Document:

Exhibit
10.3

 

A  G 
R  E  E  M  E 
N  T

 

 

between

 

 

CONN-SELMER,  INC.

 

 

and

 

 

U.A.W.
LOCAL 2359

 

 

May 5, 2003

 

 

COLLECTIVE BARGAINING AGREEMENT

 

THE AGREEMENT, made and entered into as of the 5th day of May, 2003 by
and between CONN-SELMER, INC., whose office is located at 34199 Curtis
Boulevard, Eastlake, Ohio, (hereinafter designated as the Company) and U.A.W.
Local 2359 (hereinafter designated as the Union).

 

NONDISCRIMINATION. 
The company and the union are committed to the optimum utilization of human
resources and equal opportunity.  Job
applicants and employees are evaluated on the basis of job qualifications – not
age, disability, gender, national origin, race, religion, or any other legally
protected group characteristic.  The
company and the union are committed to maintaining a place of employment that
is safe, productive, and free from any form of harassment or violence.  The company and the union each agree that
they shall not discriminate against any employee who exercises any legally
protected rights.  The company will not
discriminate against any employee because of membership in the union.

 

ARTICLE
I - MANAGEMENT

 

Section
A. Subject to the provision of this Agreement, it is
expressly understood and agreed that the right to manage the Plant and direct
the work force is vested exclusively in Management and that all rights not
specifically modified in the Agreement are retained by the Company including
the rights to hire, suspend, or discharge for proper cause, or transfer, and
the right to relieve employee from duty because of lack of work, or for any
other legitimate reason are vested exclusively in the Company, provided that
this will not be used for purpose of discrimination against any member of the
Union.

 

ARTICLE
II - RECOGNITION

 

The Company recognizes the Union as the sole and exclusive bargaining
agency for all its employees (except supervision, plant protection, office
workers and casual employees) with respect to rates of pay, working conditions
and hours or days of work.

 

ARTICLE
III - REPRESENTATION

 

Section
A. UNION SHOP COMMITTEE. The Union shall be represented by a
Shop Committee of not more than five (5) members nor less than three (3)
members, all of whom shall be employees of the Company, shall have completed
their probationary period with the Company as herein provided, and shall be
chosen by members of the Union.

 

The Union Shop Committee shall negotiate in the manner
as hereinafter provided with the Company on grievances that may arise in the
Plant.  National Union Officials may be
called in by the Shop Committee to assist in these negotiations.

 

2

 

Section
B. DEPARTMENTAL STEWARDS. The Union, in addition to the Shop
Committee, shall be represented by Departmental Stewards who shall be employees
of the Company, having completed their probationary period, and shall be chosen
by and from members of the Union on a basis of one (1) Steward for each
Supervisor, with the assurance of a minimum of one (1) Steward for each work
shift scheduled by the Company.

 

In the application of the above, it is agreed, the
Union shall be entitled to a Steward for each designated Department or group of
Departments.

 

Section
C. COMMITTEE CHANGES. The Union agrees to keep the Company
informed at all times of who constitutes the Shop Committee and the Stewards’
Committee, also when changes in said Committees are made.

 

Section
D. DISCIPLINARY ACTION: SHOP COMMITTEE AND STEWARDS. A
twenty-four hour grace period will be given to the Shop Committee and Department
Stewards when they are personally involved in disciplinary action that warrants
suspension or discharge, the Chairman will be advised of disciplinary action
for investigation before disciplinary action takes effect.

 

ARTICLE
IV - NORMAL HOURS AND OVERTIME

 

Section
A. NORMAL WORK WEEK. For shop employees which may be worked
without payment of overtime, for all hourly rate employees shall consist of
five (5) days, Monday through Friday, of eight (8) hours each.

 

Section
B. TIME AND ONE-HALF. All work performed in excess of eight
(8) hours during any regular working day or work performed on Saturday, outside
of the week as above defined, shall be paid for at the rate of time and
one-half.

 

Section
C. OVERTIME. Employees shall be paid time and one-half for
all time worked prior to their scheduled starting time or after their scheduled
quitting time, once they have completed eight (8) hours.

 

An employee’s scheduled starting and quitting time as
scheduled on Monday for the week shall be considered the employee’s scheduled
starting and quitting times for the remainder of the work week unless mutually
agreed upon between the Company and the Union.

 

Section
D. LATENESS.  It has
been established that if an employee is going to be late for work, he/she must
call his/her Supervisor or Guard and advise him/her at what time he/she will
arrive.  This must be done within two
(2) hours from starting time.

 

This is necessary in order for the Supervisor to
organize the work load in his/her department so production is not lost for the
day.

 

Should he/she not call in and advise the Supervisor
that he/she is going to be late, he/she will not be allowed in the Plant two
(2) hours from starting and will be marked absent for the day.

 

This rule shall not apply if the weather is a factor
in preventing the employee from arriving on schedule.

 

3

 

Section
E. ABSENCE.  It has
been established that if an employee is going to be absent from work, they must
call their Supervisor or Human Resources and advise them that they will be
absent.  This should be done within two
(2) hours from starting time.

 

1.             One
day sickness will not be excused, unless:

 

a)                                      Physician’s
slip is presented by employee upon return to work.

 

b)                                     Employee
was sent home the day before because of obvious illness, and return on
following day doubtful.

 

2.             Two
day sicknesses will not be excused, unless physician’s slip is presented by
employee upon return to work.

 

3.             Employees
returning to work after missing three (3) or more days because of illness will
not be permitted to work without physician’s slip stating employee is able to
perform regular duties.  Physician’s
slip must be presented by employee upon return to work.

 

4.             Absence
from work for reason other than illness will not be excused unless employee
received permission from the Human Resources Manager or the Plant Manager (or
their alternate as needed) prior to absence. 
See Section F.  LEAVE OF
ABSENCE.  Court and legal appointments
that are related to an employee’s infraction of the law are not excused “whole
day” absences.  All court and legal
appointments, handled on a reporting late or an out early basis, will be
excused (with advance notification, provided documentation is submitted upon
return to work).  “Whole day” absence,
for court and legal appointments that are not related to an employee’s
infraction of the law, will be excused (with advance notification, provided
documentation is submitted upon return to work).

 

5.             Death
in family, jury duty, etc. will be excused absences once verification is
presented.

 

6.             “Emergencies”
that occur between work shifts will be handled on an individual basis.  The Human Resource Manager must be consulted
before excusing absence.

 

7.             Previously
scheduled overtime for a Saturday and/or Sunday (hereinafter called “weekend
overtime”) will be assigned in accordance with the established procedure,
however, any unexcused absence will fall under the following guideline:

 

a.             All
unexcused weekend overtime missed will be charged as hours paid.  (i.e., 5 hrs. o.t. = 7 1/2 missed.)

 

8.             Any
jail time preventing an employee’s ability to report to work will not be viewed
as an excused absence.  The Company will
not issue any leaves of absence towards time spent in jail.  Each consecutive day in jail will be charged
against the 16 Hour Policy (Infractions of a Minor Nature, #1).  The number of days permitted will depend
upon the number of warnings the employee’s personnel record can support, to a
maximum of nine (9) days.  Any time in
jail beyond what

 

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the employee’s record can support will lead to
dismissal.  Should the employee not be
convicted, all jail time will not be charged against the 16 Hour Policy.

 

Section
F. LEAVE OF ABSENCE:

 

1.                                       An
employee may be granted a leave of absence, by the company, upon written
request to a Supervisor for a period not to exceed two (2) calendar weeks in
any one year, for a minimum of two (2) days (single days will only be approved
when combined with remaining vacation days, or with a personal holiday
request), but will not be granted a leave to work at any other job or
business.  Insurance and Hospitalization
benefits will continue.  Any grievance
arising out of the application of the provision shall be subject to negotiation
between the Company and Union.

 

Examples of such
absences are personal business, court appearances, doctor’s appointments,
family illness, etc.  Company may
request verification.

 

2.                                       By
agreement between the Company and the Union Shop Committee, employees may be
granted a leave of absence for a definite period of time not to exceed one-half
(1/2) their seniority length and in no event to exceed one (1) year without
prejudice to seniority for one or more of the following reasons:

 

a)                                      Death
or serious illness in family.

 

b)                                     Personal
affairs involving legal settlement.

 

During such leave
of absence, the employee shall only accumulate seniority and all benefits are
temporarily withheld until employee returns, at which time the benefits will be
reinstated.

 

3.                                       Employees
shall be granted a leave of absence for illness or injury causing confinement
to a Hospital, Sanitarium, or at home under physician’s care.  Provided a physician’s certificate is
presented and proof of continued disability is supplied as requested, upon the
basis of the following schedule:

 

a)                                      Up
to four (4) years seniority.  A period
of time equal to one-half (1/2) their seniority.

 

b)                                     Four
(4) or more years seniority.  A period
of time equal to their seniority.

 

4.                                       This
could also include outpatient treatment as prescribed by an attending physician
which qualifies under the medical plan.

 

5.                                       As
per Contract Article XIII, Section A., #3: 
See Contract for Benefit schedule of Sickness and Accident Weekly
Benefits.

 

6.                                       “S
& A Benefit Medical” forms may be obtained from the Human Resources office.

 

7.                                       Leave
of absences, personal/medical, if approved, will not count toward hours
included under the Excessive Absentee Policy.

 

5

 

8.                                       A
“Leave of Absence” form may be obtained from Supervisor or the Human Resources
office.

 

9.                                       During
such leave of absence due to personal injury or illness, the employee shall
accumulate seniority and all Sickness and Accident payments and Life Insurance
benefits shall continue and they shall only terminate in these cases upon the
termination of the leave under the above schedule, or at the end of three (3)
years from the time they began their leave of absence, whichever shall occur
sooner.  Insurance benefits for
employees of ten (10) or more years seniority shall continue for the length of
their seniority during leaves of absence due to personal illness or
injury.  Coverage of
Hospitalization/Dental Benefits are paid for a period of one (1) year.  Employees are responsible for
Hospitalization/Dental Contribution amount during leave period.  Such benefits shall not increase during the
period of the leave of absence.

 

10.                                 Family
and Medical Leave Act (FMLA)

 

An employee, under the terms specified for Family and
Medical Leave, with twelve (12) months of service and at least 1,250 hours
worked, may be granted up to twelve (12) weeks of unpaid leave based on a
twelve month rolling calendar for the following reasons:

 

1.             The
birth or placement for adoption or foster care of a child. Leave taken for the
birth of a child or the placement of a child for adoption or foster care must
be a consecutive twelve (12) week period completed within twelve (12) months
after the date of birth or placement.

 

2.             The
need for the employee to care for a spouse, parent, child with a serious health
condition.

 

3.             The
employee’s own serious health condition.

 

Additionally, medical certification and continued
documentation for intermittent absences will be required for such absence in
accordance with the Act, and the regulations promulgated thereunder.

 

A.            Status
of Accrued Paid Time

 

If the leave is for the care of a spouse, parent,
and/or child the employee may be required to take any remaining vacation days
at the beginning of the FMLA leave.

 

6

 

If the need for FMLA is foreseeable (such as planned
surgeries or normal births), thirty (30) day notice is requested.  If the need for FMLA is unforeseeable (such
as serious injury or illness, or a premature birth), you must notify the
company as soon as possible, and in no event, more than two (2) days after
knowing of the need for a leave.  Formal
notice is further accomplished by submitting a FMLA Application Form.  FMLA Application Forms must be submitted
within fifteen (15) calendar days of a return from an unforeseeable serious
health condition for either the employee, or a defined family member, or the
absence will not be regarded as FMLA and will be subject to the terms of the
attendance rules.

 

B.            Status
of Benefits

 

Health care coverages (as defined by COBRA) will
continue under the same terms and conditions as while actively at work.  Employee will be responsible for continuing
to make contributions to these plans while on leave.

 

FMLA leave will not constitute a break in the
employee’s record of continuous service and the period of such leave of absence
shall be included in the records as continuous service.  Employees, following FMLA leave, will be restored
to their original job and pay rate.  The
only exception would be changes that would have affected the employee if he /
she had not gone on leave.

 

These terms are subject to review if the corresponding
FMLA regulations are revised or changed.

 

Section
G. OUT EARLY:

 

1.             Employees
will not be permitted to leave work early, and will be charged with lost time
except for the following reasons:

 

a)                                      Lack
of work.

 

b)                                     Obviously
ill and unable to continue to work.

 

c)                                      Emergency
call from family, requiring employee to leave. 
Verification may be requested.

 

d)                                     Workers’
Compensation injury or illness.

 

WORK
SCHEDULE - The employee is to be notified on Friday, by 2:30
p.m. if the work schedule for the coming week is going to be changed, so that
the employee has enough time to make arrangements if necessary.

 

If a department is advised ahead of time as required
about the schedule change, they must work eight (8) hours before overtime is
paid.

 

7

 

Only when the Company changes the schedule out of
order does an employee receive overtime for the time worked prior to set
schedule or time after set schedule no matter how many hours they work that
day.

 

OVERTIME
- The Company agrees to seek volunteers for available
overtime by priority of classification, qualification, and overall
seniority.  For the purpose of
maintaining efficient operations and complying with customer requirements, the
Company shall have the right to institute daily overtime or to extend the work
week.  Lacking enough volunteers, it
shall assign as many junior qualified employees as needed in that
classification or department to perform the work.  In the application of this provision, no employee shall be
required to work in excess of ten (10) overtime hours per week and not for more
than three (3) consecutive weeks.  A
list of employees scheduled for Saturday overtime will be posted by 2:45 p.m.
Thursday, and any disputes arising from the posted list must be communicated
before 2:45 p.m. Friday, otherwise a grievance for a seniority claim may not be
submitted.

 

Section
A. DOUBLE TIME. Work performed on Sundays shall be paid for
at the rate of double time.  Work
performed on the twelve (12) Holidays in 2003, and the thirteen (13) Holidays
in 2004, as identified in Article VII - Section C, shall be paid for at the
rate of double time in addition to Holiday Pay as stated in Article VII -
Section C.

 

Section
B. NO WORK. When employees report for work, not having been
properly notified in advance that there will be no work, and prevented from
performing their jobs that day through no fault of their own, they shall be
guaranteed four (4) hours work or four (4) hours pay at their straight time day
rate if no other work is available for assignments; in no event shall they be
paid for less than four (4) hours.

 

However, this section shall not apply if the Company
is unable to operate its plant or any portion thereof due to an act of Nature,
utility failure, mechanical breakdown, government restriction, fire, flood,
riot, civil commotion, or labor dispute, unless the mechanical breakdown or
fire is caused by the company’s negligence.

 

Section
C. NOTIFICATION OF ADDRESS CHANGE. It is the responsibility
of each employee to keep the Human Resources Department informed of current
address and telephone number.  Attempts
to reach the employee at the telephone number currently listed in the Human
Resources Department’s files shall constitute proper notice.

 

Section
D. CALL BACK. Any employee being called back to perform a
task shall be paid no less than four (4) hours at straight time pay or which
ever is higher, in the event of overtime or a Holiday.

 

Section
E. TIME AND ATTENDANCE, LABOR REPORTING. Each employee shall
be required to enter his or her own attendance and labor transactions into the
data collection system.  Employee shall
be responsible for the accuracy of the count and time entered for all
transactions.  Employees should be at
their appointed place of work when signal is given for work to begin and should
remain at their work until signal is given to quit.

 

8

 

ARTICLE
V - SENIORITY

 

Section
A. SENIORITY.  Will
commence on the first day worked regardless of when employment was first
offered by any Company representative.

 

Section
B. PROBATIONARY PERIOD. All new employees shall be considered
as on probation for a period of three (3) months accumulated service, except
for excusable absence, after starting date and during such period, shall not be
entitled to any seniority rights under the provisions of this Article.  The performance of any new employee will be
evaluated on each one (l) month anniversary date for the subsequent three (3)
month probation.  However, after a
period of two (2) months accumulated service, they shall be entitled to Holiday
Pay, and after three (3) months accumulated service shall be entitled to the
Personal Holiday.  After a probation
period of three (3) months, seniority shall be determined as of the date the
employee started to work, and after a period of three (3) months accumulated service
shall qualify for all benefits.

 

Section
C. SUPERSENIORITY STATUS. The Chairman of the Shop Committee
and all members of the Shop Committee handling all matters concerning the
Grievance Procedure shall head the plant-wide seniority list during their terms
of office.  Any member of the shop
committee who at the time of election is on second or third shift will be
assigned to the first shift within their respective classification.  Such shop committee member transferred from
other than first shift will replace the employee within their classification,
with the lowest plant-wide seniority, unless they can be otherwise absorbed
into their classification.  This would
not apply to temporary transfers between shifts for up to thirty (30)
days.  If there is a reduction in the
work force during the term of office of the Grievance Committeeperson, they
will remain at work in their respective departments regardless of seniority
unless the entire department is laid off.

 

The Committee must be able to do the job in accordance
with the bumping procedure.  This
superseniority status is applicable to layoffs only, and employees will return
to their original positions on the seniority list at the termination of their
terms in office.  The Department
Stewards shall head the seniority list in their respective departments during
their term of office.  This
superseniority status is applicable to layoffs only, and employees will return
to their original positions at the termination of their terms of office.

 

Section
D. MEDICAL DISQUALIFICATIONS. Medical conditions that create
a permanent inability for an employee to perform their present job will result
in:

 

a.                                       return
to job they have previously satisfactorily performed, providing there is an
opening, providing they have seniority.

 

b.                                      seniority
prevailing, accept an open job that meets the stipulated work restrictions
(failure to accept an open job will be construed as a voluntary quit).

 

c.                                       a
lay-off.

 

Section
E. LAY-OFF PROCEDURE. When it becomes necessary to reduce the
work force for an indefinite period in a department, the reduction will be made
according to job classifications, and employees will be notified three (3)
normal working days in advance.  It is
understood and agreed that in all cases of reduction in workforce, seniority
shall be the determining factor so

 

9

 

long as those employees remaining in affected job classifications have
the skills and abilities to ensure continued efficient operations of the
Company.

 

When a reduction in workforce is implemented in a
department, the following procedure will govern, seniority prevailing, provided
that affected employees have the skills and abilities to perform available
jobs:

 

1.                                   Probationary
employees in the department shall be laid off before any employee having
seniority in that department is affected.

 

a.             Employees
on inactive status for sickness and accident, workers’ compensation, FMLA, or
personal leave, while other senior employees within their classification are
moved to lay-off status, will be moved to layoff status.

 

2.                                   If
further reduction is necessary, employees having seniority shall be entitled to
displace other employees within the department in accordance with the
following:

 

a.                                       Displace
the employee having the least seniority in an occupation he/she had previously
satisfactorily performed while in the employ of the Company.

 

b.                                      If
employees cannot displace employees in jobs previously satisfactorily
performed, they shall be entitled to displace the employee having the least
seniority in an occupation he/she is able to perform without further training.

 

c.                                       Bumping
rights for those inactive at the time of lay off, may be invoked at the time
said employee is scheduled to return, or is released to return to work.  Bumping rights under these circumstances,
expire the working day following the scheduled return date.  Recall rights will be extended for the
normal defined term (one-half seniority to a maximum of three (3) years)
effective with the date of lay off; however, recall rights will not be extended
until the employee is scheduled to return or is released to return to work.

 

3.                                   Any
employee having seniority displaced from a department in accordance with the
above procedure shall be entitled to displace employees in other departments in
accordance with the following:

 

a.                                       Displace
the employee having the least seniority in an occupation he/she had previously
satisfactorily performed while in the employ of the Company.

 

b.                                      If
employee cannot displace employees in jobs previously satisfactorily performed,
they shall be entitled to displace the employee having the least seniority in
an occupation he/she is able to perform without further training.

 

10

 

c.                                       If
employee is displaced from original bump by a senior employee with more
seniority who can perform the job without training, the employee may again
exercise his/her bumping privileges. 
Only the senior employee will be considered for each multi-bump
situation.

 

4.                                   In
recognition of the Company’s responsibility to maintain efficient operations,
it is understood and agreed that the following criteria shall apply to
employees displacing other employees in accordance with the above procedure:

 

a.                                       Employee
will have five (5) working days during which to demonstrate ability to
satisfactorily perform the work with the opportunity for familiarization of
equipment and work area, without training. 
At the end of this period, employee must be performing above the
guarantee rate or at the same production level as the displaced employee.

 

5.                                   If
an employee fails to displace another employee, due to lack of skills or
abilities, he/she shall be placed on layoff status, with the right to recall
only to:

 

a.                                       His/her
regular job; or

 

b.                                      A
job he/she previously satisfactorily performed; or

 

c.                                       Bottom
of lay-off list.

 

6.                                   Should
an employee choose not to exercise his/her seniority rights under this Section,
he/she shall be placed on layoff status, relative to seniority.

 

Employees accepting jobs in accordance with the above procedures shall
be paid at the current rate for the job.

 

Employees accepting jobs in accordance with the above procedures may,
with seniority prevailing, exercise shift preference.

 

Section
F. RECALL PROCEDURE. When it becomes necessary to recall
employees from layoff, or to re-man a department after a reduction, the
following procedure shall be applied:

 

1.                                       The
Company shall determine with seniority prevailing whether there are displaced
employees working elsewhere in the plant or on the layoff list who previously
performed in the job classification. 
Employee will be reassigned to an open job in accordance to the
following procedure:

 

a.               performed job
within the past ten (10) years.

 

b.              satisfactorily
performed the job for a minimum of a two (2) year period.

 

c.               employee will have
five (5) days for familiarization and minimal training during which to
demonstrate ability to satisfactorily perform the work.  At the end of this period, employee must be
performing above the guarantee rate.

 

11

 

d.              if an employee fails
to satisfactorily perform the work as required above due to lack of skills or
abilities under this Section, the employee shall be placed on layoff status,
with the right to recall only to his/her original job.

 

e.               employees accepting
jobs in accordance with the above procedures shall be paid at the current rate
for the job.

 

f.                 employees
bypassed shall retain their relative positions on the lay-off list.

 

2.                                       Should
open jobs become available and the employee was unable to qualify for the
above, employee will be recalled from the layoff list in accordance with their
seniority, provided that employee has the skills and abilities to perform the
available jobs.  Displaced employee
taking available job shall not be reassigned to their original job once they
have chosen to sign a Job Bid, or have completed one (1) year in their new job
classification.  Employees bypassed
shall retain their relative positions on the lay-off list.

 

3.                                       Should
employees be unable to qualify for the above, they will be recalled to
available jobs denoted by an asterisk on the Job Classification list, by using
plant wide seniority of those employees on the lay-off list.  If the employee’s original job should
re-open, the employee must return to that original job.  Employees bypassed shall retain their
relative positions on the lay-off list.

 

4.                                       Employees
recalled from the layoff list to their original jobs refusing to return to such
jobs, shall be considered having quit, forfeiting all accumulated seniority.

 

5.                                       Employees
recalled from the layoff list to available work refusing such job shall be
placed at the bottom of the layoff list. 
However, upon second refusal of recall to available work, employees
shall be considered on layoff until original job becomes available, or Article
V, Section F., #2., becomes applicable.

 

6.                                       It
is understood and agreed that the recall and re-manning procedures contained in
this Agreement will be invoked only when full time, permanent jobs become
available.  Should temporary jobs become
available, the Company shall exercise its prerogative to fill those vacancies,
within the limitations of this Agreement, after having first advised the Union.

 

Section
G. PLANT LAY-OFF AND TEMPORARY REDUCTIONS. On a plant-wide
layoff, affecting all departments, the work week shall not be less than
thirty-two (32) hours, consisting of four (4) eight (8) hour days, for a period
of not longer than six (6) weeks and then the Company and the Union shall meet
to consider the advisability of continuing the thirty-two (32) hour week or
reducing the number of employees according to seniority.  This clause does not

 

12

 

apply to a temporary reduction in a certain department due to lack of
work, shortage of material, overstock or temporary setback of production.  A temporary reduction in a department will
be of definite duration, not to exceed one (1) week, in which case employees
will be placed on layoff status, without invoking Article V, Section E.  Should the temporary reduction exceed one
(1) week, the Company and Union shall meet to discuss the advisability of
reducing the work force according to Article V, Section E.

 

Section
H. SENIORITY FORFEITURE. Employees shall forfeit seniority
if:

 

1.             They
quit or retire.

 

2.             The
employee is laid off for a period in excess of one-half (1/2) of his/her
seniority but in no event shall he/she retain his/her seniority after three (3)
years continuous lay-off.

 

3.             They
are discharged for just cause.

 

4.             They
are absent for three (3) consecutive working days without reasonable
cause.  Questionable cause shall be
negotiated between the Company and the Union.

 

5.             They
fail to report for work within five (5) days, after receiving notice to report
where such failure to report does not arise from good causes, such as
employment elsewhere (for a period not to exceed two (2) weeks), illness, death
in the immediate family, absence from the city or military service, provided, however,
in such cases that they give the Company notice of the good cause preventing
them from returning to work within three (3) days of receipt of notice.

 

6.             While
on leave of absence, they accept employment with another concern without
approval of the Shop Committee and the Company.

 

Section
I. SENIORITY ROLLS. The Company shall furnish an accurate
seniority roll showing the status of all employees covered by this Agreement, a
copy of said roll shall be given to the Shop Committee on request.  The Company will also notify the Union in
writing of hiring, discharging, rehiring, furloughing, and transferring of each
and every employee, in order to keep the above mentioned seniority roll up to
date.

 

Section
J. JOB POSTING & BIDDING. Notices of vacancies or new
jobs created will be posted on the job posting bulletin boards for a period of
three (3) working days during which employees shall have the opportunity to
advance their status by filing an application for transfer to such jobs with
the Human Resources Manager.  If posted
jobs are not filled in thirty (30) days, a one-day posting will be made before
a new employee is hired.

 

Requests for transfer will be considered in accordance
to the employee’s seniority, qualifications, and curtailment of production,
before any new employee is hired for such a job.  Before the job is awarded to a bidder, the lay-off list will be
referred to for qualified senior employees. 
If a laid off employee accepts the job, the job bid must be signed.  If an employee on the lay-off list refuses
the job, refer to Article V, Section F., #5 page 12.  If there is reasonable doubt as to the employee’s qualifications,
a reasonable trial period shall be granted. 
Should any employee disqualify themself during the five (5) day trial
period, they shall have return rights to

 

13

 

their previous job.  Once the
employee is accepted for the job, and once the employee completes the five (5)
day trial period, he/she relinquishes the rights to the job he/she left.  Any employee who fails to successfully hire
or transfer into a new job will be placed on layoff status, with no bumping
rights.  Layoff status will be automatically
invoked upon the issuance of the third infraction of a minor nature for failing
to meet a reasonable measure of efficiency (Infraction of a Minor Nature
#10).  Employees who are disqualified in
this manner will relinquish recall rights to any previously disqualified job,
and all warnings on record will continue for the remainder of their terms once
the employee returns from layoff.

 

Employees interested in being considered for rough
assembly should first bid into the rough assembly training classification.  The horn slide training classification will
be comprised of two (2) separate tiers; Trainee B - Grade 2, and Trainee A -
Grade 5.  Available positions will be
posted as Trainee B - Grade 2.  Existing
employees who transfer into this classification will have the customary five
(5) day trial period.  Employees in
Trainee B will be evaluated on a monthly basis, and transfer to Trainee A will
only occur after the employee has reached a skill level equivalent to the
established standards for horn slide assembly. 
Transfer from Trainee B to Trainee A must be accomplished within six (6)
months, if not, Article V., Section J., Page 13 would apply.  Existing horn slide assemblers will retain
their current classification, and employees within the Trainee A will be
considered part of the horn slide assembly capacity.  Under this program, the training classifications may not be
considered a permanent position.  Any
employee within Trainee A can bid on Rough Assembly jobs within departments 35
and 38, and will not be required to complete one year of service.   However, any subsequent transfer to rough
assembly (either by bid or placement) will require employees to complete one
year of service.

 

Any subsequent job openings in rough assembly will be
filled predominantly by employees from this training classification.  This, however, is not intended to prevent
any of the current rough assemblers from bidding into a new rough assembly
opening.  Providing no eligible bids are
received from current rough assemblers, the Trainee A can bid with seniority
prevailing.  If no eligible bids are
received from Trainee A, then placement of a Trainee A will be done at the
discretion of the company.

 

Plantwide seniority rules will apply to layoff within
this training classification (e.g. a senior Trainee A will remain over a junior
horn slide assembler, or a junior Trainee A can be bumped by a senior rough
assembler).

 

An employee transferred from one department to another
shall immediately be credited with his/her total seniority in the new
department.  The most senior employee
may exercise shift preference from one shift to another, within a job
classification, within a department, provided a vacancy exists.  The company reserves the right to
temporarily postpone shift preference, to a maximum of one (1) year, within
classifications that require extended training or supervision (specifically
5A41 – Polisher, 5A42 – Buffer, and 5A35 – Color Buffer).  All transfer requests shall be answered if
rejected for seniority, qualifications, or curtailment of production.

 

14

 

In the application of this provision, requests for
transfer to another job, in the department wherein the vacancies occur or the
new job is created, shall be considered before any such requests made by
employees from other departments.

 

Once an employee accepts a transfer, or once an
employee disqualifies themself during a trial period and returns to their
previous job, that employee will not be allowed to submit another request for
transfer for a period of one (1) year. 
This applies to intra-departmental, as well as inter-departmental
transfers.

 

Requests for transfers submitted by employees in Labor
Grades 1 and 2, with less than one (1) year seniority or probationary
employees, will be considered and possibly accepted, providing that an employee
with one (1) year or more seniority did not bid the job.

 

Employees in Labor Grades 3 and above with less than
one (1) year seniority shall not be entitled to place transfer requests.

 

Requests for transfer into a lower Labor Grade, or
into the same Labor Grade, will be accepted only when the earning potential of
the employee will be significantly improved by the downward or lateral
transfer.

 

It is understood that requests for transfer will be
considered on an individual basis, taking in account all the factors presented
at the time the request for transfer is submitted.

 

When an abnormal condition exists that may result in
the curtailing of production in other parts of the Plant, Management reserves
the right to hire experienced individuals in preference to present employees
who do not have previous experience.

 

Union and the bidders will be notified within five (5)
working days of the final posting date.

 

Section
K. TRAINING PAY REDUCTION. It is mutually agreed that when an
employee bids into a new job, their actual hourly rate will be reduced by no
more than twenty-five cents ($.25) an hour from the top of the new
classification rate to absorb the training process and the Company agrees to
elevate the employee towards the top of the rate as they progress during the
training period or when employee is capable of performing all duties assigned
in job grade, according to the following schedule:

 

	
  Day Worker

  	
  -

  	
  increase in 30 days

  
	
   

  	
   

  	
   

  
	
  Piece Worker

  	
  -

  	
  increase when employee achieves base rate; but in no
  case, longer than 60 days

  

 

Section
L. SENIORITY GRIEVANCES. Any grievances arising out of
seniority shall be subject to negotiations between the Union and the Company.

 

Section
M. NOTIFICATION OF JOB STATUS. In laying off, furloughing, or
transferring any employee, the Company Representative shall notify the Chairman
of the Shop Committee and the employee in such layoff, furlough or transfer as
soon as practical.

 

Section
N. TRANSFER INTO BARGAINING UNIT. Employees who were not
employed in the bargaining unit at any time during their period of employment
with the Company and who are transferred into the bargaining unit shall be
credited with seniority from the date of transfer into the bargaining unit
after having served their probationary period.

 

15

 

Section
O. REASSIGNMENT TO BARGAINING UNIT. Employees who were, or
may be transferred or promoted from jobs within the bargaining unit to jobs
outside the bargaining unit shall retain their seniority but shall not
accumulate seniority while working on such jobs.  In the event such employees are transferred into the bargaining
unit, they shall be placed on available jobs where they are best qualified in
line with their seniority, but shall not be entitled to exercise their seniority
to displace any regular full-time employee within the bargaining unit for a
period of ninety (90) days from the date of transfer.

 

Section
P. DISCHARGE PROCEDURE AND GRIEVANCES. Should an employee be
subject to discharge, he/she shall be advised of the reason for such
action.  The Company shall then request
the presence of the Chairman of the Shop Committee to discuss the cause with
him/her before he/she is required to leave the Plant.

 

Should the employee or his/her representative consider
the action to be improper, a written protest must be presented to the Company
within five (5) working days after the action was taken, or the action taken
will be considered as accepted.  Such
protest will be handled in accordance with the established grievance procedure.  If it is determined that the discharge was
unjustified, the employee shall be reinstated to his/her former position and to
his/her former standing on the seniority list, without any loss of pay.

 

ARTICLE
VI - GRIEVANCE PROCEDURE

 

Section
A. INTENT OF DISPUTE ADJUSTMENTS. It is the intent of the
parties to this Agreement that the procedure herein set forth serve as a
peaceful means for the adjustment of all disputes that may arise between them.

 

Section B. NO STRIKE / NO LOCKOUT.  The union agrees that it will not encourage,
sanction, or approve any strike, handbilling, sympathy strike, or other
interruption of work growing out of any dispute.  On the contrary, the union will actively discourage and endeavor
to prevent or terminate any strike, stoppage, slowdown, or other interruption
of work.

 

The company agrees that neither it nor its representatives will put
into effect any lockout during the term of this agreement.

 

Section
C. Any grievance relating to the issuance of a warning must
be submitted to the following grievance procedure within fourteen (14) calendar
days following the issuance of said warning to the employee(s), otherwise the
action is regarded as accepted.  The
union, whenever a warning is issued, will be immediately furnished a copy of
the written warning upon issuance to the employee.  Whenever a grievance arises, the following steps shall be taken
to ensure proper and timely handling:

 

Step 1.

 

An employee with a problem, complaint or question will
discuss the details of the complaint with the Supervisor and the Department
Steward.  Who, after investigating

 

16

 

complaint or problem, will determine if there is
cause.  The Supervisor, within a 24 hour
period, will give a formal answer to the employee in the presence of the
Department Steward.

 

Step 2.

 

Failing satisfactory settlement with the Supervisor, a
grievance shall be written, at which time employee and Department Steward shall
present the written grievance to the Supervisor who will submit the grievance
to a Company Representative selected by the Company, who will within a five (5)
day grace period, conduct a meeting of all parties involved in an attempt to
resolve the issue.

 

Step 3.

 

If the issue is still not resolved, the written grievance
will be taken up in a meeting with the Grievance Committee and a Representative
of the Company within ten (10) working days of the notice of rejection to
settlement in Step 2.

 

Step 4.

 

In
the event satisfactory settlement is not made, and after the above procedure
has been exhausted, the grievance shall be referred to the Executive Vice
President or his representative and the Union’s National Representative and the
Company Legal Advisor.  Should such a
meeting be necessary, it will be held at 2:00 p.m. within two (2) weeks notice
of rejection in step three or on a date agreed upon by both. The Step 4 meeting
may be delayed beyond the above mentioned timetable by mutual consent of the
Company representative and the Union. 
If (a) the company fails to meet, or (b) the union fails to submit
written rejection to the 3rd step outcome, within the specified time
limits in the 4th step of the grievance procedure, then the
grievance shall be considered settled on the basis of the last position – in
favor of the union in situation (a), or in favor of the company in situation
(b).

 

Step 5.

 

If the grievance is not settled pursuant to the steps
in the grievance provisions of this agreement, then either party shall, within
thirty (30) calendar days after any Step 4 grievance answer submit the
grievance to arbitration.  Both the
company and the union agree to utilize expedited arbitration as a preferred
method.  Post hearing briefs will be
permitted only by agreement of the parties or by direction of the arbitrator if
one party so requests.

 

The employer and the union shall agree
upon a list of three (3) arbitrators to serve for the duration of this
agreement.  When either party requests
arbitration pursuant to Section C., Step 5., the parties shall meet within
seven (7) working days to select an individual from this panel to hear said
matter.  The arbitrator will be selected
by process of rotation.  As soon as the
parties select the arbitrator, they shall jointly request a hearing date be set
as soon as possible subject to the availability of the parties.  If the parties and the arbitrator

 

17

 

are unable to agree upon a date within
thirty (30) days of contact with the arbitrator, then the parties, by mutual
agreement, may immediately select another arbitrator.  No more than thirty (30) days after submission of the case to the
arbitrator, the arbitrator will issue his / her award.  The parties agree to accept the arbitrator’s
award as final and binding upon them; however, the arbitrator shall have no
power to add to, subtract from, or modify any of the terms of this agreement.

 

The cost of the arbitrator, and meeting
room shall be shared equally by the parties. 
Any other expense (such as attorney, transcript, or witness or advocate
fees) must be paid by the party incurring such expense.

 

No aggrieved party shall have any right to invoke the
grievance procedure provided above, or the arbitration procedure provided
above, unless the matter of such grievance has been presented as provided
above.

 

ARTICLE
VII - WAGES

 

Section
A. NEW EMPLOYEE CLASSIFICATION. Any new employee may be
employed in any bracket or classification to be determined by their past
experience.

 

Section
B. MINIMUM HIRING RATES AND INCREASES. The minimum hiring
rate for new employees will be twenty-five cents ($ 0.25) below the top of
the corresponding job grade.  Hourly
wage rates, reduced for new hires, will be elevated to the top of the
corresponding job grade by the end of their three (3) month probation.

 

Section
C. HOLIDAYS. The Company shall pay all employees with
seniority covered by this Agreement at their average hourly earnings for the
following Holidays, to be observed on designated dates:

 

a.          2003:

 

Monday, May 26 - Memorial Day

 

Friday, June 27 - Independence Day (Observed)

 

Monday, September 1 - Labor Day

 

Thursday/Friday, November 27 & 28 - Thanksgiving
Holidays

 

Thursday/Friday, December 25 & 26 - Christmas
Holidays

 

Monday/Tuesday/Wednesday, December 29, 30, & 31 -
(3) Floating Holidays

 

Monday, January 1 - New Year’s Holiday

 

b.         2004:

 

Friday, April 9 - Good Friday

 

Monday, May 31 - Memorial Day

 

Friday, July 2 - Independence Day (Observed)

 

Monday, September 6 - Labor Day

 

Thursday/Friday, November 25 & 26 - Thanksgiving
Holidays

 

Friday/Monday, December 24 & 27 - Christmas
Holidays

 

Tuesday/Wednesday/Thursday, December 28, 29, & 30
- (3) Floating Holidays

 

18

 

Friday, December 31 - New Year’s Day

 

c.          Personal Day to be used as requested by employee:

 

1.               Two weeks notice
must be submitted prior to the day being requested, seniority prevailing, when
combined with other regularly scheduled holidays.

 

2.               Must be approved by
Human Resource Manager.

 

3.               The Personal
Holiday, if used at any other time, can be merely taken with advance or
“call-in” notice.  However, the Personal
Holiday cannot be applied retroactively to a day already missed.  The Personal Holiday, if arranged on a
call-in basis, must be reported to your Supervisor or Human Resources within
two (2) hours of your scheduled starting time. 
This holiday must be taken by the end of each contract period.  Employees who have not used their personal
holiday shall be paid for the holiday at the end of the contract year.

 

HOLIDAY
PAY QUALIFICATIONS. Absence from work without permission or
approval of the Company and Union Shop Committee the working day prior to, or
the working day following paid Holidays will result in forfeiture of Holiday
Pay unless the Company and Union agree that the employee has a reasonable
excuse for payment of Holiday Pay which is:

 

a.                                       During
that week of the Holiday, from Monday to Sunday, an employee is hospitalized
prior to the Holiday and is unable to work as required.

 

b.                                      Hospitalized
on the Holiday and unable to report the day after as required.

 

c.                                       Hospitalized
on the day scheduled to return to work as required.

 

d.                                      During
the week of the Holiday, a physician’s slip stating that employee has been sick
and was unable to report to work as required either on the day before the
Holiday or on the day after the Holiday.

 

e.                                       Employee
on Leave of Absence for personal, sickness, or injury reasons do not qualify
for Holiday Pay - unless, the employee works the next scheduled workday
following the holiday.

 

f.                                         Employees
who were laid off 30 days prior to a holiday, will qualify for payment of the
holiday.

 

In addition to the listed exceptions to holiday pay
qualifications, emergencies that occur the day before or the day after a
holiday will be handled on an individual basis.  The employee must report the emergency to the Human Resource
Manager, and the employee must furnish ‘documentation’ proving the legitimacy
of such emergency upon return to work. 
Human Resources will determine if payment for the holiday(s) is to be
made under these conditions.

 

Section
D. SPECIAL RATES.

 

a.                                       INSTRUCTOR
PAY. The Company may appoint new instructors to train one or more
employees for the job.  For the time
spent instructing, they

 

19

 

will receive fifteen cents ($.15) per hour over their
King bracket rate or their average piecework earnings whichever is greater.

 

b.                                      GROUP LEADER
PAY. The Company will pay group leaders at least ten cents ($.10)
per hour over the day rate of the highest classification of the employee that
he/she leads.

 

c.                                       TEMPORARY
TRANSFERS. When an employee’s work is in two (2) or more Labor
Grades, he/she shall carry the higher rate. 
Temporary transfers can be made as an interim work assignment during
temporary periods of no work, for up to six (6) weeks, leaving the affected
employee an opportunity to return to their normal job. Temporary transfers,
under these circumstances, will be further extended if mutually agreed by the
company and the union.

 

d.                                      NEW HORNS.
A new or revised procedure, or a new or prototype horn, that is unlike any
established operation, that cannot be assigned a temporary rate, will be paid
at average overall earnings.

 

e.                                       SHIFT
DIFFERENTIALS. Employees working on the second shift shall receive
additional compensation of fifty cents ($.50) per hour.  Employees working on the third shift shall
receive additional compensation of seventy-five ($.75) per hour.

 

ARTICLE
VIII - INCENTIVE WORK

 

The normal cycle time per piece will be established by time study of a
job at normal working conditions.

 

Variable allowances will be determined for the
operation and converted into minutes per piece.

 

A constant allowance of 20 minutes per day for rest
periods and wash-up time plus 24 minutes for personal and fatigue totaling 44 minutes
per day or 5.5 minutes per hour will be allowed except for the Polishing
Department, where an additional 5 minutes wash-up time is allowed making 49
minutes per day or 6.125 minutes per hour.

 

Sixty minutes minus the constant allowance will be the
net operating time per hour.

 

The net operating time per hour divided by the normal
cycle time per piece plus the variable allowance will equal the number of
pieces per hour.

 

The reciprocal of the number of the pieces per hour
will equal the standard hours per piece.

 

EXAMPLE:

 

	
   

  	
   

  	
  min. per pc.

  	
   

  
	
  Normal cycle
  time per piece

  	
   

  	
  1.520

  	
   

  
	
  Variable
  allowance

  	
   

  	
  089

  	
   

  
	
  Total normal
  time per piece

  	
   

  	
  1.609

  	
   

  

 

	
   

  	
   

  	
  min. per hr.

  	
   

  
	
  Constant
  allowance

  	
   

  	
  5.5

  	
   

  
	
  Net operating
  time

  	
   

  	
  54.5

  	
   

  

 

20

 

Standard number pieces per hour =

...54.5 divided by 1.609 = 33.87 pieces per hour.

Standard hour per piece = .0295

Piecework price = standard hours per piece x base rate
of the work classification

(1.64) = .0295 x 1.64 = .0484 each or $4.84 per 100

 

When the standard has been established as above, the
employee shall be notified of the standard.

 

Payment for incentive work shall be the earned hours
times the base rate as established by the job evaluation program.  The employee being guaranteed on any
operation or group of operations as established in the time study, a minimum
earnings equal to his/her regular straight time hourly rate for King
Instruments and his/her Cleveland Guaranteed Rate of Cleveland Instruments.

 

Section
A. TRIAL PERIOD. Shall be no shorter than thirty (30) days
and a minimum of two (2) complete runs of an operation by the employee after
the rate has been established and the employee has been notified of the
rate.  During the trial period, the
employee may request the Supervisor to furnish the facts concerning the time
study.

 

The employee may protest a standard by filing a
written grievance with Management within five (5) working days after the above
said trial period has been completed. 
Company will notify the Shop Steward when the above said trial period
has been completed.  It is understood
that before such a grievance if filed, the elements of the study being
questioned must first have been discussed by the employee with his/her
Supervisor, a Committeeperson and the Time Study person.

 

The Company agrees to give top priority to retiming of
any operation whose standard is under protest and will guarantee the employee’s
hourly day rate until the operation has been retimed and/or accepted.  Union to receive notice at completion of
retiming.  If the employee can make
thirty percent (30%) in excess of his/her day rate during the trial period, the
rate will remain in effect as an accepted rate.

 

Management reserves the right to:  retime all elements effected; reset the
standard on any operation when there is a change in method, material, design or
tooling; establish a maintenance system for all piecework rates.  (A maintenance system is a method to make
sure all operations and elements are being completed).  Clerical error may be corrected at any
time.  The employee shall be guaranteed
his/her hourly rate when there are substandard tools or materials.

 

Section
B. RESTUDY. It is agreed that Management may restudy any
operation where it feels that increase productivity through new processes, new
tooling, equipment and methods could be applicable.  Management may restudy any operation where:

 

a.                                       rates
have been arbitrarily set, or

b.                                      there
is no proper documentation for the present rates

 

It is to be significantly understood that any resultant changes will
not adversely affect the employees’ earnings. 
It is also Management’s desire to enable employees to increase their
earning through increased efforts.

 

21

 

Section
C. PIECEWORK METHOD/PLAN. It is Management’s intention, with
the cooperation of the Union Committee, to attempt to find a Piecework
Method/Plan that will incorporate and/or eliminate the tack-on into the
piecework rate to enable employees to realize full proportionate earnings for
increased effort yet at the same time keep production of musical instruments
competitive with the market.

 

No Company Representative or their Representatives
shall be placed upon a productive job for the purpose of setting up or
establishing any or all piecework or other standard rates; however, in the
event a time study has been protested, Management shall reserve the right to
use any method it sees fit to verify the study.

 

Section
D. REWORK/SCRAP. It is the Company’s Policy to pay for only
good pieces.  That is, the Company does
not pay for work which must be reworked or scrapped.

 

If faulty work can be corrected by the employee who
was responsible for it, he/she must do it on his/her own time.

 

If the faulty work must be done by another employee,
credit will be given to the original employee for the piece price less the
rework cost of those pieces.

 

The above does not apply if the cause is beyond the
control of the employee.

 

Section
E. WORK OUTSIDE OF CLASSIFICATION. When an employee on
incentive, whose regular work is scheduled, is assigned to a job that is a type
of work outside of his/her 
classification, he/she shall be guaranteed his/her average
earnings.  This premium is only to be
paid:

 

1.             In
the event an employee of lesser seniority remains on incentive in the
classification from which the employee was displaced.

 

2.             If
in the pay period anyone remaining in the classification from which the
employee was displaced is working overtime. 
This does not apply on Saturday unless another employee remaining in the
classification is working.

 

Employees on incentive shall receive time and one-half
for all overtime worked.  The pay to be
computed on the average hourly earnings for the week the overtime is worked.

 

JOB
CLASSIFICATION AND BASE RATES EFFECTIVE.

 

Effective February 19, 2003, two percent (2%) shall be added to all
piecework rates.  A general wage
increase of two percent (2%) shall be added to all daywork and guaranteed
rates.

 

Effective February 16, 2004, two percent (2%) shall be added to all
piecework rates.  A general wage
increase of two percent (2%) shall be added to all daywork and guaranteed
rates.

 

For Time Study purposes, Base Rate plus Tack-On will add up to Max Day
Rate.

 

*Recall Jobs –
Article V., Section F., #3, Page 12.

 

#1 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  13.525

  	
   

  	
  $

  	
  13.796

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  12.383

  	
   

  	
  12.630

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  8.985

  	
   

  	
  9.256

  	
   

  
	
  Base Rate for
  Cleveland Piecework

  	
   

  	
  7.843

  	
   

  	
  8.090

  	
   

  
								

 

*Sweepers

 

22

 

#2 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  13.664

  	
   

  	
  $

  	
  13.937

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.454

  	
   

  	
  13.723

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.124

  	
   

  	
  9.397

  	
   

  
	
  Base Rate for
  Cleveland Piecework

  	
   

  	
  8.914

  	
   

  	
  9.183

  	
   

  
								

 

*Case Sizing Boring Machine Operator

*Degreaser / Parts Cleaner

*Harperizer & Tumbling Machine Operator

*Laborer

*Laborer - Air/Water Check Horns

*Vibratory & Tumbling Machine Operator

*Operator - Cut and Shrink

*Operator - Drill Press & Milling

*Trucker - Stock Handler

*Trainee B

*Laborer - Rinse Tank

 

#3 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  13.791

  	
   

  	
  $

  	
  14.067

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.597

  	
   

  	
  13.869

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.251

  	
   

  	
  9.527

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.057

  	
   

  	
  9.329

  	
   

  
								

 

Bender - Crooks

Induction Machine Operator

Lead and Silver Solderer

Operator - Punch Press

Packers

Pantograph/Schmidt Engraver Set-Up Oper.

*Pickling Tank Operator

*Shippers

Straighten Trombone Slide Tubes

Water Key Assembler

Aqueous System Set-Up Operator

Lead Pot Operator

 

23

 

#4 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  13.952

  	
   

  	
  $

  	
  14.230

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.719

  	
   

  	
  13.993

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.412

  	
   

  	
  9.690

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.179

  	
   

  	
  9.453

  	
   

  
								

 

Automatic Tube Buffing Mch.

Brazer

CNC Automatic Spinning Machine Operator

CNC Drill Operator

CNC Laser Operator

Draw Bench Operator

Engine Lathe Operator

Final Assembly Horns

Honer - Trombone Slides

Lacquer Sprayers

Maintenance Helper

Operator Turret Lathe, Hand Screw

Set-Up Opr. Vertical Draw Mch.

*Stock Clerk

Rotary Valve Finisher

Auto. Buff. Mach. Set-up Opr.

 

#5 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.021

  	
   

  	
  $

  	
  14.301

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.770

  	
   

  	
  14.045

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.481

  	
   

  	
  9.761

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.230

  	
   

  	
  9.505

  	
   

  
								

 

Assembler Valves & Crooks

Bender

Operator Automatic Screw Mch.

Piston Machinist

Plater C

Rough Assembly - Cornets, Trumpets

Rough Assembly - Horn Slides and Trombone Bells

Rough Assembly - Large Horns & Rotary Valves

Rough Assembly - Trombone Slides

Waste Water Pretreatment Operator

Trainee A

Annealing Furnace Operator

 

24

 

#5A Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.089

  	
   

  	
  $

  	
  14.371

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.872

  	
   

  	
  14.149

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.549

  	
   

  	
  9.831

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.332

  	
   

  	
  9.609

  	
   

  
								

 

Color Buff and Color Rag

Polisher

Buffer

Rotary Valve Maker

Set-Up Operator - Punch Press

 

#6 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.250

  	
   

  	
  $

  	
  14.535

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  13.974

  	
   

  	
  14.253

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.710

  	
   

  	
  9.995

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.434

  	
   

  	
  9.713

  	
   

  
								

 

Automatic Hydraulic Spinning Machine Operator

Bender Skilled

Inspector B

Sheet Brass Workers

Plasma Arc Welder

Piston Liner, Assembler, and Ball-Out

 

#6B Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.309

  	
   

  	
  $

  	
  14.595

  	
   

  
	
  Cleveland
  Guaranteed Rate

  	
   

  	
  14.056

  	
   

  	
  14.337

  	
   

  
	
  Base Rate for
  King Piecework

  	
   

  	
  9.769

  	
   

  	
  10.055

  	
   

  
	
  Base Rate for
  Cleveland Piecework.

  	
   

  	
  9.516

  	
   

  	
  9.797

  	
   

  
								

 

Spinner - Metal

 

#6A Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.433

  	
   

  	
  $

  	
  14.722

  	
   

  
								

 

Inspect and Pretest, Cup Instruments

Maintenance B

 

#6A-1 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.571

  	
   

  	
  $

  	
  14.862

  	
   

  
								

 

Maintenance & Welder A

Plater B

 

#6A-2 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  14.767

  	
   

  	
  $

  	
  15.062

  	
   

  
								

 

Automatic Screw Mch. Set-Up Oper.

 

25

 

Inspect & Final Test, Cup Instr.

Operator Centerless Grinder

Turret Lathe & Hand Screw - Set-Up Oper.

CNC Turning Center Set-Up Operator

 

#7 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  15.145

  	
   

  	
  $

  	
  15.448

  	
   

  
								

 

Plater A

Tool Maker Trainee

 

#7B Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  15.512

  	
   

  	
  $

  	
  15.822

  	
   

  
								

 

Horn Repair

 

#8 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  16.305

  	
   

  	
  $

  	
  16.631

  	
   

  
								

 

Tool Room Machinist B

 

#9 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  17.003

  	
   

  	
  $

  	
  17.343

  	
   

  
								

 

Maintenance A

Tool Room Machinist A

 

#9A Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  17.340

  	
   

  	
  $

  	
  17.687

  	
   

  
								

 

Tool & Die Maker

 

#10 Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  17.956

  	
   

  	
  $

  	
  18.315

  	
   

  
								

 

Maintenance & Electrician

 

#10A Grade

 

	
   

  	
   

  	
  2/19/03

  	
   

  	
  2/16/04

  	
   

  
	
  Maximum Day Rate

  	
   

  	
  $

  	
  18.156

  	
   

  	
  $

  	
  18.519

  	
   

  
								

 

CNC Programmer, Complex

Tool & Die Maker Complex

 

ARTICLE
IX - VACATIONS

 

The Union and the Company agree that the purpose of vacations is that
of relaxation of the individual from the requirements of his/her work and that
such relaxation is earned by ‘total’ years of service and hours worked.  ‘Total’ years of service will include any
former years of

 

26

 

service with the former King Musical, or United Musical Instruments, in
addition to current continuous years of service.

 

Section
A. VACATION PERIOD. The Plant will be closed for a two-week
Vacation Period beginning on the following dates:

 

1.             Monday, June 30,
2003 - the Fourth of July Holiday to be observed on Friday, June 27, 2003.

 

2.             Monday, July 5,
2004 - the Fourth of July Holiday to be observed on Friday, July 2, 2004.

 

The employee’s seniority status for the purpose of vacations will be
determined as of June 30th of the vacation year.  The new vacation year begins each subsequent July 1.  New vacation time becomes available each
subsequent July 1.

 

The designated Shutdown period will be staffed as follows:

 

a.                           For
plant-wide maintenance, a Volunteer Sign-Up Sheet for Laborers required during
the shutdown will be posted two months prior to the shutdown for a period of
ten (10) working days.

 

b.                          Those
junior employees who cannot entirely cover the vacation period will be the
first volunteers selected for the above posted position(s).  However, these junior employees may only
volunteer for the time not covered by vacation.  Volunteers paid at Day Rate to a Maximum of Grade 5A.

 

c.                           Should
there be a need for additional manpower, seniority prevailing, all other
employees may volunteer.  Vacation may
be scheduled and paid at a later date according to Article IX, Section C.,
letter b.  Volunteers paid at Day Rate
to a Maximum of Grade 5A.

 

d.                          Should
the need for additional manpower still exist, remaining junior employees not
covered by vacation will be required to work. 
Junior employees will be paid at their Day Rate.

 

e.                           Should
the need for additional manpower still exist, junior employees will be required
to work, seniority prevailing.  Vacation
may be scheduled and paid at a later date according to Article IX, Section C.,
letter b.  Junior employees will be paid
at their Day Rate.

 

f.                             The
list of Laborers scheduled to work the shutdown will be posted five (5) days
after the posting period is completed. 
Those scheduled to work during the shutdown period will be subject to
the same Company Rules that govern any regular workday.

 

Section
B. VACATION PAY. Shall be computed on the basis of the
employee’s average hourly earnings for the 52 week period beginning and ending
closest to June 1, through May 31, or his/her rate of pay for the
classification for which he/she has worked for the majority of the vacation
year, whichever is higher, based on the following schedule:

 

	
  Length of
  Service

  	
   

  	
  Days of
  Vacation

  	
   

  
	
  Six (6) months
  to one (1) year seniority

  	
   

  	
  2

  	
   

  
	
  One (1) year to
  two (2) years seniority

  	
   

  	
  5

  	
   

  
	
  Two (2) years to
  five (5) years seniority

  	
   

  	
  10

  	
   

  
	
  Five (5) years
  and up to ten (10) years seniority

  	
   

  	
  12

  	
   

  
	
  Ten (10) years
  and up to fifteen (15) years seniority

  	
   

  	
  15

  	
   

  
	
  Fifteen (15)
  years to twenty (20) years seniority

  	
   

  	
  17

  	
   

  
	
  Twenty (20)
  years or more seniority

  	
   

  	
  20

  	
   

  

 

27

 

Vacation pay shall be paid as follows:

 

2 through 10 days:                                                                                                                                             Paid
in its entirety the last pay period before designated shutdown.

 

12 through 20 days:                                                                                                                                       Paid
when employee takes vacation, per Article IX, Section C.

 

Deductions for Medical contribution to be deducted from vacation
pay.  Calculated the same as if employee
was working.

 

Section
C. THIRD AND FOURTH WEEK VACATION REQUIREMENTS.

 

a.                           Employee
must have either ten (10), fifteen (15) or twenty (20) years of service prior
to June 30 to qualify.

 

b.                          One (1)
week notice must be submitted prior to the day(s) being requested.

 

c.                           Vacation
day(s) will be paid the following Friday of the workweek requested.

 

d.                          Third
and Fourth week cannot be added to the following year’s vacation.

 

e.                           Must be
approved by Human Resource Manager.

 

Average Hourly Earnings are computed as follows:

 

Total earnings less overtime premium less vacation pay
divided by the Total Hours Paid less Vacation Hours paid.

 

Section
D. LOST TIME QUALIFICATIONS. Employees who are formally
approved for retirement or who are or have been on a sickness or personal leave
of absence or have lost time due to permanent lay-off, shall receive, at the
time of separation, their accumulated vacation pay for the regular hours
actually paid with 1,700 hours as the 100% basis.

 

a.                           Employees
must work no less than 1,700 hours to qualify for 100% vacation time due.

 

b.                          Employees
who work less than 1,700 regular work hours will have vacation time due
pro-rated with 1,700 hours as the 100% qualifying figure against their actual
hours paid.

 

Section
E. LOST TIME ALLOWANCES. Deductions will not be made for lost
time due to injury or disease on the job compensable by Workers’ Compensation
within the vacation year of such injury.

 

Deductions will not be made for lost time due to
military reserve duty, lost time when on union business, injury or illness as
defined by the Sickness and Accident Weekly Benefits Plan, during the vacation
year, once employees have been off work for five (5) consecutive weeks.

 

When production is suspended because of fifty percent
(50%) or more of the Plant is shutdown due to lack of orders for instruments,
employees laid off because of the Plant shutdown will be allowed an additional
160 hours credit before deductions are made.

 

ARTICLE
X - UNION SECURITY

 

All employees who are covered by the representation clause in the
master contract and are present members of the Union, must as a condition of
employment, remain members in good financial standing except for assessments
and fines during the life of the master contract.

 

28

 

All employees hired into the bargaining unit described
in the representation clause of the master contract must, as a condition of
employment, join the Union within thirty (30) days from their hiring date and
remain members in good financial standing throughout the life of the master
contract.

 

The Company does agree, subject to applicable Federal
and State Laws, to a voluntary check-off of Union dues, provided such voluntary
check-off authorization meets with the approval of the Company.

 

This check-off by the Company of monthly dues does not
cover any assessment over and above the mandatory monthly dues as determined by
the National Administrative Committee of the Union.

 

ARTICLE
XI - MEDICAL EXAMINATION

 

Section
A. INJURY REPORTING. All employees must report all injuries
when they occur to their Supervisor, so it can be recorded and sent to the
dispensary, doctors or hospital.

 

Section
B. TRANSPORTATION TO COMPANY DOCTOR. The Company will provide
transportation to and from the Company recognized Medical Facility for those
employees injured on the job when necessary on the day of the injury only.

 

Section
C. LOST TIME-INJURY. An employee will be compensated for lost
time on the day of the injury when sent to Doctors or Hospital, but will not
exceed past the normal quitting time, providing a slip indicating the time lost
is turned back to their Supervisor, who will forward it to Human Resources.

 

Section
D. WORKERS’ COMPENSATION. If the treating physician for an
established workers’ compensation claim requires the employee to visit his
office or hospital during working hours for follow-up treatment, he/she shall
be compensated for loss of time up to a maximum of two (2) hours for each
visit.  However, this provision only
applies to appointments relating to treatment, or when the company requires and
schedules an independent medical exam during work hours.  Claims in excess of this amount shall be
determined between the Company and the Union Shop Committee.

 

Should an injury not be reported as per requirements,
and a claim filed by employee, the Company has no choice but to deny such claim
at the hearing.

 

ARTICLE
XII - GENERAL PROVISIONS

 

Section
A. UNION ACTIVITIES. The Company recognizes and will not
interfere with the right of its employees to become members of the Union.  The Union agrees that neither it nor any of
its officers or members will engage in any Union activity while such employees
are on Company time, unless it is mutually agreed by the Company.

 

The Shop Steward, Departmental Stewards and Shop
Committee shall be paid at the rate of their combined piecework and daywork
average straight time hourly earnings for all time spent in mutually agreed
upon meetings with Management during scheduled working hours.

 

In addition to pay for time spent in mutually agreed
upon meetings with Management during scheduled working hours, the Chairman of
the Shop Committee shall receive pay for up to ten (10) hours per week and the
Departmental Stewards shall receive pay for up to three (3) hours

 

29

 

per week for the time spent on problems arising under this Contract
which affect the mutual interest of the Union and the Company.

 

Section
B. TELEPHONE USAGE. It is agreed that the President of the
Union or his representative shall have use of the Company’s telephone at any
time to consult with the Mechanics Educational Society of America affiliated
with the UAW, or Government agencies’ representatives in regard to matters
covered by this Agreement.

 

Section
C. BULLETIN BOARDS. Are to be used solely for the purpose of
exhibiting official announcements of the Union and the Company.  The dedicated bulletin board for the union
is to be used solely for the purpose of posting official union business, and
may not include any personal announcements or statements.

 

Section
D. REST PERIODS. In effect during working hours and the
wash-up period at quitting time shall be continued.

 

Section
E. SUPERVISORS WORKING. No employee outside the bargaining
unit shall perform any work customarily performed by employees within the
bargaining unit.  It is agreed, however,
the Supervisors may perform such work while acting as instructors or assisting
in solving a production problem.  It is
further recognized that it is part of the normal procedure of supervision to
test and inspect.  During the period in
which a shortage of staffing exists due to absenteeism or assignment of
personnel to other jobs, the Shipping Department, Maintenance and Tool Room,
Machine Shop, and Repair Department Supervisors are excluded from this
limitation.

 

Section
F. TEMPORARY EMPLOYEE. Is one engaged by the Company for a
definite period of time, not in excess of ninety (90) days, to perform a
specific type of work that does not occur with regularity.  The Company agrees not to call in temporary
employees, if regular employees are available to do the work.

 

ARTICLE
XIII - FRINGES AND SCOPE OF THE AGREEMENT

 

Section
A. BENEFITS. The Company agrees to an insurance plan for its
employees under a policy or policies issued by an insurance company,
association or medical group as selected by the Company, subject to the right
of the Company to amend, cancel or reinsure the policies or change the
underwriters thereof, provided the benefits indicated herein are maintained for
the life of this Agreement.

 

The Company shall afford the employees an annual opportunity to enroll
in a Health Maintenance Organization.

 

1.                                      HOSPITALIZATION
PLANS.

 

AEtna
Select Choice HMO. 
Effective May 5, 2003.

 

	
  Contribution:  (Per Week)

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  
	
  Single Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  23.00

  	
   

  	
  $

  	
  23.00

  	
  **

  
	
  Family Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  40.00

  	
  **

  

 

30

 

Kaiser
HMO.  Effective May 5,
2003.

 

	
  Contribution:  (Per Week)

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  
	
  Single Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  16.00

  	
  **

  
	
  Family Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  22.00

  	
   

  	
  $

  	
  22.00

  	
  **

  

 

Kaiser
Added Choice. 
Effective May 5, 2003.

 

	
  Contribution:  (Per Week)

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  
	
  Single Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  22.00

  	
   

  	
  $

  	
  22.00

  	
  **

  
	
  Family Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  39.00

  	
   

  	
  $

  	
  39.00

  	
  **

  

 

**Employees contribution increases will be capped at $ 6.00 per week in
the second year.  If total premium
increases in the second year exceeds $12.00 per week (equally divided between
employees and company) the company and the union agree to secure competitive
bids from local providers and/or modify the plan design to maintain the
increase to $12.00 per week or less.

 

2. 
DENTAL PLAN. Effective May 5, 2003.

 

$1,000 Annual Maximum Benefits

 

	
  Preventative
  Services:

  	
   

  	
  100%,  no deductible

  	
   

  
	
  Basic
  Restorative:

  	
   

  	
  85%, $50 deductible

  	
   

  
	
  Major
  Restorative:

  	
   

  	
  50%, $50 deductible

  	
   

  

 

	
  Contribution:  (Per Week)

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  
	
  Single Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Family Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  0.50

  	
   

  	
  $

  	
  0.50

  	
   

  

 

3.  SICKNESS AND ACCIDENT WEEKLY BENEFITS.
Beginning with the first day of an accident or the eighth day of a sickness,
benefits will be payable for a maximum of 26 weeks for any one continuous
period of disability in any one year. 
If a period of illness exceeds two (2) weeks (14 days) for a
non-occupational sickness, the initial one (1) week (7 days) waiting period
will be waived.  The employee will be
paid from the first day of illness according to the following schedule:

 

$330 per week effective May 5, 2003

$335 per week effective February 16, 2004

 

31

 

4.  LIFE INSURANCE. $27,000
effective May 5, 2003; to $28,000 effective February 16, 2004.

 

5.  PENSION. Employees who
retired after February 16, 2000 shall receive a monthly benefit increase to
$20.00 per service year effective June 1, 2003; and increase to $21.00 per
service year effective January 1, 2004.

 

Section
B. MEDICARE INSURANCE PREMIUM. The Company will pay the
entire cost for those employees covered under Medicare Part B, reimbursing
those employees on a quarterly basis.

 

Section
C. RETIREE INSURANCE PREMIUM. All payments of premium by the
Company for insurance or hospitalization for employees, retired under the
provisions United Musical Instruments U.S.A., Inc. Retirement Plan for Hourly
Employees because of disability or otherwise, shall terminate during the month
following the month of retirement.

 

Section
D. CLAIMS PROCESSING. The Company shall bear all necessary
administrative expenses and agrees that in the administration of the insurance
plan, all claims shall be processed as expediently as possible.  All matters concerning benefits provided
under the insurance plan shall be governed by the terms and conditions of the
insurance policy or policies purchased by the Company.

 

Section
E. BENEFITS WAITING PERIOD. Employees shall become eligible
for sickness and accident insurance, life insurance and hospitalization/dental
coverage after they have completed three (3) months of accumulated service,
provided they are still actively at work and have enrolled.

 

Section
F. ONE MONTH LAY-OFF CLAUSE. All insurance coverage of an
employee shall be cancelled one (1) month following the month after lay-off
date.  The employee may exercise the
COBRA privilege as described in Section G of this Article.

 

Section
G. COBRA. If employment terminates for any reason other than
gross misconduct, or if the hours worked are reduced so that medical coverage
terminates, the employee and covered dependents may continue coverage under the
Company plan as outlined in the Summary Plan Description, provided the employee
and dependents are not covered under any other plan.  For the purpose of this provision, “gross misconduct” means any
violation of State or Federal laws.  Any
employee who elects to continue coverage under the Plan must pay the full cost
of the coverage.

 

If an employee becomes divorced or legally separated,
or if the employee’s  dependent child is
no longer an eligible dependent under the plan, the employee or another family
member must notify the Company within sixty (60) days.

 

Section
H. PLAN 125. An employee may choose to have their employee
contribution for Hospitalization/Dental Coverage deducted on a pre-tax basis
toward their share of the cost of the benefits.  The employee should refer to the Summary Plan Description of the
Benefit Plan for the Employees of United Musical Instruments U.S.A., Inc. for
details regarding this program.

 

32

 

Section
I. JURY DUTY. An employee who has completed his/her
probationary period and who serves as a juror during his/her regular work week,
Monday to Friday, inclusive, shall be excused from work for the days required
to serve, and will be paid eight (8) hours at average hourly earnings
(excluding night shift differential) for each day of jury service.  The employee must present satisfactory
evidence.  If an employee works his/her
regular shift in addition to performing jury duty, he/she shall not qualify for
payment under the provisions of this paragraph.

 

In order to qualify for Jury Duty pay, an employee
must present the Company with Notice to Report within two (2) working days
following receipt of such notice.

 

Section
J. BEREAVEMENT PAY. An employee who is actively on payroll
and has completed his/her probationary period will be granted as an excused
absence, in case of death in his/her immediate family and shall, following the
date of death, receive three (3) working days off with payment of his/her
average hourly earnings, excluding prior personal or sick leaves of absence.  The members of the immediate family are
considered to be father, mother, husband, wife, brother, sister, son, daughter,
mother-in-law, father-in-law, step-parents, grandparents or your spouse’s
grandparents.  Bereavement days occuring
during an employees vacation will displace vacation days (Example:  Employee is on a two (2) week vacation and a
death occurs in the immediate family, employee returning to work as scheduled
will only be charged with seven (7) vacation days).  Bereavement days occuring during a holiday will be taken
immediately after the holiday.

 

Section
K. RE-NEGOTIATION. It is understood and agreed between the
parties hereto that all economic issues, including, but not limited to wages
and so-called fringe benefits have been fully negotiated between the parties
and shall not be subject to further negotiation during the life of this
Agreement but all other matters not specifically set forth in this Agreement
shall be subject to negotiation during the term of the Agreement.

 

“COMPANY
RULES, REGULATIONS AND POLICIES”

 

In every business where many people work together, some specific rules
and regulations are necessary to define acceptable conduct and to promote the
smooth functioning of the business as a whole.

 

The purpose of the following rules is to insure all
employees safety and fairness in their cooperative effort, rather than to place
restrictions on any one individual.

 

The Company feels that a great majority of its
employees want to play the game fairly and will abide by the rules where they
are known.  For this reason, we have set
forth acts of misconduct which, if committed, will result in appropriate
disciplinary action.

 

When an employee is being counseled in line with a
discipline problem, the steward will be involved at the department level and
the Chairman of the Shop Committee at the Human Resources level.

 

INFRACTIONS
OF A MINOR NATURE

 

1.                           Absence
without an authorized reason.

 

16-Hour Policy:

 

a)                          Accumulated
16 hours or more absence during a four (4) week period.

 

33

 

b)                         Excuses
may be granted upon presentation of doctor’s report, or court order (under the
terms defined by Article II., Section E.).

 

2.                           Tardiness
without an authorized reason.

 

Lateness:

 

a)                          Five (5)
latenesses in a four (4) week period.

 

Late from Lunch:

 

a)                          Not
being at the work station by 11:45 a.m. will be considered late from lunch.

 

3.                           Loafing,
neglect or failure to perform assigned duties.

 

4.                           Improper
use of Company property.

 

5.                           Violation
of safety rules.

 

6.                           Failure
to be in assigned area or at station at required time.

 

7.                           Leaving
Department or job prior to authorized time.

 

8.                           Leaving
Department to use phone without obtaining required pass.

 

9.                           Creating
or contributing to unhealthful or unsanitary condition, or displaying signs,
obscene pictures or literature or distributing them.

 

10.                     Neglect of
duty or failure to meet reasonable measure of efficiency or productivity or
negligence resulting in inferior work, scrap, or waste.

 

11.                     Running or in
any other way creating a condition hazardous to the individual or fellow
employee.

 

12.                     Failure to
wear assigned safety garments or use of assigned safety equipment.

 

13.                     Solicitation
of employees for donations or memberships in outside organizations, circulation
of petitions or magazines in the Plant area without specific approval of the
Human Resources Department.

 

14.                     Being in an
area unauthorized in the Plant or on Plant property.

 

15.                     Being on
Company property while under the influence of alcohol, or any other illegal or
controlled substance.

 

16.                     Gambling of
any type.

 

17.                     Changing a
certain phase of a set operating procedure without proper authorization.

 

18.                     Posting of
notices or signs or writing in any form on official bulletin boards or removal
of approved notices without approval of the Human Resources Department.

 

19.                     Leaving the
Plant at break or lunch period and not returning without permission or
notification.

 

20.                     Entering or
leaving the Plant by other than the authorized area assigned.

 

21.                     Subtle forms
of harassment, intimidation, or inappropriate language or behavior.

 

22.                     Smoking in
non-designated, low fire hazard areas.

 

ANY EMPLOYEE COMMITTING ANY OF THE

ABOVE OFFENSES is subject to:

 

1st offense - written warning

2nd offense - written warning

3rd offense - written warning with counseling with
Department Steward.

 

34

 

4th offense - written warning with counseling with
Chief Shop Steward.

5th offense - dismissal

All warnings will remain in effect twelve (12) months
from time of infraction.

 

INFRACTIONS
OF A MAJOR NATURE

 

1.                           Excessive
Absenteeism:

 

a)                          Includes
the following missed work time:

•                              60
hours accumulated lost time per three (3) months includes:

•                              Out
Early, excused and unexcused

•                              Absences,
excused and unexcused

•                              All
latenesses

•                              Leave
of absences, personal/medical/FMLA, if approved will not count toward hours
included under the Excessive Absentee Policy.

1st Offense - Written warning with counseling by Human
Resources

2nd Offense - Written warning with three (3) days
suspension

3rd Offense – Dismissal

All warnings will remain in effect until the one (1)
year anniversary date from the date of infraction.

 

2.                           Insubordination
(willful disobedience of authority).

 

3.                           Theft.

 

4.                           Bringing,
having or consuming intoxicating beverages or narcotics in the Plant or on
Plant property.

 

5.                           Smoking
in high fire hazard areas (Department(s) 50, 51, 52, 55, Oil Room, Truck Docks,
Warehouse, and Hazardous Waste Storage Area).

 

6.                           Willful
damage to or unauthorized removal or appropriation of or defacing property
belonging to the Company or another employee.

 

7.                           Walking
off the job.

 

8.                           Punching
another employee’s time card in or out resulting in pay for time not worked.

 

9.                           Falsification
of personnel records.

 

10.                     Possession of
firearms or any type of weapon on company property.

 

11.                     Physical
violence, aggressive retaliatory actions, verbal threats, patterns of continued
intentional harassment, sexual harassment, or any serious violation of
discrimination laws.

 

12.                     Flagrant
violation or reckless disregard of any safety rule or policy which places the
employee or others in danger.

 

ANY EMPLOYEE COMMITTING ANY OF THE ABOVE OFFENSES IS SUBJECT
TO

DISCIPLINE UP TO AND INCLUDING DISCHARGE.

 

ARTICLE
XV - DURATION OF AGREEMENT

 

Section
A.  The Union and the
Company mutually agree that all of the provisions of the Agreement shall remain
in full force and effect without change up to and including February 15,

 

35

 

2005, unless changes by mutual agreement and shall continue from year
to year thereafter unless at least sixty (60) days prior to February 15, 2005,
or sixty (60) days prior to any anniversary date thereafter, either party
notifies the other, in writing of its desire to terminate, modify, or change
the Agreement.

 

Section
B. RETIREMENT AGREEMENT. It is agreed that all the provisions
of the Retirement Agreement for Hourly Employees will be continued to February
15, 2005, in order to coincide with the expiration of that Contract.

 

IN WITNESS WHEREOF, the parties have executed the foregoing Agreement
this 5th day of May, 2003.

 

U.A.W. LOCAL 2359

Bryant Harvey

Randol G. Lang

Larry Martin

Adam Rosciszewski Jr.

Scott Rosciszewski

Jack Swanson

REPRESENTATIVE OF U.A.W.

Bill Meany

CONN-SELMER, INC.

Edward H. Chesko

Robert R. Stone

David B. Woodruff

 

MEMORANDUM
OF AGREEMENT

 

Effective February 17, 1997, by mutual consent, the job classifications
for Polisher (5A41) and Buffer (5A42) will be recognized as separate jobs from
this day forward.  All previous related
memorandums of agreement will be considered null and void, and will not be
recognized from this day forward.  This
agreement does not change any portions of the current bargaining agreement, nor
does it change any other established employment practice not specifically
discussed.

 

MEMORANDUM
OF AGREEMENT

 

Effective February 17, 1997, by mutual consent, the overtime hours for
a five (5) hour Saturday clean-up schedule, within departments 50 and 52, will
be rotated between those that volunteer for the ‘available’ positions.  Only employees from departments 50, and 52
will be eligible to volunteer for the ‘available’ positions.  The ‘set’ positions on this clean-up crew
will be assigned by the company.

 

36

 

This policy will not apply to a three (3) hour Saturday clean-up
schedule within departments 50, and 52, or to any other overtime schedule in
other areas of the shop.

 

This agreement does not change any portions of the current bargaining
agreement, nor does it change any other established employment practice not
specifically discussed.

 

Letter of Understanding:

 

In the event
the company determines to outsource or subcontract work performed at the
facility, it will meet with the union to discuss the matter further.  While the company will endeavor to preserve
work at the facility, all outsourcing or subcontracting options will only be
used to improve the competitiveness of student trumpets, student cornets, and
student trombones, and also specifically the 3⁄4 Baritone (Model 623).  Other instruments may be added with mutual
agreement with the company and the union.

 

Letter of Understanding:

 

The cost of “emergency” medical treatment, for what was considered to
be a “certified” work related incident, that was later denied payment by the
OBWC and the employee’s medical insurance, will be reimbursed by the
company.  “Non-emergency” injuries or
illnesses, that may not be work related, or that will not be granted
“certification” by the company, will be referred to the employee’s physician;
and, if denied will not be eligible for reimbursement.

 

Letter of Understanding:

 

In the event the company determines to insource production operations
normally performed at other manufacturing facilities, or develop and refine
production operations for other manufacturing facilities, these same operations
will not be construed as permanently assigned to this manufacturing
facility.  This understanding, under
these terms, permits the company to restore, implement, or move these same
production operations to other alternative manufacturing facilities.

 

Letter of Understanding:

 

The company will organize a five (5) member team consisting of two (2)
supervisors and three (3) union employees to overview health and safety issues
related to buffing systems and

 

37

 

operations in Departments 50, 51, and 52.  The team will endeavor to cooperatively develop and monitor all
housekeeping, preventative maintenance, safe work practices, and safety
rules.  The Human Resources Manager and
the Chief Shop Steward will appoint their respective team members.  By June 20, 2003, a member of each
bargaining committee, along with this safety team, will meet to cooperatively
draft their goals and objectives to increase safety, decrease “no work” time,
and identify negligence for any related “no work” occurrence in these
departments.

 

The formation of this team, specific to Departments 50, 51, and 52,
will be in addition to the established Safety Committee.

 

Letter of Understanding:

 

An employee promoted to a supervisory or managerial position, or
appointed or elected to an assignment with the international union, shall be
granted such leave, and shall be guaranteed reemployment in the same or like
position, in line with his or her seniority at the prevailing rate of pay.  Seniority shall accumulate during such
leaves; however, all benefits provided under the terms of this collective
bargaining agreement shall terminate effective with the commencement of the
said leave, and shall reinstate upon return from said leave (based upon the
benefit levels, plans, and contributions in effect at that time).  Return rights, for either assignment, will
be limited to one occurrence per individual for future leave requests.  Any current leaves will not be accommodated
under these defined terms.

 

Letter of Understanding:

 

The company agrees to maintain the payroll cycle on a weekly basis, and
to provide continued access to direct deposit. 
Voluntary, after-tax deductions may be combined with the normal union
dues deduction (when processed each month). 
Any additional, voluntary after tax deductions must be summarized and
submitted with the monthly union dues check-off list.

 

Letter of Understanding:

 

The company agrees to amend the qualifying hours for accrued vacation,
for the 2003-04 vacation year, to 1,600 hours; and amend the qualifying hours
for payment credits, for the 2003 pension year, to 1,440 hours.

 

38

 

U.A.W.

 

LOCAL 2359

 

	
  /s/ Bryant Harvey

  	
   

  	
  /s/ Randol G. Lang

  	
   

  
	
  Bryant Harvey

  	
  Randol G. Lang

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Larry Martin

  	
   

  	
  /s/ Adam Rosciszewski Jr.

  	
   

  
	
  Larry Martin

  	
  Adam Rosciszewski Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Scott Rosciszewski

  	
   

  	
  /s/ Jack Swanson

  	
   

  
	
  Scott Rosciszewski

  	
  Jack Swanson

  

 

 

REPRESENTATIVE OF U.A.W.

 

 

	
  /s/ Bill Meany

  	
   

  	
   

  
	
  Bill Meany

  	
   

  

 

 

CONN-SELMER, INC.

 

 

	
  /s/ Edward H. Chesko

  	
   

  	
  /s/ Robert R. Stone

  	
   

  
	
  Edward H. Chesko

  	
  Robert R. Stone

  
	
   

  	
   

  
	
   

  
	
  /s/ David B. Wodruff

  	
   

  
	
  David B. Woodruff

  

 

39Exhibit 10-d-1

 

ROCKWELL
COLLINS, INC.

INCENTIVE
COMPENSATION PLAN

 

1.              Purposes

 

The purposes of the Incentive Compensation Plan (the “Plan”) are to
provide a reward and an incentive to employees of the Corporation in
managerial, staff or technical capacities who have contributed and in the
future are likely to contribute to the success of the Corporation and to
enhance the Corporation’s ability to attract and retain outstanding persons to
serve in such capacities.

 

2.              Definitions

 

For the purpose of the Plan, the following terms shall have the
meanings shown:

 

(a)           Board of Directors. 
The Board of Directors of Rockwell Collins.

 

(b)           Committee.  The Compensation Committee of
Rockwell Collins or such other Incentive Compensation Committee as may be
designated by the Board of Directors, consisting of members of the Board of
Directors who are not eligible to participate in the Plan.

 

(c)           Designated
Senior Executives.  The CEO,
executives reporting directly to the CEO, persons designated as executive
officers by the Board and VP/GM of business units.

 

(d)           Corporation.  
Rockwell Collins and its subsidiaries.

 

(e)           Employees.
Persons in the salaried employ of the Corporation (including those on
authorized leave of absence) during some part of the fiscal year for which an
award is made.  Unless he or she is also
an employee of the Corporation, no member of the Board of Directors shall be
eligible to participate in the Plan.

 

(f)            Goals.  The financial goals and measures for the
enterprise established by the Committee for the Plan each fiscal year.

 

(g)           Rockwell Collins.  Rockwell Collins, Inc.

 

(h)           Senior
Executive Plan.  Rockwell
Collins’ Annual Incentive Compensation Plan for Senior Executive Officers.

 

1

 

(i)            Target Incentive.  An estimated amount, expressed as a
percentage of an eligible Employee’s base earnings, that is targeted to be paid
after the end of the Corporation’s fiscal year to such eligible Employee if the
Goals are achieved at the targeted performance level.

 

3.              Annual Goals

 

(a)           Prior
to the beginning of the fiscal year, the Committee will consider key enterprise
measures; the weighting of the measures; and the threshold, target and maximum
performance required for payment of awards as part of the establishment of the
Goals for the new fiscal year.  The
Goals may include performance measures tied to business unit or shared service
measures for the Employees assigned to each unit.  These measures for the business units or share services will be
subject to approval by the Chief Executive Officer.

 

(b)           The
Committee may review the Goals during the fiscal year and make adjustments as
necessary for prior year performance or unforeseen current fiscal year events.

 

(c)           After
the end of the fiscal year, the Committee will review the Corporation’s level
of actual achievement of the key measures relative to the Goals for the year.

 

(d)           Eligible
employees will prepare and review with their supervisors individual goals for
each new fiscal year.  Performance
reviews on these individual goals between eligible Employees and their
supervisors may be held during the fiscal year and will be held after the end
of the fiscal year to evaluate individual performance.

 

4.              Awards

 

(a)            The
Target Incentive for each eligible Employee shall be established by the
Corporation and communicated to the Employee each fiscal year.  The Target Incentives for the Designated
Senior Executives shall be subject to approval by the Committee.

 

(b)            The
Chief Executive Officer of Rockwell Collins shall submit to the Committee,
within two and one-half months after the end of each completed fiscal year,
recommendations concerning awards for the completed fiscal year based on
enterprise and individual performance evaluation process contemplated in paragraph
3.

 

(c)            The
Committee, in its discretion, following its receipt of a recommendation
described in paragraph 4(b), shall determine for the immediately preceding
fiscal year (i) the extent to which awards, if any, shall be

 

2

 

made; (ii) the total dollars paid or payable for the awards to all
eligible Employees under this Plan (excluding amounts payable to Designated
Senior Executives, which are independently approved by the Committee); and
(iii) the amount of any award payable to each Designated Senior Executive.  The CEO is delegated the authority to
determine other individual awards consistent with the Committee approved level
of funding and general category of participants, for persons below the level of
the Designated Senior Executives.

 

(d)            The
Corporation shall promptly notify each person to whom an award has been made
and pay the award in accordance with the determinations of the Committee.

 

(e)            A
cash award may be made with respect to an employee who has died.  Any such award shall be paid to the legal
representative or representatives of the estate of such employee.

 

(f)            No unpaid installment of any award shall bear interest.

 

(g)            No
employee who receives an award under the Senior Executive Plan for any fiscal
year of the Corporation shall be eligible for award under this Plan for that
fiscal year.

 

5.              Finality of Determinations

 

The Committee shall have the power to administer and interpret the
Plan.  All determinations,
interpretations and actions of the Committee or Chief Executive Officer under
or in connection with the Plan shall be final, conclusive and binding upon all
concerned.

 

6.              Amendment of the Plan

 

The Board of Directors and the Committee shall each have the power, in
its sole discretion, to amend, suspend or terminate the Plan at any time,
except that no such action shall adversely affect rights under an award already
made, without the consent of the person affected.

 

7.              Miscellaneous

 

(a)           A
majority of the members of the Committee shall constitute a quorum.  The Committee may act by the vote of a
majority of a quorum at a meeting, or by a writing or writings signed by a
majority of the members of the Committee.

 

(b)           Notwithstanding
any other provisions of the Plan, if a Change of Control (as defined in Article
III, Section 13 (I) (1) of Rockwell Collins’ By-Laws)

 

3

 

shall occur, then unless prior to the occurrence thereof the Board of
Directors shall determine otherwise by vote of at least two-thirds of its
members, all unpaid installments of any awards made under the Plan prior to
such Change of Control shall forthwith become due and payable.

 

(c)           The
Corporation shall bear all expenses and costs in connection with the operation
of the Plan.

 

4

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