Document:

exv10w1

 

Exhibit 10.1

MANAGEMENT CONTINUITY AGREEMENT

     THIS AGREEMENT dated as of this 21st day of May 2008 between Robert P. McKinney
(the “Executive”) and EnPro Industries, Inc., a North Carolina corporation (the “Company”).

     WHEREAS, the Company considers it essential to the best interests of its shareholders to
foster the continuous employment of key management personnel in the event there is, or is
threatened, a change in control of the Company; and

     WHEREAS, the Company recognizes that the uncertainty and questions which may arise among key
management in connection with the possibility of a change in control may result in the departure or
distraction of key management personnel to the detriment of the Company and its shareholders; and

     WHEREAS, the Company desires to provide certain protection to Executive in the event of a
change in control of the Company as set forth in this Agreement in order to induce Executive to
remain in the employ of the Company notwithstanding any risks and uncertainties created by the
possibility of a change in control of the Company;

WITNESSETH:

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained,
the parties agree as follows:

     1. Term. The “Term” of this Agreement shall mean the period commencing on the date
hereof and ending twenty-four (24) months after such date; provided, however, that commencing on
the date one year after the date hereof, and on each annual anniversary of such date (such date and
each annual anniversary thereof shall be hereinafter referred to as the “Renewal Date”), the Term
shall be automatically extended so as to terminate twenty-four (24) months from such Renewal Date,
unless at least sixty (60) days prior to the Renewal Date the Company shall give notice to the
Executive that the Term shall not be so extended.

     2. Period of Employment. Executive’s “Period of Employment” shall commence on the
date on which a Change in Control occurs during the Term and shall end on the date that is
twenty-four (24) months after the date on which such Change in Control occurs (subject to the
provisions of Section 20 below pursuant to which the Period of Employment may be deemed to have
commenced prior to the date of a Change in Control in certain circumstances).

     3. Certain Definitions. For purposes of this Agreement:

     “Board” shall mean the Board of Directors of the Company.

     “Cause” shall mean Executive’s termination of employment with the Company due to (A)
the willful and continued failure by Executive to substantially perform Executive’s duties
with the Company, which failure causes material and demonstrable injury to the Company
(other than any such failure resulting from Executive’s incapacity due to physical or mental
illness), after a demand for substantial performance is delivered

 

 

to Executive by the Board which specifically identifies the manner in which the Board
believes that Executive has not substantially performed Executive’s duties, and after
Executive has been given a period (hereinafter known as the “Cure Period”) of at least
thirty (30) days to correct Executive’s performance, or (B) the willful engaging by
Executive in other gross misconduct materially and demonstrably injurious to the Company.
For purposes hereof, no act, or failure to act, on Executive’s part shall be considered
“willful” unless conclusively demonstrated to have been done, or omitted to be done, by
Executive not in good faith and without reasonable belief that Executive’s action or
omission was in the best interests of the Company. Notwithstanding the foregoing, Executive
shall not be deemed to have been terminated for Cause unless and until there shall have been
delivered to Executive a Notice of Termination which shall include a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the entire
membership of the Board at a meeting of the Board called and held for the purpose (after
reasonable notice to Executive and an opportunity for Executive, together with Executive’s
counsel, to be heard before the Board), finding that in the good faith opinion of the Board
Executive was guilty of conduct set forth above in clause (A) (including the expiration of
the Cure Period without the correction of Executive’s performance) or clause (B) above and
specifying the particulars thereof in detail.

     “Change in Control” shall mean:

     (i) The acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (A) the then outstanding shares of common stock of
the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election
of directors (the “Outstanding Company Voting Securities”); provided, however, that the
following acquisitions shall not constitute a Change in Control: (A) any acquisition
directly from the Company (other than by exercise of a conversion privilege), (B) any
acquisition by the Company or any of its subsidiaries, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any of its
subsidiaries or (D) any acquisition by any company with respect to which, following such
acquisition, more than 70% of, respectively, the then outstanding shares of common stock of
such company and the combined voting power of the then outstanding voting securities of such
company entitled to vote generally in the election of directors is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such acquisition in substantially the same
proportions as their ownership, solely in their capacity as shareholders of the Company,
immediately prior to such acquisition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be; or (ii) individuals who, as of
the Distribution Date (as such term is defined in the Distribution Agreement among Goodrich
Corporation, EnPro Industries, Inc. and Coltec Industries Inc.), constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the Distribution
Date whose election, or nomination for election by the Company’s shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such

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individual were a member of the Incumbent Board, but excluding, for this purpose, any
such individual whose initial assumption of office occurs as a result of either an actual or
threatened election contest; or (iii) consummation of a reorganization, merger or
consolidation, in each case, with respect to which all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately prior to such
reorganization, merger or consolidation, do not, following such reorganization, merger or
consolidation, beneficially own, directly or indirectly, solely in their capacity as
shareholders of the Company, more than 70% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the company
resulting from such reorganization, merger or consolidation in substantially the same
proportions as their ownership, immediately prior to such reorganization, merger or
consolidation of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be; or (iv) consummation of (A) a complete liquidation or
dissolution of the Company or (B) a sale or other disposition of all or substantially all of
the assets of the Company, other than to a company, with respect to which following such
sale or other disposition, more than 70% of, respectively, the then outstanding shares of
common stock of such company and the combined voting power of the then outstanding voting
securities of such company entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the individuals
and entities, solely in their capacity as shareholders of the Company, who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such sale or
other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be.

“Date of Termination” is as defined in Section 8 below.

“Good Reason” shall mean:

     (i) without Executive’s express written consent, (A) the assignment to Executive of any
new duties or responsibilities substantially inconsistent in character with Executive’s
duties and responsibilities within the Company immediately prior to a Change in Control, (B)
any substantial adverse change in Executive’s duties and responsibilities as in effect
immediately prior to a Change in Control, including, but not limited to, a reduction in
duties or responsibilities which occurs because the Company is no longer an independent
publicly-held entity, (C) any removal of Executive from or any failure to re-elect Executive
to any director position of the Company, (D) a change in the annual or long term incentive
plan in which Executive currently participates such that Executive’s opportunity to earn
incentive compensation is impaired, (E) a material reduction in the aggregate value of
Company perquisites made available to Executive, (F) an elimination or material impairment
of Executive’s ability to participate in retirement plans comparable to those in which
Executive currently participates, (G) any substantial increase in Executive’s obligation to
travel on the Company’s business over Executive’s present business travel obligations, or
(H) an elimination or material impairment of Executive’s ability to receive stock options
with values comparable to those Executive was granted within the one year period preceding
the commencement of the Period of Employment; (ii) the failure of the Company to comply
with any other of its obligations

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under Section 4 herein; (iii) the relocation of the offices of the Company at which
Executive was employed immediately prior to the Change in Control to a location which is
more than fifty (50) miles from such prior location, or the failure of the Company to (A)
pay or reimburse Executive, in accordance with the Company’s relocation policy for its
employees in existence immediately prior to a Change in Control, for all reasonable costs
and expenses; plus “gross ups” referred to in such policy incurred by Executive relating to
a change of Executive’s principal residence in connection with any relocation of the
Company’s offices to which Executive consents, and (B) indemnify Executive against any loss
(defined as the difference between the actual sale price of such residence and the higher of
(1) Executive’s aggregate investment in such residence or (2) the fair market value of such
residence as determined by the relocation management organization used by the Company
immediately prior to the Change in Control (or other real estate appraiser designated by
Executive and reasonably satisfactory to the Company)) realized in the sale of Executive’s
principal residence in connection with any such change of residence; (iv) the failure of
the Company to obtain the assumption of and the agreement to perform this Agreement by any
successor as contemplated in Section 11 hereof; or (v) any purported termination of
Executive’s employment during the Period of Employment which is not effected pursuant to a
Notice of Termination satisfying the requirements of Section 7 hereof.

     “Incapacity Discharge” means Executive’s termination of employment with the Company if,
as a result of Executive’s incapacity due to physical or mental illness, Executive shall
have been absent from Executive’s duties with the Company on a full-time basis for
one-hundred twenty (120) consecutive business days, and within thirty (30) days after a
written Notice of Termination is given, Executive shall not have returned to the full-time
performance of Executive’s duties.

     “Mandatory Retirement Date” shall mean the compulsory retirement date, if any,
established by the Company for those executives of the Company who, by reason of their
positions and the size of their nonforfeitable annual retirement benefits under the
Company’s pension, profit-sharing, and deferred compensation plans, are exempt from, the
provisions of the Age Discrimination in Employment Act, 29 U.S.C. Sections 621, et seq.,
which date shall not in any event be earlier for any executive than the last day of the
month in which such Executive reaches age 65.

     “Notice of Termination” is as defined in Section 7 below.

     “Payment Period” shall mean twenty-four (24) months, provided that the Payment Period
shall not exceed the number of whole calendar months between the Executive’s Date of
Termination and Mandatory Retirement Date (if applicable).

     4. Compensation During Period of Employment. For so long during Executive’s Period of
Employment as Executive is an employee of the Company, the Company shall be obligated to compensate
Executive as follows:

     (a) Executive shall continue to receive Executive’s full base salary at the rate in
effect immediately prior to the Change in Control. Executive’s base salary shall be
increased annually, with each such increase due on the anniversary date of Executive’s most
recent previous increase. Each such increase shall be no less than an amount which

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at least equals on a percentage basis the mean of the annualized percentage increases
in base salary for all elected officers of the Company during the two full calendar years
immediately preceding the Change in Control.

     (b) Executive shall continue to participate in all benefit and compensation plans
(including but not limited to the Equity Compensation Plan, Long-Term Incentive Program,
Performance Share Deferred Compensation Plan, Annual Performance Plan, Executive Life
Insurance Program, Deferred Compensation Plan, 401(K) plan, savings plan, flexible benefits
plan, life insurance plan, health and accident plan or disability plan) in which Executive
was participating immediately prior to the Change in Control, or in plans providing
substantially similar benefits, in either case upon terms and conditions and at levels at
least as favorable as those provided to Executive under the plans in which Executive was
participating immediately prior to the Change in Control;

     (c) Executive shall continue to receive all fringe benefits, perquisites, and similar
arrangements which Executive was entitled to receive immediately prior to the Change in
Control; and

     (d) Executive shall continue to receive annually the number of paid vacation days and
holidays Executive was entitled to receive immediately prior to the Change in Control.

     5. Compensation Upon Termination of Employment. The following provisions set forth
the benefits that may become payable to Executive upon termination of employment with the Company
during the Period of Employment in accordance with, and subject to, the provisions of Section 6
below:

     (a) By not later than the fifth business day following the Date of Termination, the
Company shall pay Executive in a lump sum an amount equal to the sum of the following:

     (i) any base salary that is earned but unpaid as of the Date of Termination;

     (ii) a pro rata portion of the “target incentive amount” under the Annual
Performance Plan for the calendar year in which the Date of Termination occurs
(based on the number of calendar days in such calendar year completed through the
Date of Termination); and

     (iii) a pro rata portion of the “calculated market value” of the phantom
Performance Shares, if any, awarded to Executive under the Company’s Long-Term
Incentive Program (the “LTIP”) for each Plan Cycle under the LTIP that has not been
completed as of the Date of Termination, determined as follows:

     (A) The performance for each such Plan Cycle under the applicable LTIP
award agreement shall be determined based on (x) for any completed calendar
year of the Plan Cycle as of the Date of Termination, actual performance for
the calendar year, (y) for the calendar year in which the Date of
Termination occurs if at least one calendar quarter has been completed
during such calendar year, the greater of target

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performance for the calendar year or actual performance for the
completed calendar quarter(s) for the calendar year annualized for the year,
and (z) for any other calendar years of the Plan Cycle, target performance
for the calendar year.

     (B) The number of phantom Performance Shares for each such Plan Cycle
shall be adjusted in accordance with the formula set forth in the applicable
LTIP award agreement based on the performance for the Plan Cycle determined
under paragraph (A) above.

     (C) The pro rata portion of the “calculated market value” of the
number of phantom Performance Shares adjusted in accordance with paragraph
(B) above shall be based on the number of calendar days in the Plan Cycle
completed through the Date of Termination.

Section 5(c) below sets for the method for determining the “target incentive amount” under
the Annual Performance Plan and the “calculated market value” of phantom Performance Shares
under the LTIP. Any amounts payable under Sections 5(a)(ii) or (iii) above shall be offset
dollar-for-dollar by any pro rata payments otherwise provided for under the Annual
Performance Plan or the LTIP.

     (b) In lieu of any salary payments that Executive would have received if he had
continued in the employment of the Company during the Payment Period, the Company shall pay
to Executive in a lump sum, by not later than the fifth business day following the Date of
Termination, an amount equal to one-twelfth of Executive’s annualized base salary in effect
immediately prior to the Date of Termination, multiplied by the number of months in the
Payment Period.

     (c) By not later than the fifth day following the Date of Termination, the Company
shall pay Executive in a lump sum an amount equal to the sum of:

     (i) under the Annual Performance Plan (and in lieu of any further awards under
the Annual Performance Plan that Executive would have received if he had continued
in the employment of the Company during the Payment Period), the number of months in
the Payment Period multiplied by the greatest of one-twelfth of: (A) the amount most
recently paid to Executive for a full calendar year; (B) Executive’s “target
incentive amount” for the calendar year in which his Date of Termination occurs; or
(C) Executive’s “target incentive amount” in effect prior to the Change in Control
for the calendar year in which the Change in Control occurs; plus, if applicable,

     (ii) under the LTIP (and in lieu of any further grants under the LTIP that
Executive would have received if he had continued in the employment of the Company
during the Payment Period), sixteen (16) multiplied by the greatest of: (A) with
respect to the most recently completed Plan Cycle as of the Date of Termination,
one-twelfth of the “calculated market value” of the Performance Shares actually
awarded Executive (including the value of any Performance Shares Executive may have
elected to defer under the Performance Share Deferred Compensation Program); (B)
with respect to the most recently

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commenced Plan Cycle under the LTIP (if Executive is a participant in such Plan
Cycle) prior to Executive’s Date of Termination, one-twelfth of the “calculated
market value” of the phantom Performance Shares, if any, awarded to Executive; or
(C) with respect to the most recently commenced Plan Cycle prior to the date of the
occurrence of the Change in Control, one-twelfth of the “calculated market value” of
the phantom Performance Shares, if any, awarded to Executive.

     For purposes of this Section 5, Executive’s “target incentive amount” under the
Annual Performance Plan for a given calendar year (i.e., the calendar year in which
the Date of Termination occurs or the Change in Control occurs, as applicable) is
determined by multiplying (i) Executive’s annualized total gross base salary for the
calendar year by (ii) the incentive target percentage which is applicable to
Executive’s incentive category under the Annual Performance Plan for the calendar
year. For purposes of this Section 5, the “calculated market value” of each
Performance Share actually awarded upon completion of a Plan Cycle, Performance
Share deferred under the Performance Share Deferred Compensation Program or phantom
Performance Share granted under the LTIP shall be the mean of the high and low
prices of the Company’s common stock on the relevant date as reported on the New
York Stock Exchange Composite Transactions listing (or similar report), or, if no
sale was made on such date, then on the next preceding day on which a sale was made
multiplied by the number of shares involved in the calculation. The relevant date
for Section 5(a)(iii) and clauses 5(c)(ii)(B) and 5(c)(ii)(C) is the date upon which
the Compensation Committee (“Committee”) of the Board of Directors awarded the
phantom Performance Shares in question; for clause 5(c)(ii)(A) the relevant date is
the date on which the Committee made a determination of attainment of financial
objectives and awarded Performance Shares (including any Performance Shares
Executive may have elected to defer under the Performance Share Deferred
Compensation Program).

     Any payments received pursuant to Sections 5(c)(i) or (ii) above shall be in
addition to, and not in lieu of, any payments required to be made to Executive as
the result of the happening of an event that would constitute a change in control
pursuant to the provisions of the Annual Performance Plan or LTIP, as applicable.

     (d) By not later than the fifth day following the Date of Termination, the Company
shall pay Executive in a lump sum an amount equal to the sum of:

     (i) If Executive is under age 55, or over the age of 55 but not eligible to
retire, at the Date of Termination the present value of all health and welfare
benefits the Executive would have been entitled to had the Executive continued as an
employee of the Company during the Payment Period and been entitled to or
participated in the same health and welfare benefits during the Payment Period as
immediately prior to the Date of Termination plus an amount in cash equal to the
amount necessary to cause the amount of the aggregate after-tax lump sum payment the
Executive receives pursuant to this provision to be equal to the aggregate after-tax
value of the benefits which Executive would have received if Executive continued to
receive such benefits as an employee; or

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     (ii) If Executive is age 55 or over and eligible to retire on the Date of
Termination, the present value of the health and welfare benefits to which Executive
would have been entitled under the Company’s general retirement policies if
Executive retired on the Date of Termination with the Company paying that percentage
of the premium cost of the plans which it would have paid under the terms of the
plans in effect immediately prior to the Change of Control with respect to
individuals who retire at age 65, regardless of Executive’s actual age on the
Termination Date, provided such lump sum value would be at least equal to the lump
sum value of the benefits which would have been payable if Executive had been
eligible to retire and had retired immediately prior to the Change in Control.

     (e) By not later than the fifth day following the Date of Termination, the Company
shall pay Executive in a lump sum an amount equal to the sum of the present value of the
fringe benefit programs, perquisites (if any), and similar arrangements the Executive would
have been entitled to receive had the Executive continued in employment with the Company for
the Payment Period and been entitled to or participated in the same such benefits during the
Payment Period as immediately prior to the Date of Termination. In addition and
notwithstanding any provision of the Company’s 2002 Equity Compensation Plan (or any
comparable equity award plan of the Company) or any applicable award agreement thereunder to
the contrary, Executive may exercise any of Executive’s stock options that are vested as of
Executive’s Date of Termination at any time during the Payment Period (but not exceeding the
original expiration date of the options).

     (f) The Company shall, in addition to the benefits to which Executive is entitled under
the retirement plans or programs sponsored by the Company or its affiliates in which
Executive participates (including without limitation any Supplemental Executive Retirement
Plan in which Executive participates, if applicable), pay Executive in a lump sum in cash by
no later than the fifth day following the Date of Termination an amount equal to the
actuarial equivalent of the retirement pension to which Executive would have been entitled
under the terms of such retirement plans or programs had Executive accumulated additional
years of continuous service under such plans equal in length to Executive’s Payment Period.
The length of the Payment Period will be added to total years of continuous service for
determining vesting, the amount of benefit accrual, to the age which Executive will be
considered to be for the purposes of determining eligibility for normal or early retirement
calculations and the age used for determining the amount of any actuarial reduction. For the
purposes of calculating the additional benefit accrual under this paragraph, the amount of
compensation Executive will be deemed to have received during each month of Executive’s
Payment Period shall be equal to the sum of Executive’s annual base salary prorated on a
monthly basis as provided for under Section 4(a) immediately prior to the Date of
Termination (including salary increases), plus under the Company’s Annual Performance Plan
the greatest of one-twelfth of:

     (i) the amount most recently paid to Executive for a full calendar year,

     (ii) Executive’s “target incentive amount” for the calendar year in which
Executive’s Date of Termination occurs, or

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     (iii) Executive’s “target incentive amount” in effect prior to the Change in
Control for the calendar year in which the Change in Control occurs. Attached as
Exhibit 1 is an illustration, not intending to be exhaustive, of examples of how
inclusion of the Payment Period may affect the calculation of Executive’s retirement
benefit.

     (g) In no event shall any amount payable to Executive described in this Section 5 be
considered compensation or earnings under any pension, savings or other retirement plan of
the Company.

6. Termination.

     (a) Termination Without Compensation. If Executive’s employment is terminated for any
of the following reasons, Executive shall not be entitled by virtue of this Agreement to any
of the benefits provided in the foregoing Section 5:

     (i) If, prior to the commencement of the Period of Employment, Executive’s
employment with the Company is terminated at any time for any reason, including
without limitation due to (A) Executive’s death, (B) an Incapacity Discharge, (C) a
termination initiated by the Company with or without Cause or (D) resignation,
retirement or other termination initiated by Executive with or without Good Reason,
subject, however, to the provisions of Section 20 below.

     (ii) If Executive’s employment with the Company is terminated during the
Period of Employment with Cause.

     (iii) If Executive resigns, retires or otherwise voluntarily terminates
employment with the Company during the Period of Employment without Good Reason.

     (b) Termination with Compensation. If Executive’s employment is terminated for any of
the following reasons, Executive shall be entitled by virtue of this Agreement to the
benefits provided in the foregoing Section 5 as follows:

     (i) If, during the Period of Employment, the Company discharges Executive
other than for Cause, Executive shall receive all of the benefits and payments
provided in Section 5.

     (ii) Executive may terminate his employment with the Company at any time
during the Period of Employment for Good Reason (“Good Reason Termination”) and
shall receive all of the benefits and payments provided in Section 5.

     (iii) If, during the Period of Employment, Executive either (A) retires
from employment with the Company or (B) if the Company discharges Executive due to
an Incapacity Discharge, in either case while Executive has cause to terminate his
employment as a Good Reason Termination (whether or not Executive has provided
Notice of Termination
to the Company pursuant to

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Section 7), Executive shall receive all of the benefits and payments
provided in Section 5.

     (iv) If Executive dies while employed by the Company during the Period of
Employment while having cause to terminate his employment as a Good Reason
Termination (whether or not Executive has provided Notice of Termination to the
Company pursuant to Section 7), Executive’s beneficiary or beneficiaries named on
Exhibit 2 to this Agreement (or Executive’s estate if he has not named a
beneficiary) shall be entitled to receive those payments provided under Sections
5(a), 5(b) and 5(c) of this Agreement in addition to any benefits that such
beneficiaries would be entitled under any other plan, program or policy of the
Company as a result of Executive’s employment with the Company.

     (v) Executive may become eligible for the benefits and payments under Section
5 for termination of employment prior to a Change in Control in accordance with, and
subject to, the provisions of Section 20 below.

     7. Notice of Termination. Any termination of Executive’s employment by the Company or
any termination by Executive as a Good Reason Termination shall be communicated by written notice
to the other party hereto. For purposes of this Agreement, such notice shall be referred to as a
“Notice of Termination.” Such notice shall, to the extent applicable, set forth the specific reason
for termination, and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive’s employment under the provision so indicated.

     8. Date of Termination. “Date of Termination” shall mean:

     (a) If Executive terminates Executive’s employment as a Good Reason Termination, the
date specified in the Notice of Termination, but in no event more than sixty (60) days after
Notice of Termination is given.

     (b) If Executive’s employment is terminated with Cause, the date on which a Notice of
Termination is given, except that the Date of Termination shall not be any date prior to the
date on which the Cure Period expires without the correction of Executive’s performance (if
applicable).

     (c) If Executive’s employment pursuant to this Agreement is terminated following
absence due to physical incapacity as an Incapacity Discharge, then the Date of Termination
shall be thirty (30) days after Notice of Termination is given (provided that Executive
shall not have returned to the performance of Executive’s duties on a full-time basis during
such thirty (30) day period).

     (d) A termination of employment by either the Company or by Executive shall not affect
any rights Executive or Executive’s surviving spouse or beneficiaries may have pursuant to
any other agreement or plan of the Company providing benefits to Executive, except as
provided in such agreement or plan.

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     9. Certain Additional Payments.

     (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall
be determined that any payment or distribution by the Company to Executive or for
Executive’s benefit (whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a “Payment”) would be subject to the excise tax
imposed by Section 4999 (or any successor provisions) of the Internal Revenue Code of 1986,
as amended (the “Code”), or any interest or penalty is incurred by Executive with respect to
such excise tax (such excise tax, together with any such interest and penalties, is
hereinafter collectively referred to as the “Excise Tax”), then Executive shall be entitled
to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment
by Executive of all taxes (including any interest or penalties imposed with respect to such
taxes), including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed on the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

     (b) Subject to the provisions of Section 9(c), all determinations required to be made
under this Section 9, including whether and when such a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Ernst & Young (or their successors) (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and to Executive
within fifteen (15) business days of the receipt of notice from Executive that there has
been a Payment, or such earlier time as is requested by the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, Executive shall appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting firm shall
then be referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment as determined
pursuant to this Section 9, shall be paid by the Company to Executive within five (5) days
of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines
that no Excise Tax is payable by Executive, it shall furnish Executive with a written
opinion that failure to report the Excise Tax on Executive’s applicable federal income tax
return would not result in the imposition of a negligence or similar penalty. Any
determination by the Accounting Firm shall be binding upon the Company and Executive. As a
result of the uncertainty of the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
(“Underpayment”). In the event that the Company exhausts its remedies pursuant to Section
9(c) and Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall be promptly paid by the Company to Executive or for Executive’s
benefit.

     (c) Executive shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up
Payment. Such notification shall be given as soon as practicable but no later than ten (10)
business days after Executive or his representative is informed in writing of

11

 

such claim and shall apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. Executive shall not pay such claim prior to the
expiration of the thirty (30) day period following the date on which Executive gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company notifies Executive in writing prior to
the expiration of such period that it desires to contest such claim, Executive shall:

     (i) give the Company any information reasonably requested by the Company
relating to such claim,

     (ii) take such action in connection with contesting such claim as the Company
shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

     (iii) cooperate with the Company in good faith in order effectively to contest
such claim, and

     (iv) permit the Company to participate in any proceedings relating to such
claim; however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold Executive harmless, on an after-tax basis, for
any Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this Section 9(c), the Company
shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of any such claim and
may, at its sole option, either direct Executive to pay the tax claimed and sue for
a refund or contest the claim in any permissible manner, and Executive agree to
prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company
shall determine; provided, however, that if the Company directs Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to Executive, on an interest-free basis and shall indemnify and hold
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to
payment of taxes for Executive’s taxable year with respect to which such contested
amount is claimed to be due is limited solely to such contested amount. Furthermore,
the Company’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

     (d) If, after the receipt by Executive of an amount advanced by the Company pursuant to
Section 9(c), Executive become entitled to receive any refund with respect to

12

 

such claim, Executive shall (subject to the Company’s complying with the requirements
of Section 9(c)) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the receipt by
Executive of an amount advanced by the Company pursuant to Section 9(c), a determination is
made that Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify Executive in writing of its intent to contest such denial of refund
prior to the expiration of thirty (30) days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

     (e) Notwithstanding the provisions of this Section 9 to the contrary, in no event shall
any payments made to Executive under this Section 9 be made later than the end of the
calendar year following the calendar year in which Executive remits the Excise Tax.

10. No Obligation to Mitigate Damages, No Effect on Other Contractual Rights. Executive
shall not be required to refund the amount of any payment or employee benefit provided for or
otherwise mitigate damages under this Agreement by seeking or accepting other employment or
otherwise, nor shall the amount of any payment required to be made under this Agreement be reduced
by any compensation earned by Executive as the result of any employment by another employer after
the date of termination of Executive’s employment with the Company, or otherwise. Upon receipt of
written notice from Executive that Executive has been reemployed by another company or entity on a
full-time basis, benefits, fringe benefits and perquisites otherwise receivable by Executive
pursuant to Sections 5(d) or 5(e) related to life, health, disability and accident insurance plans
and programs and other similar benefits, company cars, financial planning, country club
memberships, and the like (but not incentive compensation, LTIP, pension plans or other similar
plans and programs) shall be reduced to the extent comparable benefits are made available to
Executive at his new employment and any such benefits actually received by Executive shall be
reported to the Company by Executive.

     The provisions of the Agreement, and any payment or benefit provided for hereunder shall not
reduce any amount otherwise payable, or in any way diminish Executive’s existing rights, or rights
which would occur solely as a result of the passage of time, under any other agreement, contract,
plan or arrangement with the Company.

     11. Successors and Binding Agreement.

     (a) The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of
the Company, by agreement in form and substance satisfactory to Executive, to assume and
agree to perform this Agreement.

     (b) This Agreement shall be binding upon the Company and any successor of or to the
Company, including, without limitation, any person acquiring directly or indirectly all or
substantially all of the assets of the Company whether by merger, consolidation, sale or
otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of
this Agreement), but shall not otherwise be assignable by the Company.

13

 

     (c) This Agreement shall inure to the benefit of and be enforceable by Executive and
Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Executive should die while any amounts would still
be payable to Executive pursuant to Sections 5 and 6 hereunder if Executive had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to Executive’s devisee, legatee, or other designee or, if there
be no such designee, to Executive’s estate.

     12. Notices. For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this Agreement, provided that
all notices to the Company shall be directed to the attention of the Chief Executive Officer of the
Company with a copy to the Secretary of the Company, or to such other address as either party may
have furnished to the other in writing, except that notices of change of address shall be effective
only upon receipt.

     13. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of North Carolina, without giving effect to
the principles of conflict of laws of such State.

     14. Miscellaneous. No provisions of this Agreement may be modified, waived or
discharged, and this Agreement may not be terminated before the end of the Term, unless such
waiver, modification, discharge or termination is agreed to in a writing signed by Executive and
the Company. No waiver by either party hereto at any time of any breach by the other party hereto
or compliance with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof, have been made by either party which is not set
forth expressly in this Agreement.

     15. Validity. The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

     16. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
agreement.

     17. Withholding of Taxes. The Company may withhold from any amounts payable under
this Agreement all federal, state, city or other taxes as shall be required pursuant to any law or
government regulation or ruling.

     18. Nonassignability. This Agreement is personal in nature and neither of the parties
hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or
obligations hereunder, except as provided in Section 11 above. Without limiting the foregoing,
Executive’s right to receive payments hereunder shall not be assignable or transferable, whether by
pledge, creation of a security interest or otherwise, other than by a transfer by Executive’s will

14

 

or by the laws of descent and distribution and in the event of any attempted assignment or
transfer contrary to this Section 18 the Company shall have no liability to pay any amounts so
attempted to be assigned or transferred.

     19. Legal Fees and Expenses. If a Change in Control shall have occurred, thereafter
the Company shall pay and be solely responsible for any and all attorneys’ and related fees and
expenses incurred by Executive to successfully (in whole or in part and whether by modification of
the Company’s position, agreement, compromise, settlement, or administrative or judicial
determination) enforce this Agreement or any provision hereof or as a result of the Company or any
Shareholder of the Company contesting the validity or enforceability of this Agreement or any
provision hereof. To secure the foregoing obligation, the Company shall, within 90 days after being
requested by Executive to do so, enter into a contract with an insurance company, open a letter of
credit or establish an escrow in a form satisfactory to Executive. Notwithstanding the provisions
of this Section 19 to the contrary, in no event shall any payments made to Executive under this
Section 19 be made for expenses incurred by Executive following the end of the second calendar year
following the calendar year in which Executive’s Date of Termination occurs, provided that the
period during which reimbursement for such expenses may be made may extend to the end of the third
calendar year in which Executive’s Date of Termination occurs.

     20. Employment Rights. Nothing expressed or implied in this Agreement shall create
any right or duty on Executive’s part or on the part of the Company to have Executive remain in the
employment of the Company prior to the commencement of the Period of Employment; provided, however,
that any termination or purported termination of Executive’s employment by the Company without
Cause, or termination of Executive’s employment by Executive under circumstances that would
constitute Good Reason had a Change in Control occurred, in either case following the commencement
of any discussion with a third party, or the announcement by a third party of the commencement of,
or the intention to commence a tender offer, or other intention to acquire all or a portion of the
equity securities of the Company that ultimately results in a Change in Control shall be deemed to
be a termination of Executive’s employment after a Change in Control for purposes of (i) this
Agreement and both the Period of Employment and the Payment Period shall be deemed to have begun on
the day prior to such termination and (ii) the Company’s Equity Compensation Plan as if the Change
in Control had occurred on the day prior to such termination (resulting in the full vesting and
extended exercisability of the Executive’s outstanding stock options under, and in accordance with,
the provisions of the Equity Compensation Plan).

     21. Right of Setoff. There shall be no right of setoff or counterclaim against, or
delay in, any payment by the Company to Executive or Executive’s designated beneficiary or
beneficiaries provided for in this Agreement in respect of any claim against Executive or any debt
or obligation owed by Executive, whether arising hereunder or otherwise.

     22. Rights to Other Benefits. The existence of the Agreement and Executive’s rights
hereunder shall be in addition to, and not in lieu of, Executive’s rights under any other of the
Company’s compensation and benefit plans and programs, and under any other contract or agreement
between Executive and the Company.

     23. Prior Agreements. This Agreement supersedes and replaces any and all prior
agreements and understandings between the Company and the Executive with respect to the

15

 

subject matter hereof. Any such prior agreements and understandings are no longer in force or
effect.

     24. Compliance with Section 409A of the Internal Revenue Code. Any payments under
this Agreement that are deemed to be deferred compensation subject to the requirements of Section
409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended, are intended to comply with
the requirements of Section 409A. To this end and notwithstanding any other provision of this
Agreement to the contrary, if at the time of Executive’s termination of employment with the
Company, (i) the Company’s securities are publicly traded on an established securities market; (ii)
Executive is a “specified employee” (as defined in Section 409A); and (iii) the deferral of the
commencement of any payments or benefits otherwise payable pursuant to this Agreement as a result
of such termination of employment is necessary in order to prevent any accelerated or additional
tax under Section 409A, then the Company will defer the commencement of such payments (without any
reduction in amount ultimately paid or provided to Executive) that are not paid within the
short-term deferral rule under Section 409A (and any regulations thereunder) or within the
“involuntary separation” exemption of Treasury Regulation § 1.409A-1(b)(9)(iii). Such deferral
shall last until the date that is six (6) months following Executive’s termination of employment
with the Company (or the earliest date as is permitted under Section 409A). Any amounts the
payment of which are so deferred shall be paid in a lump sum payment within ten (10) days after the
end of such deferral period. If Executive dies during the deferral period prior to the payment of
any deferred amount, then the unpaid deferred amount shall be paid to the personal representative
of Executive’s estate within sixty (60) days after the date of Executive’s death. For purposes of
Section 409A, the right to a series of installment payments under this Agreement shall be treated
as a right to a series of separate payments.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 
	 	ENPRO INDUSTRIES, INC.

 	 
	 	By:  	/s/ Stephen E. Macadam
 	 
	 	 	Name:  	Stephen E. Macadam 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 
	 	 	/s/ Robert P. McKinney
 	 
	 	 	Robert P. McKinney 	 
	 	 	 
	 

16

 

EXHIBIT 1

     A. If as of Executive’s Date of Termination Executive’s years of continuous service under the
applicable retirement plans for purposes of determining eligibility for normal or early retirement
plus the length of Executive’s Payment Period is at least 5, then

     1. If as of Executive’s Date of Termination Executive’s age plus the length of
Executive’s Payment Period is at least 65, Executive’s retirement benefit under Section 5(f)
will be calculated as a “normal retirement” benefit to which Executive would have been
entitled under the terms of the retirement plan in which Executive participates had
Executive accumulated benefit service under the retirement plan that included the Payment
Period; and

     2. If as of Executive’s Date of Termination Executive’s age plus the length of
Executive’s Payment Period is at least 55 but less than 65, Executive’s retirement benefit
under Section 5(f) will be calculated as an “early retirement” benefit to which Executive
would have been entitled under the terms of the retirement plan in which Executive
participates had Executive accumulated benefit service under the retirement plan that
included the Payment Period. The actuarial reduction used shall be the actuarial reduction
factor for early retirement, calculated to Executive’s actual age plus the length of
Executive’s Payment Period, at Executive’s Date of Termination.

     B. If as of Executive’s Date of Termination the sum of Executive’s years of continuous service
under the applicable retirement plans for purposes of determining eligibility for normal or early
retirement plus the length of Executive’s Payment Period is less than 5, or Executive’s age plus
the length of Executive’s Payment Period is less than 55, Executive’s retirement benefit under
Section 5(f) will be calculated as a “deferred vested pension” to which Executive would have been
entitled under the terms of the retirement plans in which Executive participates had Executive
accumulated benefit service under the retirement plan that included the Payment Period. The
actuarial reduction used shall be the actuarial reduction factor for a deferred vested pension,
calculated to Executive’s actual age at Executive’s Date of Termination plus the length of
Executive’s Payment Period.

     C. For purposes of Section 5(f), “actuarial equivalent” shall be determined using the same
methods and assumptions as those utilized under the Company’s retirement plans and programs
immediately prior to the Change in Control.

 

 

EXHIBIT 2

BENEFICIARY DESIGNATION

     I hereby designate the following person(s) as a beneficiary for the purposes of Section
6(b)(iv) to the extent of the percentage interest listed next to their name:

	 	 	 

	 
	 	 
	NAME
	 	PERCENTAGE INTEREST
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	TOTAL (CANNOT EXCEED 100%)exv10w1

Exhibit 10.1

	 	 	 

	

	 	

Collective Bargaining Agreement

2/28/2010 – 12/31/2012

 

Collective Bargaining Agreement

01/01/2010 – 12/31/2012

COLLECTIVE BARGAINING AGREEMENT

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I
	 	 	1	 
	PURPOSE, SCOPE, DURATION, AND GENERAL PROVISIONS
	 	 	1	 
	1.1 Parties to the Agreement, Purpose and Scope
	 	 	1	 
	1.2 Term of Agreement
	 	 	2	 
	1.3 Scope of Agreement
	 	 	2	 
	1.4 Amendment of Agreement
	 	 	2	 
	1.5 Negotiations upon Expiration
	 	 	2	 
	1.6 Final Agreement
	 	 	2	 
	1.7 Severability and Savings
	 	 	2	 
	1.8 Subcontracting
	 	 	3	 
	1.9 Recognition
	 	 	3	 
	1.10 Successor Clause
	 	 	4	 
	1.11 Plurality
	 	 	4	 
	1.12 Notices
	 	 	4	 
	1.13 Non-Discrimination
	 	 	5	 
	1.15 New Technology
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II
	 	 	6	 
	MANAGEMENT RIGHTS
	 	 	6	 
	2.1 Management Rights
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III
	 	 	7	 
	UNION RIGHTS
	 	 	7	 
	3.1 Union Security
	 	 	7	 
	3.2 Dues Deduction
	 	 	7	 
	3.3 Political Action Committee Fund
	 	 	7	 
	3.4 Indemnification
	 	 	7	 
	3.5 Strikes, Lockouts & Picket Lines
	 	 	7	 
	3.6 Union Business Representative
	 	 	8	 
	3.7 Bulletin Boards and E-Mail
	 	 	8	 
	3.8 Chief Shop Steward(s)
	 	 	8	 
	3.9 Shop Stewards
	 	 	8	 
	3.10 Union Duty
	 	 	9	 
	3.11 Union Right to Discipline Members
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	10	 
	GRIEVANCE AND ARBITRATION PROCESS
	 	 	10	 
	4.1 Purpose
	 	 	10	 
	4.2 Complaints
	 	 	10	 
	4.3 Definitions and Presentation of Grievances
	 	 	10	 
	4.4 Arbitration
	 	 	11	 
	4.5 Counseling and Discipline
	 	 	12	 
	 
	 	 	 	 
	ARTICLE V
	 	 	14	 
	JOB AWARDS AND EMPLOYEE CLASSIFICATION
	 	 	14	 
	5.1 Work Calls
	 	 	14	 

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Collective Bargaining Agreement

01/01/2010 — 12/31/2012

	 	 	 	 	 

	5.2 Job Notice
	 	 	15	 
	5.3 Job Award/Bid Committee
	 	 	15	 
	5.4 Lateral Transfers
	 	 	16	 
	5.5 Training Positions
	 	 	16	 
	5.6 Job Classifications
	 	 	17	 
	5.7 Classification Committee
	 	 	18	 
	5.8 Designation of Employees
	 	 	18	 
	5.9 Temporary Full Time Employees Health and Welfare
	 	 	19	 
	5.10 Job-Share
	 	 	19	 
	5.11 IBEW NECA Temp Employees
	 	 	19	 
	5.12 NECA Apprentice
	 	 	20	 
	5.13 NECA Temporary Employees in Remote Locations
	 	 	21	 
	5.14 Summer Student Employees
	 	 	21	 
	5.15 No Out-Of-State Job Transfer
	 	 	22	 
	5.16 Transfer of Work
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	23	 
	GENERAL WORK RULES
	 	 	23	 
	6.1 Seniority
	 	 	23	 
	6.2 Probationary Employees
	 	 	23	 
	6.3 Familiarization Period after Promotion or Lateral Move
	 	 	23	 
	6.4 Annual Performance Evaluation Program
	 	 	24	 
	6.5 Family Members
	 	 	24	 
	6.6 Sales and Service Associate Incented Positions
	 	 	25	 
	6.7 System Engineers
	 	 	27	 
	6.8 Work Out of Classification
	 	 	30	 
	6.9 No Layoff Clause
	 	 	31	 
	6.10 Layoff Procedure
	 	 	32	 
	6.11 Exit Incentive Program
	 	 	33	 
	6.12 Moving Expenses
	 	 	33	 
	6.13 Use of Company’s Time, Equipment or Material
	 	 	35	 
	6.14 Appropriate Dress and Language Code
	 	 	35	 
	6.15 Compliance with Company Work Rules
	 	 	35	 
	6.16 Statutory Permits, Certificates and Licenses
	 	 	35	 
	6.17 Drug and Alcohol Testing and Reporting
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	37	 
	FOREMAN
	 	 	37	 
	7.1 Foreman
	 	 	37	 
	7.2 Line Foreman
	 	 	39	 
	7.3 Project Foreman
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	40	 
	SAFETY
	 	 	40	 
	8.1 Safety
	 	 	40	 
	8.2 Safety Standards
	 	 	40	 
	8.3 Safety Devices
	 	 	40	 
	8.4 Manhole Safety
	 	 	40	 

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Collective Bargaining Agreement

01/01/2010 — 12/31/2012

	 	 	 	 	 

	8.5 Safety/Training Meetings
	 	 	40	 
	8.6 Safety Committee
	 	 	41	 
	8.7 Safety Responsibilities
	 	 	41	 
	8.8 Climbing Safety During Long Periods of Extreme Cold
	 	 	41	 
	8.9 Employee Safety Performance Targets and Measures
	 	 	41	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	44	 
	WORK WEEK AND SCHEDULES
	 	 	44	 
	9.1 Workweek
	 	 	44	 
	9.2 Workday
	 	 	44	 
	9.3 Shifts and Schedules
	 	 	44	 
	9.4 Alternate Workweek and Workdays
	 	 	45	 
	9.5 Five (5) day – Ten (10) hour Workweek (5-10s)
	 	 	47	 
	9.6 Shift Differential
	 	 	47	 
	9.7 Flex-Time
	 	 	47	 
	9.8 Relief
	 	 	48	 
	9.9 Eight-Hour Break
	 	 	48	 
	9.10 Rest Periods
	 	 	48	 
	9.11 Time Changes
	 	 	48	 
	9.12 Meal Allowances
	 	 	48	 
	 
	 	 	 	 
	ARTICLE X
	 	 	50	 
	WAGE RATES AND PREMIUM PAY
	 	 	50	 
	10.1 Wage Rates
	 	 	50	 
	10.2 Overtime (OT) Pay
	 	 	50	 
	10.3 Call-Out Pay
	 	 	50	 
	10.4 Pyramiding Prohibited
	 	 	50	 
	10.5 Standby Time
	 	 	50	 
	10.6 High Time
	 	 	51	 
	10.7 Distribution of OT
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	53	 
	TRAVEL
	 	 	53	 
	11.1 Meals
	 	 	53	 
	11.2 Travel for Training
	 	 	53	 
	11.3 Travel to Perform Work
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XII
	 	 	56	 
	HOLIDAYS AND TIME OFF
	 	 	56	 
	12.1 Company Holidays
	 	 	56	 
	12.2 Flexible Time Off (FTO) Accrual Rates
	 	 	58	 
	12.3 FTO Accrual Limits
	 	 	58	 
	12.4 Scheduling of FTO
	 	 	59	 
	12.5 Incidental Time Off Requests
	 	 	60	 
	12.6 Unscheduled Absence
	 	 	60	 
	12.7 FMLA Leaves of Absence
	 	 	61	 
	12.8 Bereavement Leave
	 	 	61	 
	12.9 Jury Duty
	 	 	61	 

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Collective Bargaining Agreement

01/01/2010 — 12/31/2012

	 	 	 	 	 

	12.10 Military Leave
	 	 	62	 
	12.11 Cash-in of FTO
	 	 	62	 
	12.12 Supplemental Workers Compensation
	 	 	62	 
	12.13 Supplemental Sick Pay (SSP)
	 	 	63	 
	12.14 Return to Work
	 	 	63	 
	 
	 	 	 	 
	ARTICLE XIII
	 	 	65	 
	EMPLOYEE BENEFITS
	 	 	65	 
	13.1 Health & Welfare Plan
	 	 	65	 
	13.2 Survivor Income Benefits
	 	 	66	 
	13.3 Retirement
	 	 	66	 
	13.4 Apprenticeship Training
	 	 	66	 
	13.5 Alaska Electrical Money Purchase Pension Plan
	 	 	66	 
	13.6 401(k) Savings Plan
	 	 	66	 
	13.7 Movement of Monies
	 	 	67	 
	13.8 Long Term Disability Income Insurance Plan
	 	 	67	 
	13.9 Communication Services
	 	 	67	 
	13.11 IBEW Hardship and Benevolent Fund (IHBF)
	 	 	68	 
	 
	 	 	 	 
	ARTICLE XIV
	 	 	70	 
	PAYDAYS
	 	 	70	 
	14.1 Paydays
	 	 	70	 
	14.2 Wage Increase
	 	 	70	 
	14.3 Pay upon Separation
	 	 	70	 
	 
	 	 	 	 
	ARTICLE XV
	 	 	71	 
	MISCELLANEOUS
	 	 	71	 
	15.1 Tools
	 	 	71	 
	15.2 Lockers
	 	 	71	 
	15.3 Personal Vehicles
	 	 	71	 
	APPENDIX I – WAGE STRUCTURE
	 	 	72	 
	APPENDIX II – WAGE INCREASES
	 	 	77	 
	APPENDIX III – SUPPLEMENTAL SICK PAY
	 	 	78	 
	APPENDIX IV – DEFINITIONS
	 	 	79	 
	 
	 	 	 	 
	LETTER OF UNDERSTANDING – SEVERANCE FREEZE
	 	 	86	 
	LETTER OF UNDERSTANDING – ACHIEVERS OF EXCELLENCE
	 	 	90	 
	LETTER OF UNDERSTANDING – ENTERPRISE LINE OF BUSINESS
	 	 	91	 
	4. Cooperative Sharing Arrangement
	 	 	92	 
	5. Guidelines for the Multi-Location I-NMC
	 	 	92	 
	6. Training and Development of ACS Staff
	 	 	94	 
	7. Subcontracting
	 	 	95	 
	8. Implementation, Interpretation and Dispute Resolution
	 	 	95	 
	 
	 	 	 	 
	ALPHABETICAL INDEX
	 	 	97	 

- v -

 

ARTICLE I

PURPOSE, SCOPE, DURATION, AND GENERAL PROVISIONS

1.1 Parties to the Agreement, Purpose and Scope 

	A.	 	Parties. The parties (the “Parties”) to this Collective Bargaining Agreement (the
“Agreement”) are Alaska Communications Systems Holdings, Inc. (the “Company”) and
International Brotherhood of Electrical Workers, Local Union No. 1547 (the “Union”).
	 
	B.	 	The Company. The Company, through its operating subsidiaries, is a telecommunications
service provider subject to the separate but concurrent jurisdiction of both the Federal
government and the State of Alaska. The Company is publicly owned, and its stock is traded
and valued based on its financial performance to date and on expectations for future
performance. To be successful as a telecommunications provider and a stable employer, the
Company must vigorously compete in the Alaskan market, fulfill its regulatory service
obligations and maintain its financial strength.
	 
	C.	 	The Union. Local Union No. 1547 is the Alaskan affiliate of the International Brotherhood of
Electrical Workers. Its mission is to ensure fairness and dignity in the workplace, a fair
day’s pay for a fair day’s work, and the opportunity to continue to improve the Alaskan
worker’s standard of living. The Union is the certified bargaining agent for all of the
Company’s employees within the job classifications included in the designated bargaining unit
(the “Bargaining Unit”).
	 
	D.	 	Recognition of Roles and Responsibilities. The Company recognizes and honors the Union’s
rights and responsibilities as the exclusive bargaining agent for the employees it represents.
The Union recognizes and honors the rights and responsibilities of management to direct the
affairs of the Company. The Union further recognizes the importance of supporting the
Company’s efforts to meet the challenges of doing business in a highly competitive market.
The Company likewise recognizes the critical correlation between its success and a productive
working relationship with the Union and the Bargaining Unit.
	 
	E.	 	Strategic Alignment. The Parties understand the Company’s financial strength and,
consequently, its ability to provide employment to Bargaining Unit employees under terms and
conditions that will fulfill the Union’s mission, require that it succeed in the competitive
market. The parties further understand that the Company must invest in the represented
workforce, and that the cultivation of employee skills, productivity and dedication are
fundamental to the Company’s success.
	 
	F.	 	Purpose and Scope of the Agreement. The Agreement sets forth wages, hours, and other terms
and conditions of employment for all of the Company’s employees in the Bargaining Unit. The
Agreement also establishes a cooperative relationship between the Parties as stakeholders with
a strong common interest in seeing both the Company and represented workforce prosper and
thrive.

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1.2 Term of Agreement 

This Agreement shall become effective February 28, 2010, and shall remain in effect through
December 31, 2012.

1.3 Scope of Agreement

This Agreement is applicable, within the State of Alaska, to all work within the scope of those job
descriptions listed in the wage schedule in Appendix 1 and will be applicable to other positions or
job classifications as agreed between the Union and Company.

1.4 Amendment of Agreement

This Agreement may be amended at any time by mutual consent of the parties. Such amendment shall
be reduced to writing and state the effective date of the amendment.

The parties agree they will meet and confer during the term of the Agreement, on an expedited basis
if requested by either party, to address pressing matters of concern involving the interpretation,
application or modification of any section of this Agreement. Either party also may request the
other to waive compliance with any specific provision of this Agreement. If agreement cannot be
reached, the parties will enlist the assistance of an FMCS mediator.

1.5 Negotiations upon Expiration

Either party desiring to amend or modify this Agreement must notify the other in writing no later
than one hundred and twenty (120) days prior to the renewal date of this Agreement. Negotiations
must commence no later than ninety (90) days before the expiration date. After negotiations have
commenced, this Agreement will remain in full force and effect so long as the parties continue to
bargain together in good faith. Failure by both parties to give timely and proper written notice in
accordance with this procedure shall result in the continuation of the Agreement for the succeeding
twelve (12) month period. Posting of written notice of intent through the U.S. Mail via certified
delivery within the above stipulated time frame shall be deemed to be timely, proper notice.

1.6 Final Agreement

This Agreement is intended to replace and supersede all previous Agreements, Letters of
Understanding, informal agreements and negotiations. It is understood that this Agreement was
reached to the mutual satisfaction of both parties and any attempt to circumvent the terms and
conditions set forth shall constitute a breach of this Agreement.

1.7 Severability and Savings

In the event that any of the provisions of this Agreement shall be declared by a court of competent
jurisdiction to be invalid for any cause, the invalid provision shall be deemed to be null and void
and the remainder of this Agreement shall continue in full force and effect. Within thirty (30)
calendar days after a provision has been declared invalid, the parties will commence negotiations
with regard to such invalidated provision.

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1.8 Subcontracting

It is understood that the right of contracting or subcontracting is vested in the Company, subject
to the following conditions. For the purposes of this Section, both “hard dollar” contracts for
work performed under subcontractor supervision and the use of contracted labor working under
Company supervision are referred to as “subcontracting.”

	A.	 	The right to subcontract shall not be used for the purpose or intention of undermining the
Union, to discriminate against any of its members, or to circumvent this Agreement. Further,
the Company’s right to subcontract shall not be exercised if during the term of the
subcontract the consequence will be the layoff or part timing of regular employees in that
geographic location performing work covered under the subcontract. However, subcontracting
may be used for project work or to staff up for seasonal peaks as an alternative to
temporarily increasing employee staffing.
	 
	 	 	In order to preserve work traditionally performed by employees represented by IBEW Local
Union 1547, the Company shall require that subcontractors for communications maintenance,
new construction or electrical work normally performed by employees represented by the IBEW,
have a current collective bargaining agreement or letter of assent with the IBEW Local Union
1547. However, the parties recognize that a signatory subcontractor with the requisite
skills may not always be available to perform the work. On such rare occasions, after every
reasonable effort has been made without success to secure a signatory subcontractor,
including reasonable advance notice to the IBEW, the employer may subcontract the work in
question to any available subcontractor.
	 
	B.	 	Notwithstanding Section 1.8 (A), ACS may subcontract with non-union contractors for work in
bush village locations for projects under $40,000, as long as such subcontracting is not
inconsistent with Section 1.8 (A).
	 
	C.	 	When contract personnel (e.g., day laborers) and regular employees are performing comparable
bargaining unit work under Company supervision at the same location, the Company will make a
reasonable effort to offer the regular employees the opportunity to work the same number of
overtime hours as such contract personnel. If necessary to accomplish this, the Company may
equalize overtime within the relevant group of employees over a period of time, but not less
frequently than on a quarterly basis.

1.9 Recognition

The Company recognizes the Union as the exclusive bargaining agent for the purpose of collective
bargaining with respect to wages, hours and other terms and conditions of employment for all
employees in the bargaining unit consisting of the job classifications in this Agreement.

	A.	 	If the Company purchases or acquires the assets of an entity signatory to the IBEW, employees
performing bargaining unit work for such entity shall be integrated by the parties into
appropriate classifications covered by this Agreement. ACS employees who are currently
unrepresented will not be affected by the integration of represented employees of such newly
acquired employers.

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	B.	 	If the Company purchases or acquired the assets of an entity not signatory to the IBEW, or
ACS creates an Alaskan subsidiary, or obtains controlling interest in an Alaska-based joint
venture or other business, ACS agrees to extend voluntary recognition to the IBEW upon an
appropriate showing of IBEW’s majority support among any group of employees employed by such
entities eligible for representation. Thereafter, such employees shall be integrated by the
parties into appropriate classifications covered by this Agreement. Voluntary recognition
also will be granted if IBEW demonstrates majority support among any employees of ACS eligible
for representation who are not currently in the bargaining unit.

	C.	 	The term “eligible for representation” means employees lawfully entitled to union
representation (1) who are presently unrepresented; or (2) who are represented by a union ACS
is not contractually obligated to recognize.

1.10 Successor Clause

The Company and Union hereby agree that, in relation to all labor contracts between predecessor
employers, including Century Telephone Enterprises, Inc., and Anchorage Telephone Utility, and
Union, the Company is a successor employer. The Company agrees to be bound, to the full extent
that predecessor employers are or would have been bound, to all the terms and conditions of this
Agreement.

The Company and Union agree that the terms and conditions of this Agreement shall be binding on any
and all successors and assigns of the Company, whether by sale, transfer, merger, acquisition,
consolidation or otherwise. The Company shall require any purchaser, transferee, lessee, assignee,
receiver or trustee of the operation covered by this Agreement to expressly accept, in writing, all
terms and conditions of such Agreement. A copy of such written acceptance shall be provided to the
Union at least thirty (30) days prior to the effective date of any sale, transfer, lease
assignment, receivership, or bankruptcy proceeding.

1.11 Plurality

Unless the context of this Agreement clearly requires a different interpretation or construction,
all references to the singular shall also include the plural and vice versa.

1.12 Notices

Notices required under the provisions of this Agreement, unless otherwise specified, shall be
delivered by the Company to the Business Manager, Local Union 1547, IBEW, 3333 Denali Street,
Anchorage, Alaska 99503 for service upon the Union; and to the Vice President, Human Resources, 600
Telephone Ave., MS 15, Anchorage, Alaska 99503, for service upon the Company, and the date of
receipt of such notices shall be the controlling date for the purposes hereunder. Each party shall
promptly inform the other of any change in the addresses set forth in this Section.

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1.13 Non-Discrimination

The Company and the Union agree to comply with all State and Federal laws, rules or regulations
prohibiting discrimination. It is further agreed that this non-discrimination provision relates to
hiring, placement, upgrading, rates of pay or other forms of compensation, transfer, demotion,
recruitment, opportunity for training, layoff, termination and all other conditions of employment.

1.14 Vendor Agents 

Many opportunities exist to add sales channels for ACS including authorizing retail vendor agents

to sell ACS products and services. The Union recognizes that such sales will increase work

opportunities across the Company. The Company recognizes that consumer customer sales and service

work is represented by the Union and covered by the terms of this Agreement.

Vendor Agents are defined as established retail entities that operate retail sales operations with
their own employees and contract to sell branded products and services on behalf of the product and
service owners. Examples of retail vendor agents in Alaska include but are not limited to Radio
Shack, Access Wireless, and Fred Meyer. Vendor agents do not include independent contractors
staffing ACS owned or leased facilities and working directly for ACS and such arrangements are not
provided for with this Agreement.

In the best interest of the Company and its employees the parties agree to allow the use of vendor
agents with the following conditions:

	 	•	 	Vendor agent relationships are intended solely to access potential customers and to
supplement sales efforts of bargaining unit employees.
	 
	 	•	 	Company bargaining unit employees will not be displaced or work diminished as a result
of using vendor agents.
	 
	 	•	 	The Company will not hire individual contractors to act as vendor agents.
	 
	 	•	 	The Company will only contract with established retail businesses for vendor agent
purposes unless otherwise agreed to by the Union.

1.15 New Technology 

The use of new equipment, technology or procedures which replace or supersede equipment, technology
or procedures currently utilized to perform bargaining unit work, shall continue to constitute
bargaining work. When the Company contemplates the introduction of new equipment, technology or
procedures into the workplace which may have an adverse effect on the terms or conditions of
employment of bargaining unit employees, the Company shall notify the IBEW in advance and upon
request, bargain for a reasonable period over the effects of such proposed new equipment,
technology or procedures. Also, the Company shall provide or make available updated training to
affected employees to allow them an opportunity to establish competency on such new equipment,
technology and procedures.

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ARTICLE II

MANAGEMENT RIGHTS

2.1 Management Rights

The Company reserves the exclusive right and responsibility to manage the business and to direct
the employees who are subject to the Agreement. Accordingly, subject to the specific provisions of
this Agreement, all management rights of the Company are reserved.

	A.	 	Management reserves the right to hire qualified employees and to transfer, assign, deploy,
and direct their work.
	 
	B.	 	The Company further reserves the right to evaluate the performance of employees to determine
their qualification and fitness for continued duty or employment; the right to relieve them
from duty; the right to suspend or discharge them for just cause.
	 
	C.	 	It is the right of the Company to determine the standards of service to be offered; maintain
the efficiency of operations; determine the methods, means, and personnel by which operations
are to be conducted; adopt and amend a classification plan, and to allocate and reallocate
employees to positions within the operations, and adjust the size of the workforce, as may be
necessary to meet the needs of business; take all reasonable actions to carry out its mission
in emergencies; and exercise control and discretion over its organization and technology.
	 
	D.	 	Nothing in this Agreement shall be construed to limit non-bargaining unit personnel from
performing Bargaining Unit work in order to meet the needs of the service under emergency
circumstances or for purposes of giving training or instruction. Such work performed by
non-bargaining unit personnel will not cause layoffs or part-timing of employees.
	 
	E.	 	It is the right of the Company to prescribe for employees in the Bargaining Unit any working
rules, policies, regulations and practices that do not conflict with or violate the terms of
this Agreement, subject to the Company’s obligation to bargain in good faith about matters
over which it is lawfully required to bargain.
	 
	F.	 	The enumeration of management rights herein reserved shall not be deemed to exclude other
rights or functions of management not so enumerated.

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ARTICLE III

UNION RIGHTS

3.1 Union Security

All employees coming under the terms of this Agreement shall as a condition of employment make
application to join the Union within thirty-one (31) calendar days following the date of employment
or within thirty-one (31) calendar days following the date of signing of this Agreement, whichever
is the later. A Steward will be allowed up to one (1) hour of company time to meet with all new
bargaining unit members in a New Employee Orientation to process paperwork and explain the
Agreement and benefit packages. They must then maintain membership in good standing for the life of
this Agreement and any renewal thereof. The Company will, fourteen (14) calendar days after receipt
of a written request from the Union, terminate the employment of an employee who is alleged to have
failed to maintain his membership in good standing as required by the Union. The tender of
initiation fees and periodic dues uniformly required as a condition retaining Union membership
shall constitute good standing in the Union for the purposes of this paragraph. If the Union fails
to admit such an employee to Union membership, this shall not be cause for the employee’s
dismissal.

3.2 Dues Deduction

The Company will deduct dues, assessments and withholdings duly authorized by employees on forms
provided by the Union. The Company will send a check for the total amount deducted, together with
a list of the individuals’ names for whom the deductions were made, to the Financial Secretary as
designated by the Union on or before the fifteenth (15th) day of the following month. This
authority shall be revocable by the employee by notice in writing delivered by mail to the Manager
of Payroll and the Financial Secretary of the Union.

3.3 Political Action Committee Fund

With voluntary authorization by an employee on a form supplied by the Union, the Company agrees to
deduct seven cents ($.07) per hour from the employee’s wages to be submitted to the IBEW Local
Union 1547 for its Political Action Fund.

3.4 Indemnification

The Company assumes no responsibility in connection with deduction of dues except that of
forwarding monies deducted as set forth in this Article. The Union shall indemnify the Company and
hold the Company harmless from any and all claims against the Company for the amounts deducted and
withheld from earnings.

3.5 Strikes, Lockouts & Picket Lines

The Union acknowledges the essential nature of the services provided by its members to the public
and the need to provide uninterrupted services. Accordingly, this Section is a guarantee that there
shall be no strikes, slowdowns, work interruptions, or lockout of employees during the duration of
this Agreement. The grievance and arbitration procedures of this Agreement provide the exclusive
remedy for the resolution of disputes covered by this Agreement.

No employee shall be disciplined for refusing to cross a picket line recognized and sanctioned by
the IBEW and identified as such to the Company in writing by the Union Business Manager or

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designated representative, unless it can be shown that the employee acted unilaterally without
contacting their Steward or the Union Hall to request clarification of the status of the picket.
In the event that a two-gate system exists, the second gate shall not constitute a picket line.

3.6 Union Access to Company Premises 

Union officers and representatives, while acting on Union business, will be granted access to visit
the Company’s premises during working hours. The Union representative will schedule visits to a
department, work site, or facility with the Vice President of Human Resources, or designee. Union
visits shall not interfere with the normal operations of the Company.

3.7 Bulletin Boards and E-Mail

The Company shall provide an on-line bulletin board for access by represented employees. The Chief
Shop Steward will post officially signed Union notices and the Company shall maintain represented
job postings on the on-line bulletin board. In shops where multiple employees share a computer a
physical bulletin board will continue to be provided. The Company is only responsible for
maintaining represented job postings on the on-line bulletin board. The Vice President of Human
Resources, or designee, may allow the Chief Shop Steward(s) the use of e-mail for the timely
dissemination of Union bulletins and information.

3.8 Chief Shop Steward(s)

There will be two Chief Shop Stewards appointed by the Union to represent all employees. These
positions will be full-time assignments and will be compensated at the top craft rate of pay plus
fringe benefits paid for on a scheduled work week basis.

	A.	 	The duties of the Chief Shop Stewards shall include, but not be limited to, the resolution of
employee complaints at the lowest possible level, the coordination and similar resolution of
complaints and grievances from other Shop Stewards, and to serve as a liaison between
employees, Shop Stewards, Union Business Representative, and the Company. The Chief Stewards
shall also be the last employees laid off in their previous job classification.
	 
	B.	 	In addition, the duties and activities of the Chief Stewards shall include administration of
the Agreement, Union orientation of new employees, and other duties mutually agreed upon by
the parties.
	 
	C.	 	The Chief Stewards shall notify the appropriate supervisor prior to entering a work unit to
conduct Union business.
	 
	D.	 	One-half (1/2) of the cost of the two full-time Chief Shop Stewards’ wages and fringes will
be reimbursed to the Company by the Union.

3.9 Shop Stewards

The Union shall have the right to designate six (6) Stewards in Anchorage, four (4) in the
Interior, three (3) for the Southwest, and two (2) for the Southeast, not counting two (2) Chief
Stewards. The Union shall notify the Company in writing, as to the identity of said Stewards prior
to the assumption of Steward duties.

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	A.	 	The Stewards shall report time spent performing Union business on the time reporting system.
	 
	B.	 	The Stewards shall be allowed to perform any normal Union duties during working hours.
	 
	C.	 	The Stewards shall notify the appropriate manager prior to entering a work unit to conduct
Union business.
	 
	D.	 	The Stewards shall notify the appropriate Supervisor as to the intent and reason, the
estimated time, and where the Steward can be reached before the assumption of such Union
duties.
	 
	E.	 	The Union shall notify the Company within twenty-four (24) hours as to the appointment or any
official status change of any Steward.
	 
	F.	 	The Company shall not discriminate against the Steward with regard to the proper performance
of the Steward’s duties provided such duties are conducted in a timely manner.
	 
	G.	 	An appropriate Steward, Chief Shop Steward or the Business Representative shall be present
during all meetings from which disciplinary action may result.

3.10 Union Duty

Upon providing management with reasonable notice, a regular employee elected or appointed to office
or Union duty shall be granted a leave of absence without pay for the term of office or duty
involved, not to exceed three (3) years, and shall continue to accrue bargaining unit seniority
during the leave of absence. This Section does not include Chief Stewards or Stewards as they
remain employees of the Company during their assignments. Such Union leave may be extended from
time to time by mutual agreement. An employee who has been granted Union leave shall provide the
Company at least four (4) weeks notice prior to returning to work. The Company shall cash out all
compensable leave to the employee upon effective start of Union Duty.

3.11 Union Right to Discipline Members

The Union reserves the right to discipline its members for any violations of Union laws, rules, or
agreements. However, the parties recognize that no General Foreman, Foreman, or Lead shall be
subject to discipline by the Union for exercising the responsibility and authority for which they
are held accountable by the Company as their legitimate and expected duties which, by the
management nature, place them at potential odds with the bargaining unit employees under their
authority.

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ARTICLE IV

GRIEVANCE AND ARBITRATION PROCESS

4.1 Purpose 

The purpose of this procedure is to provide a means whereby complaints and grievances may be
adjusted or resolved promptly and fairly.

4.2 Complaints

An employee, either directly or through the local Steward, may verbally present a complaint to the
supervisors. Employees and supervisors are encouraged to resolve disputes in this manner, provided
the resolution is not inconsistent with the terms of this Agreement. The Steward shall have the
right to be present at and to participate in the process. Because of the informal nature of the
complaint process, resolutions shall not be considered precedent setting.

4.3 Definitions and Presentation of Grievances

“Grievances” shall mean, and be limited to, disputes or differences arising during the term of this
Agreement between the Company and the Union, or employees so represented, with respect to the
interpretation or application of any specific provision of this Agreement. Probationary employees
shall not have the right to file a grievance for discipline or involuntary separation, nor shall
the Union file a grievance on their behalf.

	A.	 	Both parties agree to use their best efforts, including informal meetings involving
supervision, Human Resources, the appropriate Steward, and the grievant, to resolve matters
without resorting to the grievance procedure except that any such meetings shall not extend
the time limits set forth in this Section. In the event such informal methods do not result
in a resolution, the dispute must be reduced to writing. The written “Notice of Grievance”
shall contain:

	 	1)	 	The name(s) of the employee claiming to be aggrieved.
	 
	 	2)	 	The nature of the grievance and the circumstances out of which it arose,
including the date of occurrence.
	 
	 	3)	 	The remedy or correction which is requested.
	 
	 	4)	 	The Section(s) of the Agreement relied upon or alleged to have been violated.
	 
	 	5)	 	The signature of the grievant, if applicable, and a Steward or Business
Representative.
	 
	 	6)	 	In the case of class action grievances, the class may be described in general
terms, so long as more than two (2) members of the class sign the grievance. The
grievance need not be signed by all members of the aggrieved class.

	B.	 	A grievance must be presented within twenty (20) calendar days, except that grievances for
involuntary separation must be filed within ten (10) working days, after the employee or the
Union knew or should have known of the event giving rise to the grievance. The failure to
submit a grievance within such periods shall constitute a bar to further action thereon.

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	C.	 	The grievance shall be processed in accordance with the following steps:
	 
	 	 	Step 1
	 
	 	 	Within five (5) working days after the grievance is presented at Step 1, a meeting shall be
held with the grievant, the Department Head of the activity, or designated representative,
and the appropriate Steward, or designated representative. The Department Head shall make a
reply in writing not later than five (5) working days after the meeting. If this reply is
unsatisfactory, the grievance may be appealed to Step 2 provided such appeal is made within
five (5) working days following the receipt of the reply.
	 
	 	 	Step 2
	 
	 	 	Within ten (10) working days after the grievance is appealed to Step 2, a meeting shall be
held between the appropriate Vice President of the Company, or designated representative and
the Chief Shop Steward, or designated representative. Written documentation explaining
reason for disagreement along with any supporting information must be included with the
grievance appeal. The Vice President shall make a reply in writing not later than five (5)
working days after meeting with the Union’s representative. If this reply is
unsatisfactory, the Union will provide written notice to the Vice President of Human
Resources within ten (10) working days following receipt of the Step 2 reply. The Union
will have up to twenty (20) working days to complete its internal review process. If after
its review process is completed the Union wishes to advance the grievance further, the Union
shall submit a written request to the Vice President of Human Resources for a meeting of the
Grievance Review Committee (GRC). The GRC will be convened within ten (10) working days of
receipt of the written request from the Union. If the grievance is not resolved by the GRC,
the grievance may be appealed to arbitration provided written notice of such appeal is given
to the Vice President of Human Resources within ten (10) working days following meeting of
the GRC.
	 
	D.	 	The time limits set forth above may be extended by mutual agreement of the parties. Failure
of either party to act within the time schedule set forth in this procedure without the
express written agreement of the other party will be considered a default and the grievance
shall be considered to be settled in favor of the non-defaulting party. Grievances settled in
favor of either party as a result of such a default shall not be considered precedent setting.
The mailing, e-mailing or facsimile transmission of the grievance appeal or answer shall
constitute a timely appeal or response if postmarked or electronically inscribed within the
appeal period. The decision to appeal a grievance filed by the employee(s) to arbitration
shall be solely the determination of the Union.
	 
	E.	 	In the application of this Article “workdays” shall exclude Saturdays, Sundays and recognized
holidays. Nothing in this Section shall be construed to prevent settlement of a grievance by
mutual agreement of the parties at any time.

4.4 Arbitration

Arbitration shall be conducted in accordance with the following rules:

	A.	 	Within thirty (30) days after filing the appeal for arbitration, the party seeking
arbitration shall request from the Seattle office of the American Arbitration Association
(AAA) or from the Federal Mediation & Conciliation Service (FMCS) a panel of seven (7)

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	 	 	proposed arbitrators who are members of the National Academy and have their principal place of
residence or business in Alaska, Washington, Oregon, or California. The Company and the Union
may attempt to agree on an arbitrator at any time prior to receipt of the panel. The parties
shall alternately strike from this list one (1) name at a time, with the moving party to have
the first strike, until only one (1) name remains on the list. The name of the arbitrator
remaining on the list shall be accepted by the parties. In the event that the selected
arbitrator is unwilling or unavailable to serve, and if the parties are still unable to
mutually agree on an arbitrator, the procedure shall be repeated with a new list of
arbitrators supplied by the AAA or FMCS.
	 
	B.	 	All arbitration hearings will be conducted at a mutually agreeable location. Subject to the
Company operation requirements, an employee grievant shall be allowed time, without loss of
pay, to attend arbitration hearings conducted during the employee’s scheduled working hours.
In the event of a grievance involving a class of employees, a reasonably limited number of
employees in the class (not to exceed three (3) employees) shall be permitted to attend
hearings during scheduled working hours, without loss of pay. The hearing will be scheduled
so as not to impact the Company’s operational requirements. The Company will pay no
compensation for attendance by employees at hearings conducted outside the employee’s
scheduled working hours.
	 
	C.	 	The parties agree that the decision or award of the arbitrator shall be final and binding on
each of the parties and that they will abide thereby, subject to such laws, rules and
regulations as may be applicable. The authority of the arbitrator shall be limited to
determining questions directly involving the interpretation or application of specific
provisions of this Agreement, and no other matter shall be subject to arbitration hereunder.
The arbitrator shall have no authority to add to, subtract from, or to change any of the terms
of this Agreement, to change an existing wage rate, or to establish a new wage rate. In no
event shall the same question be the subject of arbitration more than once.
	 
	D.	 	The fees and expenses of the arbitrator shall be shared equally by the Company and the Union.
All other expenses, including any attorney’s fees and costs, shall be borne by the party
incurring them. Either party may require that an official record be prepared by a
professional reporter and that a copy be provided to the arbitrator. The party requiring an
official record of the proceedings will pay the full cost of all reporting and transcript fees
unless the other party requests a copy for the right of inspection or use, in which the full
cost (including the cost of providing the arbitrator with the official record) shall be
equally divided between the parties.

4.5 Counseling and Discipline

	A.	 	Performance Management. For the purposes of communicating performance expectations
and correcting behavioral issues, the Company may counsel employees to offer non-disciplinary
feedback and provide direction. Counseling sessions are private meetings between a supervisor
and an employee, and Union representatives do not have a right to attend such meetings.
Discipline will not be discussed at a counseling meeting. However, if the Company makes
statements to the employee to the effect that failure to satisfactorily correct the
performance or behavior may result in disciplinary action, the supervisor will secure a
Steward before the meeting can continue. If necessary, the

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	 	 	supervisor shall end the meeting and reschedule for a time when a Steward can be present.
The subject and nature of the counseling shall not be grieved.
	 
	B.	 	Progressive Discipline — In normal circumstances, the Company shall follow a program
of graduated discipline for just cause, consisting of oral warning, written reprimand,
suspension for a period to be determined by the Company, with or without pay, or involuntary
separation of employment. The Company may impose discipline at any level depending upon the
severity or frequency of the offense.
	 
	C.	 	Involuntary Separation from Employment — The Company retains the right to discipline
an employee for just cause. The Company agrees that in the case of discharge, the designated
Union representative shall be notified of the reason of such contemplated discharge prior to
any action taken against the employee. If circumstances warrant immediate action and the
Business Representative and/or Chief Shop Steward cannot be notified, the employee shall be
suspended without pay until the Business Representative and/or Chief Shop Steward is notified,
or five (5) working days pass, unless constraints preclude such notice. If the Union fails to
grieve a discharge within ten (10) working days of the action, the right to grieve or
arbitrate the action is forfeited.
	 
	D.	 	Letters of Disciplinary Action Time Limits — Two (2) years from the date of the
action concerned, the Vice President of Human Resources, at the employee’s request, shall
review the disciplinary action and if no subsequent report of similar violations has been
made, the Company shall be notified to return its copies with respect to the disciplinary
action from the employee’s personnel files to the interested employee.

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ARTICLE V

JOB AWARDS AND EMPLOYEE CLASSIFICATION

5.1 Work Calls

	A.	 	The Union will be advised when new or replacement employees are needed and shall make every
effort to provide satisfactory applicants to the Company. The Company’s notice to the Union
shall include the job title, minimum qualifications, and the number of employees needed. If
there are no available applicants on the books, the Union will notify the Company within
forty-eight (48) hours. Once notified, the Company will be free to seek employees through any
source. If the Company can not locate a qualified individual, the Company will attempt to
locate a signatory contractor that does the work in question. In the event the Company
request more than three (3) employees of the same classification simultaneously, the Union
will have seventy-two (72) hours (excluding holidays and weekends) from the date of the advice
to refer the additional candidates.
	 
	B.	 	If the Company cannot locate an available signatory contractor that performs the work in
question, the Union will have two (2) days to provide a list of additional signatory
contractors. If the signatory contractors identified by the Union are not available or do not
perform the work, the Company will be free to perform the work through any provider.
	 
	C.	 	If, the Company thereafter locates another contractor or employment agency with employees
available to do the work, the Company may use the contractor or agency referred employees up
to a total of ninety (90) calendar days unless extended by mutual agreement by the Company and
Union. The ninety (90) day period shall end if an extension is not mutually agreed: (1) when
the position is filled with a regular employee; (2) when the Union locates an available
signatory contractor; or (3) at any time the work call is closed by the Company; whichever
event occurs sooner. However, the company will give notice of termination as required by its
contract with the contractor or employment agency not to exceed thirty (30) days.
	 
	D.	 	If the contractor or agency’s employees are not IBEW members, they shall be “permitted
out” to work by the Union Hall. The Company will remit to the Union a permit fee every month
for each contract worker equal to the BA monthly dues. The fee, with the contract worker’s
name for whom the payment is made, will be forwarded to the Union on or before the
15th of each month.
	 
	E.	 	If there are available applicants the Union will dispatch up to three (3) within
forty-eight (48) hours following the Union’s notice. The Company will notify the Union within
forty-eight (48) hours of intent to reject, hire, or investigate the applicants further. The
Company may reject any applicant it finds unsatisfactory.
	 
	F.	 	Applicants will only be dispatched after completing the Company’s on-line applicant
profile and job application.
	 
	G.	 	The Company will provide the Union the name, address, job title, and date of hire for all
new employees.

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	H.	 	The Union and the Company will use their best efforts to recruit qualified individuals
and signatory contractors to fill all work calls.
	 
	I.	 	It is the Company’s intent to use the processes set forth in A and B above to fill work
calls with represented employees or signatory contractors. The Company will use other
providers only when the circumstances make it reasonably necessary to fulfill the requirements
of the business.

5.2 Job Notice

The following procedure will govern job posting, and job bidding for all job classifications
covered by this Agreement.

	A.	 	Job Posting — The Company may post a position as soon as notice is received of an
impending vacancy. Postings shall provide the details and minimum qualifications applicable
to the position and will be listed on the on-line bulletin board for a minimum of four (4)
working days. The Company may simultaneously post notice with the Union and to the public.
Applicants shall be considered by the Company such that internal applicants are given first
priority, applicants from the Union second, and any other applicant third.
	 
	 	 	1) Bidding - Any employee covered by this Agreement may bid for the position during
the posting period by completing the on-line applicant profile and application and
submitting it to Human Resources within the posting period. Temporary jobs are not
biddable.
	 
	B.	 	Prior to opening any bids the Company shall declare whether or not temporary employee bids
will be considered. Temporary employee bids may be considered only after all regular employees
who have bid, have been found to be unqualified.
	 
	C.	 	Regular employees may bid for a job after the employee has completed twelve (12) full months
employment. All employees are limited to one (1) successful bid during each twelve (12) month
period. The Company and the Union may agree to waive this limitation. Regular employees with
waivers will be considered with all other regular employees. This Section shall not prevent
an employee from bidding on promotional opportunities.
	 
	D.	 	Represented employees that accept non-represented positions will be eligible to reapply for
represented positions and will be considered after all represented regular and temporary
applicants.
	 
	E.	 	If there are any disputes regarding the consideration of applicants the issue will be
referred to the Business Representative and Company’s top Executive for the affected position
for resolution.

5.3 Job Award/Bid Committee

The bid committee process excludes new hires and lateral transfers. Within ten (10) working days
after the closing date of the bids, the bidders will be considered and the job awarded.

	A.	 	A Bid Committee composed of one (1) representative from the Union and one (1) from management
will first review all bids for validity of minimum qualifications. All qualified bids will
then be considered on the basis of leadership, job performance

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	 	 	(including any discipline),
skills and knowledge, judgment, interpersonal skills, oral and written communication,
presentation, and decision-making ability. Where employees are equal in qualification,
seniority shall prevail.
	 
	B.	 	An employee who successfully bids into a classification that has progressive pay steps (e.g.,
start, 6-month, 12-month, and 18-month), will be placed at the appropriate pay step in the new
classification that would ensure that the employee’s base rate is not diminished by virtue of
the successful bid. This condition will not apply to any bids involving trainee positions.
	 
	C.	 	The Bid Committee shall determine the qualifications of employees. In the event the Bid
Committee is unable to reach a decision within three (3) working days, an impartial tiebreaker
will be selected by the Division Vice President and the Union Business Representative to make
the final decision as to an employee’s qualifications.
	 
	D.	 	The bid award decision shall be final and shall not be subject to the grievance and
arbitration provisions of this Agreement unless it can be shown that an applicant was
unlawfully discriminated against as defined in Section 1.13.

5.4 Lateral Transfers

A lateral transfer is defined as movement with the same job classification, or similar job
classification within the same skill group.

	A.	 	Managers may announce a lateral transfer opportunity to their eligible work group or to all
work groups that have the same job classification and skill group via email or a posting on
the on-line bulletin board with a copy to the Chief Shop Steward and Human Resources.
Eligible employees interested in Lateral Transfer will notify the manager in writing within
seventy-two (72) hours of the announcement.
	 
	B.	 	The manager will designate an interview team of two (2) management employees to select the
most qualified employee for the position. The interview team will consider minimum
qualifications and other qualifications for the classification, as well as any special skills
and knowledge required to perform the duties. When qualifications are equal, they will make
the selection based on leadership, job performance (including any discipline), judgment,
interpersonal skills, oral and written communication, presentation, and decision-making
ability.
	 
	C.	 	Employees who volunteer and are selected under this provision will work the shift they are
transferred into until the next regular shift bidding cycle.
	 
	D.	 	Any moving costs associated with accepting a lateral transfer are the responsibility of the
employee.

5.5 Training Positions 

The Company may fill a vacancy as a training position if there are no qualified bidders and there
is not an IBEW apprenticeship program for the position. The Company may post a vacancy as a
regular and a training position simultaneously.

Individual applicants shall be considered in the following order:

	 	1)	 	regular employees covered by the Agreement;

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	 	2)	 	employees not covered by the Agreement;
	 
	 	3)	 	non-employee applicants. Non-employee applicants, if selected, will be
classified as temporary employees.

	A.	 	Training positions will be governed by the following:

	 	1)	 	Non-Journeyman: The openings will be posted as “training positions.” The
training period for non-Journeyman position shall consist of two steps. The first step
shall be eighty percent (80%) of the position’s current entry level rate of pay for the
first six (6) months and ninety percent (90%) for the second six (6) months to comprise
the one (1) year training period.
	 
	 	2)	 	Journeyman: The entry level position into these families are as follows:
	 
	 	 	 	Service Delivery Specialist IV, Network Engineer Family, Systems Engineer Family,
Materials Management Specialist II, Fleet Services Technician Family, and Facility
Maintenance Family (except Electrician). These classifications may be given an
opportunity to gain knowledge, skills, and abilities necessary to bid into
Journeyman positions in these job classification families.
	 
	 	 	 	The training wage rate will be seventy percent (70%) of the entry level step for the
appropriate job classification for the first six (6) months of the assignment;
eighty percent (80%) of the entry level step for the second six (6) months; and then
ninety percent (90%) for the last six (6) months or until the assignment ends,
whichever comes first. The training period will be for up to one and one-half (1 1/2)
years unless the Company and Union mutually agree to an extension.
	 
	 	3)	 	The receiving foreman and supervisor for any training position are responsible
for developing the training plan and objectives that set forth a reasonable timeframe,
in which the trainee will be expected to be proficient in the new job. This training
plan will be reviewed with the employee by the foreman and supervisor on a monthly
basis to ensure the employee knows what is expected, that training is on target and the
trainee is successfully meeting the training objectives and gaining the desired
proficiencies.
	 
	 	 	 	If the trainee is not satisfactorily meeting the training objective and gaining the
desired proficiencies within thirty (30) calendar days, the trainee will be returned
to the trainee’s former position. If after thirty (30) calendar days the foreman
and supervisor conclude that the trainee is not satisfactorily meeting the training
objective and gaining the desired proficiencies, the trainee will be returned to the
trainee’s former position if it remains vacant. If the trainee’s former position is
no longer vacant, the trainee will be subject to layoff as set forth in Section
6.10.

	B.	 	Training positions may not exceed twenty-five percent (25%) of the positions for that job
classification without mutual consent of the Company and Union.

5.6 Job Classifications

The parties recognize the Company’s bargaining unit job classifications as listed and contained in
this Agreement and that such classifications have been agreed upon and are in existence upon the
signing of this Agreement.

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5.7 Classification Committee

The Union and the Company shall establish a Classification Committee consisting of one (1)
management representative and one (1) Union representative appointed by the Chief Steward.

	A.	 	The Committee shall be charged with establishing or amending proposed job classifications or
descriptions falling within the scope of this Agreement.
	 
	B.	 	If the Classification Committee does not agree on the new job classification or the proposed
changes the Company may implement its proposed changes, but the change(s) will be subject to
the grievance process outlined in Section 4.3, starting at Step II.
	 
	C.	 	The Company will also submit material changes in job descriptions for review and comment of
the committee prior to implementing such changes.

5.8 Designation of Employees

	A.	 	Regular — Regular employees are those employees who have successfully completed their
probationary period and are employed full-time.
	 
	B.	 	Regular Part-Time — Regular part-time employees are those employees who have
successfully completed their probationary period and are employed in positions where the work
involved will total less than forty (40) hours per week. This language will not be used to
reduce regular full-time employees to part-time status. Part-time employees will not be used
to perform Journey work. The number of part-time employees shall not exceed twenty percent
(20%) of the regular full time employees in the same classification.

	 	1)	 	Part-time employees receive the same benefits as regular employees,
with the following exceptions:

	 	a.	 	Employees who are scheduled and work eighty (80) hours in any
one (1) month shall be enrolled in the Alaska Electrical Health and Welfare
(“H&W”) Health Plan of choice for the following month.
	 
	 	b.	 	Employees who are scheduled and work less than eighty (80)
hours per month are not eligible for enrollment in the H&W Health Plan.
	 
	 	c.	 	Employees receive prorated Holidays and Leave per Article XII.

	C.	 	Temporary (non-NECA) — Temporary employees are those employees hired to augment the
work force whenever the work load temporarily requires additional help, or in the event of an
emergency or unanticipated condition or situation. Temporary employees may be hired on a
full-time or part-time basis, not to exceed twelve (12) months in duration unless extended by
mutual agreement between the Company and the Union. If the temporary employee is extended
beyond twelve (12) months, the position shall be bid immediately per provisions of this
Agreement.

	 	1)	 	Temporary employees shall be paid the hourly wage rate for the classification
in which they work, and shall receive a wage progression step increase upon completion
of the applicable months listed in Appendix I.
	 
	 	2)	 	Temporary employees who have worked a three (3) month consecutive period shall
be enrolled in the H&W Health Plan of choice for the following month.

- 18 -

 

	 	3)	 	Temporary employees will receive pension in accordance with Article XIII.
	 
	 	4)	 	Temporary employees do not receive leave or holiday pay.
	 
	 	5)	 	The Company may terminate temporary employees and such termination shall not be
subject to the grievance and arbitration provisions of this Agreement.

5.9 Temporary Full Time Employees Health and Welfare

Temporary full-time employees who have worked a three (3) consecutive month period shall be
enrolled in the Alaska Electrical H&W Health Plan the following month.

5.10 Job-Share

The job-share program is designed to retain the valuable services of qualified employees through
two (2) employees sharing a single budgeted position.

	A.	 	Job-sharing is defined as when two (2) employees qualified for the same
classification “share” one (1) position on prearranged schedules consistent with Article IX.
	 
	B.	 	Separation, Promotion or Transfer — If a job-share employee separates or successfully
bids into another classification, the remaining employee will have the option of reverting to
full-time or requesting that the job share position be bid. If another job-share partner is
not located, the employee will be expected to resume full-time work status.
	 
	C.	 	Flexible Time Off (FTO) — FTO will be prorated based on the hours worked.
	 
	D.	 	Holidays — The employee scheduled on a holiday, will observe the holiday. The
employee who is not scheduled will not be compensated for the holiday. Each employee shall be
entitled to two (2) personal holidays per year.
	 
	E.	 	H&W Plan — The Company will pay one-half of the H&W Health Plan premium amount
currently in effect for a regular employee and the job-share employee will pay one-half of
the premium and any employee co-pay. If the employee does not want insurance coverage, they
must notify the Company in writing.

5.11 IBEW NECA Temp Employees

	A.	 	IBEW Inside/Outside Agreement employees are employees who may be hired to augment the work
force in specific classifications identified in this Agreement for a period not to exceed
twelve (12) months unless extended by mutual agreement by the Company and Union.
	 
	B.	 	An Inside/Outside Agreement employee who is extended beyond twelve (12) months shall have the
same eligibility to receive all benefits as a regular employee. If the temporary employee is
extended beyond twelve (12) months, the position shall be bid immediately per provisions of
Section 5.3 of this Agreement. Pay for such employees shall be based on the current contract
pay scale in effect between IBEW Inside/Outside Agreement employees and the Union, including
fringe benefits limited to health and welfare, pension (which includes money purchase and
NEBF), legal and apprenticeship, payable to the joint account of the applicable trusts.
	 
	C.	 	The employment of NECA temporary employees is governed by the provisions of this Agreement
with the exception of the hourly rate of pay and hourly benefits. The

- 19 -

 

	 	 	applicable IBEW NECA
Inside/Outside Agreement shall be used to determine the hourly rate of pay and hourly
benefits, which are limited to health and welfare, pension (including money purchase and
NEBF), legal and apprenticeship contributions.
	 
	D.	 	All other provisions of employment are governed by the ACS/IBEW Master Agreement and any
subsequent agreements made between ACS and IBEW.

5.12 NECA Apprentice 

	A.	 	Apprentices shall be designated as either low-time (4000 accredited hours or below) or
high-time (above 4000 accredited hours) apprentices.

	 	1)	 	Low-time apprentices will be assigned to work directly with a Journeyman,
except as provided in 5.12 (D).
	 
	 	2)	 	Apprentices classified as “high-time” may be utilized for certain less
technical tasks, that are not safety sensitive, as set forth below, under the direction
of a Journeyman or Foreman without being assigned to work directly with a Journeyman.
Such Apprentices are those who have completed 4000 accredited hours of employment as
Apprentices. Examples of less technical tasks which may be performed without direct
supervision include: wire pulling, station wiring, jumper running, and set preparation
(designation strips).
	 
	 	3)	 	Apprentices with 6500 accredited hours may work alone, under the direction of a
Journeyman or Foreman without being assigned to work directly with a Journeyman.

	B.	 	Ratio — The Company may employ apprentices at the following ratio:

	 	1)	 	One (1) Apprentice for the first Journeyman employed; and
	 
	 	2)	 	One (1) additional Apprentice for each three (3) Journeymen employed.

	C.	 	Temporary Apprentices — When the Company desires to hire a Temporary Apprentice, the
Company shall place a work call to the apprenticeship school and specify either a low-time
(4000 accredited hours or below) or a high-time (above 4000 accredited hours) Apprentice.
	 
	D.	 	Temporary Frame Apprentices

	 	1)	 	Temporary low-time Apprentices may be used to work in the Company’s Central
Offices running jumpers on the frames without directly being assigned to work with a
Journeyman and shall be designated as “Frame Apprentices.”
	 
	 	2)	 	Frame Apprentices can work alone; however, a Journeyman must be on duty and
available for the Apprentice either at the assigned reporting Central Office or the
NOCC.
	 
	 	3)	 	The Company will provide training on how to properly run and terminate jumpers,
how to read service orders and other tasks associated with working frames. Additional
training will be provided concerning safety issues in the Central Office, i.e., working
around power, ladder safety, eye protection, etc.

- 20 -

 

	 	4)	 	A “Frame Apprentice” adept at completing assigned frame tasks may assist
Central Office Journeymen with other job functions.
	 
	 	5)	 	The length of employment for each of these “Frame Apprentices” will be limited
to their next scheduled AJEA&TT classroom training.

5.13 NECA Temporary Employees in Remote Locations

	A.	 	Those IBEW NECA Temporary employees working in a job area outside a radius of fifty-three
(53) direct road miles or areas inaccessible by road from the centers of Anchorage, Fairbanks,
Juneau, and Ketchikan, or the current location of the Wasilla Post Office will have the option
of board and lodging or per diem for up to twenty-one (21) days, and thereafter shall be
entitled to per diem only. The per diem rate shall be as specified in the current applicable
IBEW Inside/Outside Construction Agreement. This provision shall not apply to employees who
are dispatched to ACS job sites in which the employee is a resident within thirty (30) direct
road miles of the job area, in those locations outside the areas specified above.
	 
	B.	 	IBEW NECA Temporary employees dispatched to a job area and then subsequently sent on
assignment to another job area by the Company as specified above shall receive board and
lodging that is paid by the employer, if available. If accommodations are not available, then
those employees will receive per diem at the rate specified in the current IBEW Inside/Outside
Construction Agreements for all days spent in those locations.

5.14 Summer Student Employees

The Company may employ up to four (4) temporary summer student employees unless both parties agree
in writing to amend these numbers. The following provisions apply to Student employees:

	A.	 	Student employees must be at least eighteen (18) years of age and must be full time students.
	 
	B.	 	They may perform any general maintenance work for which they are qualified, and shall be
supervised by a Foreman.
	 
	C.	 	Student employees shall receive forty percent (40%) of the Journeyman Facilities Maintenance
Technician II wage rate. The standard Union dues will be deducted from the employee’s wage in
accordance with Section 3.2 of the Agreement. Student employees will be subject to all
provisions set forth in the current Agreement, with the following exceptions: they shall not
receive Health & Welfare, Pension Contributions, Holiday Pay, FTO or any other form of paid
leave.
	 
	D.	 	Student employees are ineligible to bid on any regular full time, regular part time, or other
temporary positions. Student employees may be hired no earlier than May 1st or
employed later than September 30th each year. Student employees shall not be
employed more than one hundred (100) days, and shall be limited to a maximum of four (4)
seasons of employment.
	 
	E.	 	The Union dispatch procedures in Section 5.1 of this Agreement shall not be applicable when
filling a student employee position. However, the Union will be allowed to refer applicants
for these positions, and those hours worked by these employees will count

- 21 -

 

	 	 	towards the Union’s out of work Book status. The Company shall inform the Union of the name(s) and date(s) of
hire for all student employees hired.
	 
	F.	 	Summer student employees are not to be used to supplement Journeyman or other classifications
in such a way as to eliminate or to make unavailable a regular full time bargaining unit
position or to circumvent the Apprenticeship program.

5.15 No Out-Of-State Job Transfer

There shall be no involuntary transfer by the Company of any employees covered by this Agreement
outside the State of Alaska during the life of this Agreement.

5.16 Transfer of Work

There shall be no transfer of work during the term of this agreement outside the State of Alaska
without the concurrence of the Union.

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ARTICLE VI

GENERAL WORK RULES

6.1 Seniority

	A.	 	Bargaining Unit Seniority (Seniority) for Regular employees is defined as the length of
service since last employed by the Company in classifications covered by this Agreement.
Seniority is used for layoff, transfer, recall, selection of vacation, preference in the
election of shifts and days off. Seniority shall not be bridged or prorated.

	 	1)	 	In the case of employees with identical bargaining unit seniority dates, the
number of the dispatch slip as printed by the IBEW Hall will be the tie-breaker. In
this case, the employee with the lowest dispatch number has the highest seniority.
	 
	 	2)	 	If for any reason the dispatch slips cannot be found or have no dispatch
number, the affected employees will put their names in a hat. The first name picked
out of the hat will have the highest seniority; the second name will have the next
highest, and so on. This order will be recorded by the Shop Steward present at the
proceedings, and will be their permanent Seniority order. The affected employees and a
Shop Steward must be present during the drawing.

	B.	 	Continuous Service for Regular employees is defined as the total countable time of
employment, (as well as time in non-bargaining unit positions) in the service of the Company,
its predecessors and subsidiaries. Continuous service is used for the purposes of benefit
accrual; continuous service will be bridged for previous employees who are rehired after the
employee has worked a period of time equal to the absence. Continuous service credit shall
not be bridged or pro-rated between predecessor or acquired companies.

6.2 Probationary Employees

Probationary employees are those on trial to qualify for regular positions. Regular employees
shall be considered to be on probation for the first six (6) months unless extended by mutual
agreement between the Company and the Union. During the probationary period the Company may, at
its option, layoff or discharge such employee as long as the dismissal is not discriminatory.
Probationary employees shall not have the right to file a grievance over matters involving
discipline or involuntary separation. Probationary employees do not have seniority until they
become regular.

6.3 Familiarization Period after Promotion or Lateral Move

Any employee who is promoted or laterally moved from one type of work to another shall be given a
reasonable length of time, not to exceed 180 calendar days, to become acquainted with the job and
establish the ability to fill the job satisfactorily. Should the employee’s performance in the new
job prove unsatisfactory, the employee shall be immediately notified and returned to
the former job without loss of seniority if the position is still vacant. If the position is not
vacant, the employee shall be returned to the next vacant position in the classification from which
the

-23-

 

employee bid or to the next vacant position for which the employee is qualified in a
classification with comparable pay to the classification from which the employee bid.

6.4 Annual Performance Evaluation Program 

The Company and the Union recognize that there is value for both the Company and the employees in a
performance evaluation program that involves goal setting and written performance evaluations.

	A.	 	Annual Performance Evaluation (Evaluation) program shall be in accordance with the following:

	 	1)	 	Evaluations will include SMART Goals that are both achievable and within the
employee’s responsibility.
	 
	 	2)	 	Evaluations will provide feedback to the employee for their performance during
the calendar year.
	 
	 	3)	 	Employees hired within the last two (2) months of the calendar year will not
receive a written Evaluation but will be assigned SMART Goals for the next year.
	 
	 	4)	 	Vitality curves or forced ranking will not be used to determine an individual
employee’s performance ranking.
	 
	 	5)	 	Evaluations used for internal hiring shall be limited to the last three (3)
evaluations in the personnel file.
	 
	 	6)	 	Evaluations shall not be used to deliver discipline.
	 
	 	7)	 	Performance Evaluations and SMART Goals are not subject to Article IV of the
Agreement, with the exception of discrimination as described in Section 1.13.
	 
	 	8)	 	The employee may provide a written statement that will be attached to the
Evaluation.

B. Overall Below Target Final Review Process

	 	If an employee is in disagreement with a final evaluation in which the overall rating is
below target the employee may:

	 	1)	 	Request a meeting in writing within ten (10) working days of receipt.
	 
	 	2)	 	The Manager shall hold a meeting with the employee and the union
representative, if requested by the employee, to review the employee’s evaluation.
The Manager will give due consideration to the employee’s areas of concern and
respond in writing within ten (10) working days to notify the employee and union of
any changes requested from the review.
	 
	 	3)	 	If the employee is still in disagreement, the employee may submit a written
statement within ten (10) working days of receiving the Manager’s response. The
Manager’s response and the employee statement shall be attached to the employee’s
performance evaluation and placed in the employee’s personnel file.

6.5 Family Members

It is agreed that members of the same family may be employed, but one family member may not
directly supervise another and may not process, review or audit the work of another, whether in the
same or different departments. All employment of relatives must be approved in advance by

- 24 -

 

the
appropriate Division Executive and the Vice President of Human Resources. For the purposes of this
Section, family members shall be defined as spouse, brother, sister, father, mother, child,
step-father, step-mother, grandmother, grandfather, grandchild, mother-in-law, father-in-law,
step-child, uncle and aunt. The definition also includes all other relatives who live in the same
household and persons who live together in non-marital, non-related arrangements.

6.6 Sales and Service Associate Incented Positions

A major objective for sales incented positions is to realize new revenue by promoting and selling
products and services. As such, sales incented positions within the Sales and Service Associate
(SSA) classification have a monthly performance target (incentive threshold) to meet and are
eligible for additional compensation, in accordance with the Sales Incentive Plan, for exceeding
sales incentive targets. The following provisions are applicable to sales incentive-eligible
employees.

	A.	 	Sales Incentive Measurements: Once a sales-incented SSA meets their incentive target for the
month, incentive pay of not less than $2.50 will be paid for each sales point that exceeds the
incentive target. Specific performance levels, rates, and products and service targets are
available on the Corporate Network.

	B.	 	Promotional Incentives: From time to time the Company will announce short duration
promotional contests designed to drive products, introduce new products or services. Contests
are open to the Work Groups where the contest is announced. A menu of contest prizes agreed
to by the Union is available on the Corporate Network.

	C.	 	Sales Incentive Target: Five (5) days prior to the start of each month employees will be
informed of the months’ sales incentive target. Sales Incentive Targets are measured as
follows:

	 	1)	 	Incentive targets are prorated at month end for training time, FMLA, approved
FTO, Personal Holiday, and other non-sales assignments by a lead or manager.
	 
	 	2)	 	Employee orders are a service function and are not incented.
	 
	 	3)	 	Certain SSAs incentives are based off of company budget numbers and are not
prorated.
	 
	 	4)	 	Incentive targets are measured on one of the following: individual
performance, store performance, group performance, or on the company budget.
	 
	 	5)	 	The lowest prorated incentive threshold is twenty percent (20%).
	 
	 	6)	 	There is no minimum for time in the queue for Call Center SSAs and no minimum
days worked for Retail SSAs. Example: If an SSA is in the queue for five percent (5%)
or only one (1) day of the month, their incentive threshold is twenty percent (20%).
If the SSA is in the queue for forty percent (40%) of the time or twelve (12) days of
the month, their incentive is forty percent (40%).

	D.	 	Shift bidding will be bid and awarded on a combined seniority and job performance basis
approximately every ninety (90) days. Employees will be grouped by bargaining unit seniority
effective the first day of each prospective bid as follows:

	 	•	 	0 through 24 months of bargaining unit seniority

- 25 -

 

	 	•	 	25 months through 48 months of bargaining unit seniority
	 
	 	•	 	49 months through 120 months of bargaining unit seniority
	 
	 	•	 	121 months and over of bargaining unit seniority

	 	1)	 	Within each defined Work Group (Call Center or Retail)/subgroup employees will
be ranked by the results of a performance evaluation. Shift bidding will begin with
the employees in the 121 months and over of bargaining unit seniority, then the 49
through 120 months of bargaining unit seniority, then with the 25 though 48 months of
bargaining unit seniority, and then the 0 through 24 months of bargaining unit
seniority. The employee with the highest performance ranking based on the combined
average score of three (3) monthly performance evaluations within their seniority
grouping will be awarded the first choice of shifts/schedules followed by the second
highest performance ranking until all employees have bid. All employees in the 121 and
over work group will select their shift/schedules before advancing to the 49 through
120 months work group and so on.
	 
	 	2)	 	In the ninety (90) days prior to a shift schedule bid there shall be three (3)
individual job performance evaluations, one (1) per month, and a minimum of two (2) job
performance evaluations must be completed and reviewed with each employee within that
work group/sub group for that ninety (90) day period.
	 
	 	3)	 	In the case of an employee who is absent from work due to FMLA, Worker’s
Compensation, or any approved leave, that period of time away from the job will not be
included as part of the shift bidding process. If this time exceeds forty (40) working
days and in the event a minimum of two (2) individual performance evaluations have not
been conducted within the ninety (90) days prior to the shift schedule bid, that
employee will be ranked by seniority only (i.e., an employee that is ranked #4 by
seniority only would be awarded a shift/schedule in the #4 slot).

	E.	 	Where call monitoring and coaching are included in the performance matrix for a work
group/subgroup each employee must have a minimum of two (2) monitoring sessions for the month
which will be averaged to determine the final score. If this does not occur for all employees
within that work group/subgroup, then all employees within that work group/subgroup will
receive a one hundred percent (100%) rating for that job performance category for that month.
It is recognized that call monitoring is a subjective process. In the event that the Company
and the Union agree that inconsistencies in the evaluations of the call monitoring sessions
are documented and proven, then all employees within that work group/subgroup will receive an
one hundred percent (100%)
rating for that job performance category for that month, or the following month, depending
upon the time frame the error was detected and recognized.

	F.	 	It is recognized that each work group may require a unique matrix of performance measures.
These performance measures will be established by the department Manager prior to utilizing as
a tool for shift bidding.

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	G.	 	As business needs change or with processes or system enhancements, the performance sales
goals (budget based) and performance standards can be adjusted quarterly by the department
Manager and will be provided to the Union Business Manager or designee. Changes will be made
available with at least five (5) business days notice to all affected employees.

	H.	 	All work groups/subgroups will be appraised of their performance matrix/goals and/or changes
with at least five (5) business days notice prior to the affected month that said goals will
be implemented. If performance matrix/goals are not provided at least five (5) business days
in advance, that month will not be included as part of the shift bidding process.

	I.	 	The Company and Union agree to meet to discuss issues which may arise in the application of
the above provisions.

6.7 System Engineers

The Company and the Union agree that all work performed by employees working in System Engineer
classifications shall be covered by the terms and conditions of the Agreement except as
specifically provided for in this Article.

The Company and the Union have agreed to contractual provisions that will provide objective
guidelines for determining fair and appropriate pay and benefits that motivate and recognize
employee commitment and initiative. Both parties agree that from time to time they may need to meet
and confer on application and administration of these provisions and have agreed to use due
diligence, including the concept of interest-based bargaining as a means to resolve disputes. If
this fails, the grievance and arbitration procedure defined in Article IV of the Agreement will be
utilized for resolution.

A. Work Out of Classification

	 	1)	 	At a minimum when a System Engineer Foreman is away for more than one (1)
workday an acting System Engineer Foreman will be assigned and the employee’s pay will
be adjusted to entry for the System Engineer Foreman’s pay range or five percent (5%)
above the employee’s regular rate of pay, whichever is greater.
	 
	 	2)	 	In the event a System Engineer is temporarily assigned to a management position
the employee’s pay will be adjusted to entry for the System Engineer Foreman’s pay
range or 5% above the employee’s regular rate of pay, whichever is greater.
	 
	 	3)	 	On-the-job training is essential to employee development in the System Engineer
classification and as such employees may be assigned to perform higher-level work in a
training capacity within the System Engineer classification without pay for out of
classification.

	B.	 	Workweek, Workday, Schedules

	 	1)	 	Salaried Employees
	 
	 	 	 	The provisions of Article IX shall not apply to salaried employees, System Engineers
I, II, and System Engineer Foremen.

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	 	a.	 	Salaried employees are paid a salary to fulfill assigned
responsibilities for the Company using flexible starting and quitting times.
As such, up to 20% of the System Engineer workforce may be required to work
non-consecutive days; workdays and workweeks can and likely will vary based on
Company needs. While the standard workweek is typically forty (40) hours,
employees occasionally should expect workdays in excess of eight (8) hours and
workweeks in excess of forty (40) hours. The Company may identify “core
business times” during which employees may be required to be present. It is
not intended nor anticipated that employees would routinely work extended
workdays or workweeks.
	 
	 	b.	 	In the event a salaried employee excessively works extended
workdays or workweeks, the Manager or Foreman will review and as appropriate
adjust future workload, schedule, and performance requirements, and/or
incentive payments to recognize any additional contributions.
	 
	 	c.	 	When business needs require work outside an employee’s regular
shift it will be scheduled by the Company. Work performed contiguous to the
employee’s normal workday is expected for salaried employees without additional
compensation. The Company will spread extended work across all qualified
salaried employees.
	 
	 	d.	 	Salaried employees scheduled by the Company to work beyond the
normal workday or work week to cover maintenance window(s) between one shift
ending and the next shift starting will be allowed to leave early or report to
work later as workload and performance requirements permit or receive a single
fixed payment of $75.00 dollars as approved by the Manager. If maintenance
window(s) are scheduled by the Company on the employee’s regular day off, the
employee will receive a single fixed payment of $75.00.
The Company and the Union will review this provision as required to address
compensation issues.

C. Wage Rates

	 	1)	 	Salaried Employees — The provisions of Article X and of the Agreement
shall not apply to salaried employees, System Engineers I, II, and System Engineer
Foremen.
	 
	 	 	 	Employees in salaried job classifications shall be paid a salary within the pay
range for their job class. Pay ranges include entry, target, and maximum salaries.
Individual employee salaries are established by objectively evaluating the
individual’s skills and qualifications relative to the job description, e.g., an
employee meeting the minimum qualifications but holding none of the preferred
qualifications would be compensated at or near entry range for the job class. An
employee would not normally be paid over target for the range unless the employee
consistently performs above the targets established in the employee’s individual
performance objectives.

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	 	2)	 	Salary Range Adjustment — Salaried System Engineer and System Engineer
Foreman pay ranges will be adjusted using the same calculation as set forth in Appendix
I of the Agreement.
	 
	 	3)	 	Pay Incentives — Employees will be eligible for pay adjustments when
the employee has achieved performance objectives during the performance period as
follows:

	 	a.	 	Annual pay adjustments are based on Company and employee
performance. Employee performance will be assessed based upon an evaluation of
individual employee performance as documented in the Annual Performance Review
for the performance period. Any pay adjustment will be paid within the first
month of the second quarter following the performance period so long as the
individual is still an ACS salaried employee.
	 
	 	b.	 	Performance-Based Incentive — Performance-based incentive
payments are based on individual performance and will be awarded for successful
achievement of performance objectives as defined in the Performance-based
Incentive Worksheet for the employee’s anniversary period. Any performance pay
will be paid within the first month of the second quarter following the end of
the performance period.
	 
	 	c.	 	Performance Period — Effective February 28 2010, the
Performance Period is January 1 through December 31 of each year.
Performance-based incentives for 2010 will be prorated for transition to the
calendar year performance period. If an employee is not a salaried employee
the entire Performance Period the performance objectives will be adjusted and
any incentive payments pro-rated.
	 
	 	d.	 	Performance Objectives — The Foreman and Manager will establish
performance objectives relevant to the duties and qualifications defined in the
System Engineer job description. These performance objectives shall be
measurable targets and goals that are objective, reasonable, and are clearly
understood by the employee.

	 	i.	 	Performance objectives will be documented in
the employee’s Annual Performance Review and the Performance-based
Incentive Worksheet at the start of the applicable performance period.
	 
	 	ii.	 	The Annual Performance Review process shall
serve to review the employee’s performance in the previous year and
establish performance objectives for the next year.

D. Pension Contribution

	 	 	The Company will make pension contributions for salaried employees of 173.33 hours per month
for any month in which the employee receives pay.

E. Scheduling of FTO

	 	 	Salaried employees are expected to request prior approval for FTO and when required by the
Company adjust FTO plans to ensure duties and performance standards are

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	 	 	successfully
completed. Management will work cooperatively to reschedule an employee’s vacation plans
when required to accommodate individual performance or other operational requirements.

F. System Engineer Classification

	 	 	Systems Engineers working side-by-side with Network Technicians shall be paid on an
hourly, not salaried, basis and be covered by this Agreement, except as follows:

	 	1)	 	System Engineer classification will have a separate shift and vacation schedule
from the rest of their work group. As skills are cross-trained within work group
classifications, schedules may merge with other Network Technician groups.
	 
	 	2)	 	Overtime and call-out lists for work groups where a Systems Engineer or a
Network Engineer work side-by-side will have work assigned according to the skills
required to complete the work in seniority order.

6.8 Work Out of Classification 

The Company may assign employees to perform work out of their regular classifications.

	A.	 	An employee who is assigned to perform the work of a higher rated classification or level
shall be paid the wage rate of the next highest step in the classification and level to which
assigned, for all time worked at the higher rate computed to the nearest quarter hour.

	B.	 	An employee who is working in a higher rated classification shall be granted a step increase
after working the required hours set forth in Appendix I. If the employee is subsequently
awarded a position in that classification, credit toward step increases shall be given for the
total hours worked in the classification.

	C.	 	Assignment of an employee to a higher rated classification or level without an increase in
pay shall be limited to bona fide training situations.

	D.	 	An employee will receive acting pay for wages only. Pension contribution will not be
changed.

	E.	 	In order to meet the needs of service, it is agreed and understood that, in the absence of an
employee’s regular Foreman, an employee will be designated by the Company to perform all
duties and will be paid the
wage as appropriate for hours worked; except as provided in Section 9.4, Alternate Workweek.

	 	1)	 	Absence is defined when either the Foreman is: a) on leave; b) in training; c)
away from their normal work site(s) for more than two (2) hours.
	 
	 	2)	 	Acting Lead/Foremen must meet the minimum qualifications of the position,
except for any prior leadership or supervisory requirement(s).

	F.	 	An acting assignment shall be offered to regular employees first. Temporary employees will
be considered if all regular employees decline the assignment.

	G.	 	NECA Temporary employees who act in a higher classification shall receive wage rates set
forth in the appropriate NECA Inside/Outside Agreement wage rate schedules.

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	H.	 	An employee’s current job function may be required to be performed while performing job
functions of a higher represented classification, e.g., special projects or unusual work
assignments.

	I.	 	By mutual agreement, the parties recognize that there are legitimate business reasons for
long term acting assignments that do not circumvent job bidding and posting. The parties also
recognize long term acting assignments, if excessive can eventually circumvent job bidding and
posting. For this reason, long term acting assignments will be limited to ninety (90)
calendar days, and after ninety (90) days the position will be posted and filled.

	J.	 	Regular employees temporarily assigned to management positions shall have their hourly wage
rate increased by no less than one dollar ($1.00) per hour for hours worked in such position.

	K.	 	An employee who is assigned to work out of classification in a lower rated classification
shall be paid at the employee’s current wage rate.

	L.	 	Employees may be assigned to temporary jobs in any classification or for cross training
provided the employee signifies an interest

	M.	 	This Section is not to be utilized for the purpose of moving non-journeyman to journeyman
positions.

	N.	 	A differential of two dollars ($2.00) per hour will be paid to Business Support Specialists
II for time spent reconciling and closing work orders. The differential will be paid on an
hourly basis. When more than six (6) hours a day are dedicated to such activities then the
premium rate will be paid for the full day.

	O.	 	Employees may be assigned “incidental” tasks outside their normal duties or classification,
so long as these tasks are related to their assigned project and are within the employee’s
abilities. The performance of such incidental tasks does not constitute work out of
classification.

	P.	 	Foreman may reassign Journeyman to other Work Groups for a period up to six (6) consecutive
months per employee. Thereafter, the position shall be bid. The terms of this Section shall
not be used to circumvent the hiring process.

	Q.	 	No employee will be disciplined for performance deficiencies without being properly trained.

6.9 No Layoff Clause

There shall be no layoff during the term of this Agreement of IBEW represented ACS employees in
employment on or before March 6, 2005, without the concurrence of the Union.

It is understood however, that a Company employee who declines a transfer opportunity per Section
6.10, shall waive the no layoff protection.

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6.10 Layoff Procedure

In the event certain bargaining unit positions are targeted for transfer or layoff, the parties
will attempt to reassign employees to other job classifications prior to utilizing the layoff and
recall procedure.

	A.	 	These reassignments will be through the Classification Committee and may be outside the
employees’ normal duties, provided they meet the minimum qualifications of the new assignment.
Such reassignments will be offered by seniority within affected classifications. Reassigned
employees not electing to accept reassignment may pursue participation in the job-share
program. Layoff of employees not reassigned nor participating in job-share shall be in
accordance with the provisions of this Article.

	B.	 	Seniority shall be used to determine the order of layoffs. The least senior employee in a
position targeted for layoff shall be the first to be laid off.

	C.	 	The Company will give two (2) weeks written notice of layoff and provide a layoff allowance
as follows:

	 	 	 
	Months of Continuous Service	 	Layoff Allowance
	Less than 6 months

	 	0 Hours
	6 months but less than 25 months

	 	80 Hours
	25 months but less than 37 months

	 	100 Hours
	37 months but less than 60 months

	 	120 Hours
	60 months or over

	 	160 Hours

	D.	 	The employee to be affected may, at the employee’s own discretion, replace another employee
with less seniority in the same or lower classification within the Company, provided that the
employee meets the minimum qualifications for that position.

	E.	 	The Classification Committee shall determine the qualifications of employees. In the event
the Classification Committee is unable to reach a decision within three (3) working days, an
impartial tiebreaker will be selected by the appropriate Division Vice President and the Union
Business Manager or designees to make the final decision as to an employee’s qualifications.

	F.	 	The employee may seek job-share in lieu of a layoff as provided in Section 5.10 of this
Agreement. However, if no job-share opportunity can be identified within the notice period
given to the employee the employee shall be subject to layoff as scheduled.

	G.	 	A laid-off employee shall have recall rights for two (2) years after layoff. The Union will
be advised of the recall and will have three (3) business days to send notification of recall
to the employee. If the employee does not return within fourteen (14) calendar days of when
notification was sent, or make alternative arrangements satisfactory to the Company, the
Company will have fulfilled its obligations to the employee in regards to recall from layoff.

	H.	 	A recalled employee maintains his service and seniority date, as well as rate of pay.

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6.11 Exit Incentive Program

An exit incentive program may be offered to bargaining unit employees prior to utilizing the layoff
procedure, as outlined in Section 6.10.

	A.	 	An exit incentive program may be offered to selected areas, work groups and/or selected
classifications of the workforce as the Company deems appropriate as a means to assist in
regulating the size of the work force in such areas and to assist employees in the transition.
The exit incentive program shall:

	 	1)	 	equal payment to the employee in an amount of two (2) weeks wages multiplied by
the number of years of service that the employee has with the Company, or
	 
	 	2)	 	other exit incentive programs mutually agreed to by the parties.

	B.	 	Employees participating in the exit incentive program may either accept payment in a one-time
sum or as bi-weekly payments for the amount of time that equates to the cash-out dollar
amount. Employees selecting the biweekly pay-out will not accrue service time nor be eligible
for benefits or leave accrual during this period. None of these options shall increase the
Company’s expense beyond that of the offer in the previous paragraph.

6.12 Moving Expenses

	A.	 	Employees transferred at the employee’s own request shall be responsible for any moving
expenses.

	B.	 	Regular employees transferred at the direction of the Company shall have reasonable family
transportation and moving expenses paid by the Company, and will be allowed one (1) paid day
of absence plus any additional time consumed in travel.
	 
	 	 	This is not to be interpreted as guaranteeing the employee a gross cash payment in the fair
market value of assistance described herein. In other words, if an employee does not
require assistance with a specific provision of this Article, the Company is not bound to
pay the employee cash in lieu of using the particular relocation assistance.

	 	1)	 	Relocation Provisions. All employees who receive relocation assistance
from the Company are required to sign a Relocation Expenses Agreement in which the
employee agrees to reimburse the Company if the employee voluntarily resigns before
completing twelve (12) consecutive months at the new work location. The amount the
employee is required to repay will be reduced by one-twelfth (1/12) of the whole for
each full month the employee works at the new location.
	 
	 	 	 	The Relocation Administrator is responsible for assisting the employee in relocation
matters and must approve all relocation arrangements in advance. Failure to do so
may result in the employee bearing the unapproved expense.

	 	a.	 	Reasonable family transportation expenses are defined
as relocation travel expenses for employee, spouse, and legal dependents, not
to exceed the cost of one-way coach air fare, as determined by the Relocation
Coordinator.

- 33 -

 

	 	b.	 	Reasonable family moving expenses are defined as
transportation of one automobile not to exceed $1,500 and transportation of
household goods and personal effects up to a maximum of 15,000 pounds.
	 
	 	•	 	Insurance will be as authorized per the specific contract between ACS and
the carrier.
	 
	 	•	 	Temporary storage at the point of pick-up or delivery until the employee
occupies permanent residence, up to a maximum of thirty (30) days. Charges in
excess of thirty (30) days will be borne by employee.
	 
	 	•	 	Delivery charges from storage will be paid by the company.
	 
	 	•	 	Items not covered: planes, boats, trains, trailers, campers, motor homes,
large home workshops, lawn or garden tractors, firewood, large radio/TV
antennas, extensive laboratory equipment, hazardous materials, bricks, lumber,
or other items requiring special handling charges.
	 
	 	c.	 	One (1) paid day of absence plus any additional time
consumed in travel. One (1) paid day of absence is defined as eight (8)
hours paid at straight time. This is intended to be used for taking care of
matters associated with the move, at either end. It is not required to be used
in one (1) eight (8) hour block. It will not exceed eight (8) hours regardless
of shift or alternate work schedule assigned.
	 
	 	 	 	Additional time consumed in travel is defined as the actual time,
during normal working hours, that the employee is engaged in the ultimate
transit
from the former location to the new location. In most cases, because the
move will be made by air, this time will not exceed one (1) shift.
Employees who elect to drive will be allowed a reasonable time for the trip.
While travel time outside normal work hours or days is not compensable, the
Company will not compel members to travel during this time merely to save
labor expenses.
	 
	 	d.	 	In addition to “all reasonable family transportation and moving
expenses” required by the CBA, ACS will pay for either one (1) house hunting
trip or temporary living assistance as defined below:
	 
	 	•	 	House Hunting: The Company will provide one (1) house hunting trip
for the employee and one (1) dependent, up to five (5) days, consisting of
airfare or mileage at the current IRS reimbursement rate, Company arranged
lodging, meal per diem at $50 per employee, $35 per adult dependent, or $15
per child under age 13. Rental car expenses will also be covered; or
	 
	 	•	 	Temporary Living Assistance: The Company will provide temporary
living assistance at the new location for the employee up to thirty (30) days.
Temporary living assistance at the new or old location is also available for
dependents, up to fourteen (14) days. Meal per diem at $28 per employee and
adult dependent and $15 per child under age 13.

- 34 -

 

	 	e.	 	The provisions of this Article apply to relocations in which
the employee’s primary work location is moved by more than fifty (50) road
miles by the most efficient route.

	C.	 	A regular employee that has moved to another work location because the employee’s job will be
eliminated or because the employee has been displaced by an employee with greater seniority
will have moving expenses paid by the Company, but not to exceed $1,000.

6.13 Use of Company’s Time, Equipment or Material 

Employees shall not use the Company’s time, equipment, or material for other purposes than those
authorized, nor shall they be careless or abusive of the Company’s material and equipment.

6.14 Appropriate Dress and Language Code 

The Company and the Union agree to a dress code which will encourage neat and professional
appearing employees whenever possible, and to promote the use of verbal language which is
appropriate and acceptable. Employees are expected to treat all persons with respect, and to
recognize and value cultural diversity.

Dress code will vary as required to meet the particular work situation of the employee. Guidelines
may be established that reflect the requirements of the department and/or employee work situation.
General clothing guidelines for all employees shall:

	 	1)	 	Be appropriate to the job being performed;
	 
	 	2)	 	Not present a safety hazard or a risk to the performance of the employee;
	 
	 	3)	 	Not be distracting to customers or fellow employees, and;
	 
	 	4)	 	Whenever possible, clothing should be reflective of the professional nature of
the Company’s business.

6.15 Compliance with Company Work Rules 

Any employee of the Company failing to comply with the written rules, Company policies, department
regulations, safety practices, and other necessary regulations in effect, shall be subject to
disciplinary action. All such rules and regulations governing working rules in effect shall be
explained to the employee, current and available for the guidance of all concerned.

6.16 Statutory Permits, Certificates and Licenses 

For any permits, licenses or safety certificates required by a statute or an employee job
description, the Company shall be responsible to provide training and fees associated with keeping
the permit, license or safety certificate current. A typical example is the Commercial Driver’s
License, but not the standard Driver’s License.

6.17 Drug and Alcohol Testing and Reporting 

The Company is committed to providing a drug and alcohol free work environment for all employees
and ensuring compliance with applicable State and Federal drug and alcohol testing and reporting
laws and regulations. In accordance with this commitment the Company:

- 35 -

 

	A.	 	Conducts drug and alcohol testing to include, but not limited to: post-accident; reasonable
suspicion; follow-up; and random for employees covered under the Federal Department of
Transportation.

	B.	 	The Company and the IBEW have mutually agreed to Drug and Alcohol Testing and Reporting
Policies & Procedures (Policies) dated November 16, 2008, or as amended per this Section. The
Policies are on file with the Company and the Union.

	C.	 	Changes or modifications to the Policies that affect terms and conditions of represented
employees will be negotiated by the parties and subject to the grievance and arbitration
process.

	D.	 	Changes or modifications to the policies that do not affect the terms and conditions of
represented employees, such as a change of the collection vendor, will be provided to the
Union in writing prior to the change date.

	E.	 	The Company will inform the Union of any changes in the Policies required under State or
Federal law or regulation. The Company will make every effort to provide thirty (30) days
written notice of the change prior to implementation.

	F.	 	An employee who is found to have violated the Policies will be subject to discipline, up to
and including dismissal.

	6.18	 	Classification Families 

The intent in grouping jobs into classification families (Families) includes promotion of employee
growth and job satisfaction. Classification titles have been modernized to be more relevant to the
market/industry. To the extent possible, related jobs have been grouped together in an effort to
provide employees greater choice in pursuing career path opportunities. However, family groupings
do not limit career path opportunities; employees may bid jobs in any Family.

Employees will not be required to perform the work of other classifications within their Family,
nor will they be required to perform the work of a specialty within their classification, except in
accordance with Section 6.8, Work Out of Classification. For example, an employee in the Payroll
specialty will not be assigned to perform the work of the Collections specialty; and employees in
the I&R specialty will not be required to perform the work in the Splicing specialty. Time spent
working in a higher classification will be paid at the rate of the higher classification, except
for bona fide training situations pursuant to Section 6.8. Employees interested in expanding their
skills so they can perform in other classifications will be encouraged to do so.

The grouping of jobs into classification families does not change any specific classification or
specialty within a classification. Any proposed changes will be subject to the Classification
Committee process in accordance with Section 5.7.

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ARTICLE VII

FOREMAN

	7.1	 	Foreman

	A.	 	“Foreman” in this Agreement refers to any of the following positions: General Foreman,
Foreman, or Lead. A Foreman is a member of the Bargaining Unit who may direct the work and
supervise other employees as assigned. Foremen perform the work of their classification, but
only to the extent that such work does not interfere with safety or assigned supervisory
duties. Any job classification may report to a Foreman.

	B.	 	The Foreman shall give instructions to the workforce. Foremen shall be assigned supervisory
duties as determined by the Company.

	 	1)	 	Schedule A. The Company may assign a Foreman to direct the work of up
to fifteen (15) employees in a single location, or up to twelve (12) employees
Statewide; unless mutually agreed otherwise. The Company will assign a Foreman for
work groups of at least eight (8) employees.
	 
	 	2)	 	Schedule B. The Company may assign a Foreman to direct the work of up
to eighteen (18) employees in a single location, or up to fifteen (15) employees
Statewide; unless mutually agreed otherwise. The Company will assign a Foreman for
work groups of at least twelve (12) employees.
	 
	 	3)	 	If a work group is created that combines a Schedule A employee(s) with
employees in Schedule B, this work group will have Foremen to employee ratios
consistent with 7.1 (B) 1 above.
	 
	 	4)	 	The Company will provide the Union with not less than sixty (60) days notice of
a decision to consolidate work groups reporting to a Foreman. Work group consolidation
is intended to increase the span of control of a Foreman, not to diminish the Foreman
role or to circumvent the Agreement. If a Foreman will be displaced, the remaining
position(s) will be posted for bid only for the incumbents affected by the
consolidation. In these situations only, a bid committee consisting of one (1) union
representative and one (1) management representative will award the position.
Incumbents displaced will have their Foreman wages grandfathered, and shall receive all
applicable wage increases. This grandfathered wage rate will remain in effect through
11:59 pm on December 31, 2012, and thereafter shall be frozen until the negotiated rate
meets or exceeds their frozen rate.

	C.	 	In this Agreement, “General Foremen” refers to both the General Foremen and General Lead
positions. The Company may, when and where it deems appropriate, create a General Foreman
position. A General Foreman may be required to supervise the work and manage the performance
of other Foremen or Leads. A General Foreman who is performing duties commonly performed by
non-represented managers and supervisors shall be held to the same standards of performance as
their non-represented counterparts.

	 	1)	 	As of the Effective Date of this Agreement, compensation for General Foremen
positions shall be the hourly rate as identified in Appendix I.
	 
	 	2)	 	General Foremen will receive the pension contribution rate of the top
classification/level which regularly reports to them.

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	 	3)	 	General Foremen will be paid 118% of the top paid non-Foreman classification
which regularly reports to them (or a salaried equivalent).
	 
	 	4)	 	An acting General Foreman shall be paid 118% of the top wage rate of the
applicable classification, with applicable overtime pay and premium pay in accordance
with the provisions of this Agreement.
	 
	 	5)	 	As the duties of the General Foreman position are primarily management and
supervisory in nature, the Union agrees to meet with the Company, upon request, to
discuss a new compensation program for General Foreman comprised of a base salary and
incentive pay. Should the parties reach agreement on such a new compensation
arrangement, these positions shall no longer be eligible for overtime pay.
	 
	 	6)	 	There shall not be more than three (3) General Foreman positions Statewide.
	 
	 	7)	 	Foreman shall be compensated as follows:

	 	a.	 	As of February 28, 2010, the wage rates of incumbent Foremen
will be grandfathered and they shall receive all applicable wage increases
through the term of the Agreement. This grandfathered wage rate will remain in
effect through 11:59 pm on December 31, 2012, and shall thereafter be frozen.
	 
	 	b.	 	If a Foreman position becomes available and there are qualified
Foremen with grandfathered pay (under Section 7.1(b)), the position shall first
be posted for bid among those grandfathered Foremen. A grandfathered Foreman
need not bid on a vacant position in order to remain eligible for
grandfathering. However, if no grandfathered Foreman bids, management may
appoint a qualified, grandfathered Foreman to the vacancy. If there is more
than one qualified, grandfathered Foreman available, the Company will appoint
the least senior. If a qualified, grandfathered Foreman is offered and
declines such an appointment, the employee shall no longer be eligible for
grandfathered wages. Thereafter, the employee shall be paid at the negotiated
rate for the employee’s current classification.
	 
	 	c.	 	Wage rates for new hires or any employee who voluntarily bids
into a Foremen position (except under Section 7.1 (C) 7.b above) will be set as
follows:

	 	i.	 	Foremen will be paid at an hourly rate
equivalent to 112.5% of the top paid classification/level which
regularly reports to them.
	 
	 	ii.	 	Foremen who supervise salaried employees will
be paid at an hourly rate equivalent to 112.5% of the target salary for
the top classification/level which regularly reports to them.
	 
	 	iii.	 	Foremen will receive the pension contribution
rate of the top classification/level which regularly reports to them.

	D.	 	Nothing in this Agreement shall be used to remove a Foreman from the Bargaining Unit.

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7.2 Line Foreman 

When two (2) to four (4) employees compose a Line Crew, one (1) qualified Field Technician shall be
the Foreman. When working conditions require, a Line Crew may be increased up to six (6) qualified
employees without requiring an additional Foreman. No Line Crew Foreman shall at the same time
perform work or supervise work on more than one (1) Line Crew.

7.3 Project Foreman

The Company may assign a Project Foreman to manage the work associated with a specific project for
up to three (3) consecutive months. With Union concurrence, the assignment may be extended. A
Project Foreman shall work under the guidance of a regular Foreman, General Foreman or
non-represented Manager or Supervisor, and shall be assigned to organize and direct the work and
requirements associated with the project. A Project Foreman will not have disciplinary authority
for the project team. Project Foremen shall be compensated at 108% of the top step of the base
rate of pay.

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ARTICLE VIII

SAFETY

8.1 Safety

The Company, Union and employees have a common interest in ensuring work is performed in a safe
manner. The Company and the Union will cooperate in designing and carrying out a safety program
for all employees. It is recognized that the Company has the exclusive responsibility to provide a
safe and healthful workplace and conditions of employment.

8.2 Safety Standards

All work shall be executed in a safe and proper manner.

	A.	 	The United States Government Publications, “Electrical Safety Code” and “Safety Rules for the
Installation and Maintenance of Electrical Supply and Communication Lines,” the “National
Electric Code,” and the “Alaska State Safety Code” and any other applicable safety codes which
have been adopted by the State of Alaska will serve as minimum standards to be met in the
assignment and performance of work by employees.

	B.	 	Employees watching wire reels or constructing poles leads where conductors are pulled in or
where they may come in contact with any other conductors carrying four hundred forty (440)
volts or greater shall be journeyman work with the assistance and under the supervision of a
foreman. There shall be a grounded metal sheave block between the reel and the first line
support.

8.3 Safety Devices

The Company shall furnish such safety devices and first aid kits as may be needed for the safe and
proper emergency medical treatment of the employees. Hard hats and liners, gloves, rubber coats
and boots and all other necessary equipment for the protection of employees working on life
threatening equipment are to be furnished by the Company and shall be used by the employees at all
appropriate times.

8.4 Manhole Safety

When any work is being done in a manhole, there shall be an employee stationed at the street level
as a safety measure when working conditions warrant.

8.5 Safety/Training Meetings

The Company will provide ongoing regular safety education to all employees. All employees will
receive up to one (1) hour per month of safety training above and beyond any safety training
required by law. It is understood that there are greater safety risks inherent in the performance
of work by employees in certain classifications. Employees working in such classifications will
receive additional safety training. This additional safety training will be delivered, i.e., at
safety meetings and other venues.

The foreman or designee is responsible for delivery of the safety training and employees will
record safety training time on their time card.

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8.6 Safety Committee

A Safety Committee composed of four (4) management and four (4) Union representatives (one (1)
management and one (1) Union from each of the four (4) Districts) may inspect all tools and
equipment, review safety programs and safety training, investigate accidents, and have the right to
recommend corrective measures regarding unsafe equipment practices or acts. The four (4) Union
representatives will be appointed by the Chief Shop Steward or Business Representative.

8.7 Safety Responsibilities

It shall not be a violation of this Agreement for a bargaining unit employee to refuse to work
under unsafe circumstances which could pose an immediate threat of serious personal bodily injury
or the threat of significant property damage. Any employee believing that such a situation exists
shall immediately notify the appropriate foreman.

8.8 Climbing Safety During Long Periods of Extreme Cold 

During extreme cold (i.e. 25° below zero chill factor) an extra employee qualified to climb
may be assigned to accompany the employee who has been assigned to climb. During this time period,
employees shall be allowed to schedule one-half (1/2) hour lunches.

8.9 Employee Safety Performance Targets and Measures 

The Company and Union agree the safety and health of ACS employees and the communities in which
they work and the protection of Company assets is of paramount importance. As such, the Company
and Union expect all employees to comply with Company policies; federal, state, and local
requirements; and to exercise common sense and good judgment to prevent accidents — vehicle,
personal injury, property damage, etc. Should an accident occur, we expect employees to cooperate
with supervisors, risk management personnel, and the Company’s insurance carrier to minimize the
impact of accidents to the health of employees, the public and the community and ACS’ financial
well-being.

A. Employee Safety Performance Targets and Measures

	 	 	Meeting these safety and risk management expectations is an essential job function for every
ACS employee. As such, safety will be an important measure of employees’ and supervisors’
performance. The Company will measure results considering the number of preventable
accidents, severity of any accidents, and the employee’s compliance with Company policies,
procedures and practices, and federal, state, and local statutes and regulations. Target
performance is:

	 	•	 	Zero preventable accidents (“preventable accident” shall mean any occurrences that
result in property damage and/or personal injury, regardless of who was injured, what
property was damaged, to what extent, or where it occurred, in which the employee
failed to exercise reasonable precaution to prevent the occurrence);
	 
	 	•	 	Full cooperation with Company and carrier safety and risk management personnel to
minimize the impact to employees’, the community’s, and the Company’s well-
being should an accident occur; and
	 
	 	•	 	Full compliance with Company policies, procedures, and practices and government
statutes and regulations. This information is available on the

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	 	 	 	Corporate Website or
upon request from Human Resources.
	 
	 	 	 	The Company’s safety expectations are documented in policies and procedures, as well
as federal, state, and local government regulations. Those in effect are documented
below, but as the regulatory environment and the Company’s safety programs evolve,
it is understood that revisions designed to stay abreast of regulatory requirements
or those arising from operational need will continue to be encompassed by this
contract provision. Should the Company choose to make revisions to its safety
policies and procedures that would have an impact on the terms and conditions of
represented employees’ employment, the Company will review those changes with the
Union before implementation.

	B.	 	Guideline Consequences of Employee Failing to Meet Safety Performance Targets

	 	 	Failure to achieve target performance may result in disciplinary or other corrective action.
The relevant Safety Committee, as defined in Section 8.6 of the CBA shall analyze each
incident and determine whether the accident was preventable, the scope and severity of any
safety violations committed by ACS employees, and will make a recommendation for corrective
action to prevent reoccurrences. Company management and the Union will consider relevant
factors to determine the appropriate discipline, if any, for each employee involved in the
accident, and will follow up to ensure appropriate corrective action is taken to prevent
reoccurrences of like accidents. Factors the Company and Union will assess to determine
whether discipline is appropriate and at what level will include:

	 	•	 	Number of years of Company service
	 
	 	•	 	Number of years without an accident
	 
	 	•	 	Number of previous accidents
	 
	 	•	 	Appropriate use of safety equipment
	 
	 	•	 	Potential liability to the Company
	 
	 	•	 	Whether cited for a violation of law unless overturned
	 
	 	•	 	Safe operation of Company vehicles, equipment and machinery
	 
	 	•	 	Environmental conditions such as weather and road conditions
	 
	 	•	 	If at fault, degree of fault
	 
	 	•	 	Extent of injury to employee and/or damage to Company property
	 
	 	•	 	Extent of injury to others and/or damage to property
	 
	 	•	 	Driving record
	 
	 	•	 	Supervisor’s accountability for specialized training, skills and compliance

	 	 	The Company and Union will assess the seriousness and context of each incident to determine
the appropriate action. For example, if an employee’s first incident was a preventable
accident that resulted in injury and was the result of an employee’s reckless disregard of
Company policy and the law, termination may be appropriate. Similarly, an employee with an
impeccable safety record for five years who has an isolated incident that does not result in
injuries or property damage may warrant no discipline.

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8.10 Inclement Weather

Regular employees who report for work on a scheduled work day and who, because of inclement weather
or other similar causes are unable to work, shall receive pay for the full day when sent home by
the Company. The employee may be assigned first aid, safety or other instruction duties prior to
being released. If it becomes necessary to work during an adverse situation, the foreman will
evaluate each situation to ensure the safety of the employee in regards to the work to be
performed.

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ARTICLE IX

WORK WEEK AND SCHEDULES

9.1 Workweek

The standard workweek shall begin Sunday, 12:00 a.m. midnight, and end Saturday, 11:59 pm, the same
as a calendar week, and shall consist of five (5) consecutive days of which one (1) day worked may
be Saturday or Sunday except as otherwise provided in this Agreement or mutually agreed by the
Company and Union.

9.2 Workday

The standard workday shall be eight (8) consecutive hours, excluding a lunch break, as scheduled by
the Company between the hours of 7:00 a.m. and 9:00 p.m., except as otherwise provided for in this
Agreement or mutually agreed between the Company and the Union. Employees will start and end their
shifts at their assigned work location unless in travel status.

A. Lunches

	 	1)	 	Lunches will be paid or unpaid in accordance with the work rules for the
employees’ work group and as scheduled by management.
	 
	 	2)	 	The Employer will schedule lunch periods. Lunches will be unpaid unless an
employee cannot leave the work site or workstation. The Company will make every
reasonable effort to accommodate one-half (1/2) or one (1) hour lunches as requested by
the employee.
	 
	 	3)	 	If an employee is unable to leave the work site or workstation they shall be
paid for the lunch period and any alarm or work required will be accomplished
regardless of when it occurs during the shift.
	 
	 	4)	 	Management may schedule staggered lunch hours to meet the needs of service.
	 
	 	5)	 	Occasional Lunch Changes — At the request of the employee and with
prior approval of the Foreman, an employee may request to occasionally take an unpaid
lunch period for as short as thirty (30) minutes or as long as ninety (90) minutes.
Additionally, the employee may change the time of day the lunch break is observed;
provided such changes do not disrupt the business needs of the Company or shorten the
workday.
	 
	 	6)	 	Alternative Regular Lunch schedules — With prior approval of the
Foreman, an employee may take on a regular basis an unpaid lunch period for as long as
ninety (90) minutes for such things as exercise, school activities, dependent care
transportation, etc. Lunch break placement may be at a time other than the midpoint of
the employee’s workday; provided such alternative lunch schedule does not disrupt the
business needs of the Company or shorten the workday.

9.3 Shifts and Schedules

Shifts and schedules will be bid and awarded on a seniority basis approximately every ninety (90)
days.

A. The immediate Foreman shall be responsible for scheduling and posting the schedule.

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	B.	 	Schedules shall be posted at least one (1) week in advance of the workweek. Changes may be
made to an employee’s schedule but in no event will employees be given less than two (2) work
days notice excluding weekends preceding the workweek involved. For any changes not in
accordance with the foregoing, the affected employee will receive time and one-half (11/2X) for
hours worked on the first day of the new schedule.

	C.	 	Foreman shall normally work a five (5) day – eight (8) hour schedule, or such other schedule
as best fits the requirements of the work group; however, alternate schedules may be worked by
a Foreman with management approval.

9.4 Alternate Workweek and Workdays

The Company may establish the following alternate workweeks and workdays to meet the needs of the
business. The Company will post these designated alternate workweek and workday shifts and
schedules in accordance with the procedure set forth in Section 9.3 above. Other alternate
workweeks and workdays may be established by mutual agreement during the term of this Agreement as
business needs arise.

A. Work Rules for Alternate Workweeks or Workdays

	 	 	The Company and the Union recognize the importance of balancing the Company’s staffing needs
with scheduling rules that accommodate employee needs. Accordingly, the following work
rules shall apply to the establishment, implementation and scheduling of all alternate
workweek and workdays.

	 	1)	 	Where it is practical to do so, the Company will seek to fill alternate
workweek and workday shifts on a voluntary basis. Unless otherwise specified below,
the Company will first seek volunteers to work these shifts and then will assign the
least senior qualified employee(s) if no volunteers are available.
	 
	 	2)	 	If more than one schedule type is being offered to a work group, the most
senior qualified employee to volunteer will be selected to work the schedule in
question. If there are no volunteers, the least senior qualified employee will be
required to work the schedule.
	 
	 	3)	 	No employee will be assigned to work 1) non-consecutive days off or 2) both
Saturday of one workweek and Sunday of the following workweek more than twice (2x) a
month without the employee’s consent. If there are no volunteers to cover these
schedules for regular non-consecutive days off or weekend work, then shifts with
non-consecutive days off or both weekend days will be assigned and rotated among the
least senior employees in the Work Group.
	 
	 	4)	 	If the Company elects to place a regular full-time employee on a work schedule
with less than forty (40) hours (i.e. a 3-12s schedule or a shortened Sunday in
Retail Sales & Service), the employee will be paid at straight time for the
non-worked hours necessary to bring the employee’s standard schedule up to forty
(40).
	 
	 	5)	 	Foremen may work a non 5-8s work schedule with prior management approval. If a
Foreman is approved for such a schedule, supervisory coverage for that Foreman’s work
group may be provided by another Foreman in the same or higher classification family.

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	 	6)	 	Employees on any of these work schedules may work without a Foreman for up to
two (2) hours daily.
	 
	 	7)	 	The use of 3-12s and 4-10s over consecutive weekend days will be limited to
those Work groups which are routinely staffed seven (7) days a week (e.g. Retail Sales
and Service, Technical Support, Computer Operators, NOC/Tier II).

	B.	 	Subject to adjustment in accordance with the work rules set forth in A above, the following
Alternate Workweeks and Workdays have been established.

	 	1)	 	Four (4) Day — Ten (10) Hour Workweek (4-10s)

	 	a.	 	The 4-10s work schedule will be worked on any four (4)
consecutive days with three (3) consecutive days off.
	 
	 	b.	 	4-10s work schedules are paid at straight time.

	 	2)	 	Nine (9) day – eighty (80) hour schedule (9-80s) — A 9-80s schedule is
defined as an alternating, two (2) week schedule in which:

	 	a.	 	One week consists of any five (5) consecutive nine (9) hour
workdays, with two (2) days off (Week A).
	 
	 	b.	 	The other week consists of any four (4) consecutive days; three
(3) of which are nine (9) hour workdays and one (1) workday which is an eight
(8) hour day, with three (3) days off (Week B).
	 
	 	c.	 	9-80s work schedules are paid at straight time.

	 	3)	 	Three (3) Day – Twelve (12) Hour Workweek (3-12s)

	 	a.	 	The 3-12s work schedule will be worked on any three (3)
consecutive days, with four (4) consecutive days off.
	 
	 	b.	 	3-12s work schedules are paid at straight time.

	 	4)	 	Seven (7) Day – Twelve (12) Hour Workweek (7-12s)

	 	a.	 	7-12s are voluntary, except when used to cover work performed
in remote communities.
	 
	 	b.	 	On Week A of a 7-12s work schedule an employee works seven (7)
twelve (12) hour days. On Week B of a 7-12s work schedule an employee has
seven (7) scheduled days off.
	 
	 	c.	 	7-12s work schedules are paid at eighty (80) hours of straight
time and four (4) hours of time and one half (1 1/2 X) per pay period.
	 
	 	d.	 	7-12s shift must be worked for an entire pay period.

	 	5)	 	Alternate Five (5) Day – Eight (8) Hour Workweek (5-8s)

	 	a.	 	Up to 10% of the workforce in Retail Sales & Service, Consumer
Sales & Service and Support Services may be scheduled with non-consecutive days
off so long as one of the days off is Saturday or Sunday. The requirement that
one of the days off be Saturday or Sunday may be waved on a voluntary basis.

	 	6)	 	Floater Position:

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	 	 	 	Floater positions are not a shift, but are rather a bid position where an employee
can be assigned schedule changes without the penalties defined in CBA 9.3 (C), and
will receive a pay premium of five percent (5%) for all hours worked.
	 
	 	 	 	The Company may establish floater positions by classification and for any of the
available workweeks between the hours of 7:00 a.m. and 9:00 p.m. Positions shall be
posted for bid identifying the floater requirements of the position. Start times
may be changed if notice is provided before the end of the shift on the preceding
day.

9.5 Five (5) day – Ten (10) Hour Workweek (5-10s)

Where the 5-10s work day schedule is established, the following rules will apply:

	A.	 	The 5-10s work schedule will be worked on a voluntary basis on any five (5) days during the
work week.

	B.	 	Employees working this schedule will be paid straight time for the first eight (8) hours
worked or paid, and time and one-half (11/2 x) for the last two (2) hours worked of each day.

	C.	 	Any employee volunteering to work the 5-10s schedule but unable to work all five days may,
with Foreman approval, work as many ten-hour days as available. For time worked on this
schedule, the employee will be paid at time and one-half (1 1/2 X) for time worked as follows:
(a) the 9th and 10th hours worked in any day, and (b) all hours after
forty (40) straight time hours worked, up to and including the 50th hour.

D. No meal allowance will be paid for OT worked under this temporary schedule.

	E.	 	All 5-10s workdays shall be scheduled to include the employee’s normal workday hours unless
modified by mutual agreement.

	9.6	 	Shift Differential

	A.	 	All employees working a regular eight (8) hour shift which has a starting time outside of the
hours 7:00 a.m. to 12:00 p.m. shall receive a shift differential equal to ten percent (10%) of
their regular hourly rate of pay for hours worked on the evening shift (start time up to 12:00
a.m.) and fifteen percent (15%) of the employee’s regularly hourly rate of pay for hours
worked on the night shift (start time of 12:00 a.m. or later). (Employees
working until 9:00 p.m. may elect to take a 1/2 hour lunch and start the shift at 12:30 p.m.
and shall not receive the shift differential).

	B.	 	For employees working alternate shifts, when the majority of the hours of a shift are within
four p.m. (4:00 p.m.) and twelve a.m. (12:00 a.m.), all hours worked shall be compensated at
the regular rate of pay plus ten percent (10%) shift differential. When the majority of the
hours of a shift are within twelve a.m. (12:00 a.m.) and eight a.m. (8:00 a.m.), all hours
worked shall be compensated at the regular rate plus fifteen percent (15%) shift differential.

9.7 Flex-Time

Flex-time may be worked with the mutual consent of the Company and the Union. This Section shall
not be utilized to shorten the normal workday.

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9.8 Relief
All employees shall have at least eight (8) hours relief between shifts.

9.9 Eight-Hour Break

An employee who has been on duty for four (4) or more hours outside of the employee’s regularly
scheduled shift, shall not report to work the following regularly scheduled shift until the
employee has had a minimum of eight (8) consecutive hours relief.

	A.	 	Any part of the employee’s relief period which falls within the affected employee’s regularly
scheduled shift shall be compensated at the applicable straight time rate of pay. If
employees do not report for work following such eight (8) hours of relief, they will not be
entitled to straight-time pay for those hours of their regularly scheduled shift which were
included in their eight (8) hours of relief.

	B.	 	When required to work by the Company with less than eight (8) consecutive hours relief, the
employee will receive two (2) times the applicable straight time rate for all hours worked
until eight (8) hours of continuous relief is received.

	C.	 	Employees shall have the option to use FTO in lieu of returning to work to complete the
regularly scheduled shift.

9.10 Rest Periods

The Company recognizes two (2) rest periods of fifteen (15) minutes duration including travel time,
one in the first half of a shift and one in the second half of the shift.

9.11 Time Changes

When a change is made to Daylight Savings Time, employees will not receive less time than their
normal shift because of the night tour being reduced by one (1) hour; the Company may, however,
require the employee to work a full eight (8) hour shift. It is also understood that when a change
is made back to Standard Time, those employees required to work beyond their regular shift will be
paid the OT rate.

9.12 Meal Allowances

The Company will pay employees a sixteen dollar ($16.00) meal allowance and provide the time
necessary to consume the meal (up to one half (1/2) hour paid at the straight time rate).
Employees will be entitled to a meal at intervals of four (4) hours under the conditions described
in A and B below, for as long as the employee is required to work. If an employee is required to
return to work during a meal break, except for employees in work areas already provided paid time
to eat their meal, an additional half hour at the straight time rate may be taken as warranted by
the work conditions (i.e. a repair crew working outside in adverse weather conditions).

	A.	 	Contiguous to the Shift — When employees are required to work more than two (2) full
hours after their regular quitting time or four (4) or more full hours prior to but contiguous
with the start of their shift and there is no break in the continuity of work, the Company
shall provide a meal allowance.

	B.	 	Call-Out — When an employee is called out to work four (4) hours outside of their
regular shift, the Company shall provide a meal allowance.

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	C.	 	Where individual employees are assigned a Company vehicle, Company vehicles should be
returned to their assigned location prior to the taking of a meal; however, if the work or job
is to continue, the vehicle may be used during the meal period.

	D.	 	OT assignments on an employee’s first scheduled day off are not eligible for a meal allowance
for the first eight (8) work hours, provided the employee was given twenty-four (24) hours
notice prior to the beginning of the assignment.

	E.	 	When an employee is scheduled to work back to back shifts, two (2) meal allowances shall be
paid and the employee shall be entitled to leave the work area for a half (1/2)-hour paid meal
break at approximately the mid-point of the second eight (8) hour shift, as part of the second
eight (8) hour shift. There shall be no additional time paid to consume the meals.

	F.	 	There shall be no pyramiding of meal allowances or additional time to eat the meal when
working a shift that includes the time necessary to eat.

	G.	 	Employees who are working within their normal service area shall not be eligible for Meal
Allowance pay during that time. Regular service area shall be defined as the geographic area
to which an employee’s assigned crew is regularly responsible. The terminus of the employee’s
trip must also be close enough in distance to their start point that the employee can make the
trip to and from the service area within one (1) scheduled eight (8) hour work day.

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ARTICLE X

WAGE RATES AND PREMIUM PAY

10.1 Wage Rates

Wage rates shall be as set forth in Appendix I of this Agreement.

10.2 Overtime (OT) and Premium Pay

	A.	 	Overtime (“OT”) – Time worked in excess of the daily shift period of eight (8) hours
and/or in excess of the normal workweek of forty (40) hours. OT shall be compensated at one
and one-half (11/2 x) times the applicable straight time rate of pay, computed to the nearest
quarter (1/4) hour; provided, however, that OT shall be compensated at two (2) times the
straight time rate for any hours worked consecutively beyond ten (10) in a day, or fifty (50)
in a week.

	B.	 	Seventh (7th) Consecutive Day Worked OT — Time on the seventh consecutive
day worked shall be paid at two (2) times the straight-time rate except as is provided in
other articles of this Agreement. Thereafter, shift differential will not double for purposes
of this Section.

	C.	 	Premium Pay for Work performed on a Holiday — Any work performed on a holiday shall
be paid at time and one half (11/2X) for each hour worked plus straight time pay for the
Holiday, except as provided for in Section 12.1A (4) and for hours worked beyond ten (10)
consecutive hours on the Holiday or fifty (50) hours in the week; which will be compensated at
the rate per Section 10.2 A.

10.3 Call-Out Pay

Employees called to work outside their regular shift shall be paid at two (2) times the straight
time hourly rate for actual hours worked with a two (2) hour minimum per call out. Such call-out
pay shall commence at the “time of contact” and continue until the employee leaves the work site or
shop. Employees called to perform work which can be done at home shall be paid two (2) times the
straight time hourly rate for actual hours worked with a one (1) hour minimum per call out.

10.4 Pyramiding Prohibited

Payment of OT at a premium rate shall not be compounded or paid in addition to any other premium
rate paid for work incurred during the same work period. Payment of OT will be calculated at the
base rate. Shift premium and compounding of OT will not be included in the calculation.

10.5 Standby Time

The Company may assign employees within the Network Technician, Field Technician, and Network
Engineer Classification Families to standby status as necessary to meet service
obligations. Employees in other Classification Families may be assigned to standby status by mutual
agreement. Employees on standby will be responsible for fulfilling service calls.

Standby will be scheduled thirty (30) days in advance for a three (3) month period. No employee in
a Work group will be involuntarily scheduled for more than twenty-one (21) days and/or

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evenings
during the three (3) month period. Standby will not be scheduled to conflict with scheduled leave
time, i.e., weekend before or after scheduled leave time, without the consent of the employee.

Standby hours shall be compensable and shall be paid as follows: one (1) hour straight time pay per
evening, six (6) hours straight time pay for the weekend consisting from quitting time Friday to
starting time on Monday or a total of ten (10) hours of straight time pay for the Standard Work
Week plus one (1) additional straight time hour for each Holiday. Standby hours shall not be
considered compensable for the purposes of pension contributions under Section 13.3.

	A.	 	“Low Person” on the OT list will be offered standby first and on up the list for each
scheduled work week. If there are no volunteers, the employee with the least OT will be
assigned the standby for that work week, however, an employee will not be assigned consecutive
weeks of standby or more than one week of standby per month without the consent of the
affected employee.

	B.	 	An employee on standby status is required to respond to a call-out within one hour of
receiving the call. Failure to respond to a call-out in a timely manner while on standby may
result in disciplinary action.

	C.	 	Standby time is not considered OT, but will be used in calculating hours for the OT list.

	D.	 	The Company agrees to cross-train employees where needed to permit the effective utilization
of employees on Standby.

	E.	 	All Journeymen (to include working foremen) may be scheduled for standby. If an employee on
scheduled standby wishes to defer the obligation, it will be the employee’s responsibility to
secure a replacement for coverage. If illness, injury or other emergency prevents the
scheduled employee from meeting the obligation for a scheduled standby, then the standby will
be offered again from low to high employee on the OT list. If there are no volunteers, the
next lowest employee on the OT list will assume the duty.

	F.	 	The Company will provide a cellular telephone or pager to the person on standby duty. (The
person on standby assumes responsibility if the cellular telephone or pager is lost, stolen,
or damaged due to misuse.)

10.6 High Time

All employees shall be compensated at the rate of double time (2X) while working on poles or
structures of the system, seventy (70) feet or more above the ground or building to which it is
attached. This rule shall not apply when employees are working on the roofs of buildings.

10.7 Distribution of OT 

	A.	 	It is the responsibility of all Foremen/Leads to keep accurate OT lists.

	B.	 	The parties recognize that all employees must work together to ensure the Company’s
legitimate OT needs are met.

	C.	 	The Foreman will provide current OT lists by Work Group to the responsible call-out centers
and if requested, the applicable Shop Steward on a bi-weekly basis. The low OT employee on the
applicable OT list shall be on top of each list and the high OT employee

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		 	on the bottom of the
list. Each employee within an OT Work Group will have their Specialty noted on the OT list.

	D.	 	Unscheduled OT: The low OT employee in the Work Group with the necessary Specialty
will be first choice for any unscheduled OT, the second employee the second choice, etc.,
until at least five (5) calls to employees have been made for each position required. An
employee who expects to be unavailable for an OT call during any two (2) week period may have
his/her name removed from the OT list without penalty.

	 	1.	 	If no regular or temporary employees are available, the Company may
use subcontractor employees (in accordance with Section 1.8) to perform the OT.

	E.	 	Employee OT Balances: An employee’s OT balance will be increased (“Charged”) for
either an acceptance or a missed/refusal of an OT opportunity, as follows: eight (8) hours of
time and one half (1 1/2 X) = twelve (12) hours straight time, four (4) hours of Double (2X)
time = eight (8) hours of straight time, etc.

	F.	 	Scheduled Overtime: The Notice for scheduled OT will be posted no less than forty
eight (48) hours excluding weekends (“Notice”), in advance of the OT. An employee who refuses
will not be Charged the OT opportunity if the employee did not receive adequate Notice. An
employee who refuses will be Charged the overtime opportunity if the employee did receive
adequate Notice.

	G.	 	OT opportunities will be distributed as evenly as possible by Specialty within a Work Group.

	H.	 	Temporary employees will be considered only after regular employees in the applicable OT Work
Group.

	I.	 	Unintentional mistakes in the selection of employees shall not be considered a violation of
this Agreement. Employees harmed by such mistakes shall be given first choice for the next OT
opportunity.

	J.	 	New regular employees will be assigned an OT balance equal to the average of all employees by
Specialty within their Work Group at the start of their employment.

	K.	 	An employee on approved leave or Worker’s Compensation will not be charged if an OT call is
missed or declined. An employee returning after thirty (30) days on medical leave or Worker’s
Compensation will be removed from the OT list and averaged back in upon their return to work.

	L.	 	Employee OT balances will be reduced to zero (0) effective January 1 each year.

	M.	 	Employees temporarily re-assigned from their Work Group shall remain on their original OT
list and remain eligible for OT in that Work Group. OT accepted or rejected in the employee’s
Work Group shall be charged to their original OT list.

	N.	 	Foreman/Leads shall function as OT back up in the event no employees are available to work.

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ARTICLE XI

TRAVEL

	11.1	 	Meals
	 
	A.	 	Meal Allowances

	 	1)	 	No Pyramiding: There shall be no pyramiding of meal allowances or
additional time to eat the meal.
	 
	 	2)	 	The OT meal allowance provisions in Section 9.12 of this Agreement shall apply
to an employee who is in travel status while on a work assignment, but shall not be
applicable to travel in connection with training.
	 
	 	3)	 	Travel Meal Allowance: The following meal allowance rates have been
established for reimbursement of meal expenses when an employee is away from his/her
normal work site:

	 	 	 	 	 	 	 	 	 
	 	 	Overnight Rate	 	Non-Overnight Rate*
	Breakfast
	 	$	12.00	 	 	$	14.50	 
	Lunch
	 	$	14.00	 	 	$	17.50	 
	Dinner
	 	$	25.00	 	 	$	31.75	 

 

			
	*	 	Non-overnight rate applies if meal allowance qualifies as taxable income.

	B.	 	Reimbursement of Actual Expenses

	 	1)	 	Meal Expenses: The meal allowances set forth above are provided to
cover all meal expenses. However, with prior approval from the supervisor, an employee
may receive reimbursement of reasonable actual meal expenses while in travel status in
a high cost location. In such cases, reimbursement of actual expenses for meals will
generally apply for the duration of the employee’s stay in that location and must be
supported by valid receipts. Reimbursement of reasonable actual meal expenses,
supported by valid receipts, may be considered in situations where Company provided
board proves inadequate.
	 
	 	2)	 	Non-Meal Expenses: Valid receipts must support all non-meal expenses.
Employees who elect to travel by alternate methods, dates or times shall not be
reimbursed for any additional expenses.

	11.2	 	Travel for Training

These conditions are for training only and shall not apply to working outside of the Company
service area.

	A.	 	Pay for Training Travel: Employees will be compensated at the straight time hourly
rate for traveling to or from a training location if said travel occurs outside normally
scheduled hours. The driver will be compensated at time and one-half (1 1/2 x) the straight
time hourly rate. When the employee is stranded because of unforeseen events,

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	 	 	the employee shall receive pay at the straight time hourly rate, for no more than four (4)
hours beyond shift. Lodging and meal allowances as listed in this Agreement shall apply if
the employee is stranded overnight.
	 
	B.	 	Schedule: Training hours shall supersede the employee’s regular shift and shall
become the employee’s reporting and quitting times.
	 
	C.	 	Transportation: The Company shall provide transportation for training. No vehicle
allowance will be provided if employee declines Company transportation.
	 
	D.	 	Lodging: When lodging is required, the Company shall provide the lodging and the
appropriate meal allowance shall apply.
	 
	E.	 	Holidays: All training performed on a holiday shall be paid at the regular hourly
rate of pay for each hour. Employees shall have eight (8) hours of Flexible Time Off credited
to their annual leave bank if the holiday is missed.
	 
	F.	 	Personal Call: In accordance with Company policy, one call of reasonable length may
be made to the employee’s home each night while away on company business.
	 
	11.3	 	Travel to Perform Work
	 
	A.	 	Scheduled Out of Town Travel — Upon providing an employee with advance notice, as
required, an employee may be assigned to work in a location other than that to which they are
normally assigned, for no more than two (2) weeks without a trip home.

	 	1)	 	If it is more cost effective to bring an employee home than would be the cost
of room and board for a weekend stay, the Company will make every effort to bring the
employee home on the weekends.
	 
	 	2)	 	If the employee chooses to stay and the cost of room and board is greater than
bringing the employee home, the employee shall be responsible for the additional costs.

	B.	 	Pay for work performed outside of the employees scheduled shift: One and one-half
times (1 1/2 x) the straight time hourly rate shall be paid for travel by air, sea, or standby
time related to such travel performed outside the employee’s regular scheduled shift.
	 
	C.	 	Transportation: The employee will utilize Company-provided transportation to and
from the location on Company time. The Company shall furnish transportation from shop to job,
job to job, and job to shop. Where reasonably available, transportation shall be by a
licensed carrier, certified by an appropriate licensing agency. No employee shall be required
to accept transportation with any carrier if there is a reasonable concern about safety.
	 
	D.	 	Lodging: When traveling on Company business, employees shall have a choice of
staying in Company provided-lodging or receiving a per diem of one hundred dollars ($100.00)
per day in lieu of lodging.

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	 	 	An employee who spends the night in a Bush community where commercial lodging is not
available shall receive an additional lodging per diem of fifty dollars ($50) per day.
	 
	E.	 	Personal Call: In accordance with Company policy, one call of reasonable length may
be made to the employee’s home each night while away on company business.

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ARTICLE XII

HOLIDAYS AND TIME OFF

	12.1	 	Company Holidays
	 
	A.	 	The following days shall be recognized Company holidays:

New Years Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Day after Thanksgiving

Christmas

	 	1)	 	Regular and probationary employees shall be eligible for Company holidays,
provided the employee is in paid status the last scheduled workday preceding the
holiday and the first scheduled work day following the holiday. Company holidays for
regular part-time employees will be considered to be six (6) hours. Temporary
employees are not eligible for Company holidays.
	 
	 	2)	 	Company Observed Holidays: For the purposes of this Section, when a
holiday falls on Sunday, the following Monday shall be observed as the holiday; and if
a holiday falls on a Saturday, the preceding Friday shall be observed as the Holiday.

	 	a.	 	If the Company Observed Holiday falls on the employee’s first
scheduled day off, the preceding work day shall be recognized as the holiday;
	 
	 	b.	 	If the Company Observed Holiday falls on the employee’s final
scheduled day off, the following work day shall be recognized as the holiday;
	 
	 	c.	 	If the Company Observed Holiday falls in between the employee’s
first and final scheduled days off, the supervisor may designate either the
preceding work day or first succeeding work day as the holiday.

	 	3)	 	For employees who are on other than five days, eight hour shifts (5-8s),
management may modify the employees’ regular schedules during any work week in which a
Company holiday falls to provide adequate operational coverage and to ensure that
employees are able to earn eighty (80) hours of pay during the pay period. However, if
the Company does not modify schedules, the employee will receive pay for the holiday
based on straight time pay for the number of hours the employee would regularly be
scheduled for on that day (i.e., ten (10) hours for a 4-10s shift, twelve (12) hours
for a 3-12s shift).
	 
	 	4)	 	If employees regularly scheduled to work in retail stores are required to work
on the Day after Thanksgiving, eight (8) additional hours or the number of hours the
employee would regularly be scheduled for that day (i.e., ten (10) hours for a 4-10s
shift, twelve (12) hours for a 3-12s shift) will be added to their FTO account during
that pay period and will receive straight time pay for the hours worked.

- 56 -

 

	 	5)	 	When the Company is open for business in a work group on the Day after
Thanksgiving, the Company will request volunteers by seniority. In the event there are
not enough volunteers to fill these needs, employees normally assigned to work that
shift will be assigned to work in reverse order of seniority.
	 
	 	6)	 	When the Company is open for business in a work group on any other Holiday, the
Company will offer the premium pay opportunity via that work group’s overtime list. In
the event there are not enough volunteers to fill these needs, employees normally
assigned to work that shift will be assigned to work in reverse order of seniority.
	 
	 	7)	 	Part-time bush employees who request and are granted permission to work on a
Company holiday will be paid at the applicable straight time rate and will also be
granted an additional personal holiday to be used prior to the end of the calendar
year. If the Company requires a part-time bush employee to work a Company holiday, the
employee shall be paid for the hours worked as provided for in Article X.

	B.	 	Personal Holidays

	 	1)	 	Regular employees will be credited annually with four (4) personal holidays as
follows: two (2) days on January 1 and two (2) on July 1 of each year. Temporary
employees do not receive personal holidays.
	 
	 	2)	 	Personal holidays for newly hired regular full-time employees shall be credited
based on the month of hire, as follows:

	 	 	 	 	 	 	 
	Date of Hire	 	Number of Days	 	Dates Credited
	Prior to March 31

	 	 	4	 	 	April 1 (2), July 1, October 1
	Prior to June 30

	 	 	3	 	 	July 1 (2), October 1
	Prior to August 31

	 	 	2	 	 	September 1, October 1
	Prior to September 30

	 	 	1	 	 	October 1
	October 1 or later

	 	 	0	 	 	 

	 	3)	 	Regular part-time employees are credited with personal holidays on a pro-rated
basis, using the number of hours worked in the previous calendar quarter. For example,
an employee with 390 hours in the prior calendar quarter would have worked 75 percent
(75%) of a full-time schedule. The employee would therefore receive credit for 75
percent (75%) of a personal holiday (i.e., 6.0 hours) on each date a personal holiday
was credited.
	 
	 	4)	 	Requests for time off using a personal holiday must be submitted by an employee
to the immediate foreman in accordance with Section 12.5. Full-time employees must
take personal holidays in eight (8) hour increments. Full-time and part-time employees
will be required to use accrued FTO as necessary to cover their absence from the
regularly scheduled shift (e.g., use eight (8) hours of personal
holiday, plus two (2) hours of FTO to cover a 4-10s shift; use eight (8) hours of
personal holiday, plus four (4) hours of FTO to cover a 3-12s shift).

- 57 -

 

	 	5)	 	Personal holidays have no cash value and are forfeited if not used by December
31 of the calendar year or before separation from employment.

	12.2	 	Flexible Time Off (FTO) Accrual Rates
	 
	A.	 	Regular employees shall accrue Flexible Time Off (FTO) at the following rates:

	 	 	 

	Months of Service
	 	Hours per pay period
	0 to 23 months
	 	4.62
	24 to 47 months
	 	6.15
	48 to 119 months
	 	7.69
	120 to 191 months
	 	9.23
	192+ months
	 	10.77

	B.	 	FTO accrual for part-time employees is calculated each pay period based on the hours worked
in the payroll period. For example, an employee who worked sixty (60) hours during a payroll
period would receive seventy-five percent (75%) of the applicable accrual rate for that
period.
	 
	C.	 	Accrual rates will change the pay period coincident with or first following attainment of
continuous service in accordance with 12.2 (A) above. Leave accrues during the period of time
an employee is on paid leave.
	 
	D.	 	Additional accrual shall be canceled if the employee fails to return to duty upon completion
of the employee’s authorized leave.
	 
	E.	 	Leave does not accrue during periods of Workers’ Compensation leave or leave without pay.
	 
	12.3	 	FTO Accrual Limits

Accrued and unused leave may be carried over from one year to the next within the following
limitations:

	A.	 	On December 31 of any year, an employee may not have more than four hundred forty (440) hours
of accrued FTO. Any accrued FTO in excess of four hundred forty (440) hours as of December 31
of any year will be transferred into an employee’s SSP balance.
	 
	B.	 	No later than two (2) pay periods after the effective date of this Agreement employees with
hours in excess of four hundred forty (440) will be cashed out.
	 
	C.	 	Newly hired employees shall accrue FTO but shall not be able to use FTO until successful
completion of the six (6) month probation period. Additionally, hours accrued during the
probationary period have no cash value. Upon successful completion of the probation period,
FTO accrued shall be available for use and shall have cash value.
	 
	D.	 	Scheduled FTO canceled by the Company due to operational requirements will be deferred until
the following year if the employee had no reasonable opportunity to

- 58 -

 

	 	 	reschedule the leave
during the current year. Such deferred FTO will not be counted against the four hundred forty
(440) hour maximum accrual limit.
	 
	12.4	 	Scheduling of FTO

FTO shall be scheduled and approved on a seniority basis, except as provided for in Section 12.5.
The Company shall schedule vacations, after consulting with the employees within each work group
and taking into consideration seniority. The following stipulations will govern this process.

	A.	 	The number of employees permitted to be on FTO at any time shall be twenty percent (20%) for
a Work Group. This limit may be waived by the Company.
	 
	B.	 	Annual scheduling shall begin on the first working day in January and shall be completed no
later than the last working day of February for seniority to be utilized. FTO will be
scheduled for the twelve (12) months beginning March 1 of the year being scheduled and
continue through the last day of February of the following year.
	 
	C.	 	Semi-annual scheduling of FTO may be implemented by a majority vote of a Work Group prior to
the January scheduling period. The first six (6) month period, January 1 through June 30,
scheduling shall begin on November 1 and end no later than December 31; for the second period,
July 1 through December 31, scheduling shall begin on May 1 and end no later than June 30.
Employees may elect to schedule FTO which overlaps the last month of one and the first month
of another scheduling period.
	 
	D.	 	All scheduling will be done by Work Group or by Specialty, if there are multiple Specialties
within a Work Group, as best meets Business Needs, and shall include all shifts.
	 
	E.	 	Employee requests for leave without pay will not be approved in the initial scheduling
process, but may be wait listed.
	 
	F.	 	Employees submit their FTO requests, beginning with the most senior employee and working down
to the least senior employee.
	 
	G.	 	Employees will only be approved for one continuous block of FTO at a time, scheduled in full
day increments.
	 
	H.	 	The most senior employees of the work unit will submit a leave slip to their foreman who will
first verify FTO amounts and projections, then communicate approval of the employee’s request.
This process will continue with the next most senior employee until all employees have
scheduled FTO, i.e. second choice, third choice, fourth choice, etc.
	 
	I.	 	Each employee will know in advance what days within the two (2) six (6) month periods or year
are available for scheduling. Thereafter, the employee shall be given until the following
scheduled workday to submit their request.
	 
	J.	 	The foreman will make a master leave schedule which will be available for review by employees
of their Work Group.
	 
	K.	 	FTO requests shall be approved, wait listed, or denied and communicated to the employee at
the time the request is submitted.

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	12.5	 	Incidental Time Off Requests

Incidental requests for time off shall be approved or disapproved in accordance with this
provision. Employees must generally exhaust their FTO bank before requesting approval for
additional time off as leave without pay.

	A.	 	Short Term FTO Request —  An employee shall request approval from the appropriate
supervisor in writing or via email at least one (1) business day in advance when requesting up
to sixteen (16) hours of FTO.
	 
	B.	 	Long Term FTO Request: An employee requesting more than sixteen (16) hours of FTO
must provide at least two (2) weeks written notice to their supervisor.
	 
	C.	 	Approval Process: The approving supervisor may approve or deny the FTO request based
on staffing and business needs. The approving supervisor shall respond to the requesting
employee by phone and with a confirming email prior to the end of the requesting employee’s
shift on the day the short term FTO request is made, or within two (2) business days for a
long term FTO request. If the employee’s supervisor is not available the manager may approve
or disapprove the request.

	 	1)	 	If the supervisor or manager does not respond to the employee’s FTO request
within the timelines then the FTO request shall be considered denied unless the
employee’s request is approved by a higher level manager.
	 
	 	2)	 	If the employee cannot be spared from the work group at the time requested, the
request shall be granted as soon as the employee can be spared from duty.

	D.	 	Incidental Illness or Medical Appointments — Whenever possible, employees will
provide advance notice of not less than forty-eight (48) hours for scheduled medical
appointments. Leave taken for medical appointments or illnesses without advance notice may be
excused. The Company may require a doctor’s certification for a period of absence in excess
of three (3) days. The expense of such medical certification will be the responsibility of
the employee.
	 
	E.	 	Emergency Leave: In the case of a death in the immediate family, as defined in
Section 12.8, emergency leave for up to thirty (30) calendar days will be allowed upon request
to the appropriate Vice President or designee. The employee may elect to use their FTO,
bereavement leave, time off without pay, or a combination of during this leave period.
	 
	F.	 	Extended Long Term Absence. Regular employees may be granted a long term leave of
absence, business requirements permitting, for up to one hundred eighty (180) calendar days
without loss of seniority. Requests for long term leaves of absence shall be submitted in
writing to the Division Vice President and the Vice President of Human Resources, or their
designees, no later than thirty (30) days prior to the requested period. Unless precluded by
changes in
business, the employee will be restored to
the employee’s regular job upon conclusion
of the long-term leave.
	 
	12.6	 	Unscheduled Absence

Regular attendance at work is an essential requirement for all employees and it is the employee’s
responsibility to report to work on time. Excessive absenteeism, frequent unexcused absences,
reporting to work late, or failing to notify a supervisor of a late arrival or an unscheduled
absence

- 60 -

 

prior to the start of a work shift, are unacceptable, without good cause, and may result in
disciplinary action, up to and including dismissal.

	A.	 	An employee who is unable to report for work must notify the designated foreman of the
reason(s) for the absence prior to the start of the scheduled shift as promptly as the
available means of communication permit.
	 
	B.	 	Supervisors may excuse unscheduled absences arising from reasons beyond an employee’s control
provided such absences are infrequent.
	 
	C.	 	At the Company’s discretion, a doctor’s certification may be required for any absence due to
a single illness or injury that exceeds three (3) calendar days. The expense of such medical
certification will be the responsibility of the employee.
	 
	12.7	 	FMLA Leaves of Absence 

All employees will be entitled to Family and Medical Leave (FML) and Military Family Leave (MFL),
regardless of the size of the workforce in their geographical location, if they otherwise meet the
statutory eligibility requirements (e.g., currently twelve (12) months of employment and at least
1,250 hours worked during the prior twelve (12) month period).

The Company and the Union incorporated into this agreement by reference the provisions and
definitions of the Federal Family and Medical Leave Act (FMLA). (29 CFR Part 825) Provisions of
FML and MFL are available on-line on the corporate Policies and Procedures page.

	12.8	 	Bereavement Leave

The Company shall grant a regular employee up to a maximum of four (4) days of paid leave, without
the loss of FTO, for a death that occurs in the employee’s immediate family.

For the purposes of this Section, immediate family shall be defined as the employee’s spouse or the
following relatives of the employee or spouse:

	 	 	 	 	 

	 

	 	Child (natural or legally adopted)

Grandparents

Grandchildren
	 	Parents or Step-Parents

Brothers

Sisters

	12.9	 	Jury Duty

Jury duty for regular or probationary employees shall be treated as administrative leave without
loss of leave or pay.

	A.	 	Service in court when subpoenaed as a witness on behalf of the Company, or when called as an
expert on a matter of Company concern or relating to a Company function, shall be treated the
same as jury duty.
	 
	B.	 	Fees paid by the court, other than travel or subsistence allowance, shall be deducted from
the employee’s pay upon submission of a receipt, which establishes the court compensation.
Receipts are due to payroll, no later than two (2) weeks after receipt of jury pay, except
that fees paid for court duty that occurs on the employee’s normal non-workdays may be
retained by the employee.

	 	1)	 	Witness service for purposes other than just described shall be covered by FTO.

- 61 -

 

	C.	 	Employees, upon receiving written notice of being called for jury duty, will immediately
provide their foreman with a copy of such notice. In the event an employee called for jury
duty is excused, the employee shall return to work within a reasonable time. With prior
approval of the foreman, employees shall have the option to use annual leave in lieu of
returning to work to complete the regularly scheduled shift.
	 
	D.	 	Employees who are called for jury duty shall, at the employee’s option, be scheduled on the
day shift, Monday through Friday, for the duration of the jury duty only, and will be returned
to their normal shift under the time limitations covered in this Agreement.
	 
	12.10	 	Military Leave

All employees covered under this Agreement shall be entitled to administrative leave without pay
for any active duty in any Armed Forces component (including units of the National Guard and
Reserve) under the terms of the 1994 Uniformed Services Employment and Reemployment Rights Act
(USERRA).

	A.	 	Any eligible employee shall be allowed a maximum of fifteen (15) days per calendar year for
military leave with pay.
	 
	B.	 	Employees are required to present a copy of official orders for active duty as soon as
possible to the Company to comply with the law and to allow the Company to reschedule the work
force.
	 
	C.	 	Employees on military duty assignments will go back to a 5-8s schedule shift to limit the
impact on the employee’s eighty (80) hour pay period.
	 
	D.	 	Compensation employees receive from the military (up to the employee’s normal rate of pay)
shall be deducted from the employee’s pay upon submission of a receipt which establishes the
appropriate military compensation. Military pay receipts are due to payroll no later than two
(2) weeks after receiving military pay.
	 
	12.11	 	Cash-in of FTO

An employee, upon written request twice (2x) per calendar year, shall be permitted to cash in up to
a maximum of forty (40) hours of accrued FTO annually, provided the request is made twenty-one (21)
days in advance of the next payroll period.

	A.	 	Hours cashed in shall not be considered compensable hours for the purposes of pension
contributions under Section 13.3.
	 
	B.	 	In the event of a bona fide hardship situation, the twenty-one (21) day notice and cash-in
maximum may be waived.
	 
	C.	 	If any portion of the annual limit is not cashed in from the prior three (3) years, it may be
carried over up to a maximum of one hundred sixty (160) hours of cashable FTO.
	 
	D.	 	All accrued FTO will be cashed out upon an employee’s separation of employment.
	 
	12.12	 	Supplemental Workers Compensation

An on the job injury covered by Workers’ Compensation shall not cause the employee to lose any
accrued FTO.

	A.	 	In addition to statutorily provided payments, the Company will compensate the employee one
hundred percent (100%) of the difference between Workers’ Compensation and the

- 62 -

 

	 	 	employee’s
regular rate of pay until the employee is able to return to duty or medically retired provided
however, that such time does not exceed fifty-two (52) weeks.
	 
	B.	 	Disability income payments received as a result of Company contributions on the employee’s
behalf to the Alaska Electrical Health and Welfare Trust will reduce supplemental workers’
compensation pay provided for in this Section, whether or not the employee applies for the
benefits. At no time will total disability benefits delivered be less than or exceed one
hundred percent (100%) of the employee’s pre-disability net regular pay.
	 
	C.	 	The Supplemental Workers’ Compensation shall cease at the time the employee becomes eligible
for benefits under the Company’s long term disability income insurance plan (LTD).
	 
	D.	 	For each hour paid under this Section, the Company shall make the appropriate health and
welfare contribution; other contributions however, shall not be applicable.
	 
	12.13	 	Supplemental Sick Pay (SSP)

A balance of SSP hours shall be established to provide employees an option to receive full pay
during any prolonged non-occupational illness or injury.

	A.	 	SSP hours may be accumulated by converting excess FTO, as described in Section 12.3, or an
employee may also voluntarily convert additional FTO to SSP, in eight (8) hour increments, at
the end of each calendar year. Except as provided in Appendix III, SSP will not be cashed out
upon an employee’s termination of employment.
	 
	B.	 	An employee who has a SSP balance may draw upon that balance commencing the sixth
(6th) consecutive workday of an absence for the same disability. An employee may
also commence using SSP for an extended absence after an intermittent leave of up to forty
(40) hours within ten (10) consecutive work days for the same disability. SSP shall be paid
at one hundred percent (100%) of the employee’s straight-time hourly base rate, except for
instances when the employee is eligible to receive disability pay from the Health & Welfare
Trust. In such cases, the payment shall be adjusted so that the sum of SSP plus disability
pay from the Health & Welfare Trust equals the employee’s base rate. SSP may continue until
the employee is no longer disabled, or until the employee becomes eligible to receive benefits
under the Company’s LTD Plan, whichever occurs first.
	 
	C.	 	During the first six (6) months of any absence for which the employee is eligible to receive
disability payments from the Health & Welfare Trust, the Company shall make required pension
contributions for each hour of SSP received by the employee. During such period, however,
Health & Welfare contributions shall not be applicable.
	 
	12.14	 	Return to Work

An employee released to return to work after an accident or prolonged medical treatment shall
provide the Company with a statement from a licensed medical physician to the effect that the
employee is able to resume full duty. If less than full duty can be resumed, and the cause of his
absence was:

	A.	 	An On-the-Job Injury — The employee will be permitted to return to work, with the
Company utilizing the employee’s capabilities in a manner suitable to the Company.

- 63 -

 

	B.	 	An Off-the-Job Injury or Prolonged Illness — The employee will not be permitted to
return to work until a reduced duty and reduced temporary wage is agreed upon by the Division
Vice President and the Union Business Manager, or their designated representatives.

- 64 -

 

ARTICLE XIII

EMPLOYEE BENEFITS

	13.1	 	Health & Welfare Plan

The Company will make monthly contributions to the Alaska Electrical Health & Welfare Trust (“H&W
Trust”) on behalf of all regular employees covered under this Agreement, in accordance with the
terms of the Plan.

	A.	 	Newly hired employees will be enrolled in the Trust Plan of their choice the first day of the
month following their first full month of employment.
	 
	B.	 	The maximum monthly contribution by the Company to the H&W Trust as of the effective date of
this Agreement shall be $985.40 per employee. Thereafter, the annual increase in the maximum
monthly Company contribution due to any future increases in H&W Trust costs shall be capped at
five percent (5%) for the 1st year of the Agreement, four percent (4%) for the
2nd year of the Agreement, and five percent (5%) for the 3rd year of the
Agreement. Any such increase in the Company’s contributions will be effective the first day
of the month in which the H&W Trust increase is implemented.
	 
	C.	 	If approved by the H&W Trust, a range of Trust Plan options, i.e. 500, 501, 502, etc., may be
made available to individual employees within the bargaining unit. If an employee selects a
Trust Plan less expensive than Plan 500, both the Company and the employee will realize the
reduced cost, with the company paying 80% and the employee paying 20% of the lower monthly
premium. Selection of a more expensive Plan by an employee will not obligate the Company to
pay more than the maximum contribution set forth in paragraph B above.
	 
	D.	 	The Union agrees to make its best efforts to work with the H&W Trust to establish and offer a
range of Trust Plan options including low cost catastrophic medical coverage plan for
employees desiring such a health coverage plan option.
	 
	E.	 	The Company may offer a Wellness Plan to employees covered under this Agreement, provided
that the award of any cash compensation under such Plan requires the mutual agreement of the
Union.
	 
	F.	 	Effective commencing the first pay period in January 2010, the Company will apply a subsidy
in the amount of $10.00 per pay period to reduce the premium co-pay amount deducted from the
paychecks of Schedule B employees. (See Appendix V.)
	 
	G.	 	The Company and the Union have agreed to establish a pro-rated rate for reimbursement of H&W
Health Plan benefit premiums to be used when billing for reimbursement of Shop Stewards time.

The rate is established using the following formula:

12 x (monthly H&W premium – employee contribution)/2080 = hourly reimbursement

rate

e.g. 12 x ($1232 — $246.60) / 2080 hours = $5.69 / hour reimbursement

	 	 	This premium will be charged on regular pay hours only for no more than eight (8) hours per
day or forty (40) hours per week.

- 65 -

 

	13.2	 	Survivor Income Benefits

The Company will fund basic life and accidental dismemberment and death insurance benefits.
Additionally, employees will be offered the opportunity to purchase voluntary supplemental life
insurance and accidental death and dismemberment coverage. These programs will be provided under
the same terms and conditions as it is provided to non-represented employees.

	13.3	 	Retirement

The Company agrees to contribute to the Alaska Electrical Pension Trust Fund (“AEPTF”) on behalf of
regular employees covered under the collective bargaining agreement, in accordance with the terms
of the Plan.

	A.	 	The contribution rate shall be as listed in Appendix I per compensable hour. Contributions
will be made on behalf of newly hired employees beginning the first day of the month following
their first full month of employment.
	 
	B.	 	Any covered employee who is a participant in the AEPTF may elect to reallocate the
contributions made by the Employer to the AEPTF according to the rules regarding the
reallocation of contributions from the Defined Benefit Plan to the Defined Contribution Plan
as outlined in the Trust Plan documents. If an employee makes application to the Plan
Administrator for a reallocation and the application is approved, the Plan Administrator will
notify the Employer of the new allocation of contributions. The Employer agrees to remit
future contributions according to such instructions, except when it appears that to do so
would bring the individual employee’s pension benefit requirements below those necessary to
fund the employee’s ultimate pension benefits. The allocation will continue in effect until
the Plan Administrator notifies the Employer of a subsequent reallocation or until it appears
that the employee’s pension benefit requirements fall below those necessary to fund the
employee’s ultimate pension benefits. Nothing in this supplemental agreement will cause the
Employer to contribute more or less on behalf of an employee than the amount specified in the
collective bargaining agreement.
	 
	C.	 	There will be a moratorium on Movement of Monies as defined in Section 13.7, from wages to
pension, until December 31, 2012.
	 
	13.4	 	Apprenticeship Training

The Company agrees to contribute fifteen cents ($.15) to the Alaska Joint Electrical Apprenticeship
and Training Trust (“AJEA&TT”) per compensable hour for all employees in IBEW Journey and
apprenticeable positions (Appendix V), except for hours worked by temporary employees described in
Section 5.9.

	13.5	 	Alaska Electrical Money Purchase Pension Plan

Regular employees shall be eligible to participate in the Alaska Electrical Money Purchase Pension
Plan.

	13.6	 	401(k) Savings Plan

Regular employees shall be eligible to participate in the Company Employee 401(k) savings plan
under the terms and conditions in place as of the effective date of this Agreement. The parties
agree to meet and negotiate over any significant changes to this benefit.

- 66 -

 

	13.7	 	Movement of Monies

During the duration of this Agreement the bargaining unit shall be allowed the movement of monies,
once per calendar year (i.e., wages to benefits or benefits to benefits), so long as:

	 	1)	 	The negotiated package price does not change;
	 
	 	2)	 	a majority of those employees in the same classification elect to do so;
	 
	 	3)	 	The defined benefit pension plan contribution rate does not go below four
dollars ($4.00) per compensable hour, and;
	 
	 	4)	 	The trustees of the respective plans approve all proposed changes.

	13.8	 	Long Term Disability Income Insurance Plan

The Company will provide Long Term Disability (LTD) Income Insurance Plan benefits for eligible
regular, full-time employees.

	A.	 	The provisions of the Company LTD Plan will govern and control in any case where conflict
might arise or be claimed to exist between any provision of the LTD Plan and any provision of
this Agreement.
	 
	B.	 	The Company will advise the Union in writing before implementing any significant change in
the design or administration of the LTD Plan that directly affects the employees covered in
this Agreement.
	 
	13.9	 	Communication Services

The Company shall provide employees with a discount of no less than 15% on all ACS residential
(non-business) monthly recurring services (Local, Long Distance, Wireless and Internet but not
DISH).

Any employee that makes use of a competitor’s service when service is available from ACS shall not
be eligible for this benefit on any of their ACS services. Additionally, employees outside of ACS
service areas that use the services of a non-IBEW signatory service provider when the services of
an IBEW signatory service provider are available shall not be eligible for this benefit (i.e. an
employee can choose between MTA television service, GCI television service or DISH TV). If
employee elects to use GCI they shall not be eligible for the ACS communication benefit but would
receive this benefit if they choose MTA or DISH).

Employees who have two delinquent payments within a twelve (12) month period will lose the
Communications Services benefit for one (1) year.

	13.10	 	Education Assistance Program

The Company is committed to providing opportunities for employees to improve present job
performance and to prepare for reasonable attainable jobs within the Company.

	A.	 	The Company will refund qualified tuition expense in connection with courses of study from an
accredited or state approved post-secondary education institute, trade school or part of an
appropriate qualified professional certification provided by a third party vendor

- 67 -

 

	 	 	that an
employee successfully completes, provided that the course of study is related to the
employee’s current job or other reasonably attainable Company position.
	 
	B.	 	Qualified reimbursable expenses include: tuition, registration fees, examination fees, and
laboratory charges provided the employee obtains a satisfactory (C or better/pass) grade.
Student fees, transportation, late fees, drop/add fees and other expenses are not covered.
	 
	C.	 	The refund shall be for one hundred percent (100%) of the first class taken each year and
eighty (80%) of total costs, up to a yearly limit per employee of five thousand two hundred
and fifty dollars ($5,250.00).
	 
	D.	 	In order to obtain tuition reimbursement, the employee must obtain prior written approval
from their Director and the Director, Workforce Operations, Human Resources department, that
the proposed course is qualified under (A) above, and provide documentation of successful
completion and tuition expenses paid.
	 
	E.	 	The employee is required to sign the Request for Education Assistance to repay the Company in
the event of voluntary termination, within three hundred sixty (360) calendar days after
completion of the course as follows:

	 	 	 
	Time after Course Completion	 	Repayment
	< 3 months
	 	100%
	3 < 6 months
	 	75%
	6 < 9 months
	 	50%
	9 < 12 months
	 	25%
	12 + months
	 	0%

	13.11	 	IBEW Hardship and Benevolent Fund (IHBF)

The Company shall deduct from members’ net pay five cents ($.05) per compensable hour worked by all
bargaining unit employees. These deductions will be transmitted in accordance with mutually
established payroll procedures to the designated Trustee. ‘

	13.12	 	Legal Benefits

Eligible employees will have access to legal benefits through the ACS Employee Assistance Program
(EAP). ACS will pay one hundred percent (100%) of the cost of the EAP, and maintain the EAP with
legal benefits at the current level through the life o f the Agreement.

	13.13	 	Leave Donation Replacement Fund (LDRF)

The Company shall, beginning with the first administratively practicable pay period following
notification by IBEW that a majority of bargaining unit employees elect to participate in the LDRF,
deduct from members’ net pay two cents ($.02) per compensable hour worked by all bargaining unit
employees. These deductions will be transmitted in accordance with mutually established payroll
procedures to the Union. Effective upon notification from the IBEW of favorable IRS determination,
the deduction will be converted to a pre-tax deduction. This modification applies prospectively
effective the first administratively practicable pay period following receipt of a copy of the IRS
determination letter.

- 68 -

 

The LDRF will be established by the Union and administered by a governing board consisting of one
(1) Chief Steward and up to four (4) ACS bargaining unit members appointed by the Business Manager
or designee. The LDRF will be used solely for the benefit of the ACS bargaining unit, to assist
members who have depleted their FTO bank and require additional assistance. The Chief Steward will
serve as Chairperson of the Board. Employees in need may submit an application for financial
assistance to the LDRF board. The LDRF board will grant or deny requests for financial assistance
in accordance with fair and reasonable criteria established by the board.

- 69 -

 

ARTICLE XIV

PAYDAYS

	14.1	 	Paydays

Employees shall be paid on a bi-weekly basis, with regular paydays as designated by the Company.
If a payday falls on a holiday or a bank holiday, payday shall be on the preceding business day.

	14.2	 	Wage Increase

Any increase in wages shall be effective on the first day of the pay period closest to the
effective date to the payroll action.

	14.3	 	Pay upon Separation

When separated from employment, an employee shall receive all accrued earnings not later than
seventy-two (72) hours from the time of termination, excluding Saturday, Sunday, or legal holiday,
or as otherwise required by Alaska law.

- 70 -

 

ARTICLE XV

MISCELLANEOUS

	15.1	 	Tools 

	A.	 	The Company agrees to furnish to regular employees all necessary equipment, tools, climber
pads, climber gaffs for climbers using removable gaffs, climbers, body belts, safety and
climber straps and other devices necessary to maintain the standard of service required by the
Company and to keep such items in good working condition. The Company shall determine what
items will be used by regular employees and necessity for replacement. Worn or broken tools
will be replaced by the Company on presentation of such tools by the employee. Employees will
be responsible for loss, theft, and misuse of tools; and replacement of such tools will be at
the employee’s expense.
	 
	B.	 	Employees in the Fleet Services unit will furnish their own tools appropriate to their trade
and classification level. The Company shall pay tool replacement and steel-toed safety shoes
allowance each month payable on a bi-weekly basis in accordance with the following:

	 	 	 

	$60.00 per month

	 	Foreman, Fleet Service Technician III
	$50.00 per month

	 	Fleet Service Technician II
	$40.00 per month

	 	Fleet Service Technician I

	C.	 	All employees in classifications involving vehicle maintenance will be required to wear
steel-toed safety shoes in their work areas as required.
	 
	15.2	 	Lockers 

Where appropriate, the Company will provide lockers for clothing, tools, etc., of employees. Where
required, facilities for drying clothing and equipment will be provided.

	15.3	 	Personal Vehicles 

No employee shall utilize his own personal vehicle to transport employees, tools and materials to
any job or to the shop. Employees shall use vehicles either owned or operated by the Company.
With the express approval of the employee’s foreman, an employee may utilize their personal vehicle
to report from one work site to another work site and shall be entitled to mileage reimbursement in
accordance with the Company’s policy. Employees reporting from one work location to another shall
be in pay status.

- 71 -

 

APPENDIX I — WAGE STRUCTURE

Alaska Communication Systems Union Wage Structure as of February 28, 2010

Appendix I for Collective Bargaining Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Network Technician	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos
	 
	4
	 	General Foreman	 	General Foreman	 	(A)	 	(C)	 	 	 	 	 	 	 	 	 	 
	3
	 	Network Technician Foreman	 	CT Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Customer & Network Support Foreman	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level 2
	 	Network Technician	 	Cellular Technician - Switch	 	$8.00	 	32.93	 	33.76	 	34.58	 	35.40	 	36.22	 	37.04
	 
	 	 	 	CT/Data Technician	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/IP	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/ISP Inspector	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Microwave	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Network Installer	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Network Switching Tech	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/PBX I & R	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Customer & Network Support
Technicians	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Field Technician	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos
	 
	4
	 	General Foreman	 	General Foreman	 	(A)	 	(C)	 	 	 	 	 	 	 	 	 	 
	3
	 	Field Technician Foreman	 	CT Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	Level 2
	 	Field Technician	 	Cellular Technician - Field	 	$8.00	 	32.93	 	33.76	 	34.58	 	35.40	 	36.22	 	37.04
	 
	 	 	 	CT/Bush Technicians	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Cable Splicer	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Facility Technician	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Field Service Technician	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/Lineman	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/OSP Inspector	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	CT/PayStation I & R	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	 	 	 	 	 	 	0 hrs	 	1600 hrs	 	3200 hrs	 	4800 hrs	 	6400 hrs	 	8000 hrs
	 
	 	NonJrny Field Technicians	 	CT/NonJrny Bush Technicians	 	$8.00	 	21.40	 	23.71	 	26.01	 	28.32	 	30.63	 	32.93

- 72 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Network Engineer	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos
	 
	5
	 	Network Engineer Foreman	 	CT Engineering Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	4
	 	Network Engineer IV	 	CT Engineer III	 	$8.00	 	34.67	 	35.44	 	36.21	 	36.98	 	37.75	 	38.52
	3
	 	Network Engineer III	 	Engineer II	 	$8.00	 	32.93	 	33.76	 	34.58	 	35.40	 	36.22	 	37.04
	2
	 	Network Engineer II	 	Engineer I	 	$5.25	 	27.94	 	29.35	 	30.76	 	32.17	 	33.58	 	34.99
	 
	 	Network Engineer II.a	 	Systems Development Specialist	 	$8.00	 	29.64	 	30.30	 	30.96	 	31.62	 	32.27	 	32.93
	1
	 	Network Engineer I	 	Engineering Tech	 	$5.25	 	28.27	 	28.90	 	29.53	 	30.16	 	30.79	 	31.42
	 
	 	 	 	IP Engineer I	 	$5.25	 	26.63	 	27.36	 	28.10	 	28.83	 	29.57	 	30.30

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Systems Engineer	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Entry	 	Target	 	Max	 	 	 	Incentive	 	 
	 
	3
	 	Systems Engineer Foreman	 	IP Engineer Foreman	 	(A)	 	86,758.05	 	101,796.85	 	109,893.33	 	 	 	7,000	 	 
	2
	 	Systems Engineer II	 	IP Engineer III	 	$8.00	 	82,131.04	 	96,012.49	 	107,579.65	 	 	 	6,000	 	 
	1
	 	Systems Engineer I	 	IP Engineer II	 	$8.00	 	64,779.75	 	78,661.21	 	80,974.43	 	 	 	4,000	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Facility Maintenance Technician	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos
	 
	3
	 	Facility Maintenance Foreman	 	Facility Maintenance Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	2
	 	Facility Maintenance Technician II	 	Facility Maintenance Person	 	$8.00	 	29.64	 	30.30	 	30.96	 	31.62	 	32.27	 	32.93
	1
	 	Facility Maintenance Technician I	 	Facility Maintenance Custodian	 	$4.25	 	20.06	 	20.50	 	20.95	 	21.39	 	21.84	 	22.28

- 73 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Fleet Service Technician	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos	 	 
	 	 	 
	4
	 	Fleet Service Foreman	 	Mechanic Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	3
	 	Fleet Service Technician III	 	Journeyman Mechanic	 	$8.00	 	29.64	 	30.30	 	30.96	 	31.62	 	32.27	 	32.93
	2
	 	 	 	Non-Journeyman Mechanic	 	$5.25	 	28.27	 	28.90	 	29.53	 	30.16	 	30.79	 	31.42
	 
	 	Fleet Service Technician II	 	Mechanics Parts Person	 	$5.25	 	28.27	 	29.06	 	29.85	 	30.63	 	31.42	 	 
	1
	 	Fleet Service Technician I	 	Mechanic Helper	 	$5.25	 	21.78	 	22.54	 	23.29	 	24.20	 	24.81	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Chief Shop Steward	 	 	 	 	 	Step 1	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	Chief Shop Steward	 	Chief Shop Steward	 	$8.00	 	(E)	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	Materials Management Specialist	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos	 	 
	 
	4
	 	Materials Management Foreman	 	Warehouse Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	Materials Management Specialist II.a	 	Warehouseman	 	$8.00	 	23.31	 	24.48	 	25.65	 	26.81	 	27.98	 	29.15	 	 
	2
	 	Materials Management Specialist II	 	Materials Management Specialist II	 	$6.00	 	18.59	 	19.82	 	21.06	 	22.30	 	23.54	 	24.78	 	 
	1
	 	Materials Management Specialist I	 	Materials Specialist	 	$4.50	 	18.86	 	19.25	 	19.64	 	20.04	 	20.43	 	 	 	 
	 
	 	 	 	Distribution Specialist	 	$4.75	 	18.17	 	18.56	 	18.94	 	19.32	 	19.70	 	 	 	pension vote
	0
	 	Materials Management Assistant	 	Warehouse Assistant	 	 	 	14.82	 	(Student Hires - not eligible for pension)	 	 	 

- 74 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Business Support Specialist	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	 
	 
	Level 6
	 	Lead Business Support Specialist	 	Ld End User Billing Representative	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ld Payroll Specialist	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Ld Sr Clerical Specialist	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead Customer Service Representative	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	Business Support Specialist V	 	End User Billing Representative	 	$4.25	 	21.98	 	22.56	 	23.15	 	23.74	 	24.32	 	 
	4
	 	Business Support Specialist IV	 	Customer Service Representative	 	$4.25	 	14.95	 	17.01	 	19.06	 	21.11	 	23.17	 	 
	3
	 	Business Support Specialist III	 	Collection Specialist	 	$4.75	 	15.00	 	16.75	 	18.51	 	20.26	 	22.02	 	 
	 
	 	 	 	Payroll Specialist	 	$5.25	 	14.41	 	16.16	 	17.92	 	19.67	 	21.42	 	Pension Vote
	2
	 	Business Support Specialist II	 	Sr Clerical Specialist	 	$4.75	 	18.86	 	19.25	 	19.64	 	20.04	 	20.43	 	 
	1
	 	Business Support Specialist I	 	Clerical Specialist	 	$4.75	 	18.17	 	18.56	 	18.94	 	19.32	 	19.70	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Service Delivery Specialist	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	Step 6
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	30 mos
	 
	Level 6
	 	Lead Service Delivery Specialist	 	CT Engineering Foreman	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead Line Assigner I	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead Assistant Account Executive	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead Dispatch and Repair Representative	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead Service Order Representative	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	Service Delivery Specialist V	 	Engineer II	 	$8.00	 	32.93	 	33.76	 	34.58	 	35.40	 	36.22	 	37.04
	4
	 	 	 	Automated Provisioning Specialist	 	$8.00	 	31.99	 	32.70	 	33.41	 	34.13	 	34.84	 	35.55
	 
	 	Service Delivery Specialist IV	 	Line Assigner II	 	$8.00	 	29.64	 	30.30	 	30.96	 	31.62	 	32.27	 	32.93
	3
	 	Service Delivery Specialist III	 	Line Assigner I	 	$6.25	 	27.30	 	28.06	 	28.81	 	29.57	 	30.33	 	 
	2
	 	Service Delivery Specialist II	 	Assistant Account Executive	 	$4.25	 	25.14	 	25.54	 	25.93	 	26.32	 	26.71	 	 
	1
	 	 	 	Dispatch and Repair Representative	 	$4.25	 	14.95	 	17.01	 	19.06	 	21.11	 	23.17	 	 
	 
	 	Service Delivery Specialist I	 	Service Order Representative	 	$4.25	 	14.95	 	17.01	 	19.06	 	21.11	 	23.17	 	 

- 75 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sales and Service Associate	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5	 	 
	 	 	2010 Classification Name	 	1999 Classification Name	 	P	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos	 	 
	 
	 
	 	General Lead, Sales and Service	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	Associate	 	General Lead/Foreman	 	(A)	 	(C)	 	 	 	 	 	 	 	 	 	 
	Level 4
	 	Lead Sales and Service Associate	 	Lead Business Service Representative	 	(A)	 	(B)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Sales & Service Representative, Lead	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Training Specialist (gf)	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	Sales and Service Associate III	 	Business Service Representative	 	$4.25	 	21.98	 	22.56	 	23.15	 	23.74	 	24.32	 	 
	2
	 	Sales and Service Associate II	 	Level III SSR, Workforce Analyst	 	 	 	21.10	 	21.38	 	21.66	 	21.94	 	22.22	 	 
	 
	 	Pension	 	Pension	 	 	 	4.00	 	4.25	 	4.25	 	4.25	 	4.25	 	 
	Level 1
	 	Sales and Service Associate I	 	Level II SSR	 	 	 	14.56	 	16.43	 	18.07	 	19.51	 	20.53	 	 
	 
	 	Pension	 	Pension	 	 	 	3.25	 	3.50	 	3.75	 	4.00	 	4.25	 	Pension
	 
	 	Level I SSR	 	Level I SSR	 	 	 	13.16	 	14.65	 	16.14	 	17.45	 	18.38	 	Vote
	 
	 	Pension	 	Pension	 	 	 	3.50	 	3.75	 	4.00	 	4.25	 	4.50	 	 
	 
	 	 	Technical Support Specialist	 	 	 	 	 	Step 1	 	Step 2	 	Step 3	 	Step 4	 	Step 5
	 	 	2010 Classification Name	 	1999 Classification Name	 	 	 	Start	 	6 mos	 	12 mos	 	18 mos	 	24 mos
	 
	 
	 	Lead Technical Support	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	Specialist	 	PC Support Foreman (gf)	 	(A)	 	(B)	 	 	 	 	 	 	 	 
	 
	 	 	 	Lead ITSRR	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	Techncial Support Specialist III	 	PC Support Technician	 	$4.25	 	17.35	 	19.56	 	21.76	 	23.96	 	26.17
	2
	 	 	 	Help Desk Technician	 	$4.25	 	17.35	 	19.12	 	20.88	 	22.65	 	24.42
	 
	 	Techncial Support Specialist II	 	Internet Technical Support & Repair Rep	 	$4.00	 	14.10	 	16.05	 	18.00	 	19.95	 	21.90
	1
	 	Technical Support Specialist I	 	Computer Operator I and II	 	$4.25	 	14.32	 	16.73	 	19.14	 	20.04	 	20.93

 

	Footnotes:
	 

			
	A	 	The Chief Shop Steward classification is paid at top hourly craft rate of pay.

- 76 -

 

APPENDIX II — WAGE INCREASES

	A.	 	Effective February 28, 2010, all employees covered by this collective bargaining agreement
will receive a two and one-half percent (2.5% ) wage increase.
	 
	B.	 	Effective January 1, 2011, all employees covered by this collective bargaining agreement will
receive a two and one-half percent (2.5% ) wage increase.
	 
	C.	 	Effective January 1, 2012, all employees covered by this collective bargaining agreement will
receive a two and one-half percent (2.5% ) wage increase.

- 77 -

 

APPENDIX III — SUPPLEMENTAL SICK PAY

SUPPLEMENTAL SICK PAY (SSP) Any FMUS employees with cashable SSP shall be cashed out not later than
two (2) pay periods after the effective date of this Agreement.

- 78 -

 

APPENDIX IV — DEFINITIONS

Foreman — an employee who is in one of the following positions: General Foreman, Foreman or Lead.

Specialty — a specialized skill set which allows an employee to perform a category of functions or
tasks (e.g., installation, maintenance and repair of PBX systems) within a classification.
Employees may have multiple specialties that are applicable beyond their current classifications.

Skill Group — a group of employees who share a Specialty and who may be grouped together on a
common Overtime List or Standby List.

Work Group — the organizational entity (e.g., department) to which employees are normally assigned
to work (e.g., Construction, Field Services, Central Office). A Work Group may consist of multiple
Skill Groups with differing Specialties

OT Work Group — eligible, qualified employees included on a list identifying those available for
overtime opportunities within a Work Group.

Job Families — job classifications grouped together into categories or occupational series based
on primary work functions (e.g., sales and service, fleet services, materials management) to
facilitate assignment and supervision of work, training and development, and career advancement.

Journeyman — an employee who has either successfully completed an IBEW or other apprenticeship
program or otherwise attained journeyman status through experience and education.

Promotional Opportunity — a bidding situation where the total of the top wage and pension of the
applicant’s current classification is less than the total of the top wage and pension for the
classification for which applicant has applied.

Driver’s License — for positions requiring a driver’s license, an Alaska driver’s license, or for
applicants who are exempt by State or federal law (e.g. military dependents) proof from any state’s
department of motor vehicles is required. Employees hired into a classification requiring a valid
driver’s license shall be required to provide proof of an Alaska Driver’s License within thirty
(30) days of hire.

Frozen Wage — a wage rate that by specific agreement has been maintained at a level above the
negotiated wage rate at the time the rate was frozen; a Frozen Wage is not increased by the
percentage amount negotiated for general wage increases unless and until the maximum rate for the
classification equals, or exceeds the Frozen Rate, after which the Frozen Rate expires and the
classification wage rate maximum applies.

- 79 -

 

Grandfathered Wage — A wage rate that by specific agreement has been maintained at a level above
the negotiated wage rate; a Grandfathered Wage is increased by the percentage amount negotiated for
general wage increases, notwithstanding that the increased rate may be above the maximum rate for
the classification.

- 80 -

 

APPENDIX V — SCHEDULE A AND B FOR SECTIONS 13.1 AND 13.4

	 	 	 
	Schedule A	 	Schedule B
	Chief Shop Steward

	 	Business Support Specialist
	Facility Maintenance Foreman
(Electrician)

	 	Facility Maintenance Foreman (except
Electrician)
	Facility Maintenance
Technician (Electrician)

	 	Facility Maintenance Technician (except
Electrician)
	Field Technician Foreman

	 	Lead Business Support Specialist
	Field Technician

	 	Fleet Service Technician I
	Fleet Service Foreman

	 	Fleet Service Technician II
	Fleet Service Technician III

	 	General Lead
	General Foreman

	 	Materials Management Foreman
	Network Engineer Foreman

	 	Materials Management Specialist
	Network Engineer

	 	Sales and Service Associate
	Network Technician Foreman

	 	Lead Sales and Service Associate
	Network Technician

	 	Service Delivery Specialist (except SDS IV)
	Service Delivery Specialist IV

	 	Lead Service Delivery Specialist (except
over SDS IV)
	Lead Service Delivery
Specialist over SDS IV

	 	Technical Support Foreman
	Systems Engineer Foreman

	 	Technical Support Specialist
	Systems Engineer
	 	 

- 81 -

 

APPENDIX VI — SCHEDULE A AND B FOR SECTION 7.1

	 	 	 
	Schedule A Classification Family	 	Schedule B Classification Family
	Network Technician

	 	Network Engineer
	Field Technician

	 	Systems Engineer
	Facility Maintenance Technician

	 	Business Support Specialist
	Fleet Service Technician

	 	Service Delivery Specialist
	Materials Management Specialist

	 	Sales & Service Associate
	 

	 	Technical Support Specialist

- 82 -

 

Appendix VII

CLASSIFICATION FAMILY MAPPING

	 	 	 
	Classifications before 1/1/2010	 	Classifications as of 1/1/2010
	Assistant Account Executive

	 	Service Delivery Specialist II
	Automated Provisioning Specialist

	 	Service Delivery Specialist IV
	Business Service Representative

	 	Sales and Service Associate III
	Cellular Technician — Field

	 	Field Technician
	Cellular Technician — Switch

	 	Network Technician
	Chief Shop Steward

	 	Chief Shop Steward
	 
	 	 
	Clerical Specialist

	 	Business Support Specialist I
	CNS Foreman

	 	Network Technician Foreman
	Collection Specialist

	 	Business Support Specialist III
	Payroll Specialist

	 	Business Support Specialist III
	Computer Operator I

	 	Technical Support Specialist I
	Computer Operator II

	 	Technical Support Specialist I
	CT Engineer III

	 	Network Engineer IV
	CT Engineering Foreman

	 	Network Engineer Foreman
	CT Engineering Foreman in Service Delivery

	 	Lead Service Delivery Specialist
	CT Foreman

	 	Network Technician Foreman

Field Technician Foreman
	CT/Bush Technicians

	 	Field Technician
	CT/Cable Splicer

	 	Field Technician
	CT/Data Technician

	 	Network Technician
	CT/Facility Technician

	 	Field Technician
	CT/Field Service Technician

	 	Field Technician
	CT/IP

	 	Network Technician
	CT/ISP Inspector

	 	Network Technician
	CT/Lineman

	 	Field Technician
	CT/Microwave

	 	Network Technician
	CT/Network Installer

	 	Network Technician
	CT/Network Switching Tech

	 	Network Technician
	CT/NonJrny Bush Techs

	 	NonJrny Field Technicians
	CT/OSP Inspector

	 	Field Technician
	CT/PayStation I & R

	 	Field Technician
	CT/PBX I & R

	 	Network Technician
	Customer & Network Support Technicians

	 	Network Technician
	Customer Service Representative

	 	Business Support Specialist IV
	Dispatch & Repair Representative

	 	Service Delivery Specialist I
	Distribution Specialist

	 	Materials Management Specialist I
	End User Billing Representative

	 	Business Support Specialist V
	Engineer I

	 	Network Engineer II
	Engineer II

	 	Network Engineer III

- 83 -

 

	 	 	 
	Classifications before 1/1/2010	 	Classifications as of 1/1/2010
	Engineer II in Service Delivery

	 	Service Delivery Specialist V
	Engineering Tech

	 	Network Engineer I
	Facility Maintenance Custodian

	 	Facility Maintenance Technician I
	Facility Maintenance Foreman

	 	Facility Maintenance Foreman
	Facility Maintenance Person

	 	Facility Maintenance Technician II
	General Foreman

	 	General Foreman
	General Lead/Foreman

	 	General Lead
	Help Desk Technician

	 	Technical Support Specialist II
	Internet Technical Support & Repair 

Representative

	 	Technical Support Specialist II
	IP Engineer Foreman

	 	Systems Engineer Foreman
	IP Engineer I

	 	Network Engineer I
	IP Engineer II

	 	Systems Engineer I
	IP Engineer III

	 	Systems Engineer II
	Journeyman Mechanic

	 	Fleet Service Technician III
	Lead Assistant Account Executive

	 	Lead Service Delivery Specialist
	Lead Business Sales Representative

	 	Lead Sales and Service Associate
	 
	 	 
	Lead Customer Service Representative

	 	Lead Business Support Specialist
	Lead Dispatch & Repair Representative

	 	Lead Service Delivery Specialist
	Lead End User Billing Representative

	 	Lead Business Support Specialist
	Lead Internet Technical Support &

Repair Representative

	 	Lead Technical Support Specialist
	Lead Line Assigner

	 	Lead Service Delivery Specialist
	Lead Payroll Specialist

	 	Lead Business Support Specialist
	Lead Sales & Service Representative

	 	Lead Sales and Service Associate
	Lead Service Order Representative

	 	Lead Service Delivery Specialist
	Lead Sr Clerical Specialist

	 	Lead Business Support Specialist
	Line Assigner I

	 	Service Delivery Specialist III
	Line Assigner II

	 	Service Delivery Specialist IV
	Materials Specialist

	 	Materials Management Specialist I
	Mechanic Foreman

	 	Fleet Service Foreman
	Mechanic Helper

	 	Fleet Service Technician I
	Mechanic Parts Person

	 	Fleet Service Technician II
	Non-Journey Mechanic

	 	Fleet Service Technician II
	PC Support Foreman

	 	Lead Technical Support Specialist
	PC Support Technician

	 	Technical Support Specialist III
	Sales & Service Representative I

	 	Sales and Service Associate I
	Sales & Service Representative II

	 	Sales and Service Associate I
	Sales & Service Representative III

	 	Sales and Service Associate II
	Service Order Representative

	 	Service Delivery Specialist I
	Sr Clerical Specialist

	 	Business Support Specialist II

- 84 -

 

	 	 	 
	Classifications before 1/1/2010	 	Classifications as of 1/1/2010
	Systems Development Specialist

	 	Network Engineer II.a
	Training Specialist

	 	Lead Sales and Service Associate
	Warehouse Assistant

	 	Warehouse Assistant
	Warehouse Foreman

	 	Materials Management Foreman
	Warehouseman

	 	Materials Management Specialist II.a
	Workforce Analyst

	 	Sales and Service Associate III

- 85 -

 

LETTER OF UNDERSTANDING — SEVERANCE FREEZE

The Company agrees to freeze the entitlement weeks of severance pay for the following employees at
the indicated levels:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	WEEKS OF	 
	 	 	 	 	NAME	 	ENTITLEMENT	 
	JUNEAU DOUGLAS 	 	Albert F. Bixby
	 	 	21	 
	 	 	 	 	Kenneth W. Coate
	 	 	29	 
	 	 	 	 	Thomas A. Karpstein
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Stephen M. Treston
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	GLACIER STATE	 	Theodore P. Goossen
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Rick G. Olson
	 	 	29	 

In the event any of the foregoing employees are laid off from employment from the bargaining unit,
they shall receive the above-referenced weeks of severance pay in lieu of that amount provided for
in the Agreement, unless the Agreement provides for a greater amount in which case the Agreement
shall prevail.

- 86 -

 

LETTER OF UNDERSTANDING — GRANDFATHERED WAGE RATES

Former PTI employees who remain continuously employed in the classifications listed below will
receive grandfathered wage rates and applicable wage increases. This grandfathered wage rate will
remain in effect through 11:59 pm on December 31, 2012, and thereafter shall be frozen until the
negotiated rate meets or exceeds their frozen rate.

	 	 	 

	CT/Network Switching Technician
	 
	ATU

	 	Deanna C. Baker
	 
	 	 
	Engineer II
	 
	PTI/Century

	 	David H. Hopkins
	ATU

	 	Shari R. Torkelson
	 
	 	 
	Senior Clerical Specialist
	 
	PTI/Century

	 	Mary C. Arness
	PTI/Century

	 	Pamela J. Miller
	PTI/Century

	 	Donna J. Reese
	 
	 	 
	CT Field Services Foreman
	 
	ATU

	 	Charlie Breitenstein

- 87 -

 

Applicable ACS regular employees who were reclassified to the Sales and Service Representative or
the Internet Technical Support Repair Representative classifications and who remain continuously
employed will receive a grandfathered wage rate and applicable wage increases. This grandfathered
wage rate will remain in effect through 11:59 pm on December 31, 2012, and thereafter shall be
frozen until the negotiated rate meets or exceeds their frozen rate.

	 	 	 

	Sales & Service Representatives I
	 
	Elinor A. Banisch
	 	 
	 
	 	 
	 
	Sales & Service Representatives II
	Brenda Brewer

	 	Marjorie G. Miscovich
	Cheryl A. Brouillette

	 	Jaime S. Myers
	Rita A. Brown

	 	Madeline M. Nutting
	Sheree R. Bustamante

	 	Valerie A. Pierce
	Joy D. Chirigotis

	 	Katheryn D. Powell
	Janice A. Conger

	 	Margaret A. Raven
	Bruce M. Congleton

	 	Sharlene M. Richard
	Elizabeth Cornelius

	 	Grace E. Santini
	Tamra K. Day

	 	Terry L. Schlotfeldt
	Lenora R.Hagan

	 	Terry R. Sheffield
	Sandra A. Harley

	 	Mona E. Sim
	Vivian B. Hitchcock

	 	Rayna M. Smith
	Bettyann Hogan

	 	Phyllis D. Snow
	Julie-Ann Howard

	 	D Jeanne. Taylor
	Danielle M. Huffman/Burke

	 	Shirley A. Wallingford
	Teresa L. Hurley

	 	David E. Wasson
	Teresa G. Lester

	 	Peggy A. Woods
	Anita C. Licalsi
	 	 
	 
	 	 
	Sales & Service Representatives III
	 
	Raechel C. McClaskey/McClune

	 	Donna A. Stenvik
	Laurie J. Phillips

	 	Melanie Swanson
	LaNene D. Scott

	 	Trena L. Sylvia
	Viola Stroud

	 	Carrie A. Van De Hei
	Angela L. Wright
	 	 

- 88 -

 

	 	 	 

	Lead Sales & Service Representatives
	 
	 
	Philip M Ahlvin

	 	A Bobette McKirgan
	Rebecca Cameron

	 	Tammy W Miller
	Debra S. Davis

	 	Tonya E Nehren
	Barbara J Flaherty/Snell

	 	Tamara Watts
	Megan E Garzel

	 	Temple M Wingfield
	Eric Hoosier
	 	 

	 	 	 

	Internet Technical Support & Repair Representative
	 
	 
	 	 
	Pamela A. Adams

	 	Melinda O. Jacobson
	Delores M. Allenbrand

	 	Johnnie C. Knapp
	Laura Castleman

	 	Max Norvell
	Diane R. Corbin

	 	Lycra S. Pitts
	Joyce Davis

	 	Mary R. Reza
	Andrew J. Garzel
	 	 

Former ATU employees who remain continuously employed will receive grandfathered longevity. These
employees will receive negotiated increases to the applicable base rate for the job classification.
The longevity rate will then be added to the employee’s adjusted base wage.

This grandfathered longevity rate (base rate subject to increases, plus fixed longevity rate) will
remain in effect through 11:59 pm on December 31, 2012, and thereafter the total amount of the base
rate plus longevity as of that date shall be frozen until the negotiated rate meets or exceeds
their frozen rate (wage + longevity).

	 	 	 

	Harold H Campbell

	 	R C Peck
	Judy M Clay

	 	Mrunal R Phadnis
	H Brad deMontfort

	 	Viola Stroud
	Warren G Hamilton

	 	Victor F Vercher
	Kim E Morrison

	 	Michael W White
	Jeffrey M Muller

	 	Roy N Wilson

- 89 -

 

LETTER OF UNDERSTANDING — ACHIEVERS OF EXCELLENCE

ACS administers a program called “Achievers of Excellence” that provides recognition for employees
who have exemplified the Company’s:

	 	•	 	Values of ownership, performance, customer service, integrity, urgency and
commitment, teamwork and individuality, social responsibilities, and responsibility and
accountability;
	 
	 	•	 	Commitment to growing our number of loyal customers; and
	 
	 	•	 	Drive to compete as an integrated telecommunications provider.

The IBEW shares the Company’s goal of pursuing excellence and supports its members in
demonstrating the Achievers of Excellence values, commitment and drive.

The Company and the Union acknowledge that terms and conditions of employment are a matter of
collective bargaining for those workers represented by the IBEW. However, the parties also
recognize that it can be an advantage in a high performance environment to recognize and reward
exemplary performance promptly and in a manner that is appropriate under the circumstances.

Accordingly, the Union agrees that the Company may include the represented employees in the
Achievers of Excellence program, subject to the following:

	 	1)	 	Awards under the program may be in the form of cash, a gift (e.g., a gift
card, a product, a recognition lunch, etc.), or time off (permission to leave work an
hour early on a given day).
	 
	 	2)	 	Awards may not be made in excess of $250 in value to any individual
represented employee without prior notice to and consent of the Union.
	 
	 	3)	 	An award may not be made to the same employee more than once in any calendar
quarter.
	 
	 	4)	 	The issuance of any awards is within the Company’s discretion, although a
recommendation for an award to a represented employee may come from within the
represented workforce, from a customer, or from the IBEW leadership.
	 
	 	5)	 	The decision to issue or not issue an award shall not be subject to the
grievance procedure, except that the Union may file a grievance at the Second Step of
the Grievance Procedure if it has a good faith reason to believe the Company has
administered the program in a manner that willfully discriminated against an employee
for Union activity or in violation of Section 1.13 (Non-Discrimination).
	 
	 	6)	 	The Company will ensure that awards are made in a fair and impartial manner,
and that employees across the bargaining unit are given consideration for awards on an
equitable basis.

- 90 -

 

LETTER OF UNDERSTANDING — ENTERPRISE LINE OF BUSINESS

1. Enterprise Line of Business

1.1 The ACS Enterprise Line of Business (ELOB) is focused on serving large scale commercial,
carrier and government customers. Provision of ELOB services requires an integrated program
management structure to operate components that include a fiber optic cable connecting Alaska to
the Contiguous United States (CONUS), a diverse fiber optic route between Anchorage and Fairbanks,
an in-state fiber network to selected enterprise customer premise locations, and a Vendor operated
Network Operations Center (NOC) in CONUS-based hosted facilities.

1.2 The Company’s Enterprise Business Plan is a strategic initiative to maintain revenue growth as
traditional services, such as local exchange telephone services, may decline. The ELOB initiative
also represents a significant opportunity for the Company’s represented workforce to develop new
skills and enhance their professional capabilities and future employment opportunities. The
parties are jointly committed to supporting the successful execution of the Enterprise Business
Plan, while concurrently overseeing the skills upgrade and training of the represented workforce to
enable them to be successful and participate in the Company’s growth.

2. Integrated Program Management Structure

2.1 The ELOB operates with a multi-location Integrated Network Management Center (I-NMC), linking
the Company’s Network Operations Control Center in Anchorage (“Anchorage NOCC”) with the Nortel
CONUS-based Network Operations Control Center (“Vendor NOC”). The Vendor NOC is a hosted facility,
which includes access to redundant Vendor facilities in other CONUS locations. These hosted
facilities can only be operated by Vendor’s employees (“Vendor Staff”). The I-NMC provides the
essential business continuity, capabilities and best practices required by sophisticated Enterprise
customers and is necessary to the success of the ELOB venture.

2.2 Achievement of uninterrupted network monitoring, trouble resolution and managed services
offered by the I-NMC necessarily results in a sharing of certain defined responsibilities and job
functions between the Anchorage NOC and the Vendor NOC. Such sharing involves work performed by
Bargaining Unit members in Anchorage and accordingly requires the agreement and cooperation of the
Union, as set forth in this Letter of Understanding (“LOU”).

3. Anchorage NOC

3.1 To support the functionality of the I-NMC, the Anchorage NOC will be fully equipped to provide
access to the same systems and technical capabilities that are available in the Vendor NOC. This
includes installation of the necessary equipment, such

- 91 -

 

as software, servers and work stations in the Anchorage NOC.

3.2 The Anchorage NOC is staffed by represented employees of the Customer Support and Network
Management Group (“ACS Staff”), a multi-skilled workforce trained to handle the following two
primary areas of responsibility: (1) Managed Services for supporting enterprise customers, and (2)
Network Operations..

4. Cooperative Sharing Arrangement.

4.1 Work currently performed by represented ACS employees falling under these shared
responsibilities and the I-NMC is and shall remain Bargaining Unit work . The Union has entered
into this cooperative sharing arrangement to facilitate the success of the Enterprise Business Plan
and to provide opportunities to Bargaining Unit members to enhance their skill sets and enjoy more
rewarding careers.

4.2 Pursuant to this LOU, ACS Staff and Vendor Staff, in jointly supporting the integrated
functions of the I-NMC, will share the responsibilities for performing the monitoring, surveillance
and performance management of the ACS network with regard to functions related to reporting,
escalations, 1st level restoration, internal and external coordination. These shared
responsibilities and the procedures for their implementation are documented in the Operations Plan,
which has been furnished to the Union. This Operation Plan follows and implements the guidelines
set forth below. The Company will notify the Union in advance and offer the opportunity for
comment before making substantive modifications to the Operations Plan in the future. To the
extent that the effect of any such proposed modifications would be to alter the terms of this LOU
or negatively impact the Bargaining Unit, the Parties will reach mutual agreement prior to
implementation of the changes.

5. Guidelines for the Multi-Location I-NMC

5.1 Staffing and Operations:

	 	a.	 	The I-NMC will operate on a 7x24 basis, 365 days a year.
	 
	 	b.	 	It will be jointly staffed by Vendor Staff based in Vendor locations and
Alaska-based ACS Staff. Both Vendor and ACS shall contribute staff for every shift and
this multi-location team will jointly monitor the entire ACS network.
	 
	 	c.	 	ACS Staff assigned to the I-NMC shall be subject to the terms of the Collective
Bargaining Agreement.
	 
	 	d.	 	Specific team size for every shift in the Anchorage NOC shall be determined by
the Company.
	 
	 	e.	 	The Anchorage NOC will use the systems infrastructure (e.g. software, servers,
work stations) provided by the Vendor.
	 
	 	f.	 	Operation of the I-NMC will follow detailed processes and procedures to be
developed jointly by ACS and Vendor.

- 92 -

 

	 	g.	 	ACS Staff will be trained and equipped to perform all essential I-NMC functions
performed by Vendor staff, ensuring parity of skills within the team.

5.2 I-NMC Monitoring Activities:

	 	a.	 	Support the ACS network, including wireline, wireless, internet, local, long
distance, voice, data, submarine, terrestrial, various applications (e.g., voice mail,
etc.) and other services, both within and outside of Alaska.
	 
	 	b.	 	Reactive fault management, which consists of:

	 	i.	 	network alarm monitoring, and
	 
	 	ii.	 	1st level restoration.

	 	c.	 	Fault escalations for restoration purposes to appropriate ACS Staff or network
element Vendors (e.g., Nortel, Cisco, etc.) based on defined processes and procedures.
	 
	 	d.	 	Monitoring and reporting network change management activity and compliance with
the Company’s current network change control policies and procedures.
	 
	 	e.	 	Monitoring and reporting of all outages, including the reporting of progress,
internal and third party coordination, resolution escalations as appropriate, etc.
	 
	 	f.	 	Serving as a point of contact for Lawful Intercept requests from law
enforcement, including any Emergency Call Tracing, as authorized by the Company’s legal
department or pursuant to established ACS policies and procedures.
	 
	 	g.	 	Maintaining familiarity with and adherence to customer Service Level Agreement
(“SLA”) service levels and monitoring of customer specific solutions (e.g., E911,
etc.), in order to escalate problems immediately within ACS.

5.3 Call Outs:

	 	a.	 	Call outs of Tier 3 Staff or other ACS resources necessary to address customer
initiated trouble calls shall primarily be made by the ACS Customer Support and Network
Management Group or by the ACS dispatch function, as warranted.
	 
	 	b.	 	If circumstances arise where the Vendor NOC becomes aware of a need to initiate
a call out to address customer initiated trouble calls the Vendor Staff will report the
need to the Anchorage NOC. Only in a service affecting situation when the Anchorage
NOC is unable to make the call out, for whatever reason, will the Vendor NOCC attempt
to contact ACS Tier 3 Staff directly.
	 
	 	c.	 	All “call outs” will be executed in a manner necessary to meet SLAs and
consistent with safe working procedures.
	 
	 	d.	 	Call outs for non customer initiated trouble calls will be made by the I-

- 93 -

 

	 	 	 	NMC staff of either the Vendor or ACS.

5.4 Catastrophic Failures:

	 	a.	 	In the case of a catastrophic failure of the Anchorage NOC, the Vendor NOC
shall become the primary NOC with all responsibilities of reporting any outages or
system failures, escalations, internal and external coordination of the total ACS
network.
	 
	 	b.	 	In the case of a catastrophic failure of the Vendor NOC, the Anchorage NOC may
be assigned some or all of the Vendor NOC responsibilities or may work with a back-up
Vendor NOC if necessary.

5.5 ACS Customer Support and Network Management Group:

	 	a.	 	Staff the Anchorage NOC for performing the functions described above.
	 
	 	b.	 	Perform the responsibilities of Tier 2 Trouble Resolution and Managed Services
Desk.

6. Training and Development of ACS Staff

6.1 ACS views network monitoring as a core competency. Accordingly, the Company shall train and
maintain the skills to effectively perform network monitoring activities as a long-term part of its
Enterprise Business Plan.

6.2 The Company shall develop and maintain a Comprehensive Training Program to provide the
necessary training and certifications for Bargaining Unit employees assigned to the Customer
Support and Network Management Group. It is understood that ongoing training on Enterprise
customer requirements, including SLA’s and new services, technologies, and equipment needed to
serve these customers, will be covered under the training program.

6.3 ACS shall invest no less than $250,000 per year for 2010 and 2011 for the Comprehensive
Training Program and other training for Bargaining Unit employees in the Network functional area,
which includes the Customer Support and Network Management Group. The Company will meet with the
Union annually, on or before March 1 of each year, to provide an overview of the Comprehensive
Training Program and such other training planned for the Network functional area.

6.4 These training programs will be designed to provide the Bargaining Unit employees with the
skills needed to support the Company’s current and potential new lines of business, respond to
technology changes and expand employment opportunities for the represented workforce.

6.5 The Company agrees that no represented ACS employee will lose employment as a result of this
sharing of responsibilities and the necessity of any work being performed

- 94 -

 

by such Vendor NOC. Further, ACS Staff will be maintained at a level that permits adequate
staffing of the Anchorage NOC and supports the training and development commitments to the
employees.

7. Subcontracting

7.1 Terrestrial cable-related construction and maintenance activities in Alaska will be governed by
the relevant provisions of the Collective Bargaining Agreement. This includes right of way
clearing, installation of power to the structures or in the structures, for telecommunications
cable and equipment design and installation up to the demarcation at the SONET Interface to the
Submarine Line Terminating Equipment (SLTE).

8. Implementation, Interpretation and Dispute Resolution

This LOU represents the parties’ full and final agreement addressing issues arising from the
development, design, construction and operation of the ELOB.

This LOU does not expand the scope of Bargaining Unit work.

All terms in this LOU shall be construed and interpreted under the framework of the Collective
Bargaining Agreement. However, to the extent that any specific provision of this LOU is
inconsistent with the terms of the Collective Bargaining, this LOU shall control.

To facilitate prompt resolution of any disputes arising under this LOU, a grievance related to and
arising under the terms of this LOU may be brought at the second step of the grievance procedure.

For purposes of this LOU “1st level restoration” is defined as the initial process of remote fault
clearing, problem resolution and device restoration. Examples include circuit resets, software
reloads, processor activity switch, protect patch switch, etc.

The parties agree to meet and resolve outstanding issues relating to all Cable Landing Stations in
Alaska (Whittier, Valdez and Lena Point) by September 30, 2009.

- 95 -

 

SIGNATURE PAGE

Approved by:

	 	 	 

	Alaska Communication System

	 	International Brotherhood of Electrical Workers
	 
	 	 
	/s/ Liane J. Pelletier

	 	/s/ Larry W Bell
	 

	 	 
	Liane J. Pelletier

	 	Larry W Bell, Business Manager and
	CEO and President

	 	Financial Secretary
	Date: 2/25/2010

	 	IBEW Local 1547
	 

	 	Date: 2-19-10

- 96 -

 

ALPHABETICAL INDEX

	 	 	 	 	 

	Network Engineer III Classification
	 	 	30	 
	401(k) Savings Plan
	 	 	65	 
	Alchohol Abuse
	 	 	35	 
	Alternate Schedules
	 	 	 	 
	Alternative Regular Lunch Schedules
	 	 	44	 
	Five Day — Ten Hours Workweek
	 	 	47	 
	Floater Position
	 	 	46	 
	Four Day — Ten Hour Workweek
	 	 	46	 
	Nine Day — Eighty Hour Workweek
	 	 	46	 
	Alternate Workweek
	 	 	46	 
	Alternate Workweek and Workdays
	 	 	45	 
	Alternative Regular Lunch Schedules
	 	 	44	 
	Amendment of Agreement
	 	 	2	 
	Annual Performance Evaluation Program
	 	 	24	 
	APPENDIX I — WAGE STRUCTURE
	 	 	71	 
	Apprentice
	 	 	20	 
	Ratio to Journeyman
	 	 	20	 
	Temporary
	 	 	20	 
	Temporary Frame Apprentices
	 	 	20	 
	Apprenticeship Training
	 	 	65	 
	Arbitration
	 	 	11	 
	Bargaining Unit Seniority
	 	 	23	 
	Benefits
	 	 	 	 
	401(k) Savings Plan
	 	 	65	 
	Communications Services
	 	 	66	 
	Hardship and Benevolent Fund
	 	 	67	 
	Health and Welfare Plan
	 	 	64	 
	Long Term Disability Income Insurance Plan
	 	 	66	 
	Money Purchase Pension Plan
	 	 	65	 
	Movement of Monies
	 	 	66	 
	Retirement
	 	 	29, 65	 
	Survivor Income Benefits
	 	 	65	 
	Bereavement Leave
	 	 	61	 
	Bid Committees
	 	 	15	 
	Bulletin Boards and E-Mail
	 	 	8	 
	Bumping Rights
	 	 	32	 
	Call-Out Pay
	 	 	50	 
	Chief Shop Steward(s)
	 	 	8	 
	Classification Committee
	 	 	18	 
	Climbing Safety During Long Periods of Extreme Cold
	 	 	41	 
	Communication Services
	 	 	66	 
	Complaint Procedure
	 	 	10	 
	Compliance with Company Work Rules
	 	 	35	 
	Continuous Service Date
	 	 	23	 
	Core Business Times
	 	 	28	 
	Definitions
	 	 	 	 
	Foreman
	 	 	37, 79	 
	Job Share
	 	 	19	 
	Regular Employees
	 	 	18	 
	Regular Part-Time Employees
	 	 	18	 
	Definitions and Presentation of Grievances
	 	 	10	 
	Designation of Employees
	 	 	18	 
	Regular
	 	 	18	 
	Regular Part-Time
	 	 	18	 
	Temporary
	 	 	18	 
	Discipline
	 	 	12	 
	Removal of Disciplinary Actions
	 	 	13	 
	Termination of Employment
	 	 	13	 
	Distribution of Overtime
	 	 	51	 
	Dress Code
	 	 	35	 
	Drug Testing
	 	 	35	 
	Dues Deduction
	 	 	7	 
	Eight-Hour Break
	 	 	48	 
	Emergency Leave
	 	 	60	 
	Employee Safety Performance Targets and Measures
	 	 	41	 
	Failure to Meet
	 	 	42	 
	Exit Incentive Program
	 	 	33	 
	Familiarization Period after Promotion or Lateral Move
	 	 	23	 
	Family Members
	 	 	24	 
	Five Day — Ten Hours Workweek
	 	 	47	 
	Flexible Time Off (FTO)
	 	 	 	 
	Accrual Limits
	 	 	58	 
	Accrual Rate Increases
	 	 	58	 
	Annual Scheduling of
	 	 	29, 59	 
	Cash in of
	 	 	62	 
	The 20% Rule
	 	 	59	 
	Flex-Time
	 	 	47	 
	Floater Position
	 	 	46	 
	Foreman
	 	 	37	 
	General Foreman
	 	 	37	 
	Line Foreman
	 	 	39	 
	Project Foreman
	 	 	39	 
	Supervisory Numbers
	 	 	37	 
	Four Day — Ten Hour Workweek
	 	 	46	 
	FTO 
	See Flexible Time Off (FTO)	 
	General Foreman
	 	 	37	 
	Compensation
	 	 	38	 
	Grievance Procedure
	 	 	10	 
	Arbitration
	 	 	11	 
	Step One
	 	 	11	 
	Step Two
	 	 	11	 
	Health and Welfare Plan
	 	 	64	 
	for Part-Time Employees
	 	 	19	 
	for Temporary Employees
	 	 	19	 
	Reimbursement of Shop Steward premiums
	 	 	64	 
	High Time
	 	 	51	 
	Holidays
	 	 	56	 
	IBEW Hardship and Benevolent Fund
	 	 	67	 
	Incidental Illness
	 	 	 	 
	Call-In Procedures
	 	 	60	 
	Requirement for Doctor’s Certification
	 	 	60, 61	 
	Incidental Time Off Requests
	 	 	59	 
	Inclement Weather
	 	 	43	 

- 97 -

 

	 	 	 	 	 

	Indemnification
	 	 	7	 
	IP Engineer
	 	 	 	 
	Retirement
	 	 	29	 
	Shifts and schedules
	 	 	27	 
	Wage Rates
	 	 	28	 
	Work Out of Classification
	 	 	27	 
	Workweek and Workday
	 	 	27	 
	IP System Engineers
	 	 	27	 
	Job Awards
	 	 	15	 
	Job Bidding
	 	 	15	 
	Non-Rep to Rep
	 	 	15	 
	Temporary Employees
	 	 	15	 
	Waivers
	 	 	15	 
	Job Classifications
	 	 	17	 
	Job Notice
	 	 	15	 
	Job Posting
	 	 	15	 
	Job Share
	 	 	 	 
	Definition of
	 	 	19	 
	Flexible Time Off (FTO)
	 	 	19	 
	Health and Welfare Benefits
	 	 	19	 
	Holidays
	 	 	19	 
	Participation in Lieu of Layoff
	 	 	32	 
	Termination, Promotion, or Transfer During
	 	 	19	 
	Jury Duty
	 	 	61	 
	Language Code
	 	 	35	 
	Lateral Transfers
	 	 	16	 
	Layoff Procedure
	 	 	 	 
	Job Share
	 	 	32	 
	Layoff Procedure
	 	 	32	 
	Bumping Rights
	 	 	32	 
	Layoff Allowance
	 	 	86	 
	Notice of
	 	 	32	 
	Reassignments Within Company
	 	 	32	 
	Recall Rights
	 	 	32	 
	Seniority Dates
	 	 	32	 
	Severance Freeze
	 	 	86	 
	Leave
	 	 	 	 
	Emergency Leave
	 	 	60	 
	Long-Term Leave of Absence
	 	 	60	 
	Military Leave
	 	 	62	 
	Short-Term Leave of Absence Without Pay
	 	 	60	 
	Line Foreman
	 	 	39	 
	Lockers
	 	 	70	 
	Long Term Disability
	 	 	 	 
	Income Insurance Plan
	 	 	66	 
	Management Rights
	 	 	6	 
	Meal Allowance
	 	 	48	 
	Call Out
	 	 	48	 
	Contiguous to Shift
	 	 	48	 
	Within Regular Service Area
	 	 	49	 
	Meals
	 	 	53	 
	Military Leave
	 	 	62	 
	Money Purchase Pension Plan
	 	 	65	 
	Movement of Monies
	 	 	66	 
	Moving Expenses 33, See Relocation Provisions
	 	 	 	 
	NECA Temporary Employees
	 	 	19	 
	in Remote Locations
	 	 	21	 
	Work Out of Classification
	 	 	30	 
	Negotiations Upon Expiration of Contract
	 	 	2	 
	New Technology
	 	 	5	 
	Nine Day — Eighty Hour Workweek
	 	 	46	 
	No Layoff Clause
	 	 	31	 
	No Out-Of-State Job Transfer
	 	 	22	 
	Non-Consecutive Days Off
	 	 	 	 
	IP Engineers
	 	 	28	 
	Non-Discrimination
	 	 	5	 
	Overtime
	 	 	 	 
	Call-Out Pay
	 	 	50	 
	Distribution of
	 	 	51	 
	Holiday work
	 	 	50	 
	Overtime Lists
	 	 	51	 
	Pay Rates for Overtime
	 	 	50	 
	Pyramiding Prohibited
	 	 	50	 
	Scheduled Seventh Day
	 	 	50	 
	Part-Time Employees
	 	 	 	 
	Definition of
	 	 	18	 
	Health and Welfare Plan
	 	 	19	 
	Pay upon Termination
	 	 	69	 
	Paydays
	 	 	69	 
	Personal Vehicles
	 	 	70	 
	Political Action Committee Fund
	 	 	7	 
	Probationary Employees
	 	 	23	 
	Project Foreman
	 	 	39	 
	Pyramiding Prohibited
	 	 	50	 
	Recall Rights
	 	 	32	 
	Recognition
	 	 	3	 
	Relief
	 	 	47	 
	Relocation Provisions
	 	 	33	 
	Family Transportation
	 	 	33	 
	House Hunting
	 	 	34	 
	Temporary Living Assistance
	 	 	34	 
	Time Off During
	 	 	34	 
	Rest Periods
	 	 	48	 
	Retirement
	 	 	65	 
	Return to Work
	 	 	63	 
	Safety
	 	 	40	 
	Appropriate Dress
	 	 	35	 
	Climbing Safety
	 	 	41	 
	Devices
	 	 	40	 
	Employee Safety Performance Targets and Measures
	 	 	41	 
	Manholes
	 	 	40	 
	Responsibilities
	 	 	41	 
	Safety Committee
	 	 	41	 
	Safety/Training Meetings
	 	 	40	 
	Standards
	 	 	40	 
	Safety Inclement Weather
	 	 	43	 
	Salaried Employees
	 	 	 	 
	General Foreman
	 	 	38	 
	General Lead
	 	 	38	 

- 98 -

 

	 	 	 	 	 

	IP Engineers
	 	 	27,28	 
	Sales and Service Representative (SSR)
	 	 	25	 
	Shift Bidding
	 	 	25	 
	Scope of Agreement
	 	 	2	 
	Seniority
	 	 	 	 
	Bargaining Unit Seniority (Seniority)
	 	 	23	 
	Continuous Service Date
	 	 	23	 
	Seventh Scheduled Day Overtime
	 	 	50	 
	Severance Freeze
	 	 	86	 
	Shift Bids
	 	 	44	 
	Shift Differential
	 	 	47	 
	Shifts and Schedules
	 	 	 	 
	Changes to
	 	 	45	 
	Foremen
	 	 	44	 
	Posting of
	 	 	45	 
	Shift Bids
	 	 	44	 
	Standby
	 	 	 	 
	and the Overtime List
	 	 	51	 
	Offer of
	 	 	51	 
	Requirement to Respond
	 	 	51	 
	Scheduling of
	 	 	51	 
	Statutory Permits, Certificates and Licenses
	 	 	35	 
	Strikes, Lockouts & Picket Lines
	 	 	7	 
	Substance Abuse
	 	 	35	 
	Summer Student Hires
	 	 	21	 
	Pay Rate
	 	 	21	 
	Supplemental Sick Pay (SSP)
	 	 	63	 
	Supplemental Workers Compensation
	 	 	62	 
	Survivor Income Benefits
	 	 	65	 
	Table of Contents
	 	ii	 
	Temporary Employees
	 	 	 	 
	Acting Assignments
	 	 	30	 
	Apprentice
	 	 	20	 
	Distribution of Overtime
	 	 	52	 
	Frame Apprentice
	 	 	20	 
	Health and Welfare Plan
	 	 	19	 
	Job Bidding
	 	 	15	 
	NECA
	 	 	19	 
	Personal Holidays
	 	 	57	 
	Summer Student Hires
	 	 	21	 
	Term of Agreement
	 	 	2	 
	Time Changes
	 	 	48	 
	Tools
	 	 	70	 
	Training
	 	 	 	 
	for Frame Apprentices
	 	 	20	 
	IP Engineer
	 	 	27	 
	Training Poisitions
	 	 	16	 
	Transfer of Work
	 	 	22	 
	Transportation
	 	 	 	 
	Personal Vehicles
	 	 	70	 
	Travel Expenses
	 	 	 	 
	NECA per diem
	 	 	21	 
	Travel for Training
	 	 	53	 
	Travel to Perform Work
	 	 	54	 
	Union Business Representative
	 	 	8	 
	Union Duty
	 	 	9	 
	Union Right to Discipline Members
	 	 	9	 
	Union Security
	 	 	7	 
	Unscheduled Absence
	 	 	60	 
	Requirement for Doctor’s Certification
	 	 	61	 
	Use of Company’s Time, Equipment or Material
	 	 	35	 
	Vendor Agents
	 	 	5	 
	Wages
	 	 	 	 
	Engineer (Salaried)
	 	 	28	 
	Extended Hours for Salaried IP Engineers
	 	 	28	 
	General Foreman
	 	 	38	 
	Increases
	 	 	69	 
	Pay Upon Termination
	 	 	69	 
	Paydays
	 	 	69	 
	Rates
	 	 	50	 
	Student Summer Hires
	 	 	21	 
	Weather Conditions
	 	 	 	 
	Climbing During Extreme Cold
	 	 	41	 
	Inclement Weather
	 	 	43	 
	Work Out of Classification
	 	 	 	 
	Acting Foremen
	 	 	30	 
	IP Engineer
	 	 	27	 
	Management Positions
	 	 	31	 
	Management Positions
	 	 	27	 
	NECA Temps and
	 	 	30	 
	Pay
	 	 	30,31	 
	Pension
	 	 	30	 
	Sr. Clerical Specialists
	 	 	31	 
	Step Increases During
	 	 	30	 
	Work performed on a Holiday
	 	 	50	 
	Work Week
	 	 	44	 
	Workday
	 	 	44	 
	Eight-Hour Break
	 	 	48	 
	Rest Periods
	 	 	48	 
	Time Changes
	 	 	48	 
	Workers Compensation, Supplemental
	 	 	62	 

- 99 -

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