Document:

exv10w56

 

EXHIBIT 10.56

     THIS AGREEMENT is made as of June 18, 2002, by and between USEC Inc., a
corporation organized and existing under the laws of the state of Delaware
(hereinafter called “USEC”), and James R. Mellor, an individual (hereinafter
called the “Consultant”).

     IN CONSIDERATION of the mutual promises set forth herein, the parties
hereby agree as follows:

     1.     The term of this Agreement shall be from July 28, 2002 through July 27,
2003, unless sooner terminated pursuant to the terms hereof.

     2.     While this Agreement is in effect, the Consultant shall perform certain work
and services relating to USEC’s policies, procedures, commercial practices,
external affairs, strategic planning under the terms and conditions hereinafter
set forth.

     3.     While this Agreement is in effect, USEC shall compensate the Consultant
at a fixed price of Three Hundred Thousand Dollars ($300,000), payable in 12
equal monthly installments to be paid thirty (30) days after the last of each
month falling, in whole or in part, during the term of this Agreement,
excluding July 2002. USEC shall reimburse the Consultant for reasonable and
necessary travel and living expenses incurred by the Consultant in the
performance of the services described herein. Compensation for expenses shall
be made once monthly upon the Consultant’s furnishing to USEC a written
statement specifying such expenses. Payment terms shall be net 30 days.

     4.     In the performance of the work and services hereunder, the Consultant
shall act solely as an independent contractor and not as an employee of USEC.
All taxes applicable to any amounts paid by USEC to the Consultant under this
Agreement shall be the Consultant’s liability and USEC shall not withhold nor
pay any amounts for federal, state or municipal income tax, special security,
unemployment or worker’s compensation. In accordance with current law, USEC
shall annually file with the Internal Revenue Service a Form 1099-MISC, U.S.
Information Return for Recipients of Miscellaneous Income, reflecting the gross
annual payments by USEC to the Consultant pursuant to this Agreement, net of
any reimbursed expenses incurred by the Consultant on behalf of USEC. The
Consultant hereby acknowledges personal income tax liability for the
self-employment tax imposed by Section 1401 of the Internal Revenue Code, and
the payment, when applicable, of estimated quarterly taxes on Internal Revenue
Service Form 1040-ES, declaration of estimated tax by individuals.

     5.     All reports, findings, recommendations, data, memoranda or documents,
arising of out and relating to the services performed under this Agreement are
(and shall continue to be after the expiration of this Agreement) the property
of USEC or its assigns, and USEC shall have the exclusive rights to such
materials. The use of these materials in any manner by USEC or its assigns shall not result in any additional claim for compensation by the
Consultant. The

 

 

 Consultant shall hold confidential all information developed
by or communicated to the Consultant in the performance of the services,
whether described in this Agreement, in any scheduled executed pursuant hereto
or otherwise, other than information that is already in the public domain or
that becomes publicly available other than through an unauthorized disclosure
by the Consultant. Nothing herein shall preclude disclosure of confidential
information to officers, employees or directors of USEC and its subsidiaries
and affiliates, or to attorneys, advisers and consultants of USEC who are under
an obligation to USEC to keep such information confidential.

     6.     By entering into this Agreement with USEC, the Consultant represents
that he presently has no conflicting interests, agreements or obligations with
any other party. The Consultant shall promptly notify USEC in writing if a
change in circumstances creates, or appears likely to create, a conflict with
the Consultant’s obligations hereunder or an appearance that such a conflict
exists.

     7.     The Consultant hereby releases USEC from any and all liability for
damage to property or loss thereof, personal injury or death during the term of
this Agreement (and any extensions thereof) or thereafter, sustained by the
Consultant as a result of performing the services under this Agreement or
arising out of the performance of such services; provided, however, that the
foregoing release shall not apply to the extent such damage, loss, injury or
death is caused by or results from the negligence of USEC, its agents or
employees. Nothing herein shall deemed to limit the obligation of USEC, or any
USEC subsidiary or affiliate, to indemnify the Consultant under USEC’s articles
of incorporation or by-laws or under any indemnification agreement entered into
with the Consultant concerning the Consultant’s services as a director of USEC
or any USEC subsidiary or affiliate.

     8.     If the services to be performed by the Consultant include access to
classified material or areas, the Consultant shall comply with all applicable
security laws, regulations, orders and requirements. The Consultant shall
submit a confidential report to USEC immediately whenever for any cause he has
reason to believe that there is either (a) an active danger of espionage or
sabotage affecting any work under such government contracts, or (b) a violation
or threatened violation of any applicable security law, regulation, order or
requirement concerning the classified material or areas.

     9.     Either party may terminate this Agreement, for any reason or no reason,
at any time by a written notice to the other party. Such termination shall
take effect immediately upon receipt of a termination notice by the other
party, unless a different termination date is stated in the notice. Upon
termination of the Agreement, all work and services being performed under this
Agreement shall cease. USEC shall have no liability or obligation for any
performance by the Consultant after a termination takes effect.

     10. The Consultant may not assign this Agreement, nor may the Consultant
delegate or subcontract the performance or obligations imposed hereunder
without the consent of USEC.

 

 

     11.     The Consultant has no authority whatever, express or implied, by
virtue of this Agreement to commit USEC in any way to perform in any manner or
to pay money for services or material.

     12.     This Agreement is to be governed by the laws of the State of Delaware.

     13.     The whole and entire agreement of the parties is set forth in this
Agreement and the parties are not bound by any agreements, understandings or
conditions otherwise than as expressly set forth herein.

     14.     This Agreement may not be changed or modified in any manner except by
a writing mutually signed by the parties or their respective successors and
permitted assigns.

     15.     Any notice, request, demand, claim or other communication related to
this Agreement shall be in writing and delivered by hand or transmitted by
telecopier, registered mail (postage prepaid), or overnight courier to the
other party at the following number and addresses:

	 	 	 
	If to USEC:	 	
President and Chief Executive Officer

USEC Inc.

6903 Rockledge Drive

Bethesda, MD 20817-1818
	 
	If to Consultant:	 	
James R. Mellor

At his current address in USEC’s records

     16.     Nothing herein shall be deemed to limit or modify any duty or
obligation that the Consultant may have as a director of USEC or any of its
affiliates or subsidiaries.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first written above.

	 	 	 	 
	 	USEC Inc.
	 
	 
	 	By:	/s/ William H. Timbers
	 	 	

	 	 	
William H. Timbers

President and Chief Executive Officer	 
	 
	 	CONSULTANT	 
	 
	 	 	/s/ James R. Mellor
	 	 	

	 	 	
James R. Mellorexv10w57

 

EXHIBIT 10.57

CONTRACT BETWEEN

UNITED STATES ENRICHMENT CORPORATION

PADUCAH GASEOUS DIFFUSION PLANT

Hereinafter referred to as the “Company”

and

PAPER, ALLIED-INDUSTRIAL, CHEMICAL

AND ENERGY WORKERS

INTERNATIONAL UNION, AFL-CIO

AND/OR ITS LOCAL 5-550

Hereinafter referred to as the “Union”

July 31, 2001 – January 31, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	 	 	 	 	 	

	ARTICLE I — PURPOSE
	 	 	17	 
	ARTICLE II — RECOGNITION
	 	 	17	 
	 	 	Section 1 - Recognition
	 	 	17	 
	 	 	Section 2 - Employees defined
	 	 	17	 
	 	 	Section 3 - Pre-contract Incidents
	 	 	17	 
	 	 	Section 4 - Anti-Discrimination, Solicitation
	 	 	17	 
	ARTICLE III — UNION-COMPANY RELATIONS
	 	 	17	 
	 	 	Section 1 - Union Membership
	 	 	17	 
	 	 	Section 2 - Dues Deduction
	 	 	17	 
	 	 	Section 3 - Escape Periods
	 	 	18	 
	ARTICLE IV — CONTINUITY OF OPERATION
	 	 	18	 
	 	 	Section 1 - Continuity of Operation
	 	 	18	 
	 	 	Section 2 - Security
	 	 	18	 
	 	 	Section 3 – Restricted Access Security Clearance
	 	 	18	 
	ARTICLE V — RESPONSIBILITIES
	 	 	19	 
	ARTICLE VI — HOURS OF WORK
	 	 	19	 
	 	 	Section 1 - Definitions
	 	 	19	 
	 	 	 	a. Payroll Week
	 	 	19	 
	 	 	 	b. Normal Workweek
	 	 	19	 
	 	 	 	c. Normal Workday
	 	 	19	 
	 	 	 	d. Normal Hours — Shift
	 	 	19	 
	 	 	 	e. Normal Hours — Day
	 	 	19	 
	 	 	 	f. Working Schedule
	 	 	19	 
	 	 	 	g. Payroll Checks
	 	 	19	 
	 	Section 2 - Work Schedule Adjustments
	 	 	20	 
	 	 	 	a. Hours Not Limited
	 	 	20	 
	 	 	 	b. Schedule Changes
	 	 	20	 
	 	 	 	c. Not Offsetting Overtime
	 	 	20	 
	 	 	 	d. Shift Change Pay
	 	 	20	 
	 	Section 3 - Overtime Premium Pay
	 	 	20	 
	 	Section 4 - Call-In Pay
	 	 	20	 
	 	Section 5 - Reporting Pay
	 	 	20	 
	 	Section 6 - Overtime Distribution
	 	 	21	 
	 	Section 7 - Meal Allowance
	 	 	21	 
	 	Section 8 - Holidays
	 	 	22	 
	 	Section 9 - Seventh Day Premium Pay
	 	 	22	 
	 	Section 10 - Non-Pyramiding
	 	 	22	 
	 	Section 11 - Shift Trades
	 	 	23	 
	 	Section 12 - Jury Duty Pay
	 	 	23	 
	 	Section 13 - Voting Time Pay
	 	 	23	 
	 	Section 14 - Time Not Worked
	 	 	23	 

iii

 

	 	 	 	 	 	 
	 	Section 15 - Funeral Pay
	 	 	23	 
	ARTICLE VII — WAGES
	 	 	24	 
	 	Section 1 - Effective Date
	 	 	24	 
	 	Section 2 - Shift Premium
	 	 	24	 
	 	Section 3 - Nondiscrimination — Sex
	 	 	24	 
	 	Section 4 - Permanent Transfers
	 	 	24	 
	 	Section 5 - Temporary Transfers
	 	 	24	 
	 	Section 6 - Weekend Premium
	 	 	24	 
	 	Section 7 - Cost of Living Allowance
	 	 	24	 
	 	Section 8 - Shift Turnover
	 	 	25	 
	ARTICLE VIII — LAYOFF ALLOWANCE
	 	 	26	 
	 	Section 1 - Schedule
	 	 	26	 
	 	Section 2 - Base Date
	 	 	26	 
	 	Section 3 - Retirement Termination
	 	 	26	 
	 	Section 4 - Successor or Assigns
	 	 	26	 
	ARTICLE IX — DISABILITY PAY
	 	 	27	 
	 	Section 1 - Short Term
	 	 	27	 
	 	Section 2 - Long Term
	 	 	27	 
	 	Section 3 - Conditions of Payment
	 	 	28	 
	 	Section 4 - Administration of Plans
	 	 	29	 
	 	Section 5 - Company Service Credit During Approved Non-
occupational or Occupational Absences
	 	 	29	 
	ARTICLE X — LEAVE OF ABSENCE
	 	 	29	 
	 	Section 1 - Personal Leave
	 	 	29	 
	 	Section 2 - Union Officials
	 	 	29	 
	 	Section 3 - Reinstatement
	 	 	30	 
	 	Section 4 - Group Insurance
	 	 	30	 
	 	Section 5 - Hospitalization
	 	 	30	 
	 	Section 6 - FMLA
	 	 	30	 
	ARTICLE XI — VACATIONS
	 	 	30	 
	ARTICLE XII — SENIORITY
	 	 	31	 
	 	Section 1 - Definitions
	 	 	31	 
	 	Section 2 - Seniority
	 	 	31	 
	 	Section 3 - Reduction in Force
	 	 	32	 
	 	Section 4 - Filling Vacancy
	 	 	33	 
	 	Section 5 - Transfers Outside Unit
	 	 	33	 
	 	Section 6 - Seniority List
	 	 	34	 
	 	Section 7 - Transfers
	 	 	34	 
	ARTICLE XIII — GRIEVANCE PROCEDURE
	 	 	34	 
	 	Section 1 - Representation
	 	 	34	 
	 	Section 2 - Grievance Steps
	 	 	35	 
	 	Section 3 - Company Decision
	 	 	36	 
	 	Section 4 - Time Limits
	 	 	36	 
	 	Section 5 - Calculation of Time
	 	 	36	 
	 	Section 6 - Certification of Union Representatives
	 	 	36	 
	 	Section 7 - Settlements
	 	 	36	 

iv

 

	 	 	 	 	 	 
	ARTICLE XIV — ARBITRATION
	 	 	36	 
	 	Section 1 - Arbitration
	 	 	36	 
	 	Section 2 - Appeal to Arbitration and Authority of Arbitrator
	 	 	36	 
	 	Section 3 - Expense, Security
	 	 	37	 
	 	Section 4 - Witnesses
	 	 	37	 
	 	Section 5 - Arbitrator, Time Limits
	 	 	37	 
	ARTICLE XV — MISCELLANEOUS
	 	 	37	 
	 	Section 1 - Non-Bargaining Unit Personnel Performing Work
	 	 	37	 
	 	Section 2 - Safety Committee
	 	 	37	 
	 	Section 3 - Health and Safety
	 	 	38	 
	 	Section 4 - Company Service Credit
	 	 	38	 
	 	Section 5 - Bulletin Boards
	 	 	38	 
	 	Section 6 - Personal Absence
	 	 	38	 
	 	Section 7 - No Discrimination
	 	 	38	 
	 	Section 8 - Coveralls, Thermal Underwear
	 	 	39	 
	 	Section 9 - Reprimands
	 	 	39	 
	 	Section 10 - Telephone Calls Received At Home
	 	 	39	 
	 	Section 11 - E-Squad Members-Training
	 	 	39	 
	 	Section 12 - CDL Premium For Truck Drivers
	 	 	39	 
	 	Section 13 - Benefit Representative & ES&H Representative
	 	 	39	 
	ARTICLE XVI — EDUCATIONAL ASSISTANCE
	 	 	39	 
	ARTICLE XVII — TERM OF CONTRACT
	 	 	40	 
	 	Section 1 - Successor or Assigns
	 	 	40	 
	 	Section 2 - Duration
	 	 	40	 
	APPENDIX A
	 	 	42	 
	GENERAL PROVISIONS
	 	 	44	 
	TABLE II — JOB CLASSIFICATION
	 	 	45	 
	APPENDIX B — STEWARD DISTRICTS, COMMITTEE DIVISIONS
	 	 	46	 
	APPENDIX C — JOB CLASSIFICATION GROUP LISTING
	 	 	47	 
	APPENDIX D — VACATION REGULATIONS
	 	 	48	 
	APPENDIX E — COMPANY SERVICE CREDIT RULES
	 	 	52	 
	APPENDIX F — PERSONAL ABSENCE WITHOUT PAY
	 	 	53	 
	PENSION, GROUP INSURANCE AND DENTAL AGREEMENT
	 	 	54	 
	 	Part A — Pension Plan
	 	 	54	 
	 	Part B — Group Insurance Plan
	 	 	55	 
	 	Part C — Dental Insurance Plan
	 	 	56	 
	 	Part D — General Provisions
	 	 	56	 
	MEMORANDUM OF AGREEMENT, HEALTH CARE PLAN
	 	 	58	 
	MAJOR FEATURES COMPARISON OF PREVIOUS &
	 	 	 	 

v

 

	 	 	 	 	 	 	 
	NEW BENEFIT PLANS
	 	 	59	 
	 	 	Dental
	 	 	60	 
	 	 	Life Insurance
	 	 	60	 
	 	 	Flexible Spending Accounts
	 	 	61	 
	 	 	Savings Plan
	 	 	61	 
	 	 	Special Accident Insurance
	 	 	65	 
	 	 	Medical
	 	 	67	 
	 	 	Prescription Drug Plan
	 	 	72	 
	 	 	Vision Care
	 	 	72	 
	MEMORANDUM OF UNDERSTANDING—WORKFORCE FLEXIBILITY
	 	 	74	 
	MEMORANDUM OF UNDERSTANDING—ELIMINATION OF
	 	 	 	 
	 	SCALE MECHANIC CLASSIFICATION
	 	 	76	 
	MEMORANDUM OF UNDERSTANDING—HOURS OF WORK LIMITATIONS
	 	 	77	 
	ADMINISTRATIVE LETTERS
	 	 	78	 

vi

 

INDEX BY SUBJECT MATTER

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Absences:
	 	 	 	 
	 	 	Disability
	 	 	27	 
	 	 	Funeral
	 	 	23	 
	 	 	Jury Duty
	 	 	23	 
	 	 	Leave of Absence
	 	 	29	 
	 	 	Voting Time
	 	 	23	 
	Administrative Letters
	 	 	78-95	 
	 	 	Arbitration
	 	 	36	 
	Benefit Plans
	 	 	54-73	 
	 	 	Administrative Letter
	 	 	93,95	 
	 	 	Dental
	 	 	54,56,60	 
	 	 	Flexible Spending Accounts
	 	 	61	 
	 	 	Life Insurance
	 	 	60	 
	 	 	Medical
	 	 	67-73	 
	 	 	Prescription Drug Plan
	 	 	72	 
	 	 	Savings Plan
	 	 	61-65	 
	 	 	Special Accident Insurance
	 	 	65-66	 
	 	 	Vision Care
	 	 	72-73	 
	Bulletin Boards
	 	 	38	 
	Call-In, Overtime
	 	 	20	 
	CDL Premium
	 	 	39	 
	Changes in Working Schedule
	 	 	20	 
	Clothing
	 	 	39	 
	Committees:
	 	 	 	 
	 	Grievance Committee
	 	 	34	 
	 	Safety Advisory Committee
	 	 	37	 
	Company Responsibilities
	 	 	19	 
	Company Service Credit Rules
	 	 	52	 
	Cost of Living Allowance
	 	 	24	 
	Daylight Savings Time
	 	 	94	 
	Definitions
	 	 	19,31	 
	Delayed Lunch Period
	 	 	19	 

vii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Dental Insurance Plan
	 	 	54,56,60	 
	 	 	Disability Pay:
	 	 	 	 
	 	 	Non-occupational
	 	 	27-29	 
	 	 	Occupational
	 	 	27-29	 
	 	 	Payment Schedule
	 	 	28	 
	 	 	 	 	Condition of Payment
	 	 	28	 
	 	 	 	 	Short Term
	 	 	27,29	 
	 	 	 	 	Wage Increase
	 	 	80	 
	 	 	 	 	Long Term
	 	 	27,29	 
	Disciplinary Suspension or Discharge
	 	 	19,35	 
	 	 	 	2-Day Suspension
	 	 	82	 
	Discrimination:
	 	 	 	 
	 	 	 	Nondiscrimination Clause
	 	 	38	 
	Double Time
	 	 	22	 
	Educational Assistance
	 	 	39	 
	Emergency Squad Members
	 	 	39	 
	Flexible Spending Accounts
	 	 	61	 
	FMLA
	 	 	30	 
	General Provisions
	 	 	44	 
	Grievance Procedure
	 	 	34	 
	Group Insurance Plan
	 	 	54-55	 
	Health Care Plan
	 	 	58	 
	Holidays
	 	 	22	 
	 	 	Temporarily Reclassified
	 	 	79	 
	Hours of Work
	 	 	19	 
	Hours of Work Limitations
	 	 	77	 
	Job Bidding
	 	 	33	 
	 	 	Job Classifications:
	 	 	 	 
	 	 	Job Classification and Rate Groups
	 	 	45	 
	 	 	Job Classification Groups (Seniority)
	 	 	47	 
	 	 	Operator Restructuring
	 	 	92	 
	Jury Duty
	 	 	23	 
	Layoff Allowance
	 	 	26	 

viii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Layoff Procedure
	 	 	32	 
	Leave of Absence
	 	 	29	 
	Life Insurance
	 	 	60	 
	Loss of Seniority
	 	 	31	 
	Meal Allowance
	 	 	21	 
	Merit Progression Increases
(General Provisions)
	 	 	44	 
	Miscellaneous
	 	 	37	 
	No Strike Clause
	 	 	18	 
	Payroll Checks
	 	 	19	 
	Pension Plan
	 	 	54	 
	Operator Restructuring
	 	 	92	 
	Overtime
	 	 	20	 
	 	 	Call-In
	 	 	20	 
	 	 	Double Time
	 	 	22	 
	Pension, Group Insurance and Dental Agreement
	 	 	54	 
	Permanent Restriction
	 	 	78	 
	Personal Absence Without Pay
	 	 	53	 
	Physically Handicapped
	 	 	32	 
	Plant Committee Divisions
	 	 	46	 
	Prescription Drug Plan
	 	 	72	 
	Probationary Period
	 	 	31,44	 
	Promotions
	 	 	44	 
	Recall List
	 	 	31,34	 
	Reduction in Force (Procedure)
	 	 	32	 
	Rehiring
	 	 	52	 
	Reprimands
	 	 	82	 
	Retirement Layoff Allowance
	 	 	26	 

ix

 

	 	 	 	 	 	 
	Safety
	 	 	37-38	 
	Safety Shoes
	 	 	38	 
	Savings Plan
	 	 	61-65	 
	Scale Mechanic Classification Deletion
	 	 	76	 
	Security
	 	 	18	 
	Seniority
	 	 	31-34	 
	Seniority List
	 	 	31,34	 
	 	Recall List
	 	 	31,34	 
	 	Seniority Groups
	 	 	47	 
	Shared Tasks
	 	 	74-75	 
	Shift Preference
	 	 	20	 
	Shift Premium
	 	 	24	 
	Shift Change
	 	 	20	 
	Shift Trading
	 	 	23	 
	Shift, “12-hour”
	 	 	90	 
	Sleeping Accommodations, Overtime
	 	 	21	 
	Special Accident Insurance
	 	 	65-66	 
	Steward Districts
	 	 	46	 
	Telephone Calls Received At Home
	 	 	39	 
	Temporary Reassignment
	 	 	24	 
	Term of Contract
	 	 	40	 
	Training—E-Squad
	 	 	39	 
	Transfers, Work Groups
	 	 	84	 
	Union/Company Relationship
	 	 	17	 
	Union Dues
	 	 	17	 
	Union Membership
	 	 	17	 
	Union Recognition
	 	 	17	 

x

 

	 	 	 	 	 	 	 
	Union Representatives
	 	 	34	 
	Vacancies, Filling of
	 	 	33	 
	Vacation Eligibility
	 	 	30	 
	Vacation Regulations
	 	 	48	 
	 	Carry Forward Option
	 	 	51	 
	 	Disability Absence
	 	 	50,81	 
	 	Pay in Lieu of
	 	 	51	 
	 	Scheduling
	 	 	48	 
	 	Split Week
	 	 	49	 
	 	Temporarily Reclassified
	 	 	79	 
	Vision Care Plan
	 	 	72-73	 
	Voting Time
	 	 	23	 
	Wages
	 	 	24	 
	 	Disability
	 	 	80	 
	 	Schedules:
	 	 	 	 
	 	 	July 31, 2001
	 	 	42	 
	 	 	July 31, 2002
	 	 	43	 
	Weekend Premium
	 	 	24	 
	Work Assignment:
	 	 	 	 
	 	Selection and Direction of Working Force
	 	 	19	 
	 	 	Shared Tasks
	 	 	74-75	 
	 	Work by Non-Bargaining Unit Personnel and Research
Personnel
	 	 	37	 
	 	Work by First-Line Managers
	 	 	83	 
	 	Working Schedule
	 	 	19	 
	 	Work Groups
	 	 	84-89	 

xi

 

NOTES

xii

 

NOTES

xiii

 

NOTES

xiv

 

ARTICLE I

PURPOSE

It is the intent of the parties that this contract will constitute the complete
agreement between the parties hereto, and that no additions, waivers,
deletions, changes or amendments shall be made during the term of this contract
except by written agreement of the parties.

ARTICLE II

RECOGNITION

Section 1.  In conformity with the Labor-Management Relations Act, the Company
recognizes the Union as the sole and exclusive bargaining agent for all hourly
rated employees, excluding Guards and salaried employees (semi-monthly or
weekly), with respect to rates of pay, wages, hours of employment, and other
conditions of employment.

Section 2.  The term “employee” as used herein will mean any person represented
by the Union as described in Section 1 above. For the purpose of this
Agreement the use of the masculine pronoun or derivative thereof shall be
applied as to include both male and female.

Section 3.  It is understood that no incident, which occurred prior to the
effective date of this contract shall be the subject of complaint under any of
the procedures provided in this contract. Grievances arising under the terms of
the previous contract shall be processed in accordance with such terms.

Section 4.  The Company agrees not to interfere with the right of employees to
join or belong to the Union and the Union agrees not to intimidate or coerce
employees to join the Union. The Company further agrees not to discriminate
against any employee on account of Union membership or Union activity, and the
Union agrees neither to solicit for membership, collect Union funds, nor to
engage in other Union activity on Company time unless specifically provided for
in this contract.

ARTICLE III

UNION-COMPANY RELATIONSHIP

Section 1.  All employees within the Bargaining Unit who are members of the
Union upon the execution of this Contract shall, as a condition of employment,
maintain their membership to the extent of tendering the periodic dues
uniformly required as a condition of retaining membership. All employees in
the Bargaining Unit who are not members of the Union upon the execution of this
Contract, will within thirty (30) days join the Union, and shall at all times
thereafter maintain their membership in the Union as a condition of employment,
as set forth above.

Section 2.  Upon receipt of proper written authorization from an employee, the
Company agrees to deduct from the wages of said employee dues uniformly
applicable to all members as certified to the Company by the Union. Payroll
deductions of appropriate incremental amounts will be made on a weekly basis
until the regular monthly dues amount has been collected unless the employee’s
paychecks during the month are insufficient to cover the monthly dues amount.
Dues deducted and collected for the month will be forwarded to the Financial
Secretary of the Union.

15

 

Section 3.  The authorization
shall be in the following form submitted by the Union:

I hereby assign to my Local Union affiliated with the PACE International Union
from any wages earned or to be earned by me, the amount of my monthly dues and
initiation fee in said Union.

I authorize and direct any employer to deduct such amounts from my pay each
month and to remit the same to the order of the financial secretary of my Local
Union in accordance with the terms of this Agreement.

This assignment, authorization and direction shall be irrevocable for the
period of one (1) year from the date appearing below or until the termination
date of the current collective bargaining agreement between the Company and the
Union, whichever occurs sooner, and I further agree and direct that, regardless
of my membership status in the Union, this assignment, authorization and
direction shall be automatically renewed and shall be irrevocable for
successive periods of one (1) year each or for the period of each succeeding
applicable collective bargaining agreement with the Union, whichever shall be
shorter, unless written notice is given by me to the Company and the Union not
more than thirty (30) days or less than ten (10) days prior to the expiration
of each period of one (1) year or of each collective bargaining agreement,
whichever occurs sooner.

	 	 	 
	Date           
                            
                            
             	 	
Signature of Employee           
                            
                        
	Name (print)           
                            
                     	 	
PACE Local No.           
                            
                             
             
	Address           
                            
                        
          	 	
City and State           
                            
                             
                
	Social Security No.           
                             	 	
Clock No.           
                            
                             
                       
	Employed by           
                            
                   	 	
Dept.           
                            
                             
                              

ARTICLE IV

CONTINUITY OF OPERATION

Section 1.  There will be no strikes, lockouts, work stoppages, picket lines,
slowdowns, secondary boycotts, or disturbances, even of a momentary nature. The
Union agrees to support the Company fully in maintaining operations in every
way. Participation by any employee, or employees, in an act violating this
provision in any way will be complete and immediate cause for discharge
by the Company.

Section 2.  It is recognized that all members of the Union and the Company are
required to comply with all protective security measures now in effect. If it
is found that this contract or any part of this contract in any way violates
security measures which are now in effect, or which may be put into effect
later, and the Company and the Union are notified by the proper authority as to
the section or sections of the contract in question, negotiations will begin
immediately for the purpose of making required changes.

Section 3.  Restricted Access Security Clearance. If the Department of Energy
places an employee’s security clearance on restricted access, the Company shall
place the employee in a work area where she/he can work temporarily with a
restricted access security clearance while the Department of Energy and the
employee resolve the security clearance matter. The Company will continue the
employee’s employment in such temporary work area until the Department of
Energy removes the restricted access from the security clearance, or the
security clearance is revoked. While the employee is in this temporary work
area he/she will be required to perform productive work in some capacity, which
the employee can safely perform.

16

 

ARTICLE V

RESPONSIBILITIES

Subject to the Union rights as set forth in this contract the company shall
continue to exercise its exclusive responsibility, such as the selection and
direction of the working forces, and the rights to promote, demote, transfer,
hire, retire, discipline, discharge, and to determine the qualifications of an
employee are vested with the Company. Claims of discriminatory or arbitrary
promotion, demotion, discipline, or discharge shall be subject to and decided
through the Grievance Procedure and Arbitration in this contract.

ARTICLE VI

HOURS OF WORK

Section 1. Definitions:

	(a)	 	The payroll week consists of seven (7) days extending from midnight
Sunday to midnight Sunday the following week.
	 
	(b)	 	The normal workweek consists of forty (40) hours within a payroll week.
	 
	(c)	 	The normal workday consists of eight (8) hours of work.
	 
	(d)	 	The normal hours for rotating shift workers are 7:00 a.m. to 7:00 p.m.
and 7:00 p.m. to 7:00 a.m.
	 
	(e)	 	The normal hours for straight day workers are from 7:00 a.m. to 3:30
p.m., Monday through Friday with a thirty (30) minute non-paid lunch
period. No time will be deducted for lunch periods when an employee’s
scheduled non-paid lunch period is delayed under the following
circumstances:

	 	  (1)	 	The delay is ordered by the employee’s first-line manager.
	 
	 	  (2)	 	The delay causes the employee’s lunch period to start five (5)
hours or more after his starting time.
	 
	 	  (3)	 	The minimum amount of time necessary will be taken to eat lunch and
in no case to exceed thirty (30) minutes.
	 
	 	  (4)	 	Shift workers will be permitted to have a lunch period beginning no
later than five (5) hours after the beginning of a shift.

	(f)	 	The term working schedule means the arrangement of shift hours to
be worked and regular shift changes for employees working on shifts and
the regular scheduled arrangement of hours to be worked by straight day
workers.
	 
	(g)	 	All bargaining unit payroll checks shall be distributed to the
employees on Friday. The payroll checks shall be hand delivered to
employees at plant site, mailed, or direct deposited into a designated
account.

17

 

Section 2.

     (a)  The provisions of this contract shall not be considered as a guarantee
by the Company of a minimum number of hours per day or per week, or pay in lieu
thereof, nor a limitation on the maximum hours per day or per week, which may
be required to meet operating conditions.

     (b)  The Company may adjust the working schedule of employees in any group
to meet operating requirements and employees may be assigned regularly or
temporarily to a schedule other than the normal hours. Plant seniority shift
preference within a group will be granted annually to employees upon request.
Such annual request must be made no later than January 1, with any change
resulting therefrom to be made not later than the week beginning after March 1.

	 	 	Such preference may be exercised between seven (7) day rotating shifts and
five (5) day rotating shifts and other specific shifts except that such
preference cannot be exercised between individual letter shifts within a
given rotating shift.
	 
	 	 	Seniority shift preference within a shift preference group will be granted
in filling vacancies lasting more than five (5) working days. Seniority
shift preference will not apply to vacation relief or to vacancies caused by
exercise of seniority shift preference. An employee must be qualified to
perform the work involved when a vacancy occurs other than the annual
exercise of seniority shift preference.

	(c)	 	Employees who work overtime shall not be required to take time off to
offset the overtime work.
	 
	(d)	 	If a change is made in an employee’s work schedule from one established
shift to another established shift for the payroll week in which he is
notified or less than twenty-four (24) hours prior to the beginning of the
payroll week, such employee will be paid for the first eight (8) hours
worked on the new schedule at one and one-half (1-1/2) times the
employee’s straight-time hourly rate, except when such change is made at
the request of or for the convenience of the employee. A change in
scheduled days off will be considered a shift change.

Section 3.  One and one-half (1-1/2) times the straight-time hourly rate shall
be paid for all hours worked in excess of eight (8) in any twenty-four (24)
hour period or for all hours worked in excess of forty (40) within the
applicable payroll week as defined in Section 1 of this Article, whichever of
these alternatives provides at the end of the payroll week the greater total
pay. An employee who is required to work in excess of sixteen (16) continuous
hours, excluding the non-paid lunch hour of a day worker, shall be paid two (2)
times the straight-time hourly rate for all such continuous hours worked in
excess of sixteen (16).

Section 4.  An employee who has left the plant and is called in by the Company
to perform work outside of his regular scheduled shift will receive not less
than four (4) hours pay at straight-time, or pay at one and one-half (1-1/2)
times his regular rate as overtime pay for such work performed, whichever is
greater.

Section 5.

	(a)	 	An employee who reports for work on his regular shift without previously
having been notified not to report, will be given at least four (4) hours
work, or if no work is available, four (4) hours pay, except that if work
is unavailable as the result of causes beyond the control of the Company,
it shall not be so obligated.

18

 

	(b)	 	Failure on the part of an employee to keep the Company informed of his
current address will relieve the Company of its responsibility under this
section of the contract.

Section 6.

	(a)	 	Overtime will be distributed in such a manner that each employee within
an overtime group will receive his fair share. An overtime spread of
sixteen (16) hours between the low employee in the overtime group and the
high employee will be considered a reasonable and fair distribution of
overtime among employees in the group. Overtime work offered and refused
will be counted as overtime worked. A record of overtime will be kept up
to date and posted in an accessible location to enable employees to
review. The overtime rules shall continue to be used as a means to
implement the fair distribution of overtime within an overtime group. An
employee can be on only one overtime list at a time.

	 	 	In scheduled overtime situations where an employee is improperly bypassed
for overtime in violation of the Contract, the bypassed employee will be
compensated by awarding him the next overtime assignment for which
qualified.

     Alternate lists will be provided and time permitting, will be polled prior
to a compulsory assignment. The Company agrees to meet with the Union to
discuss and seek resolution of difficulties, which may exist in the
administration of overtime distribution. These meetings between Company
management and the appropriate Union officials will be held on a semiannual
basis.

	 	 	If a troubleshooting or emergency repair task cannot be completed during a
scheduled shift, scheduled overtime, or emergency call-in, the Company
reserves the right to request an individual having specific job knowledge,
based on having worked on the task immediately prior to the need to continue
the work task, to continue working.

     NOTE:  The overtime rules referenced in Article VI, Section 6(a) shall be
revised to state that, “All overtime opportunities shall be offered in four-
(4), six- (6), eight- (8), ten- (10) or twelve- (12) hour increments of
overtime, other than call-in overtime.”

	(b)	 	Sleeping accommodations will be provided for these employees held over on
compulsory overtime assignments and who are without transportation.
	 
	(c)	 	Employees held over past their scheduled quitting time will be provided
with a minimum of four (4) hours of work except in those instances where
tardy relief is the cause of the holdover. When necessary, an employee on
tardy relief will be furnished transportation home within a reasonable
time.

Section 7.

	(a)	 	An employee who is required to work overtime and who works ten (10) or
more continuous and successive hours (excluding the noon lunch period of a
day worker) will be paid a meal allowance of four dollars and seventy-five
cents ($4.75) which will be included in his regular pay check. An
additional meal allowance will be allowed for each four (4) hours of
consecutive work performed thereafter. If an employee is paid a meal
allowance and arrangements are not made for him to have

19

 

	 	 	time to eat within the hour thereafter, he will be credited with thirty (30)
minutes additional work time.
	 
	(b)	 	No time will be deducted for lunch periods during such overtime work, it
being understood that they will be made as short as possible and in no
case exceed thirty (30) minutes.

Section 8.

	(a)	 	The following are recognized holidays: New Year’s Day, Martin Luther
King, Jr.’s Birthday, Good Friday, the last Monday in May, Independence
Day, Labor Day, Thanksgiving Day, the day following Thanksgiving Day,
Christmas Eve, and Christmas. Martin Luther King, Jr.’s Birthday is
observed on the third Monday in January; Companion to Independence Day is
observed Friday, July 5, 2002. The July 4th and Companion Day holiday
will be taken back-to-back by rotating shift workers electing the
Companion Day holiday. If any of the above holidays fall on Sunday,
Monday shall be recognized as the holiday. If any of the above holidays
fall on Saturday, the preceding Friday shall be recognized as the holiday
except that any employee normally scheduled to work on one of the above
recognized calendar holidays that fall on Saturday or Sunday, such
recognized calendar holiday will be his recognized holiday. If any of the
above holidays fall on an employee’s scheduled off day, his first
succeeding scheduled work day shall be recognized as the holiday except
that where Thanksgiving Day or Christmas Eve falls on an employee’s
scheduled off day, it will be recognized on the first preceding scheduled
work day.
	 
	(b)	 	A rate of two and one-half (2-1/2) times the straight-time hourly rate
shall be paid for all hours worked on the eleven (11) recognized holidays.
	 
	(c)	 	Employees will be paid for recognized holidays not worked an amount
equivalent to eight (8) times the employees’ straight-time hourly rate,
subject to the following conditions:

	 	  (1)	 	Such pay shall be made to the employee only if the recognized
holiday would normally have been worked by the employee if it had not
been a holiday.
	 
	 	  (2)	 	An employee who is instructed to work on a holiday but who fails to
report and does not have an acceptable excuse, will receive no pay for
the holiday.
	 
	 	  (3)	 	To be eligible for holiday pay an employee must report for work on
his last regularly scheduled working day immediately preceding the
holiday and the first regularly scheduled workday immediately following
his holiday, unless excused by the Company.

	(d)	 	If a designated holiday occurs during an employee’s vacation and that
employee would otherwise have been scheduled to work on that day had it
not been a holiday, such employee shall receive eight (8) hours pay at his
straight-time hourly rate in addition to his vacation pay. At the request
of the employee, the first-line manager may, at his discretion, grant the
employee an extra day off without pay immediately preceding or following
his vacation. Such days of absence will not be used for corrective
absentee control measures.

Section 9.  Double time will be paid for all hours worked on the seventh (7th)
consecutive day worked in any payroll week.

20

 

Section 10.  Overtime premium shall not be duplicated for the same hours under
any of the terms of this contract, and to the extent that hours are compensated
for at overtime premium rate under one provision they shall not be counted as
hours worked in determining overtime compensation under the same or any other
provision.

Section 11.  Employees may not trade shifts or days off except with the prior
approval of their respective first-line manager and further provided that no
overtime premium is involved.

Section 12.  An employee who is called for jury duty may be excused from work
upon presentation of court notice to his immediate first-line manager. The
employee who has been so excused will be paid his normal straight-time earnings
and the fees received from the court, provided he submits evidence of the
amount received from the court. Only the number of his scheduled work days
actually spent in court are counted in calculating payment. Employees who
would be working the hours between 7:00 a.m. and 3:30 p.m. were they not on
jury duty who are not called at the opening of court for actual jury duty and
who are excused for the remainder of the day shall report to work within a
reasonable time after being excused. An employee will not be required to
change shifts because of jury duty.

Section 13.  Employees who are unable to vote because of a conflict between
voting hours and scheduled working hours in a national, state, county, or
municipal election will be allowed sufficient time off to vote provided that
they are eligible to vote. Such eligible voting employees will be paid for
such absence for a period not to exceed two (2) hours.

Section 14.  In determining if an employee is to be paid in accordance with
Section 3 and Section 9 of this Article VI, each of the holidays in Section 8,
which would ordinarily have been worked, and hours compensated for at time and
one-half (1-1/2) under Article VI, Section 2 (d), and those days for which an
employee is paid by the Company for jury duty in accordance with Section 12
will count as a day worked. Also, fragmented vacation, funeral leave, and
holiday option days taken by an employee will count as a day worked in
determining if an employee is to be compensated at time and one-half for all
hours worked in excess of forty (40) hours within the applicable payroll week.

Section 15.

	(a)	 	An employee excused for such time as may reasonably be needed for the
purpose of attending the funeral of a member of his immediate family will
be paid his basic straight-time hourly rate for any or all of three (3)
regularly scheduled workdays during the period beginning with the day of
death and ending with the day after such funeral. Under the conditions
established by the Contract, up to four (4) days will be granted to attend
a funeral more than five hundred (500) miles from Paducah, Kentucky. As a
special provision, in the event of the death of an employee’s spouse or
child, the employee will be paid his/her basic straight-time hourly rate
for any or all of five (5) regularly scheduled work days during the period
beginning with the day of death and ending with the second day after such
funeral.

     For the purpose of this section, the term “a member of his immediate
family” shall be defined as, and limited to, the following: spouse, children,
parents, grandparents, grandchildren, brother, sister, parents-in-law,
son-in-law, daughter-in-law, brother-in-law, sister-in-law, step-parents,
step-children, step-grandparents, step-brother, step-sister, step-grandparents
of the spouse of the employee, and step-parents-in-law.

	(b)	 	If a death occurs in an employee’s immediate family while he is on
vacation, he should promptly

21

 

	 	 	notify his manager. The employee will be
permitted to cancel only those whole days of vacation
remaining after notification to his manager, providing he qualifies for
funeral pay for those days under this section.

ARTICLE VII

WAGES

Section 1

	(a)	 	Effective 7:00 a.m. July 31, 2001, all rates in all rate groups will be
increased four (4) percent. (Appendix A, Table 1A)
	 
	(b)	 	Effective 7:00 a.m. July 31, 2002, all rates in all rate groups will be
increased three and four-tenths (3.4) percent. (Appendix A, Table 1B)
	 
	(c)	 	Any premium pay referred to in this contract is to be excluded from the
calculations of pay unless specifically included.

Section 2 An employee shall receive a shift premium of forty (40) cents per
hour for work performed on the evening shift (3:30 p.m. to 11:30 p.m.), and a
shift premium of seventy (70) cents per hour for work performed on the midnight
shift (11:30 p.m. to 7:30 a.m.) except that no shift premium shall be paid to
day shift employees for work performed between 7:00 a.m. and 3:30 p.m.

Section 3 There will be no discrimination because of sex in the application of
wage schedule.

Section 4 When an employee is transferred permanently to a job paying a higher
rate, he shall immediately receive the higher rate in accordance with Paragraph
(d), General Provisions, Appendix A.

Section 5

	(a)	 	An employee who at the request of the Company is temporarily required to
do the work in a classification other than his own shall suffer no
reduction in his rate of pay.
	 
	(b)	 	When an employee is assigned temporarily to a job in a higher
classification, the temporary reclassification and rate will be made
effective for all hours worked on the first day that an employee performs
work in the higher classification for two (2) or more hours. When assigned
to the new classification, the employee will be paid the top rate of the
new classification.

Section 6.  An employee who works Saturday and/or Sunday as part of his normal
workweek, will receive an additional forty (40) cents per hour for such hours
worked on Saturday and an additional sixty (60) cents per hour for such hours
worked on Sunday. In no case shall such payment be applied to hours paid for
at overtime, holiday or premium rates.

Section 7 - Cost of Living Allowance (COLA)

All employees within the bargaining unit as defined in Article II of this
Agreement shall be covered by a Cost of Living Allowance as defined and set
forth in this Section.

22

 

	(a)	 	The amount of the Cost of Living Allowance shall be determined and
re-determined as provided below in accordance with changes in the Revised
Consumer Price Index for Urban Wage Earners and Clerical Workers (1982-84
CPI-W = 100) published by the Bureau of Labor Statistics of the United
States Department of Labor, and referred to herein as “Index.” The Cost
of Living Allowance shall be based on a one (1) cent per hour adjustment
for each full 0.1 point change in the Index as provided herein.

	 

	(b)	 	(1)  After July 31, 2001, Cost of Living adjustments shall be made and
shall be payable quarterly when/and if the Index increases in excess of
four (4) percent of the base index described below. The base to calculate
the initial adjustment, which may be due under this Section, shall be the
Index for June of 2001 (published in July of 2001). Adjustments shall be
August 6, 2001; November 5, 2001; February 4, 2002; and May 6, 2002.

	 	 	(2)  After July 31, 2002, Cost of Living adjustments shall be made and
shall be payable quarterly when/and if the Index increases in excess of
four (4) percent of the base index described below. The base to
calculate the initial adjustment, which may be due under this Section,
shall be the Index for June of 2002 (published in July of 2002).
Adjustments shall be August 5, 2002; and November 4, 2002.

	(c)	 	In computing overtime pay, vacation pay, holiday pay, call-in pay,
disability pay, jury duty pay, funeral leave pay, and military makeup pay
as provided in this Agreement, the amount of any Cost of Living Allowance
then in effect shall be included.
	 
	(d)	 	In the event that the Bureau of Labor Statistics does not issue the Index
on or before the beginning of the pay period referred to in Paragraph (b)
above, any adjustment required will be made at the beginning of the first
pay period after receipt of the Index.
	 
	(e)	 	No adjustment, retroactive or otherwise, shall be made in the amount of
the Cost of Living Allowance due to any revision which may later be made
in the published figures for the Index for any month on the basis of which
the Cost of Living has been determined.
	 
	(f)	 	The continuance of the Cost of Living Allowance as herein provided is
dependent upon the continued availability of the official monthly Index in
its present form and calculated on the same basis as the currently
published Revised Consumer Price Index for Urban Wage Earners and Clerical
Workers (1982-84 CPI-W = 100) unless otherwise agreed upon by the Company
and the Union.
	 
	(g)	 	COLA being paid shall be considered as wages for the purpose of pension,
group insurance and savings plan.

Section 8.

Employees required to perform a shift turnover will be paid two times the
straight time hourly rate for each twenty-four (24) minute shift turnover
completed.

23

 

ARTICLE VIII

LAYOFF ALLOWANCE

Section 1.  Layoff allowance for an employee terminated from the payroll on
account of reduction in force or because of occupational or non-occupational
disability shall be in accordance with the following schedule:

	 	 	 
	Service Credit	 	
Allowance
	 	 	 
	Under 12 weeks	 	
No allowance
	 	 	 
	12 weeks — 1 year	 	
Same proportion of 1 week’s pay as completed months of
service are of 12 months
	 	 	 
	1 year — 3 years	 	
1 week (or 40 hours)
	 	 	 
	3 years — 5 years	 	
2 weeks (or 80 hours)
	 	 	 
	5 years — 7 years	 	
3 weeks (or 120 hours)
	 	 	 
	7 years — 10 years	 	
4 weeks (or 160 hours)
	 	 	 
	10 years	 	
6 weeks (or 240 hours)
	 	 	 
	11 years or more	 	
Same as for 10 years plus 1 week (or 40 hours) for each
added year of service

Section 2.  An employee who is rehired and subsequently laid off from the
payroll will receive layoff allowance based on his most recent rehire date.

Section 3.  A layoff allowance applicable to retirement terminations will be
paid in accordance with the Table in Section 1 of this Article for Company
Service Credit as of January 1, 1967. Retirement layoff allowance will not be
applicable to any new employee nor for Company Service Credit of present
employees accrued after January 1, 1967.

Section 4.  If the Company sells, leases, transfer or assigns the operations
covered by this Agreement and the purchaser, lessee, transferee, or assignee
(the “Successor Company”) assumes the obligations of the Agreement as provided
in Section 1, Article XVII of this Agreement, and an employee becomes the
employee of the Successor Company within ten (10) days of the date the sale,
lease, transfer or assignment is completed, then the layoff allowance will not
be payable to such employee by the Company. It is understood that any employee
who may be so transferred and laid off by the Successor Company shall suffer no
loss of benefits accrued under this Article. If an employee is not transferred
to the Successor Company within the above-mentioned ten (10) days and is laid
off, he will receive benefits from the Company as set forth in this Article.

24

 

ARTICLE IX

DISABILITY PAY

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

Section 1.  Short Term Disability Plan

Effective September 1, 1990, an employee disabled and unable to work due to
illness, pregnancy, or occupational or non-occupational injury, will be paid
100% of his basic straight-time hourly rate in accordance with the terms and
conditions of the Short Term Disability Plan set forth in the “Disability
Benefits” section of the “Martin Marietta Energy Systems, Inc. Benefits
Handbook”, dated April 1, 1990 (pages 39 through 45, inclusive, of such booklet
to be considered a part hereof) which provides for payment in accordance with
the following schedule:

	 	 	 
	Company Service Credit	 	
Maximum Number of Months of
Payment Per Absence
	 	 	 
	at least 1 month but less than 2 months	 	
1
	 	 	 
	at least 2 months but less than 3 months	 	
2
	 	 	 
	at least 3 months but less than 4 months	 	
3
	 	 	 
	at least 4 months but less than 5 months	 	
4
	 	 	 
	at least 5 months but less than 6 months	 	
5
	 	 	 
	at least 6 or more months	 	
6

Section 2.  Long Term Disability Plan

Effective September 1, 1990, an employee totally disabled for six months will
become eligible to receive sixty percent (60%) of his monthly basic straight
time rate up to a specified maximum monthly benefit paid in accordance with the
terms and conditions of the Long Term Disability Plan set forth in the
“Disability Benefits” section of the “Martin Marietta Energy Systems, Inc.
Benefits Handbook” referred to in Section 1 above and will be paid, if he is
totally and permanently disabled as defined in the above-referenced handbook,
until he reaches age 65. Under specified circumstances, such benefits will
continue beyond age 65. Such benefits will be reduced by any income benefits
the employee is eligible to receive from other sources such as Social Security,
Worker’s Compensation, other statutory benefits, and other Company benefit
plans.

If a dispute arises as a result of an employee’s claim that he or she is
totally and permanently disabled as defined in the above-referenced handbook or
that such employee continues to be totally and permanently

25

 

disabled the dispute shall be resolved in the following manner upon the filing
with the Company of a written request for review by such employee not more than
60 days after receipt of denial:

The employee shall be examined by a physician appointed for the purpose by the
Company and by a physician appointed for the purpose by the Union. If they
disagree concerning whether the employee is totally and permanently disabled,
the question shall be submitted to a third physician selected by such two
physicians. The medical opinion of the third physician, after examination by
him or her of the employee and consultation with the other two physicians,
shall be final and binding on the Company, the Union, and the employee. The
fees and expenses of the third physician shall be shared equally by the Company
and the Union.

Section 3.  Conditions of Payment

	(a)	 	Payments under the Short Term and Long Term Disability Plans referred to
in Sections 1 and 2 of this Article will not be made for:

	 	  (1)	 	Any disability occurring during the first 12 months that the
employee’s plan coverage is in effect if caused by any condition for
which he received treatment during the three month period before his
coverage became effective, or
	 
	 	  (2)	 	Any period of incapacity beyond the third consecutive calendar
day during which the employee is not under treatment by a licensed
practicing physician, or
	 
	 	  (3)	 	Any disability caused directly or indirectly by war declared or
undeclared, or
	 
	 	  (4)	 	Any intentionally self-inflicted injury, or
	 
	 	  (5)	 	Any disability resulting from commission of a felony, or
	 
	 	  (6)	 	Any disability due to willful misconduct, violation of plant
rules, or refusal to use safety appliances.

	(b)	 	Payments under these plans will be made only to employees whose absence
is due to non-occupational or occupational disability and will not be paid
to employees who are absent for other reasons.
	 
	(c)	 	Payments will only be made when the Company is provided, if it so
requests, with a doctor’s certificate, subject to confirmation by a doctor
selected by the Company, as proof that the employee’s absence was due to
legitimate non-occupational or occupational illness or injury. Under
normal circumstances, a doctor’s certification will not be requested by
the Company during the first three consecutive calendar days of the
absence. However, certification may be requested by the Company for any
or all of the first three days if the Company has reason to question the
absence.
	 
	(d)	 	Payments will only be made when employees properly report their absence
and the cause of their absence to the proper Company representative in a
prompt manner.
	 
	(e)	 	Payments are applicable only for the normal workweek and normal workday.
In case working hours of the plant are changed, it is understood that
payment under the above schedule will be changed in direct proportion to
the change in working hours.

26

 

	(f)	 	It is recognized by the Union that the Company has a continuing interest
in reducing absenteeism, no matter what the cause.

Section 4.  Administration of Plans

(a) Short Term Disability Plan

	 	 	The administration of the Short Term Disability Plan and the payment of
benefits under this plan shall be handled by the Company.

(b) Long Term Disability Plan

	 	 	The administration of the Long Term Disability Plan and the payment of
benefits under this Plan shall be handled directly by the Insurance Company,
it being understood that a claimant whose benefits claim is denied may
contest such denial with the Insurance Company but that he or she shall have
no redress whatsoever against the Company. It is agreed, however, that in
any case in which an employee claiming benefits under this Plan and desiring
to file such claim with the Insurance Company becomes engaged in a
non-medical factual dispute with the Company in connection with such claim
(such as a disagreement over his or her earnings group, eligibility,
employment status, amount of Company Service Credit or other non-medical
factual question) such employee and the Union may process a grievance in
accordance with the terms of this Contract. It is agreed, however, that any
and all medical questions in dispute shall be determined solely by the
Insurance Company, except as provided under the second paragraph of Section
2 of this Article. It is understood that the Company shall retain the right
to select and arrange with an Insurance Company to provide certain benefits
available under these Plans; and to replace the Insurance Company from time
to time as it may deem appropriate.

Section 5.  Company Service Credit During Approved Non-occupational or
Occupational Absences

An employee who is disabled and unable to work will receive Company Service
Credit for the period of his Short Term Disability approved by the Company
and/or the period of his Long Term Disability approved by the Insurance
Company.

ARTICLE X

LEAVE OF ABSENCE

Section 1.  Leave of absence, without pay, up to fifteen (15) consecutive
calendar days shall be granted upon presentation by an employee of evidence
acceptable to the Company that such leave of absence is for a reasonable
purpose, and provided further that such leave will not interfere with
operations.

Section 2.

	(a)	 	Upon written request to the Company made by the Union a reasonable period
in advance, an employee certified by the Union to be a full-time Union
official may be granted a leave of absence

27

 

	 	 	without pay to engage in work pertaining to the business of the Union. The
number of employee’s granted such leaves of absence may not exceed six (6)
per thousand (1000) employees at any time.
	 
	(b)	 	An employee certified by the Union to be a full-time Union official shall
be granted not more than one (1) thirty (30) day leave of absence in any
calendar year renewable only in increments of two (2) years if an official
elects to accept a full-time assignment with the Union. Such leaves shall
be granted only at such times as will not interfere with operations. The
Company will give advance notice of the expiration of the long-term [two
(2) years] leave.
	 
	(c)	 	An employee granted such leave of absence must return all security
identification issued to him.

Section 3.

	(a)	 	An employee who returns to work after a leave of absence as described in
Sections 1 and 2 of this Article will be reinstated in the job
classification group which he left and for which he is physically
qualified provided he has more seniority than the least senior employee in
said job classification.
	 
	(b)	 	Unless excused, an employee who does not return to work within five (5)
days following the expiration of his leave of absence will be considered
as having resigned voluntarily and will forfeit all of his seniority
rights.

Section 4.  The Group Insurance of an employee will be continued in force
during such authorized leave of absence in case and in such manner as the
provisions of the Company Group Insurance contract permit, provided that he
pays his share of the Group Insurance premium at least monthly in advance.

Section 5.  The Hospitalization and Surgical Plan Insurance of an employee will
be continued in force during such authorized leave of absence in case and in
such manner as the provisions of the Company Insurance Contract permit provided
that he pays the full premium at least monthly in advance.

Section 6.  The Company will comply with the Family and Medical Leave Act of
1993.

ARTICLE XI

VACATIONS

Vacation eligibility is as follows:

	(a)	 	An employee must complete one (1) year of Company Service Credit to
obtain initial eligibility for two (2) weeks vacation. However, one (1)
week of this initial vacation eligibility maybe taken after completing six
(6) months of Company Service Credit.
	 
	(b)	 	During calendar years in which an employee completes from two (2) through
four (4) years of Company Service Credit, he shall receive two (2) weeks
of vacation.
	 
	(c)	 	During calendar years in which an employee completes from five (5)
through nine (9) years of Company Service Credit, he shall receive three
(3) weeks of vacation.
	 
	(d)	 	During calendar years in which an employee completes from ten (10)
through nineteen (19) years of Company Service Credit, he shall receive
four (4) weeks of vacation.

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	(e)	 	During calendar years in which an employee completes from twenty (20)
through twenty-nine (29) years of Company Service Credit, he shall receive
five (5) weeks of vacation.
	 
	(f)	 	During calendar years in which an employee completes thirty (30) or more
years of Company Service Credit, he shall receive six (6) weeks of
vacation.
	 
	(g)	 	The Vacation Plan shall be administered in accordance with the vacation
regulations contained in Appendix D, attached hereto and made a part
hereof.

ARTICLE XII

SENIORITY

Section 1.  Definitions:

	(a)	 	A vacancy is said to exist in a job classification when there is a need
for a permanent replacement or addition.
	 
	(b)	 	An employee is said to be laid off when he leaves a job classification
because of a reduction in force.
	 
	(c)	 	The recall listing is defined as that list on which an employee will be
placed at the time he is laid off from a job classification.
	 
	(d)	 	For recall purposes, an employee will be placed on the recall list of the
job classification from which he was laid off, or if he so elects in
writing to the Company his base job classification, or any other job
classification from which he has been laid off in which he has been for at
least four (4) years.
	 
	(e)	 	An employee’s base job classification group is that group into which he
is hired.

Section 2

	(a)	 	Plant seniority is based on the total length of service of an employee.
The seniority of each employee is his relative position with respect to
other employees.
	 
	(b)	 	Group seniority is administered within the job classification groups
outlined in Appendix C.
	 
	(c)	 	A new employee shall be considered a probationary employee for the first
sixty (60) days worked and at the end of that period, if he is retained,
his name will be placed on the Seniority List and his seniority shall date
from the date of hire. A probationary employee shall be subject to
layoff, discipline, or discharge at the sole discretion of the Company.
	 
	(d)	 	An employee will lose his seniority when he is discharged, when he
resigns, or when he is on the recall listing and declines or fails to
report within five (5) days or makes satisfactory arrangements when
offered employment in job classification from which he was laid off except
that an employee who is on the payroll in another job in the bargaining
unit when recalled, will lose only his recall rights to the job to which
he is recalled when he does not respond to the recall.

29

 

	(e)	 	An employee or a former employee who is on the recall listing shall
continue to accumulate seniority while off the payroll only up until four
(4) years from his layoff date. If a former employee is not recalled
within four (4) years from the date of layoff he will cease to have
seniority. An employee who is not recalled within four (4) years from the
date of layoff will lose only his recall rights.
	 
	(f)	 	Employees will retain and accumulate seniority during periods of excused
absence or leave of absence.

	(g)	(1)	 	When an employee enters a job classification group by transfer from
another group, he will acquire group seniority in the group which he has
entered only after he has been in such group one (1) year. Such group
seniority shall then date back to his date of entry into the group. The
seniority which he has accumulated in his base job classification group
shall remain in that group as group seniority. Should such employee become
subject to layoff in the new group he may elect to return to his base job
classification group with all the seniority he retains in his base job
classification group plus seniority, which he has accumulated in any other
groups. As between employees in a job classification who have not yet
acquired group seniority, total plant seniority will prevail in a case of
a layoff.

	 	(2)	 	If an employee is laid off from one job classification and accepts
a transfer to another classification, his standing in the new job
classification will not be affected by later layoffs in his previous
job classification. Any job that an employee takes when there is a
layoff in his job classification, in which he is involved to avoid
termination, will not be considered a voluntary transfer.
	 
	 	(3)	 	If more than one (1) employee is transferred into a new job
classification on the same day they will be placed on the seniority
list in the new job classification according to their bargaining unit
seniority.
	 
	 	(4)	 	
Employees, other than those referred to in Section 4 (d) below and
Trainees, who voluntarily transfer into a job classification, and, if
before they have obtained seniority right in said job classification a
layoff occurs in his previous job classification, he shall be subject
to layoff as though he were still in his previous job classification.

Section 3

	(a)	 	When a reduction in force is to be made in any job classification within
a job classification group, the employee having the least amount of group
seniority in the job classification shall be the first to be laid off.
Any employee thus scheduled to be laid off may displace, if he so desires:

	 	 	The least senior (group) employee in an equal or lower-rated job
classification in the same job classification group whose work he has the
skill and qualifications to perform.

	(b)	 	When a reduction in force is to be made in any job classification, the
following employee in that job classification group may be retained
irrespective of seniority.

	 	 	A physically handicapped employee who by reason of occupational injury while
employed by the Company merits special consideration.

30

 

	(c)	 	In the event of a layoff the Union will be notified prior to the layoff
and will be given a list of names of employees who are to be laid off as
far in advance as possible. Also, at the time the list is being typed,
the Union President will be notified.

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Section 4.

	(a)	 	When a vacancy exists the job will be offered to employees laid off from
the job classification in the following order:

	 	   (1)	 	To qualified employees who are still in the job classification group.
	 
	 	   (2)	 	To qualified employees with seniority in the job classification
group, who are on the recall listing in the order of their seniority.

	(b)	 	If the vacancy has not been filled by the procedure outlined above or by
promotion from within the job classification group, consideration will be
given to senior qualified employees in lower rated job classifications who
make application for such vacancies within ten (10) calendar days
following posting of such vacancies.
	 
	(c)	 	A list of vacancies will be posted on the bulletin boards specifying job
titles, general qualifications, rates of pay, and hours of work.
Qualified employees in lower rated jobs within the plant may make
application for such vacancies within ten (10) calendar days following
such posting. An employee interested in bidding may request an
appropriate job bid form from his manager who will assist him in
submitting his bid to the Employment Office for evaluation. The Union
will receive a list of all job bids, which are accepted or rejected. When
an employee is selected and accepts a job bid and the employee is not
released within thirty (30) calendar days from the date of his acceptance,
the bidder will then be reclassified, paid the new rate, and given a new
seniority date. However, in no case shall a new hire be placed on the
seniority list ahead of a successful bidder or a non-union employee who
has expressed interest in that particular job bid and has been selected
for the job.
	 
	(d)	 	An employee selected to fill a new job or vacancy will be given
reasonable time, not more than twelve (12) weeks, with proper
instructions, to learn the job before final decision is made of his
ability to handle the job.
	 
	(e)	 	If it develops before the end of the twelve (12) week period that he is
not capable of handling the new job, he shall be entitled to return to his
former job with his former status.
	 
	(f)	 	If none of the above employees are qualified or available, the Company
may fill the job as it sees fit.

Section 5.

	(a)	 	Employees who transfer out of the bargaining unit after the effective
date of this contract cease to have any bargaining unit seniority thirty
(30) calendar days after such transfer. If such employee so wishes, he
may return to the bargaining unit within this thirty (30) day period
without loss of seniority.
	 
	(b)	 	Individuals who, as of July 31, 1979, had past accumulated seniority
rights under Article XII, Section 5 of the collective bargaining agreement
in effect on that date will be permitted to indicate in writing a desire
to retain those rights for a nine (9) month period beginning August 24,
1979. Individuals who do not signify such a desire in writing will cease
to have any seniority as of September 24, 1979. Those employees who do
retain rights for the nine (9) month period mentioned

32

 

	 	 	above, will cease to have such rights as of May 24, 1980. A list of
individuals retaining such seniority after September 24 will be provided the
Union.

Section 6.

	(a)	 	The Company and Union will establish a recall listing of laid off
employees.
	 
	(b)	 	The Company and Union will establish seniority listings (Group and
Bargaining Unit) showing the name of all employees in the order of their
seniority ranking in the various classifications in the job classification
groups in which the employee holds seniority.
	 
	(c)	 	The Company will maintain the two (2) listings and give the Union
forty-five (45) copies of each listing for their sole and exclusive use
within forty-five (45) days after the effective date of this contract, and
a list of revisions each three (3) months thereafter. No changes in these
two (2) listings may be made except by mutual agreement between the
Company and the Union.

Section 7.

	(a)	 	Transfers will not be made for the specific purpose of discriminating
against an employee.
	 
	(b)	 	Work normally associated with one classification in this Plant will not
be transferred permanently to another classification in this Plant. When
he requests, a Union representative will be informed as to whether
transfer of work is temporary or permanent. In no case will the transfer
of work deny the use of the recall list for a period longer than thirty
(30) calendar days. All work normally associated with a classification
will be returned to the rightful classification before layoff occurs in
that classification. The time a job has been performed on an
out-of-classification basis will not be used exclusively in making a
determination into which classification the work belongs in case of a
layoff.

ARTICLE XIII

GRIEVANCE PROCEDURE

Section 1.

	(a)	 	The Company will recognize the following number of properly certified
Union representatives in the Plant for the purpose of representing
employees in the manner as specified in this Grievance Procedure:
	 
	 	 	Three (3) Committee persons, one (1) from each of the three (3) recognized
Divisions of the Plant as shown in Appendix B who, with the local President
as Chairperson, shall constitute the Grievance Committee.
	 
	 	 	Twenty-four (24) Stewards, from the twenty-four (24) recognized Districts
are shown in Appendix B.
	 
	(b)	 	Employees thus duly certified and recognized as Union representatives
shall report to and obtain permission from their first-line manager
whenever it becomes necessary to leave their work for the

33

 

		
	 	line manager of their intended destination and itinerary and shall report
back to their first-line manager at the time they return to work. Upon
request, certified Union representatives may be granted use of the telephone
at reasonable times to handle grievances within their respective Districts
or Divisions. Certified Union representatives may be excused for reasonable
periods from their work without loss of pay when handling grievances or
disputes in the appropriate steps of this Grievance Procedure. The Local
Union President, or his designated representative, may be excused for
reasonable periods from work without loss of pay when handling grievances in
the Third Step of this Grievance Procedure. Permission to leave work as
referred to above will be granted provided such absences do not conflict
with the efficient operation of the plant.

Section 2.

First Step: An employee may allege a grievance under the terms of this
contract and present such grievance to his first-line manager with or without
his Union Steward. In such case every effort will be made to provide a Steward
as soon as reasonably possible unless near the end of the shift time will not
permit. Unless settlement is reached within four (4) days (the Steward will
receive the answer), such grievance may be presented by the Stewards in writing
to the first-line manager on an appropriate form within the next seven (7)
days. The first-line manager shall give his decision in writing to the Steward
within two (2) days of presentation.

Second Step: A grievance not settled satisfactorily in the First Step may be
appealed by the Division Committee person with a copy of the written grievance
and a written statement of the reasons for the appeal to the Human Resources
Department.

On Wednesday at 2:00 p.m. the Human Resources Generalist or his designated
representative will hear any accumulated grievances appealed in writing to this
Step at least twenty-four (24) hours prior to the meeting. The Human Resources
Generalist will consider such grievances and give written answer within four
(4) days. This meeting may be attended by other Company representatives,
including the immediate first-line manager of the employee, the Steward, and
the Committeeperson from the respective District and Division wherein the
grievance originated.

Grievances arising out of discharge or disciplinary suspension may be initiated
at this Second Step and heard at any reasonable time after an employee has
protested the action to his immediate first-line manager and has failed to
secure a satisfactory settlement. When an employee is called into a discussion
which may result in disciplinary documentation including reprimand, suspension
or being sent home, he will be provided Union representation if he so requests.
A copy of the First-line Manager’s Report prepared will be furnished to the
Union.

Third Step: Grievances not settled satisfactorily in the Second Step may be
appealed by the Chairperson of the Grievance Committee or his designated
employee representative to the General Manager or his designated representative
through the Human Resources Department with a brief written statement of the
reasons for the appeal.

On Monday at 2:00 p.m., the General Manager, or his designated representative,
will meet with the Grievance Committee if there are any accumulated grievances
appealed in writing to this Step at least twenty-four (24) hours prior to the
meeting. Grievances will be answered in writing within ten (10) days.

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In addition to the aggrieved employee, and the Steward from the District, who
may be present if he chooses, other Company representatives, International
Representatives of the Union, and the Local Union President, or his designated
representative may also attend the meeting, provided they have security
clearance from the Governmental Agency having jurisdiction if that Agency feels
that such clearance is necessary.

Section 3. The answer of the Company in the Third Step shall be final and
binding on the last day it is due unless the grievance is withdrawn prior to
that date or is appealed to arbitration.

Section 4. Any grievances not taken up with the employee’s immediate
first-line manager within fifteen (15) days, exclusive of days of excused
absence, after knowledge of the occurrence from which the grievance arose
cannot thereafter be processed through the Grievance Procedure. A grievance
will be considered withdrawn if the decision of the Company is not appealed to
the next higher step in the above procedure within five (5) days after a
decision has been rendered by the Company except that appeal to the Third Step
may be made within ten (10) days. If the Company fails to answer a grievance
within the specified time limits of this procedure, the Union’s appeal will
automatically progress to the next step of the Grievance Procedure.

Section 5. Every reasonable effort shall be made to settle grievances
promptly. In the calculation of time limits under the Grievance and
Arbitration Procedure, Saturdays, Sundays, and Holidays are excluded.

Section 6. The Union shall notify the Company in writing promptly of the
appointment or election of all Stewards, Committeepersons and officers.
Whenever a regular certified Union representative is absent from his job for
any length of time, the Union may, if it feels it is necessary, appoint an
assistant Steward or Committeeperson in place of the regular Steward or
Committeeperson and shall notify the Company in writing in advance.

This appointee shall act in this capacity when the regular Steward or
Committeeperson is not working and until the Company is notified by the Union
that the appointment is canceled.

Section 7. All settlements of disputes or grievances will not vary the terms
of the Contract.

Any oral settlements will be non-precedent setting.

ARTICLE XIV

ARBITRATION

Section 1. If a grievance is not satisfactorily settled by the procedure
outlined in Article XIII, the grievance may be submitted to arbitration if it
involves the interpretation or application of the contract.

Section 2.

	(a)	 	Within fifteen (15) days or on the day after the next monthly Union
meeting whichever is later, after the decision rendered by the Company in
the Third Step of the Grievance Procedure either party desiring to
arbitrate a matter may request the Director of the Federal Mediation and
Conciliation Service to submit the names of seven (7) arbitrators. Upon
refusal of either party to join in such a

35

 

	 	 	request the other party may make
the request. The Union and the Company shall alternately strike a
name from the list (the first to strike shall be determined by lot) until
the name of one individual remains. The decision of the arbitrator shall be
rendered on the interpretation and application of the contract solely as it
applies to the matter before him and shall not add to, disregard or modify
any of the provisions of this contract. Such decision shall be final and
binding on both parties.
	 
	(b)	 	Any grievance which has not been assigned to and accepted by an
arbitrator within two (2) years after the date of appeal to arbitration
will be considered withdrawn by mutual consent on a no precedent basis.
	 
	(c)	 	The current backlog of grievances will be worked independently of new
grievances. Any grievances not resolved and not scheduled for arbitration
within two (2) years following the effective date of this Contract will
result in the grievances being withdrawn by mutual consent without
precedent. This provision will remain in effect for two years following
the effective date of this contract; thereafter, it will be deleted and
shall not be a part of this collective bargaining agreement.

Section 3. The expense and compensation of the arbitrator shall be borne by
and divided equally between the Union and the Company. Where the arbitration
proceedings involve discussion of classified information, the arbitrator shall
be cleared by the Government Agency having jurisdiction if the Agency feels
that such clearance is required. Up to two (2) arbitration cases may be
arbitrated at one time using the same Arbitrator.

Section 4. In any proceedings under this Article the Company will make every
reasonable effort to release from work employees needed as witnesses.

Section 5. Arbitration cases will be requested to be heard within ninety (90)
days after an arbitrator has been selected. It is agreed that the parties will
jointly request the rendering of a decision within thirty (30) days after
briefs have been file.

ARTICLE XV

MISCELLANEOUS

Section 1.

	(a)	 	Non-bargaining unit personnel shall not do bargaining unit work normally
performed exclusively by the bargaining unit. This does not prevent such
Non-bargaining unit personnel from performing necessary functions such as
instruction or assistance to employees, provided the assistance rendered
does not displace the person doing the work or from operating equipment or
processes in emergencies or for experimental purposes.
	 
	(b)	 	Scientific research personnel may perform manual work to further their
research provided that such work does not deprive an employee of his job.

Section 2. A joint Labor-Management Safety Advisory Committee consisting of
six (6) members, three (3) to be selected by the Company and three (3) selected
by the Union, will be established to make recommendations for improvements in
the safety and accident prevention program.

The Company will see that the Committee is provided adequate information
concerning accident

36

 

investigation reports and recommendations for accident prevention actions, to
enable the members to make knowledgeable recommendations for the disposition of
proposed safety actions.

The Company will also, on request, make arrangements for the Committee to visit
the scene of any disabling or other serious accident so that they may have a
better understanding of its cause. In the same manner, the Company will arrange
for a designated member of the Committee to see firsthand, conditions in the
Plant, which are alleged by an employee to be unsafe and/or detrimental to
health. If an accident investigation committee is formed to investigate an
accident involving a Bargaining Unit employee, the Union will designate as the
Union’s representative a Bargaining Unit employee who normally works in the
area in which the accident occurred.

Company will discuss the results of the accident investigation of any disabling
or other serious accident with the Committee within three (3) days of
completion of the investigation. Accidents of less severity will be discussed
at the next joint advisory committee meeting.

The Company will pay three (3) delegates selected by the Union to attend the
Governor’s Health and Safety Conference. A maximum of eight (8) hours
straight-time pay will be allowed for each of the three (3) days.

Meetings will be held as determined by the Committee, at least monthly, and
matters considered by the Committee will be recorded by minutes of the
meetings.

Section 3.

	(a)	 	The Company will continue to make provisions for the safety and health of
employees while at work.
	 
	(b)	 	On an annual basis starting January 1, 1997, the Company will pay
employees a $200.00 safety related equipment (safety shoes) allowance less
any required taxes. Employees will be paid the allowance in January of
each year. Employees who are required to wear safety shoes are required
to maintain a serviceable pair of safety shoes to wear on plant site.

     If an employee’s safety shoes become unserviceable, as determined by the
company, due to contamination or damage due to a job-related incident, the
company will purchase replacement safety shoes if the employee provides a
receipt showing that safety shoes were purchased that year. If the employee
chooses to purchase the replacement safety shoes themselves, they must meet the
above requirement and provide a receipt for the replacement shoes before being
reimbursed.

Section 4. Company Service Credit will be determined in accordance with
Company Service Credit Rules as set forth in Appendix E.

Section 5. The Union shall be permitted to use a sufficient number of
designated Company bulletin boards for posting notices and announcements of
official business. All such notices and announcements shall be submitted to
the Company for approval and posting.

Section 6. Personal absences without pay will be administered in accordance
with the provisions set out in Appendix F.

37

 

Section 7. There shall be no discrimination because of race, color, creed,
national origin or sex. Nor will there be discrimination against any employee
because he is handicapped, a disabled veteran or a veteran of the Vietnam era
as these terms are used in applicable federal statutes, including the Americans
with Disabilities Act.

Section 8. The Company agrees to make coveralls available to all members of
the bargaining unit who wish to wear them while at work. Thermal underwear
will be made available to all members of the Bargaining Unit who may be
required to do extensive outside work [two (2) hours or more per day] during
the winter months. Insulated coveralls and gloves will be issued upon approval
of appropriate first-line manager.

Section 9. Reprimands antedating a period of twelve (12) months on the active
payroll, during which time no reprimand has been received, will be removed from
the employee’s record. Suspensions antedating a period of twenty-four (24)
months on the active payroll, during which time no reprimand has been received,
will be removed from the employee’s record.

Section 10. Employees who are telephoned while at home and requested to
provide information about plant operations will be paid an inconvenience
allowance equal to the employee’s straight time hourly rate for the duration of
the telephone call, but in no event less than one tenth of one hour. This
payment shall not be counted as hours of work in the computation of overtime or
premium pay.

Section 11. During January of each calendar year, starting 2002, the company
will pay $900 to each qualified E-Squad member who had attended both the
mandatory training sessions in the prior calendar year.

Section 12. A twenty-five (25) cent per hour premium will be paid for all
Truck Drivers who have a CDL.

Section 13.

	(a)	 	An employee will be released from work and paid straight time wages for
the hours 7:00 a.m. to 11:00 a.m. each Monday through Friday while
performing the duties of Benefit Representative.
	 
	(b)	 	An employee, other than the Benefit Representative, will be released from
work and paid straight time wages for the hours 11:30 a.m. to 3:30 p.m.
each Monday through Friday while performing the duties of ES&H
Representative.

ARTICLE XVI

EDUCATIONAL ASSISTANCE PROGRAM

Company will provide financial assistance up to one hundred (100) percent of
the cost of tuition, laboratory fees, and required text books to employees who
while still actively employed and outside their regular working hours
satisfactorily complete qualified courses of study related to bargaining unit
work in recognized schools or colleges. Applications must be filed and
approved prior to starting of course. An employee who is receiving Government
financial assistance for education is not eligible for a refund under this
program.

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ARTICLE XVII

TERM OF CONTRACT

Section 1. The Company agrees that if during the life of this Agreement it
discontinues operations, sells, leases, transfers or assigns the operations
covered by this Agreement, it shall inform the purchaser, lessee, transferee or
assignees of the exact terms of this Agreement and shall make the sale, lease,
transfer, or assignment conditional upon the purchaser, lessee, transferee, or
assignee, assuming all the obligations of the Agreement until its expiration
date and treating the affected employees of the Bargaining Unit in accordance
with the terms of this Agreement.

Section 2. This contract shall become effective as of 7:00 a.m. July 31, 2001
and shall continue in effect until 7:00 a.m., January 31, 2003, and shall
automatically be renewed thereafter from year to year unless either party
notifies the other in writing sixty (60) days prior to the expiration date that
it desires to terminate or modify the provisions of this contract.

39

 

IN WITNESS WHEREOF, each of the parties has caused this Contract to be executed
by its duly authorized representatives on this the 26th day of November, 2001.

PAPER, ALLIED-INDUSTRIAL, CHEMICAL

AND ENERGY WORKERS

INTERNATIONAL UNION, AFL-CIO

	 	 	 
	BY:	 	
/s/ J. D. Wilson

PAPER, ALLIED-INDUSTRIAL, CHEMICAL

AND ENERGY WORKERS

LOCAL 5-550

	 	 	 
	BY:	 	
/s/ D. J. Steele
	 	 	
/s/ M. L. Pullen

/s/ W. R. Cossler

/s/ J. T. Cooper

/s/ W. J. Moore

/s/ T. A. Walker

/s/ C. L. Owens

UNITED STATES ENRICHMENT CORPORATION

PADUCAH GASEOUS DIFFUSION PLANT

	 	 	 
	BY:	 	
/s/ W. E. Thompson

/s/ W. K. Harrison

/s/ S. P. Jones

/s/ C. D. Harrall

/s/ D. E. Page

40

 

APPENDIX A

TABLE 1A, WAGE SCHEDULE

EFFECTIVE JULY 31, 2001

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Group	 	Start	 	3 Mos.	 	6 Mos.	 	9 Mos.	 	12 Mos.	 	15 Mos.	 	18 Mos.
	01
	 	 	13.27	 	 	 	13.98	 	 	 	14.66	 	 	 	15.33	 	 	 	16.00	 	 	 	 	 	 	 	 	 
	02
	 	 	13.55	 	 	 	14.23	 	 	 	14.91	 	 	 	15.61	 	 	 	16.31	 	 	 	 	 	 	 	 	 
	03
	 	 	13.79	 	 	 	14.53	 	 	 	15.24	 	 	 	15.96	 	 	 	16.68	 	 	 	 	 	 	 	 	 
	04
	 	 	14.01	 	 	 	14.77	 	 	 	15.51	 	 	 	16.26	 	 	 	17.00	 	 	 	 	 	 	 	 	 
	05
	 	 	14.91	 	 	 	15.68	 	 	 	16.41	 	 	 	17.16	 	 	 	17.90	 	 	 	 	 	 	 	 	 
	06
	 	 	14.53	 	 	 	15.33	 	 	 	16.07	 	 	 	16.83	 	 	 	17.58	 	 	 	 	 	 	 	 	 
	07
	 	 	17.12	 	 	 	18.00	 	 	 	18.73	 	 	 	19.71	 	 	 	20.55	 	 	 	 	 	 	 	 	 
	08
	 	 	15.13	 	 	 	15.91	 	 	 	16.67	 	 	 	17.42	 	 	 	18.16	 	 	 	 	 	 	 	 	 
	09
	 	 	15.45	 	 	 	16.22	 	 	 	16.99	 	 	 	17.73	 	 	 	18.48	 	 	 	 	 	 	 	 	 
	10
	 	 	14.89	 	 	 	15.65	 	 	 	16.42	 	 	 	17.19	 	 	 	17.96	 	 	 	 	 	 	 	 	 
	11
	 	 	16.75	 	 	 	17.53	 	 	 	18.30	 	 	 	19.06	 	 	 	19.81	 	 	 	 	 	 	 	 	 
	13
	 	 	18.31	 	 	 	19.00	 	 	 	19.71	 	 	 	20.48	 	 	 	21.27	 	 	 	 	 	 	 	 	 
	14
	 	 	14.24	 	 	 	15.04	 	 	 	15.78	 	 	 	16.52	 	 	 	17.24	 	 	 	 	 	 	 	 	 
	23
	 	 	17.49	 	 	 	17.49	 	 	 	18.67	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24
	 	 	17.80	 	 	 	17.80	 	 	 	19.01	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	26
	 	 	20.00	 	 	 	21.32	 	 	 	22.76	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	28
	 	 	20.00	 	 	 	21.32	 	 	 	22.76	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	18.68	 	 	 	19.36	 	 	 	20.07	 	 	 	20.84	 	 	 	21.65	 	 	 	22.17	 	 	 	22.76	 

41

 

APPENDIX A

TABLE 1B, WAGE SCHEDULE

EFFECTIVE JULY 31, 2002

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Group	 	Start	 	3 Mos.	 	6 Mos.	 	9 Mos.	 	12 Mos.	 	15 Mos.	 	18 Mos.
	01
	 	 	13.72	 	 	 	14.45	 	 	 	15.16	 	 	 	15.85	 	 	 	16.54	 	 	 	 	 	 	 	 	 
	02
	 	 	14.01	 	 	 	14.71	 	 	 	15.42	 	 	 	16.14	 	 	 	16.86	 	 	 	 	 	 	 	 	 
	03
	 	 	14.26	 	 	 	15.02	 	 	 	15.75	 	 	 	16.51	 	 	 	17.25	 	 	 	 	 	 	 	 	 
	04
	 	 	14.49	 	 	 	15.27	 	 	 	16.03	 	 	 	16.81	 	 	 	17.58	 	 	 	 	 	 	 	 	 
	05
	 	 	15.42	 	 	 	16.22	 	 	 	16.97	 	 	 	17.74	 	 	 	18.51	 	 	 	 	 	 	 	 	 
	06
	 	 	15.02	 	 	 	15.85	 	 	 	16.61	 	 	 	17.40	 	 	 	18.17	 	 	 	 	 	 	 	 	 
	07
	 	 	17.70	 	 	 	18.61	 	 	 	19.37	 	 	 	20.38	 	 	 	21.25	 	 	 	 	 	 	 	 	 
	08
	 	 	15.65	 	 	 	16.45	 	 	 	17.24	 	 	 	18.01	 	 	 	18.78	 	 	 	 	 	 	 	 	 
	09
	 	 	15.98	 	 	 	16.78	 	 	 	17.57	 	 	 	18.33	 	 	 	19.11	 	 	 	 	 	 	 	 	 
	10
	 	 	15.40	 	 	 	16.18	 	 	 	16.98	 	 	 	17.78	 	 	 	18.57	 	 	 	 	 	 	 	 	 
	11
	 	 	17.32	 	 	 	18.13	 	 	 	18.93	 	 	 	19.71	 	 	 	20.49	 	 	 	 	 	 	 	 	 
	13
	 	 	18.94	 	 	 	19.65	 	 	 	20.38	 	 	 	21.17	 	 	 	21.99	 	 	 	 	 	 	 	 	 
	14
	 	 	14.72	 	 	 	15.55	 	 	 	16.31	 	 	 	17.08	 	 	 	17.83	 	 	 	 	 	 	 	 	 
	23
	 	 	18.09	 	 	 	18.09	 	 	 	19.30	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24
	 	 	18.41	 	 	 	18.41	 	 	 	19.66	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	26
	 	 	20.68	 	 	 	22.04	 	 	 	23.53	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	28
	 	 	20.68	 	 	 	22.04	 	 	 	23.53	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30
	 	 	19.31	 	 	 	20.02	 	 	 	20.75	 	 	 	21.55	 	 	 	22.39	 	 	 	22.93	 	 	 	23.53	 

42

 

GENERAL PROVISIONS

	(a)	 	Employees are given consideration for scheduled rate increases to their
respective job rates upon completion of each of the periods of continuous
service outlined in the Wage Schedule set forth in the above Appendix A.
	 
	(b)	 	Such rate increases are granted on a periodic merit progression basis in
accordance with Appendix A, counting from the date of placement in the
classification, and are granted only if the workmanship and ability of the
employee have been satisfactory.
	 
	(c)	 	If a scheduled merit progression increase is not granted, the immediate
first-line manager of the employee thus affected will notify the employee
in writing of the reason for such rejection and if the employee feels such
action is unjust he may file a grievance. The first-line manager may
originate such increase at any time thereafter when the workmanship and
ability of the employee warrant. Future consideration for advancement
within the merit progression scale will be given at each period as per
Appendix A thereafter until he reaches the job rate.
	 
	(d)	 	An employee who is promoted will receive the starting rate for the new
job but in no case less than a ten (10) cent increase provided such
increase is not in excess of the job rate. If the starting rate for the
new job amounts to less than a ten (10) cent increase, the employee will
receive the next higher rate in the progression schedule for the new job
and his rate will be considered at each period as per Appendix A beginning
on the effective date of promotion until he reaches the job rate.
	 
	(e)	 	An employee who is reduced from one job classification to another will
assume the rate in the lower rate progression schedule to which his total
length of such related work experience entitles him.
	 
	(f)	 	Approved rate changes will become effective on the eligibility date.
	 
	(g)	 	An employee who is displaced from a job classification and is thereafter
restored with seniority to that classification will assume a position in
the progression schedule corresponding to his position at the time he was
displaced.
	 
	(h)	 	An employee with at least twelve (12) months of Company Service Credit
who has topped out in his present job and who bids successfully into the
14 Trainee job will be placed at the six (6) month progression step of the
14 rate group.
	 
	(i)	 	The probationary period referred to in Article XII, Section 2(c) will be
changed to one hundred twenty (120) days worked for new employees entering
the trainee classifications for operator, instrument mechanic, maintenance
mechanic, and electrical mechanic.

TABLE II

JOB CLASSIFICATION LISTING

	 	 	 	 	 
	Job Classification	 	Rate Group
	
	 	

	Carpenter 1st Class	 	 	
26	 
	Carpenter 2nd Class	 	 	
23	 
	Chauffeur	 	 	
03	 
	Converter Assembler	 	 	
09	 
	Electrical Mechanic 1st Class	 	 	
28	 
	Electrical Mechanic 2nd Class	 	 	
24	 
	Fire Fighter-EMT	 	 	
07	 

43

 

	 	 	 	 	 
	Garage Mechanic 1st Class	 	 	
26	 
	Heavy Equipment Mechanic 1st Class	 	 	
26	 
	Heavy Equipment Operator	 	 	
26	 
	Instrument Mechanic 1st Class	 	 	
28	 
	Instrument Mechanic 2nd Class	 	 	
24	 
	Janitor	 	 	
01	 
	Laborer	 	 	
01	 
	Line Worker	 	 	
28	 
	Locksmith	 	 	
26	 
	Lubricator	 	 	
06	 
	Machinist 1st Class	 	 	
28	 
	Machinist 2nd Class	 	 	
24	 
	Maintenance Mechanic 1st Class	 	 	
26	 
	Maintenance Mechanic 2nd Class	 	 	
24	 
	Material Handler	 	 	
11	 
	Operator	 	 	
30	 
	Operator B	 	 	
13	 
	Painter 1st Class	 	 	
26	 
	Painter 2nd Class	 	 	
23	 
	Protective Clothing and Equipment Processor	 	 	
05	 
	Refrigeration Mechanic	 	 	
26	 
	Sheet Metal Worker 1st Class	 	 	
26	 
	Trainee	 	 	
14	 
	Truck Driver	 	 	
10	 
	Window Washer	 	 	
02	 

APPENDIX B

The following Plant Committee Divisions and Steward Districts are recognized
for the purpose of Union Representation in the plant in accordance with Article
XIII.

44

 

	 	 	 	 	 
	Steward	 	 	 	 
	District	 	Operations	 	 
	
	 	
	 	 
	1	 	
Cascade Operations
	 	A Shift
	2	 	
Cascade Operations
	 	B Shift
	3	 	
Cascade Operations
	 	C Shift
	4	 	
Cascade Operations
	 	D Shift
	5	 	
Cascade, Power, Utilities
	 	Days
	6	 	
Chemical Operations
	 	Days
	7	 	
Chemical Operations
	 	A Shift
	8	 	
Chemical Operations
	 	B Shift
	9	 	
Chemical Operations
	 	C Shift
	10	 	
Chemical Operations
	 	D Shift
	26	 	
Waste Management	 	 
	27	 	
Fire Fighter-EMT	 	 
	 
	 	 	
General Maintenance	 	 
	 
	12	 	
Maintenance
	 	A Shift
	13	 	
Maintenance
	 	B Shift
	14	 	
Maintenance
	 	C Shift
	15	 	
Maintenance
	 	D Shift
	16	 	
Instrument Maintenance	 	 
	17	 	
Electrical Maintenance	 	 
	18	 	
Maintenance Shop
	 	Days
	19	 	
Maintenance — Plant Services	 	 
	22	 	
Process Maintenance
	 	Days
	23	 	
C-400, C-411	 	 
	24	 	
Machine Shop

Materials, Industrial Relations, Roads and Grounds and Others
	 
	 	 	
Material Handler	 	 
	11	 	
Janitor and Laborer	 	 
	20	 	
Roads and Grounds	 	 
	21	 	
Protective Clothing and	 	 
	25	 	
Equipment Processor	 	 

45

 

APPENDIX C

The Seniority Provisions of this contract as set forth in Article XII shall be
administered by the following job classification groups.

	 	 	 	 	 	 	 
	Group	 	Job Classification	 	Rate Group
	
	 	
	 	

	1	 	
Maintenance Mechanic 1/C

Maintenance Mechanic 2/C

Trainee
	 	 	26
24
14	 
	2	 	
Refrigeration Mechanic
	 	 	26	 
	3	 	
Machinist l/C

Machinist 2/C

Trainee
	 	 	28
24
14	 
	4	 	
Sheet Metal Worker l/C
	 	 	26	 
	5	 	
Carpenter l/C

Carpenter 2/C

Trainee

Locksmith
	 	 	26
23
14
26	 
	6	 	
Painter l/C

Painter 2/C

Trainee
	 	 	26
23
14	 
	7	 	
Heavy Equipment Mechanic l/C

Garage Mechanic l/C
	 	 	26
26	 
	8	 	
Heavy Equipment Operator
	 	 	26	 
	9	 	
Converter Assembler
	 	 	09	 
	10	 	
Truck Driver
	 	 	10	 
	11	 	
Instrument Mechanic l/C

Instrument Mechanic 2/C

Trainee
	 	 	28
24
14	 
	12	 	
Electrical Mechanic l/C

Line Worker

Electrical Mechanic 2/C

Trainee
	 	 	28
28
24
14	 
	13	 	
Operator

Operator B

Trainee
	 	 	30
13
14	 
	14	 	
Fire Fighter-EMT
	 	 	07	 
	15	 	
Material Handler
	 	 	11	 

46

 

	 	 	 	 	 	 	 

	16	 	
Chauffeur
	 	 	03	 
	17	 	
Lubricator
	 	 	06	 
	18	 	
Laborer

Janitor
	 	 	01
01	 
	19	 	
Protective Clothing and
Equipment Processor
	 	 	05	 
	20	 	
Window Washer
	 	 	02	 

APPENDIX D

VACATION REGULATIONS

The following regulations govern the application of the vacation provisions as
set forth in Article XI of the Contract:

	 	(a)	 	The vacation provisions are not applicable to part-time, intermittent, or
temporary employees.
	 
	 	(b)	 	The vacation season will be for the full calendar year. The number of
employees who are on either whole weeks or fragmented vacation days at the
same time may be limited to no less than fifteen (15) percent of the
employees on the vacation lists. KEA, Thanksgiving, and Christmas weeks
will be considered special weeks during which up to twenty (20) percent of
the employees on the vacation lists may schedule vacation.
	 
	 	(c)	 	Vacations are scheduled by supervision during the established
vacation season. Vacation preference will be exercised during the
vacation season within a vacation group within a job classification
group. Preference as to dates is based upon seniority. Such
preference can be exercised only once in a calendar year. Preference
for a split vacation may only be exercised for one part at a time with
preference for the remaining parts being exercised in the same
seniority order. The employee shall make an election during the time
he exercises his vacation preference as to any carry-forward or any
pay-in-lieu of vacation option for which he is eligible. Such elected
option will be irrevocable for the calendar year for which it is made
unless the Company and the employee otherwise mutually agree.
	 
	 	(d)	 	An employee must complete the full minimum Company Service Credit
noted in Article XI before he is eligible for a vacation or vacation
pay.
	 
	 	(e)	 	Vacation payments will be calculated on the basis of an employee’s
straight-time hourly rate, plus any applicable shift differential, in
effect at the time he goes on vacation, multiplied by the number of
hours in his normal workweek. However, the amount paid to an employee
in lieu of vacation or vacation carried forward shall be his
straight-time hourly rate in effect at the time he receives such pay,
multiplied by the number of hours in his normal workweek.
	 
	 	(f)	 	If an employee who has completed the minimum eligibility
requirements for a vacation retires, resigns, is laid off, is
discharged, or dies, he, or his survivors, will be paid for any
vacation in the current year which has not been taken.
	 
	 	(g)	 	Only one (1) vacation will be allowed an employee in any one (1)
calendar year.
	 
	 	(h)	 	The minimum portion of a vacation that may be taken at any one time
is one (1) week except for specifically fragmented vacations as
hereinafter provided:

47

 

	 	 	 
	(1)	 	
Vacations will be scheduled in accordance with the normal
procedure. Employees may take vacation in portions of one (1) or
more whole days in accordance with their current year’s vacation
eligibility as follows: Employees may take up to one (1) week of
this vacation in portions of one (1) or more whole days. Employees
eligible for three (3) weeks of vacation may fragment two (2)
weeks. Employees eligible for four (4) weeks of vacation may
fragment three (3) weeks. Effective January 1, 1991, an employee
eligible for five (5) or six (6) weeks of vacation may fragment
four (4) weeks. When first making such request, the employee must
designate which pre-scheduled week or weeks are to be fragmented;
and these may not subsequently be changed — that is, any remaining
vacation days must be executed during the pre-scheduled week except
for whole days which may be carried forward under Paragraph (s) of
this Article. The employee’s request for one or more days of
vacation must be made with reasonable advance notice.
	 	 	 
	(2)	 	
The first-line manager will have absolute discretion to
approve or disapprove such requests, and his decisions will not be
subject to challenge in the Grievance Procedure or Arbitration.
Such requests will not be granted if in the opinion of the Company
it will be necessary to provide relief at premium or overtime rates
beyond the limitations provided for in Paragraph (b) above.
	 	 	 
	(3)	 	
Up to five (5) days of an employee’s vacation entitlement
may be taken in one-half (1/2) day increments subject to all
provisions of Appendix D, Section (h)

	 	(i)	 	An employee who has completed the minimum eligibility requirements
and is recalled following a layoff for reduction in force will be
required to work for six (6) months following his reemployment before
he is again eligible for a vacation. Such vacation cannot be taken
until the following year if it would otherwise result in a duplication
of the current year’s vacation.
	 
	 	(j)	 	Absence of an employee immediately preceding or following his
vacation may not be excused for any reason except unavoidable
circumstances.
	 
	 	(k)	 	Vacations for which an employee is eligible will not be affected by
a disability absence except that if an employee is absent for an entire
calendar year no vacation will be granted in such year.
	 
	 	(l)	 	An employee who takes a leave of absence will be treated for
vacation purposes in the same manner as if he were terminated as of his
last day worked. If the leave does not extend into another calendar
year, however, the employee may be permitted to postpone any current
year vacation due until after his return to work.
	 
	 	(m)	 	Except as provided for under the carry-forward option in Paragraph
(s), an employee may not postpone his vacation to the following year.
	 
	 	(n)	 	Except as provided for under Pay-in-Lieu of Vacation Option in
Paragraph (r), it is the intention to arrange vacation time off
whenever possible rather than to grant pay-in-lieu of such time off.
	 
	 	(o)	 	If the designated holiday occurs during an employee’s vacation and
that employee would otherwise have been scheduled to work on that day
had it not been a holiday, such employee shall receive eight (8) hours
of pay at straight time in addition to his vacation.
	 
	 	(p)	 	An employee who completes his first year of Company Service Credit
for a vacation with pay as set forth in the Vacation Plan shall have a
vested right to that vacation on the day he completes one year of
Company Service Credit.
	 
	 	(q)	 	An employee’s election of either Option (r) or (s) below does not
disqualify him from electing the other Option applicable to the
remaining weeks of Current Year Vacation to which he is entitled. He
cannot, 

48

 

	 	 	 	of course, duplicate or pyramid benefits by electing both
options for the same week(s).
	 
	 	(r)	 	Pay-in-Lieu of Vacation (PLV) Option

	 	 	 
	(1)	 	
During calendar years in which an employee completes ten
(10) through twenty-nine (29) years of Company Service Credit, the
employee has the option of electing one (1) full week of
pay-in-lieu of vacation.
	 	 	 
	(2)	 	
During calendar years in which an employee completes thirty
(30) or more years of Company Service Credit, the employee has the
option of electing one (1) or two (2) full weeks of pay-in-lieu of
vacation.
	 	 	 
	(3)	 	
Pay-in-lieu of vacation will be paid concurrently with any
full week(s) of Current Year Vacation the employee chooses but
shall not be divided into units of less than one (1) week.
	 	 	 
	(4)	 	
Pay-in-lieu of vacation shall not be used in the
calculation of compensation for other benefit plan purposes or any
overtime or other premium payments.

	 	(s)	 	Carry-Forward Option

	 	 	 
	(1)	 	
An employee with ten (10) or more years of Company Service
Credit may carry forward to a succeeding year up to two (2) weeks
of his Current Year Vacation. It is understood that any
carry-forward vacation must be taken in full week increments.
	 	 	 
	(2)	 	
The maximum amount of carried-forward vacation which an
employee may have to his credit at any time shall be six (6) weeks.
Also, the maximum vacation taken in any calendar year shall be
twelve (12) weeks.
	 	 	 
	(3)	 	
Vacation time carried forward is not subject to payment in
lieu of vacation except upon the employee’s termination.

	 	(t)	 	Starting with calendar year 1997, the Company shall designate two
days each calendar year on which mandatory E-Squad training will be
conducted. The Company will notify E-Squad members of these dates in
January of each calendar year. E-Squad members shall not take whole
day or partial day vacation on either of the two days designated for
E-Squad training.

An employee with one (1) or more years of Company Service Credit who is on the
payroll of the Company on December 31 of the year prior to the calendar year in
which he is entitled to a vacation with pay as set forth in the Vacation Plan
shall have a vested right on that day to such vacation for the following year.
An employee is considered to be on the payroll of the Company unless he has
previously been terminated or has otherwise ceased active work and is not
expected to return to work because of disability or some other reason.

APPENDIX E

COMPANY SERVICE CREDIT RULES

Company Service Credit is based upon employment by United States Enrichment
Corporation and by any Subsidiary Company of the Corporation. Company Service
Credit will be determined under the following rules:

	 	(a)	 	In case an employee receives wages from some Subsidiary of United
States Enrichment Corporation without interruption, his Company Service
Credit begins as of the date such wages become effective.
	 
	 	(b)	 	In case an employee is laid off by the Company on account of
reduction in force and through no fault of his own.

49

 

	 	 	 
	(1)	 	
If such layoff continues not more than four (4) consecutive
years, Company Service Credit will be given for service prior to
such layoff.
	 	 	 
	(2)	 	
If such layoff continues more than four (4) years, no
Company Service Credit will be given for service prior to such
layoff.

	 	(c)	 	In case of absence or absence with leave for a reason other than
disability, which is authorized by the local management, employment
will be considered as continuous without any deduction if it does not
exceed three (3) months. However, in case such absence does exceed
three (3) months, the period of absence in excess of three (3) months
will not be considered as Company Service unless otherwise authorized
by the local management. If an employee who is thus absent fails to
return to work when able to do so and at the time designated by the
Company, he will be considered as voluntarily terminating his
employment and his Company Service Credit shall end as of the date on
which such absence commenced.
	 
	 	(d)	 	In case of rehire subsequent to voluntary termination of
employment, credit will be given for service only since last date of
rehire by the Company unless such employee was rehired within three (3)
months after his voluntary termination, and the local management deems
it to be in the interest of the Company to authorize credit for service
prior to such voluntary termination.
	 
	 	(e)	 	In case of rehire or reinstatement subsequent to discharge for
cause or resignation at the Company’s request, credit will be given for
service only since last date of rehire or reinstatement by the Company,
unless otherwise authorized by the local management.
	 
	 	(f)	 	An employee on the active payroll January 1, 1973, or rehired
thereafter, who had been credited with Continuous Service Credit for
one or more periods of prior employment but who had lost such credit
because of (a) a layoff lasting for more than four (4) years, or (b)
termination for any other cause, will have such prior Continuous
Service Credit restored upon completing a total of two (2) years of
currently accredited Continuous Service Credit following reemployment.

50

 

APPENDIX F

PERSONAL ABSENCE WITHOUT PAY

Employees will be granted time off without pay when the workload permits, as
follows:

	 	(a)	 	Sickness in the immediate family (time necessary to arrange for the
care of the patient only and not to include nursing or attending to the
needs of the patient as such by the employee).
	 
	 	(b)	 	Minimum time necessary to attend a marriage in the immediate family
not to exceed three (3) days.
	 
	 	(c)	 	Minimum time to attend the marriage of a close friend or relative
when employee is participating in ceremony such as best man or usher
not to exceed three (3) days.
	 
	 	(d)	 	Minimum time necessary to attend the funeral of a close friend or
relative not to exceed three (3) days.
	 
	 	(e)	 	Minimum time necessary for settlement of estates, to serve as
witness when subpoenaed in court, dental work, legal closing of
purchase or sale of the employee’s personal residence, financial or
legal transactions with Government officials on personal, not business
matters, where personal attendance is required with the understanding
that the specific time off is beyond the control of the employee.
	 
	 	(f)	 	Minimum time necessary to attend graduation of a son or daughter
from school at the junior high school level or beyond.
	 
	 	(g)	 	Minimum time necessary to attend to duties in key meetings as a
voting delegate to the Credit Union, as a member of a local
governmental body or as a Community Chest Director.
	 
	 	(h)	 	Problems of a personal nature that are considered to be too
sensitive to discuss with first-line manager may be referred to the
Medical Director for a decision.

On items of equal importance necessary time off will be granted without pay by
informing his first-line manager and giving the nature of the item, the time,
the place and the approximate time necessary.

No time will be granted to conduct another business or occupation or avocation
or to attend conventions or meetings or to attend to matters that can be
handled reasonably outside working hours.

The Company agrees to meet with the Union Committee when either party feels
that there is a need to discuss the personal absence policy.

PENSION, GROUP INSURANCE AND

DENTAL AGREEMENT

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

This Agreement, relating to a pension plan, an insurance plan and a dental
insurance plan, entered into on September 1, 1987, by and between Martin
Marietta Energy Systems, Inc., Paducah Plant, Paducah, Kentucky, hereinafter
referred to as the “Company”, and Oil, Chemical & Atomic Workers International
Union, AFL-CIO, and/or its Local 5-550, hereinafter referred to as the “Union.”

WITNESSETH:

51

 

The Company and the Union hereby agree upon the maintenance of the Pension Plan
as amended, the Group Insurance Plan as amended and the Dental Insurance Plan
as amended for the Bargaining Unit employees represented by the Union at the
Company’s Paducah Plant, subject to the following terms and conditions:

PART A — PENSION PLAN

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

	 	(a)	 	Benefits available under the amended Pension Plan to eligible
employees who retire on or after September 1, 1990, are set forth in
the booklet entitled “A Description of the Non-Contributory Pension
Plan...” for employees of Martin Marietta Energy Systems, Inc., as
amended April 1, 1990, which is attached hereto and made a part hereof.
This booklet hereinafter is referred to as the “Pension Booklet.”
	 
	 	(b)	 	It is understood that if any dispute arises from the denial of a
Bargaining Unit employee’s claim for benefits under the Pension Plan,
then such dispute may be taken up through the Grievance and Arbitration
Procedure of the principal Collective Bargaining Contract then in
effect between the parties.
	 
	 	(c)	 	It is understood that an employee who retires and commences to
receive a Pension Benefit will have no rights to resume active
employment with the Company.
	 
	 	(d)	 	The obligation of the Company to maintain the Pension Plan, as
herein provided, is subject to the requirement that approval by the
Internal Revenue Service for the amended Plan is received and
maintained continuously as:

52

 

	 	 	 
	(1)	 	
Qualifying under Section 401 of the Internal Revenue Code
or any other applicable section of the Federal tax laws (as such
Sections are now in effect or are hereafter amended or enacted);
and
	 	 	 
	(2)	 	
Entitling the Company to deduction for payments under the
Plan pursuant to Section 404 of the Internal Revenue Code or any
other applicable section of the Federal tax laws (as such Sections
are now in effect or are hereafter amended or enacted)

	 	 	 	In the event that any revision in the Pension Plan is necessary to
receive and maintain such approval or to meet the requirements of any
other applicable Federal law, the Company and the Union shall resume
negotiations for the purpose of reaching agreement on such revision, it
being understood that such revision shall be held to a minimum, adhering
as closely as possible to the intent expressed in the Pension Plan and
in this Agreement.
	 
	 	(e)	 	The Pension Plan referred to in this Agreement shall be
noncontributory. It is understood, however, that an eligible
Bargaining Unit employee who is a participant at the close of business
on the day preceding the effective date of this Agreement in the
contributory Retirement Plan for Employees in the United States of
Martin Marietta Energy Systems, Inc., may continue to participate in
this Plan, but such participation will in no manner render him
ineligible for the non-contributory pension benefits as provided in the
Pension Plan described and set forth in the Pension Booklet.

PART B — GROUP INSURANCE PLAN

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

	 	(a)	 	Benefits under the Group Insurance Plan as amended September 1,
1990, for eligible employees who participate in the Plan are set forth
in the booklet entitled “Martin Marietta Energy Systems, Inc. Benefits
Handbook” on pages 47 through 53, inclusive, attached hereto and made a
part thereof. This attachment is hereinafter referred to as the
“Insurance Booklet.”
	 
	 	(b)	 	Participation in the Group Insurance Plan shall be on a voluntary
basis.
	 
	 	(c)	 	The costs to employees for Basic Life Insurance and Supplemental
Life Insurance are set forth in the Insurance Booklet, and these costs
will not be increased during the term of the Agreement. Each
participating active employee shall pay his cost of the Group Insurance
Plan by payroll deduction pursuant to his written authorization
therefore on a form supplied by the Company. An early retiree who
qualified for and elects the option to continue the full amount of (a)
his Basic Life Insurance or (b) his Basic and Supplemental Life
Insurance up to age 65, as set forth in the Insurance Booklet, shall
make his payments in advance monthly (or quarterly if he desires) to
the office or postal address designated by the Company.

PART C —  DENTAL INSURANCE PLAN

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

53

 

	 	(a)	 	Benefits under the Dental Insurance Plan as for eligible employees
and dependents who participate in the Plan are set forth in the booklet
entitled “Martin Marietta Energy Systems, Inc. Benefits Handbook dated
April 1, 1990, “Dental Expense Assistance Plan Section” on pages 29
through 38, inclusive, attached hereto and made a part hereof. The
attachment is hereinafter referred to as the “Dental Booklet.”
	 
	 	(b)	 	Dental Insurance Plan coverage will be paid for entirely by the
Company.

     PART D — GENERAL PROVISIONS

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

	 	(a)	 	During the term of this Agreement, the Company Service Credit of an
employee for the purpose of determining eligibility for benefits under
the Pension, Dental Insurance and Group Insurance Plans, and of
computing the amounts of such benefits, shall be determined in
accordance with the Company Service Credit Rules set forth in the
principal Collective Bargaining Contract then in effect between the
parties. However, it is understood that with respect to the Pension
Plan, “credited service” as defined in that Plan shall govern.
	 
	 	(b)	 	In the event of the enactment or amendment of any Federal or State
law providing for benefits similar, in whole or in part, to those
covered by Parts B or C of this Agreement, and requiring either (a)
compulsory participation by any employee or the Company; or (b)
compulsory payment of taxes or contribution by any employee or by the
Company; or (c) benefit costs either to any employee or the Company
different from those provided for under Part B or C of this Agreement,
then the parties hereto agree that they will amend this Agreement so as
to provide that the total cost to the Company for insurance benefits of
whatsoever nature for its employees will not be greater in amount than
such costs as provided by law or by Part B or C of the Agreement,
whichever costs are greater.

54

 

	 	(c)	 	The Company shall retain the right to arrange through an insurance
company(s) or other carrier(s) for coverage providing the benefits
under the Group Insurance and Dental Insurance Plans, current coverage
having been arranged with the Metropolitan Life Insurance Company
(herein called the “Insurance Company”).
	 
	 	(d)	 	The administration of the Group Insurance and Dental Insurance
Plans hereunder and the payment of benefits under the Plans shall be
handled directly by the Insurance Company, it being understood that a
claimant whose benefits claim is denied may contest such denial with
the Insurance Company, but that he shall have no redress whatsoever
against the Company. It is agreed, however, that in any case in which
an employee claiming benefits under the Group Insurance or Dental
Insurance Plans and desiring to file such claim with the Insurance
Company, becomes engaged in a non-medical factual dispute with the
Company in connection with such claim (such as, for example, but not
limited to, disagreement over his earnings group, eligibility,
employment status, amount of Company Service Credit, or other
non-medical factual question), such employee and the Union may process
such dispute through the Grievance Procedure set forth in the principal
Collective Bargaining Contract then in effect between the parties. It
is agreed that any arbitration award as to such factual dispute shall
be final and binding upon the parties hereto and the employee
thereafter may present his claim to the Insurance Company on the basis
of the facts as determined by said award.
	 
	 	 	 	It is agreed, however, that any and all medical questions in dispute
shall be determined solely by the Insurance Company. To request review
of any such dispute, the Bargaining Unit employee shall make written
application therefore to the Insurance Company not more than sixty (60)
days after his receipt of the Insurance Company’s position giving rise
to the dispute. Within sixty (60) days after the Insurance Company’s
receipt of the application for review, it shall inform the employee in
writing of its decision in final disposition of the dispute. Under
special circumstances, the Insurance Company may extend the time for
processing the review, but its decision in final disposition of the
dispute shall be rendered not later than one hundred twenty (120) days
after its receipt of the application for review.
	 
	 	(e)	 	Regardless of the time limit, if any, prescribed in the applicable
principal Contract for the filing of a grievance concerning the alleged
violation of such Contract, a claimant’s appeal under Part A — Section
2 or Part D — Section 5 (first paragraph) will be processed in
accordance with the Grievance and Arbitration procedure, provided that
such grievance is filed not more than sixty (60) days after the
claimant’s receipt of the Company’s position giving rise to the
non-medical factual dispute.
	 
	 	(f)	 	This Pension, Group Insurance and Dental Insurance Agreement shall
replace all prior agreements pertaining to the Pension, Group Insurance
and Dental Insurance Plans, including any amendments to them.

MEMORANDUM OF AGREEMENT,

HEALTH CARE PLAN

(Effective as listed below through September 30, 1996;

thereafter, refer to the Administrative Letter on page 94 and

“Major Features Comparison of Current and Proposed Benefits Plans”, pages 48-67,

for any modifications to this section.)

(Effective July 31, 2001, refer to Administrative Letter page 96.)

It is agreed by the parties that effective September 1, 1990, the present
comprehensive Health Care Plan as set forth in the “Health Benefits Program for
Hourly Employees” booklet dated September 1, 1987, and made a part of the
Contract between the parties dated July 31, 1987, is hereby replaced by a new
comprehensive Health Benefits Program as set forth in the “Martin Marietta
Energy Systems, Inc. Benefits Handbook” dated April 1, 1990, (Pages 5 through
26., inclusive, of such booklet to be considered a part hereof) which includes:

55

 

A Comprehensive Medical Plan designed to pay the major share of covered
hospital, surgical and medical expenses, while attempting to control health
care costs by encouraging the use of cost-effective services.

A Vision Care Plan with no deductible, which includes an eye examination
once every twelve months, one pair of lenses once every twelve months, and
one pair of frames once every twenty-four months.

	(1)	 	The Company will arrange with an insurance company to make
available to participating employees in the bargaining unit certain
benefits set forth in the booklet entitled “Martin Marietta Energy
Systems, Inc. Benefits Handbook” on pages 5 through 26, inclusive.
	 
	(2)	 	It is agreed that the gross cost of the said health benefits
program shall be shared by the Company and participating employees.
Each employee who enrolls in the plan shall pay the applicable rate,
such rate representing six (6) percent of the total gross cost. The
Company shall pay the remaining ninety-four (94) percent of the cost.
(As per the Administrative Letter on page 82, effective October 1,
1996, each employee who enrolls in the new medical plan will pay nine
(9) percent of the total gross cost.)
	 
	(3)	 	Employee participation in the program shall be on a voluntary
basis. Employees who enroll in the program shall authorize the Company
in writing to deduct from their pay the applicable rate.

56

 

MAJOR FEATURES

COMPARISON

OF

PREVIOUS AND NEW

BENEFIT PLANS

Paducah PACE Members

Effective January 1, 2002

PADUCAH PACE MEMBERS

57

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Dental
	

	Premiums: Employee pays 12% (coverage optional)	 	
Premiums:
	 	 	
No Change

	 	 	 
	

	Maximum Coverage:	 	
Maximum Coverage:
	Annual $1500	 	
No Change
	Lifetime Orthodontic $1500	 	 
	Annual Deductible $50	 	 
	No Family Deductible	 	 
	 	 	 
	

	Covered Care:	 	
Covered Care:
	Preventive & Diagnostic 100%	 	
No Change
	Oral Surgery & Restorative 80%	 	
No Change
	Prosthodontic 50%	 	
No Change
	Lifetime Orthodontic $1500	 	
No Change
	

	 	 	 
	Selection of Dentist: Dentist of your choice	 	
Selection of Dentist: No Change
	

	Life Insurance
	

	Coverage:	 	
Coverage:
	Basic — Twice Annual Wages	 	
No Change
	Supplemental — Annual Wages	 	 

58

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Living Benefit: On a one-time basis, employee with terminal
illness may receive up to 50% of Basic and Supplemental Life	 	
No Change
		Taxable

	 Insurance Reduced

	 	 
	

	Flexible Spending Accounts
	

	FSAs: Pre-tax contributes up to $5,000 annually in either or
both accounts	 	
No Change
	Dependent Care Spending Account	 	 
		Child under age 13

	Disabled dependents including spouse

	 	 
	Health Care Spending Account	 	 
		Medical, Dental, Vision, Prescription Drug
Deductibles & 
    Co-payments

	Orthodontic Expenses not covered by Dental Plan

	     Fees Beyond Reasonable & Customary,

	NOT CoveredXCosmetic Surgery & Health Care Premiums

	 	 
	

	Savings Plan
	

	Employee Basic Contributions:	 	
Employee Contributions:
	2.5% to 6% of Pay (1/2% increments)	 	
No Change
	

	Employee Supplemental Contributions:	 	
Employee Supplemental Contributions:
	Effective 1/01/98,	 	
No Change
	1/2% to 9% (1/2% increments)	 	 
	(IRS Regulation)	 	 

59

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Company Matching Contributions:	 	
Company Matching Contributions:
	Effective 1/01/98,	 	
No Change
	100% of 2% / 50% of 4% of Employee’s Pay	 	 
	

	Savings Plan Options:	 	
Savings Plan Options:
	401K — Before and After Tax Deductions	 	
No Change
	

	401K Loan Provision: Residential and general loans up to 50%
of vested account balance or $50,000 whichever is less.
Repayment at prime interest rate plus 1%.
$50 application fee per loan	 	
401K Loan Provision:

No Change
	

	Investment Fund Options:	 	
Investment Fund Options:
	Stable Value Fund	 	
No Change
	Vanguard Windsor Fund	 	 
	Lockheed Martin Corporation Stock Fund (Frozen Fund
until
     May 18, 2002, then eliminated as a fund.)	 	 
	Intermediate-Term Investment Grade Bond Fund	 	 
	Long-Term Investment Grade Bond Fund	 	 
	American Balanced Fund	 	 
	Indexed Equity Fund	 	 
	The Investment Company of America	 	 
	The Growth Fund of America	 	 
	New Perspective Fund	 	 
	

	Fund Selection:	 	
Fund Selection:
	9 Investment fundsXmultiples of 5%	 	
No Change
	

	Rollovers:	 	
Rollovers:
	Available under certain conditions	 	
No Change

60

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Savings Program Information:	 	
Savings Program Information:
	Automated Access through Savings	 	
No Change
	Program Information Line	 	 
		Toll-free number

- 24-hours a day

- 7 days a week

	Customer service representatives

- Monday through Friday

- 9 a.m. to 5 p.m. Eastern time

	 All types of transactions including:

- enroll in program

- check your account balance/value

- make/change investment elections

- transfer between investment options

- change contribution percentages

- request a loan or withdrawal

- request financial information/investment

performance as it becomes available

	Written confirmation within two

business days of most transactions

	 	 
	

	Withdrawals:	 	
Withdrawals:
	Approximately 7 days	 	
No Change
	

	Fund Valuations:	 	
Fund Valuations:
	Daily	 	
No Change
	

	Changing Contribution Percentage:	 	
Changing Contribution Percentage:
	Daily	 	
No Change
	

	Transferring Funds:	 	
Transferring Funds:
	12 times per year	 	
No Change
	At least once per quarter	 	 

61

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Administrative and Investment 
Management Fees:	 	
Administrative and Investment Management 
Fees:
	Deducted from fund earnings	 	
No Change
	

	Program Payout Options:	 	
Program Payout Options:

	Retirement/Disability
	Lump sum payment

	Monthly installment payments over 10,

15 or 20 years

	Installment payments based on single
life expectancy or joint life
expectancy of you and your spouse

	 	
Retirement/Disability

No Change
	 
	
Termination (reasons other than
retirement/disability)

	Lump sum payment

	Rollover to another qualified plan

	 	 
	 
	Death of Employee	 	 
		Spouse may elect

- lump sum payment

- monthly installments over 5-year period

	 	 
	

	Special Accident Insurance
	

	Coverage and Benefit Amounts:	 	
Coverage and Benefit Amounts:
		 Accidental death, dismemberment
or disability

	 Single or Family

	 $20,000 to $500,000 for employee, not
to exceed 10 times annual salary

	 Percentage of employee benefit amount
for family members

	 	
No Change

62

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Coverage During Personal or Medical
 Leave of Absence:	 	
Coverage During Personal or Medical Leave of Absence:
	Up to 12 months (provided premiums are paid)	 	
No Change
	

	Coverage for Your Dependent Children:	 	
Coverage for Your Dependent Children:
	To age 28 while attending school including vocational and
trade schools (no additional cost)	 	
No Change
	

	Additional Surviving Spouse Benefit:	 	
Additional Surviving Spouse Benefit:
	1/2% of the Special Accident Insurance
amount will be payable each month for	 	
No Change
	12 months with family coverage	 	 
	

	Rehabilitation Benefit:	 	
Rehabilitation Benefit:
	Additional benefit of up to $50,000 payable for approved
rehab for employee or covered family member for expenses
incurred within two years of accident	 	
No Change
	

	Child Care Center Benefit:	 	
Child Care Center Benefit:
		 Up to 3% of the Special Accident
Insurance benefit (maximum of
$5,000 per year, per child)
payable to licensed child care center

- must have been enrolled prior to
employee’s death or within 365
days thereafter

- paid once a year up to four years or
until child reaches age 13, whichever
comes first

	One time $1,500 payment made to beneficiary
if no eligible children

	 	No Change	

63

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Disability Benefit:	 	
Disability Benefit:
	Payable if total and permanent disability occurs within 365
days of accident	 	
No Change

64

 

	 	 	 	 	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT -

POINT-OF-SERVICE

(10/01/98)

Columbia Health Care Systems
	 	NEW -

PREFERRED

 PROVIDER

ORGANIZATION

(01/01/02)

	 
	 
	 
	
	 
	IN-

NETWORK	 	OUT-OF-

NETWORK	 	INDEMNITY

Only if No Access to
Network	 
	

	Premium
	

	 	 	
Employee pays 9%
	 	 	 	Employee pays 10%
	

	Deductible
	

	N/A	 	
0.75% of
 pay/individual
	 	0.5% of
 pay/individual
	 	No Change
	 	 	
(minimum $200)
	 	(minimum $200)	 	 
	 	 	
2.25% of pay/family
	 	1.5% of pay/family	 	 
	 	 	
(minimum $400)
	 	(minimum $400)	 	 
	

	Out-of-Pocket Maximum
	

	N/A	 	
6% of pay/individual
	 	5% of pay/individual
	 	No Change
	 	 	
(minimum $2,000)
	 	(minimum $2,000)	 	 
	 	 	
9% of pay/family
	 	8% of pay/family	 	 
	 	 	
(minimum $4,000)
	 	(minimum $4,000)	 	 
	

	Lifetime Maximum
	

	$1,000,000	 	
$1,000,000
	 	$1,000,000
	 	No Change

65

 

	 	 	 	 	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT -

POINT-OF-SERVICE

(10/01/98)

Columbia Health Care Systems
	 	NEW -

PREFERRED

 PROVIDER

ORGANIZATION

(01/01/02)

	 
	 
	 
	
	 
	IN-

NETWORK	 	OUT-OF-

NETWORK	 	INDEMNITY

Only if No Access to
Network	 
	

	Office Visits
	

	(1) Physician or Specialist
	

	$10 co-payment	 	
20% after
	 	10% after
	 	No Change
	

	 	 	
deductible
	 	deductible	 	 
	

	(2) Allergy Testing
	

	$10 initial office	 	
20% after
	 	10% after
	 	No Change
	visit co-payment	 	
deductible
	 	deductible	 	 
	No charge for shots	 	 	 	 	 	 
	

	Preventive Care
	

	(1) Well-Child Care (including immunizations)
	

	$10 co-payment	 	
Not covered
	 	Not covered
	 	No Change
	

	(2) Well-Woman Care (including Pap Test)
	

	$10 co-payment	 	
Not covered
	 	Not covered
	 	No Change
	(once per year)	 	 	 	 	 	 
	

	(3) Routine Mammogram

66

 

	 	 	 	 	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT -

POINT-OF-SERVICE

(10/01/98)

Columbia Health Care Systems
	 	NEW -

PREFERRED

 PROVIDER

ORGANIZATION

(01/01/02)

	 
	 
	 
	
	 
	IN-

NETWORK	 	OUT-OF-

NETWORK	 	INDEMNITY

Only if No Access to
Network	 
	

	No charge with

referral	 	
20% after

deductible
	 	10% after

deductible
	 	No Change
	

Inpatient Hospital/Surgery

	 	 	 	 	 	 	 
	

	$100 co-payment per

day

(2 days maximum)	 	
20% after

deductible
	 	10% after

deductible
	 	No Change
	

Outpatient Surgery

	 	 	 	 	 	 	 
	

	$50 co-payment	 	
20% after

deductible
	 	10% after

deductible
	 	No Change
	

Emergency Care

(1) Doctor’s Office

	 	 	 	 	 	 	 
	

	$10 co-payment	 	
$10 co-payment

If not true

emergency, 20%

after deductible
	 	10% after deductible
	 	No Change
	

(2) Emergency Room

68

 

	 	 	 	 	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT -

POINT-OF-SERVICE

(10/01/98)

Columbia Health Care Systems
	 	NEW -

PREFERRED

 PROVIDER

ORGANIZATION

(01/01/02)

	 
	 
	 
	
	 
	IN-

NETWORK	 	OUT-OF-

NETWORK	 	INDEMNITY

Only if No Access to
Network	 	 
	

	$75 co-payment

(waived if admitted)	 	
$75 co-payment

(waived if admitted)	 	10% after deductible	 	No Change
	If not true emergency,

out-of-network

benefits apply	 	
If not true

emergency, 20%

after deductible
	 	 	 	 
	

Hearing Aids

	 	 	 	 	 	 	 
	

	No charge up to $750

every 36 months	 	
Not covered
	 	Not covered
	 	No Change
	

Inpatient Mental Health/Alcohol and Drug Abuse

	 	 	 	 	 	 	 
	

	$100 co-payment

(2 days maximum)

(lifetime maximum

$50,000)

Limited to 2 alcohol

and/or drug abuse

admissions per

lifetime and 100 days

combined.

Limited to 100 days

per lifetime combined

for mental	 	
20% after deductible

(lifetime maximum

$50,000)

Limited to 2

alcohol and/or drug

abuse admissions

per lifetime and

100 days combined.

Limited to 100 days

per lifetime

combined for

mental
	 	10% after deductible

(lifetime maximum

$50,000)

Limited to 60 days

per lifetime for

mental & 60 days per

lifetime for

substance abuse
	 	No Change
	

69

 

	 	 	 	 	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT -

POINT-OF-SERVICE

(10/01/98)

Columbia Health Care Systems
	 	NEW -

PREFERRED

 PROVIDER

ORGANIZATION

(01/01/02)

	 
	 
	 
	
	 
	IN-

NETWORK	 	OUT-OF-

NETWORK	 	INDEMNITY

Only if No Access to
Network	 	 
	

	Outpatient Mental Health/Alcohol and Drug Abuse
	

	$15 co-payment per

visit for individual

therapy; $10

co-payment per visit

for group therapy,

unlimited with

authorization	 	
20% after deductible

(annual maximum

$3,000)

(authorization

required for more

than 8 visits)
	 	10% after deductible;

30 visits per

calendar year
	 	No Change

70

 

	 	 	 
	

	BENEFIT PLANS - MEDICAL
	

	CURRENT (08/01/01)	 	NEW (01/01/02)
	

	Prescription Drug Plan
	

	Coverage:	 	
Coverage:
	In-Network ($50 annual deductible)	 	
No Change
	• 10% of cost, after annual deductible, for
30-day
   generic drug supply	 	 
	• 20% of cost, after annual deductible, for
30-day
   brand-name drug supply	 	 
	Out-of-Network ($50 annual deductible)	 	 
	• 50% co-pay for 30-day supply of generic or

   brand-name drug supply	 	 
	• 50% co-pay of brand-name drug plus the

   difference between brand-name and generic drug

   if physician authorized generic	 	 
	Mail Order Drugs (No deductible)	 	 
	• $5 for up to a 90-day generic drug supply	 	 
	• $15 for up to a 90-day brand-name drug supply	 	 
	

Vision Care

	 	 	 
	

	Scheduling Appointments:	 	
Scheduling Appointments:
	• Directly contact Panel Doctor	 	
No Change
	Basic Coverage Using Panel Doctor:	 	
Basic Coverage Using Panel Doctor:
	• One eye exam every 12 months	 	
No Change
	• One pair of frames every 24 months, up to $40	 	 
	• One pair of lens every 12 months	 	 
	• Second pair of glasses (frames and

   lenses) at 20% discount	 	 
	

71

 

The Major Features Comparison is provided as a summary document and does not
change or modify actual plans.

72

 

MEMORANDUM OF UNDERSTANDING

WORKFORCE FLEXIBILITY

DATED: JULY 31, 1996

The tasks listed on the following table of tasks will be shared and may be
performed by any of the classifications indicated, it being be understood that:

	1.	 	the Company will make required revisions of procedures and
	 
	2.	 	the Company will provide training appropriate to the task.

See attached Table of Tasks.

73

 

	 	 	 
	

	TASK	 	CLASSIFICATIONS
	

	MONITORING
	

	Perform radiological surveys (including documentation) for
contamination on designated items, e.g., tools, hand-carried
equipment, and hand-carried containers to allow movement
within the plant. (The scope may increase to larger items of
equipment and vehicles as procedures are developed and
training is implemented.) Monitoring for off-site release
shall remain the exclusive work of non-bargaining unit
employees	 	
Health Physics and/or all

bargaining unit classifications
	

	SPRINKLER SYSTEMS

	

	Replace clapper gaskets for sprinkler systems	 	
Maintenance and/or Fire Fighter-EMT
	

	Reset clapper valves for dry-pipe and deluge sprinkler systems	 	
Maintenance and/or Fire Fighter-EMT
	

	Replace pressure gauges on sprinkler headers	 	
Maintenance and/or Fire Fighter-EMT
	

74

 

MEMORANDUM OF UNDERSTANDING

ELIMINATION OF SCALE MECHANIC CLASSIFICATION

DATED: JULY 31, 1996

The Scale Mechanic classification will be eliminated. The current incumbent
shall be reclassified as Instrument Mechanic with Instrument Mechanic
seniority as though he had never left that classification. He will be
assigned to the instrument shop work group.

75

 

MEMORANDUM OF UNDERSTANDING

HOURS OF WORK LIMITATIONS

DATED: JULY 31, 1996

Except in an emergency or as provided below, employees should not be allowed to
work more than:

	 	1.	 	16 consecutive hours.
	 
	 	2.	 	16 hours in any 24-hour period.
	 
	 	3.	 	24 hours in any 48-hour period.
	 
	 	4.	 	72 hours in any 7-day period.

In counting consecutive hours of work, the unpaid lunch and/or shift overlap
period where applicable shall be excluded.

An employee who has worked 16 consecutive hours will not be permitted to return
to work until eight (8) hours have elapsed immediately following the 16
consecutive hour work period. Such employee will be paid his/her basic
straight-time rate for any portion of his/her regularly scheduled shift, which
he/she was not permitted to work.

If, in the event of a scheduling error, an employee works overtime that
disqualifies the employee from working on a scheduled day of work, or an
employee reports for an overtime opportunity that is not allowed by the above
limitations, the employee shall have the option to work the scheduled day, or
the overtime opportunity, but shall be given assignments not directly related
to plant operational activities such as required training, reading, procedure
review, and material/equipment inventory. The employee may, however, decline
to work the scheduled day or the overtime opportunity. In such event, the
employee shall neither be paid for the declined work nor charged with either an
absence or for declining an overtime opportunity.

76

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

The Medical Department will continue to investigate all avenues of medical
information available to them within the province of medical ethics, in all
cases of permanent restrictions and will furnish such information to any
licensed practicing physician (M.D.) at the request of any employee having such
restrictions.

In cases involving permanent restrictions, the employee will be placed on a
temporary restriction for a reasonable length of time to allow him opportunity
to seek outside medical diagnosis, which can be presented to the Company
Medical Department.

All employees will be advised in writing of the medical restriction and its
cause if requested by the employee.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

77

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

The following is an administrative agreement dealing with vacation and holiday
pay for employees who are temporarily reclassified:

If an employee is temporarily reclassified to a higher classification for one
full week prior to taking one or more full weeks of vacation, and for one full
week after said vacation, the vacation pay will then be at the higher rate.

If an employee is temporarily reclassified to a higher classification for a
full week containing a holiday, he will be paid the holiday pay at the higher
rate.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

78

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

A general wage increase will be applied, when effective, to employees on
short-term disability as defined in Article IX, Section 1. A general wage
increase will not apply to employees on long-term disability as defined in
Article IX, Section 2. However, if an employee returns to work from long-term
disability absence, he will receive the appropriate rate then in effect under
the wage schedule of Appendix A.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

79

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

The parties agree that in order to clarify the vested rights for the subsequent
year’s vacation for employees, with one or more years of service, who are
absent because of disability as of December 31, the following guidelines will
apply:

	 	1.	 	If such an employee is receiving, on December 31, either
Non-occupational Disability or Occupational Disability payment as
outlined in Article IX, Section 1 of the Company-Union Contract, he
shall be regarded as “being on the payroll” as of December 31 and will
be vested for the subsequent year’s vacation.
	 
	 	2.	 	In any event, if such an employee files a claim for Long Term
Disability before, on, or after December 31, and such disability payment
becomes effective prior to December 31 of the previous year, such an
employee will not have vested rights to the subsequent year’s vacation.
	 
	 	3.	 	If such an employee is not receiving benefits under Article IX,
Section 1 on December 31, he will not be vested for the subsequent
year’s vacation unless he returns to work in that subsequent year.
	 
	 	4.	 	It is understood that the above clarification relates solely to
vacation vesting and does not affect any other determination of whether
an employee is deemed to be on the payroll.
	 
	 	5.	 	Under no circumstances will an employee be eligible for vesting
vacation for more than one year on the basis outlined above.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

80

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

Our normal practice will be to suspend an employee at least two working days
prior to discharge for cause. Employee Relations shall notify the Union
President at the time of such a suspension of any Bargaining Unit employee. At
the request of the Union, the Company will meet with the Union President and
the Committeeperson involved for discussions prior to discharge of an employee
for cause. The Company will not discipline (discharge, suspend, or issue
written reprimand) any employee without just cause.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

81

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

This confirms our discussions with you concerning the question of management
doing bargaining unit work.

The Company’s intent is that non-bargaining personnel will not do bargaining
unit work and they will be so instructed at the time the new contract is
explained. Management will give special attention to those individuals
unwilling to comply with the stated intent.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

82

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

The following is an amended letter to replace the letter of administrative
understanding dated July 31, 1996, which was the Company/Union agreement on
administration of transfer from one work group to another, work assignments out
of classification, and the arrangement of work groups.

Transfers from one work group to another work group over thirty (30) days will
be made by seniority (Group Seniority) preference, except that in the
Maintenance Mechanic Classification the Company may assign employees across
work groups for the required time to perform specific jobs such as cell
changes, valve changes, large piping jobs, and the shutdown or startup of a
facility.

Work groups are defined as job classifications except as follows:

	 	 	 	 	 
	Maintenance Mechanics:	 	
Group
	 	1 — Shop
2 — Field
	Instrument Mechanics:	 	
Group
	 	1 — Shop
2 — Field

3 — Instrument Mechanics “C”
	Electrical Maintenance:	 	
Group
	 	1 — Shop
2 — Field
	 
	Operators:	 	
Group
	 	1 — Chemical, Days

2 — Chemical, “A”

3 — Chemical, “B”

4 — Chemical, “C”

5 — Chemical, “D”

6 — Cascade, Days & “R”

7 — Cascade, “A”

8 — Cascade, “B”

9 — Cascade, “C”

83

 

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
2
	 	 	July 31, 2001

	 	10 — Cascade, “D”

11 — Power, Days & “R”

12 — Power, “A”

13 — Power, “B”

14 — Power, “C”

15 — Power, “D”

16 — Utilities, Days & “R”

17 — Utilities, “A”

18 — Utilities, “B”

19 — Utilities, “C”

20 — Utilities, “D”

Not considered as a transfer are assignments for cross-training of employees
within a job classification in Operations for a period not to exceed three (3)
months. In the event of a shutdown or cutback and subsequent reactivation of a
building, the employees moved out of said building may be returned on a
seniority basis. Shift preference within a shift preference group will
supersede work group transfers.

Work assignments out of classification shall be made by seniority preference
within the work group to the interested qualified employee except assignments
for less than six (6) working days.

VACATION LISTING

	 	 	 	 	 
	CLASSIFICATION*	 	NEW LISTING
	
	 	

	Maintenance:	 	 	 	 
	 
	Maintenance Mechanics	 	
a
	 	Utilities and C-400 and Feed Plant and C-340
and HEPA General Maintenance
	 	 	
b
	 	Cascade Areas 1, 2, 3, 4
	 	 	
c
	 	Process Maintenance, Shifts
 
	Compressor Shop	 	
a
	 	Compressor Shop – Days
	 	 	
b
	 	Compressor Shop – Shift
	 	 	
c
	 	Seal Shop
 
	Pump Shop	 	
a
	 	Pump Shop, and Valve Program
	 	 	
b
	 	Crane and Elevator Maintenance and
Refrigeration Maintenance
 
	Fabrication Shop	 	
a
	 	Fabrication Shop – Days and Cell Set Up and
Changeout
	 	 	
b
	 	Fabrication Shop, Shifts
 
	Converter Assembler	 	
a
	 	Converter Assemblers – Days
	 	 	
b
	 	Converter Assemblers – Shift

84

 

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
3
	 	 	July 31, 2001

VACATION LISTING

	 	 	 	 	 
	CLASSIFICATION*	 	NEW LISTING
	
	 	

	Instrument Mechanics	 	
a
	 	Instrument Shop and A, B, C, D Rotating Shifts
	 	 	
b
	 	Instrument Field
 
	Electrical Mechanics	 	
a
	 	Electrical Shop and A, B, C, D Rotating Shifts
	 	 	
b
	 	Electrical Field
 
	Machinists	 	 	 	 
	Sheet Metal Workers	 	 	 	 
	Carpenters	 	 	 	 
	Locksmith	 	 	 	 
	Painters	 	 	 	 
	Heavy Equip. Mechs. & Garage Mechs	 	 	 	 
	Heavy Equipment Operators	 	 	 	 
	Truck Drivers
 	 	 	 	 
	Operators:	 	 	 	Chemical, Days
	 	 	 	 	Chemical, “A”
	 	 	 	 	Chemical, “B”
	 	 	 	 	Chemical, “C”
	 	 	 	 	Chemical, “D”
	 	 	 	 	Feed Plant
	 	 	 	 	Cascade, Days & “R”
	 	 	 	 	Cascade “A”
	 	 	 	 	Cascade “B”
	 	 	 	 	Cascade “C”
	 	 	 	 	Cascade “D”
	 	 	 	 	Power, Days & “R”
	 	 	 	 	Power “A”
	 	 	 	 	Power “B”
	 	 	 	 	Power “C”
	 	 	 	 	Power “D”
	 	 	 	 	Utilities, Days & “R”
	 	 	 	 	Utilities “A”
	 	 	 	 	Utilities “B”
	 	 	 	 	Utilities “C”
	 	 	 	 	Utilities “D”
	Operator B	 	 	 	 
	Fire Fighters-EMT	 	 	 	 

85

 

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
4
	 	 	July 31, 2001

VACATION LISTING

	 	 	 
	CLASSIFICATION*	 	NEW LISTING
	
	 	

	Material Handlers
	Chauffeurs
	Lubricators
	Protection Clothing & Equipment Processors
	Janitors & Window Washers
	Laborers

*Up to twenty (20) percent of employees on vacation lists may schedule
KEA, Thanksgiving, and Christmas weeks beginning in calendar year 1990.

OVERTIME LISTING

	 	 	 
	Maintenance Mechanics:	 	
C-600
	 	 	
C-411
	 	 	
C-340
	 	 	
C-333, C-337 and Shift
	 	 	
Special Assignment
	 	 	
Cell Change
	 	 	
Fabrication Shop
	 	 	
Compressor Shop
	 	 	
Seal Shop
	 	 	
Refrigeration Shop
	 	 	
Pump Shop
	 	 	
Erection & Materials Handling
	 	 	
HEPA General Maintenance
	Machinists	 	 
	Sheet Metal Workers	 	 
	Carpenters	 	 
	Locksmith	 	 
	Painters	 	 
	Heavy Equip. Mechs. & Garage Mechs	 	 
	Heavy Equipment Operators	 	 
	Converter Assemblers	 	 
	Truck Drivers
 	 	 
	Instrument Maintenance:	 	
Shop
	 	 	
Field
	 	 	
Instrument Mechanic “C”

86

 

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
5
	 	 	July 31, 2001

OVERTIME LISTING

	 	 	 
	Electrical Maintenance:	 	
Power
	 	 	
Cascade
	 	 	
Auxiliary
	 	 	
Relay & Communications Shop
	 	 	
Motor Shop
	 	 	
Rotating Shifts
 
	Operators:**	 	
Chemical, Days
	 	 	
Chemical, “A”
	 	 	
Chemical, “B”
	 	 	
Chemical, “C”
	 	 	
Chemical, “D”
	 	 	
Feed Plant
	 	 	
Cascade, Days & “R”
	 	 	
Cascade “A”
	 	 	
Cascade “B”
	 	 	
Cascade “C”
	 	 	
Cascade “D”
	 	 	
Power, Days & “R”
	 	 	
Power “A”
	 	 	
Power “B”
	 	 	
Power “C”
	 	 	
Power “D”
	 	 	
Utilities, Days & “R”
	 	 	
Utilities “A”
	 	 	
Utilities “B”
	 	 	
Utilities “C”
	 	 	
Utilities “D”
 
	Operator B	 	 
	Fire Fighters-EMT	 	 
	Material Handlers	 	 
	Chauffeurs	 	 
	Lubricator	 	 
	Protective Clothing &

Equipment Processors	 	 
	Laborers	 	 
	Janitors & Window Washers	 	 
	 
	**Days and “R” are intermingled with whatever shift is on days.

Employees who work in the Field Services Organization will be placed on a
separate overtime list per job classification. Such as, all Janitors
working in the Field Services Organization will be placed on a separate
overtime list from the rest of the Janitors.

87

 

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
6
	 	 	July 31, 2001

SHIFT PREFERENCE LIST

Shift preference groups are defined as job classification except as follows:

	 	 	 	 	 
	Maintenance Mechanics:	 	
One Group***
 	 	 
	Instrument Mechanics:	 	
Group 1
	–	All Other Instrument
	 	 	
Group 2
	–	Instrument Mechanic “C”
 
	Electrical Maintenance:	 	
Group 1
	–	Lineman
	 	 	
Group 2
	–	All Other Elect. Maint.
 
	Operators:	 	
Group 1
	–	Cascade
	 	 	
Group 2
	–	Chemical
	 	 	
Group 3
	–	Power
	 	 	
Group 4
	–	Utilities

           ***A maximum of fifty (50) percent of a shift’s bumping rights may be
delayed for up to thirty (30) days after the exercise of shift preference.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

88

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
    
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

The following is the administrative agreement dealing with the 12-hour shift:

	 	1.	 	All rotating shift workers (PACE) at the Paducah Plant.
	 
	 	2.	 	Consists of two 40-hour, one 44-hour, and one 36-hour work weeks.
	 
	 	3.	 	Hours: 7:00 a.m. to 7:00 p.m. and 7:00 p.m. to 7:00 a.m.
	 
	 	4.	 	In no case will employees working the newly established 12-hour shift
schedules receive standard overtime for hours worked in excess of eight
in a 24-hour period. Employees will receive pay at one and one-half
(1-1/2 x STHR) or two (2 x STHR) for holdover, call-in, and work in
excess of 40 hours in a payroll week. And employees will receive pay at
one and one-half (1-1/2 x STHR) or two (2 x STHR) for holdover, call-in,
and work in excess of 36 hours (if applicable) in a payroll week in
accordance with the terms of the Contract.
	 
	 	5.	 	Employees receive four hours at the overtime rate once every three
weeks when they work the scheduled 44-hour work week.
	 
	 	6.	 	Double time pay for all hours worked on the seventh consecutive day worked in any payroll week or in the alternative, provided all scheduled
work days in a payroll week are worked or paid for per Article VI,
Section 14, an employee scheduled on a 12-hour shift who works a second
day in addition to their normal schedule within the payroll week will be
paid the seventh consecutive day (2 X STHR) premium rate. However, the
seventh day provision will only apply to one day within the payroll week
as follows:

	 	 	 	a)	In the event more than one day could be considered the
seventh consecutive day, the day with the greatest number of
hours worked (twelve hours or more) will be the qualifying
seventh day and all hours worked will be paid at two times
STHR. If the qualifying seventh day is less than a 12-hour
work day provision (b) applies.

	 	 	 	 	 	 	 
	Mrs. Steele	 	 	
2
	 	 	July 31, 2001

	 	 	 	b)	On the occasion when two days could have qualified as
the seventh consecutive day and neither of those days were
twelve hours or more, hours worked on both days up to a
total of twelve hours will be paid at two times STHR. Any
additional overtime hours will be paid at 1-1/2 times STHR.

89

 

	 	7.	 	For working 12 hours on holiday, employee receives double time and a
half for eight of the hours and straight time for four of the hours.
	 
	 	8.	 	When two worked holidays fall back to back and an employee begins work
at 7:00 p.m. on the first holiday, he will receive 16 hours pay at double
time and a half.
	 
	 	9.	 	Weekend premium will be paid for all hours worked on Saturday and
Sunday.
	 
	 	10.	 	Shift premium will be paid at sixty (60) cents per hour for hours worked
between 7:00 p.m. and 7:00 a.m. No shift premium will be paid for hours
worked between 7:00 a.m. and 7:00 p.m.
	 
	 	11.	 	When holdover is necessary, the employee may be held over to work four
hours and an employee from the overtime list on off shift will be called
in to work.
	 
	 	12.	 	Meal allowance will be paid after 14 hours of continuous and
successive hours.
	 
	 	13.	 	Funeral leave allowance will be counted as three 12-hour days. As a
special provision, in the event of the death of an employee’s spouse or
child, funeral leave allowance will be counted as five 12-hour days.
	 
	 	14.	 	Vacation, sick, and personal time are accounted for in increments of four
and eight hours. Four hours will be one-half day for record purposes and
12 hours will be recorded as one and one-half days of vacation.
	 
	 	15.	 	These conditions are not all inclusive and unanticipated situations may
arise. The company and union will address such occurrences being guided
by the intent of this agreement that no employee will receive a windfall
under the contract by virtue of working a 12-hour rather than an
eight-hour shift.
	 
	 	16.	 	“R” shift employees will work from 7:00 a.m. to 3:00 p.m. Monday through
Friday.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

90

 

Lockheed Martin Utility Services, Inc.

P.O. Box 1410

Paducah, Kentucky 42002-1410

July 31, 1996

Mr. D. R. Fuller, President

Oil, Chemical & Atomic Workers
  
International Union, AFL-CIO

P. O. Box 494

Paducah, Kentucky 42001

Dear Mr. Fuller:

During negotiations, the Company and Union agreed to restructure the current
operator classification into two new classifications. The new Operator
classification will be rate group 30 and Operator B will be rate group 13. The
following describes the restructuring.

	 	1.	 	Operator Classification — Rate Group 30

	 	 	 
	a	 	
New Hires/Bidders
	 
	 	 	
After contract ratification, all operator trainees who enter rate group
14 for progression through rate group 30 will be required to reach the
top of rate group 30.
	 
	b	 	
Incumbent Operators and Trainees (Rate Groups 13 and 14).
Progression to the twenty-seven (27) month level will remain unchanged.
Following successful progression to the twenty-seven (27) month level of
new rate group 30, an operator may progress to the thirty (30) and
thirty-three (33) month levels (topped out) by successfully passing
evaluations. Operators who do not pass the evaluation will remain at the
highest level achieved. The evaluations will be based on those used in
the fifteen (15) month training program.

	 	2.	 	Establish New Operator B Classification — Rate Group 13
	 
	 	 	 	The work of the Operator B classification will be the decontamination type
work now performed by Chemical Operators. Such work will not include the
operation of the spray booth, degreasers, uranium recovery equipment, and
fluorine production equipment. It is understood that the establishment of
the Operator B classification will not effect work normally performed by any
other classification.

	 	Sincerely,

	 	L. K. Pahl, Manager

Employee Relations

LKP:jkw

91

 

Lockheed Martin Utility Services, Inc.

P.O. Box 1410

Paducah, Kentucky 42002-1410

	 	July 17, 1996

Art Maxwell

OCAW International Representative

OCAW, Local 3-550 Negotiating Committee

Dear Art and Committee:

This is to confirm our understanding regarding the Benefit Plan revisions.
Contract provisions regarding page 23-29 (Disability Pay) and pages 75-84
(Pension, Group Insurance and Dental Agreement; Part A - Pension Plan; Part B -
Group Insurance; Part C - Dental Insurance Plan; Part D - General Provisions;
and Memorandum of Agreement, Health Care Plan) shall apply through September
30, 1996. On and after October 1, 1996, Benefit Plans will be modified as
stated in the “Major Features Comparison of Current and Proposed Benefit Plans”
document provided to the Union on July 17, 1996, but otherwise the benefit
plans shall remain unchanged. It is understood, however, that:

	 	 	 
	[   ]	 	
Effective October 1, 1996, each employee who enrolls in the new
medical plan will pay 9% of the total gross cost.
 
	[   ]	 	
The company will prepare a new benefit handbook addressing all
benefit plan changes. When this handbook is reviewed and approved by
the union, it will be incorporated into the contract and issued to
bargaining unit members.

Please confirm by signing below and returning a signed copy to me.

	 	W. E. (Bill) Thompson

LMUS Human Resources Director

WET:jkw

APPROVED:

______________________________

Art Maxwell

OCAW International Representative

92

 

	 	July 31, 2001

Mrs. Donna Steele, President

Paper, Allied-Industrial, Chemical and Energy
  
Workers International Union, AFL-CIO

Post Office Box 494

2525 Old Cairo Road

Paducah, Kentucky 42001

Dear Mrs. Steele:

     This is to confirm our agreement that employees working the shift that is
impacted by the conversion to Daylight Savings Time, in which the worker is
required to work a shift that is one hour less than their normal scheduled day,
will be allowed to continue working for that additional hour at the applicable
rate of pay.

	 	Sincerely,

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

93

 

	 	November 26, 2002

PACE International AFL-CIO

PACE, Local 5-550

This is to confirm our agreement regarding modifications to the previous
Benefit Plans. Benefit Plans Pension, Medical, Group Insurance, Dental,
Prescription, and Vision Care will remain unchanged except:

	 	•	 	Effective January 1, 2002, each employee who is enrolled in the
medical plan will contribute 10% of the total medical premium.
	 
	 	•	 	Effective January 1, 2002, all bargaining unit employees will
transition to a Preferred Provider Organization (PPO) medical plan.
(Described in the Major Features Comparison of Previous and Current
Benefit Plans contained in this contract.)
	 
	 	•	 	Effective July 31, 2001, the Pension “add on” will increase from $18 to $50.

	 	Bill Harrison

Human Resources Generalist

WKH:jkw

94

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