Document:

exv10w5

 

EXHIBIT 10.5

ARTICLES OF AGREEMENT

BETWEEN

STERLING CHEMICALS, INC.

ITS SUCCESSORS AND ASSIGNS

AND

TEXAS CITY, TEXAS

METAL TRADES COUNCIL, AFL-CIO

TEXAS CITY, TEXAS

May 1, 2007

to

May 1, 2012

 

CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 7

	 	SUPERVISORS DOING HOURLY WORK
	 	 	20	 
	ARTICLE 8

	 	WORK CLASSIFICATIONS
	 	 	20	 
	ARTICLE 9

	 	STAFFING OF NEW UNITS
	 	 	20	 
	ARTICLE 10

	 	STEWARDS
	 	 	21	 
	ARTICLE 11

	 	CONTRACT WORK
	 	 	21	 
	ARTICLE 12

	 	PAY DAY
	 	 	22	 
	ARTICLE 13

	 	PHYSICAL EXAMINATIONS
	 	 	22	 
	ARTICLE 14

	 	DISCRIMINATION
	 	 	23	 
	ARTICLE 15

	 	UNION REPRESENTATIVES
	 	 	23	 
	ARTICLE 16

	 	JURY SERVICE
	 	 	23	 
	ARTICLE 17

	 	ELECTION DAY REGULATIONS
	 	 	24	 
	ARTICLE 18

	 	REPLACEMENT OF CLOTHING
	 	 	25	 
	ARTICLE 19

	 	LAYOFF NOTICE — SEPARATION
ALLOWANCE
	 	 	25	 
	ARTICLE 20

	 	LEAVE OF ABSENCE
	 	 	27	 
	ARTICLE 21

	 	SANITATION AND SAFETY
	 	 	28	 
	ARTICLE 22

	 	BULLETIN BOARDS
	 	 	29	 
	ARTICLE 23

	 	COMPANY RULES
	 	 	29	 
	ARTICLE 24

	 	PRODUCTIVITY STATEMENT
	 	 	30	 
	ARTICLE 25

	 	FUNERAL LEAVE
	 	 	31	 
	ARTICLE 26

	 	STRIKES AND LOCKOUTS
	 	 	32	 
	ARTICLE 27

	 	GRIEVANCE PROCEDURE AND

DISCIPLINE RECORDS
	 	 	32	 
	ARTICLE 28

	 	ARBITRATION PROCEDURE
	 	 	35	 
	ARTICLE 29

	 	ABROGATION OF CONTRACT ARTICLES
	 	 	35	 
	ARTICLE 30

	 	OCCUPATIONAL & NON-OCCUPATIONAL

ACCIDENT AND SICKNESS PLAN
	 	 	36	 
	ARTICLE 31

	 	WORK ASSIGNMENTS
	 	 	39	 
	ARTICLE 32

	 	CONTRACT PERIOD
	 	 	39	 
	 
	 	 	 	 	 	 
	EXHIBIT A

	 	12 HOUR SHIFT AGREEMENT
	 	 	42	 
	EXHIBIT B

	 	WAGE RATES
	 	 	59	 
	EXHIBIT C

	 	EMPLOYEE BENEFITS
	 	 	61	 
	 
	 	 	 	 	 	 
	NO JURISDICTION 

SUPPORTING INFORMATION

	 	 	 	 	64	 

i

 

ALPHABETICAL INDEX

	 	 	 	 	 
	 	 	 	 	PARAGRAPH
	 	 	Signatory Unions
	 	1
	 	 	Basic Principles
	 	2
	 	 	Union Recognition
	 	3
	 	 	Scope of Agreement
	 	4
	 	 	 
	 	 
	ARTICLE 29	 	ABROGATION OF CONTRACT ARTICLES
	 	69
	 	 	 
	 	 
	ARTICLE 28	 	ARBITRATION PROCEDURE
	 	 
	 	 	Appealed Grievance Time Length
	 	68 b)
	 	 	Arbitration Expenses
	 	68 c)
	 	 	Arbitrator Authority
	 	68 d)
	 	 	Length of Time to Arbitrate
	 	68 a)
	 	 	Time Limit Failure
	 	68 e)
	 	 	 
	 	 
	ARTICLE 22	 	BULLETIN BOARDS
	 	62 a)
	 	 	 
	 	 
	ARTICLE 23	 	COMPANY RULES
	 	63 a)
	 	 	 
	 	 
	ARTICLE 32	 	CONTRACT PERIOD
	 	80 a) thru d)
	 	 	 
	 	 
	ARTICLE 11	 	CONTRACT WORK
	 	 
	 	 	Utilizing Independent Contractors
	 	42 a)
	 	 	 
	 	 
	ARTICLE 14	 	DISCRIMINATION
	 	 
	 	 	Charges of Discrimination
	 	45 b)
	 	 	 
	 	 
	ARTICLE 17	 	ELECTION DAY REGULATIONS
	 	 
	 	 	Election Judge
	 	52 b)
	 	 	Employees Time off to Vote
	 	52 a)
	 	 	 
	 	 
	ARTICLE 25	 	FUNERAL LEAVE
	 	 
	 	 	Funeral Leave
	 	65 a) & b)
	 	 	Funeral Leave while on Vacation
	 	65 c)
	 	 	Pallbearer
	 	65 g)
	 	 	Proof of Relationship
	 	65 f)
	 	 	 
	 	 
	ARTICLE 27	 	GRIEVANCE PROCEDURE AND DISCIPLINE RECORDS
	 	 
	 	 	Discharge Grievance Process
	 	67 c) thru e)
	 	 	Grievance Lapse Time
	 	67 a) 1)
	 	 	Grievance Time Limit Exceptions
	 	67 f)
	 	 	Length of Time to Answer Grievance
	 	67 a) 6)
	 	 	Letters of Reprimand
	 	67 g) & h)
	 	 	PUC Meeting Membership
	 	67 b)
	 	 	Sick Pay Benefit Grievance
	 	67 a) 5)
	 	 	Step 1 - Grievance Procedure
	 	67 a) 2)
	 	 	Step 2 - Grievance Procedure
	 	67 a) 3)
	 	 	Step 3 - Grievance Procedure
	 	67 a) 4)
	 	 	 
	 	 
	ARTICLE 3	 	HOURS OF WORK
	 	 
	 	 	Changes to Materials Handling Schedule
	 	13 h)
	 	 	Dentist/Doctor Appt. 3 Hrs Unpaid
	 	13 f)
	 	 	Hours of Work — Maintenance
	 	12 a) thru c)
	 	 	Hours of Work — Groups 1, 2, & 4
	 	11 a) thru b)
	 	 	Normal Workweek
	 	13 d)
	 	 	Schedule Less than 40 Hours Inadvertently
	 	13 e)

i

 

ALPHABETICAL INDEX

	 	 	 	 	 
	 	 	 	 	PARAGRAPH
	 	 	Shift Work Scheduling (when deemed necessary)
	 	13 a) & d)
	 	 	“Shift Work” – Definition of
	 	13 g)
	 	 	 
	 	 
	ARTICLE 16	 	JURY SERVICE
	 	 
	 	 	Afternoon Court Appearance
	 	49 a) & 51 a)
	 	 	Morning Court Appearance
	 	48 a)
	 	 	Proof of Service
	 	50 a)
	 	 	 
	 	 
	ARTICLE 19	 	LAYOFF NOTICE — SEPARATION ALLOWANCE
	 	 
	 	 	Eligibility for Separation Allowance
	 	57 a) & b)
	 	 	Labor Dispute Lay Off
	 	54 c)
	 	 	Lay Off Notice
	 	54 a) thru b)
	 	 	Lay Off Separation Allowance
	 	55 a)
	 	 	Method of Payment of Separation Allowance
	 	56 a) thru d)
	 	 	 
	 	 
	ARTICLE 20	 	LEAVE OF ABSENCE
	 	 
	 	 	Leave of Absence for Personal Reasons
	 	58 a)
	 	 	Leave of Absence for Union Conventions
	 	58 b)
	 	 	Leave of Absence to Accept Employment with
the Union
	 	58 c)
	 	 	Leave of Absence For Newborn Child
	 	58 d)
	 	 	Public Office Appointment
	 	58 e)
	 	 	 
	 	 
	ARTICLE 1	 	MANAGEMENT RIGHTS
	 	5
	 	 	 
	 	 
	ARTICLE 30	 	OCCUPATIONAL & NON-OCCUPATIONAL ACCIDENT AND SICKNESS PLAN
	 	 
	 	 	Benefit Amount
	 	73 b)
	 	 	Benefit Payment
	 	73 a)
	 	 	Benefits Based on Normal Workweek
	 	72 a)
	 	 	Benefits during Vacation
	 	78 a) & b)
	 	 	Benefits during Work Stoppage
	 	77 a)
	 	 	Benefits while on Probation
	 	73 c)
	 	 	Duration of Benefits
	 	71 a) thru c)
	 	 	Exclusion from Benefit
	 	73 a) thru b)
	 	 	Late Report of Occupational Disability
	 	74 c)
	 	 	Plant Service Credit
	 	70 b)
	 	 	Proof of Disability
	 	74 a)
	 	 	Reporting Absences
	 	74 b)
	 	 	Sick Pay
	 	70 a)
	 	 	Withholding Benefit Payment
	 	76 a)
	 	 	 
	 	 
	ARTICLE 4	 	OVERTIME AND PREMIUM TIME REGULATIONS
	 	 
	 	 	Bypassing (Scheduling Overtime)
	 	22 a) thru c)
	 	 	Call-outs
	 	15 a)
	 	 	Holiday — (No Work No Pay)
	 	16 d) 4)
	 	 	Holiday Pay
	 	16 a) thru d)
	 	 	Holidays
	 	16 a)
	 	 	Maintenance Overtime
	 	23 a) thru f)
	 	 	Overtime Equalization
	 	18 a)
	 	 	Overtime Meals
	 	19 a) thru c)
	 	 	Overtime Premium
	 	14 a) thru d)
	 	 	Shift Differential
	 	20 a)
	 	 	Transportation Due To Overtime
	 	21 a)

ii

 

ALPHABETICAL INDEX

	 	 	 	 	 
	 	 	 	 	PARAGRAPH
	ARTICLE 12	 	PAY DAY
	 	 
	 	 	Pay Day
	 	43 a)
	 	 	Pay Errors Less or More than 8 Hours
	 	43 d)
	 	 	Paychecks Direct Deposit
	 	43 b)
	 	 	 
	 	 
	ARTICLE 13	 	PHYSICAL EXAMINATIONS
	 	 
	 	 	Employees Physically Unfit to Perform in Assigned
Classification
	 	44 c)
	 	 	New Hire Physicals
	 	44 a)
	 	 	Periodic Examinations of Employees
	 	44 b)
	 	 	X-rays
	 	44 e)
	 	 	 
	 	 
	ARTICLE 24	 	PRODUCTIVITY STATEMENT
	 	64 a) thru d)
	 	 	 
	 	 
	ARTICLE 18	 	REPLACEMENT OF CLOTHING
	 	 
	 	 	Clothes Damaged
	 	53 a)
	 	 	 
	 	 
	ARTICLE 21	 	SANITATION AND SAFETY
	 	 
	 	 	Clip-On Glasses
	 	60 f)
	 	 	Colored Safety Glasses — Operating Engineers
	 	60 f)
	 	 	Commercial or Chauffeur’s License — Operating Engineers
	 	59 a)
	 	 	Eye Exam Payment
	 	60 b)
	 	 	Non-Prescription Safety Sunglasses
	 	60 c)
	 	 	Postponing Job for Safety Reasons
	 	59 b)
	 	 	Prescription Glasses for Welders
	 	60 e)
	 	 	Prescription Safety Glasses
	 	60 a)
	 	 	Safety Shoes
	 	61 a)
	 	 	 
	 	 
	ARTICLE 6	 	SENIORITY
	 	 
	 	 	Bidding — Bidding Rules
	 	33 c)
	 	 	Bidding- No Qualified Bidders
	 	33 f)
	 	 	Bidding- Selection of Job Posting Bidders
	 	33 b)
	 	 	Grievances — Seniority
	 	37 a)
	 	 	Job Bidding
	 	33 a)
	 	 	Job Posting
	 	33 a) 1)
	 	 	Layoffs
	 	35 a) thru e)
	 	 	Rehiring
	 	36 a) thru b)
	 	 	Seniority — Four Types
	 	25 b)
	 	 	Seniority — Promotions
	 	32 a) & b)
	 	 	Seniority (Military Service)
	 	28 d)
	 	 	Seniority (Probationary Period)
	 	26 a) & 28 a)
	 	 	Seniority (Promoted to Supervision —Permanent or
Temporary)
	 	28 b) & c)
	 	 	Seniority Consolidation of Departments
	 	31 a)
	 	 	Seniority Definition of Group. Dept., & Maintenance
	 	25 c)
	 	 	Seniority Draw
	 	26 c)
	 	 	Seniority for Straight Day Employment
	 	26 b)
	 	 	Seniority is Equal
	 	26 d)
	 	 	Seniority List
	 	27 a)
	 	 	Seniority Lost
	 	29 a)
	 	 	Seniority Unbroken
	 	30 a)

iii

 

ALPHABETICAL INDEX

	 	 	 	 	 
	 	 	 	 	PARAGRAPH
	 	 	Transfers — General Mechanic
	 	34 c)
	 	 	Transfers — Operating Unit Reduced Operation or Shut Down

	 	34 b)
	 	 	Transfers of Surplus Group 1 employees
	 	34 a)
	 	 	 
	 	 
	ARTICLE 9	 	STAFFING OF NEW UNITS
	 	40
	 	 	 
	 	 
	ARTICLE 10	 	STEWARDS
	 	 
	 	 	Department Designation
	 	41 a)
	 	 	Steward (Benefits)
	 	41 e)
	 	 	Steward (Disciplinary Action)
	 	41 d)
	 	 	 
	 	 
	ARTICLE 26	 	STRIKES AND LOCKOUTS
	 	66 a) thru e)
	 	 	 
	 	 
	ARTICLE 7	 	SUPERVISORS DOING HOURLY WORK
	 	38 a) & b)
	 	 	 
	 	 
	ARTICLE 15	 	UNION REPRESENTATIVES
	 	46 a)
	 	 	 
	 	 
	ARTICLE 2	 	UNION SECURITY
	 	 
	 	 	Dues Check Off
	 	6 a)
	 	 	Dues Check Off Cancellation
	 	7 a)  & 8 a)
	 	 	 
	 	thru c)
	 	 	Dues Payment to Signatory Unions
	 	9 a) & b)
	 	 	 
	 	 
	ARTICLE 5	 	VACATION
	 	 
	 	 	Bank Days — Vacation
	 	24 k)
	 	 	Choice Designation — Vacation
	 	24 j)
	 	 	Credit Accumulation
	 	24 b)
	 	 	Hold Over — Vacation
	 	24 o) thru q)
	 	 	Military Service — Vacation
	 	24 r)
	 	 	Seniority/Preference — Vacation
	 	24 i)
	 	 	Sick Leave — Vacation
	 	24 s)
	 	 	Vacation (Dismissal or Voluntary Separation)
	 	24 t)
	 	 	Vacation (Resigns Without Notice Or Discharged for Cause)
	 	24 u)
	 	 	Vacation Accrual Year Cutoff
	 	24 z)
	 	 	Vacation Back-to-Back
	 	24 y)
	 	 	Vacation Falls on Holiday
	 	24 v) thur w)
	 	 	Vacation Pay — Computed
	 	24 g)
	 	 	Vacation Period
	 	24 h)
	 	 	Vacation Splits
	 	24 l)
	 	 	Vacation Transfers Between Groups or Crafts
	 	24 x)
	 	 	Vacations 5, 10, 20 & 30
	 	24 c) thru f)
	 	 	Vacations less than 5 years & probationary period)
	 	24 a)
	 	 	 
	 	 
	ARTICLE 31	 	WORK ASSIGNMENTS
	 	79 a) thru b)
	 	 	 
	 	 
	ARTICLE 8	 	WORK CLASSIFICATIONS
	 	39 a)

iv

 

ALPHABETICAL INDEX

	 	 	 	 	 	 	 
	 	 	 	 	PAGE NO.
	EXHIBIT A

	 	12 HOUR SHIFT AGREEMENT
	 	43 thru 58

	 

	 	     Day Jobs
	 	 	44	 
	 

	 	     Extra Operators
	 	 	44	 
	 

	 	     Wages
	 	 	44	 
	 

	 	     Employee Benefit Plans, SIP, Pension, Life Insurance and Disability
	 	 	45	 
	 

	 	     Overtime
	 	45 thru 47

	 

	 	     Mandatory Overtime Procedure
	 	 	47	 
	 

	 	     Charging of Overtime
	 	 	47	 
	 

	 	     Hours of Work
	 	 	47	 
	 

	 	     Overtime and Holidays
	 	48 thru 49

	 

	 	     Holiday and Holiday Pay
	 	 	48	 
	 

	 	     Shift Differential
	 	 	49	 
	 

	 	     Vacation
	 	50 & 51
	 

	 	     Seniority
	 	 	51	 
	 

	 	     Jury Service
	 	 	51	 
	 

	 	     Funeral Leave
	 	 	51	 
	 

	 	     Occupational & Non-Occupational Accident and Sickness Plan
	 	 	52	 
	 

	 	     Wage Adjustment
	 	52 thru 57

	 

	 	     Interpretation of Attachment E
	 	 	58	 
	 
	 	 	 	 	 	 
	EXHIBIT B

	 	WAGE RATES
	 	 	59	 
	 
	 	 	 	 	 	 
	EXHIBIT C

	 	EMPLOYEE BENEFITS
	 	61-63
	 
	 	 	 	 	 	 
	 

	 	NO JURISDICTION SUPPORTING INFORMATION
	 	 	64	 

v

 

ARTICLES OF AGREEMENT

between

STERLING CHEMICALS, INC.

ITS SUCCESSORS AND ASSIGNS

and

THE TEXAS CITY, TEXAS METAL

TRADES COUNCIL, AFL-CIO

of TEXAS CITY, TEXAS

	1	 	This agreement is made between Sterling Chemicals, Inc., its
successors and assigns, authorized to do business in Texas,
hereinafter referred to as the COMPANY, and the Texas City, Texas
Metal Trades Council, AFL-CIO, of Galveston County, Texas, hereinafter
referred to as the UNION. It is agreed by the following unions
signatory to this Agreement that said Council is their authorized
representative for the purpose of negotiating and administering this
Agreement and for the purpose of modifying, amending, or waiving any
of the provisions of this Agreement:

Electrical Workers Local No. 527

Operating Engineers No. 564

International Association of Machinists No. 6

BASIC PRINCIPLES

	2	 	The COMPANY and the UNION have a common and sympathetic interest in
the progress of industry. Therefore, a working system and harmonious
relations are necessary to improve the relationship between the
COMPANY and the UNION, and the Public. Progress in industry demands a
mutuality of confidence between the COMPANY and the UNION. All will
benefit by a continuous peace and by adjusting any differences by
rational, common sense methods. The purpose of this Agreement is to
establish harmonious relations for the advancement of the mutual
interest of the parties in continuing and improving the manufacture
and production of products at said Texas City plant. The COMPANY and
UNION agree that they will not discriminate in any manner against any
employee because of race, color, religion, age, sex, national origin,
disability or veteran status. It is the understanding of the parties
to this agreement that any reference in said agreement to the
masculine gender is understood to also include those employees of the
feminine gender. Now, therefore, in consideration of the mutual
promises and agreements herein contained, the parties hereto agree as
follows:

RECOGNITION

	3	 	The COMPANY hereby recognizes the Texas City, Texas Metal Trades
Council as the exclusive bargaining agency for all production and
maintenance employees, but excluding supervisory, technical, clerical,
plant protection employees with respect to rates of pay, wages, hours
of work, and other conditions of employment. Supervisory employees,
in the Production and Maintenance Departments, are those who are above
the classification listed in Exhibit B, a part of this contract.

1

 

SCOPE OF AGREEMENT

	4	 	This Agreement constitutes the sole and entire Agreement between the
parties. It supersedes all prior Agreements, oral or written, and
expresses all obligations of or restrictions imposed on the respective
parties during its term. The waiver of any breach, term, or condition
herein by Sterling shall not constitute a precedent for future waiver
of any breach, term, or condition.

ARTICLE 1

MANAGEMENT RIGHTS

	5	a) 	Except as expressly modified by a specific provision of this
Agreement, all the authority, rights, and powers which the COMPANY had
prior to the signing of this Agreement are retained by the COMPANY and
remain exclusively and without limitation the rights of management.
Only express modifications contained in specific provisions of this
Agreement constitute limitations upon such authority, rights, and
powers.

	 	b)	 	The Union recognizes that the Employer has the right, on its own
initiative, to perform any function of management at any time, so long
as it does not violate any express provision of this Agreement.
	 
	 	c)	 	The following acts are functions of management:

	 	1)	 	Those acts which are not within the area of collective bargaining
as required by the National Labor Relations Act;
	 
	 	2)	 	Those acts which are usually exercised by other employers; and
	 
	 	3)	 	Those acts which management should exercise in order to properly
manage the business.

ARTICLE 2

UNION SECURITY

	6	 	Section 1

	 	a)	 	The COMPANY agrees to deduct a single monthly union dues amount for each
signatory union except for IBEW dues which will be deducted at one of two monthly
rates (2 tier deductions). Deductions will be made from the pay of each employee
that authorizes the deduction on official forms agreed to by the COMPANY and the
UNION. Deductions will be taken from the employee’s first paycheck each month after
the Payroll Department receives the original signed form from the employee. Once
started, the single signatory union monthly dues deduction amount may be changed
one time per year upon notification from the UNION without written consent of the
employee.
	 
	 	b)	 	The COMPANY agrees to notify the UNION of all newly employed personnel

2

 

	 	 	 	covered
by this Agreement. Such notice shall be in writing and shall state the name of the
employee, their classification and their date of hire.

	7	 	Section 2

	 	a)	 	Check-off authorizations now in effect shall become irrevocable in accordance
with the terms of Section 3 of this article unless written notice of revocation
from the employee is received by the COMPANY within the fifteen (15) day period
prior to the expiration date of this Agreement. A notice of this provision will be
posted by the COMPANY and the UNION.

	8	 	Section 3

	 	a)	 	Check-off authorizations shall be irrevocable for the period of one (1) year, or
until the termination of the Agreement, whichever occurs sooner. It is further
agreed that this authorization shall be automatically renewed, and shall be
irrevocable for successive periods of one (1) year each unless written notice by
registered mail of revocation from the employee is received by the COMPANY not more
than twenty (20) days nor less than ten (10) days prior to the expiration of each
period of one (1) year.
	 
	 	b)	 	Employees withdrawing from a signatory union may cancel their dues deduction
authorization at any time by serving notice by letter to the COMPANY canceling such
authorization along with letters of approval from the UNION and the signatory union
to which the dues and initiation fees were to be forwarded.
	 
	 	c)	 	Employees who, as a result of a change in job assignment, transfer from one
signatory union to another signatory union, may cancel any prior dues deduction
authorization by submitting to the COMPANY a new dues deduction authorization.
Such new authorization must be transmitted through the signatory union or its
designated representative.

	9	 	Section 4

	 	a)	 	Money deducted from paychecks as authorized herein for employees bargained for
by the UNION will be forwarded to each signatory union. The UNION will furnish the
COMPANY a list of signatory unions, their mailing address and the regular monthly
union dues of each union. These checks will be forwarded no later than the
20th day of the month in which the money is deducted, along with a
summary sheet in duplicate showing the name of each employee from whose paycheck
dues were deducted and the amount deducted.
	 
	 	b)	 	In the event a signatory union ceases to be affiliated with UNION for any
reason, and UNION officially notifies COMPANY of same, the authorization of
employees for deductions of dues and initiation fees for such Union whose
affiliation with UNION has
	 
	 	 	 	ceased, shall be immediately and automatically revoked and any monies deducted from
checks of said employees and held by the COMPANY will be refunded to the employee
from whose check the deduction was made.

3

 

	10	 	Section 5

	 	a)	 	In the event applicable laws governing union security are liberalized to the
extent that they allow a Maintenance of Membership clause, the COMPANY agrees to
meet with the UNION at that time and agree on the terms of a Maintenance of
Membership clause.

ARTICLE 3

HOURS OF WORK

	11	 	Section 1 — All Employees in Seniority Groups 1, 2 and 4

	 	a)	 	The period of time from 6:30 a.m. to 6:30 a.m. the following day shall
constitute a payroll day for all employees in the seniority groups above. The
period of time composed of seven (7) consecutive payroll days, extending from 6:30
a.m. Monday to 6:30 a.m. the following Monday, shall constitute a regular work week
at this plant for all employees in the seniority groups above.
	 
	 	b)	 	The hours of work shall be as follows:

	 	1)	 	Day Workers — Eight (8) consecutive hours of work per day, exclusive of a thirty
(30) minute lunch period, shall constitute a day’s work. Hours of work shall be
from 6:30 a.m. to 3:00 p.m. Employees will begin their unpaid thirty (30) minute
lunch period during a one and a half (1.5) hour window beginning four (4) hours
after the start of the shift. If the lunch break starts after the window for work
related reasons, the employee will be paid the appropriate overtime rate for the
lunch period.
	 
	 	2)	 	Eight Hour Shift Workers — Eight (8) consecutive hours of work per day shall
constitute a day’s work. Five (5) eight (8) hour shifts in any one workweek shall
constitute a week’s work. Shifts shall normally be from 6:30 a.m. to 2:30 p.m.,
2:30 p.m. to 10:30 p.m., and 10:30 p.m. to 6:30 a.m. Shift workers will be
permitted sufficient time to eat during their shift without loss of pay for such
period.
	 
	 	3)	 	12-Hour Shift Workers - Terms of the 12-Hour Shift Agreement are included in
Exhibit A of this Agreement.

	12	 	Section 2 — All Employees in the Maintenance Crafts Seniority

	 	a)	 	The period of time from 7:00 a.m. to 7:00 a.m. the following day shall
constitute a payroll day for all employees in the seniority groups above.
	 
	 	b)	 	The period of time composed of seven (7) consecutive payroll days, extending from
7:00 a.m. Monday to 7:00 a.m. the following Monday, shall constitute a regular work
week at this plant for all employees in the seniority groups above.

4

 

	 	c)	 	The hours of work shall be as follows:

	 	1)	 	Day Workers – All employees in the Maintenance Crafts Seniority – Eight (8)
consecutive hours of work per day, exclusive of a thirty (30) minute lunch period,
shall constitute a day’s work. Hours of work shall be from 7:00 a.m. to 3:30 p.m.
Employees will begin their unpaid thirty (30) minute lunch period during a one and
a half (1.5) hour window beginning four (4) hours after the start of the shift. If
the lunch break starts after the window for work related reasons, the employee will
be paid the appropriate overtime rate for the lunch period.
	 
	 	2)	 	Shift Workers — Maintenance employees assigned to shifts will be permitted
sufficient time to eat during their shift work without loss of pay for such period.

	13	 	Section 3

	 	a)	 	Employees may be scheduled as shift workers if and when required in the
operation of the plant, and when so working, shall be governed by the above
conditions relating to a shift worker.
	 
	 	b)	 	Straight day Maintenance employees temporarily assigned to shift work, when
being reassigned to straight days, will normally be reassigned at the beginning of
the work week.
	 
	 	c)	 	Special shift schedules and start/stop times to support non-routine operations,
shutdowns, turnarounds and emergency situations will be determined by management
after consultation with the UNION. Also after consultation with the UNION,
Management may implement modified overtime regulations for such special schedules
to allow for greater than 8 hours of straight time per day not subject to the OT
provisions of Article 4, Section 1.) a). Under such special schedules, employees
will be paid the applicable overtime rate for all hours worked after 40 straight
time hours in a week, as well as all eligible hours worked in a week outside of the
pre-determined special schedule, in accordance with other contractual overtime
provisions. For example: Employees put on a special schedule of 4-10’s, Monday
through Thursday, could receive overtime rates only outside of the four
pre-scheduled 10-hour blocks.
	 
	 	d)	 	The normal workweek shall consist of forty (40) hours of work and the normal
workday of eight (8) hours of work providing work is available.
	 
	 	e)	 	In the event an employee is inadvertently scheduled for less than the normal
workweek, the employee will be allowed to make up the difference after reporting
the discrepancy to supervision. The employee will be allowed to make up such
difference only to the point where their earnings equal the straight time earnings
for a normal workweek.
	 
	 	f)	 	An employee may be excused without pay for a period up to three (3) hours at the
beginning or end of the day shift, Monday through Friday (except holidays falling

5

 

	 	 	 	Monday through Friday) for the purpose of a doctor or dentist appointment. Such
excuse will be granted if it is scheduled with enough advance notice so that proper
relief can be scheduled and the absence does not impair plant operations.

	 	g)	 	The term “shift work” shall mean any schedule that has built into it a regular,
repeating pattern of variance in the scheduled days of rest, the core hours of
work, or both.
	 
	 	h)	 	Hours and days of work for Materials Handling (Group 4) may be modified at
Management’s discretion based on business needs after consultation with the UNION.
This may include changes to the days worked in a week and/or the number of hours
scheduled per day/shift, however, no employee will be scheduled for fewer than an
average of 40 hours per week. Management will attempt to minimize disruptions to
employees’ lives due to such warranted changes in start and stop times.

ARTICLE 4

OVERTIME AND PREMIUM TIME REGULATIONS

	14	 	Section 1

	 	a)	 	Except as modified by Article 3, section 3, c), an employee shall be paid at the
rate of one and one-half (1-1/2) times his regular rate for all hours worked by him
in excess of eight (8) in any one (1) day consisting of the twenty-four (24) hour
period beginning when an employee begins to work or report for work in accordance
with instructions, which ever is earlier.
	 
	 	b)	 	An employee shall be paid at the rate of one and one-half (1-1/2) times his
regular rate for all hours worked by him in excess of forty (40) in any workweek.
	 
	 	c)	 	Time and one-half (1-1/2) shall be paid for the first 8-hour period worked
following a change of schedule unless the employee is given at least thirty-six
(36) hours notice in advance of the beginning of his newly assigned hours. For the
purpose of computing weekly overtime, hours for which premium pay is payable under
the provisions of this paragraph will not be counted in the total hours worked by
an employee in a given workweek.
	 
	 	d)	 	When an employee works a minimum of 8 hours on all their scheduled days of rest
within a payroll week, they will be paid for all hours worked on the last day of
rest at the rate of two (2) times their base rate of pay.

	15	 	Section 2 — Call-outs

	 	a)	 	An Employee called-out for work with less than 4 hours notice outside their
regular schedule shall be paid one and one half (1-1/2) times their straight time
rate for the actual time worked, or five hours at their straight time rate,
whichever is greater.
	 
	 	b)	 	The COMPANY shall have the right to institute an on-call system for calling out
and contacting employees.

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	16	 	Section 3 — Holidays

	 	a)	 	Two and one-half times will be paid for work performed on the following
holidays: New Year’s Day, President’s Birthday, Good Friday, Easter Sunday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Friday after
Thanksgiving Day, Christmas Eve and Christmas Day.
	 
	 	b)	 	For day workers: If any of these holidays fall on a Sunday, the Monday
immediately following shall be recognized as the holiday. If holidays fall on
Saturday, they will be observed on the preceding Friday. The exception shall be
Christmas Eve, which shall be observed on the last working day before Christmas.
	 
	 	c)	 	For shift workers: All holidays listed above will be recognized on the calendar
day on which it falls. For the purpose of determining pay for an employee who
works on a day observed as a holiday which falls on one of the employee’s scheduled
days of rest, “regular scheduled hours of work” for that day shall mean the same
hours the employee was assigned to work on the last regularly scheduled day of work
immediately prior to the holiday. Payment will be made according to (d) 1 below.
	 
	 	d)	 	Employees will be paid for the holidays listed above not worked an amount
equivalent to eight (8) times the employee’s straight-time hourly rate, subject to
the following conditions:

	 	1)	 	Such pay shall be computed on the basis of payroll day and not calendar day.
	 
	 	2)	 	To be eligible for such pay, an employee must report for work on their last
regular scheduled working day immediately preceding the holiday and their first
regular scheduled working day immediately following this holiday.
	 
	 	3)	 	For purposes of determining eligibility for holiday pay only under this section,
employees absent either the day before, the day after, or both days, because of
vacation, death in the immediate family, occupational injury or illness while under
a doctor’s care, jury duty or excused absence will be considered as having worked
on such day or days and will be entitled to holiday pay provided they have complied
with the other requirements of Article 4, Section 3. Immediate family will be
interpreted to mean those members of the family covered under Article 25 — Funeral
Leave.
	 
	 	4)	 	An employee who is instructed to work on a holiday but fails to report will
receive no pay for the holiday.
	 
	 	5)	 	Payment for holidays not worked shall not apply to employees on approved leave
of absence, off because of sickness or occupational injury (unless under a doctor’s
care), or layoff.

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	17	 	Section 4

	 	a)	 	In the event any hours worked fall within two or more classifications listed
above, only one application can be made.

	18	 	Section 5

	 	a)	 	Employees shall not be laid off during regular working hours to deprive them of
any time, which they have gained by working overtime. At one (1) week intervals,
the COMPANY will make every reasonable effort to post overtime equalization lists
in each zone or departments and to distribute such overtime work as equally as
practicable.

	19	 	Section 6 — Overtime Meals

	 	a)	 	If an employee works more than two hours immediately following his scheduled
working period, he shall be provided a meal. The employee will be afforded an
opportunity on COMPANY time to eat meals so supplied at the time he is entitled to
same, or as soon thereafter as the condition of the work permits.
	 
	 	b)	 	Any employee called out (with less than four (4) hours’ notice), will be
supplied with a suitable meal at the COMPANY’S expense after four (4) hours of
work. If the employee continues working on overtime, outside his regular or
scheduled shift, he will be furnished a meal every four (4) hours. If the employee
works into his scheduled shift, one additional mid-shift meal will be furnished
from the COMPANY’S frozen food supply if the employee was/is otherwise unable to
provide his own lunch due to the call-out.
	 
	 	c)	 	Employees scheduled on overtime, other than provided in (a) or (b) above, will
provide their own meals.

	20	 	Section 7 — Shift Differential

	 	a)	 	Shift differential shall be added to the wage rate of the employees required to
work during the shift indicated in the following schedule for each hour worked
during such periods:

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	 	1)	 	Eight Hour Shift Workers:

Days No differential

Evenings 50¢ differential

Graveyards $1.00 differential

	 	2)	 	Day Workers

Days No differential

Evenings 50¢ differential

Graveyards $1.00 differential

	 	3)	 	For shifts longer than 8 hours in duration:

Days No differential

Nights $1.00 differential

	21	 	Section 8 — Transportation

	 	a)	 	The COMPANY will provide rides home for employees who are without transportation
and are held over on overtime past their regular scheduled shift. The COMPANY
further agrees that employees not held over but left without a ride home due to
their driver being held over will be provided a ride with the understanding that
only one ride to one destination will be provided. Should evidence of abuse or
fraud arise, the COMPANY reserves the right to discontinue the practice of
providing rides to those passengers not held over.

	22	 	Section 9 — Bypassing

	 	a)	 	When an employee has worked sixteen (16) continuous hours and up to or within
the employee’s regular shift, the employee will be allowed to go home and will be
paid at the straight-time for the remaining hours of the employee’s regular shift,
or the employee may be bypassed for overtime if it will require that he be sent
home with pay for his regularly scheduled shift. This decision will be made by
supervision.
	 
	 	b)	 	The COMPANY agrees that in scheduling overtime, no employee shall be bypassed in
the assignment of overtime to work solely to avoid payment of double-time, except
as referenced above.
	 
	 	c)	 	The “rain-out” clause in the contractor’s contract or straight-time work on
Saturday, Sunday, or holidays as may be provided under the contractor’s contract,
will not be used to avoid Sterling employee’s overtime.

	23	 	Section 10 – Maintenance Overtime

	 	 	 	a.) Maintenance overtime will normally be scheduled and assigned from within the
zone group.

	 	 	 	b.) If unable to fill the overtime need, volunteer employees from other zones may
be offered the overtime. If unable to fill the overtime need, employees may be
conscripted from the zone first, and then from the rest of the
plant.

	 	 	 	c.) For job continuity, jobs started by contractor personnel may, at the COMPANY’S
discretion, be worked to completion by the contractor. Also for job continuity

9

 

	 	 	 	purposes, Management may, at its discretion, decide to hold over the Sterling
craftsmen who started a job, in order to complete it on overtime.
	 
	 	d.) 	 	The COMPANY shall have the right to institute an on-call system for contacting
employees for overtime.
	 
	 	e.) 	 	Shutdown/Turnarounds — The COMPANY reserves the right to contract
shutdown/turnaround work. Employees from the affected zone group may volunteer or
be conscripted to work parts of the shutdown.
	 
	 	f.) 	 	 Management shall have the right to set start and end times for shutdown/startup
related work.

ARTICLE 5

VACATION

	24	 	a) Upon being hired, new employees are credited with the following amount of
vacation to be used for the remainder of that calendar year:

	 	 	 
	Date Hired 	 	First Calendar Year Vacation
	January 2 – March 31
	 	        72 hours
	April 1 – June 30
	 	        48 hours
	July 1 – September 30
	 	        24 hours
	October 1 – December 31
	 	0

New employees who leave the company for any reason during their first calendar year
are not paid for the above first year vacation. Employees with less than 5 years of
service will then be credited with eighty (80) hours of vacation on January 1 of
their first full calendar year and each year thereafter at a credited rate of six
and two-thirds (6 2/3) hours per full month of service for a maximum of eighty
(80).

	 	b)	 	Vacation credits accumulated after January 1st of the current year
shall not be taken until January 1st of the following year. Vacation
must be taken in full shift increments.
	 
	 	c)	 	Each employee who completes five (5) or more years of continuous service will be
granted one-hundred twenty (120) hours of vacation per year. Such vacation may be
taken at any time during the vacation year in which the employee reaches the fifth
(5th) year of continuous service. After receiving a first vacation of
one-hundred twenty (120) hours, the employee will accrue ten (10) hours vacation
per month of service or a maximum of one-hundred twenty (120) hours per year.
	 
	 	d)	 	Each employee who completes ten (10) or more years of continuous service will be
granted one-hundred sixty (160) hours of vacation per year. Such vacation may be
taken at any time during the vacation year in which the employee reaches the tenth
(10th) year of continuous service. After receiving a first vacation of
one hundred sixty (160) hours, the employee will accrue thirteen and one-third
(13-1/3) hours of vacation per month of service or a maximum of one hundred sixty
(160) hours per year.

10

 

	e)	 	Each employee who completes twenty (20) or more years of continuous service will
be granted two-hundred (200) hours of vacation per year. Such vacation may be
taken at any time during the vacation year in which the employee reaches the
twentieth (20th) year of continuous service. After receiving a first
vacation of two-hundred (200) hours, the employee will accrue sixteen and
two-thirds (16-2/3) hours of vacation per month of service or a maximum of
two-hundred (200) hours per year.
	 
	f)	 	Each employee who completes thirty (30) or more years of continuous service will
be granted two-hundred forty (240) hours of vacation per year. Such vacation may
be taken at any time during the vacation year in which the employee reaches the
thirtieth (30th) year of continuous service. After receiving a first
vacation of two-hundred forty (240) hours, the employee will accrue twenty (20)
hours of vacation per month of service or a maximum of two-hundred forty (240)
hours per year.
	 
	g)	 	The vacation pay for employees entitled to vacation is computed on the basis of
rate of pay per hour at the time of vacation at straight-time.
	 
	h)	 	Vacation period shall be from January 1 through December 31 each year.
	 
	i)	 	The employee with the greatest bargaining unit seniority within the group or
craft, wherever possible, shall be allowed preference as to time of vacation within
each department and within each maintenance zone. When an employee elects to split
their vacation, then they shall be allowed seniority preference only on one (1)
portion of the split vacation until all employees have exercised their seniority
preference.
	 
	j)	 	Prior to January 1st, employees shall designate their choices of
dates for their vacations and a vacation schedule for the year will be made up in
accordance with other provisions of this article.
	 
	k)	 	An employee may place up to eighty (80) hours (ten days) of their vacation in a
vacation bank prior to January 1 with such days to be taken at any time during the
vacation year on a first-come basis in an individual operating unit, in a
maintenance craft within a zone, or in any other department. Five (5) bank days
may be taken with one (1) hour’s notice. Twenty-two (22) hours’ notice for the
other five (5) bank days will be required except in cases of emergencies. All
normal requests for bank days must be made to the employee’s supervisor. Emergency
requests will be subject to approval by the department head or designee. Bank days
will be granted only when, in the judgment of the COMPANY, such days do not
conflict or impair plant operations. Bank days will be taken in any combination of
whole days without restriction by vacation splits. All bank days must be taken
during the vacation year and shall not be cumulative. When, in the opinion of the
COMPANY, it appears that vacation bank days are accumulating in a group, department
or craft and will create a problem near the end of the vacation year, employees
will be requested to schedule their remaining bank days in order not to conflict
with or impair plant operations.

11

 

	l)	 	Vacation may be split into as many periods as the employee has weeks of
vacation. In calculating vacation splits, the bank days will constitute one split.
Employees with ten (10) or more years of service will be eligible for one (1)
additional split. Vacation schedules established by January 1st will
not be altered after this date to give preference to the senior employee.
Employees shall be permitted to begin or end their vacations on a regularly
scheduled day off.
	 
	m)	 	Vacations shall be given employees on such dates or as near as may be
practicable when, in the judgment of the COMPANY, such dates do not conflict with
or impair plant operations.
	 
	n)	 	Vacation during any vacation period must be taken during the vacation period and
shall not be cumulative. Requests for exceptions to this requirement will be
considered by management on a case by case basis.
	 
	o)	 	 For the purpose of taking extended vacation, employees with five (5) or more
years of service will be permitted, one (1) time during the life of this contract
to elect to hold over forty (40) hours of vacation from one (1) vacation period and
take it during the next vacation period in conjunction with the full vacation due
that vacation period. Employees desiring to exercise this option will so advise
the COMPANY during the vacation-scheduling period in the year in which they desire
to hold over the forty (40) hours.
	 
	p)	 	Employees with ten (10) to nineteen (19) years of service have the option to
hold over forty (40) hours of vacation from one (l) vacation period and take it
during the next vacation period. Employees desiring to exercise this option must
notify the COMPANY by November 1st prior to the end of the vacation year
in which it was originally expected to be taken. This request does not increase
the number of bank days.
	 
	q)	 	An employee who is “Combo 80” (minimum age 55 with 80 points) or who has at
least 20 years of COMPANY service, may carry over from one vacation period to the
next up to eighty (80) hours of vacation in forty (40) hour increments. A maximum
of two hundred forty (240) hours may be carried over in this manner.
	 
	r)	 	Any employee leaving the service of the COMPANY entering State or Federal
military service shall so notify the COMPANY, and shall be paid the vacation
credits earned up to the time of induction. Such employee shall not be taken off
the payroll until actually inducted in military service, State or Federal.
	 
	s)	 	In calculating time for vacation credits, no vacation will accrue after the
sixth month of sick leave or otherwise while not actively at work.
	 
	t)	 	An employee who is laid off or retires from the COMPANY, or an employee with at
least fifteen (15) years of service who voluntarily resigns from the COMPANY with
two weeks notice, will receive pay for vacation earned during the previous year but
not taken and pay for vacation credits accumulated toward the next vacation year as
prorated through the last full month of their employment.

12

 

	 	u)	 	An employee with less than fifteen (15) years of service who resigns or is
discharged from the COMPANY will receive only pay for vacation earned during the
previous year but not taken.
	 
	 	v)	 	When a holiday is observed on an employee’s scheduled vacation day, they will
have the option of an extra day vacation or an extra eight (8) hours’ pay at their
regular straight-time rate.
	 
	 	w)	 	When a day of vacation falls on a holiday and the employee elects to take an
extra day of vacation, they may elect to take it the last working day immediately
prior to their scheduled vacation.
	 
	 	x)	 	When an employee transfers from one craft or group to another, the employee will
carry with them their vacation as scheduled for that year. The transfer of this
vacation schedule will not interfere with the rights of any other employee to their
vacation as previously scheduled.
	 
	 	y)	 	Back-to-back vacations from one vacation year to the next will be allowed under
the following conditions:

	 	1)	 	The period of vacation must be for six or more weeks.
	 
	 	2)	 	The employees who desire to schedule vacation in a continuous period beginning
in one vacation year and ending in another vacation year must schedule such
vacation prior to January 1 of the first vacation year.
	 
	 	3)	 	If, on the basis of seniority, they will be allowed to schedule their vacation
immediately prior to the end of the vacation year, then they shall be granted
vacation preference for the continuous portion of the vacation, which ends the next
vacation year.

	 	z)	 	For employees hired before January 1, 1996, vacation year allotment will be
based on years of service accrued by March 31 following the end of the vacation
year. For all other employees, vacation year allotment will be based on years of
service accrued by December 31 of the vacation year.

ARTICLE 6

SENIORITY

	25	 	Section 1 — Definitions

	 	a)	 	By the term “seniority” is meant the status of the employee’s length of service
as such.
	 
	 	b)	 	Four types of seniority shall be recognized:

	 	1)	 	Group Seniority. This shall consist of the seniority accumulated by an employee

13

 

	 	 	 	working in any of the groups listed below.
	 
	 	2)	 	Department Seniority. For matters directly affecting any of the departments in
Group 1, employees in their respective operating departments shall be listed on the
Seniority List by order of Group 1 seniority within their respective department.
	 
	 	3)	 	Maintenance Craft Seniority. This shall consist of the seniority accumulated by
an employee in the particular maintenance craft in which the employee is working.
	 
	 	4)	 	Bargaining Unit Seniority. This shall consist of seniority accumulated by an
employee in any of the groups or crafts listed below.

	 	c)	 	For purposes of paragraph (b) above, group, department, and maintenance craft
seniority shall cover the following:

	 	1)	 	Group Seniority

	 	i)	 	Group 1 - All hourly employees in the following operating departments and any
others which may be added and which are designated as operating departments by the
COMPANY: Styrene, Acetic/Plasticizers, and Utilities.
	 
	 	ii)	 	Group 2 - All hourly employees of the Laboratory.
	 
	 	iii)	 	Group 4 - All hourly employees of the Materials Handling Department.

	 	2)	 	Department Seniority

	 	i)	 	For matters directly affecting departments in Group 1, employees in the various
operating departments shall be listed on department seniority lists by Group 1
seniority within their respective departments. Any reference to departmental
seniority in other sections of the contract will refer to the Group 1 seniority of
employees within the department.

	 	3)	 	Maintenance Craft Seniority

	 	i)	 	All hourly employees in each of the maintenance crafts. The maintenance crafts
shall include, but shall not be limited to the following titles:

Instrument/Electrical

Machinists

14

 

	26	 	Section 2 — Commencement

	 	a)	 	All new employees shall be required to work a trial or probationary period of
one-hundred eighty (180) calendar days continuous service before the seniority
rules outlined herein shall apply to them, and after such period, the new
employee’s seniority shall be retroactive to the date they were employed.
	 
	 	b)	 	Straight-day employment shall be determined on the basis of senior qualified.
New employees will be required to go on shift within not more than ninety (90) days
after employment.
	 
	 	c)	 	When employees are hired into a group or craft on the same date, their order on
the seniority lists shall be determined by “lot”.
	 
	 	d)	 	In a situation where departmental seniority is equal, the group seniority shall
govern, and when group or craft seniority are equal, seniority on the first day
worked in the bargaining unit shall govern.

	27	 	Section 3 — Seniority Lists

	 	a)	 	The COMPANY agrees to compile and furnish the UNION a seniority list quarterly,
showing the seniority of each employee in bargaining unit, and the COMPANY further
agrees that it will add names and the seniority status of all employees to said
list after they have completed their probationary period and are considered regular
employees.

	28	 	Section 4 — When Seniority Does Not Apply or Is Not Affected

	 	a)	 	Seniority privileges shall not apply to probationary employees.
	 
	 	b)	 	The Seniority of an employee shall not be affected when they are promoted to a
supervisory classification unless they remain in that capacity for a period in
excess of one hundred thirty-five (135) calendar days after which time they shall
lose their seniority as a member of the bargaining unit.
	 
	 	c)	 	The seniority of an employee shall not be affected when they are promoted
temporarily to a supervisory classification unless they remain in that capacity for
a period in excess of one-hundred and eighty (180) working days in a calendar year,
after which time they shall lose their seniority as a member of the bargaining
unit.
	 
	 	d)	 	Employees, other than temporary employees, who are called into active military
service with any branch of the U. S. government, shall not lose their seniority
rights or their status with the COMPANY. Such employees, however, shall file an
application with the COMPANY for reinstatement, within ninety (90) days after they
have received an Honorable Discharge from such service and if their physical and
mental condition is satisfactory, such employee shall be reinstated to their former
position or one to which their seniority entitles them, unless the COMPANY’S
circumstances have so changed as to make it impossible or unreasonable to do so.

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	29	 	Section 5 — When Group, Department, Craft and Bargaining Unit Seniority is Lost

	 	a)	 	An employee under the following circumstances shall lose all seniority:

	 	1)	 	When the COMPANY discharges them.
	 
	 	2)	 	When they quit the service of the COMPANY of their own volition.
	 
	 	3)	 	When they are laid off for a period exceeding eighteen (18) months without being
recalled.
	 
	 	4)	 	When an employee overstays their leave of absence without notifying the COMPANY
and receiving an extension of time.

	30	 	Section 6 — When Group, Department, Craft, and Bargaining Unit Seniority is Not
Broken

	 	a)	 	Seniority of the employee shall not be broken because of: (1) layoffs (except as
provided in Section 5 a) 3) of this article); (2) authorized leaves of absence; (3)
absences on account of occupational or non-occupational sick leave not exceeding a
period of twelve (12) months; (4) any cessation of work at the COMPANY’S plant
which is beyond the control of the employee not exceeding a period of eighteen (18)
months.

	31	 	Section 7 — Consolidation of Departments

	 	a)	 	When two or more departments are consolidated, the employees of these
departments may claim seniority in the consolidated department, it being
understood, however, that no employee may claim a classification in the
consolidated department higher than the one occupied in the department in which the
employee was previously employed.

	32	 	Section 8 — Promotions

	 	a)	 	When a new vacancy or new job occurs in a department or craft, such vacancy or
new job shall be filled from employees within that department or craft. When skill
and ability are approximately equal, then the senior qualified employee shall fill
the vacancy. If departmental seniority is equal, group seniority shall govern.
	 
	 	b)	 	It is understood and agreed, however, that where skill and ability are
questioned, a senior employee may request the opportunity to fill such vacancy or
new job, in which event, the COMPANY agrees to consult with the UNION concerning
the matter. If it is determined that the request has merit, the employee will be
given a trial period of thirty (30) working days to prove to the satisfaction of
the COMPANY their skill and ability in such position.

16

 

	33	 	Section 9 — Job Bidding Procedure

	 	a)	 	When a permanent vacancy must be filled from outside the group or craft in which
the vacancy exists and no layoff exists for such group or craft, then the job will
be posted and filled in accordance with the following procedure:
	 
	 	1)	 	Job Posting — The job vacancy will be posted for seven (7) calendar days at each
of the main gates and on departmental bulletin boards within the plant.
	 
	 	2)	 	Job Bidding — Each employee who desires to bid for the posted job may do so by
going to the Human Resources Department and signing a job bidding form within the
seven (7) day period.

	 	i.) 	 	 Any employee who knows that they will be absent from the plant (for reasons
such as vacation, jury duty, etc.) may submit to the Human Resources Department a
pre-bid indicating those jobs they desire should a vacancy be posted during their
absence. The employee submitting a pre-bid will be considered for a vacancy only
if their pre-bid is received prior to the seven (7) day period outlined in the job
vacancy announcement. Each pre-bid shall be effective only for the duration of the
individual’s specific absence.

	 	b)	 	Selection — Posted vacancies will be filled by the qualified bidder with the
greatest bargaining unit seniority. Successful bidders will be transferred to
their new job within 120 calendar days following the date of notification of
successful bid unless the COMPANY demonstrates, subject to the grievance and
arbitration provisions of the contract, that to move said successful bidder would
create a situation where the employee’s job cannot be manned in a safe manner.

	 	1)	 	The successful bidder will enter the new job classification at the appropriate
rate as indicated on the job vacancy announcement.
	 
	 	2)	 	The provisions of Section 11 of this Article will apply to employees who are
transferred from one group or craft to another in accordance with the job bidding
procedure.

	 	c)	 	Bidding Rules

	 	1)	 	If the COMPANY determines that the senior employee bidding on a posted job is
not qualified, the employee may file a grievance contesting such determination at
Step 2 of the grievance procedure, which may, if not satisfactorily resolved, be
submitted to arbitration in accordance with the arbitration procedure as outlined
in Article 28. Nothing contained herein shall interfere with the filling of the
vacancy with another employee or with a new hire, pending settlement of a
grievance.
	 
	 	2)	 	Employees whose bids have been denied on the basis of qualifications will not be
considered again for transfer to the same group or craft until they have shown
proof that their qualifications now fit the requirements of the job.
	 
	 	3)	 	A successful bidder will not be eligible for another transfer until they have
reached the top rate of their classification and served an additional period of
time equal to the time required to reach the top rate.

17

 

	 	4)	 	A successful bidder who refuses to accept a tendered transfer will not be
reconsidered for any other transfer for a period of one (1) year after date of
refusal.

	 	d)	 	An employee who has been returned to their last previous group or craft for
inability to perform work of the new classification as provided in Section 11,
Article 6 of the Articles of Agreement will not be considered for any further
transfer for a period of one (1) year from the date of return to their last
previous group or craft.
	 
	 	e)	 	An employee shall be limited to one transfer to a group or craft having a lower
top rate or one transfer to group or craft having an equal top rate. Subsequent
lateral or downward transfer to another group or craft shall be approved only when
in the best interest of the employee and by mutual agreement of COMPANY and UNION.
	 
	 	f)	 	No Qualified Bidders — If none of the bidders are qualified for a posted job, or
if there are no bidders, the COMPANY shall have the right to fill the job as it
sees fit.
	 
	 	g)	 	Associate Operators – Associate operators will be selected based on criteria
determined at management discretion.

	34	 	Section 10 — Transfers

	 	a)	 	When a surplus of employees exists in any Group and/or department or unit for
any reason, the UNION and the COMPANY will meet and discuss a plan to transfer
employees to other groups and/or departments where openings exist in an effort to
prevent layoff.

	35	 	Section 11 — Layoffs

	 	a)	 	Layoffs in groups 2, 4 and maintenance crafts shall be in inverse order of
group, or craft seniority, depending on the need for employees in that particular
group or craft, it being understood that in any group or craft the top
classification will not be filled by an employee not having both skill and ability
and group or craft seniority. Layoffs in group 1 will be done in inverse order of
plant-wide group seniority, except that employees working in a unit constructed
after 05/01/07 may be bypassed for layoff during the first four (4) years of the
new unit’s operation.
	 
	 	b)	 	An employee transferred from one group or craft shall retain seniority in their
former group or craft but will not be allowed to exercise their seniority, nor
shall the COMPANY be allowed to transfer the employee back to their old group or
craft unless the employee is being laid off for reduction in force or because their
work performance has been such that the employee would be laid off for inability to
perform the work.
	 
	 	c)	 	Employees being laid off for reduction in force may exercise the retained
seniority in their old group or craft to forestall layoff provided that they meet
the current qualification requirements of their previous job.

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	 	d)	 	An employee being laid off for inability to perform the work prior to reaching
top pay in the classification in the group or craft to which they were transferred
will be considered to have accumulated seniority in their old group or craft up to
the time they were declared unable to perform such work and will be allowed to
exercise that seniority in their old group or craft to forestall layoff. An
employee transferring to a one rate job will be given a trial period of ninety (90)
days and, if unable to perform the work, will be considered to have accrued
seniority in their old group or craft during that period. They will be allowed to
exercise such seniority in order to forestall layoff.
	 
	 	e)	 	Discharge for cause or termination for any reason other than those referred to
above will not be reason for the employee to exercise their seniority rights in the
old group or craft.

	36	 	Section 12 — Rehiring

	 	a)	 	Rehiring shall be in inverse order of layoffs. Employees being recalled shall
be notified by registered letter, return receipt requested, mailed to the last
address on record in the COMPANY’S files. If the COMPANY does not receive a reply
to said letter from the employee, within ten (10) days from the date of its
delivery as shown on the return receipt, stating that they will return to work
within ten (10) days from said delivery date; or, if they fail to so return to work
although they have sent such a reply, the next eligible employee will be placed in
the vacancy.
	 
	 	b)	 	In special cases, an employee, when replying within ten (10) days to the
COMPANY’S notice requesting them to return to work, may be given an extension of
time by the COMPANY beyond the ten (10) day limit specified above. Failure to so
reply or failure to so report to work will abrogate all rehiring and seniority
rights on the part of said employee. In case of an emergency, the COMPANY may
temporarily fill any vacancy without waiting for any period of time to expire.
After the emergency has expired, such vacancies will be filled according to the
regular procedure.
	 
	 	c)	 	Where the period of recall is in the best judgment of the COMPANY to be less
than ninety (90) calendar days, the recalled employees may decline recall and not
lose
subsequent recall rights.
	 
	 	d)	 	If the period of recall is less than a 40 hour work week, the COMPANY is not
obliged to recall an employee for such assignment.

	37	 	Section 13 — Grievances

	 	a)	 	In all cases where the UNION or the employee claims that the principle of
seniority has been violated, such grievance must be taken up within ten (10) days
of the alleged violation and shall be handled according to the procedure set out in
Article 27 hereof. In the event the employee grieved is not actively working on
the day of such violation, the period of limitation shall begin on the day the
employee returns to work.

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ARTICLE 7

SUPERVISORS DOING HOURLY WORK

	38 	a)	 	 Anyone employed by the COMPANY in the capacity of a foreman or a
supervisor will be permitted to perform work that is normally
performed by bargaining unit employees, except as limited by Article 7
(b), below.

	 	b)	 	Foremen and supervisors will not be permitted to perform work
normally performed solely by bargaining unit employees, if bargaining
unit employees are laid off as a direct or indirect result or if the
direct or indirect result is that employees on the recall list are
prevented from being recalled. It is expressly agreed that work that
is normally performed both by bargaining unit employees and by foremen
or supervisors is not “work that is normally performed solely by
bargaining unit employees” and consequently is not covered by the
preceding sentence. The management of the COMPANY will determine, in
its sound discretion, whether employees would be laid off and whether
recalls would be prevented as a result of the performance by foremen
or supervisors of “work normally performed solely by bargaining unit
employees.”

ARTICLE 8

WORK CLASSIFICATIONS

	39	a)	 	 Wage rates for all classifications of work within the bargaining
unit shall be mutually agreed to between the COMPANY and the UNION,
set forth separately, and attached to this Agreement and marked
“Exhibit B”.

ARTICLE 9

STAFFING OF NEW UNITS

	40	a)	 	 The COMPANY agrees to consult with the UNION in connection with the
staffing of new units or consolidation of departments in the operating
section.

ARTICLE 10

STEWARDS

	41	a)	 	 The UNION may designate for each Department in Operations and each
craft in Maintenance, a Shop Steward who shall call to the attention
of the foreman or supervisor any questions of working conditions that
may arise in their department or craft.

	 	b)	 	Discussion between the Shop Steward and Foreman and/or the
Supervisor shall be at such time and place as not to interfere with
work in the department or craft.
	 
	 	c)	 	If the Shop Steward and Foreman or Supervisor are unable to agree,
the matter will be referred to the department head involved in
accordance with procedure for handling grievances as set out in
Article 27, it being agreed that the Shop Steward shall suffer no loss
in pay for acting in that capacity.

20

 

	 	d)	 	Any employee called in for discussion that might result in
disciplinary action or any entry to be made in their personnel file
may be permitted to have a Steward present.
	 
	 	e)	 	One person within the bargaining unit designated by the Business
Manager of the UNION may be named to act in the capacity as a Benefits
Steward for hourly employees. This Steward shall be provided with a
locked file cabinet in a suitable location within the plant in which
to file records and information. All medical, dental, disability, and
other benefit forms and associated correspondence presented or
received by the COMPANY are confidential and private information and
the COMPANY is required to treat it as such. Any confidential records
and information sought by the UNION shall be obtained directly from
the concerned employee or, with written permission by the employee,
from the Human Resources Department.
	 
	 	f)	 	Nothing in this agreement shall be construed as preventing any
employee so represented from dealing directly with the COMPANY’S Human
Resources personnel.

ARTICLE 11

CONTRACT WORK

	42 	a)	 	 The COMPANY reserves the right to utilize independent contractors
for any purpose, including the performance of any amount of work
normally performed by employees in the bargaining unit, provided
employees in Groups 1 and 4, and the Instrument/Electrical and
Machinist crafts are not laid off as a direct or indirect result of
such work being contracted out; nor shall any such work contracted
prevent the recall of laid off employees from these groups. It is
further agreed that (consistent with the terms of the parties’
previous collective bargaining agreements and past practices) the
performance of such work under any circumstances by contractor
personnel shall not result in such personnel becoming part of the
bargaining unit or in the application of the terms of this Agreement
to such personnel, whether they are deemed to be jointly employed by
Sterling or otherwise.

ARTICLE 12

PAY DAY

	43 	a)	 	 All regular employees covered by this Agreement shall be paid in full, once every
two weeks on regular paydays established by the COMPANY except that when a holiday
falls on a payday, the employees will be paid the day before the holiday. Each
employee on paydays shall be provided with an itemized statement of gross earnings
and all deductions for any purpose.

	 	b)	 	All paychecks will be directly deposited with the financial institution of the
employee’s choice by the individual bargaining unit employee signing a statement so
indicating and holding the COMPANY harmless if their financial institution has not
credited their account in a timely manner.
	 
	 	c)	 	The COMPANY further agrees that if any questions arise concerning time credited or
pay received by an employee, the time cards and other pertinent records will be made

21

 

	 	 	 	available for examination to the employee and the Shop Steward. In the event the
difficulty cannot be resolved at that time, then the same shall be considered a
grievance and handled according to the regular grievance procedure.
	 
	 	d)	 	A pay error of less than eight (8) hours pay will be corrected on the next regular
paycheck. An error of eight (8) or more hours pay will be corrected via a special
make-up check.

ARTICLE 13

PHYSICAL EXAMINATIONS

	44 	a)	 	 An applicant for employment, before being hired, must meet certain minimum
standards of health and physical fitness. A licensed physician employed by the
COMPANY will give the physical examination.

	 	b)	 	Periodic examinations of employees will be carried on with the principal idea of
helping employees improve their own health condition and to enable COMPANY to guard
the health of its employees.
	 
	 	c)	 	Employees who become physically unfit to perform one or more of the essential
functions of their assigned classification, may be assigned other work, if available,
and until, in the opinion of the doctor retained by the COMPANY, the employee is able
to resume the work of their designated classification.
	 
	 	d)	 	The COMPANY agrees to continue notification and to send a copy of such individual
test results to employees who fall outside the normal medical limits and to provide a
copy to an employee who comes to the Heath Services Department and requests such
information.
	 
	 	e)	 	When an employee is scheduled for a chest x-ray as part of their physical, the
COMPANY will provide for the x-ray to be read by a “B-Reader”. For employees in the
Insulator Craft, a second x-ray, read by a “B-Reader”, will be provided at six (6)
month intervals at the request of an insulator.

ARTICLE 14

DISCRIMINATION

	45 	a)	 	 No members of a signatory union shall be discriminated against, discharged or
harassed on account of their activities or interest in their UNION while carrying out
in good faith the terms of this Agreement.

	 	b)	 	Charges of such discrimination, discharge or harassment, if any, shall be handled
according to the regular grievance procedure.

22

 

ARTICLE 15

UNION REPRESENTATIVES

	46 	a)	 	 When in the opinion of a Steward or Plant Committeeman, or the COMPANY, the
counsel of a business representative of the Texas City, Texas Metal Trades Council,
or any of the organizations signatory to this Agreement, is advisable or necessary to
aid in the resolving of a grievance that has arisen, such business representative
shall be permitted to enter the premises of the COMPANY, subject to the regulations
governing visitors to this plant.

ARTICLE 16

JURY SERVICE

	47	 	Employees kept away from work because of reporting for jury service or for service as
a witness under court subpoena will be paid their regular straight-time hourly rate,
exclusive of any overtime or other premium pay, subject to the following provisions.

	48	 	Section 1 — Morning Court Appearance

	 	a)	 	Employees working days are not required to report back for work if dismissed from
court duty at or after 11:30 a.m. Employees dismissed before 11:30 a.m. are required
to report for work and complete the workday.
	 
	 	b)	 	Employees on the 10:30 p.m. to 6:30 a.m. (or 11:30 p.m. to 7:30 a.m.) shift shall
not be required to work the shift on the calendar day of their first day in court,
nor any other 10:30 p.m. to 6:30 a.m. (11:30 p.m. to 7:30 a.m.) shift falling on a
day they are scheduled to be in court.
	 
	 	c)	 	Employees scheduled to work the 2:30 p.m. to 10:30 p.m. or 3:30 p.m. to 11:30 p.m.
shift are not required to report for their shift if they are released from court
after 10:00 a.m.
	 
	 	d)	 	Employees scheduled to work the 10:30 p.m. to 6:30 a.m. (or 11:30 p.m. to 7:30
a.m.) shifts are not required to report for work on these shifts if dismissed from
court duty at or after 12:00 p.m. If released before noon, they are expected to work
their scheduled shifts.

	49	 	Section 2 — Afternoon Court Appearance

	 	a)	 	Employees working days are required to report for work at the beginning of their
shift and will be released a reasonable period of time prior to their court
appearance.
	 
	 	b)	 	Employees scheduled to work the 2:30 p.m. to 10:30 p.m. (or 3:30 p.m. to 11:30
p.m.) shift are not required to report for work prior to an appearance in court which
begins after the start of their scheduled shift and before 6:30 p.m. Employees
scheduled to work the 2:30 to 10:30 p.m. (or 3:30 p.m. to 11:30 p.m.) shift who serve
three (3) or more hours in court or who are dismissed from court at or after 6:30
p.m. are not required to work the remainder of their scheduled shift on that payroll
day.

23

 

	 	c)	 	Employees scheduled to work the 10:30 p.m. to 6:30 a.m. (or 11:30 p.m. to 7:30
a.m.) shift whose court appearance begins before 3:00 p.m. are not required to work
their graveyard shift on that calendar day. Employees scheduled to work the 10:30
p.m. to 6:30 a.m. (or 11:30 p.m. to 7:30 a.m.) shift are not required to work the
shift falling on the payroll day of an appearance in court if released from court at
or after 3:00 p.m.

	50	 	Section 3

	 	a)	 	Employees are required to furnish proof from the court of such service, showing
the date and time served and amount paid for their services. With regard to jury
service, the COMPANY agrees to treat the documented release time the same for standby
as for court appearances.

	51	 	Section 4

	 	a)	 	An employee who is to report for court duty in the afternoon shall be given a
reasonable period of time to go home, change clothes, etc., eat and then drive to the
courthouse for duty; or that an employee released from court duty before 12:00 p.m.
shall be given reasonable time to go home, change clothes, eat and drive to the
plant.

ARTICLE 17

ELECTION DAY REGULATIONS

	52 	a)	 	 It is further agreed that arrangements shall be made so that all employees working
days or day shifts who are requested to work overtime, shall have sufficient time off
to vote on election days covering City, State, and National elections, and such time
off shall not be deducted from the employee’s wage.

	 	b)	 	An employee appointed as an election judge or observer or those elected as
delegates to political conventions shall be granted (a) vacation bank days if
eligible; or (b) an excused absence. The request must be made in advance and must
not conflict with or impair plant operation.

ARTICLE 18

REPLACEMENT OF CLOTHING

	53 	a)	 	 Any employee required to perform work which results in the damage to clothes or
shoes by chemical or fire action, to such an extent they are no longer suitable for
wear, shall be furnished with suitable clothing or be given a cash replacement
allowance provided the damage did not occur due to the employee’s failure to wear
proper PPE when required; reimbursement is to be at replacement cost less
depreciation for normal wear. Replacement cost shall mean the cost to replace the
clothing at the time it is ruined.
	 
	 	b)	 	All employees required to perform work which results in damage to clothes and
shoes by chemical or fire action will be furnished proper protective clothing and
equipment which is appropriate under the conditions prevailing. All such clothing
and

24

 

equipment shall be returned, as directed by the COMPANY, at the completion of an
assignment or shift, whichever is applicable.

ARTICLE 19

LAYOFF NOTICE — SEPARATION ALLOWANCE

	54 	a)	 	 Whenever it is necessary to lay off an employee or employees because of lack of
work due to curtailment of production, process changes, changing requirements of
craft work, or any other reason beyond control of the COMPANY, such employee or
employees shall be given ten (10) working days’ notice of such layoff. The COMPANY
shall have the option of paying for their time in lieu of notice.
	 
	 	b)	 	In the event of a hurricane evacuation, acts of God or other situations beyond the
reasonable and direct control of the COMPANY, the notice provisions of this Article
will not apply.
	 
	 	c)	 	If it is necessary to lay off employees because of any labor dispute preventing
normal operations of the plant, three (3) calendar days’ notice will be given. The
COMPANY shall have the option of paying for this time in lieu of notice.
	 
	 	d)	 	Hourly paid employees, who are laid off as a result of economic curtailment, will
be eligible for a separation allowance in keeping with the following provisions:

	55	 	Section 1 — Mode of Compensation

	 	a)	 	The Separation Allowance is computed on the basis of years of continuous service
with the COMPANY. Continuous service for the purpose of this agreement is defined as
time spent working for the COMPANY computed from the employee’s last date of hire.
The maximum allowance for any given period of layoff shall be as follows:

	 	 	 
	ALLOWANCE SCHEDULE
	Years of Continuous Service	 	Pay Allowance
	Under 1 year
	 	2 weeks
	1 through 4
	 	4 weeks
	5 through 9
	 	8 weeks
	10 or more
	 	12 weeks plus 1/2 week
	 
	 	for each year in excess of 10

25

 

	56	 	Section 2 — Method of Payment

	 	a)	 	The Separation Allowance will be paid in bi-weekly installments at their regular
bi-weekly pay amount until the maximum allowance specified above is reached, provided
the employee continues to meet the eligibility requirements.
	 
	 	b)	 	Should an employee be recalled to active employment before exhausting this maximum
allowance, payments will cease as of the effective date of recall. Any remaining
balance will be available for payment in the event the employee is subsequently laid
off before meeting the full reinstatement requirement specified below. However, in
the event the employee meets the requirements for full allowance reinstatement, the
payments will not exceed those specified in Section (1) above.
	 
	 	c)	 	Any employee who is recalled to regular active employment after exhausting the
maximum allowance payments will be ineligible for further separation payments until
they have completed 78 continuous weeks of active employment, at which time they will
again become eligible for full benefits under Section (1) above.
	 
	 	d)	 	All monies paid as Separation Allowance will be subject to applicable taxes and
other required withholdings.

	57	 	Section 3 — Eligibility

	 	a)	 	Separation Allowance is not payable to any employee who:

	 	1)	 	Resigns or abandons employment for any reason.
	 
	 	2)	 	Becomes deceased.
	 
	 	3)	 	Elects normal or early retirement.
	 
	 	4)	 	Is discharged.
	 
	 	5)	 	Accepts a position in Sterling that is not within this bargaining unit.
	 
	 	6)	 	Is receiving either occupational or non-occupational disability benefits until
said benefits are exhausted, and only then, provided the employee is still on layoff
status.
	 
	 	7)	 	Receives total and permanent (Long-Term Disability) disability benefits.
	 
	 	8)	 	Is recalled from layoff.
	 
	 	9)	 	Is offered a position with an acquiring company, of equivalent pay and benefits at
the Texas City Plant.

26

 

	 	b)	 	The above Separation Allowance shall not be paid in the event that the lack of
work is due to a labor dispute or to fire, flood, water, or power failure, or other
act of God.

ARTICLE 20

LEAVE OF ABSENCE

	58 	a)	 	 The COMPANY shall grant leave of absence, up to ninety (90) days length, for
personal reasons upon request and explanation by the employee, provided that, in the
opinion of the COMPANY, the reason for the request is worthy and such leave shall not
be used, except with the permission of the COMPANY, for the purpose of accepting
other employment and such leave shall not affect the seniority status of said
employee and/or employees.
	 
	 	b)	 	The COMPANY shall, upon at least ten (10) days notice given by the UNION, grant
leaves of absence not to exceed thirty (30) days, to employees to attend UNION
conventions or meetings, provided not more than a total of three (3) employees from
the plant or one (1) employee from a department shall be away for that purpose at any
one time.
	 
	 	c)	 	The COMPANY shall, upon at least two (2) weeks notice given by the UNION, grant
leaves of absence not to exceed one (1) year in length to a maximum of two (2)
employees during any one period for purposes of accepting employment with a union
signatory to this Agreement. Employees on such leaves of absence will maintain their
seniority status while on leave providing they maintain continuous service with said
union. Such leaves of absence will be automatically extended on a year-by-year basis
for the duration of the Agreement, upon receipt by the COMPANY, of a written request
from the UNION at least two (2) weeks prior to the expiration of each one (1) year
period. Employees desiring to return from such leaves will give the COMPANY at least
two (2) weeks notice in writing, and upon return will be required to take a
pre-employment physical as if they were new employees.
	 
	 	d)	 	Unpaid leave to care for a newborn child will be administered under the guidelines
of the Family and Medical Leave Act.
	 
	 	e)	 	Employees elected or appointed to public office will be allowed an excused
absence, without pay, providing their absences do not create a cost to the COMPANY or
impair normal operations.

ARTICLE 21

SANITATION AND SAFETY

	59 	a)	 	 All covered bargaining unit employees who, in order to perform their normal
duties, are required by state law to possess either a commercial or chauffeur’s
license shall be reimbursed the cost of these licenses.

27

 

	 	b)	 	Inspection of any job for safety purpose may be secured upon the request of any
employee assigned to that job; such inspection to be made by a member of the Plant
Safety Department or other supervision with the employee involved. If the result of
this inspection indicates an unsafe condition, the job will be postponed until proper
steps have been taken to remedy the condition unless, in the opinion of the
supervisor, postponing the job creates a greater hazard.
	 
	 	c)	 	When an employee accompanies an OSHA representative, while on COMPANY time during
an in-plant investigation, said employee shall not suffer any loss of pay.

	60	 	Prescription Safety Glasses -

	 	a)	 	The COMPANY agrees to pay up to one hundred dollars ($100.00) applicable to the
lenses for one pair of prescription safety glasses purchased through the Safety
Department. Such glasses may be tinted or clear. Where the employee’s prescription
is from a licensed physician and states that the employee’s eye condition makes it
mandatory that they wear dark glasses during daylight hours, the COMPANY will agree
to pay up to an additional one hundred dollars ($100.00) for the purchase of an
additional pair of shaded glasses. It is also understood that the COMPANY will pay
up to one hundred dollars ($100.00) applicable to the lenses for the purchase of new
safety glasses when an employee’s prescription is changed.
	 
	 	b)	 	The COMPANY will pay 100% for the initial eye exam from an approved provider. The
COMPANY will pay 75% for subsequent eye exams in two (2) year intervals from an
approved provider.
	 
	 	c)	 	Additionally, up to two (2) pair of non-prescription safety sunglasses or sunglass
clip-ons will be provided each year from an approved list.
	 
	 	d)	 	The COMPANY payment toward frames for prescription safety glasses is $50.00.
	 
	 	e)	 	The COMPANY agrees to provide one (1) pair of prescription glasses for welders.
If additional glasses are needed, requests will be evaluated and processed by the
Plant Safety Department on a case by case basis.
	 
	 	f)	 	Up to two pairs of clip-on glasses per year shall be furnished by the COMPANY to
the Operating Engineers, Local 450 members only. Clip-on glasses may be purchased at
cost by other employees at the Safety Supply section. Additionally, the COMPANY
agrees to provide one pair of colored prescription safety glasses for Operating
Engineers required to operate hoisting equipment.

	61	 	Safety Shoes -

	a)	 	The COMPANY will provide to each bargaining unit employee up to two (2) pairs of
approved chemical resistant safety shoes per contract year at the COMPANY’S expense
up to a maximum of $100.00 per pair. Employees will be allowed to opt, instead, for
one (1) pair of more expensive safety shoes per contract year at

28

 

     COMPANY’S expense up
to a maximum of $175.00 per pair. In either case, the employee will pay the
additional cost above the maximum COMPANY dollar contribution where applicable.

ARTICLE 22

BULLETIN BOARDS

	62 	a)	 	 It is further agreed that the COMPANY shall provide an electronic bulletin board
for the posting of UNION notices and the currently effective collective bargaining
agreement. This board shall be used for the display of the following notices: UNION
meetings, UNION appointments, UNION elections, and UNION social affairs. All notices
to be posted on said board must first have the approval of the Plant Manager or his
designee. It is agreed that no UNION matter of any kind shall be posted in and about
the plant except on said board. In addition, postings must be supplied in the form
of a scanable document. Approved postings will be removed after 10 days.

ARTICLE 23

COMPANY RULES

	63 	a)	 	 It is further agreed by both parties to this Agreement that fair treatment, good
service, and due diligence in observance of the rules as promulgated by the COMPANY
are essential to the maintenance of satisfactory working conditions and wages
described in this Agreement and for efficient production provided that such rules as
may be promulgated by the COMPANY shall not in any way conflict with the terms of
this Agreement.

ARTICLE 24

PRODUCTIVITY STATEMENT

	64 	a)	 	 The COMPANY and the Texas City Metal Trades Council agree that a
profitable and highly competitive Texas City plant enhances the job
security of all plant employees. Both parties recognize the necessity
of making productivity improvements to ensure the future profitability
and competitiveness of the plant.
	 
	 	b)	 	While acknowledging their respective rights and obligations, the
COMPANY and the UNION further recognize that in today’s rapidly
changing business environment a cooperative versus a
confrontational approach to labor relations matters is vital to the
plant’s success. Specifically, the parties have endorsed the
following principles to reinforce their emphasis on this productive
collaboration:

	 	1)	 	A working environment that fosters increased effectiveness,
efficiency and productivity of plant operations is a highly desirable
goal all employees should contribute to achieving.

29

 

	 	2)	 	Timely, effective two-way communications are basic to productive
plant operations.
	 
	 	3)	 	As appropriate, problem solving groups, as well as participative
concepts such as quality circles, may be facilitated. Productivity
improvement plans, programs and results will be periodically reviewed
with the Plant Union Committee.

	 	c)	 	The COMPANY and the UNION recognize that it is desirable and
mutually beneficial to set up an annual meeting to review Work
Practices vs. Best of Class in Industry. The purpose of these
meetings would be to identify possible areas of improvement that could
enhance the COMPANY’S competitiveness within the industry.
	 
	 	d)	 	During such meetings, possible areas of improvement identified
which would require modifying, amending, or waiving any of the
provisions of this Labor Agreement shall be implemented only by mutual
consent of both the COMPANY and the UNION.

ARTICLE 25

FUNERAL LEAVE

	65 	a)	 	 Employees with ninety (90) days of continuous service will be given a three (3)
day leave of absence to attend the funeral of their spouse, child, parent,
brother, sister, parent-in-law, brother-in-law, sister-in-law, son-in-law,
daughter-in-law, grandparent, grandchild, stepchild, stepmother, stepfather, or
spouse’s grandparent. These shall be three (3) consecutive calendar days, one (1)
of which must be the day of the funeral. Employees will be paid for any such days
lost from work at their regular straight-time hourly rate, exclusive of any
overtime or other premium pay, provided such are their regularly-scheduled work
days. No employee shall receive funeral leave pay for any day that is not a
regularly-scheduled workday nor for any day on which they are absent from work or
on leave for any other purpose.
	 
	 	b)	 	Upon the death of a relative of an employee or employee’s spouse where said
relative has been a long term resident of the employee’s household immediately
prior to death and/or confinement to a health facility, funeral leave provisions
shall apply the same as that which applies to the death of a person defined above
within the immediate family.
	 
	 	c)	 	The COMPANY agrees that when a death in an employee’s immediate family, as
defined above, occurs while the employee is on vacation, the employee, with
sufficient notice to the COMPANY may stop their vacation and start their funeral
leave in accordance with this article.

30

 

	 	d)	 	An employee absent from their regular work schedule due to the imminent death
of a listed relative may receive funeral leave provided such lost time occurs
within the three-day period selected by the employee as funeral leave under this
article.
	 
	 	e)	 	The COMPANY agrees to double the allotted Funeral Leave when two or more listed
family members die concurrently.
	 
	 	f)	 	Upon return to work, employees shall complete and sign a COMPANY “Funeral Leave
Pay” form and submit satisfactory proof of relationship to the deceased and of
actual attendance at the funeral.
	 
	 	g)	 	An employee will be excused without the loss of straight time earnings to serve
as an active pallbearer on the day of the funeral of an employee or retired
employee of the Texas City Plant. The request for the employee to serve must be
from a member of the deceased employee’s immediate family and no more than six (6)
employees may be excused for such pallbearer service at any one funeral. Where
the employee or employees to be excused would result in the impairment of plant
operations, the COMPANY reserves the right to limit the number of employees
absent.

ARTICLE 26

STRIKES AND LOCKOUTS

	66 	a)	 	 All members of the UNION agree to conform to the rules and regulations of the
COMPANY insofar as they do not violate the conditions of these Articles of
Agreement. No member of the UNION employed by the COMPANY shall be discriminated
against for upholding UNION principles not inconsistent with the terms of this
Agreement. The COMPANY and the UNION desire that production shall continue
without interruptions. The COMPANY and the UNION further agree that good
employer/employee relations cannot exist unless there is a serious effort on the
part of both the COMPANY and the UNION to settle in a peaceable manner all
disputes that may arise. Therefore, as a means of promoting continued production
and employment and improved employer/employee relationships, the COMPANY and the
UNION agree that the grievance procedure and arbitration procedure provided in
this Contract shall be used to peaceably settle without strike disputes that are
covered by such grievance and arbitration procedure.
	 
	 	b)	 	It is agreed that there will be no lockout by the COMPANY or strike or work
stoppage by the UNION.
	 
	 	c)	 	In the event of such strike or work stoppage, there shall be no liability on
the part of the UNION, its officers or agents, if such strike or work stoppage was
not authorized, encouraged or condoned by the UNION.
	 
	 	d)	 	The UNION agrees to cooperate with the COMPANY and use means at its disposal to

31

 

	 	 	 	settle such strike or work stoppage and request such employees to return to work.

	 	e)	 	This provision shall no longer be binding on the COMPANY or the UNION if either
party has served proper notice requesting changes or modifications of this
Agreement in accordance with the terms of Article 32 and either party has given
written notice that is discontinuing negotiations.

ARTICLE 27

GRIEVANCE PROCEDURE AND DISCIPLINE RECORDS

	67 	a)	 	 The parties to this Agreement agree that any dispute, complaints, or grievance,
except those pertaining to discharge, arising out of the interpretation or
application of the terms of this Agreement, shall be settled promptly in
accordance with the following procedure:

	 	1)	 	It is understood and agreed that no complaint, dispute, or grievance shall be
submitted to either the COMPANY or UNION after a lapse of ten (10) days from the
time the incident causing the complaint, dispute, or grievance shall have occurred
or become known to the employee.
	 
	 	2)	 	Step 1 — Any employee or group of employees either individually or with, or
through, their Steward, may discuss with the immediate supervisor any complaint or
other matter which they feel requires clarification. The supervisor shall have
five (5) days in which to render a verbal decision to said employee(s) and the
Steward involved, if any. Should the decision fail to bring about a satisfactory
settlement in the matter, it may become a grievance and may be handled in
accordance with Step 2.

	 	i)	 	It is understood that when a group of employees desire a clarification on a
matter in which they are commonly involved, one employee in the group, with or
through the steward, if desired, shall be designated by the group to discuss the
matter with the supervisor. Matters which do not affect the employees as a group
in a common manner, or which may require individual adjustment, shall be presented
on an individual basis.

	 	3)	 	Step 2 — Within five (5) days of receipt of the verbal decision at Step 1, the
employee or group of employees, either individually or through their steward, may
file the grievance, on forms provided by the COMPANY and the UNION, through the
immediate supervisor to their department head. Within five (5) days of receipt of
the grievance, the department’s supervision, and a representative of the Human
Resources Department shall meet with the employee, their steward, the appropriate
Plant/Union Committeeman and the Business Manager of the UNION or designee, for
the purpose of discussing the grievance. Supervision shall have five (5) days in
which to render a decision. If the decision brings about a satisfactory
settlement of the matter, it shall be reduced to writing and shall be delivered to
the employee, the steward and the UNION.

	 	i)	 	If the decision fails to bring about a satisfactory settlement, it may be
appealed 

32

 

	 	 	 	in writing by the employee or group of employees, either individually, or
through their Steward, to the Plant Manager or designee, within ten (10) days of
the decision and will be handled in accordance with Step 3.

	 	4)	 	Step 3 — A grievance appealed to Step 3 will be entered on the agenda of the
next meeting of the Plant/Union and the Plant Management Committees if the appeal
is received at least ten (10) days prior to its scheduled meeting. If received
within the ten (10) day period prior to a meeting, it shall be placed on the
agenda for the following meeting.
	 
	 	5)	 	An employee having a grievance in regard to contractual sick pay benefits may
file a grievance directly with the Human Resources Department, who shall have five
(5) days’ time in which to investigate and answer the grievance. Should the
answer fail to bring about a satisfactory settlement to the grievance, then the
employee may, within five (5) days, appeal the grievance directly to Step 3 of the
grievance procedure.
	 
	 	6)	 	After discussion of the grievance by the Plant/Union and Plant Management
Committees, it shall be answered, in writing, to the UNION within ten (10) days.

If the grievance is settled at Step 3, the answer shall reflect the settlement.
If the grievance has not been settled, then the COMPANY’S answer shall state why
the grievance is denied.

	 	b)	 	The COMPANY and the UNION recognize that it is desirable and mutually
beneficial to have regular monthly meetings for the purpose of discussing any
grievances placed on the agenda for the respective meeting. For this purpose, the
representatives of the UNION shall consist of a committee designated by the UNION
and shall be called the Plant/Union Committee (PUC), of which there shall be seven
(7) employee members. Employees in the probationary period of employment shall
not be eligible for membership on the PUC.
	 
	 	c)	 	If an employee is discharged, the COMPANY, within three (3) days of the
discharge, shall, on request of the employee provide the employee with a written
statement of the reason or reasons for the action taken. If the UNION desires to
protest the discharge, the UNION, instead of following the procedure set forth in
Steps 1 and 2 of the Article, may, within ten (10) days after the discharge in
question, file directly with the COMPANY, a written request for a hearing. Such
hearing shall be held within two (2) days after receipt by the COMPANY of such
written request. At such hearing, evidence may be presented on behalf of the one
discharged and by the COMPANY.
	 
	 	d)	 	If the evidence presented by the UNION to the COMPANY warrants the
reinstatement of the discharged employee or employees, such reinstatement shall be
to their former position without loss of seniority or vacation credits. All other
terms of the reinstatement may be agreed upon between the COMPANY and the UNION at
this time. If the COMPANY and the UNION cannot agree that the discharge was
justified, the dispute may be referred to arbitration in accordance with the
procedure

33

 

	 	 	 	set forth below.

	 	e)	 	If a grievance or discharge protest cannot be settled to the mutual
satisfaction of the COMPANY and UNION in Steps 1 through 3 or as otherwise
provided above, the UNION shall have forty-five (45) days during which to notify
the COMPANY of their desire to arbitrate the dispute.
	 
	 	f)	 	Except where stated otherwise, all time limits noted in this Article are
exclusive of Saturdays, Sundays and holidays as listed in Article 4, Sec. 3 (a).
Extensions of time limits as set forth in this Article, may be requested by either
the COMPANY or the UNION to take care of unusual cases.
	 
	 	g)	 	Whenever a supervisory employee places charges or letters of reprimand on an
employee’s record, a copy of such charges or letters of reprimand must be
furnished to such employee. Any charges or letters of reprimand made against an
employee may be referred by the employee to the grievance procedure for handling
if the employee feels the charges or letters of reprimand are unfounded or not
justified.
	 
	 	h)	 	If an employee has gone a period of twenty-four (24) months without receiving a
letter of warning or reprimand, no letters issued to the employee previously
(except those which involved disciplinary suspension) will be used for the purpose
of further disciplinary action. Disciplinary suspension will be limited to five
(5) years for the purpose of further disciplinary action.

ARTICLE 28

ARBITRATION PROCEDURE

	68 	a)	 	 If a grievance has not been settled to the mutual satisfaction of the COMPANY
and UNION after completing Step 3 of the grievance procedure provided above, the
UNION shall have forty-five (45) days during which to notify the COMPANY of their
desire to arbitrate the dispute. A panel of five (5) neutral arbitrators shall
be requested in writing from the Federal Mediation and Conciliation Service
(FMCS), a copy of such letter will be given to the other party. Upon receipt of
the panel of arbitrators, the parties shall alternately strike same, with the
first strike determined by flip of a coin.
	 
	 	b)	 	Grievances appealed to arbitration but not scheduled for hearing within 12
months of the appeal are considered to be dropped.
	 
	 	c)	 	The COMPANY and the UNION shall bear the expenses of their respective
advocates. All other expenses of the arbitration shall be borne by and divided
equally between the UNION and the COMPANY.
	 
	 	d)	 	The arbitrator selected shall have no power or authority to amend, alter or
modify this Agreement, including any appendices hereto, but shall be limited to
deciding whether or not a violation of its express terms has been committed. The
decision of the arbitrator shall be final, conclusive and binding upon all
employees, the UNION and the COMPANY. The arbitrator shall have no power to
establish wage scales, rates for

34

 

	 	 	 	new jobs, or to change any wage. He shall have
no power to substitute his discretion for that of the COMPANY in cases where the
COMPANY has retained discretion or the right to act under this Agreement. The
arbitrator shall, in his decision, specify whether or not the decision is
retroactive or the effective date thereof.

	 	e)	 	Time limits: If the UNION or Grievant fails to observe the time limits set
forth in the Grievance or Arbitration Procedures, the grievance shall be
considered closed and no further proceeding thereon shall lie. If the COMPANY
fails to meet the time limits set forth, the grievance may be appealed to the next
step of the grievance or arbitration procedures.

ARTICLE 29

ABROGATION OF CONTRACT ARTICLES

	69	 	Should any part hereof, or any provisions herein contained, be rendered or
declared invalid by reason of any existing or subsequently enacted legislation or
by a decree of a court of competent jurisdiction, such invalidation of such part
or portion of this
Agreement shall not invalidate the remaining portion hereof and they shall remain
in full force and effect.

ARTICLE 30

OCCUPATIONAL & NON-OCCUPATIONAL

ACCIDENT AND SICKNESS PLAN

	70	 	Section 1

	 	a)	 	This Benefit Plan is provided to aid employees in meeting their expenses while
suffering from an illness or accident in accordance with the following schedule:

	 	 	 	 	 
	 	 	 	 	Maximum Number
	Plant Service Credit	 	 	 	of Weeks Benefit
	Six months to 1 year 

Over 1 year
	 	 	 	12 weeks

26 weeks

	 	b)	 	Plant Service Credit shall mean employment with the COMPANY, which is credited to the
employee from the records of the COMPANY and shall start with the employee’s hiring date
with the COMPANY. No credit shall be given for absence due to leave of absence, layoff
or strikes.

	71	 	Section 2

	 	a)	 	Maximum Number of Weeks Benefits is determined by the employee’s Plant Service Credit,
and all disability periods occurring within the Plant Service Credit year will be totaled
for the purpose of computing the Maximum Benefits allowed for that year.

	 
	 	b) 	 	 Unused benefits during a Plant Service Credit year may not be carried over to the next Plant Service Credit year.

35

 

	 	c)	 	An employee whose continuous absence due to an illness or injury extends from one (1)
service year to another shall be entitled to a maximum of twenty-six (26) weeks benefits
for that disability. An employee whose continuous absence exceeds such Maximum Benefits
must return to work for a period of sixty (60) days for a related disability or one (1)
day for an unrelated disability in order to receive further benefits to which they may be
entitled. Total benefits will not exceed twenty-six (26) weeks in a Plant Service Credit
year.

	72	 	Section 3

	 	a)	 	The Plan provides benefits based on a normal workweek of forty (40) hours and a normal
day of eight (8) hours. In case the number of hours in the normal workweek or workday is
changed, the benefits listed below will be changed in direct proportion to the change in
the scheduled working hours.
	 
	 	b)	 	The benefits provided for herein shall be less any amount or amounts of disability
benefits which may be provided for through the State or Federal legislation, Workers
Compensation, or benefits provided in the Hourly Disability Benefit Plan.

	73	 	Section 4

	 	a)	 	This Benefit Plan will provide benefit payments based on the employee’s base hourly
rate, exclusive of all premium pay. Benefit payments will be made for an employee’s
disability for each scheduled workday up to the maximum number of weeks for which the
employee is eligible according to the schedule in Section 1.
	 
	 	b)	 	The COMPANY will provide benefits in an amount equal to 90% of an employee’s base
straight-time earnings for workdays lost due to non-occupational disability and up to
100% of an employee’s base straight-time earnings for workdays lost due to occupational
disability.
	 
	 	c)	 	An employee who has completed the probationary period but has less than six (6)
month’s service and otherwise is qualified for benefits from this Plan on a holiday will
be guaranteed up to eight (8) hours pay.

	74	 	Section 5

	 	a)	 	An employee must present evidence satisfactory to the COMPANY, showing that an absence
is due to illness or accident within the meaning of this Plan on forms provided by the
COMPANY.
	 
	 	b)	 	The employee, the doctor, or a member of the family must report an employee’s absence
to the Health Services Department by the third day of absence. Failure to comply will be
considered an absence without leave.
	 
	 	c)	 	Additionally, an employee’s occupational injury or illness must be reported to

36

 

	 	 	 	supervision as soon as it becomes known to the employee or it will be considered a late
report and subject to disciplinary action.

	 	d)	 	Employees must adopt such remedial measures as may be commensurate with their
disability and permit such reasonable examinations and inquiries by the COMPANY’S Health
Services Department representative as, in its judgment, may be necessary to ascertain the
employee’s condition.

	75	 	Section 6

	 	a)	 	Payments will not be made for:

	 	1)	 	Any period of disability during which the employee is not under treatment by a
licensed physician or a licensed chiropractor.
	 
	 	2)	 	Any disability caused directly or indirectly by war or riot.
	 
	 	3)	 	Any sickness or injury due to the employee’s

	 	i)	 	Willful intention to injure oneself or another;
	 
	 	ii)	 	Intoxication or the use of drugs except when in an EAP approved treatment program for
substance abuse.

	 	4)	 	Any disability occurring while the employee is working for wages or profit.
	 
	 	5)	 	Any disability due to misconduct.
	 
	 	6)	 	Any disability when an employee is absent because of layoffs, strikes, or leave of
absence or on vacation. Any employee who is injured or becomes sick during vacation and
is unable to return to work at the end of the vacation shall qualify for benefits in
accordance with the Plan.

	 	b)	 	All benefits under this plan shall cease immediately when employment with the COMPANY
is terminated for any reason.

	76	 	Section 7

	 	a)	 	The COMPANY reserves the right to withhold benefit payments to any employee who is
guilty of submitting a false claim or of abuse of the privileges covered and may take
disciplinary action including discharge.

	77	 	Section 8

	 	a)	 	Employees receiving sick benefits under this Article at the time a work stoppage
occurs will continue to be covered under this Article until certified able to return to

37

 

	 	 	 	work. Employees whose illness or injury occurs after a work stoppage begins will not
receive benefits, as set forth in this Article, until the settlement of the work
stoppage.

	78	 	Section 9

	 	a)	 	The COMPANY agrees that when an employee becomes ill or is injured while on vacation
and is certified as disabled by a licensed physician, they will be able to cancel
subsequent full weeks of vacation beyond the week in which they become certified as
disabled upon proper notification to the COMPANY.
	 
	 	b)	 	The COMPANY agrees that if an employee is hospitalized while on vacation, the
employee’s vacation may be canceled and the employee placed on sick leave on the day of
hospitalization. For purposes of this paragraph, the day is defined as the payroll day
appropriate to the employee’s regular work schedule.

ARTICLE 31

WORK ASSIGNMENTS

	79 	a)	 	 There is no jurisdiction. Work will be assigned on the basis of skill and ability
taking into account that the needed skills will be represented.
	 
	 	b)	 	Bargaining Unit employees will not be required to train non-Sterling personnel.

ARTICLE 32

CONTRACT PERIOD

	80 	a)	 	 This agreement shall become effective on the date of signing and shall remain in
effect until 4:00 p.m. on May 1, 2012, and the same shall automatically renew itself from
year to year thereafter unless either party shall have given the other written notice of
desired changes or termination at least sixty (60) days before the anniversary date.
	 
	 	b)	 	This Agreement is in full settlement of all contractual issues in dispute between the
COMPANY and the UNION. The parties acknowledge that during the negotiations which
resulted in this Agreement, each had the unlimited right and opportunity to make demands
and proposals with respect to any subject or matter not removed by law from the area of
collective bargaining, and that the understanding and agreements arrived at by the
parties after the exercise of that right and opportunity are set forth in this Agreement.
	 
	 	c)	 	The COMPANY and UNION also agree that any subsequent agreement reached within the
duration of this Agreement will be in compliance with applicable Federal laws,
regulations, guidelines and standards.
	 
	 	d)	 	The UNION and Sterling agree that all pending and unsettled grievances will be subject
to the Grievance and Arbitration Process (including all timeliness and other defenses
permitted by the either the expired or new Agreement) and will not be 

38

 

	 	 	 	affected in any way
by Article 32(b) of the Agreement. The parties further agree that all pending unfair
labor practice charges will not be affected in any way by Article 32(b) of the Agreement.
The parties further agree that the Return to Work agreement dated September 11, 2002
will not be rendered unenforceable by the terms of this Article.

39

 

	 	 	 	 	 
	81

	 	Contract Period: May 1, 2007 to May 1, 2012	 	 
	 
	 	 	 	 
	 

	 	STERLING CHEMICALS, INC.	 	 
	 
	 	 	 	 
	 

	 	 

Sr. V.P., Manufacturing
	 	 
	 
	 	 	 	 
	 

	 	 

Human Resources Manager
	 	 
	 
	 	 	 	 
	 

	 	TEXAS CITY, TEXAS METAL TRADES COUNCIL AFL-CIO	 	 
	 
	 	 	 	 
	 

	 	 

President
	 	 
	 
	 	 	 	 
	 

	 	Electrical Workers Local No. 527	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Operating Engineers No. 564	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	International Association of Machinists No. 6	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 

40

 

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41

 

EXHIBIT A

TWELVE-HOUR SHIFT AGREEMENT

42

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

This Agreement is applicable to Groups 1, 2, and 4 employees assigned to the 12H Shift Schedule
(designated 12H). In addition, only those Articles, Appendices and Letters of Understanding
specifically cited herein are modified by this Agreement. Those provisions in the basic
agreement not addressed here remain effective for all employees affected by this Agreement as
well as all other represented employees.

The COMPANY will not relinquish its rights to determine hours and schedules of work except as
specifically limited in the Articles of Agreement. It is expressly provided, however, that the
COMPANY for legitimate business cause, may cause the discontinuance of the use of the 12H Shift
with at least ninety (90) days notice of the effective date of such discontinuance.

Day Jobs

Straight day employment shall be determined on the basis of senior qualified.

Extra Operators

Employees in excess of the department’s minimum staffing needs may be defined as “extra”. Extra
employees will not receive pay at time-and-one-half (1-1/2) premium for shift changes where
notice was received more than twenty-four (24) hours in advance of the start of the new shift.

Wages

The hourly wage rate of an employee assigned to the 12H Rotating Shift Schedule must be adjusted
so as to provide the annual earnings under the 12H Shift arrangement which shall equal that
which the employee would have earned under the 8-Hour Rotating Schedule if he/she worked an
equal number of hours.

This adjustment is necessary due to the requirement of paying overtime hours over eight (8) in a
scheduled work day, and on holidays.

Under the 12H Schedule, an employee will work eight (8) hours at the straight time rate and four
(4) hours at the time and one-half premium rate. To make the earnings for 12 hours of work
equal to that which the employee would have earned at the straight time rate, the eight-hour
(regular negotiated) rate must be reduced by multiplying said rate by a factor of 0.8685, and
then rounding to the nearest penny.

The contractual wage rate of the various classifications affected by the 12H Shift arrangement
shall, as applies to those regularly assigned to the 12H Schedule, be reduced by a factor of
0.8685. Calculation of the 0.8685 factor and the application of the adjusted rate are attached
at the end of this Exhibit. Premium pay practices for holidays and shift differential, and pay
continuation practice for vacation, jury duty, etc. are attached in order by Article and
Section.

EXHIBIT A

43

 

TWELVE HOUR SHIFT AGREEMENT

After consultation with the UNION, the COMPANY may, at it’s discretion, change the calculation
formula and/or factor for determining the twelve-hour wage rate, provided that employees are
given at least a thirty (30) day notice and such a change does not result in a reduction and/or
loss of pay.

Employee Benefit Plans

The COMPANY will make SIP matching contributions for 12H shift employees in accordance with
Exhibit C.

Life Insurance, and Disability Benefits will be calculated on 2080 annual hours at the
unadjusted rate with no benefit payment difference for an 8-hour or 12H Shift employee with
similar service for the COMPANY.

Under the Pension Plan, the scheduled 104 hours of overtime in the 12 Hour Shift Schedule are
applied in the calculation for bargaining unit average overtime.

Overtime

Operation on the 12H Shift (versus the 8 hour shift) prevents employees from covering a vacant
shift by holding over one-half of the shift and by the next shift coming in early (total of 18
hours), or doubling over both shifts (total of 24 hours). Therefore, the majority of overtime
will have to be covered by employees on the their days off.

The Overtime Agreement will be used throughout all the affected groups, including day workers in
those areas where 12H Shift employees work

Overtime coverage will be provided on a voluntary basis as described below until an overtime
group fails to meet its commitment to staff its respective unit around-the-clock. If a
voluntary system fails to provide the necessary coverage, an alternate system will be initiated
as required. A mandatory on-call system will be implemented if the voluntary system fails to
produce the number of people required for overtime coverage.

	 	•	 	The 12H Shift will make some changes necessary in the overtime procedures.
	 
	 	•	 	Normally, it will be necessary to cover vacant shift with persons on the off
shifts.
	 
	 	•	 	Overtime procedures are included in the document for all affected groups.
	 
	 	•	 	The UNION agrees to a firm commitment to staff the plant.

As a general practice, overtime will be pre-scheduled however practical by scheduling the off
shift for all known overtime before each shift’s days off. If there are no volunteers, the low
person will be forced to work overtime. The COMPANY will attempt up to twelve (12) hours before
overtime is to begin to get the lower off shift person.

44

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

Employees who are forced out on overtime and work up to or into their regular shift, shall be
excused from work on their regular shift without pay, once the employee has performed twelve
(12) hours of continuous work if the employee so requests.

It is recognized that with a 12 Hour Schedule, it is no longer possible for an employee to “hold
over” one-half (1/2) the shift and another employee to come in early one-half (1/2) the shift
(total of 18 hours each), or “double over” (total of 24 hours). An employee cannot be forced to
work more than sixteen (16) consecutive hours.

Operators who work 8-hour day shift schedules in the overtime group, will comply with this
procedure on weekends and holidays.

When it is necessary to provide overtime coverage by calling in an employee, a change in the
overtime procedure is necessary to ensure adequate staffing of the plant. A call-in list would
provide names of employees eligible to work the 12 hours (i.e., capable of working the full
shift without interfering with their next scheduled shift). The employee with the lowest number
of hours would be contacted first, and on through the list.

An employee who accepts an overtime assignment, can later turn it down; however, he/she will
still be required to work unless another qualified employee (not the standby or forced person)
volunteers to work. Volunteers will not be sought later than four (4) hours prior to the start
of the shift.

When it is necessary to provide overtime coverage by calling in an employee, the following
procedure shall be followed:

	1)	 	Call the low person off shift who is eligible to perform the job. The first person contacted
by telephone may refuse the assignment, but if he/she refuses, he/she will be informed that
he/she is in the “forced” position. If subsequent calls to other persons fail to produce
volunteers, then the “forced” persons will be required to report to work.
	 
	2)	 	If the list of low persons off shift fails to produce the staffing necessary, the following
procedure shall be followed:

	 	a)	 	Force the on shift low person(s) on holdover for up to four (4) hours.
	 
	 	b)	 	Force out low person on-coming shift for up to four (4) hours.
	 
	 	c)	 	When necessary to do this, the middle four (4) hours will be covered as the COMPANY
sees fit.
	 
	 	d)	 	This constitutes a breakdown in the voluntary system and may lead to the Mandatory
Procedure.

EXHIBIT A

45

 

TWELVE HOUR SHIFT AGREEMENT

	 	3)	 	In those situations where it is anticipated that the overtime required on a job shall
not exceed eight (8) hours duration, the overtime will be offered to those employees
present in the plant or to the on-coming shift rather than calling out the off shift.

Mandatory Overtime Procedure

Should the voluntary overtime system fail to provide coverage for overtime in an overtime area,
the COMPANY will review the circumstances and decide if the voluntary system will continue to
fail. If so determined, then the following Mandatory Overtime Procedure and standby system will
be initiated.

	1)	 	The primary shift (shift on short days off) and the secondary shift (shift on 8-day long
change) will provide the needed personnel for standby. A volunteer list will be posted for
employees desiring to stand by for overtime on shift as they desire.
	 
	2)	 	The number of standby personnel will be determined by management, dependent on training, job
flexibility and the number of jobs per overtime area, but will be kept to the minimum necessary.
Standby duties shall be rotated on an equitable basis among all employees of the overtime group
and will be for the entire off period. It is preferred that different standby personnel be
scheduled for coverage of the day and night shift, of an off period. Standby lists will be
posted prior to the beginning of the employee’s days off.
	 
	3)	 	The personnel on standby will not be scheduled for known overtime.
	 
	4)	 	It will be the responsibility of the person(s) on standby to be available by phone between
3:30 a.m. and 6:30 a.m. and/or 3:30 p.m. and 6:30 p.m. If the standby personnel are not at
home, it is their responsibility to let the appropriate on-duty person know where they can be
reached. Standby personnel may, at the employee’s option, check out a pager prior to the start
of their standby period in order to facilitate communication. However, when pagers are
unavailable, the standby employee will comply with the mandatory overtime procedure. The
employee is responsible for verifying that the pager is working.
	 
	5)	 	The person(s) on standby should be prepared to report to work by the beginning of the shift.

46

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

Charging of Overtime

An employee, who is contacted and refuses overtime, will be charged the total
hours paid for such overtime.

ARTICLE 3

HOURS OF WORK

Section 1

Work day will be defined as a consecutive twenty-four (24) hour period
beginning at 6:30 a.m.

12H Shift Workers

Twelve (12) consecutive hours of work per day shall constitute a days work.
Day shift will be from 6:30 a.m. to 6:30 p.m. and night shift will be from 6:30
p.m. to 6:30 a.m. The payroll week for employees on the 12H Shift starts at
6:30 p.m. Thursday, and runs until 6:30 p.m. the
following Thursday. The payroll day starts at 6:30 p.m. and runs until 6:30
p.m. of the following day. Shift workers are permitted sufficient time to eat
during their shift without loss of pay for such period.

The 12H Shift Schedule will be as follows:

	 	 	 
	 

	 	Four           12-Hour Days
	 
	 	 
	 

	 	Two Days Off
	 
	 	 
	 

	 	Three           12 Hour Nights
	 
	 	 
	 

	 	Two Days Off
	 
	 	 
	 

	 	Three           12-Hour Days
	 
	 	 
	 

	 	Two Days Off
	 
	 	 
	 

	 	Four           12-Hour Nights
	 
	 	 
	 

	 	Eight           Days Off

47

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

ARTICLE 4

OVERTIME AND HOLIDAYS

Section 1

	a)	 	An employee shall be paid at the rate of one and one-half (1-1/2) times his adjusted rate for
hours worked over eight (8) and up to twelve (12) and at a rate of one and one-half (1-1/2)
times his unadjusted rate for hours worked in excess of twelve (12) within a given twenty-four
(24) hour payroll day.
	 
	b)	 	For 12H Shift Workers, time worked in excess of their weekly scheduled hours (36 or 48),
shall be paid at the rate of one and one-half (1-1/2) times the unadjusted base rate of pay.

Section 3

Holiday and Holiday Pay

All holidays listed in the Articles of Agreement will be recognized. Holiday Pay provisions begin
at 6:30 a.m. on the day of the holiday.

Employees assigned to the 12H Shift Schedule shall receive the following pay for holidays:

	1)	 	For holiday not worked: 8 hours times a premium factor of 1.151 times the adjusted hourly
rate.
	 
	2)	 	For all regularly scheduled hours worked on a holiday: 2.879 times the employee’s adjusted
hourly rate.

	 	a)	 	For holiday hours worked outside the regular schedule, when it occurs on the same
shift as the last regularly scheduled shift worked: 1.5 times the unadjusted rate times
hours worked during the first 8 hours of the shift, plus 2.5 times the unadjusted rate
times hours worked during the last four hours of the shift, plus Item No. 1 above.
	 
	 	b)	 	For holiday hours worked outside the regular schedule, when it occurs on the opposite
shift as the last regularly scheduled shift worked: 2.5 times the unadjusted rate plus
Item No. 1 above.

All other provisions in the Articles of Agreement concerning holidays and holiday pay shall
continue to apply.

48

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

Section 5

Shift Differential

For employees assigned to the 12H Shift, the contractual rate of shift differential will be amended
to provide:

	•	 	6:30 a.m. to 6:30 p.m. — no differential
	 
	•	 	6:30 p.m. to 6:30 a.m. — $1.00 differential (adjusted where applicable — 87.7 cents)

Employees assigned to the 12H Shift Schedule shall receive the following shift differential pay for
holidays and when working outside the regular 12H Schedule:

	•	 	For regularly scheduled hours worked on the night shift of a
holiday: 2.879 times the adjusted shift differential rate of 87.7
cents.
	 
	•	 	For hours worked on the night shift outside the schedule on a
holiday: 2.5 times the contractual rate of $1.00.
	 
	•	 	For all hours worked on the night shift outside the regular
schedule, excluding holidays: 1.5 times $1.00.
	 
	•	 	For holidays not worked: No shift differential.
	 
	•	 	For the night shift of the last scheduled day of rest worked (if
all days of rest worked): 2.0 times $1.00.
	 
	•	 	After consultation with the UNION, the COMPANY may, at its
discretion, eliminate the shift
differential premium by splitting it equally and applying to both shifts, provided that
employees are given at least a thirty (30) day notice and such change does not result in a
decrease in pay over a full 28 day rotation cycle that includes no holidays.

ARTICLE 5

VACATION

The vacation policy will allow 8-hours excused absence to be taken during a 48-hour work week in
conjunction with 40 hours vacation to fill out the period between days off.

Remnant hours (4 or 8 hours remaining at the end of the vacation year) may be used, at the
employee’s discretion as follows:

49

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

	a)	 	Take off with pay in conjunction with time off without pay, totaling 12 hours. This does not
constitute an additional bank day.
	 
	b)	 	Take pay in lieu of vacation (at the adjusted hourly rate).
	 
	c)	 	A twelve (12) hour shift employee may opt to work his/her shift and take remnant hours (four
(4) or eight (8) hours) at the beginning or end of their respective shift. This must be
scheduled in advance to allow for proper coverage of the shift. This does not constitute an
additional bank day.
	 
	d)	 	When it becomes known in advance that an employee has remnant vacation hours he/she may
request to schedule these prior to the end of the vacation year, but only if all other
vacation has been used.

Section b)

The vacation pay, for employees entitled to vacation, is computed on the basis of eight (8) hours
times the adjusted hourly rate plus four (4) hours at time and one-half the adjusted hourly rate
for each twelve-hour shift taken as vacation.

Section e)

An employee may place up to six (6) shifts (72 hours) of their vacation in a vacation bank prior to
January 1 with such days to be taken at any time during the vacation year when requested by the
employee. Three (3) bank days (36 hours) may be taken with one (1) hours notice. Thirty (30)
hours notice for the other three (3) bank days (36) hours will be required except in cases of
emergencies.

An employee will be allowed to convert one (1) 12 H bank day to three (3) four hour bank days to be
taken at the beginning or end of a shift, within a vacation year. All three (3) four hour bank
days must be used or lost. They cannot be treated as remnants. These bank days must be scheduled
with thirty (30) hours notice and supervisor approval. No overtime meals will be

granted for employees covering four hour bank days.

The employee exercising the four hour bank day will be responsible for finding coverage for the
opening within the overtime guidelines.

This will be implemented for a one (1) year trial period and after that year will be continued with
agreement between the UNION and the COMPANY.

An employee is entitled to one split for each forty (40) hours of vacation earned.

50

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

Section m)

When a holiday is observed on an employee’s scheduled vacation day, they will have the option of an
extra day vacation or eight (8) hours pay at 1.151 times the adjusted hourly rate.

ARTICLE 6

SENIORITY

Section 9

Job Bidding Procedure

Job Posting: The job vacancy will be posted for eleven (11) calendar days at each of the main
gates and on departmental bulletin boards within the plant.

ARTICLE 16

JURY SERVICE

Employees on the day shift (6:30 a.m. to 6:30 p.m.) are not required to report back to work if
dismissed from court duty at or after 12:30 p.m. Employees dismissed before 12:30 p.m. are
required to report for work and complete the work day. COMPANY has the option to utilize the
overtime replacement or to send them home. Employees on the night shift (6:30 p.m. to 6:30 a.m.)
are not required to report for work if jury service commences less than eight (8) hours from the
end of the last shift, or if jury service is terminated less than eight (8) hours before the
beginning of the next shift.

Jury duty pay for hours excused as provided above shall be: first eight (8) hours of a shift
excused shall be at the adjusted rate and all hours excused after eight (8) hours shall be at one
and one-half (1-1/2) times the adjusted rate.

ARTICLE 25

FUNERAL LEAVE

Employees will be given up to three (3) consecutive 12-hour days off, one (1) of which must be the
day of the funeral. Employees will be paid for funeral leave days at eight (8) hours times the
adjusted hourly rate plus four (4) hours at time and one-half (1-1/2) the adjusted hourly rate.

51

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

ARTICLE 30

OCCUPATIONAL & NON-OCCUPATIONAL

ACCIDENT AND SICKNESS PLAN

Section 4

The plan will provide benefit payments for 12H Shift employees, based on the unadjusted hourly
rate, exclusive of all premium pay, times 0.9524.

The COMPANY will provide benefits to a 12H Shift employee in an amount to equal 90% of the
employee’s adjusted base earnings for work time lost due to non-occupational disability. The
adjusted base will be calculated by multiplying 0.9524 times the unadjusted hourly rate times the
hours lost. The benefits for occupational disability will be equal to 100% of the employee’s
adjusted base earnings for work time lost.

WAGE ADJUSTMENT

Wage Adjustment

The intent of wage adjustment is to adjust hourly wage rate and shift differential so the 12H
schedule can be paid within contractual premium agreements and:

	1)	 	Cause the employee no loss of earnings.
	 
	2)	 	Pay the employee at least a 1.5 premium for the additional 104 hours per year in the 12H
schedule versus the existing 8-hour schedule, and
	 
	3	 	Keep the total cost of the 12H schedule at approximately the same cost of the 8-hour
schedule.

Hours Worked and Paid Under 8-Hour and 12-Hour Shift Schedule

Presently, shift employees are scheduled to work an average of 2080 hours per year. With a 12H
shift, employees will be scheduled to work an average of 2,184 hours per year. Therefore, pay
practices for the 12H shift must be calculated as if the employee were working an additional 104
hours at least a 1.5 premium.

52

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

	A)	 	Average annual earnings on the present 8-hour schedule, based on 2080 hours worked.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	Premium	 	Hours
	Type	 	Worked	 	Factor	 	Paid
	Total S/T Worked (excl. holidays)
	 	 	2,017.1	 	 	 	1.0	 	 	 	2,017.1	 
	Scheduled Holiday (Avg. = 7.86 days)
	 	 	62.9	 	 	 	2.5	 	 	 	157.1	 
	Holiday Off Hours (Avg. = 3.14 days)
	 	 	(25.1	)	 	 	1.0	 	 	 	25.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	2,080.0	 	 	 	 	 	 	 	2,199.3	 

	 	 	Earnings = 2,199.3 ($16.73) = $36,794.29
	 
	B)	 	Average annual earnings under an 8-hour, 2,184-hour schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	Premium	 	Hours
	Type	 	Worked	 	Factor	 	Paid
	Total S/T Worked (excl. holidays)
	 	 	2,017.1	 	 	 	1.0	 	 	 	2,017.1	 
	Additional hours at 1.5 premium
	 	 	100.9	 	 	 	1.5	 	 	 	151.4	 
	Scheduled Holiday (Avg. = 8.25 days)
	 	 	66.0	 	 	 	2.5	 	 	 	165.0	 
	(includes 3.1 additional hours)
Holiday Off Hours (Avg. = 2.75 days)
	 	 	(22.0	)	 	 	1.0	 	 	 	22.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	2,184.0	 	 	 	 	 	 	 	2,355.5	 

	 	 	Earnings = 2,355.5 ($16.73) = $39,407.52
	 
	C)	 	Average annual earnings under the 12H, 2,184-hour schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	Premium	 	Hours
	Type	 	Worked	 	Factor	 	Paid
	Scheduled S/T (excl. holidays)
	 	 	1,412	 	 	 	1.0	 	 	 	1,412.0	 
	Scheduled O/T (excl. holidays)
	 	 	706	 	 	 	1.5	 	 	 	1,059.0	 
	Holiday Hours (Avg. 5.5 days)
	 	 	66	 	 	 	2.879	 	 	 	190.0	 
	Holiday Off Hours (Avg. 5.5 days)
	 	 	(44	)	 	 	1.151	 	 	 	50.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	2,184	 	 	 	 	 	 	 	2,711.6	 

	 	 	Annual earnings are the same as in Case B = $39,407.52

	 	 	 	 	 	 	 	 	 
	Wage Rate

	 	=
	 	$39,407.52
	 	=
	 	$14.53
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	2,711.6	 	 	 	 

53

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

	 	 	Ratio of 12H rate to 8-hour rate =

	 	 	 	 	 	 	 	 	 	 	 
	$16.73
	 	=
	 	1.151
	 	$14.53
	 	=
	 	0.8685
	 
	 	 	 	 	 	 	 	 	 	 
	$14.53
	 	 	 	 	 	$16.73	 	 	 	 

	 	 	Earnings 2,711.6 ($14.53) = $39,399.55

Shift Differential

Currently, shift employees receive shift differential for working the evening and midnight shifts.
When premium rates apply to hours worked, the same premium is applied to shift differential.

Under the 12H shift, shift differential will be paid for the night shift only, therefore, the rate
must be adjusted to keep annual earnings the same. Shift differential will continue to be increased
by premium rates, and will continue to be paid only for hours worked.

	 	A)	 	Average Annual Shift Differential under the present 8-hour schedule, based on 2,080 hours
worked:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	 	Premium	 	 	Hours	 	 	 	 	 	 	 
	Type	 	Worked	 	 	Factor	 	 	Paid	 	 	Rate	 	 	Earnings	 
	Eve Shift (excl. holidays)
	 	 	672.4	 	 	 	1.0	 	 	 	672.4	 	 	$	0.50	 	 	$	336.20	 
	Mid Shift (excl. holidays)
	 	 	672.4	 	 	 	1.0	 	 	 	672.4	 	 	$	1.00	 	 	$	672.40	 
	Holiday Eve Shift
	 	 	21.0	 	 	 	2.5	 	 	 	52.5	 	 	$	0.50	 	 	$	26.25	 
	Holiday Mid Shift
	 	 	21.0	 	 	 	2.5	 	 	 	52.5	 	 	$	l.00	 	 	$	52.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,087.35	 

	 	B)	 	Average Annual Earnings on the present 8-hour schedule, based on 2,184 hours worked:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	 	Premium	 	 	Hours	 	 	 	 	 	 	 
	Type	 	Worked	 	 	Factor	 	 	Paid	 	 	Rate	 	 	Earnings	 
	Eve Shift S/T
(excl. holidays)
	 	 	672.4	 	 	 	1.0	 	 	 	672.4	 	 	$	0.50	 	 	$	336.20	 
	Eve Shift O/T
(excl. holidays)
	 	 	33.6	 	 	 	1.5	 	 	 	50.4	 	 	$	0.50	 	 	$	25.20	 
	Mid Shift S/T
(excl. holidays)
	 	 	672.4	 	 	 	1.0	 	 	 	672.4	 	 	$	1.00	 	 	$	672.40	 
	Mid Shift O/T
(excl. holidays)
	 	 	33.6	 	 	 	1.5	 	 	 	50.4	 	 	$	1.00	 	 	$	50.40	 
	Holiday Eve Shift
	 	 	22.0	 	 	 	2.5	 	 	 	55.0	 	 	$	0.50	 	 	$	27.50	 
	Holiday Mid Shift
	 	 	22.0	 	 	 	2.5	 	 	 	55.0	 	 	$	l.00	 	 	$	55.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,166.70	 

54

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

	 	C)	 	Average Annual Shift Differential on the 12H shift schedule, based on 2,184 hours worked:

The 12H shift differential rate (unadjusted) is calculated as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8-Hour Schedule	 	 	12H Scheduled
	Days
	 	$0.00/hr. * 8	 	 	=	 	 	$	0.00	 	 	Days	 	 	—	 	 	No differential
	Eves.
	 	$0.50/hr. * 8	 	 	=	 	 	$	4.00	 	 	Nights	 	 	—	 	 	$12.12 hr. = $1.00/hr
	Mid
	 	$1.00/hr. * 8	 	 	=	 	 	$	8.00	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	12.00	/day 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours	 	 	Premium	 	 	Hours	 	 	 	 	 	 	 
	Type	 	Worked	 	 	Factor	 	 	Paid	 	 	Rate	 	 	Earnings	 
	S/T Night Shift
(excl. holidays)
	 	 	706	 	 	 	1.0	 	 	 	706.0	 	 	$	1.00	 	 	$	706.00	 
	O/T Night Shift
(excl. holidays)
	 	 	353	 	 	 	1.5	 	 	 	529.5	 	 	$	1.00	 	 	$	529.50	 
	Holiday Night Shift
	 	 	33	 	 	 	2.879	 	 	 	95.0	 	 	$	1.00	 	 	$	95.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	1,330.5	 	 	 	 	 	 	$	1,330.50	 

	 	 	 	Therefore, the negotiated shift differential must be adjusted by:

	 	 	 	 	 	 	 
	$1,166.70

	 	=
	0.877	 	 	 
	 	 	 	 	 	 	 
	$1,330.50	 	 	 	 	 	 

	 	 	 	to keep annual earnings the same.
	 
	 	 	 	Annual Earnings = $1,330.5 (0.877) $1,166.85

Summary — Combined Annual Earnings

	 	A)	 	Under present 8-Hour (2,080 hours) schedule:

	 	 	 	 	 
	Straight Time, O/T & Holiday Wages
	 	$	36,794.29	 
	Shift Differential
	 	 	1,087.35	 
	 
	 	 	 
	 
	 	$	37,881.64	 

	 	B)	 	Under an 8-hour (2,184 hours) schedule:

	 	 	 	 	 
	S/T, O/T & Holiday Wages
	 	$	39,407.52	 
	Shift Differential
	 	 	1,166.70	 
	 
	 	 	 
	 
	 	$	40,574.22	 

55

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

	 	C)	 	Under the 12H (2,184 hours) schedule:

	 	 	 	 	 
	S/T, O/T & Holiday Wages
	 	$	39,399.55	 
	Shift Differential
	 	 	1,166.85	 
	 
	 	 	 
	 
	 	$	40,566.40	 

Pay Rates

     Premiums under the 12-hour schedule will be as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	A)	 	Straight time hours as part
	 	1.0	 	 	x	 	 	12 hour base	 	 	 	 	 	 
	 	 	of the regular schedule
	 	1.0	 	 	x	 	 	$14.53	 	=	 	$	14.53	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	B)	 	Overtime hours as part
	 	1.5	 	 	x	 	 	12 hour base	 	 	 	 	 	 
	 	 	of the regular schedule
	 	1.5	 	 	x	 	 	$14.53	 	=	 	$	21.80	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	C)	 	Hours worked beyond 12.
	 	1.5	 	 	x	 	 	$16.73	 	=	 	$	25.10	 
	 	 	or
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours worked outside
regular schedule.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	or
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Hours worked for schedule
change outside contract
notice.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	D)	 	Hours worked on last
	 	2.0	 	 	x	 	 	$16.73	 	=	 	$	33.46	 
	 	 	schedule day of rest (if
all days of rest worked
that week).
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	E)	 	Hours worked on scheduled
	 	2.879	 	 	x	 	 	12 hour base	 	 	 	 	 	 
	 	 	holiday up to 12 hours.
	 	2.879	 	 	x	 	 	$14.53	 	=	 	$	41.83	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	F)	 	Hours worked on holiday
	 	2.5	 	 	x	 	 	$16.73	 	=	 	$	41.83	 
	 	 	outside regular schedule
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G)	 	Vacation Pay, Jury Duty,
	 	8 Hrs.	 	 	x	 	 	12-Hour base	 	 	 	 	 	 
	 	 	Funeral Pay, etc.
	 	+ 4 Hrs.	 	 	x	 	 	1.5 x 12-Hour base	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	H)	 	Holiday not worked (8 hours)
	 	1.151	 	 	x	 	 	$14.53	 	=	 	$	16.72	 

56

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

EXAMPLE OF SICKNESS PLAN CALCULATIONS

	 	 	 	 	 
	Basis: 2-Week Sickness
	 	 	 	 
	 
	 	 	 	 
	Ratio of 8-Hour to 12-Hour Schedules
	 	 	 	 
	 
	 	 	 	 
	80-Hours/2 Weeks
	 	=	0.9524	 
	84-Hours/2 Weeks
	 	 	 	 
	 
	 	 	 	 
	40-Hour Weeks — Current Schedule
	 	 	 	 
	 
	 	 	 	 
	40 x 2 x $16.73 x 0.90
	 	= $	1,204.56	 
	 
	 	 	 	 
	36/48-Hour Weeks - 12H Schedule
	 	 	 	 
	(36 + 48) x $16.73 x 0.9524 x 0.90
	 	= $	1,204.58	 
	 
	 	 	 
	 
	 	 	 	 
	Difference
	 	= $	0.02	 
	 
	 	 	 

57

 

EXHIBIT A

TWELVE HOUR SHIFT AGREEMENT

January 31, 1991

Interpretation of Attachment E

12 Hour Shift, Operations Overtime Agreement

Page 20 applies to scheduled overtime, and

Page 21 applies to call-out overtime

SCHEDULED OVERTIME, Attachment E Page 20

It is our intent to inform people, by their last work day, of any scheduled overtime needs known to
exist during their off days. Adequate notice should be provided when scheduled overtime wants to
be turned down so that coverage can be arranged no later than 12 hours prior to the start of the
overtime period. If no replacement can be arranged, the employee remains scheduled for the
overtime assignment.

CALL-OUT OVERTIME, Attachment E Page 21

It is our intent to arrange for overtime coverage as far in advance as possible, once a need has
been identified. Less than a 4-hour notice should be necessary only when short notice illness,
emergency, or 1-hour day bank day requests are received. Therefore, a crew on off days will be
contacted as soon as possible once a vacancy exists. Each department can determine an appropriate
method to contact people for overtime coverage.

If a person accepts a call-out overtime assignment, he can later turn it down, if coverage can be
arranged no later than 4 hours prior to the start of the overtime period.

	 	 	 	 	 
	/s/ P. J. Pollock

	 	 	 	/s/ Wayne R. Parker
	 

	 	 	 	 
	FOR THE UNION

	 	 	 	FOR THE COMPANY
	 
	 	 	 	 
	6/2/93

	 	 	 	6/2/93
	 

	 	 	 	 
	DATE

	 	 	 	DATE

58

 

EXHIBIT B

WAGE RATES

Top Rates

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	I&E
	 	 	27.82	 	 	 	10	%	 	 	30.60	 	 	 	4	%	 	 	31.83	 	 	 	4	%	 	 	33.10	 	 	 	4	%	 	 	34.42	 	 	 	4	%	 	 	35.80	 
	Machinists
	 	 	27.60	 	 	 	10	%	 	 	30.36	 	 	 	4	%	 	 	31.57	 	 	 	4	%	 	 	32.84	 	 	 	4	%	 	 	34.15	 	 	 	4	%	 	 	35.52	 
	Outside Operator
	 	 	26.01	 	 	 	10	%	 	 	28.61	 	 	 	4	%	 	 	29.76	 	 	 	4	%	 	 	30.95	 	 	 	4	%	 	 	32.18	 	 	 	4	%	 	 	33.47	 
	Material Handler
	 	 	24.52	 	 	 	10	%	 	 	26.97	 	 	 	4	%	 	 	28.05	 	 	 	4	%	 	 	29.17	 	 	 	4	%	 	 	30.34	 	 	 	4	%	 	 	31.55	 
	Lab Analyst
	 	 	24.52	 	 	 	10	%	 	 	26.97	 	 	 	4	%	 	 	28.05	 	 	 	4	%	 	 	29.17	 	 	 	4	%	 	 	30.34	 	 	 	4	%	 	 	31.55	 
	
New Hire Progressions*

	

 

 
	*Note:  The COMPANY will determine the appropriate starting point within the related progression for each new hire based on the individual’s
experience level and education.

	 
	Outside Operator:	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	Start
	 	 	18.21	 	 	 	10	%	 	 	20.03	 	 	 	4	%	 	 	20.83	 	 	 	4	%	 	 	21.67	 	 	 	4	%	 	 	22.53	 	 	 	4	%	 	 	23.43	 
	End of 12 Months
	 	 	20.81	 	 	 	10	%	 	 	22.89	 	 	 	4	%	 	 	23.81	 	 	 	4	%	 	 	24.76	 	 	 	4	%	 	 	25.75	 	 	 	4	%	 	 	26.78	 
	End of 24 Months
	 	 	23.41	 	 	 	10	%	 	 	25.75	 	 	 	4	%	 	 	26.78	 	 	 	4	%	 	 	27.85	 	 	 	4	%	 	 	28.97	 	 	 	4	%	 	 	30.13	 
	End of 36 Months
(Journeyman Rate)
	 	 	26.01	 	 	 	10	%	 	 	28.61	 	 	 	4	%	 	 	29.76	 	 	 	4	%	 	 	30.95	 	 	 	4	%	 	 	32.18	 	 	 	4	%	 	 	33.47	 
	 
	Pumper Gauger:	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	Start
	 	 	17.16	 	 	 	10	%	 	 	18.88	 	 	 	4	%	 	 	19.63	 	 	 	4	%	 	 	20.42	 	 	 	4	%	 	 	21.23	 	 	 	4	%	 	 	22.08	 
	End of 12 Months
	 	 	19.62	 	 	 	10	%	 	 	21.58	 	 	 	4	%	 	 	22.45	 	 	 	4	%	 	 	23.34	 	 	 	4	%	 	 	24.28	 	 	 	4	%	 	 	25.25	 
	End of 24 Months
	 	 	22.07	 	 	 	10	%	 	 	24.28	 	 	 	4	%	 	 	25.25	 	 	 	4	%	 	 	26.26	 	 	 	4	%	 	 	27.31	 	 	 	4	%	 	 	28.40	 
	End of 36 Months
(Journeyman Rate)
	 	 	24.52	 	 	 	10	%	 	 	26.97	 	 	 	4	%	 	 	28.05	 	 	 	4	%	 	 	29.17	 	 	 	4	%	 	 	30.34	 	 	 	4	%	 	 	31.55	 
	 
	Lab Analyst:	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	Start
	 	 	17.16	 	 	 	10	%	 	 	18.88	 	 	 	4	%	 	 	19.63	 	 	 	4	%	 	 	20.42	 	 	 	4	%	 	 	21.23	 	 	 	4	%	 	 	22.08	 
	End of 12 Months
	 	 	19.62	 	 	 	10	%	 	 	21.58	 	 	 	4	%	 	 	22.45	 	 	 	4	%	 	 	23.34	 	 	 	4	%	 	 	24.28	 	 	 	4	%	 	 	25.25	 
	End of 24 Months
	 	 	22.07	 	 	 	10	%	 	 	24.28	 	 	 	4	%	 	 	25.25	 	 	 	4	%	 	 	26.26	 	 	 	4	%	 	 	27.31	 	 	 	4	%	 	 	28.40	 
	End of 36 Months
(Journeyman Rate)
	 	 	24.52	 	 	 	10	%	 	 	26.97	 	 	 	4	%	 	 	28.05	 	 	 	4	%	 	 	29.17	 	 	 	4	%	 	 	30.34	 	 	 	4	%	 	 	31.55	 
	 
	Machinist:	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	Start
	 	 	19.32	 	 	 	10	%	 	 	21.25	 	 	 	4	%	 	 	22.10	 	 	 	4	%	 	 	22.99	 	 	 	4	%	 	 	23.91	 	 	 	4	%	 	 	24.86	 
	End of 12 Months
	 	 	21.39	 	 	 	10	%	 	 	23.53	 	 	 	4	%	 	 	24.47	 	 	 	4	%	 	 	25.45	 	 	 	4	%	 	 	26.47	 	 	 	4	%	 	 	27.53	 
	End of 24 Months
	 	 	23.46	 	 	 	10	%	 	 	25.81	 	 	 	4	%	 	 	26.84	 	 	 	4	%	 	 	27.91	 	 	 	4	%	 	 	29.03	 	 	 	4	%	 	 	30.19	 
	End of 36 Months
	 	 	25.53	 	 	 	10	%	 	 	28.08	 	 	 	4	%	 	 	29.21	 	 	 	4	%	 	 	30.37	 	 	 	4	%	 	 	31.59	 	 	 	4	%	 	 	32.85	 
	End of 48 Months
(Journeyman Rate)
	 	 	27.60	 	 	 	10	%	 	 	30.36	 	 	 	4	%	 	 	31.57	 	 	 	4	%	 	 	32.84	 	 	 	4	%	 	 	34.15	 	 	 	4	%	 	 	35.52	 
	 
	Instrument & Electrical:	 	Current	 	 	 	 	 	5/1/07	 	 	 	 	 	5/1/08	 	 	 	 	 	5/1/09	 	 	 	 	 	5/1/10	 	 	 	 	 	5/1/11
	Start
	 	 	19.47	 	 	 	10	%	 	 	21.42	 	 	 	4	%	 	 	22.27	 	 	 	4	%	 	 	23.16	 	 	 	4	%	 	 	24.09	 	 	 	4	%	 	 	25.05	 
	End of 12 Months
	 	 	21.14	 	 	 	10	%	 	 	23.25	 	 	 	4	%	 	 	24.18	 	 	 	4	%	 	 	25.15	 	 	 	4	%	 	 	26.16	 	 	 	4	%	 	 	27.20	 
	End of 24 Months
	 	 	22.81	 	 	 	10	%	 	 	25.09	 	 	 	4	%	 	 	26.09	 	 	 	4	%	 	 	27.14	 	 	 	4	%	 	 	28.22	 	 	 	4	%	 	 	29.35	 
	End of 36 Months
	 	 	24.48	 	 	 	10	%	 	 	26.93	 	 	 	4	%	 	 	28.01	 	 	 	4	%	 	 	29.13	 	 	 	4	%	 	 	30.29	 	 	 	4	%	 	 	31.50	 
	End of 48 Months
	 	 	26.15	 	 	 	10	%	 	 	28.77	 	 	 	4	%	 	 	29.92	 	 	 	4	%	 	 	31.11	 	 	 	4	%	 	 	32.36	 	 	 	4	%	 	 	33.65	 
	End of 60 Months
(Journeyman Rate)
	 	 	27.82	 	 	 	10	%	 	 	30.60	 	 	 	4	%	 	 	31.83	 	 	 	4	%	 	 	33.10	 	 	 	4	%	 	 	34.42	 	 	 	4	%	 	 	35.80	 

59

 

This page intentionally left blank.

60

 

EXHIBIT C

EMPLOYEE BENEFITS

Except as modified below, the COMPANY agrees to continue to provide employee benefits under
the plans listed below as in effect on May 1, 2007. These benefits will last for the duration of
this agreement and will be subject to change as negotiated in future contracts.

Sterling Chemicals, Inc. Medical Benefits Plan for Hourly-Paid Employees

Sterling Chemicals, Inc. Prescription Drug Benefits Plan for Hourly-Paid Employees

Sterling Chemicals, Inc. Dental Assistance Plan for Hourly-Paid Employees

Sterling Chemicals, Inc. Hourly Employees’ Flexible Spending Account Plan

Sterling Chemicals, Inc. Disability Benefits Plan for Hourly-Paid Employees

Sterling Chemicals, Inc. Group Life Insurance Plan for Hourly-Paid Employees

Sterling Chemicals, Inc. Savings and Investment Plan

Notwithstanding any provision of this Exhibit C, the Articles of Agreement, or otherwise to the
contrary, the COMPANY reserves the right to amend and/or terminate the Hourly Paid Employees’
Pension Plan in accordance with existing laws at any time or times, if the COMPANY determines such
action to be appropriate, in its sole discretion. The COMPANY agrees that any such changes or
termination will not reduce the accrued pension benefits of any participant.

Except as noted above for the Hourly Paid Employees’ Pension Plan, nothing in this Agreement shall
restrict the COMPANY from changing the language in the official plan documents or changing the
providers of plan benefits as long as the benefits provided are not decreased (unless required by
law).

Savings and Investment Plan (SIP): Effective July 1, 2007, the COMPANY will provide
matching contributions equal to 100% of the first 6% of employee contributions made on base pay
for all covered bargaining unit employees, subject to plan provisions already in effect.

Hourly Paid Employees’ Pension Plan: Hourly bargained for employees hired after May 27,
2004, continue to be ineligible to participate in the Hourly Paid Employees’ Pension Plan,
hereinafter referred to as the Hourly Pension Plan. Effective July 1, 2007, the Hourly Pension Plan
will be frozen. This means that participants will no longer receive benefit service credit toward
their pension retirement benefit nor will compensation changes affect their pension retirement
benefit. Active participants will continue to accrue vesting service. In addition, effective July
1, 2007, a participant in the Hourly Pension Plan may, once he or she has attained 62 years of age
and has at least five years of vesting service, elect to take early retirement while continuing to
work for the COMPANY (“In-Service Retirement”). This option is not, however, available for
employees who are receiving sick pay or disability benefits. The monthly benefit for In-Service
Retirement will be determined in the same manner as if the employee actually retired.

Life Insurance and Accidental Death & Dismemberment Insurance (AD&D) Benefits: The COMPANY
will not provide retiree life insurance benefits. Effective May 1, 2007, the COMPANY will provide
$100,000 of AD&D insurance to all active employees.

Dental Premiums: Employee dental premiums will be increased 5% on January 1st of
each year through the expiration of this contract. After-tax payment of premiums is not allowed.

Medical Premiums: Effective January 1, 2005, active employee medical premiums will equal
20% of projected expenses and be based on the medical claims, prescription drug claims and
stop-loss insurance premiums attributable to participants in the active medical plan. After-tax
payment of premiums is not allowed.

PPO Medical Plan: (1) Change coordination of benefits from standard to carve-out. This
means that in situations where the Sterling Medical Plan is secondary, total benefits from both
plans will be limited to
the amount the Sterling Medical Plan would have paid had it been primary. (2) The COMPANY will
increase

61

 

EXHIBIT C

EMPLOYEE BENEFITS

the hearing aid maximum from $750.00 to $1000.00 dollars. (3) Effective January 1, 2008, the
COMPANY agrees to increase the lifetime medical maximum from $1,500,000 to $2,000,000 per
participant. Notwithstanding the foregoing, any medical plan participant who has already received
$1,500,000 in medical benefits prior to January 1, 2008, will not be eligible for these additional
benefits. Additionally, any participant for whom the COMPANY is unable to obtain stop loss
insurance coverage from the low cost stop loss insurance provider without additional cost will not
be eligible for these additional benefits.

HMO Medical Plan: The COMPANY shall make available an HMO for employees. Employee
premiums shall equal 20% of the billed cost to the COMPANY by the HMO. If the COMPANY should
decide to provide HMO benefits on a self-insured basis at a later date, the COMPANY agrees to use a
similar methodology to calculate HMO employee premiums as is used for the PPO plan.

Benefit Exclusions: Effective January 1, 2008, employees may not cover working spouses as
eligible dependents in the COMPANY medical and dental plans (PPO, HMO, Prescription Drugs or
Dental) if the working spouse is eligible for coverage by their employers at any or no cost. An
actionable status verification of non-coverage will be required of all employees who wish to cover
their spouse as an eligible dependent.

Prescription Drugs: Effective January 1, 2008, the prescription drug co-pay for current
employees and employees who retire during the term of this agreement will be 10% on generic drugs,
20% on preferred brand (second tier) drugs and 40% on non-preferred brand (third tier) drugs.

Disability Insurance: Disability income benefits for psychiatric and substance abuse
claims will not be payable beyond 30 months from the initial date of disability.

Retiree Medical Benefits (including prescription drug coverage): Current employees hired
before May 27, 2004 who retire after this agreement is ratified (“Future Retirees”) and who at
retirement are at least age 55 and who have at least 10 years of Vesting Service (as defined in the
Hourly Paid Employees’ Pension Plan), will be eligible to participate in the Sterling Chemicals,
Inc. Medical Benefits Plan for Retirees and the Sterling Chemicals Inc. Prescription Drug Benefits
Plan for Retirees (collectively the “Retiree Medical Plan”) until they reach age 65. When a Future
Retiree enrolled in the Retiree Medical Plan reaches age 65 and therefore loses coverage, he or she
may continue to cover his or her spouse up to age 65 (as long as the marriage continues). When a
Future Retiree enrolled in the Retiree Medical Plan reaches age 65 and therefore loses coverage,
coverage for all dependent children ceases. If a Future Retiree marries or remarries after
retirement, their new spouse is not eligible for coverage under the Retiree Medical Plan.

62

 

EXHIBIT C

EMPLOYEE BENEFITS

Effective January 1, 2008, the COMPANY’S contributions toward the cost of retiree
medical will be as follows:

	 	 	 	 	 	 	 	 	 
	Retiree and spouse both under age 65	 	Current	 	1/1/08
	Retiree only
	 	 	323.72	 	 	 	323.72	 
	Retiree plus spouse
	 	 	712.16	 	 	 	712.16	 
	Retiree plus child(ren)
	 	 	582.69	 	 	 	582.69	 
	Retiree plus family
	 	 	971.14	 	 	 	971.14	 
	 
	 	 	 	 	 	 	 	 
	Retiree and spouse both equal to or over age 65
	 	 	 	 	 	 	 	 
	Retiree only
	 	 	107.90	 	 	not available 
	Retiree plus spouse
	 	 	237.39	 	 	not available
	Retiree plus child(ren)
	 	 	366.88	 	 	not available
	Retiree plus family
	 	 	496.36	 	 	not available
	 
	 	 	 	 	 	 	 	 
	Retiree or spouse under age 65, other one equal to
or over 65
	 	 	 	 	 	 	 	 
	Retiree plus spouse
	 	 	431.62	 	 	not available
	Retiree plus family
	 	 	690.59	 	 	not available
	Retiree only or spouse only
	 	 	—	 	 	 	323.72	 
	Retiree plus children
	 	 	—	 	 	 	582.69	 

The COMPANY shall have the right to modify the prescription drug benefits to take full advantage of
the prescription drug provisions of Medicare. The COMPANY shall be solely responsible for deciding
whether, when and how any changes to prescription drug coverage will take effect.

Employees hired (or rehired) on or after May 27, 2004 will not be eligible to participate
in the Retiree Medical Plan.

Flex Spending: Effective January 1, 2008, forfeitures in the Flex Spending Accounts
(health care and dependent care) will not be reallocated to participants in the plan.

Disclaimer as to Current Retirees: Nothing contained in this Exhibit C (or the new
collective bargaining agreement of which it is a part) shall apply to persons who retired before
May 27, 2004. Any prior contractual commitments, in prior collective bargaining
agreements or otherwise, creating exceptions to the Sterling Chemicals, Inc. Medical Benefits Plan
for Retirees or the Sterling Chemicals, Inc. Prescription Drug Benefits Plan for Retirees,
including but not limited to, medical premium contribution percentages for any individual who
retired prior to the ratification of this agreement, have expired and are not renewed by this
agreement. The COMPANY retains the right to modify, amend, or terminate the Sterling Chemicals,
Inc. Medical Benefits Plan for Retirees and the Sterling Chemicals, Inc. Prescription Drug Benefits
Plan for Retirees as provided in the summary plan description and other plan documents.

The COMPANY will provide Summary Plan Descriptions electronically to employees each year and will
make benefit plan documents available to an employee upon request.

63

 

NO JURISDICTION

SUPPORTING INFORMATION

	1.	 	Operators perform CLAIR, TPM, and minor maintenance.
	 
	 	 	Examples:

	 	•	 	help Machinist pull and install pump
	 
	 	•	 	pull small pump and decontaminate
	 
	 	•	 	pull small control valve up to level of skill and ability
	 
	 	•	 	install and pull blinds for product changeover and to prepare equipment (small
number of blinds)

	2.	 	Maintenance planners plan total hours to perform job.
	 
	3.	 	Maintenance foreman assigns jobs based on skill and ability. You could have crews of all one
craft or mixture of crafts. Crew would secure permits, get necessary materials, communicate
with foreman and operations.

64

 

This page intentionally left blankexv10w6

 

EXHIBIT 10.6

Tenth Amendment to the

Sterling Chemicals, Inc.

Amended and Restated Hourly Paid Employees’ Pension Plan

          Whereas, Sterling Chemicals, Inc. (in its capacity as plan sponsor, the
“Corporation”), currently maintains its Amended and Restated Hourly Paid Employees’ Pension
Plan (as amended, the “Existing Plan”);

          Whereas, pursuant to Section 15.1 of the Existing Plan, the Corporation has the right
to amend the Existing Plan in certain respects; and

          Whereas, the Corporation desires to cease benefit accruals under the Existing Plan
effective as of July 1, 2007 and to provide for the payment of early retirement benefits to working
Participants (as defined in the Existing Plan), as permitted under the Pension Protection Act of
2006, in each case, on the terms and as otherwise provided in this Tenth Amendment to Amended and
Restated Hourly Paid Employees’ Pension Plan (this “Amendment”);

          Now, Therefore, the Existing Plan is hereby amended, effective as of May 1, 2007:

          Section 1. Amendment of Section 1. Section 1 of the Existing Plan is hereby amended
by adding a new Section 1.8 thereto to read in its entirety as follows:

     1.8 Cessation of Benefit Accruals. Notwithstanding anything to the
contrary contained herein, effective as of July 1, 2007, benefit accruals will cease for
all participants, by computing their Monthly Retirement Income as of this date, as if
they had terminated from Service on such date. No Benefit Service will be credited
after July 1, 2007 and Final Average Pay will be computed on the earlier of the date the
participant ceases employment or July 1, 2007. The amount determined as of July 1, 2007
shall be referred to as the “Frozen Benefit.” Each participant will continue to vest in
his Frozen Benefit.

          Section 2. Amendment of Section 3.3 of the Existing Plan. Section 3.3 of the Existing
Plan is hereby amended to read in its entirety as follows:

     0.1 Early Retirement Date. “Early Retirement Date” means:

	 	(a)	 	for a participant who elects to commence payments while he continues in
employment with his Employer before his Normal Retirement Date, the first day of
the month following the later of (i) the month in which he has both attained age 62
years and is vested pursuant to Section 2.2 or (ii) the month in which he makes
written application for an early retirement benefit; or
	 
	 	(b)	 	for a participant who does not elect to commence payments while he continues
in employment with his Employer, the first day of the month following the later

 

 

	 	 	 	of (i) the month in which he has both attained age 55 years and is vested pursuant to
Section 2.2 or (ii) the month in which he makes written application for an early
retirement benefit.

          Section 3. Amendment of Section 4.4 of the Existing Plan. Section 4.4 of the Existing
Plan is hereby amended by adding a new paragraph at the end thereof to read in its entirety as
follows:

If an eligible participant elects to receive his Monthly Retirement Income while
continuing to be employed by his Employer, as permitted under Section 3.3, the amount of
the benefit payable to the participant shall be determined in accordance with the
provisions of this Section based upon the participant’s age and years of Service as of
his Early Retirement Date. The amount of such benefit shall not be adjusted during the
term of the participant’s employment.

          Section 4. Amendment of Section 10 of the Existing Plan. Section 10 of the Existing
Plan is hereby amended by adding a new Section 10.3 thereto to read in its entirety as follows:

     10.3 Election Under Section 3.3(1). Any election to commence payments on
an Early Retirement Date under section 3.3(a) will not be considered to be reemployment
under this Section 10 and a participant who makes such election will not have his
Monthly Retirement Income suspended in accordance with Section 10.

          Section 5. Effect of Amendments. Except as amended and modified by this Amendment,
the Existing Plan shall continue in full force and effect. The Existing Plan and this Amendment
shall be read, taken and construed as one and the same instrument. This Amendment shall supersede
any provisions of the Existing Plan to the extent those provisions are inconsistent with the
provisions of this Amendment. Upon the effectiveness of this Amendment, each reference in the
Existing Plan to “this Plan” or “the Plan” shall mean and be a reference to the Existing Plan as
amended hereby.

          Section 6. Binding Effect. This Amendment shall inure to the benefit of, and shall be
binding upon the Employers (as defined in the Existing Plan) and their successors and assigns and
upon the participants in the Existing Plan and their respective heirs, executors, personal
representatives, administrators, successors and assigns.

          Section 7. Severability. Should any clause, sentence, paragraph, subsection or
Section of this Amendment be judicially declared to be invalid, unenforceable or void, such
decision will not have the effect of invalidating or voiding the remainder of this Amendment, and
the part or parts of this Amendment so held to be invalid, unenforceable or void will be deemed to
have been stricken herefrom as if such stricken part or parts had never been included herein.

          Section 8. Governing Law. To The Extent Not Superseded By The Laws Of The United
States, This Amendment Shall Be Construed and Enforced in Accordance With, and
the Rights of the Parties Shall Be Governed By, the Internal Laws of the State of Texas, Without
Reference to Principles of Conflicts of Law. 

-2-

 

          In Witness Whereof, the Corporation has caused this Amendment to be duly executed in
its name and on its behalf by its proper officer thereunto duly authorized effective as of July 1,
2007.

	 	 	 	 	 
	 	Sterling Chemicals, Inc.

 	 
	 	/s/ Richard K. Crump
 	 
	 	Richard K. Crump, President and Chief 	 
	 	Executive Officer 	 
	 

-3-

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