completed no later than December 1999.

 

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

 

1.  Establishing the Work Groups 

 

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

 

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

 

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

 

2.  Developing the Pay for Skill and Knowledge Program

 

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

 

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

 

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

 

28

 

The Education and Training Committee along with the members of the Work
Group will be responsible for insuring that employees are given the training
identified on their individual training plan or rescheduling within a
reasonable time period.

 

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

 

3.  Group Management

 

Initially, all Work Groups will be managed in a traditional sense with
the Supervisor retaining group management responsibilities.   As the Bushing Work Group completes
training for problem-solving, decision-making, group management, scheduling
work, and accounting it will begin taking on those responsibilities.  The other Work Groups will continue to be
managed more traditionally through a supervisor, but may increase the employee
participation in the management of the Work Group as mutually agreed by the
Work Group and members of the Plant Council, after evaluating the effectiveness
of this approach in the Bushing Work Group.

 

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

 

4.  Area/Machine Layout

 

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

 

29Exhibit
10.11(a)

 

ARTICLE
I

 

Agreement

 

Section
1.  This Agreement
dated the thirtieth
day of March, 2002 is entered into between Tyson Bearing Company, Inc.,
Glasgow, KY (hereinafter referred to as the “Company”), and the United
Steelworkers of America, AFL-CIO (hereinafter referred to as the “Union”) on
behalf of itself and the members of Local Union No. 7461-01.

 

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

 

Section
2.  In consideration
of this Agreement, the parties agree that it is the intent and purpose of the
parties hereto that this Agreement is the complete Agreement covering rates of
pay, hours of work and working conditions to be observed between the parties,
and to provide orderly relationships between the Company and the Union, and to
secure prompt disposition of differences between the parties pertaining to the
compliance with or application of this Agreement.

 

Section
3.  In recognition of
its responsibility as the exclusive agent of the employees, the Union agrees
that it will cooperate in discouraging absenteeism and tardiness, and that it
will support proper Company efforts to eliminate waste, improve quality,
prevent accidents, and strengthen good will between the Company and the
Union.  The Union also confirms that it
subscribes to the concept of a fair day’s work for a fair day’s pay.

 

Section
4.  Employees are
obligated to keep the Company informed regarding their correct address and
telephone number.  Employees must also
keep the Company informed regarding their marital status and dependents to be
eligible for benefits.  Agreement as
defined in Section 1. above, shall, as a condition of continued employment, be
members of the Union in good standing. 
All new employees shall become members of the Union on the 60th day
following the beginning of their employment.

 

Section
5.  It is the policy
of the Company not to discriminate against any employee or applicant for
employment because of race, creed, color, national origin, age, sex, religion,
disabled veterans and handicapped status, or union affiliation.

 

Section
6.  Any reference made
to he should read he/she. Any reference made to his should read his/her. Any
reference made to himself should read himself/herself.

 

ARTICLE II

 

Rights and
Functions of Management

 

Section
1.  The Union
recognizes that the control of all matters relative to the management and
operation of the Plant and the operation of the Company’s business shall be

 

 

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

 

ARTICLE III

 

Union Recognition

 

Section
1.  The Company
recognizes the Union as the sole collective bargaining agency with respect to
rates of pay, hours of work and conditions of employment for all production and
maintenance employees employed by the Company at its Glasgow, Kentucky plant,
but excluding all office clerical employees, professional and technical
employees, guards and supervisors as defined in the acts.

 

Section
2.  The provisions of
this Agreement constitute the sole procedure for the processing and settlement
of any claim by an employee or the Union of a violation by the Company of this
Agreement.  As the representative of the
employees, the Union may process grievances through the grievance procedure,
including arbitration, in accordance with the Agreement or adjust or settle the
same.

 

Section
3.  All employees,
except those excluded from this Agreement as defined in Section 1. above,
shall, as a condition of continued employment, be members of the Union in good
standing.  All new employees shall be
come members of the Union on the 60th day of following the beginning
of their employment.

 

Section
4.  Inter-Plant
Transfer.  In the event that
the Company finds it necessary to transfer equipment to any other Company
production facility, either presently existing or which may come into existence
in the future, and such transfer of equipment results in a layoff of employees
having two or more years of service in our Bargaining Unit, and also generates
a job vacancy in the other plant, employees laid off from our Bargaining Unit
shall have the right to apply for and be transferred to such plant.

 

However, if the plant to which the equipment was transferred is covered
by a collective bargaining agreement and/or a bidding procedure, the eligible
applicant’s rights shall be subject to the provisions of the collective
bargaining agreement and/or the bidding procedure in existence at the other
plant.  Any employee who transfers to a
job in another plant under the terms of the agreement shall retain his previous
Company service for computing vacation and pension benefits, but he/she shall
be subject to the wages, hours, benefits, and working conditions in existence
in the other plant. Any employee who transfers voluntarily under the contract
will have recall rights for two years.

 

Section
5.  The Human
Resources Department will give each new employee when hired a copy of the Labor
Agreement.

 

Section
6.  With appropriate
notice, the Company will permit plant visitation rights to the District
Director and the International Representative of U.S.W. District 8.

 

2

 

ARTICLE IV

 

Strikes and
Lockouts

 

Section
1.  The Union agrees
that there shall be no strikes, work stoppages, interruption or impeding of
work. No officer or representative of the Union shall authorize, instigate, aid
or condone any such activities. No employee shall participate in any such
activities.  Any violation of this section
by any employee shall be cause for dismissal or suspension.

 

Section
2.  The Company agrees
that there shall be no lockouts from the Company’s Plant.

 

ARTICLE V

 

Holidays

 

Section
1.  During the work
year, there are fourteen (14) full holidays which are observed in our
plant.  These are:

 

New Year’s Day

Good Friday

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Day after Thanksgiving

Day before Christmas

Christmas Day

Day before New Year’s Day

Three (3) Floating
Holidays at Year’s end

 

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

 

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

 

Section
3.  Holiday
Eligibility.  To be eligible
to receive pay for any of these holidays, you must:

 

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

 

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

 

3

 

have an excused
absence.  Excused absence shall mean absence
previously approved by the Company, or sickness supported by a doctor’s
statement.

 

Section
4.  Holiday Pay.

 

a.                             Eligible
employees not working on an observed holiday will receive eight hours pay at
their straight time rate.

 

b.                            Eligible
employees required to work on one of the above holidays will receive double
time for all hours worked in addition to the holiday pay.

 

Section
5.  When a paid
holiday falls within an employee’s scheduled vacation, he/she shall receive an
extra day off at his/ her discretion with one week’s notice or receive eight
(8) hours additional pay for the holiday. 
If the holiday falls during a plant vacation shutdown, that holiday will
be scheduled by the Company.  The
Company will notify the Union by May 31 of each contract year whether or not
the holiday during the plant shutdown will be scheduled immediately prior to or
after the shutdown, or whether the holiday may be used at the employee’s
discretion with five (5) day’s notice.

 

Section
6.  If an employee is
absent on the day before or the day after a scheduled holiday and is not paid
for that holiday per terms in Article V, Section 3.b., his/her absence will not
be recorded for disciplinary purposes.

 

Section
7.  It is agreed that
employees on a four-shift operation will celebrate all regularly scheduled
holidays. Actual time off will be determined by the Company and the Union prior
to the holiday, taking into consideration a canvass of employees on the shift
two weeks prior to the holiday.

 

Section
8.  Work schedules for
weeks wherein paid holidays occur, may be changed by mutual agreement between
the Company and the Union.  This
involves the right to waive other provisions of this Agreement in order to
accomplish such changes.

 

ARTICLE VI

 

Job Evaluation
Plan

 

Section
1.  Jobs have been
classified in their work grades by the Company, using the National Metal Trades
Association’s Job Evaluation Plan.  Job
descriptions, labor grades, and rates of pay have been prepared and are in
effect for all present jobs.  When
conditions warrant such action, the Company will establish new job classifications,
change, or add to and remove jobs or job descriptions.  When new jobs are established, or changes or
additions made to existing jobs, new job descriptions will be drawn and
evaluated by the Company in accordance with the NMTA Job Evaluation Plan.

 

Section
2.  All job rates of
pay in effect at the time this Agreement is effective shall not be subject to
process under the grievance procedure section of this contract.  Any new or

 

4

 

changed job or job rate may be subject to processing under Article XX,
Settlement of Differences.  Such
processing shall be confined to the result of the application of the NMTA Job
Evaluation Plan.  The plan itself shall
not be subject to processing under Article XX, Settlement of Differences, nor
shall it be, in any manner or detail, subject to arbitration under this
Agreement.

 

Section
3.  Rates of pay and
the effective dates thereof are listed for each of the labor grades outlined in
this agreement.

 

Section
4.  The following
method will be used in determining the work grade to be assigned to a job:

 

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

 

Section
5.  If the Union feels
that the complement of machines to which an employee is assigned is not
reflected adequately in his labor grade, the Union may submit this case to a
job evaluation committee composed of Union and Company representatives.

 

Section
6.  The Company may
combine jobs within a group.  If jobs
are to be combined across groups, the Union must agree before such a
combination may occur.  If there is
agreement on combining jobs across groups, employees having bidding and recall
rights to the jobs which are combined will continue to have such rights on the
new job no matter in which group it is placed.

 

ARTICLE VII

 

Production
Standards and Incentive Pay

 

Section
1.  It is understood
that the Company will make, at any time, motion time or methods studies
required for the efficient operation of its business, and may establish
standards and levels of performance, and may audit its standards when it deems
this to be necessary in the interest of business.  The right of the Company shall be unrestricted as to whether or
not it desires to utilize an individual or group incentive payment basis.

 

Effective
06/01/02, gain-sharing will be based on total plant earned hours for deliveries
to finished stock compared to actual clocked hours on a four-week moving
average, using the first three (3) months of 2002 as the base period for
calculating the base productivity factor (BPF), with the intent that the bases
will be fixed so that the payout to all employees during this three-month
period under the current program shall be the same as the total amount paid out
to all employees under the new program (as attached).  The

 

5

 

Union shall be provided all data
needed to determine the payout under the program and time for the Union’s
representative to review such data on a monthly basis.  Any challenge by the Union as to the correct
payout shall be subject to the grievance and arbitration procedure.

 

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

 

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

 

Section
2.  Once a production
standard has been established, the equity of such a standard may be challenged
under the procedure set forth in Article XX, Settlement of Differences.  Should the Union dispute the equity or
fairness of a production standard, the Company will review with a proper union
steward, upon his/her request, the data relating to the production standard.

 

Section
3.  A production
standard may be changed whenever a substantial and continuing change in
material method, specifications, or equipment, or an accumulation of such
changes, or an obvious clerical error or mechanical error has occurred, that
has a substantial effect on the productivity of the job.

 

Section
4.  It is recognized
that the Company has the right to institute incentive standards, with the
understanding that such incentive standards shall be set in such a manner so
that qualified operators working at a normal pace can produce quality work 100%
of standard.

 

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

 

Section
5.  A production
standard, after an appropriate trial period, may be subject to a check
study.  During the check study, either
the proper steward or the Union Time Study Representative shall be present to
observe the check study.  When the
Company representative and the steward agree that normal performance is being
given and the check study proves less than 100% of the unit time allowed, that
unit time allowed will be removed immediately. 
In the event of such action, employees involved will be paid their
applicable job rate.  This payment will
be effective from the time the employee or employees started the particular lot
on which the check study was completed. This check study will be made within 45
days after the rate is set.

 

Section
6.  Employees working
on jobs designated as incentive jobs will be paid as follows:

 

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

 

6

 

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

 

c.                                       Abuses
of the use of downtime such as prolonging it or creating it will not be
tolerated.

 

d.                                      For
the special conditions listed below, the employee will be credited as
specified:

 

1.                                       Instruction:

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

 

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

 

2.                                       Experimental
Work:

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

 

3.                                       Incentive
workers in labor grades 11 and 12 will receive two labor grades higher for
instruction and experimental work.

 

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

 

Section
7.  Whenever rates are
initially established in any department or area, the employees involved will be
guaranteed no less than 100% for any day in which they encounter rate problems
beyond their control.  Such guarantee
will be effective for a period of four weeks from origin of installation.

 

Section
8.  It is agreed that
incentive earnings as a portion of gross income will be designated in the
employees’ weekly pay statement.

 

ARTICLE VIII

 

SAFETY AND HEALTH

 

Section
1.  Adequate heating,
lighting, toilet, locker and sanitary facilities and all protective devices
necessary to protect the health of employees shall be provided by the
Company.  The Union will at all times
cooperate with and assist the Company in maintaining and improving safety and
health conditions in the Plant.

 

Section
2.  A joint Safety
Committee consisting of two Company members and four employees designated by
the Union shall be established.  The
Company shall pay for such time

 

7

 

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

 

Section
3.

 

a.                                       It
shall be the function of the Joint Safety Committee to recommend improvements
in safety, sanitation and health conditions affecting the employees.

 

b.                                      Grievances
which arise under Section 1. of this Article, and which are not settled in the
Joint Safety Committee, may be filed in Step No. III of the Grievance
Procedure.

 

c.                                       If
an employee incurs an injury on the job, he/she must report it to his/her
foreman.  All records of injuries which
occur on the job will be available for examination by the Safety Committee.  An employee must report any injury sustained
in the Plant within twenty-four (24) hours.

 

Section
4.  The parties agree
to abide by all Federal Legislation pertaining to Health and Safety and Civil
Rights.

 

Section
5.  The Chairman of
the Union’s Safety Committee will be informed of any accident occurring within
the Plant involving a bargaining unit employee.  He/she will be permitted to investigate such accidents if he/she
deems it advisable.

 

Section
6.  The Company will
have a qualified first aid practitioner on each shift.

 

Section
7.  The Company will
send the Chairman of the Safety and Health Committee to the Annual Kentucky
Safety and Health Conference.  The
Company will reimburse the chairman for reasonable expenses and three days’
pay.

 

ARTICLE IX

 

PLANT RULES

 

Section
1.  The Union
recognizes that it is necessary for the Company to issue rules from time to
time governing the conduct of employees and that it is the duty of each
employee to familiarize himself/herself with such rules and regulations.  This does not constitute acceptance by the
Union of any specific rules not in compliance with the provisions of this
Agreement.

 

Section
2.  A record of six
(6) months without warnings will serve to clear an employee’s record of a
previous warning.

 

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

 

8

 

ARTICLE X

 

Jury Duty Pay

 

Section
1.  Jury Duty Pay.  Any employee who is called for Jury Duty
service or is subpoenaed as a witness shall be excused from work for the days
on which he/she serves, and he/she shall receive for each such day of Jury Duty
service or as a witness on which he/she otherwise would have worked, the
difference between eight (8) times his/her assigned personal rate and the
payment he/she receives for Jury service (excluding travel and meal
allowance).  The employee will present
proof of service and the amount of pay received therefor.

 

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

 

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

 

Section
3.  Military
Reserve Pay.  Military
reservists required to take up to two (2) weeks, per year, military training
leaves will be paid the difference between their military training pay and
their RBC base rate earnings. They should request a statement of pay from their
paymaster while in training and submit this voucher to their supervisor upon
their return to work. If the two weeks military training should fall during the
time of the plant shutdown, the employee may take his/her vacation at another
time.

 

ARTICLE XI

 

Foreman’s Work

 

Section
1.  No individual
excluded from the definition of employee in Article III of this Agreement shall
perform work of the type customarily performed by employees within the
Bargaining Unit, except for the purposes of training or instructing employees
or other occasional or hazardous work which requires the knowledge and skill of
such excluded employee or in case of emergencies or production difficulties
where a regular qualified employee is not immediately available provided he/she
shall not by so doing replace any Bargaining Unit employee.

 

9

 

ARTICLE XII

 

Union Bulletin
Board

 

Section
1.  The Union shall
have the right to have posted on a Union Bulletin Board notices of Union
meetings, Union elections, names of Union officials and representatives, and
Union social and educational gatherings and political issues.  Union notices shall contain nothing
controversial or adversely reflecting upon the Company.  A copy of each notice will be submitted to
the Human Resources Manager or his designated representatives before posting if
practical.

 

ARTICLE XIII

 

Leaves of Absence

 

Section 1.

 

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

 

Sick leaves shall be granted without pay or other
benefits, except as provided in this Agreement. Seniority shall accumulate up
to one (1) year.

 

a.-1.                          A
request for an extended leave of absence beyond the one-year limitation will be
granted upon medical justification for such leave.  If the extended leave is granted under this section, seniority
for the affected employee will continue to accumulate for a period of no more
than two (2) years.

 

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

 

On personal leaves, employees may not engage in other
employment.

 

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

 

10

 

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

 

Section
2.  Employees applying
for a leave of absence for illness may be subject to physical examination and
approval of a physician appointed by the Company before such leave is granted
and/or before the employee may return to work. 
Any disagreements arising from differing opinions of physicians will be
subject to a final decision by a qualified physician at Vanderbilt University
mutually agreeable to both parties.  An
employee must give the Company a forty-eight (48) hour written notification
before returning from leave.

 

Section
3.  Failure to report
to the Company within three (3) working days after the expiration of any leave
of absence shall constitute voluntary resignation.

 

Section
4.  An employee
returning to work after a leave of absence will return to his/her shift and
shall be placed in the classification held at the time of leave.  This will be done on the basis of the
employee’s seniority and provided he/she is able to perform the job
requirements.

 

Section
5.  Any employee who
is elected or appointed to an office or position with the local Union, the
United Steelworkers of America or the AFL-CIO-CLC will be given a leave of
absence.  Such leave will be without pay
or any other financial benefits, except pension benefits included in the
Agreement; however, seniority will continue to accumulate.  The Union may apply for an extension of such
leave every three years.

 

Section
6.  Military Service
Reemployment Rights.  The
Company shall accord to each employee who applies for reemployment after
conclusion of his/her military service with the United States such reemployment
rights as he/she shall be entitled to under then existing statutes.

 

ARTICLE XIV

 

Wages

 

Section
1.  General.

 

a.                                       Under
the terms of this Agreement, the Company shall not be required to pay for any
time except time spent at work to which the Company assigns the employee unless
otherwise specifically provided for in this Agreement.

 

b.                                      All
earnings are calculated on a weekly basis except when a moving average is used
in Gain-sharing.

 

Section
2.  Labor Grades and
Rates of Pay are set forth in Appendix “A” attached hereto and are a part of
this Agreement.

 

11

 

Section
3.  New employees
without previous experience will be hired at the appropriate rate as shown on
the progression rate scales outlined in Appendix “A” of this Agreement.  All employees hired after March 31,1996 will
be paid $3.00, per hour, lower than the prevailing wage scale in effect for
this labor agreement.

 

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

 

Section
4.

 

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

 

b.                                      When
he/she is transferred because of no work, machine breakdown or for his/her
convenience, he/she will be paid the rate of the job to which he/she is
transferred.  Should the lack of work or
machine breakdown condition continue beyond the first week, the least senior
employee on the shift in affected job classification will be transferred.

 

Section
5.  Shift
Premium.  Employees working
on a scheduled second shift shall be paid a night shift premium of .20 per
hour.  Employees working on a scheduled
third shift shall be paid a night shift premium of .23 per hour.  Employees working on their scheduled shifts
starting between 2 P.M. and 10 P.M. (2nd Shift) and 10 P.M. and 6 A.M. (3rd
Shift) shall be considered as working on night shifts and entitled to the
applicable bonus for that shift.  When
an employee’s hours continue into the following shift, bonus will be determined
by the shift of origin. When an employee is called in or scheduled on a shift
other than his/her own, he/she shall receive bonus applicable to that shift for
hours worked. “D” shift employees will receive .23 per hour shift premium for
all hours worked.

 

Section
6.  The Company will
supply the following tools to those employees, where needed, to operate within
their respective job classification:

 

1. Metric tools

2. Special spanners

3. Snap ring pliers

4. Allen wrenches

5. Indicators

6. Special press wrenches.

 

All tools broken in the course of the job will be
replaced.

 

12

 

Section
7.  Only those jobs
which are presently designated as leader’s jobs by the Company are covered by
the terms of this Agreement.

 

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

 

Under no circumstances does the agreement to pay additional
monies for the affected jobs infringe on Job Evaluation nor does it set
precedent for future jobs installed in accordance with Job Evaluation, Article
VI.

 

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

 

Section
8.  The Company agrees
to provide payroll deduction for a Credit Union, if one is established.

 

Section
9.  Pay for
Workmen’s Compensation Injuries. 
Day of injury and outside medical attention required:

 

Return
to work after outside treatment:

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

 

Does
not return to work from outside treatment:

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

 

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

 

 

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

 

Return
to work after treatment:

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

 

Does
not return to work after treatment:

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

 

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

 

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

 

Section
10.  Employees
attending company-sponsored training programs outside of a 50-mile radius will
be reimbursed for travel time at the employee’s straight-time rate.

 

13

 

Section
11.  It is agreed that
any vending machine profits in the Plant will be divided equally between the
Company and the Union to be used for the Family Picnic Fund.

 

ARTICLE XV

 

Insurance and
Pension Benefits

 

Section
1.  A pension plan and
insurance program have been provided in agreements which are separate and apart
from this Agreement.

 

Section
2.  An employee’s
insurance terminates at the end of the first month in which an employee is
granted a personal leave, or is laid off with 3 days’ notice; or at the end of
the month following the month laid off without 3 days’ notice.

 

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

 

Section
3.  In accordance with
the contractual terms as outlined in Article XV, Section 2., medical and life
insurance benefits are continued during term of leave for a period not to
exceed 39 weeks.

 

Section
4.  MEDICAL AND INSURANCE BENEFITS

 

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

 

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

 

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

 

The following is a brief outline of the insurance
program.  The employee should always
refer to the insurance booklet provided, or contact the Human Resources
Department should there be questions concerning eligibility or limitations of
insurance coverage:

 

INSURANCE

 

Eligibility begins on the first day after you have
completed ninety (90) days of continuous service for the employee and eligible
dependents.

 

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

 

	
  Medical:

  	
   

  	
  -Steelworkers 100/80
  PPO

  
	
   

  	
   

  	
  -Steelworkers Drug
  Option C

  
	
   

  	
   

  	
   

  
	
  Vision:

  	
   

  	
  -Steelworkers
  OptiCholce Vision

  
	
   

  	
   

  	
   

  
	
  Dental:

  	
   

  	
  -Steelworkers Dental
  Plan A

  

 

14

 

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

 

	
  Type

  Coverage:

  	
   

  	
  Contract

  Year 1:

  	
   

  	
  Contract

  Year 2:

  	
   

  	
  Contract

  Year 3:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Family

  	
   

  	
  $

  	
  28.00

  	
   

  	
  $

  	
  38.00

  	
   

  	
  $

  	
  44.00

  	
   

  
	
  Single

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  23.00

  	
   

  	
  $

  	
  29.00

  	
   

  

 

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

 

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

 

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

 

MEMORANDUM OF UNDERSTANDING

 

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

 

30-Year Retirement (early retirement without actuarial
reduction).  An employee who attains 30
or more years of service may elect to retire with a full pension (not actuarily
reduced) regardless of age.  Employees
retiring as of April 30, 1996, will have their retiree Major Medical Lifetime
maximum increased from $2,500.00 to $10,000.00.

 

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

 

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

 

(2)                                  at
least 15 years of service and combined age and years of service equal 80 or
more.

 

15

 

ARTICLE XVI

 

Union and
Management Cooperation

 

Section
1.  The Company and
the Union recognize the advisability of making every effort to constantly
improve relationships between the Company, the Union and all employees.  In the interest of improving relationships
and to provide a forum for the discussion of overall problems of mutual
concern, inclusive of Civil Rights, other than specific grievance cases, a
Labor-Management Committee consisting of the Unit President and three (3) other
members of the bargaining unit, the Plant Manager and Management
Representatives designated by the Company shall meet monthly on Company time to
discuss problems which may cause a disruption in relationships or to suggest
means of improving relationships, provided the Union provides the Company with
a written agenda for this meeting at least one (1) business day prior to the
meeting.

 

ARTICLE XVII

 

Vacations

 

Section 1.                Vacation
Period. The vacation year begins on January 1 and ends on December 31 of
the current year.

 

Section 2.                Eligibility.

 

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

 

	
  Accumulated Service on or Before

  December 31 of the Current Year

  	
   

  	
  Vacation

  	
   

  
	
  1
  year

  	
   

  	
  2 weeks

  	
   

  
	
  10
  years

  	
   

  	
  3 weeks

  	
   

  
	
  20
  years

  	
   

  	
  4 weeks

  	
   

  

 

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

 

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

 

16

 

Section 3.                Vacation
Schedule.

 

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

 

a.-1.                          No
employee will be required to work during a vacation shutdown or properly
scheduled vacation period without thirty (30) days notice.  Employees scheduled for inventory work
during the shutdown will be scheduled at least 10 days in advance, except where
circumstances do not permit.

 

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

 

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

 

c.                                       When
a paid holiday falls within an employee’s scheduled vacation, he/she shall
receive an extra day off at his/her discretion with one week’s notice or
receive eight (8) hours additional pay for the holiday.  If the holiday falls during a plant vacation
shutdown, that holiday will be scheduled by the Company.  The Company will notify the union by May
31st of each contract year whether or not the holiday during the plant shutdown
will be scheduled immediately prior to or after the shutdown, or whether the
holiday may be used at the employee’s discretion with five (5) days’ notice.

 

d.                                      No
employee will be required to work overtime on the weekend or sixth or seventh
day prior to or following his/her vacation period.

 

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

 

e.                                       Work
during plant shutdown will be in seniority order by the classifications needed
on their respective shifts.  When
notified by May 31st of each year, employees scheduled to work in their
classification, must work or will be subject to disciplinary action.

 

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

 

17

 

g.                                      Inventory
during vacation shutdown will be filled in seniority order.

 

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

 

Section 4.                Vacation
Pay.

 

a:                                       For
eligible employees, vacation pay shall be based on the average hours worked by
the employee for the first two-week period of the six weeks immediately
preceding the vacation period.  An
employee may make their selection once per year in order to determine which
vacation period the Company will use to establish their vacation pay.

 

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

 

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

 

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

 

Section 5.                For
each week of vacation as provided under this Article, Section 2.a., an employee
will receive a $45.00, per week, vacation bonus, effective March 28, 1981.

 

Section 6.                Employees
required to work during vacation shutdown and taking their vacation at another
time, the Company will pay the higher pay of the two (2) eligibility periods.

 

ARTICLE XVIII

 

Seniority

 

Section
1.  Definition of Seniority.  Seniority is defined as the length of an
employee’s continuous service with the Company and shall date from the time of
the employee’s most recent hiring.

 

Section
2.  Loss of Seniority.  Seniority shall cease and employment
terminate upon:

 

a.                             Resignation
or quit.

 

b.                            Discharge
with cause.

 

18

 

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

 

d.                            Failure
to report for work within three (3) work days after the expiration of a leave
of absence.

 

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

 

f.                               Layoff
from the Company for more than forty-eight (48) consecutive months for an
employee with more than six (6) months service, or for a period equal to twice
his/ her length of service if the employee has less than six (6) months of
service. Employees who bid or are recalled to jobs they cannot perform and, as
a result, are disqualified by themselves or the Company, will not start their
recall periods over again.

 

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

 

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

 

Section
5.  Seniority List.  The Company will maintain seniority records
of all employees which will be available in the Human Resources Department for
examination by the Union. Copies of Group seniority lists and a plant-wide
seniority list will be given to the Local Unit President and Unit Griever every
six months upon request. The International Representative will be provided with
a seniority list upon request, as well as the Local Unit President.

 

Section
6.  Group Seniority.  New employees when hired will be assigned to
a group and will accumulate seniority in the group. When an employee bids to a
different group and accumulates two (2) months of service within one (1) year,
he/she will be credited with his/her full Plant seniority in that group. For
purposes of this Article, the various seniority groups and the job
classifications assigned to them shall be as listed in Appendix “B” of this
Agreement.

 

Section
7.  Promotion to Excluded Position.  Employees transferred from the Bargaining
Unit to an excluded position will cease to accumulate seniority on the date of
his/her transfer. Should such transferred employee for any reason return to the
Bargaining Unit, within

 

19

 

90 calendar days of his/her initial transfer, he/she will receive the
seniority he/she had on the date of his initial transfer. In the event the
transferred employee fails to return to the Bargaining Unit within the 90 calendar
days of the initial transfer, his/her seniority will be frozen as of the time
he/she left the Bargaining Unit.  If
such transferred employee thereafter returns to the Bargaining Unit, it will be
as a General Laborer, seniority permitting. No employee may transfer back into
the Bargaining Unit more than once during the life of this Agreement. Salaried
employees who moved from the Bargaining Unit under prior contracts will be
covered by the provisions effective at those times.

 

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

 

Section
9.  Local Union Officers and Committee
on Layoff.  It is
understood that the following Local Union Officers shall have top seniority for
layoff purposes during their respective terms in office: Local Union President
and/or Unit President and Unit Grievers.

 

a.                             The
Local Union President and/or Unit President and Unit Grievers shall not be
bumped from their respective shifts unless their jobs are eliminated.

 

b.                            The
Chairman of the Grievance Committee will be permitted work on the first shift
provided there is a job in his/her classification on the first shift. For this
purpose, the Chairman will be accorded super seniority with respect to bumping
into the first shift or immunity from being bumped from it. The Unit President
will be Chairman of the Grievance Committee.

 

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

 

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

 

20

 

e.                             An
elected Unit Griever will not hold a preferred job on his shift until he
exhausts his seniority rights according to the contract.

 

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

 

FILLING PERMANENT JOB VACANCIES

 

Section
10.  Seniority Recognition.

 

a.                             It is
the intent of both parties to give the senior employee the opportunity for
higher paying jobs and choice of shifts, provided the employee has the ability
and qualifications to perform the work available, subject to the procedures and
in the order outlined herein.

 

b.                            On
plant-wide bids, employees may bid up, but not laterally or downgrade
themselves, without a valid reason. During the life of this contract, an
employee will be permitted the opportunity to bid laterally or downgrade one
time for any reason.

 

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

 

Section
11.  Procedure.

 

a.          Group Preference:

 

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

 

21

 

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

 

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

 

If an employee is bumped
from his/her home group and acquires two months seniority within one year in
another group, the employee will be permitted to select the new group any time
after obtaining group seniority.

 

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

 

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

 

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

 

b.                            Plant-wide
Bid:  If the job is not
filled by the procedure outlined in a. above, the job vacancy will be posted
plant-wide for three (3) working days, excluding Saturday and Sunday and
holidays. Applicants applying for the job will be given consideration in Plant
seniority order to determine if they have the necessary ability and
qualifications to meet the job requirements. If the Company voids a posted job,
it must be re-bid before anyone is placed on it. Should a bidder be
disqualified by the Company or himself/herself, the next eligible bidder may be
awarded the job. Should the next eligible bidder be disqualified, the bid may
be re-posted.

 

If there are no
successful bidders on an open job and it is not filled by the Company within
thirty (30) days, it will be re-bid. All openings created by job bids shall be
filled by the above procedure.

 

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

 

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

 

22

 

job as trainees. Wherever
practical, present employees will be given preference for training on open jobs
before hiring from outside. Seniority will be the controlling factor in any
selection providing all other factors are of relatively equal value.

 

e.                             Permanent
shift swapping will be allowed within the classification provided no one else
is involved.

 

f.                               Temporary
shift swapping will be allowed within the classification provided no one else
is involved, and the employees are immediately qualified for the job
assignment.

 

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

 

Section
12.  Bidding by Absentee.  Employees who are to be absent from the
Plant up to one month may notify the Human Resources Department of their desire
to be considered for specific jobs which may be posted during their absence.

 

Section
13. Posting of Award. 
The names of successful bidders with their seniority and the job awarded
shall be posted on the bulletin board within two (2) weeks of the posting
period.

 

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

 

a.                             An
employee will be moved to the posted job within six (6) weeks of his
acceptance.

 

Section
14.  Inter-Departmental Bidding
Restriction.  New
employees and employees accepted in another group on a posted bid will be
restricted from bidding for another posted job within another group for a
period of six (6) months after reaching full job rate for classifications 1-4
and two (2) years for classifications 5-12. New employees hired in labor grades
1 and 2 may bid plant-wide for open jobs after ninety (90) calendar days.

 

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

 

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

 

b.                            The
Company will provide the Chairman of the Grievance Committee with copies of all
posted job bids as well as posted job awards.

 

23

 

c.                             If no
employee in a seniority group bids on a group opening, the six-month
restriction will be waived for any employee within the group with less than six
months in a new job.

 

REDUCTION IN WORK
FORCE

 

Section
15.

 

a.                             In
case of a layoff: the least senior employee in the job classification will
return to his/her home group, or if this is his/her home group, he/she will be
allowed to bump up, provided he/she has previously held the job classification
and can demonstrate immediate proficiency. 
Employees not eligible to bump up will retrograde in his/her group on
the basis of his/her group seniority, provided he/she has the ability and
qualifications to perform the job (up to three days in which to demonstrate
proficiency).

 

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

 

b.                            If the
employee is bumped from his/her home group, the employee may bump in reverse
order of last job held to next to the last job held and so on, to any job in
which they have attained group seniority, provided they are immediately
qualified after being familiarized with anything new to the equipment and
operations.

 

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

 

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

 

d.                            Any
employee involved in layoff procedure shall be given full rights and benefits
under this Agreement according to their Plant seniority.

 

e.                             An
employee is prohibited from bumping to a job on which he/she has already
disqualified himself/herself. Employees refusing recall to a classification, or
who withdraw their names from a bid job, do not give up bumping rights to the
highest classification previously held.

 

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

 

24

 

a.                             If
there is a reduction in force in a classification, the senior employee(s) in
that classification may elect to take a Voluntary Layoff. Employee(s) accepting
layoff will be on layoff until recalled by seniority to the group from which they
left. An employee may reject recall to an open position and remain on layoff if
the employee has the seniority and there are still employees on layoff. The
Company will not deny unemployment benefits to employees who accept this
layoff.

 

Section
17.  An employee may
exercise a shift preference within his/her job classification prior to vacation
shutdown of each year, or prior to the first work week in August, should there
be no vacation shutdown. Such preference will be granted provided the employee
has sufficient seniority to displace the employee on the desired shift. If an
employee attains group seniority before July 1 of the current year, the
affected employee may exercise a shift preference within his/her job
classification provided the employee has sufficient seniority to displace the
employee on the desired shift.

 

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

 

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

 

Section
18.  (Number of days
shown below will be defined as working days.)

 

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

 

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

 

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

 

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

 

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

 

25

 

particular job will be
canvassed for the open shift and the employee(s) involved will be moved
immediately.

 

6.                             If
the Union shows where the Company has abused the training program by not
providing proper training to an employee, that particular job will be shift
canvassed and the employee involved will be moved immediately.

 

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

 

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

 

Section
19.  Where the employee’s
personal health limitations are expected to be permanent or of long, continued
duration, and where the employee downgrades to the General Labor group, he/she
will assume the position of General Laborer and shall be credited with his/her
full Plant seniority without having to accumulate two (2) months of service as
required by Section 6. of Article XVIII.

 

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

 

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

 

Section
20.  Notices of
employee hires and terminations will be sent to the Union’s Financial
Secretary.

 

Section
21.  Temporary Bids

 

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

 

26

 

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

 

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

 

ARTICLE XIX

 

Hours of Work

 

Section
1.  This article is
intended to provide a basis for calculating overtime only. It shall not be
construed as a guarantee of hours to be worked by an individual employee or
group of employees per day or per week.

 

The Company may rotate employees in a department for a
period not to exceed 4 weeks. During rotation, the department will operate 5
days per week, but employees will be rotated on a continuing basis so that no
employee loses more than one day out of each week. If a longer rotation period
is necessary, the Company will be obliged to negotiate that with the Union.

 

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

 

Section
3.  Work Day.  A work day shall be defined as a consecutive
24-hour period beginning with the starting time of an employee’s shift. Eight
continuous hours of work interrupted by regularly scheduled lunch periods shall
constitute a day’s work.

 

Section
4.  Working Schedules.  Except where an off-standard work week is
established by the Company, the following are the working hours of the various
shifts. The Company may operate these different shift schedules simultaneously
within the Plant or any department.

 

	
  One-shift operation:

  	
   

  	
  7:00 a.m. - 3:00 p.m.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Two-shift operation:

  	
   

  	
  7:00 a.m. - 3:00 p.m.

  	
   

  
	
   

  	
   

  	
  3:00 p.m. -11:00 p.m.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Three-shift operation:

  	
   

  	
  7:00 a.m. - 3:00 p.m.

  	
   

  
	
   

  	
   

  	
  3:00 p.m. -11:00 p.m.

  	
   

  
	
   

  	
   

  	
  11:00 p.m. - 7:00 a.m.

  	
   

  

 

27

 

 

Four-shift operation:

 

	
   

  	
   

  	
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  Sat.

  	
   

  	
  Sun.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  

 

Section
5.  Premium Pay - Four Shift.  Employees who are on a four-shift schedule
will receive time and one-eighth for regularly scheduled hours worked on
Saturdays and time and one-quarter for regularly scheduled hours worked on
Sundays.

 

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

 

Section
7.  Reporting Pay.  In the event an employee reports for work as
scheduled, he/she will be given at least four hours of work - or be sent home.
If an employee reports to work as scheduled and work is not available, he/she
will be assigned other work and be paid at least four hours pay at his/her
regular rate. If he/she is sent home, he/she will be paid four hours pay at
his/her regularly assigned rate. This does not apply where: (1) the employee is
unfit for work; (2) the inability to provide work is due to emergency
situations; or (3) he/she is notified not to report to work. Employees are
required to maintain a reliable method of being contacted by phone to qualify
for reporting pay.

 

Section
8.  Division of Overtime.  No employee will be required to work more
than eight (8) hours voluntary or required overtime in a work week, and no more
than two (2) 6th-days, per month. On a weekly basis, the Company will post an
overtime sign-up roster in designated areas. Any employee wishing to work
overtime will indicate their preference on that sheet. When the Company has a
need for overtime, it will offer it to the most senior employee in the
classification on that roster. If there are no volunteers on the roster, the
junior employee in the classification will be required to work the overtime,
unless that junior employee has already worked eight (8) hours overtime during
that week. Opportunities for voluntary overtime will be rotated daily based on
seniority. Employees signing the overtime roster will be expected to work if
needed. If a mistake is made on overtime, that employee will be offered the
next available overtime opportunity. There will be no records kept, except
weekly posted sheets for time and one-half. Double-time scheduling for
employees will be kept within eight (8) hours on a shift and twenty-four (24)
hours between shifts where practical. Appropriate records will be kept. No
employee will be required to work on their 6th or 7th day unless told by the
end of his/her shift on the fourth day of their work week. Required overtime
will not be scheduled by phone.

 

28

 

Section 9.  Overtime Pay.

 

a.                                       Except
as provided in b. below, time and one-half shall be paid for all hours or parts
of hours worked:

 

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

 

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

 

a: 3. on the sixth
day of the scheduled work week.

 

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

 

Section 10.  On Four-Shift Operation.

 

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

 

2.                                       When
an employee is involuntarily transferred due to being bumped, etc., he/she will
receive premium pay for working on the sixth and/or seventh day of his/her old
work week schedule.

 

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

 

4.                                       This
section insures employees on a 4-shift operation will be recognized for the
purpose of payment on his sixth and/or seventh day.

 

29

 

	
  Type of
  Shift Change

  	
  OLD
  SCHEDULE

  	
  End of

  Payroll Week

  	
  NEW
  SCHEDULE

  	
   

  
	
  Three

  Shift

  	
   

  	
  To A

  Four Shift

  Schedule

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  
	
  1st to 2nd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  1st to 3rd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  
	
  1st to 4th

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd to 1st

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  2nd to 2nd

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  2nd to 3rd

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  
	
  2nd to 4th

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd to 1st

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  3rd to 2nd

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  3rd to 3rd

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  
	
  3rd to 4th

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  

 

30

 

	
  Type of
  Shift Change

  	
  OLD
  SCHEDULE

  	
   

  	
  End of

  Payroll Week

  	
   

  	
  NEW
  SCHEDULE

  	
   

  
	
  Four

  Shift

  	
   

  	
  To A Three

  Shift

  Schedule

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  
	
  1st to 2nd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  1st to 3rd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd to 1st

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  2nd to 2nd

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  2nd to 3rd

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
   

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd to 1st

  	
   

  	
   

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  3rd to 2nd

  	
   

  	
   

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  3rd to 3rd

  	
   

  	
   

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4th to 1st

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  4th to 2nd

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  4th to 3rd

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  	
  OFF

  	
   

  

 

31

 

	
  Type of
  Shift Change

  	
  OLD
  SCHEDULE

  	
  End of

  Payroll Week

  	
  NEW
  SCHEDULE

  	
   

  
	
  Four

  Shift

  	
   

  	
  To A

  Four Shift

  Schedule

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  
	
  1st to 2nd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  1st to 3rd

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  
	
  1st to 4th

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd to 1st

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  2nd to 3rd

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  
	
  2nd to 4th

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd to 1st

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  3rd to 2nd

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  3rd to 4th

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4th to 1st

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
  4th to 2nd

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
  4th to 3rd

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
   

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
   

  	
   

  

 

32

 

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

 

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

 

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

 

Section 13.  Master Overtime Roster.

 

The
Company will post a Master Overtime Roster once a month. Employees desiring to
work overtime after the group has declined must sign for overtime in the area
they desire to work.

 

The
Company will have the right to choose qualified employees when a specific skill
is required.

 

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

 

If
more than one employee who is capable of performing the work signs, the senior
person will be scheduled.

 

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

 

Employees
accepting overtime through this provision will be paid at the rate of pay for
the job they perform.

 

ARTICLE XX

 

Settlement of Differences

 

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

 

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

 

33

 

dispute is not
settled in accordance with an oral discussion between the supervisor, the
employee and/or the committeeman, then the dispute may be reduced to writing
and submitted to the respective supervisor. Grievance must be returned to the
employee and his/her committee-man within 48 working hours with a written
answer to the dispute. Should the dispute remain unsettled, it may be submitted
to Step II within five (5) working days from the date of the written answer.

 

STEP
II.                   On
the first and third Thursdays of each calendar month, Step II cases will be
heard by the Step II Committee which shall consist of up to three (3)
representatives of management and up to three (3) representatives of the Local
Unit. If the dispute still remains unsettled, it may be appealed by the Union
to the Third Step within seven (7) working days following the hearing in Step
II. A hearing in Step III will be scheduled at the earliest convenience of the
parties.

 

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

 

Time
limitations in all steps may be waived by mutual agreement between the Union
and the Company.

 

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

 

Section 3.  The arbitrator shall first determine the
arbitrability of any issue submitted. No issue shall be arbitrable unless said
issue involves the meaning, application of, or compliance with a specific provision
or provisions of this Agreement. The arbitrator shall not add to, subtract
from, or modify any of the provisions of this Agreement; and shall not reverse
management’s decision except when in his/her judgement, management has acted
without just cause. The arbitrator’s award shall in no case be retroactive
beyond thirty (30) days prior to the filing of the written grievance which
constituted the issue in question.

 

The
proper expenses of the arbitrator and the arbitration proceedings shall be
shared equally by the parties.

 

34

 

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

 

Section 5.  Grievances which shall arise between the
Union and the Company concerning employee discipline shall have priority over
all other cases under this Article of the Labor Agreement. In a case involving
suspension or discharge, the Chairman of the Grievance Committee and the Human
Resources Manager will schedule a hearing within one (1) working day if
requested by the Chairman of the Grievance Committee.

 

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

 

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

 

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

 

Section 9.  The time limitations herein shall not
include Saturdays, Sundays, holidays and may be extended at any time by mutual
agreement in writing by the representatives involved in each step.

 

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

 

Section 11.  Grievances heard at the 2nd Step will be
heard at the following times, dependent upon what shift the grievance
originated:

 

	
  1st shift - Anytime
  during the shift

  
	
   

  
	
  2nd shift - 2:00 p.m.
  or later

  
	
   

  
	
  3rd shift - 7:30 a.m.
  or earlier

  

 

ARTICLE XXI

 

Check Off

 

The
Company, for those employees who have heretofore or hereafter by written
authorization so directed, shall deduct from the first pay of each month the
proper Union dues for the previous month, an initiation fee for new members,
assessments, and promptly remit same to the International Secretary-Treasurer
of the Union.

 

Effective
July 1, 1999, the Company agrees to accept written wage assignment
authorization of not less than one dollar ($1.00) from employees providing for
payroll deductions from their earnings for United Steelworkers of America
Political Action Fund (USWA-PAF). The Company shall remit monthly all monies so
deducted to the International Treasurer of the

 

35

 

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

 

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

 

The
Union shall indemnify the Company and hold it harmless against any and all
suits, claims, demands and liabilities that shall arise out of or by reason of
any action that shall be taken by the Company for the purpose of complying with
the foregoing provisions of this Article.

 

ARTICLE XXII

 

Sub-Contracting

 

With
respect to production and maintenance work, including tooling which is
regularly performed by Bargaining Unit employees, the Company will endeavor to
utilize its available equipment and personnel before sub-contracting this work.
Where the Company determines the need for sub-contracting, the reason shall be
discussed with the Union prior to such sub-contracting.

 

MEMORANDUM OF AGREEMENT

 

With
respect to Green operations, if the Company elects to sub-contract such work,
the Company will establish its own Shipping Department within twelve (12) months
and transfer production of L&S rollers to Tyson by August, 2002 and add
military packing jobs, which should total 8-12 jobs. Over the next twenty-four
(24) months, the out-sourcing will affect jobs in Green Department, Cold
Forming, and Tool Room, for a total of twenty-six (26) jobs. This memorandum is
agreed to on a non-precedent setting basis and in no way affects either party’s
position concerning sub-contracting under the contract. This memorandum will
not be used in any grievance or arbitration proceeding, unless it involves a
dispute concerning this memorandum.

 

ARTICLE XXIII

 

Termination and Notice

 

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

 

Section 2.  Termination.

 

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

 

36

 

calendar days
prior to March 25, 2005. Negotiations shall begin within ten (10) days
subsequent to the receipt of the notice.

 

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

 

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

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.

 

	
  FOR THE COMPANY:

  
	
  TYSON BEARING COMPANY, INC.

  
	
   

  
	
  George A. Sabochick,
  Director of Operations

  
	
  Linda S. Hester, Human
  Resources Manager

  
	
  Billy Joe Martin,
  Factory Manager

  
	
   

  
	
   

  
	
  FOR THE UNION:

  
	
  UNITED STEELWORKERS OF AMERICA

  
	
  AFL-CIO, CLC - On Behalf of Its

  
	
  LOCAL UNION #7461-01

  
	
   

  
	
   

  
	
  Leo W. Gerard,
  International President

  
	
  James English,
  International Secretary-Treasurer

  
	
  Andrew V. Palm,
  International Vice President (Administration)

  
	
  Leon Lynch, International
  Vice President (Human Affairs)

  
	
  Ernest R. Thompson,
  Director, District 8

  
	
  Frank Pittman,
  Sub-District Director

  
	
  Joe Villines, Staff
  Representative

  
	
   

  
	
   

  
	
  NEGOTIATING COMMITTEE

  
	
   

  
	
  Stephen M. Williams,
  President, Local 7461

  
	
  Bobby R. Deckard, Unit
  President, Local 7461-01

  
	
  Roger D. Judd,
  Negotiating Committee

  
	
  James M. Martin,
  Negotiating Committee

  
	
  Thomas N. Samson,
  Negotiating Committee

  

 

37

 

APPENDIX A

 

(Employees Hired
Prior to March 31, 1996)

 

	
  Progression
  Steps Labor

  	
   

  	
  Full Job
  Grade

  	
   

  	
  Rate

  	
   

  
	
  1st

  	
   

  	
  2nd

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  $

  	
  2.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2.20

  	
   

  
	
  $

  	
  2.17

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  2.27

  	
   

  
	
  2.24

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  2.34

  	
   

  
	
  2.36

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  2.47

  	
   

  
	
  2.48

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
  2.60

  	
   

  
	
  2.51

  	
   

  	
  2.63

  	
   

  	
  7

  	
   

  	
  2.75

  	
   

  
	
  2.66

  	
   

  	
  2.78

  	
   

  	
  8

  	
   

  	
  2.91

  	
   

  
	
  2.80

  	
   

  	
  2.93

  	
   

  	
  9

  	
   

  	
  3.07

  	
   

  
	
  2.97

  	
   

  	
  3.11

  	
   

  	
  10

  	
   

  	
  3.26

  	
   

  
	
  3.24

  	
   

  	
  3.39

  	
   

  	
  11

  	
   

  	
  3.55

  	
   

  
	
  3.51

  	
   

  	
  3.67

  	
   

  	
  12

  	
   

  	
   

  	
   

  
										

 

Effective
6/01/02, in addition to the above scale, there will be add-ons of $12.10, per
hour, for labor grades 1 through 9; $12.20, per hour, for labor grade 10;
$12.25, per hour, for labor grade 11; and $12.30, per hour, for labor grade 12.

 

Effective
4/01/03, in addition to the above scale, there will be add-ons of $12.40, per
hour, for labor grades 1 through 9; $12.50, per hour, for labor grade 10;
$12.55, per hour, for labor grade 11; and $12.60, per hour, for labor grade 12.

 

Effective
4/01/04, in addition to the above scale, there will be add-ons of $12.70, per
hour, for labor grades 1 through 9; $12.80, per hour, for labor grade 10;
$12.85, per hour, for labor grade 11; and $12.90, per hour, for labor grade 12.

 

PROGRESSION PERIODS PER STEP

 

	
  Labor Grades 3-4

  	
   

  	
  20 Working Days

  
	
  Labor Grades 5-8

  	
   

  	
  40 Working Days

  
	
  Labor Grades 9-12

  	
   

  	
  60 Working Days

  

 

38

 

WAGE SCHEDULE

GLASGOW PLANT

(Base Rate Plus Add-on)

 

(Employees Hired
Prior to March 31, 1996)

 

	
  Labor Grade

  	
   

  	
  Effective
  6/01/02

  	
   

  	
  Effective
  4/01/03

  	
   

  	
  Effective
  4/01/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  $

  	
  14.30

  	
   

  	
  $

  	
  14.60

  	
   

  	
  $

  	
  14.90

  	
   

  
	
  2

  	
   

  	
  14.30

  	
   

  	
  14.60

  	
   

  	
  14.90

  	
   

  
	
  3

  	
   

  	
  14.37

  	
   

  	
  14.67

  	
   

  	
  14.97

  	
   

  
	
  4

  	
   

  	
  14.44

  	
   

  	
  14.74

  	
   

  	
  15.04

  	
   

  
	
  5

  	
   

  	
  14.57

  	
   

  	
  14.87

  	
   

  	
  15.17

  	
   

  
	
  6

  	
   

  	
  14.70

  	
   

  	
  15.00

  	
   

  	
  15.30

  	
   

  
	
  7

  	
   

  	
  14.85

  	
   

  	
  15.15

  	
   

  	
  15.45

  	
   

  
	
  8

  	
   

  	
  15.01

  	
   

  	
  15.31

  	
   

  	
  15.61

  	
   

  
	
  9

  	
   

  	
  15.17

  	
   

  	
  15.47

  	
   

  	
  15.77

  	
   

  
	
  10

  	
   

  	
  15.46

  	
   

  	
  15.76

  	
   

  	
  16.06

  	
   

  
	
  11

  	
   

  	
  15.80

  	
   

  	
  16.10

  	
   

  	
  16.40

  	
   

  
	
  12

  	
   

  	
  16.14

  	
   

  	
  16.44

  	
   

  	
  16.74

  	
   

  
											

 

39

 

(Employees Hired
After March 31, 1996)

 

	
  Progression
  Steps

  	
   

  	
  Labor
  Grade

  	
   

  	
  Full Job
  Rate

  	
   

  
	
  1st

  	
   

  	
  2nd

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  $

  	
  2.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2.20

  	
   

  
	
  $

  	
  2.17

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  2.27

  	
   

  
	
  2.24

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  2.34

  	
   

  
	
  2.36

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  2.47

  	
   

  
	
  2.48

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
  2.60

  	
   

  
	
  2.51

  	
   

  	
  2.63

  	
   

  	
  7

  	
   

  	
  2.75

  	
   

  
	
  2.66

  	
   

  	
  2.78

  	
   

  	
  8

  	
   

  	
  2.91

  	
   

  
	
  2.80

  	
   

  	
  2.93

  	
   

  	
  9

  	
   

  	
  3.07

  	
   

  
	
  2.97

  	
   

  	
  3.11

  	
   

  	
  10

  	
   

  	
  3.26

  	
   

  
	
  3.24

  	
   

  	
  3.39

  	
   

  	
  11

  	
   

  	
  3.55

  	
   

  
	
  3.51

  	
   

  	
  3.67

  	
   

  	
  12

  	
   

  	
  3.84

  	
   

  
										

 

Effective
6/01/02, in addition to the above scale, there will be add-ons of $9.10, per
hour, for labor grades 1 through 9; $9.20, per hour, for labor grade 10; $9.25,
per hour, for labor grade 11; and $9.30, per hour, for labor grade 12.

 

Effective
4/01/03, in addition to the above scale, there will be add-ons of $9.40, per
hour, for labor grades 1 through 9; $9.50, per hour, for labor grade 10; $9.55,
per hour, for labor grade 11; and $9.60, per hour, for labor grade 12.

 

Effective
4/01/04, in addition to the above scale, there will be add-ons of $9.70, per
hour, for labor grades 1 through 9; $9.80, per hour, for labor grade 10; $9.85,
per hour, for labor grade 11; and $9.90, per hour, for labor grade 12.

 

PROGRESSION PERIODS PER STEP

 

	
  Labor Grades 3-4

  	
   

  	
  20 Working Days

  
	
  Labor Grades 5-8

  	
   

  	
  40 Working Days

  
	
  Labor Grades 9-12

  	
   

  	
  60 Working Days

  

 

40

 

WAGE SCHEDULE

GLASGOW PLANT

(Base Rate Plus Add-on)

 

(Employees Hired
After March 31, 1996)

 

	
  Labor
  Grade

  	
   

  	
  Effective
  6/01/02

  	
   

  	
  Effective
  4/01/03

  	
   

  	
  Effective
  4/01/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  $

  	
  11.30

  	
   

  	
  $

  	
  11.60

  	
   

  	
  $

  	
  11.90

  	
   

  
	
  2

  	
   

  	
  11.30

  	
   

  	
  11.60

  	
   

  	
  11.90

  	
   

  
	
  3

  	
   

  	
  11.37

  	
   

  	
  11.67

  	
   

  	
  11.97

  	
   

  
	
  4

  	
   

  	
  11.44

  	
   

  	
  11.74

  	
   

  	
  12.04

  	
   

  
	
  5

  	
   

  	
  11.57

  	
   

  	
  11.87

  	
   

  	
  12.17

  	
   

  
	
  6

  	
   

  	
  11.70

  	
   

  	
  12.00

  	
   

  	
  12.30

  	
   

  
	
  7

  	
   

  	
  11.85

  	
   

  	
  12.15

  	
   

  	
  12.45

  	
   

  
	
  8

  	
   

  	
  12.01

  	
   

  	
  12.31

  	
   

  	
  12.61

  	
   

  
	
  9

  	
   

  	
  12.17

  	
   

  	
  12.47

  	
   

  	
  12.77

  	
   

  
	
  10

  	
   

  	
  12.46

  	
   

  	
  12.76

  	
   

  	
  13.06

  	
   

  
	
  11

  	
   

  	
  12.80

  	
   

  	
  13.10

  	
   

  	
  13.40

  	
   

  
	
  12

  	
   

  	
  13.14

  	
   

  	
  13.44

  	
   

  	
  13.74

  	
   

  
											

 

41

 

APPENDIX B

Seniority Groups

 

	
  Group

  No.

  	
   

  	
  Group Name

  	
   

  	
  Job No.

  	
   

  	
  Job Title

  
	
  1

  	
   

  	
  Assembly

  	
   

  	
  0431

  	
   

  	
  Assembler

  
	
   

  	
   

  	
   

  	
   

  	
  0515

  	
   

  	
  Finish Stores
  Attendant-Assembly

  
	
   

  	
   

  	
   

  	
   

  	
  0719

  	
   

  	
  Assembly Utility Person

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  General

  	
   

  	
  0200

  	
   

  	
  General Laborer

  
	
   

  	
   

  	
   

  	
   

  	
  0411

  	
   

  	
  Utility Laborer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Shipping/ Receiving

  	
   

  	
  0509

  	
   

  	
  Material Handler-Mfg.

  
	
   

  	
   

  	
   

  	
   

  	
  0510

  	
   

  	
  Receiver/Shipper

  
	
   

  	
   

  	
   

  	
   

  	
  0608

  	
   

  	
  P.A. Stores-Receiving

  
	
   

  	
   

  	
   

  	
   

  	
  0813

  	
   

  	
  P.A. Receiving/Shipping

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Green

  	
   

  	
  0406

  	
   

  	
  SU&O Marking
  Machine

  
	
   

  	
   

  	
   

  	
   

  	
  0430

  	
   

  	
  SU&O Cold Saws

  
	
   

  	
   

  	
   

  	
   

  	
  0517

  	
   

  	
  SU&O Saws &
  Stampers

  
	
   

  	
   

  	
   

  	
   

  	
  0606

  	
   

  	
  Screw Machining
  Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0621

  	
   

  	
  Green Coolant Service
  Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning &
  Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
  0814

  	
   

  	
  SU&O Automatic
  Screw Machine

  
	
   

  	
   

  	
   

  	
   

  	
  0815

  	
   

  	
  SU&O CNC Lathes

  
	
   

  	
   

  	
   

  	
   

  	
  0902

  	
   

  	
  P.A. Machining

  
	
   

  	
   

  	
   

  	
   

  	
  0908

  	
   

  	
  SU&O CNC Lathes

  
	
   

  	
   

  	
   

  	
   

  	
  1104

  	
   

  	
  P.A. Machining

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Heat Treat

  	
   

  	
  0605

  	
   

  	
  Heat Treat Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0612

  	
   

  	
  Tool Hardener

  
	
   

  	
   

  	
   

  	
   

  	
  0721

  	
   

  	
  Heat Treat Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0722

  	
   

  	
  Tool Hardener

  
	
   

  	
   

  	
   

  	
   

  	
  0805

  	
   

  	
  Heat Treat P.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Inspection

  	
   

  	
  0300

  	
   

  	
  Bench Inspector

  
	
   

  	
   

  	
   

  	
   

  	
  0511

  	
   

  	
  Quality
  Inspector/Material Handler

  
	
   

  	
   

  	
   

  	
   

  	
  0603

  	
   

  	
  Tool & Gage
  Inspector-III

  
	
   

  	
   

  	
   

  	
   

  	
  0720

  	
   

  	
  Metallurgical
  Laboratory Technician

  
	
   

  	
   

  	
   

  	
   

  	
  0802

  	
   

  	
  Quality Auditor

  
	
   

  	
   

  	
   

  	
   

  	
  0803

  	
   

  	
  Tool & Gage
  Inspector-II

  
	
   

  	
   

  	
   

  	
   

  	
  0808

  	
   

  	
  Utility Inspector

  
	
   

  	
   

  	
   

  	
   

  	
  1003

  	
   

  	
  Tool & Gage
  Inspector-I

  
	
   

  	
   

  	
   

  	
   

  	
  1103

  	
   

  	
  Master Tool & Gage
  Inspector

  

 

42

 

APPENDIX
B (Continued)

Seniority
Groups

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Maintenance

  	
   

  	
  APPE

  	
   

  	
  Apprentice
  Electronic/Electrician

  
	
   

  	
   

  	
   

  	
   

  	
  APPM

  	
   

  	
  Apprentice Machine

  Repair/Maintenance Mechanic

  
	
   

  	
   

  	
   

  	
   

  	
  0704

  	
   

  	
  Machine Repair
  Maint.Mechanic-III

  
	
   

  	
   

  	
   

  	
   

  	
  0904

  	
   

  	
  Machine
  Repair/Maint.Mechanic-II

  
	
   

  	
   

  	
   

  	
   

  	
  1100

  	
   

  	
  Machine
  Repair/Maint.Mechanic-I

  
	
   

  	
   

  	
   

  	
   

  	
  1203

  	
   

  	
  Electronic/Electrician

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Tool Room

  	
   

  	
  APPT

  	
   

  	
  Apprentice Tool, Die
  & Gage Maker

  
	
   

  	
   

  	
   

  	
   

  	
  0401

  	
   

  	
  Tool Room Machine
  Operator-III

  
	
   

  	
   

  	
   

  	
   

  	
  0402

  	
   

  	
  Tool & Cutter
  Grinder-II

  
	
   

  	
   

  	
   

  	
   

  	
  0501

  	
   

  	
  Tool Room Machine
  Operator-II

  
	
   

  	
   

  	
   

  	
   

  	
  0602

  	
   

  	
  Tool & Cutter
  Grinder-I

  
	
   

  	
   

  	
   

  	
   

  	
  0701

  	
   

  	
  Tool Room Machine
  Operator-I

  
	
   

  	
   

  	
   

  	
   

  	
  0804

  	
   

  	
  Machinist-II

  
	
   

  	
   

  	
   

  	
   

  	
  1004

  	
   

  	
  Machinist-I

  
	
   

  	
   

  	
   

  	
   

  	
  1102

  	
   

  	
  Tool, Die & Gage
  Maker-II

  
	
   

  	
   

  	
   

  	
   

  	
  1202

  	
   

  	
  Tool, Die & Gage
  Maker-I

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Press

  	
   

  	
  0420

  	
   

  	
  O/O Single-Stage Press

  
	
   

  	
   

  	
   

  	
   

  	
  0616

  	
   

  	
  SU&O Phosphating

  
	
   

  	
   

  	
   

  	
   

  	
  0620

  	
   

  	
  SU&O Single-Stage
  Press

  
	
   

  	
   

  	
   

  	
   

  	
  0712

  	
   

  	
  Verson Line Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0716

  	
   

  	
  SU&O Cold Heading
  Machines

  
	
   

  	
   

  	
   

  	
   

  	
  0723

  	
   

  	
  Crib
  Attendant-Cage/Verson

  
	
   

  	
   

  	
   

  	
   

  	
  0903

  	
   

  	
  P.A. Verson Line

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Roll Grind

  	
   

  	
  0503

  	
   

  	
  Grinding Machine
  Operator-Roll

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning &
  Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Roll

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool Repair &
  Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Surface & O.D.
  Grind

  	
   

  	
  0611

  	
   

  	
  SU&O Surface/O.D.
  Grind

  
	
   

  	
   

  	
   

  	
   

  	
  0811

  	
   

  	
  P.A. Surface & O.D.

  

 

43

 

APPENDIX
B (continued)

Seniority
Groups

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Cup Grind

  	
   

  	
  0415

  	
   

  	
  Wash & Pack Cups

  
	
   

  	
   

  	
   

  	
   

  	
  0504

  	
   

  	
  Grinding Machine
  Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning &
  Control

  P.A., Cup & Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Cup

  
	
   

  	
   

  	
   

  	
   

  	
  0906

  	
   

  	
  Line Mechanic-Grinding
  A-

  Cup & Cone

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Cone Grind

  	
   

  	
  0504

  	
   

  	
  Grinding Machine
  Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning &
  Control P.A.,

  Cup & Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0906

  	
   

  	
  Line Mechanic-Grinding
  A-

  Cup & Cone

  

 

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

 

MEMO OF UNDERSTANDING

Preferential Hiring

 

Subject
to the terms of Article XVIII, Section 3., employees who are on layoff from the
TRB Division as of the date of sale of TRB, will be afforded preferential
hiring consideration in the HBU Division prior to hiring new employees from the
outside.  If laid-off TRB employees
should accept positions in the HBU Division, said employees shall forfeit their
recall rights to TRB and will only carry over whatever service they had with
SKF at the time of the sale of TRB.

 

44

 

[GRAPHICS - CALENDAR FOR 2002]

 

45

 

[GRAPHICS - CALENDAR FOR 2003]

 

46

 

[GRAPHICS - CALENDAR FOR 2004]

 

47

 

[GRAPHICS - CALENDAR FOR 2005]

 

48

 

REPORT-OFF PROCEDURE

 

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

 

System will automatically record date and time of each call.

 

1.                                       Your
name.

 

2.                                       Your
clock number.

 

3.                                       Your
foreman’s name.

 

4.                                       The
reason for your absence or tardiness, e.g. sickness, death of relative, car
breakdown, etc..

 

5.                                       When
you will return to work.

 

If you
cannot reach the report-off number, you are expected to call the regular Plant
number, 670-0000, and report off to your foreman.

 

HUMAN RESOURCES DEPARTMENT

 

49

 

MEMORANDUM OF AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

I.                                         Recognition

 

The Company agrees that
on the closing date it will recognize the Union as the exclusive bargaining
representative of the TYSON Bargaining Unit at the Glasgow plant and will honor
the terms of the labor contract, as modified herein.  The Union agrees to recognize the Company as the employer of the
TYSON Bargaining Unit under the terms of the labor contract with the rights of
management spelled out therein.  The
Company agrees to continue all benefits in the labor contract on behalf of the
TYSON Bargaining Unit except those that pertain exclusively to the HUB
operation at the Glasgow plant which will continue to be operated by SKF.

 

II.                                     Pension

 

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

 

50

 

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

 

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

 

III.                                 Retiree-
Applicants

 

Retiree-applicants
are subject to the following conditions:

 

a)                                      They
must confirm their availability for employment by the Company not later than
June 15, 1999 at 12:00 Noon.

 

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

 

c)                                      Retiree-applicants
who accept the Company’s offer will be employed under the terms of the labor
contract, except as follows:

 

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

 

2.                                       For
purposes of insurance benefits under Article XV, Section 4., they will be
treated as employees hired prior to March 27, 1993.

 

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

 

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

 

51

 

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

 

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

 

	
  - Single

  	
   

  	
  - $150.00, per
  month

  
	
  - Married with or
  without dependents

  	
   

  	
  - $250.00, per
  month

  

 

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

 

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

 

7.                                       (a)                                  In
the event that, during any fiscal year which occurs during the term of the
labor contract, the Company’s total production cost at the Tyson Glasgow
facility exceeds $40 million, the following shall occur prospectively for
retiree-applicants who are still active employees of the Company at the
beginning of the succeeding fiscal year:

 

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

 

•                                          They
shall have their annual vacation entitlement increased by one week.

 

In the event that during
any such fiscal year, the Company’s total production cost at the Tyson Glasgow
facility exceeds $50 million, the prospective enhancement of wage rates and
vacation entitlement shall be the following instead:

 

•                                          Wage
rates shall be increased by $3.00 per hour.

 

•                                          Vacation
eligibility under Article XVII, Section 2., of the labor contract shall be
determined by the employees’ full years of service, notwithstanding the fact
that they retired from SKF and were rehired by the Company as hereinbefore
provided.

 

52

 

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

 

IN
WITNESS WHEREOF, the Company and the Union have executed this Agreement by
their duly authorized representatives, this 10th day of June, 1999.

 

	
  TYSON BEARING

  	
  UNITED STEELWORKERS

  	
   

  
	
  COMPANY, INC.

  	
  OF AMERICA, AFL-CIO

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Michael S. Gostomski

  	
   

  	
  By:

  	
  Joe Villines,

  	
   

  
	
   

  	
   

  	
  Staff Representative

  
	
   

  	
   

  	
  Gary S. Bartley

  
	
   

  	
   

  	
  Twyman K. Appleby

  
	
   

  	
   

  	
  Dale Wright

  
							

 

53

 

MEMORANDUM
OF UNDERSTANDING

 

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

 

The
parties have decided that certain eligible employees should have the option to
forego group medical insurance benefits under Article XV, section 4, of the
1999-2002 collective bargaining agreement (hereinafter “the active employees’
plan”), in return for a monthly cash payment by the Company. The Company
represents that the coverage an electing eligible employee will receive under
this Agreement and the SKF USA, INC. plan will be at least equivalent to the
coverage he/she would receive under the active employees’ plan, and in the
event some disparity occurs, the Company will take the steps necessary to
eliminate the difference. The following additional conditions shall apply:

 

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

 

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

 

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

 

4.                                       An
eligible employee who voluntarily executes the written waiver of insurance
shall receive additional monthly salary in the following amounts, less
deductions required by law:

 

	
  - Single

  	
   

  	
  $100.00 per month

  
	
  - Dependents,

  	
   

  	
   

  
	
  married and/or
  eligible children

  	
   

  	
  $200.00 per month

  

 

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

 

6.                                       A
decision to forego Company-paid group medical insurance coverage is not
irrevocable. However, the employee’s ability to resume coverage at a later date
is subject to the terms of the policy, the determination of the carrier and
applicable provisions of controlling State or Federal law.

 

7.                                       An
employee who exercises such option shall remain eligible for Company-paid
prescription drug and dental insurance coverage under Article XV, section 4, of
the 1999-2002 collective bargaining agreement.

 

54

 

8.                                       At
the time an employee who exercises such option subsequently terminates his/her
employment with the Company, the Company will pay to him/her, in a lump sum, an
amount equal to the aggregate cost of the expenses covered by the SKF USA,
INC.  Major Medical lifetime maximum
during the period of time that such option to forego active employees’ plan
coverage was in effect.  The Company
will at the same time also pay to such employee an additional amount necessary
to cover the employee’s federal and/or state income tax liability, if any, on
such lump sum payment.  The employee is
required to submit documentation acceptable to the Company indicating the
amount of covered medical expenses which have been charged to such lifetime
maximum.

 

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

 

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

 

	
  TYSON BEARING

  COMPANY, INC.

  	
  UNITED STEELWORKERS

  OF AMERICA, AFL-CIO

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  E. P. Trouteaud

  	
   

  	
  By

  	
  Joe Villines

  	
   

  
	
   

  	
   

  	
  Bobby R. Deckard

  
	
   

  	
   

  	
  Charles Wayne Eaton

  
							

 

MEMORANDUM
OF AGREEMENT

 

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

 

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

 

55

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