Document:

Exhibit 10.3

 

BASIC AGREEMENT

BETWEEN

Warner Electric, LLC

and

United Steelworkers

of America

and

Local Union No. 3245

For Contract Years

January 30, 2005 through February 3,
2008

 

 

WARNER ELECTRIC BRAKE
SAFETY POLICY

 

•                                          Safety is our first priority. Safety concerns
must be managed before other business concerns can be successfully
accomplished.

 

•                                          Working safely is a condition of employment. All
employees are required to work safely and follow all safety rules and
regulations.

 

•                                          No job is so important that it cannot be done
safely. Safety precautions must be taken before and during any job.

 

•                                          All injuries can be prevented. With management
taking responsibility to ensure a safe environment and all of us working
safely, this is a realistic goal.

 

•                                          Every employee is responsible for preventing
injuries. When we all work safely, act safely, and report any unsafe condition,
we are doing our part to prevent injuries.

 

•                                          Training employees to work safely is essential.
For every employee to be responsible for safety, he/she must know what safe
conditions, acts, and operations are. To achieve that level of understanding,
appropriate training will be given.

 

•                                          All operating exposures can be safeguarded. To
ensure safe working conditions, all areas or points that are dangerous and
cannot be practically eliminated, will be safeguarded by way of safety devices,
warnings, guards, personal protective equipment or other appropriate means.

 

2

 

INDEX

 

	
  Article

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I

  	
  Intent, Purpose
  and Scope of Agreement

  	
   

  
	
  II

  	
  Recognition

  	
   

  
	
  III

  	
  Hours
  of Work

  	
   

  
	
  IV

  	
  Overtime and Allowed Time

  	
   

  
	
   

  	
  Holidays
  – Paragraph 26

  	
   

  
	
   

  	
  Overtime Distribution –
  Paragraph 30

  	
   

  
	
   

  	
  Call-In/Report-In Pay – Paragraph 34

  	
   

  
	
   

  	
  Bereavement Pay – Paragraph
  35

  	
   

  
	
  V

  	
  Vacations

  	
   

  
	
  VI

  	
  Seniority

  	
   

  
	
   

  	
  General

  	
   

  
	
   

  	
  Rule for Applying
  Seniority

  	
   

  
	
   

  	
  Seniority Defined

  	
   

  
	
   

  	
  Transfer of Seniority

  	
   

  
	
   

  	
  Decrease in Forces

  	
   

  
	
   

  	
  Recall to Occur As Follows

  	
   

  
	
   

  	
  Loss of Seniority

  	
   

  
	
   

  	
  Probationary Period

  	
   

  
	
   

  	
  Information to the Union

  	
   

  
	
   

  	
  Shift/Job Transfers

  	
   

  
	
   

  	
  Temporary Transfer

  	
   

  
	
   

  	
  Job
  Posting

  	
   

  
	
  VII

  	
  Military
  Service

  	
   

  
	
  VIII

  	
  Leave
  of Absence

  	
   

  
	
   

  	
  Jury
  Service – Paragraph 81

  	
   

  
	
  IX

  	
  Adjustment of Grievances

  	
   

  
	
   

  	
  To File a Grievance –
  Paragraph 86

  	
   

  
	
   

  	
  Suspension – Paragraph
  102

  	
   

  
	
  X

  	
  Bulletin
  Boards

  	
   

  
	
  XI

  	
  Wages

  	
   

  
	
   

  	
  Job Descriptions/Evaluations
  – Paragraph 106

  	
   

  
	
   

  	
  Temporary Transfer Rate –
  Paragraph 115

  	
   

  
	
   

  	
  Shift Differential – Paragraph 116

  	
   

  
	
  XII

  	
  Cost-of-Living

  	
   

  
	
  XIII

  	
  Safety and Health

  	
   

  
	
  XIV

  	
  Insurances and Pensions

  	
   

  
	
  XV

  	
  Severance Allowance

  	
   

  
	
  XVI

  	
  Termination,
  Expiration and Scope

  	
   

  
	
  XVII

  	
  Compliance with Law

  	
   

  
	
  Appendix
  A – Classification by Pay Rate

  	
   

  
	
  Appendix
  B – Rate Retention Groups

  	
   

  
	
  Appendix
  C – Overtime Distribution Agreement

  	
   

  
	
  Appendix
  D – Overtime Groups

  	
   

  
	
  Appendix E – Insurances

  	
   

  
	
  Insurance Agreement

  	
   

  

 

3

 

NOTICE TO ALL EMPLOYEES

 

WHEN UNABLE TO

 

REPORT FOR WORK

 

CALL

 

(815) 389-4300

 

OR YOUR SUPERVISOR’S

 

DIRECT PHONE NUMBER.

 

THIS WILL ENABLE THE

 

COMPANY TO ACCURATELY

 

MAINTAIN YOUR

 

ATTENDANCE RECORD.

***********************************************

TO LEAVE AN EMERGENCY MESSAGE

 

CALL

 

(815) 389-7777

 

LEAVE YOUR NAME, TELEPHONE #,

 

AND MESSAGE AND HANG UP.

 

YOUR EMERGENCY MESSAGE WILL BE

 

RESPONDED TO.

 

4

 

AGREEMENT

 

1.             This Agreement is made and entered into January 30, 2005
by and between WARNER ELECTRIC, LLC, or its successors or assigns, (hereinafter
referred to as the “COMPANY”) and the UNITED STEELWORKERS OF AMERICA
(hereinafter referred to as the “UNION”) on behalf of itself and Local Union
No. 3245. The Company will furnish each present or new employee with a copy of
this Agreement.

 

ARTICLE I

Intent,
Purpose and Scope of Agreement

 

2.                                       It is the intent and purpose of
this Agreement to set forth herein the basic rules covering rates of pay,
hours of work, and conditions of employment to be observed by the parties
hereto. It is further understood and agreed that this Agreement together with
any written appendices, supplements or letters of understanding hereto contains
all understandings between the Company and the Union. This Agreement cannot be
modified or amended except in writing signed by the Company and the Union. No
individual shall have any right to modify, amend or revoke this Agreement.

 

3.                                       This Agreement relates to the
South Beloit plant of the Company located at 449 Gardner Street, South Beloit,
Illinois.

 

4.                                       The Company and Union will apply the provisions
of this Agreement to all employees, without discrimination as to age (as
provided in appropriate laws), sex, color, national origin, race or religion.

 

5.                                       COOPERATION – The Union, the Company and all
employees covered by this Agreement mutually agree to make every reasonable
effort to maintain and improve the skill, efficiency, ability, and production
of all employees, the quality of products, the methods and facilities of
production, and to eliminate accidents, waste, conserve material and supplies
and improve quality of workmanship.

 

ARTICLE II

Recognition

 

6.                                       The Company hereby recognizes the Union as the
exclusive bargaining agent for all its production, maintenance, and service
employees, excluding Sales Persons, Service Manager, Assistant Service Manager,
Service School Instructors, office and plant clerical employees, technical
employees, timekeepers, Industrial Engineering Department employees, security
personnel, plant superintendents, assistant superintendents, supervisors,
assistant supervisors, and other supervisory employees with authority to hire,
promote, discharge, discipline or otherwise effect changes in the status of the
employees, or effectively recommend such action, in all those matters
specifically provided for herein pertaining to wages, hours, and working
conditions.

 

7.                                       The Union hereby recognizes that the Management
of the plant and the direction of the working forces including the right to direct,
plan, and control plant operations, and establish and change production
schedules, the right to hire, promote, demote, transfer, suspend or discharge
employees for proper cause, or to relieve employees because of lack of work or
for other legitimate reasons, subject to the provisions of this Agreement, or
the right to introduce new and improved methods or facilities, or to change
existing production methods or facilities, and to

 

5

 

manage
the properties, is vested in the Company.

 

8.                                       No employee shall engage in any activity
not authorized by the Company, which shall interfere with production. This section shall
not restrict the legitimate activities of the Shop Committee members pursuant
to Article IX, Par. 97, Safety Committee members pursuant to Article XIII
Par. 134, and the members of the Job Evaluation Committee, Worker’s
Compensation Committee, Civil Rights Committee, Group Insurance Committee,
Pension Committee and Apprenticeship Committee as authorized by the appropriate
Company representatives.

 

9.                                       Any employee who is a member of the Union in good
standing on the effective date of this Agreement shall, as a condition of
employment, maintain membership in the Union to the extent of paying the periodic
membership dues uniformly required of all Union members.

 

10.                                 Any employee who, on the effective date of this
Agreement, is not a member of the Union and any employee thereafter hired,
shall, as a condition of employment, starting thirty (30) days after the
effective date of this Agreement, or thirty (30) days following the beginning
of their employment, whichever is the later, acquire and maintain membership in
the Union to the extent provided in Paragraph 9 above.

 

11.                                 The Union agrees that it will make membership in
the Union available to all employees covered by this Agreement on the same
terms and conditions as are generally applicable to other members of the Union.
At the instance of the Company, termination of Union membership for reasons
other than the failure of the employee to tender the dues, assessments and
initiation fees specified in this Agreement, may be submitted to an impartial
arbitrator under the grievance procedure of the Agreement for determination
only as to whether such termination conforms to the Constitution of the United
Steelworkers of America.

 

12.                                 On receipt of a voluntary written assignment
authorizing such deduction from the employee on whose account such deductions
are made, the Company shall deduct union dues, initiation fee, and assessments
in accordance with the Constitution of the United Steelworkers of America, as
certified to the Company by the International Treasurer of the Union. The
Company shall deduct Union dues on a weekly basis, based on the employee’s
earnings from that week. Any sum deducted by the Company pursuant to this
paragraph shall be remitted promptly by it to the International Treasurer of
the Union.

 

13.                                 Should the International Treasurer of the Union
certify to the Company in writing that changes in dues or initiation fees have
been duly adopted by the United Steelworkers of America, during the term of
this Agreement, the Company shall deduct the changed dues or initiation fees
have duly adopted by the United Steelworkers of America, during the term of
this Agreement, the Company shall deduct the changed dues or initiation fees in
the manner provided in Par. 12.

 

14.                                 The Union shall indemnify and hold the Company
harmless against all suits, claims, demands and liabilities that shall arise
out of or by reason of any action that shall be taken by the Company for the
purpose of complying with these foregoing provisions or in the reliance on any
list or certificate which shall have been furnished by the Company under these
provisions.

 

15.                                 During the life of this Agreement, the
Union agrees that there will be no strikes, stoppages, or slowdowns; the
Company agrees that there shall be no lockouts. Both parties promise and agree
that they shall, in an endeavor to prevent such events from taking place,
charge their representatives, committees, and agents with full responsibility
for the performance of each 

 

6

 

and every promise and
undertaking herein contained. No meetings of the Union’s membership shall be
scheduled during regular working hours without mutual agreement of the parties
in writing.

 

16.                                 Except during an emergency, employees
excluded from the provisions of this agreement shall not perform production or
maintenance work. Instruction, engineering analysis, continuous improvement
team activities, assistance in debugging machinery, product demonstrations, lab
work, and safety and ergonomic evaluations do not constitute production or
maintenance work.

 

ARTICLE III

Hours of Work

 

17.                                 This article defines the normal hours of
work and shall not be construed as a guarantee of hours of work per day or per
week. This Article shall not be considered as any basis for the
calculation or payment of overtime, which is covered solely by Article IV,
“Overtime.”

 

18.                                 The normal workday shall be eight (8) hours
of work in a twenty-four (24) hour period. The hours of work shall be
consecutive except when an unpaid lunch period is provided in accordance with
prevailing practices.

 

19.                                 Rest periods shall be provided and taken as
follows:

 

	
  First Shift:

  	
   

  	
  9:30 a.m.
  to 9:45 a.m.

  	
  -

  	
  15
  minutes

  	
   

  
	
   

  	
   

  	
  12:30 p.m.
  to 12:40 p.m.

  	
  -

  	
  10
  minutes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Second Shift:

  	
   

  	
  5:30 p.m.
  to 5:45 p.m.

  	
  -

  	
  15
  minutes

  	
   

  
	
   

  	
   

  	
  9:00 p.m.
  to 9:10 p.m.

  	
  -

  	
  10
  minutes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Third Shift:

  	
   

  	
  1:00 a.m.
  to 1:15 a.m.

  	
  -

  	
  15
  minutes

  	
   

  
	
   

  	
   

  	
  4:40 a.m.
  to 4:50 a.m.

  	
  -

  	
  10
  minutes

  	
   

  

 

On regular six (6) hour shifts on Saturday and Sunday, rest
periods shall be provided and taken as follows:

 

	
  All Shifts:

  	
   

  	
  Three (3) hours into the six (6) hour
  shift. -

  	
  15 minutes

  	
   

  

 

except
that rest periods shall be staggered by the Company where necessary to insure
continuous production operations. Relief personnel will be assigned to the
continuous production operation to provide the relief period for the operator.

 

20.                                 The normal work pattern shall be five (5) consecutive
workdays beginning at 12:01 a.m. Monday of each week, or at the time on
Monday at which the employee begins work. Seven (7) consecutive days
beginning at 12:01 a.m. Monday shall constitute a payroll week.

 

ARTICLE IV

Overtime and Allowed Time

 

21.                                 This Article provides the basis for
the calculation of, and payment for, overtime and shall not be construed as a
guarantee of hours of work per day or per week, or a guarantee of days of

 

7

 

work per week.

 

(A) The
payroll week shall consist of seven (7) consecutive days commencing at
12:01 a.m. Monday for the purpose of computing the pay of employees.

 

(B) The
work day for the purposes of this Article is the twenty-four (24) hour
period beginning with the time the employee begins work.

 

22.                                 Time and one-half shall be paid for:

 

(A) Hours
worked in excess of eight (8) hours in a work day (except where the work
in excess of eight (8) hours in the work day occurs as a result of a
change in the employee’s work schedule resulting from the request of the
employee or resulting from the exercise of seniority rights;

 

(B) Hours
worked in excess of forty (40) hours in a payroll week;

 

(C) Hours
worked on Saturday as such.

 

23.                                 Double time shall be paid for all hours worked on
Sunday as such, and for hours worked in excess of twelve hours in a work day,
except where the work in excess of twelve hours in a work day occurs as a
result of a change in the employee’s work schedule resulting from the
request of the employee, or resulting from the exercise of seniority rights.

 

24.                                 In all instances of premium pay for work on a day
as such, the employee’s entire shift shall be considered as having been worked
on the day on which their shift is regularly scheduled to commence, except if
the employee’s first regular shift of the work week begins between 10:00 p.m.
and 12:00 midnight on Sunday, during such week, each shift shall be considered
as having been worked on the day their shift is scheduled to end.

 

25.                                 Work performed by employees on their floating
holiday, which will be on a voluntary basis, will be paid at double time plus
holiday pay.  Work performed by employees
on all other holidays will be paid at triple time plus holiday pay. The
scheduling of floating holidays during the Christmas period will be at the
employee’s discretion.

 

26.                                 Holidays

Contract Year
2005

March 25 - Good
Friday (Friday)

May 30 - Memorial
Day (Monday)

July 4 -
Independence Day (Monday)

September 5 – Labor
Day (Monday)

November 24 –
Thanksgiving (Thursday)

November 25 – Day
after Thanksgiving (Friday)

December 24 –
Christmas Eve (Saturday) Celebrated December 23

December 25 –
Christmas Day (Sunday) Celebrated December 26

December 31 – New
Years Eve (Saturday) Celebrated December 30

January 1, 2006 -
New Years Day (Sunday) Celebrated January 2

 

Contract
Year 2006

April 14 - Good
Friday (Friday)

May 29 - Memorial
Day (Monday)

July 3 – Day Before
Independence Day (Monday)

July 4 –
Independence Day (Tuesday)

 

8

 

September 4 – Labor
Day (Monday)

November 23 –
Thanksgiving (Thursday)

November 24 – Day
after Thanksgiving (Friday)

December 24 –
Christmas Eve (Sunday) Celebrated December 25

December 25 –
Christmas Day (Monday) Celebrated December 26

December 31 – New
Years Eve (Sunday) Celebrated January 1

January 1, 2007 -
New Years Day (Monday) Celebrated January 2

 

Contract
Year 2007

April 6 - Good
Friday (Friday)

May 28 - Memorial
Day (Monday)

July 4 -
Independence Day (Wednesday)

September 3 – Labor
Day (Monday)

November 22 –
Thanksgiving (Thursday)

November 23 – Day
after Thanksgiving (Friday)

December 24 –
Christmas Eve ( Monday)

December 25 –
Christmas Day (Tuesday)

December 31 – New
Years Eve  (Monday)

Jan. 1, 2008 - New
Year’s Day (Tuesday)

 

Three (floating) holidays
in each year of the contract to be scheduled in accordance with current
vacation scheduling process and paid as 8 hr. of classification rate as holiday
pay.

 

27.                                 The regular earned hourly rate shall be the
average straight time hourly earnings for the day on which the overtime was
worked. The “average straight time hourly earnings” shall be the employee’s
total straight time hourly earnings for the day, divided by the actual hours
worked for the day (including any hours paid for under a guarantee of hours).
Overtime rates as outlined above shall be paid the employees for such hours
worked in the following manner:

 

(A) Time
and one-half shall be one and one-half times the regular earned hourly rate of
the employee.

 

(B) Double
time shall be twice the regular earned hourly rate of the employee.

 

(C) Triple time
shall be three times the regular earned hourly rate of the employee.

 

28.                                 The overtime and/or the premium payments provided
for in this Article shall not be duplicated for the same hours worked and
to the extent that hours are compensated for at overtime or premium rates under
one provision, they shall not be counted as hours worked in determining
overtime or premium pay under the same or any other provisions.

 

29.                                 When two or more rules are
applicable, the one more favorable to the employee will apply, but nothing
contained herein shall be construed to require or permit the pyramiding of
premium and/or overtime rates.

 

30.                                 Both parties agree that overtime shall be worked
when necessary to permit the proper operation of the Company. Overtime will be
distributed among employees in the overtime
distribution groups identified in Appendix C, which groups may be changed
from time to time in recognition of new or revised job classification and new
or revised cost centers, subject to the grievance procedure.

 

31.                                 Holidays defined in Par. 26 of this Article will
be paid for at the employee’s classification

 

9

 

rate and the
Cost-of-Living adjustment if not worked.

 

32.                                 During the term of this
Agreement the days (defined above) will be paid holidays. To qualify for
holiday pay, an employee must have completed the first thirty (30) calendar
days of their probationary period and must have worked their assigned shift on
their last scheduled workday before the holiday (which may not be mandated to
exceed 8 hours) and their assigned shift on their first scheduled workday
following the holiday. In cases of holidays which are observed on Friday or
Monday, neither the adjoining Saturday nor the adjoining Sunday shall be
considered as a “scheduled work day before” nor a “scheduled work day after”
the holiday for purposes of qualifying for holiday pay, and work on such
Saturday or Sunday shall be voluntary except that concerted refusal of such
overtime work and failure to work by an employee who had agreed to work shall
be disciplinable offenses. If an employee desires to be absent from work the
scheduled work day before or after a holiday, they must give reasonable notice
prior to the holiday; provided, however, if they are absent from work the
scheduled work day before or after a holiday due to circumstances beyond their
control, they will not be disqualified from receiving unworked holiday pay.
Otherwise eligible employees on disability leaves of absence are eligible for
holiday pay up to and including one consecutive year of such leave(s) provided,
however, that otherwise eligible employees hired on or after January 28,
1984 on disability leaves of absence shall be eligible for holiday pay up to
and including thirty (30) consecutive days following the commencement of such
leave(s).

 

33.                                 The classification rate shall be that of
the payroll week in which the holiday falls. If an employee is absent and does
not have wages earned during the holiday week, then the classification rate to
be used shall be that of the last payroll week the employee worked prior to the
holiday week.

 

34.                                 Employees who report
for regular work, (unless notified not to do so, including announcements by
local news media) or who are called back to work from off the plant, shall be
given either a minimum of four (4) hours’ work at the applicable contract
rate (with applicable premiums, if any) for the current payroll period,
(provided, that if the employee refuses an assignment of work which they are
qualified to do, they shall receive no pay). The provisions of this Paragraph
shall not apply in cases of strikes, work stoppages, in connection with labor
disputes, failure of utilities beyond the control of the Company, or any acts
of God which interfere with work being provided or an outside cause which
prevents access, egress or occupancy to the extent that work cannot be provided
to the employees.

 

35.                                 Employees actively at work will be granted three (3) work
days off with pay at their classification rate to attend or make arrangements
for the funeral of their spouse, mother, father, sister, brother (including
half-brothers and half-sisters), son, daughter, grandchild, mother-in-law,
father-in-law, or other than a blood-related parent if it can be demonstrated
without a reasonable doubt that the employee’s parent is other than the
blood-related mother or father. Such employee will receive bereavement pay
entitlement for only one mother and one father. Employees actively at work will
be granted three (3) days off with pay at their classification rate to
attend or make arrangements for the funeral of their brother-in-law or
sister-in-law (defined as the brother(s) and/or sister(s) of the employee’s
spouse, and the spouse(s) of the employee’s brother(s) and/or sister(s). The
in-law relationship ceases to exist when the marriage, which created the
relationship, is terminated by divorce, annulment, legal separation or death
followed by remarriage. Employees actively at work will be granted one (1) day
off with pay at their classification rate to attend or make arrangements for
the funeral of the employee and spouses grandmother or grandfather. An employee
who has not previously been granted work days off with pay for the funeral of
his mother or father may notify the Company that he elects, instead,

 

10

 

such
pay rights for the funerals of his maternal grandparents or his paternal
grandparents. In the event of such election, the funeral pay rights otherwise
applicable to the designated grandparents shall apply to the employee’s
parents. Should the death occur during any of the employee’s scheduled weeks or
days of vacation, the vacation thus interrupted will be extended by the period
of authorized bereavement. Should the death occur during any of the employee’s
vacation, or a paid holiday, the vacation or holiday thus interrupted will be
extended by the period of authorized bereavement effected.

 

ARTICLE V

Vacations

 

36.                                 An employee who has been on the payroll of the
Company as of the anniversary date of their employment for the period indicated
shall receive the following vacation with pay:

 

	
  Service

  	
   

  	
  Vacation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   1 but less than  3 years

  	
   

  	
  1 week

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   3 but less than  6 years

  	
   

  	
  2 weeks

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   6 but less than  7 years

  	
   

  	
  2 weeks and 1 day

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   7 but less than  8 years

  	
   

  	
  2 weeks and 2 days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   8 but less than  9 years

  	
   

  	
  2 weeks and 3 days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   9 but less than 12 years

  	
   

  	
  3 weeks

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12 but less than 14 years

  	
   

  	
  3 weeks and 1 day

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14 but less than 16 years

  	
   

  	
  3 weeks and 2 days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16 but less than 18 years

  	
   

  	
  3 weeks and 3 days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18 but less than 22 years

  	
   

  	
  4 weeks

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  22 but less than 25 years

  	
   

  	
  4 weeks and 3 days

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  25 and more

  	
   

  	
  5 weeks

  	
   

  

 

Full
weeks of vacation are to be taken as full weeks; extra days may be taken
individually. However, employees with two weeks of vacation or more may take
their vacation time off entitlement in excess of one week as individual days.
Two (2) of the individual days may be taken in (1/2) day increments,
subject to the scheduling rules of Paragraph 38.

 

Employees
on the active payroll of the Company on their 30th year of service anniversary
date shall receive a $100.00 award and on each such anniversary date thereafter
while on the active payroll.

 

The
Company will issue vacation checks under the following guidelines. Full week(s)
vacation

 

11

 

checks
will be issued on the pay period preceding the start of vacation.  Pay for individual vacation days taken will
be included in the employee’s regular check for the week it was taken.  If an employee takes vacation for all
the days in a week when a holiday(s) occurs, except the holiday(s) themselves,
the vacation days will be paid in advance as if it were a full week and the
holiday(s) will be paid in the week after their occurrence.

 

37.                                 Vacation pay shall be computed for
employees hired on or before January 29, 2005,on the basis of two and
one-half (2 1/2) percent of the employee’s gross wages paid in the preceding
calendar year for each week of vacation to which they are entitled as provided
in Par. 36 of this Article and five-tenths of one percent (.5%) of the
employee’s gross wages paid in the preceding calendar year for each additional
day of vacation to which they are entitled as provided in Par. 36 of this
Article; except an employee who completes one (1) year of service in the
calendar year shall have their vacation pay computed on the basis of two and
one-half (2 1/2) percent of the gross wages paid in the twelve months
immediately preceding their first anniversary date, and thereafter on a
calendar year basis as provided in this Paragraph. However, an employee who
qualified for vacation in accordance with the provisions of this Article shall
receive either the vacation pay as computed above, or a vacation payment
computed by multiplying the employee’s vacation entitlement, expressed in hours
(one week equaling forty hours, one day equaling eight hours) by their average
hourly earned rate (determined by dividing their gross wages by the total hours
worked) for the twelve month period specified in this Paragraph, whichever is
greater.  Employees hired on or after January 30,
2005, shall receive vacation pay calculated on the basis of 40 hours times the
employee’s base rate of pay per full week, and 8 hours times the employee’s
base rate per day.

 

38.                                  (A) During any calendar
year employees shall be permitted to select the time for vacation subject to
(B), (C), (D), (E) and (F) below so far as practicable, provided the
employee gives written notice to the Human Resources Department of their
preference before April 1, and provided that the Company may schedule in
a manner which takes into consideration the operating and maintenance needs of
the plant. Conflicts in requests shall be resolved on the basis of seniority.
When taking single days of vacation, you must notify your supervisor before the
end of your prior shift. Failure to do so will result in an absence.  When taking half (1/2) days vacation you must
notify your supervisor before the end of your
prior shift.  Failure to do so will
result in an absence.

 

(B) The Company may schedule a
vacation shutdown of 1 week’s duration. In years that the Company schedules a
shutdown, notification to employees will be made by March 15.

 

	
   

  	
   

  	
   

  	
   

  	
  Vacation Shutdown

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Year 2005

  	
   

  	
  Tuesday

  	
   

  	
  July 5

  	
   

  
	
   

  	
   

  	
  Wednesday

  	
   

  	
  July 6

  	
   

  
	
   

  	
   

  	
  Thursday

  	
   

  	
  July 7

  	
   

  
	
   

  	
   

  	
  Friday

  	
   

  	
  July 8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Year 2006

  	
   

  	
  Wednesday

  	
   

  	
  July 5

  	
   

  
	
   

  	
   

  	
  Thursday

  	
   

  	
  July 6

  	
   

  
	
   

  	
   

  	
  Friday

  	
   

  	
  July 7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Year 2007

  	
   

  	
  Monday

  	
   

  	
  July 2

  	
   

  
	
   

  	
   

  	
  Tuesday

  	
   

  	
  July 3

  	
   

  
	
   

  	
   

  	
  Thursday

  	
   

  	
  July 5

  	
   

  
	
   

  	
   

  	
  Friday

  	
   

  	
  July 6

  	
   

  

 

12

 

(C) When a vacation shutdown is scheduled, shutdown
work requirements will be announced at the time the shutdown is announced.
Shutdown work requirements will be filled voluntarily from the top of the
seniority list in each classification required, and if volunteerism does not
meet the need, the balance of the requirements will be met by assignment from
the bottom of the seniority list up. Shutdown work requirements that arise
subsequent to March 15 will be filled by volunteers from the top of the
seniority list. Any employees asked to work will be charged in accordance with
Appendix C. Employees not asked to work during the shutdown period will not be
charged for any overtime. If an out of overtime spread condition occurs because
of the overtime worked during the shutdown period, the Company shall have 30
days to bring the effected employees back into the 30 hour overtime spread.

 

(D) Employees who
are entitled to vacation and who work during vacation shutdown will be
permitted to request their vacation so far as practicable, and in consideration
of the operating and maintenance needs of the Company, at any other time of the
year. In instances where employee vacation requests conflict with the Company’s
needs, vacations will be scheduled on the basis of seniority.

 

(E) In
order to qualify for the vacation defined in Par. 36, an employee must have
worked not less than seventy (70) percent of the regular days of work available
to them during the twelve (12) months immediately preceding January 1 of
any calendar year, except in the case of any employee who completes one (1) year
of service in the calendar year, it shall be twelve (12) months immediately
preceding their anniversary date. It is understood and agreed for this purpose
that the absence from work because of Company layoffs due to lack of work (not
to exceed ten [10] work weeks), occupational accidents, certified illness,
holidays, shall be considered as time worked for the purpose of computing
eligibility for vacation privileges.

 

(F) An employee may take
pay in lieu for any earned vacation, not to exceed five (5) days in any
year. Such scheduling should be handled with the normal April 1 vacation
scheduling procedure. Changes after the vacation schedule is established
must be consistent with production needs. 
Pay in lieu will normally be included in the vacation check at the time
the vacation is taken. This shall not change the practice of paying for unused
vacation at the end of each calendar year. The Union will be informed of all
pay in lieu arrangements. No employee shall be discriminated against based upon
his exercise or nonexercise of this understanding.

 

39.                                 In the event of the death of an employee eligible
for vacation pay at the time of their death, such vacation due the employee
shall be paid to their surviving spouse or other legal heir.

 

40.                                 If any employee is laid off for a period equal to
or longer than their vacation, the employee may designate the equivalent
portion of such layoff period as their vacation with pay.

 

41.                                 Vacation periods may not be postponed
from one year to another and made accumulative, and will be forfeited unless
completed within each calendar year, but in any event the employee will receive
their vacation pay.

 

42.                                 An employee entering military service who
is eligible for vacation in the year in which they enter and who has not
received such vacation shall receive the vacation pay to which they are
entitled under this Article.

 

13

 

43                                    Any employee returning from military service who
is eligible for vacation in the year in which they return shall receive a
vacation subject to the provisions of this Article, except Par. 38 above,
provided it is not in the same year in which they enter. Their vacation pay
will be computed as follows: gross wages for the year they return up to the
time they take their vacation, divided by the total hours worked, times
vacation hours.

 

44.                                 In the event an employee has their vacation
scheduled immediately upon beginning work and therefore does not have any hours
worked, their vacation pay is computed by multiplying their rate for the job
classification to which they are assigned by their vacation hours.

 

45.                                 Vacation Pay for Layoffs.

During
any calendar year, if an employee is on layoff through no fault of their own
and solely as a result of such layoff they have not fulfilled the requirements
of Par. 38 (A) of this Article, and such an employee has had earnings in
the preceding calendar year, they shall be entitled to two and one-half (2 1/2)
percent of their gross wages paid in the preceding calendar year for each week
of vacation to which they are entitled as provided for in Par. 36 of this Article and
five-tenths of one percent (.5%) of the employee’s gross wages paid in the
preceding calendar year for each additional day of vacation to which they are
entitled as provided in Par. 36 of this Article.  Employees hired on or after January 30,
2005, shall receive vacation pay calculated on the basis of 40 hours times the
employees base rate of pay per full week for each week of vacation to which
they are entitled as provided for in Par. 36 of this Article and 8 hours
times the employee’s base rate per day for each additional day of vacation to
which they are entitled as provided in Par. 36 of this Article.  Employees who are laid off may elect to
receive their vacation pay at the time of layoff under Paragraph 40 and, in
accordance with Paragraph 40, a corresponding portion of the layoff will be
considered as the employee’s vacation time off at the time of layoff. If the
employee does not elect his vacation pay and time off at the time of layoff and
is recalled in the same calendar year, they will receive their vacation pay in
accordance with Paragraph 46. If the employee does not elect their vacation pay
at the time of layoff and is not recalled during the calendar year, they will
be paid any vacation pay owing at the end of the calendar year.

 

46.                                 In the event an employee has been on layoff and
is recalled to work during any calendar year, and such an employee has had
earnings in the preceding calendar year, but solely because of such layoff has
not fulfilled the requirements of Par. 38 (A) of this Article, they shall
be entitled to vacation pay as outlined in Par. 45 above. Upon returning to
work anytime in the year, such employee will be eligible to receive their
vacation pay upon giving one week’s notice but vacation time off will be
granted (if requested) consistent with Paragraph 38 of this Article.

 

ARTICLE VI

Seniority

 

47.                                 General.   The
Company and the Union recognize that promotional opportunity and job security
in the event of promotions, decreases of forces, and rehirings after layoffs
should increase in proportion to length of continuous service, and that in the
administration of this Article, full consideration shall be given continuous
service in such cases. “Continuous service” as referred to herein, means a
period of employment not interrupted by a break sufficient to terminate the
employee’s seniority.

 

48.                                 Rule
for Applying Seniority.   In all cases of promotion or increase or
decrease in forces except when a different rule is stated, the following
factors shall be considered; however, only

 

14

 

where
factors (B) and (C) are relatively equal shall length of continuous
service govern:

(A) Length
of continuous service;

(B) Ability
to perform the work;

(C) Physical
fitness.

 

49.                                 Seniority Defined.   Length of
continuous service as outlined in this Article is defined herein as years,
months, and days of service with the Company since the last date of hire. In
cases where two or more employees commence work on the same date, the following
method will determine the most senior employee:

 

	
  Shift 3 = Most Senior

  
	
  Shift 1 = Senior to employee who started on Shift 2

  
	
  Shift 2 = Least Senior

  

 

In the case of two or more
employees starting on the same shift and same date, at the orientation, between
the Union, employees, and the Company, the employees will draw a card from a
deck of cards and the high card will determine the most senior employee, which
determination shall be final and govern all future issues of relative seniority
during their employment with the Company.

 

All affected employees who have
not established permanent seniority shall do so as outlined by the card drawing
provisions of this article.  When
seniority is established the Company will provide to the Union a listing of the
employees affected and a copy to the employee.

 

50.                                 Transfer
of Seniority.  
Employees transferred from one classification to another classification,
by job bid or promotion shall transfer their seniority to the new classification
after twenty (20) working days on the job to which they had bid or transferred,
provided it is the last classification to which they have bid or have been
promoted. An employee thus transferred shall serve a trial period of not less
than one working day and not more than twenty (20) working days, which period
may be extended by mutual agreement. In cases covered by the above employees
will be allowed to wash themselves out during the trial period (on the job to
which they had bid or been promoted) by giving notice to the Company not later
than the twentieth (20th) day, provided they had not previously held the
classification in the previous two (2) years.

 

51.                                 Employees who wash themselves out as above
specified or who are washed out by the Company shall be entitled to return to
their former job classification with full seniority. If there have been other
personnel moves which have resulted from their bid or promotion, the employees
involved will be returned to their former job classifications (to the extent
that this is necessary in order to accommodate the washout) with full
seniority, and the Company will be entitled to postpone the reverse moves
caused by the washout until all resulting personnel moves may be accomplished
without the necessity of paying premium pay.

 

52.                                 Employees who are transferred in lieu of layoff
will immediately transfer their seniority to the new classification.

 

53.                                 Decrease
in Forces.   When a reduction in force is necessary,
forces shall be reduced in the following manner:  (Subject to the exceptions in Article XI,
Par. 111).

 

54.                                 The Company will allow in certain situations for
a voluntary layoff to occur.  If this
happens, the following guidelines will apply on a seniority basis:

 

a)                                      The voluntary layoff period will be for a maximum
of four (4) weeks.  This time period
may be extended when the Company, Union and an employee

 

15

 

mutually agree.

b)                                     The voluntary layoff option will be made
available to those Employees in the classification whose work assignments are
being immediately affected by the reduction. 
No employee on voluntary layoff will be allowed to exercise their
seniority in any classification.

c)                                      When it is determined that a recall is needed,
the person who went out on involuntary layoff would be recalled prior to a
person who volunteered.

d)                                     If it is determined that production needs change
and all other options have been exhausted, the Company would have the option to
recall a person on voluntary layoff.

e)                                      Upon return from voluntary layoff the employee
will return to his/her previous classification and shift.

f)                                        During a voluntary layoff, a person would retain
their Insurance consistent with the Insurance Agreement in the contract.

g)                                     In the event there are insufficient volunteers
for a required layoff, the procedures prescribed in this article concerning
decreases in forces will apply.

 

55.                                 (1) Probationary employees will be
the first to be displaced from the classification(s) to be reduced;  (2) Next, employees who have not
acquired seniority in the classification as provided in Par. 50 shall be
displaced from the classification(s) to be reduced and shall be returned to the
classification in which they still hold seniority. (Employees who have been
transferred into the classification pursuant to Par. 56 shall be excepted from
this group and shall be considered on the basis of their total seniority as
part of the group considered in subparagraph (3) hereof).  (3) Next, employees will be displaced
from such classification(s) on the basis of their seniority in the
classification, on the basis of the factors in Par. 48.

 

56.                                 Employees who are displaced from their regular
classification shall be offered a job opportunity in a vacant job or in a job
held by an employee with less seniority, as follows:

 

(1) To a job classification for which the employee
is fully qualified by previous classification and satisfactory performance in
the job classification for the Company, or

 

(2) To a job classification for which the employee
qualifies under the factors set forth in Par. 48, without any training period.

 

57.                                 Employees displaced in the above process shall be
considered on the same basis as specified in Par. 55 hereof for reduction of
forces in a classification. Such employees who are displaced in this process
shall be given a similar opportunity. Employees who are displaced under the
above procedure and who do not have sufficient seniority and qualification to
secure another job under the above procedure shall be laid off from the Company.

 

58.                                 In the event of partial or complete shutdown of
manufacturing operations during straight-time hours for the purpose of taking
inventory, seniority by shift shall apply only among employees in the same job
classification doing the same type of work. Employees performing such work will
be paid at their classification rate. During overtime hours for the purpose of
taking inventory, the Appendix “C” Overtime Distribution Agreement shall apply.

 

59.                                 Employees who have completed their probationary period
and who are scheduled for a layoff for a period exceeding three (3) working
days, shall be notified at least three (3) working days prior to such
layoff. The Union shall be notified as soon as practicable after the Company

 

16

 

makes
the determination to lay off employees. In the event an employee is temporarily
laid off for a period of not more than three (3) working days, due to lack
of work or other legitimate causes, the employee with the least continuous
service in the classification affected shall be laid off.

 

60.                                 Employees may elect layoff instead of exercising
their seniority rights to displace a less senior employee in a different
classification. (The Company will provide the employee and Union with a list of
the different classifications that have less senior employees.) Employees
electing layoff under this paragraph will only be eligible for recall to their
regular assigned classification or to such other classifications as they
designate in writing to Human Resources at the time of layoff. Such employees
shall be notified by certified mail that their rights are due to expire. Such
notice will state that they must accept the next recall for which they are
eligible or terminate their seniority and all employment rights. In no event
shall the employee’s seniority be extended for a period greater than that
specified in 62(E). The president of the local union shall appoint two (2) committee
members to be present in the Layoff & Recall meeting prior to notice
being given to employees of such Layoff or Recall.  Only one (1) of the appointed members
may be present at the meeting with the employees.

 

61.                                 Recall
to occur as follows:

 

I.                                         When increasing the workforce in an area
without adding to the overall plant headcount, both shift preference and
recalls, direct and indirect, will be honored based on seniority. If the
position is not filled through this process, then the position will be posted.

II.                                     Opening occurs in classification that has
employees on layoff and most senior person on layoff is from the classification
that is being recalled.

 

A.  The person
with the most seniority with the Company shall be recalled by telephone or
certified mail.

 

B.  The person
recalled is expected to advise the Company of their availability for recall
upon contact by telephone, or if unable to be contacted by telephone, shall
have forty-eight (48) hours after sending certified mail to notify the Company
of their availability for work and must report for work not later than the
beginning of their shift on the third working day following the day the notice
to report was sent.

 

(1) In the event the employee does not accept
recall or fails to report for work, their seniority and all employment rights
will be terminated.

 

III.                                 Opening occurs in classification that has
employees on layoff. However, there are more senior employees on layoff from
other classifications.

 

A.   The Company
shall recall the most senior person, regardless of their classification, who
are fully qualified to perform the work of that classification by:

 

(1) Previous
classification and satisfactory performance in the job classification for the
Company, or

 

(2) Under the factors set forth in Paragraph 48, Article VI
of the Basic Agreement, without any training period.

 

B.   The person
recalled is expected to advise the Company of their availability for recall
upon contact by telephone, or if unable to be contacted by telephone, shall
have forty-

 

17

 

eight
(48) hours after sending certified mail to notify the Company of their
availability for work and must report for work not later than the beginning of
their shift on the third working day following the day the notice to report was
sent.

 

In the event the employee does not accept recall or
fails to report for work, their seniority and all employment rights will be
terminated.

 

IV.                                 Opening occurs in classification that has
no employees on layoff. However, there are employees on layoff from other
classifications.

 

A.   That job
shall be posted in accordance with Article VI, Par. 69 of the Basic
Agreement.

 

B.   After job
posting and selection procedures have occurred, persons on layoff will be
recalled to the job vacancy that would then exist in accordance with Part I
and Part II, if applicable. If Part I and Part II are not
applicable, persons will be recalled in accordance with length of continuous
service, physical fitness and ability to perform the work, without any training
period.

 

C.   The person
recalled is expected to advise the Company of their availability for recall
upon contact by telephone, or if unable to be contacted by telephone, shall
have forty-eight (48) hours after sending certified mail to notify the Company
of their availability for work and must report for work not later than the
beginning of their shift on the third working day following the day the notice
to report was sent.

 

In the event the employee does not accept recall or
fails to report for work, their seniority and all employment rights will be
terminated.

 

NOTE:  Employee’s
recalled from layoff who are unable to return to work due to medical reasons
shall be placed on medical leave of absence provided the employee accepts the
recall.

 

62.                                 Loss
of Seniority.   Continuous service as outlined in this Article shall
be broken and employees shall not be considered as having any length of
continuous service or any employment relationship whatsoever with the Company:

 

(A)                              If they shall quit;

 

(B)                                If they shall have been discharged for proper
cause;

 

(C)                                If they fail to report for work, or make
satisfactory explanation of such failure within forty-eight (48) hours after
notification has been sent to report for work by certified mail, one copy of
such notification being tendered to the Union Committee. Such notice shall not
be sent unless such employee has been absent and has failed to notify the
Company by the middle of the employee’s shift on the second consecutive working
day of the reason for such absence, or;

 

 (D)                            If they fail to report on schedule following
a vacation or an authorized leave of absence without giving a reasonable excuse
(employees who present an excuse for such absence will be permitted to work
after the presentation of the excuse until such time as the Company decides
whether to honor the excuse as an exception to the rule) or;

 

(E)                                 If they shall have been absent from the
service of the Company for any reason (except for a leave of absence for
military service) for a period of three (3) years, where such employee has

 

18

 

been continuously
employed for over ninety (90) calendar days and not over three (3) years
shall be considered as having lost their seniority and employment relationship
if they have been absent from the service of the Company for a period equal to
their length of service with the Company. Absence due to a compensable
disability incurred during the course of employment shall not break continuous
service provided such individual is returned to work within thirty (30) days
after final payment of statutory compensation for such disability, or after the
end of the period used in calculating a lump sum payment.

 

63.                                 Probationary
Period.   A new
employee, and others re-employed following a break in continuous service, as outlined
in Par. 62 above, will acquire seniority after they have completed ninety (90)
calendar days of employment, exclusive of any periods of absence due to medical
reasons of five or more consecutive days, from the date of their employment or
re-employment with the Company. Such employees shall be considered probationary
employees until they have acquired seniority. There shall be no responsibility
for the re-employment of probationary employees if they are laid off or
discharged during this period. Probationary employees may file and process
grievances after thirty (30) calendar days from date of employment or
re-employment but may be laid off or discharged during their probationary
period as exclusively determined by Management.

 

64.                                 Information
to the Union.   Every
three months the Company shall furnish the Union with copies of a seniority
list and post copies on the bulletin boards of the Company. Once each month
between the quarterly lists, the Company will furnish the Union one copy of an
updated seniority listing.  The company
will also continue to provide the union with an updated list of shift
preferences and recalls periodically.

 

(A)                              No more than once per month, at the request of
the union, the Company will provide a list of hires, terminations, promotions,
transfers and seniority of bargaining unit employees during the preceding
calendar month

 

(B)                                The Company will continue to provide the Union
with copies of written leave of absence forms, written disciplines, names of
employees who are to be laid off or who have been recalled (including the date
of notice and the name of the job classification involved), “employee record
change requests” and notices that appear on Company bulletin boards that
pertain to the bargaining unit. The Company will transmit this information
within two (2) weeks after the action is taken or, in the case of leave of
absence, within one (1) week after the form is completed. Inadvertent
failure to transmit the information or failure of the Union to receive it shall
not invalidate the action involved, since the purpose of this provision is only
to keep the Union informed. Errors shall be corrected when discovered.

 

65.                                 Shift/Job
Transfers.  
Employees who have completed their probationary period who desire to
change shifts or jobs shall indicate their preference on a form provided by the
Company. When a vacancy occurs in a classification, an employee performing the
same type of work in the classification, with a written preference form on
file, shall be given preference based on their seniority for transfer where the
vacancy exits, subject to the following conditions.

 

(A)                              In the event it is not possible to transfer the
employee in accordance with their preference due to there not being an
adequately qualified crew on the shift from which the transfer is to be made,
the transfer will be made as quickly as possible.

 

(B)                                The Company shall have the right to train new
employees to the classification on the day shift for a period of not to exceed
thirty (30) working days (except that such period may be

 

19

 

extended
by agreement of the parties), and any transfers shall not take place until this
training is completed.

 

(C)                                In the event an employee is promoted in a
classification, the employee thus promoted will remain on the same shift and
area unless there is a more senior employee in the classification where the
promotion occurs with a preference form on file. If this should occur the two
employees will exchange places.

 

(D)                               In the event the Company decides to
decrease the number of employees in a classification on a shift and increase
the number of employees in the same classification on another shift within the
same area, the Company will utilize this Paragraph to achieve the necessary
results. If openings exist after all preferences have been utilized, the least
senior employees (being decreased) will be transferred and shall exercise their
seniority rights regardless of shift or area. All employees (direct or
indirect) may utilize their seniority to bump a less senior employee, and shall
not be required to remain within their classification.

 

66.                                 Employees granted a preference change under this
paragraph to their first choice shall not be entitled to a preference change
for a period of one hundred twenty (120) days. Employees granted their second
choice will continue to have their first choice on file unless changed by
Paragraph 67.

 

67.                                 Employees may withdraw or change their
written preference at any time. However, the preference form on file before
Wednesday of any work week shall govern any changes to be effective in the
following work week and thereafter unless changed by subsequent preference
form. In the event of a reduction or recall from layoff in the work force in
any department or shift, the Company will notify the Union of these reductions
or recalls at which time the preferences shall be frozen effective midnight the
day immediately preceding such notice. They shall remain frozen until the
displacements resulting from such reductions or recalls are complete.

 

68.                                 Temporary Transfer.   Vacancies of 45 days or less in a
classification shall be considered as temporary. The Company may fill such
temporary vacancies as follows. Employees farmed into a classification on any
one shift will be considered one occurrence. The Company shall not exceed 45
occurrences in any individual classification in a 120 day period. Job vacancies
in excess of 45 days may also be considered temporary such as the case where
the vacancy is due to an employee being on leave of absence due to occupational
accidents and certified illness.

 

69.                                 Job
Posting.   When a
vacancy occurs or is expected to occur, (other than a temporary vacancy), which
has not been filled either by promotion, preference form or recall from layoff,
the Company shall, to the greatest degree practicable, post the job vacancy on
bulletin boards throughout the Company for a period of two (2) working
days. Such posting will include the job title, the location of the job, the pay
rate, the shift, and the job description.

 

70.                                 Non-probationary employees desiring such
job shall apply for the job on a form prescribed by the Company. The employee
selected by the Company (such selection governed by Par. 48 of this Article)
shall be given a trial period of not less than one working day and not more
than twenty (20) working days, which period may be extended by mutual
agreement. If it is determined by the Company that they are not satisfactorily
performing the job, or if employees wash themselves out pursuant to the terms
of Article VI, Par. 50, they shall be returned to their former
classification and the Company shall continue to make selections by seniority
from the bidders and again provide a trial period under the same procedure. If
the next employee is washed out by the Company or washes out pursuant to the
terms of Article VI, Par.50, the Company after

 

20

 

exhausting all bidders
may recruit from any available source. Upon bidding the job and being selected,
the employee will not be entitled to bid on another permanent job opening for a
period of six (6) months, except in the event the employee is not on the
job they obtained through bidding due to a decrease in forces as set forth in
Par. 53.

 

71.                                 An employee may withdraw a bid within one (1) working
day after bids have been closed by giving written notice to Human Resources or
their supervisor. An employee withdrawing a bid in a timely manner and/or an
employee who is washed out by the Company during the trial period shall not be
subject to a bidding bar.

 

72.                                 An eligible bidder shall be placed on their job
within ten (10) working days after their selection. Such ten (10) day
period may be extended by mutual agreement between the Company and Union.

 

73.                                 A list of successful bidders shall be posted
following the week in which the selections are made. If posted jobs are not
filled, and if the vacancy still exists, the Company shall re-post the position
within thirty (30) days.

 

74.                                 An employee promoted from the bargaining unit may
be returned but once by the Company to the bargaining unit, provided such
option is exercised by the Company not later than six months after such
promotion. Upon their return, the employee will be credited with the amount of
accumulated seniority they had as of the date of their promotion from the
bargaining unit, and shall immediately resume the accumulation of seniority.

 

ARTICLE VII

Military Service

 

75.                                 The Company shall accord to each employee
who applies for re-employment after conclusion of military service with the
United States such re-employment rights as they shall be entitled to under then
existing statutes. If the position of such employee has been eliminated, the
Company will use every reasonable effort to provide for the employee employment
for which they can satisfactorily qualify.

 

ARTICLE VIII

Leave of Absence

 

76.                                 The Company, in cases where production
requirements permit or unusual circumstances warrant, may grant, at its
discretion, a leave of absence upon written request made in the form prescribed
by the Company and upon good cause being shown for such leave for a definite
period of not more than eight (8) weeks. Additional leave may be granted
in writing upon written request where deemed justified, but in any event, no
succession of leaves shall extend beyond one (1) year; provided that in
exceptional cases of extended absence because of illness or accident a longer
leave of absence may be granted at the Company’s discretion.

 

77.                                 Up
to three (3) employees at any one time (unless otherwise mutually agreed),
as designated by the Union, may request leave from the Company to serve as a
delegate to a union convention or for other official union business or
training. Whenever possible, the Company will be provided at least thirty days
advance notice of any such leave. Notice given less than 30 days in advance of
a leave will not be unreasonably denied. There shall be no deduction from

 

21

 

“continuous service”
(under this Agreement or the Pension Agreement) for leaves granted under this
Paragraph.

 

78.                                 Any employee (not exceeding three in
number at any one time) selected by the Union to act as a full-time official
representative will be given a leave of absence by the Company for the duration
of such office. There shall be no deduction from “continuous service” (under
this Agreement or the Pension Agreement) for the first twelve (12) months
(accumulative) of leave(s) of absence granted under this paragraph. After the
first twelve (12) months of leave(s) of absence under this paragraph, “continuous
service” will be frozen for the duration of such leave(s).

 

79.                                 Pregnancy shall be treated the same as
any other total or temporary disability and leave of absence under the terms of
this agreement.

 

80.                                 In the event an employee on leave of absence
accepts substitute gainful employment or self-employment without the prior
consent of the Company, their leave shall automatically be considered cancelled
and employment terminated without recourse, except in the following cases:

 

(A)                              As an official representative of the Union, or

 

(B)                                In some section of the United States
(other than Winnebago County, Illinois, or Rock County, Wisconsin), where such
employee is residing temporarily because the illness of a member of their
immediate family.

 

81.                                 An employee who is called for jury service shall be excused from work for the
days on which they serve and they shall receive, for each day of such service
on which they otherwise would have worked, the difference between eight (8) times
their classification rate (plus shift premium and supper pay if applicable) and
the payment they receive for jury service. The employee will present proof of
such service and the amount of pay received therefor. An employee who is
subpoenaed for court appearance and is not the plaintiff or defendant shall be
excused from work for the court appearance and shall be paid for each day lost
for which they otherwise would have worked in the same manner as provided for
jury service, above. The employee will present proof of such appearance and the
amount of any pay received therefor.

 

ARTICLE IX

Adjustment of Grievances

 

82.                                 It is agreed that the Union will
establish a Shop Committee from employees in the bargaining unit to meet with
representatives of the Management for the purpose of presenting and
participating in the adjustment of grievances, and, when established, shall
furnish the Company with the names of the Committee members.

 

83.                                 Such committee shall consist of three (3) members
from the day shift and one (1) members each from the second and third
shifts, provided there are at least ten (10) or more employees for each
committee member on the second and third shifts. An additional committee member
will be added at such time, and for as long as, the bargaining unit exceeds 200
employees. Thereafter, an additional committee member will be designated for
every 100 employees added to the bargaining unit.

 

84.                                 The Company shall recognize alternates
appointed to fill a vacancy caused by the vacation or leave of absence of a
committee member, and such alternate shall be allowed to

 

22

 

attend regular monthly
union meetings if they so request.

 

85.                                 At such time as the entire committee is
absent from the plant due to Labor Contract negotiations, two (2) alternate
committee members per shift affected may be appointed by the Union and shall be
recognized by the Company.

 

86.                                 Should any difference or dispute arise between
the Company and its employee(s) concerning the meaning and application of the
provisions of this Agreement, (or should the Union contend that the Company has
violated its obligations under the Agreement to the Union, as such) an earnest
effort shall be made to settle the difference orally. This oral effort shall be
made by the aggrieved employee (or in the case of a breach of obligation to the
Union, as such, by a committee member) and/or not to exceed two committee
members at the option of the employee. If the matter is not resolved orally, it
shall be taken up in the following manner:

 

87.                                 FIRST:  In
writing to the supervisor involved. A meeting shall be held within one (1) working
day after receipt of the written grievance. The Company will normally be
represented at this meeting by the supervisors involved, provided that the
Company may designate alternate or additional First Step Representatives in
appropriate cases. The Union will be represented by the grievant and up to two (2) shop
committee members. The written grievance shall be answered by one of the
Company First Step Representative within two (2) working days after the
first step meeting. If the answer is not satisfactory the grievance shall be
appealed to the next step by the Union within four (4) working days of the
written answer.

 

88.                                 SECOND: Second step meetings will be held
within (7) calendar days of the Union’s request unless otherwise mutually
agreed. The Company shall make its written answer within seven (7) working
days after the meeting at which the grievance is discussed. If the answer is
not satisfactory, the grievance shall be appealed to the next step by the Union
within ten (10) working days of the written answer.

 

89.                                 THIRD: 
Between an International Representative of the Union, the Local Union
President and/or the two Chairpersons of the Shop Committee and the Managers of
the Company and/or other Company Representatives at a regular or special
meeting. One or more witnesses may be called into the meeting by agreement of
the parties. The Company shall make its written answer within ten (10) working
days after the third step meeting in which the grievance is discussed.

 

90.                                 FOURTH: 
If the Union is not satisfied with the third step answer of the Company,
it may, within thirty (30) calendar days of the date of the answer give notice
of its intention to refer the grievance to arbitration. (If the Company fails
to give an answer within the time limit prescribed at Step Three, the Union may
elect to treat the grievance as having been denied and may give notice of its
intent to refer the matter to arbitration.) After such notice is given, the
Company and the Union will attempt to agree upon an impartial arbitrator. If no
agreement is reached within thirty (30) calendar days thereafter the Federal
Mediation and Conciliation Service (FMCS) will thereafter be asked to submit a
panel of seven (7) arbitrators to the parties. The parties shall, upon
receipt of said panel, strike names alternately until one (1) name remains
on the panel; this remaining person shall serve as the impartial arbitrator.
The arbitrator shall have jurisdiction and authority only to interpret, apply,
or determine compliance with the provisions of this agreement insofar as shall
be necessary to the determination of grievances appealed to the arbitrator. The
arbitrator shall not have jurisdiction or authority to add to, detract from or
alter in any way the provisions of this Agreement.

 

23

 

91.                                 Each party shall assume its own expenses in connection
with arbitration, and the fee of the arbitrator shall be paid by the two (2) parties,
one-half (1/2) by each.

 

92.                                 Grievances reduced to writing shall be
dated and signed by the aggrieved employee(s) or their Shop Committee Member,
except that grievances relating to more than two (2) employees shall be
signed by at least two (2) aggrieved employees and the Shop Committee
Member for the area(s) involved. All answers by the Company and all appeals by
the Union shall be in writing, dated and signed by the Company or Union
representative involved.

 

93.                                 In the event an employee dies, the Union
may process on behalf of their legal heirs any claim they would have had
relating to any monies due under the provisions of this Agreement.

 

94.                                 Grievances settled shall be signed off by
a Shop Committee Member and/or International Representative.

 

95.                                 Written grievances and appeals shall be
answered by the Company Representative or their designee within the time limit
fixed therein or the Union may pass the grievance to the next step, except that
in Step 2, if the Company fails to answer within the time limits fixed therein
it shall be considered adjudicated in favor of the employee. Grievances not
appealed within the specified time limits shall not be eligible for further
appeal. All time limits in this Article may be extended with the written
consent of the other party.

 

96.                                 Meetings between the International
Representative of the Union, the Local Union President and/or the two
Chairpersons of the Shop Committee or their alternates, and Managers of the
Company and/or other Company Representatives provided for in the third step of
the grievance procedure, shall be held at least once each month, prior to the
fifteenth (15th) of the month to consider all grievance appeals submitted
during the preceding month. Special meetings will be arranged on a date and at
a time mutually satisfactory in regard to difficulties which may arise and
which need immediate attention.

 

97.                                 Members
of the Shop Committee will be afforded time off at their classification rate
for the purpose of attending meetings with the Company pursuant to the first
three steps of the grievance procedure. A member of the Shop Committee shall
also be allowed time off when necessary at their classification rate, to aid in
the settlement of grievances in the area which they represent. A committee
member on Union activity shall obtain permission from their supervisor (which
shall not be unreasonably denied) and properly record their absence prior to
leaving their work station to conduct these activities; shall report their
presence and their purpose to the supervisor of the department in which they
wish to conduct this activity; and shall report their return to their
supervisor at the conclusion of this activity. Members of the Shop Committee
shall do their utmost to see that their absence from their work station due to
handling of grievances shall be as little as practicable and shall do their
utmost to see that their absence from the work station does not interfere with
production. Company paid time under this section is limited to a weekly
maximum of the sum of seven (7) hours times the number of active committee
members (“the pool”). All time used by the committee members will be deducted
from the pool. Unused hours will not be carried over from week to week.

 

98.                                 All grievances must be presented promptly
and not later than thirty (30) days after the cause of the grievance arises
unless the circumstances of the case made it impossible for the employee or the
Union to know that they had grounds for such claim prior to that date, in which
case the retroactivity shall not exceed thirty (30) days prior to the date the
grievance was filed in writing. Grievances involving discharge must be
presented within three (3) working days of the

 

24

 

action (subject to Par.
102). Grievances alleging improper layoff must be presented within two (2) working
days of the Company notice to the employee of this intended layoff or there
shall be no retroactivity prior to the date of the grievance.

 

99.                                 Grievances alleging improper recall must be
presented within two (2) working days after notice is given to the
employee (at the address last given by them to the Human Resources Department)
that a less senior employee was recalled to a job classification to which they
were entitled, or there shall be no retroactivity prior to the date of the
grievance. In cases of retroactivity the employee will be paid at the rate of
the job classification to which they were entitled.

 

100.                           The Grievance Committee of the Union
shall be notified and given a list of all employees scheduled for layoff or
recall prior to such layoff or recall taking place. The layoff list proposed by
the Company shall not become final until one working day after the Union has
been provided with the list.

 

101.                           The assignment of Shop Committee Members
to their respective plant areas shall be a matter of full knowledge to both the
Union and the Company immediately. It is further agreed, for the purpose of
prompt settlement of grievances, that, where necessary, committee members will
handle grievances without restriction as to area.

 

102.                           Under the provisions of this Agreement,
no employee, after their probationary period provided in Par. 63 of Article VI,
Seniority, shall be discharged or given a disciplinary layoff in excess of five
(5) days, without first being suspended. Such initial suspension shall be
for not more than five (5) working days. During this period of initial
suspension, the employee may, if they believe that they have been unjustly
dealt with, request a hearing and a statement of the offense before their
supervisor or their superintendent or the Human Resources Department
Representative, with a Grievance Committee member or the plant committee
present if they so desire. At such hearing, the facts concerning the case shall
be made available to both parties. After such hearing or if no such hearing is
requested, the management may conclude whether the suspension shall be converted
into discharge or disciplinary layoff, or dependent upon the facts of the case,
whether such suspension shall be extended, or revoked, or modified or affirmed.
If the suspension is revoked, the employee shall be returned to employment and
made whole in the absence of mutual agreement to the contrary; but in the event
a disposition shall result in the affirmation, extension or modification of the
suspension, or in the discharge of the employee, the employee may within three (3) working
days after such disposition allege a grievance in writing on a regular
grievance form which shall be handled in accordance with the procedure outlined
in this Article, beginning with Step Two. Should any employee as a result of
this grievance, have their discipline or discharge revoked, they shall be
returned to work and made whole. In the event of arbitration the arbitrator
shall determine what, if any, substitute earnings or compensation are to be
offset.

 

103.                           Where discipline of an employee is involved or
there is a dispute as to the correctness of an employee’s record of
absence/tardiness, an employee or (with the employee’s permission) their Shop
Committee Member may review their record of absence/tardiness in the presence
of a supervisor.

 

25

 

ARTICLE X

Bulletin Boards

 

104.                           The Company agrees to provide up to two (2) glassed
in bulletin boards with locks to be placed at the South Beloit plant which may
be used exclusively by the Union for posting notices signed by the Union
Secretary or the President of the Local Union and restricted to:

1.                                       Notices of Union recreational and social affairs.

2.                                       Notices
of Union appointments and results of Union elections.

3.                                       Notices of Union meetings.

4.                                       Notices of Union elections.

5.                                       Notices, which shall be non-controversial in
nature, approved by Company Representatives.

 

105.                           It is agreed that the Company may remove
any notice which is not in accordance with the above restrictions.

 

ARTICLE XI

Wages

 

106.                           New and/or changed jobs shall
be described and classified in accordance with the National Position Evaluation
Program, which may be modified as necessary by mutual agreement.  The new or changed description and
classification shall then be submitted to the job evaluation committee and, if
agreed to, shall then be established.  If
no agreement is reached, the Company may place the description and
classification in effect, after which a grievance may be filed at any time
within the next thirty (30) days, contending that the job has been improperly
described and/or classified.

 

107.                           Job evaluation points assigned to a job
classification shall be changed only when it has been established that there
have been changes in the job content or by mutual agreement.

 

108.                           The standard hourly wage schedule of
rates for the respective job classes set forth in Appendix “A” shall become
effective and shall remain in full force and effect for the duration of this
Agreement. A schedule of jobs in each job class is also included in
Appendix “A.” Appendix “A” constitutes the minimum rates of pay for the
applicable job classification (direct and indirect as applicable) and are
incorporated by reference and are fully made a part of this Agreement.

 

109.                           Employees hired on or after January 30, 2005
for all job classifications, other than Assembler and Material Handler, shall
serve a progression period and will be paid in the following manner:

 

A)                                  For their first six months of service, employees
will be paid 20% less than their classification rate.

 

B)                                    For their second six months of service, employees
will be paid 15% less than their classification rate.

 

C)                                    For their third six months of service, employees
will be paid 10% less than their classification rate.

 

26

 

D)                                   For their fourth six months of service, employees
will be paid 5% less than their classification rate.

 

E)                                     After 24 months of service, employees will be
paid their respective classification rate.

 

Employees hired on or
after January 30, 2005 under the new hire rate progression shall be paid
the progression rate for their classification as shown in Appendix A for all
overtime hours worked in their overtime group.

 

For
purposes of this Paragraph 109 employees working in progression under A, B, C,
or D must work not less than eighteen (18) of the working days available during
each 6 months calendar period to qualify towards the next labor grade increase.
In the case of an employee working in progression under A, B, C, or D of this
Paragraph 109 who are placed on leave of absence for any reason, the eighteen
(18) working day rule shall not apply during the progression of B, C, or
D. Holidays shall be considered as days worked. Nothing in this paragraph shall
require the payment of a rate higher than the rate of the job classification to
which the employee is assigned.

 

110.                           It is understood and agreed that nothing
contained in this Article shall prevent the Company from paying a present
employee or a new employee the rate of the job classification to which they are
transferred or assigned, provided they are qualified and able to perform the
work satisfactorily.

 

111.                           When a reduction of employees occurs in a
classification or in the Company, an employee who has attained a classification
above the lowest grade in an occupational group (see Appendix D) shall not be
reduced in rate as long as they are retained at work within that occupational
group. Such rate retention shall also apply in the event such an employee is
recalled to the occupational group from a job classification outside of the
occupational group or from layoff out of the plant.

 

112.                           An employee wishing to be reduced in
classification within an occupational group may exercise this right but once
and only in the event there is a posted opening.

 

113.                           When an employee is transferred to a
classification outside their occupational group in lieu of layoff, they shall
receive the rate of the classification to which they are assigned.

 

114.                           Indirect. When an indirect employee is
temporarily assigned to another indirect job classification outside their own
occupational group, they shall be paid on the basis of either the indirect rate
of their regular job classification or the indirect rate of the classification
to which they are assigned, whichever is greater. When an indirect employee is
temporarily assigned to a direct job classification outside their own
occupational group, they shall be paid the higher of the rate of their regular
job classification or the rate of the job classification to which they are
assigned.

 

Direct.  When a direct employee is temporarily
assigned to another direct job classification outside their own occupational
group, they shall be paid the higher of the direct rate of their regular job
classification or the direct rate of the job classification to which they are
assigned. An employee who is classified in a direct labor classification and
who is temporarily transferred to an indirect labor classification, other than
pursuant to Article VI, shall be paid either the rate of their regular classification
or the rate of the classification to which they are assigned, whichever is
greater.

 

27

 

Employees
hired on or after January 28, 1984, who are working under the new hire
rate progression, will be paid the appropriate rate provided for in this
paragraph when temporarily transferred, reduced to the applicable rate based
upon their time in the new hire rate progression.

 

115.                           No employee shall be temporarily transferred to another
classification outside their occupational group (unless they consent) if there
is an employee from another occupational group working in the group and shift
and in the Operation to which they are regularly assigned; provided that this
limitation shall not apply when an employee has been temporarily transferred
out of the occupational group because of disability or their own request.

 

116.                           It is agreed that a shift differential shall be paid to an
employee regularly assigned to other than the day shift as follows: an employee
who works four or more hours after 3:00 p.m. and before 11:00 p.m.
shall receive a differential of fifteen cents per hour for each hour worked; an
employee who works four or more hours after 11:00 p.m. and before 7:00 a.m.
shall receive a differential of twenty cents per hour for each hour worked. An
employee regularly assigned to the first shift shall not receive a shift
differential for overtime work. No change in method of shift differential pay
will be made for an employee temporarily transferred from one shift to another
for a period not exceeding one day. If such transfer exceeds one day, the shift
differential shall be, or shall not be, paid in accordance with the provisions
of this Paragraph relating to the shift on which they are temporarily working.

 

117.                           The
one-half hour paid lunch period shall continue to be paid to employees
regularly assigned to the second and third shifts. This lunch payment will be
owed to the following categories of employees.

(1)          Employees
regularly assigned to the second or third shift who work four (4) hours or
more between the hours of 3:00 p.m. and 7:00 a.m.

(2)          Employees
regularly assigned to the second or third shift who work six (6) hours or
more after 11:00 a.m. on Saturday or Sunday.

(3)          Employees
regularly assigned to the first shift who work four (4) hours or more
between the hours of 3:00 p.m. and 7:00 a.m. on Saturday or Sunday,
or six (6) hours or more after 11:00 a.m. on Saturday or Sunday.

(4)          Direct
employees who are temporarily transferred to an indirect classification for the
entire work shift shall receive the one-half hour paid lunch period at the
applicable rate.

Saturday and Sunday shall be as
defined in Article IV, Par. 24.

 

118.                           In the event the work of a job
classification as set forth in Appendix “A” is discontinued or becomes
inoperative, the Union will be immediately notified of the reason thereof. Such
notification does not preclude the filing of a grievance should any
disagreement arise between the parties.

 

119.                           Pay Adjustments and
Corrections. Where a “retro” adjustment involves a deduction from the employee’s
pay, no more than $50 will be deducted from any one check.  In the case of gross errors the $50 maximum
will not apply and other arrangements will be made.

 

28

 

ARTICLE XII

Cost-of-Living

 

120.                           For the term of this contract, the cost-of-living
provisions will be frozen.

 

121.                           (A) Except as set forth below in
sub-paragraph (C)(3) and (4), all cost-of-living adjustments provided in
this Article shall be accumulated in a cost-of-living float which shall be
an “add-on,” and shall not be part of an employee’s classification rate. Such
adjustments shall be payable only for clock hours actually worked and for
reporting allowances and shall be included in the calculation of overtime
premium, but, except as provided below, shall not be part of the employee’s pay
for any other purpose and shall not be used in calculation of any other pay,
allowance, or benefit. Cost-of-living adjustments will be included in the
calculation of holiday pay as defined in paragraph 31 of this Agreement.
Vacation pay in any year will be calculated from the prior year’s earnings as
stated on the Wage and Tax Statement (Form W2) in accordance with
paragraph 37 of the Agreement.

 

122.                           (B) The United States Department of
Labor, Bureau of Labor Statistics, Consumer Price Index for Urban Wage Earners
and Clerical Workers - C.P.I. - W U.S. City Average: All items 1982-84 =
100 shall be used as the basis for cost-of-living adjustments provided for in
sections (C), (D) and (E) below. Such index shall be referred to as
the “BLS-CPI.”

 

123.                           (C)(1) During the calendar
year 1999, there shall be four (4) cost-of-living adjustment dates: February 1,
1999, May 1, 1999, August 1, 1999, and November 1, 1999.

 

(2)                                  The cost-of-living adjustment
added to the cost-of-living float on such date (if a Monday) or on the first
Monday following such 1999 adjustment dates, if any, will be an adjustment of
one cent ($.01) for each full four-tenths (.4) points movement in the BLS-CPI
index figures (after the six cent [$.06] “set off” or “corridor” set forth in
[C] [3] below) based upon the following calculation months for the following
1999 adjustment dates:

 

February 1, 1999 –
Subtract September, 1998 index figure from the December, 1998 index figure.

May 1, 1999 – Subtract December, 1998 index figure from the March, 1999 index figure.

August 1, 1999 – Subtract the March, 1999 index figure from the June, 1999 index figure.

November 1, 1999 – Subtract
the June, 1999 index figure from the
September, 1999 index figure.

 

If the calculation for any quarterly adjustment when dividing
four-tenths (.4) into the applicable BLS-CPI index change between calculation
month indexes results in tenths of the index left over, such tenths will be
carried over into the BLS-CPI index change between the calculation month
indexes for the next quarterly adjustment.

 

(3)                                  The first six cents ($.06)
which the above formula would otherwise generate for 1999 cost-of-living
adjustments on the 1999 adjustment
dates will not be paid in any form. No 1999 cost-of-living adjustments will be
added to the cost-of-living float until the first six cents ($.06) which the
application of the formula would produce has been exceeded and then only the
amount generated in excess of six cents ($.06) shall be added to the
cost-of-living float.

 

124.                           (D) (1) During the
calendar year 2000, there shall be four (4) cost-of-living adjustment
dates: February 1, 2000, May 1,2000, August 1, 2000, and November 1,
2000.

 

(2)                                  The cost-of-living adjustment
added to the cost-of-living float on such date (if a Monday) or on the first
Monday following such 2000 adjustment dates, if any, will be an adjustment of
one cent ($.01) for each full four-tenths (.4) points movement in the BLS-CPI
index figures (after the six cent ($.06) “set off” or “corridor” set forth in (D) (3) below
based upon the following calculation months for the following 2000 adjustment dates:

 

29

 

February 1, 2000 – Subtract the September, 1999 index figure from the December,
1999 index figure.

May 1, 2000 – Subtract the December, 1999 index figure from the March, 2000 index figure.

August 1, 2000 – Subtract the March, 2000 index figure from the June, 2000 index figure.

November 1, 2000 – Subtract
the June, 2000 index figure from the
September, 2000 index figure.

 

If the calculation for any
quarterly adjustment when dividing four-tenths (.4) into the applicable BLS-CPI
index change between calculation month indexes results in tenths of the index
left over, such tenths will be carried over into the BLS-CPI index change
between the calculation month indexes for the next quarterly adjustment.

 

(3)                                  The first six cents ($.06)
which the above formula would otherwise generate for 2000 cost-of-living
adjustments on the 2000 adjustment
dates will not be paid in any form. No 2000 cost-of-living adjustments will be
added to the cost-of-living float until the first six cents ($.06) which the
application of the formula would produce has been exceeded and then only the
amount generated in excess of six cents ($.06) shall be added to the
cost-of-living float.

 

125.                           (E) (1) During the
calendar year 2001, there shall be four (4) cost-of-living adjustment
dates: February 1, 2001, May 1, 2001, August 1, 2001, and November 1,
2001.

 

(2)                                  The cost-of-living adjustment
added to the cost-of-living float on such date (if a Monday) or on the first
Monday following such 2001 adjustment dates, if any, will be an adjustment of
one cent ($.01) for each full four-tenths (.4) points movement in the BLS-CPI
index figures (after the three cent ($.03) “set off” or “corridor” set forth in
(E) (3) below) based upon the following calculation months for the
following 2001 adjustment dates:

 

February 1, 2001 –
Subtract September, 2000 index figure from the December, 2000 index figure.

May 1, 2001 – Subtract
December, 2000 index figure from the March, 2001 index figure.

August 1, 2001 – Subtract
the March, 2001 index figure from the June, 2001 index figure.

November 1, 2001 –
Subtract the June, 2001 index figure from the September, 2001 index figure.

 

If the calculation for any
quarterly adjustment when dividing four-tenths (.4) into the applicable BLS-CPI
index change between the calculation month indexes results in tenths of the
index left over, such tenths will be carried over into the BLS-CPI index change
between the calculation month indexes for the next quarterly adjustment.

 

(3)                                  The first three cents ($.03)
which the above formula would otherwise generate for 2001 cost-of-living
adjustments on the 2001 adjustment dates will not be paid in any form. No 2001
cost-of-living adjustments will be added to the cost-of-living float until the
first three cents ($.03) which the application of the formula would produce has
been exceeded and then only the amount generated in excess of three cents
($.03) shall be added to the cost-of-living float.

 

126.                           (F) In no event will a reduction of
the BLS-CPI and the application of the formulas set forth in Subsection (C),
(D) and (E) provide the basis for a reduction of an employee’s base
rate and such reduction shall reduce the cost-of-living “add on” only to the
extent of the amount accumulated in the cost-of-living float for the quarter or
quarters involved.

 

127.                           (G) No adjustments, retroactive or
otherwise, shall be made due to any revision which may later be made in the
published BLS-CPI index for any month or months specified in Subsections (C), (D) and
(E) above.

 

128.                           (H) Should the BLS-CPI, in its
present form and on the same basis (including composition of the “Market Basket”
and Consumer Sample) as the last index published prior to January 1, 1999
become unavailable, the parties shall attempt to adjust this Article or,
if agreement is not reached, request the Bureau of Labor Statistics to provide
the appropriate conversion or adjustment which shall be applicable thereafter.
The purpose of such conversion

 

30

 

shall be to produce as
nearly as possible the same result as would have been achieved using the
BLS-CPI in its present form.

 

129.                           (I) In the event the Bureau of Labor
Statistics does not issue the Consumer Price Index on or before the beginning
of the pay periods referred to above, any adjustments required will be made at
the beginning of the first pay period after receipt of the Index.

 

ARTICLE XIII

Safety and Health

 

130.                           The Company and the Union will cooperate in the
objective of eliminating accidents and health hazards. The Company shall
continue to make reasonable provisions for the safety and health of its
employees at the plants during the hours of their employment. The Company, the
Union and the employees recognize their obligations and/or rights under
existing federal and state laws with respect to safety and health matters.

 

131.                           Protective
devices and safety apparel necessary to properly protect employees from
injuries shall be provided by the Company. Complaints concerning inadequate
heating and/or ventilation will be given prompt and due consideration.

 

132.                           The Company will request a physical
examination of each and every new employee hired before they report for work.
They may from time to time request a physical examination of employees now on
the payroll of the Company. It is expressly understood and agreed that any
physical examination of employees on the payroll shall be made at the Company’s
expense and shall not be done for the express purpose of separating the
employee from the payroll of the Company.

 

133.                           Employees injured at work who, upon direction of
the Company approved medical provider or facility, are unable to complete their
shift shall be paid at their classification rate for the difference between the
hours actually worked on that day and

 

1)                                      On Monday through Friday, the hours they were
actually scheduled to work that day, but not more than eleven; or

 

(2)                                  On Saturday, Sunday or holiday if the
injury took place during the first four (4) hours of work, four (4) hours
at the applicable premium rate of pay; or, if the injury took place after four (4) hours
of work, the number of hours for which they were scheduled (not in excess of
eight) at the applicable premium rate of pay.

 

Nothing herein is
intended to prevent employees from seeing a doctor of their own choice, but if
they do so on the day of the injury payment under this clause shall require the
concurrence of the Company.

 

134.                           A
Safety Committee consisting of three employees designated by the Union and at
least two management members designated by the Company shall be established to
cover the plant. The Safety Committee shall hold monthly meetings at times
determined by the Committee. The Committee may engage in periodic safety tours
of the items agendaed as part of its regular safety meetings. Time spent in
committee meetings and official committee plant tours shall be considered hours
worked to be compensated by the Company. The function of the Safety Committee
shall be to advise the plant management concerning safety and health and to
discuss

 

31

 

legitimate safety and health matters but not to handle grievances. In
the discharge of its function, the Safety Committee shall: consider existing
practices and rules relating to safety and health, formulate suggested
changes in existing practices and rules, recommend adoption of new practices
and rules, review proposed safety and health programs developed by management
and review accident severity and frequency statistics. All accidents involving
fatalities or serious disabling injuries, or such other serious situations as
merit investigation, such as fires, explosions, or like catastrophes shall be
agendaed to the Safety Committee for consideration. Upon request, the Union
Safety Committee will be given access on a confidential basis to reports or studies
that directly relate to safety hazards, health or dangerous conditions that
exist in the plant (e.g., air sampling and noise monitoring). A Union Safety
Committee Member upon notice to the Management Safety Council shall be given
affordable time to present issues pertaining to safety, at the Management
Safety Council meeting.

 

135.                           The Union Chairperson or a designee shall
be notified immediately when a serious accident has occurred. By the tenth of
each month the Company will provide the Union a list of all employees who were
sent from work to the physician for treatment during the prior month for work
related (or claimed work related) injuries claimed at work during that month.

 

136.                           The Union Chairperson or a designee will
be afforded time off from their job as may be required to visit departments at
all reasonable times for the purpose of transacting the legitimate business of
the Committee, after notice to the supervisor of the department to be visited
and the permission (which shall not be withheld) from their own supervisor. The
Company will pay up to four (4) hours/week toward the time spent in such
activity.

 

137.                           New rules and regulations applicable
to safety and health will be posed and discussed with the Safety Committee with
the objective of increasing employee cooperation.

 

138.                           Recommendations of the Safety Committee
shall be submitted to the appropriate Manager for their consideration and for
such action that they may consider consistent with the Company’s responsibility
to provide for the safety and health of its employees during the hours of their
employment and the mutual objective set forth in Par. 130.

 

139.                           Grievances involving safety matters shall first
be raised orally between the grieving employee and their supervisor as provided
in the grievance procedure. If the grievance is not satisfactorily resolved,
the employee may immediately (within two (2) working days) file in writing
in the second step under such procedure.

 

ARTICLE XIV

Insurance and Pensions

 

140.                           The insurance program is outlined in the
Insurance Agreement shall remain in effect for the life of this Agreement.
Benefits payable under the Hospital and Surgical provisions (Daily Room and
Board, In-Hospital Medical Care, Diagnostic X-ray and Laboratory Examinations,
and the Surgical Schedule) outlined in the Insurance Agreement will not
duplicate any benefits payable under any other employer group insurance or
prepayment plan.

 

141.                           Any benefits payable under said
provisions will be coordinated so that the total Benefits Payable under all
such group plans will not exceed 100% of the charges for such services.

 

142.                           The term “employer group or prepayment
plan” is defined as any group plan for which

 

32

 

any employer makes contributions
or for which any employer provides a means of collecting contributions required
by employees (including payroll deduction).

 

143.                           The Pension Agreement, separately executed, shall
remain in effect for the term of this Agreement.

 

ARTICLE XV

Severance Allowance

 

144.                           When in the sole judgment of the Company it
decides to permanently discontinue the operation of a plant or a substantial section of
a plant and finds it necessary to terminate the employment of employees as a
result thereof, any employee whose employment is terminated either directly or
indirectly as a result thereof and who is not entitled or indirectly as a
result thereof and who is not entitled to other employment with the Company
under the provisions of Article VI of this Agreement or Par. 146 below
will be entitled to a severance allowance in accordance with and subject to the
provisions of this Article.

 

145.                           Eligibility.  To be eligible for a severance allowance an
employee must have accumulated one or more years of seniority at the time of
termination, as computed in accordance with Article VI of this Agreement.

 

146.                           As an exception to Par. 145 above,
however, any employee otherwise eligible for a severance allowance who is
offered a job within the bargaining unit under the provisions of Article VI
of this Agreement will not be entitled to severance allowances whether they
accept or reject the job offer. If such a transfer results directly in the
permanent termination of some other employee, that employee will then be
eligible for a severance allowance, subject to all of the other provisions of
this Article.

 

147.                           In lieu of severance allowance, the
Company may offer an eligible employee a job outside the bargaining unit. The
employee will have the option of either accepting the job offered or receiving
severance allowance.

 

148.                           Scale of Allowance – An eligible employee will
receive a severance allowance based on his seniority at the time of termination
as follows:

 

	
  Seniority as of Date

  of Termination

  	
   

  	
  Weeks of

  Severance

  Allowance

  
	
   

  	
   

  	
   

  
	
  1 year but less than 2 years

  	
   

  	
  2 weeks

  
	
  2 years but less than 5 years

  	
   

  	
  4 weeks

  
	
   

  	
   

  	
   

  
	
  5 years but less than 10 years

  	
   

  	
  6 weeks

  
	
  10 years but less than 20 years

  	
   

  	
  8 weeks

  
	
  20 years or more

  	
   

  	
  12 weeks

  

 

149.                           Calculation of Allowance – A week of severance
allowance will be calculated in accordance with the provisions for calculating
a week of paid vacation as set forth in Article V of

 

33

 

the
Agreement.

 

150.                           Payment of Severance Allowance – Payment
of any severance allowance for which an employee may be eligible will be made
in a lump sum at the time of termination.

 

151.                           Notwithstanding any other provisions of this
Article, any employee who is eligible for a severance allowance under the
provisions of this Article, may, at the time of termination, elect to be placed
on layoff status for a period of one (1) year, rather than to be
terminated and receive severance allowance. At the end of such period, such an
employee may elect to remain on layoff status or to be terminated and receive
the severance allowance to which they are entitled. If such an employee elects
to remain on layoff at the expiration of such period, they will forfeit their
right to the severance allowance to which they would otherwise be eligible.

 

152.                           An employee who voluntarily terminated their
employment with the Company before they are terminated by the Company will not
be entitled to a severance allowance.

 

153.                           Nonduplication of Allowance.   Severance allowance shall not be duplicated
for the same severance, whether the other obligation arises by reason of
contract, law, or otherwise. If an individual is or shall become entitled to
any discharge, liquidation, severance or dismissal allowance or payment of
similar kind by reason of any law of the United States of America or any of the
states, districts, or territories thereof subject to its jurisdiction, the
total amount of such payments shall be deducted from the severance allowance to
which the individual may be entitled under this Article, or any payment made by
the Company under this Article may be offset against such payments.
Statutory unemployment compensation payments shall be excluded from the
nonduplication provisions of this Section, except that the severance allowance
will be allocated by the Company to the equivalent number of weeks immediately
following termination.

 

ARTICLE XVI

Termination,
Expiration and Scope

 

154.                           The terms and conditions of the
Agreement shall continue in full force and effect until 12:01 a.m. February 3,
2008, and shall continue in full force and effect indefinitely thereafter,
provided, however, that either party may terminate this Agreement at any time
on or after February 3, 2008 by giving to the other party at least sixty
days prior written notice by certified mail of its election to terminate. In
the event the Company shall desire such termination of the Agreement, such
notice shall be sent by certified mail to the District Office of the United
Steelworkers of America, 1126 South 70th Street, Suite S106A,
West Allis, WI 53214 and a copy shall be sent to the offices of Local Union
3245 at 1620 Shore Drive, Beloit, Wisconsin, 53511. In the event the Union
shall desire such termination of the Agreement, notice of such desire shall be
sent by the Union by certified mail to the offices of the Company, 449 Gardner
Street, South Beloit, IL 61080. Either party may by written notice change the
address to which certified mail notice to it shall be given.

 

ARTICLE XVII

Compliance with Law

 

155.                           It is understood and agreed that if any of the
terms and provisions of this Agreement are, or become in violation of any State
or Federal laws, they are null and void so long as they may be in violation,
and it is further agreed that the parties hereto shall immediately meet for the
purpose of resolving any term or provisions so indicated.

 

34

 

	
  UNITED STEELWORKERS OF AMERICA

  
	
   

  
	
  Leo W. Gerard

  
	
  President

  
	
  United Steelworkers of America

  
	
   

  
	
  James D. English

  
	
  Secretary-Treasurer

  
	
   

  
	
  Thomas Conway

  
	
  Vice President

  
	
  (Administration)

  
	
   

  
	
  Leon Lynch

  
	
  Vice President

  
	
  (Human Affairs)

  
	
   

  
	
  Harry E. Lester

  
	
  Director District 2

  
	
   

  
	
  Doug Drake

  
	
  Sub Director District 2

  
	
   

  
	
  Bill Breihan

  
	
  Staff Representative

  
	
   

  
	
  Steve Reynolds

  
	
  President, Local 3245

  
	
   

  
	
  Robert Caples

  
	
  Committeeperson

  
	
   

  
	
  Gary Gillett

  
	
  Committeeperson

  
	
   

  
	
  James Elliott

  
	
  Committeeperson

  
	
   

  
	
  Gary Huffman

  
	
  Committeeperson

  
	
   

  
	
  WARNER ELECTRIC, LLC.

  
	
   

  
	
  Stan Owens

  
	
  Operation’s Manager

  
	
   

  
	
  Charles Evans

  
	
  Human Resource Manager

  
	
   

  
	
  Gary Simpler

  
	
  Legal Counsel

  
	
   

  
	
  Tim McGowan

  
	
  Vice President

  
	
  Human Resources

  
	
   

  
	
  Judy Crandall

  
	
  Human Resources
  Rep

  

 

35

 

September 19,
1986

 

 

Mr. Lawrence
Duncan

 

Staff
Representative

 

United
Steelworkers of America

 

Beloit,
Wisconsin 53511

 

 

Dear
Mr. Duncan:

 

Our
policy is to utilize our own employees to the maximum practical extent in
production and maintenance work. At the same time, it is recognized that
problems of skill, equipment, time, economy, and know-how may render it
necessary or expedient to subcontract. Whenever the Union feels that
subcontracting involves work which could be done economically and within the
prescribed time limits by bargaining unit employees, the Company will discuss
and explain the matter upon request to the Union. It is further agreed that the
Company will notify the Union in writing prior to subcontractors coming into
the plant to perform such work or such work being sent out, or contracts to
perform such work being signed by management. This letter is not merely meant
to constitute a notification procedure but it is intended to, where possible,
provide sufficient advance notice so as to allow the Union to, upon request,
discuss the decision.

 

 

Sincerely,

 

 

Donald
F. Sorensen

 

Manager
- Employee Relations

 

Warner
Electric Brake & Clutch Company

 

36

 

Pension

 

For employees who retire or otherwise become eligible on or after
January 30, 2005 the following formulas apply:

 

 

Formula to be used for benefits received effective
January 30, 2005:

 

$31.00 multiplied by years of continuous service.

 

37

 

APPENDIX “A”

 

Direct Labor 2005-2007

 

	
   

  	
   

  	
   

  	
   

  	
  2005

  1% Lump

  	
   

  	
   

  	
   

  	
  01/29/06

  2006

  2%

  	
   

  	
   

  	
   

  	
  01/28/07

  2007

  2%

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2007

  	
   

  
	
  JOB CLASSIFICATIONS

  	
   

  	
  Base

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  
	
  Assembler

  	
   

  	
  15.96

  	
   

  	
  0

  	
   

  	
  15.96

  	
   

  	
  0.32

  	
   

  	
  16.28

  	
   

  	
  0.33

  	
   

  	
  16.61

  	
   

  
	
  Machinist

  	
   

  	
  17.38

  	
   

  	
  0

  	
   

  	
  17.38

  	
   

  	
  0.35

  	
   

  	
  17.73

  	
   

  	
  0.35

  	
   

  	
  18.08

  	
   

  
	
  Shop
  Coordinator

  	
   

  	
  17.85

  	
   

  	
  0

  	
   

  	
  17.85

  	
   

  	
  0.36

  	
   

  	
  18.21

  	
   

  	
  0.36

  	
   

  	
  18.57

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Indirect Labor 2005-2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Material
  Handler

  	
   

  	
  15.12

  	
   

  	
  0

  	
   

  	
  15.12

  	
   

  	
  0.30

  	
   

  	
  15.42

  	
   

  	
  0.31

  	
   

  	
  15.73

  	
   

  
	
  Truck
  Driver

  	
   

  	
  14.89

  	
   

  	
  0

  	
   

  	
  14.89

  	
   

  	
  0.30

  	
   

  	
  15.19

  	
   

  	
  0.30

  	
   

  	
  15.49

  	
   

  
	
  Truck
  Driver Diesel

  	
   

  	
  15.41

  	
   

  	
  0

  	
   

  	
  15.41

  	
   

  	
  0.31

  	
   

  	
  15.72

  	
   

  	
  0.31

  	
   

  	
  16.03

  	
   

  
	
  Senior
  Return Material Specialist

  	
   

  	
  16.88

  	
   

  	
  0

  	
   

  	
  16.88

  	
   

  	
  0.34

  	
   

  	
  17.22

  	
   

  	
  0.34

  	
   

  	
  17.56

  	
   

  
	
  Inspector

  	
   

  	
  17.07

  	
   

  	
  0

  	
   

  	
  17.07

  	
   

  	
  0.34

  	
   

  	
  17.41

  	
   

  	
  0.35

  	
   

  	
  17.76

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skilled Labor 2005-2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tool & Die A

  	
   

  	
  18.32

  	
   

  	
  0

  	
   

  	
  18.32

  	
   

  	
  0.37

  	
   

  	
  18.69

  	
   

  	
  0.37

  	
   

  	
  19.06

  	
   

  
	
  Senior Tool & Die

  	
   

  	
  18.70

  	
   

  	
  0

  	
   

  	
  18.70

  	
   

  	
  0.37

  	
   

  	
  19.07

  	
   

  	
  0.38

  	
   

  	
  19.45

  	
   

  
	
  Master Mechanic A

  	
   

  	
  18.09

  	
   

  	
  0

  	
   

  	
  18.09

  	
   

  	
  0.36

  	
   

  	
  18.45

  	
   

  	
  0.37

  	
   

  	
  18.82

  	
   

  
	
  Senior Master Mechanic

  	
   

  	
  18.52

  	
   

  	
  0

  	
   

  	
  18.52

  	
   

  	
  0.37

  	
   

  	
  18.89

  	
   

  	
  0.38

  	
   

  	
  19.27

  	
   

  
	
  Electrician A

  	
   

  	
  19.10

  	
   

  	
  0

  	
   

  	
  19.10

  	
   

  	
  0.38

  	
   

  	
  19.48

  	
   

  	
  0.39

  	
   

  	
  19.87

  	
   

  
	
  Senior Electrician

  	
   

  	
  19.49

  	
   

  	
  0

  	
   

  	
  19.49

  	
   

  	
  0.39

  	
   

  	
  19.88

  	
   

  	
  0.40

  	
   

  	
  20.28

  	
   

  

 

New Hires on or after
January 30, 2005

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2006

  2%

  	
   

  	
   

  	
   

  	
  2007

  2%

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2005

  	
   

  	
  2005

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2007

  	
   

  
	
  JOB CLASSIFICATIONS

  	
   

  	
  Base

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  	
  INCREASE

  	
   

  	
   

  	
   

  
	
  Material Handler

  	
   

  	
  10.00

  	
   

  	
  N/A

  	
   

  	
  10.00

  	
   

  	
  0.20

  	
   

  	
  10.20

  	
   

  	
  0.20

  	
   

  	
  10.40

  	
   

  
	
  Assembler

  	
   

  	
  10.50

  	
   

  	
  N/A

  	
   

  	
  10.50

  	
   

  	
  0.21

  	
   

  	
  10.71

  	
   

  	
  0.21

  	
   

  	
  10.92

  	
   

  

 

38

 

APPENDIX “B”

(Rate
Retention Groups)

 

1.               Material Handler

2.               Assembler

3.               Machinist

4.               Shop Coordinator

5.               Inspector

6.               Senior Return Material Specialist

7.               Truck Driver

8.               Truck Driver Diesel

9.               Senior Tool & Die, Tool & Die A

10.       Senior Master Mechanic, Master Mechanic A

11.       Senior Electrician, Electrician A

 

 

APPENDIX “C”

Overtime Distribution Agreement

 

1.                                       Supervisors shall be responsible for the
equilization of overtime and for maintaining and

the
daily posting of overtime distribution records; each group showing the names of
the employees in the group and the overtime hours worked and/or declined by
each employee, total overtime hours charged, and the employee’s shift and
overtime group to which assigned. Overtime hours charged but not worked will be
identified with a circle around the hours charged.

 

2.                                       Overtime within each overtime group shall be
maintained within the thirty straight time

hour
spread, regardless of shift.

 

3.                                       Only overtime that is offered to an employee on
or before his shift prior to the shift on which the overtime is to be worked
will be charged to an employee who declines the offered overtime. It is agreed
that in the event an employee is scheduled to work overtime for any of the
reasons spelled out below, they shall be charged. There is no intent to allow
anyone to arbitrarily schedule an employee to work overtime just for the
sake of charging them to bring their overtime in line without working anyone.
It is understood that the twenty-four (24) hour period begins at the time the
first employee will begin their overtime.

 

4.                                       No employee shall be discriminated against or
disciplined for their inability to work overtime, except that an employee shall
be required to work overtime if they have agreed to do so, or if they have been
notified to work overtime at least forty (40) hours ahead of time and have not
been excused.

 

5.                                       Overtime hours worked or declined by the employee
shall be charged on the basis of straight time for each hour.

 

6.                                       When an employee new to the Company has passed
sixty days of their probationary period, they shall be charged with the average
overtime hours in the overtime group to which they are assigned. The new
employee will not work overtime hours prior to their 60th day unless all

 

39

 

employees
in their overtime group are assigned to work overtime, or unless all other
available employees in their overtime group have been asked to work.

 

7.                                       When an employee is transferred (other than
temporary transfers) they shall be charged with the average of the overtime
group to which they are assigned on the first day of their transfer.

 

8.                                       When an employee in an overtime group is absent
for any reason, they shall be charged for the overtime hours that they could
have worked had they been available.

 

9.                                       When the Company attempts, but is unable
to contact any employee not on Company premises, the employee shall not be
charged with the overtime hours which the Company was attempting to offer them.

 

10.                                 The Company may schedule employees to
continue work during overtime hours which they were performing during
straight-time hours even though this may create a temporary imbalance of
overtime opportunities within the limitations specified in Paragraph 2 above.

 

11.                                 When an overtime group is exhausted the Company
will use an employee from that same occupational group provided there is not an
experienced employee currently in the area.

 

12.                                 If an overtime group is not exhausted, and an
employee from another overtime group performs overtime work in that overtime
group (except as is provided in Paragraph 34, Article IV) the Company
shall reimburse the low employee in the overtime group for the actual overtime
hours they would otherwise have worked, at the appropriate overtime premium
rate. It is recognized that time to time an employee scheduled for overtime may
fail to report as scheduled, and the Company may assign an employee from
another overtime group if necessary, or an employee from the proper overtime
group, whichever is practicable, without incurring any violation of these
overtime distribution provisions, until such time as with reasonable diligence
a proper employee from the proper overtime group can be assigned. For purposes
of this Appendix, the availability of an employee in an overtime group shall be
considered exhausted if all hours of overtime opportunity are offered to the
employees within the overtime group in a twenty-four (24) hour period in
accordance with the provisions of Article III and Article IV of this
Agreement.

 

13.                                 If the Company bypasses the lowest available
employee in the overtime group (and the overtime hours of such employee are
lower than the permissible spread at the time the overtime begins), the Company
shall be liable to reimburse such employee at the appropriate overtime premium
rate for the actual overtime hours they otherwise would have worked. Employees
who receive reimbursement without working shall be charged with the appropriate
number of hours on the overtime list.

 

14.                                 The overtime distribution total shall continue
from year to year without a cutoff date being applicable. In other words, if an
employee is behind on their overtime opportunities for the previous contract
year, they shall have first opportunity for overtime hours in the succeeding
year. The overtime totals shall be carried over at the end of each contract
year in the same manner as they are carried over from month to month during the
contract year.

 

15.                                 For purposes of overtime distribution only, a vacation
taken in weekly increments will be considered to start on Friday after the
completion of the employee’s shift and finishing at the start of the employee’s
shift on Monday following the week or the multiple of weeks vacation. In the

 

40

 

case
of a day or day’s vacation immediately before a weekend, the weekend shall be
considered as part of the employee’s vacation with work commencing on their
regular shift on Monday. If the employee elects to take a day or day’s vacation
starting Monday, the vacation will be considered as having started on the
previous Friday at the end of the employee’s shift. In the case of single day’s
vacation taken on Friday or Monday, an employee may at their option, if asked,
work weekend overtime.

 

16.                                 In scheduling weekend overtime the following
procedure shall apply:

 

(A) The
supervisor involved will, in accordance with normal practice, determine how
many, and which employees are required for Friday, Saturday, and Sunday overtime.

 

Should
the supervisor determine to ask an employee who would be “on vacation” (which,
in accordance with this paragraph 15 of the Overtime Distribution Agreement,
begins at the end of their shift on Friday) the employee will be charged for
overtime if asked. If the employee’s entire overtime group has been scheduled,
the employee will be considered “asked.”

 

(B) The
Company may, either by asking the employee as an individual or by scheduling
their entire overtime group, offer an employee overtime work on the Friday or
Saturday or Sunday which begins their vacation. No disciplinary action will be
taken if the employee refuses this overtime unless they have accepted the
overtime assignment and fail to report.

 

When the Company
schedules or asks an entire overtime group for a week or more at a time all
employees in that overtime group will be charged for all hours scheduled or
asked unless the employees overtime is cancelled by a supervisor.

 

When an employee is on
leave of absence or vacation they will be charged for overtime hours worked if
one employee above the employee on leave of absence or vacation and all the
employees below are asked to work.

 

(C) With
the exception of the Friday or Saturday or Sunday which begins as employee’s
vacation, an employee on vacation will not be eligible for overtime assignments
during their vacation, but will however be charged for overtime in accordance
with Paragraph 8 of the Overtime Distribution Agreement.

 

17.                                 If an employee has a physical limitation, known
to the supervisor, due to a dermatitis condition, back or weight limitation, or
legal restriction, etc., so that they are precluded from these tasks during
straight time hours, they will not be permitted to work at these tasks on
overtime hours. However, they shall be charged for all overtime hours that
would have been available to them, provided that another employee actually
performs the work. Such limitation shall be noted on the overtime record.

 

18.                                 The Company shall make every attempt to notify
employees of overtime as soon as possible.

 

41

 

APPENDIX “D”

OVERTIME GROUPS

 

	
  Group #1 – Material Handler

  
	
  Group #2 – Assembler

  
	
  Group #3 – Machinist

  
	
  Group #4 – Shop Coordinator

  
	
  Group #5 – Inspector

  
	
  Group #6 – Senior Return Material Specialist

  
	
  Group #7 – Truck Driver

  
	
  Group #8 – Truck Driver Diesel

  
	
  Group #9 – Senior Tool & Die, Tool & Die A

  
	
  Group #10 – Senior Master Mechanic, Master Mechanic A

  
	
  Group #11 – Senior Electrician, Electrician A

  

 

 

LETTER OF UNDERSTANDING

 

Any
overtime groups agreed to, are subject to change as new cells are developed.

 

42

 

ENROLLMENT DATES

Group Health Insurance

The participant can
re-enroll on January 1st of each year. The participants cannot make a
change in plan coverage unless there is a qualifying event such as marriage,
birth, etc. Changes such as adding a dependent, dropping a dependent may be
made at any time during the year.

 

Option Life

Participants
may enroll or increase their coverage once a year during the first two calendar
weeks of December. They may stop at any time with 30 days advanced notice.

 

401(k)

Initial enrollments,
changes in the amount of contribution, investment elections, and investment
transfers can be done at any time. Contributions may be stopped at any time.
Participants may reenroll the first day of the following month after they stop
deductions.

 

APPENDIX “E” INSURANCE

SCHEDULE OF
BENEFITS

 

	
  For You

  	
   

  	
  For Your Dependents

  	
   

  
	
  Life insurance:

  $35,000 effective 1/30/05

  	
   

  	
  Life insurance:

  Spouse $4,000

  Each dependent child $2,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional life and AD&D:

  In $1,000 increments combined maximum

  coverage $55,000 through payroll deduction.

  	
   

  	
  Additional spouse and dependent
  life insurance:

  Spouse $10,000/dependent
  $4,000 available

  through payroll deduction.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sickness & Accident:

  1/30/05 - $360/26 weeks

  1/29/06 - $370/26 weeks

  1/28/07 - $380/26 weeks

  	
   

  	
  Not applicable.

  	
   

  

 

Life
insurance and accidental death and dismemberment insurance benefits are both
occupational and non-occupational.  All
other benefits are non-occupational.

 

No
benefits for A.D. & D. shall be payable for any loss resulting from
taking poison, asphyxiation, or inhalation of gas, self-destruction, acts
attributable to war and other causes specified in the policy; or, when the date
of accidental bodily injury is more than one hundred twenty days from the date
the loss is sustained.

 

Accident
and sickness benefits begin on the first day of accident, first day of
hospitalization or outpatient surgery, and eighth day of sickness, and continue
for a maximum of twenty-six weeks during any one period of disability.  Worker’s Compensation to be supplemented by
Accident and Sickness Benefit including a payment at the per diem Sickness and
Accident level (1/5th of the Sickness and Accident Weekly Benefit
Amount) for the Worker’s compensation waiting period (not including the day of
the accident which is covered by Paragraph 133 of the Collective Bargaining
Agreement).  Such supplement for the
waiting period may be by direct payment or

 

43

 

insured
with the Sickness and Accident carrier and if the waiting period is
subsequently paid by any other insurance, by any governmental agency or from
any other source, the Company shall be entitled to reimbursement from the
employee by payroll deduction, set off from future Worker’s compensation
payments from the Worker’s Compensation insurance carrier or any other
reasonable method of recoupment, other than recoup from a private policy
carried by the individual employee where he or she is paying the full premium.

 

The
individual certificate will define a continuous disability or confinement.

 

“Dependents”
include only, your spouse and unmarried children from the date of live birth until
nineteen years, stepchildren and legally adopted children are eligible
dependents; but parents or other relatives are not eligible for dependent
coverage even though supported by you. 
Children after attainment of age nineteen while incapable of self support
because of a disabling sickness or injury that commenced prior to age nineteen
are covered provided such child was eligible for coverage as a dependent prior
to age nineteen.  Such children must
otherwise meet the definition of dependent children, must legally reside with
you, and must be principally supported by you. 
Children until age twenty seven are eligible dependents if they are
full-time students at an accredited school provided they are unmarried and otherwise
a dependent.

 

Eligibility
– A regular employee actively at work will be eligible immediately.  Future new regular employees will become
eligible on the first day of the month after hire.

 

Employees
and dependents who retire between the ages of 57 and 65 shall have their
coverage continued (except for regular life insurance, A.D. & D., and
weekly sickness and accident benefits) until such time as they are qualified
for Medicare or Medicaid or in the case of children until they no longer
qualify because of age, disability, marriage, etc.

 

Diagnostic
X-ray and Laboratory Services – in or out of hospital when required in the
diagnosis of any condition or disease or injury on a usual and customary
basis.  Such charges to include pap
smear, urinalysis and blood tests.

 

Examination
– Electrocardiogram, Electroencephalograms, Basal Metabolism tests, and
radioactive isotope studies on a usual and customary basis.

 

Radiation Therapy – in or
out of hospital.

 

Anesthesia
– Professional administration in connection with surgical or obstetrical cases.

 

INSURANCE AGREEMENT

 

THIS
AGREEMENT is made and entered into this 30th day of January 2005
by and between WARNER ELECTRIC, LLC or its successors or assigns (hereinafter
referred to as the “Company”) and the UNITED STEELWORKERS OF AMERICA
(hereinafter referred to as the “Union”) on behalf of itself and LOCAL UNION
NO. 3245.

 

Definitions

 

1.                                       Wherever used herein:

 

(a)                                  “Employee” means an individual in the bargaining
unit who has completed their

 

44

 

first 60 days (except for health care);

 

(b)                                 “Program” means the program of insurance benefits
established by this Agreement;

 

(c)                                  “Prior Program” means the program of insurance
benefits in effect as of November 5, 1989.

 

Program
of Insurance Benefits

 

2.                                       The Program shall be applicable to
Employees while this Agreement is in effect in accordance with the provisions
of this Agreement, subject to the following provisions:

 

(a)                                  Employees not actively at work on January 30,
2005 shall not be eligible to participate under the Program until they return
to active work on or January 30, 2005 provided, however, that any Employee
who shall return to work and who shall subsequently become eligible for
benefits due to a recurrence of a disability or claim which commenced prior to January 30,
2005, will be eligible for benefits at the applicable rates of benefits
provided for under the Program, but only for the balance of the period for
which he would have been entitled to benefits under the Prior Program.

 

(b)                                 Benefits provisions of the Program not contained
in the Prior Program shall not be applicable to any period prior to March 1,
1990.

 

(c)                                  The amounts of life insurance after retirement
provided for under the Program shall be applicable to retirements on or after January 30,
2005.

 

Anthem
Blue Cross Blue Shield

 

3.                                       (a)                                  Effective March 1, 2002, a new comprehensive
major medical, hospital, surgical and medical program and a modified drug plan
will become effective for all employees per negotiated specifications set forth
more completely in the Insurance Booklet. Basic features of the plan are as
follows:

 

ANTHEM SCHEDULE OF
BENEFITS

 

	
  Benefit

  	
   

  	
  In-Network

  	
   

  	
  Out-of-Network

  
	
  Annual Deductible

  	
   

  	
  None

  	
   

  	
  $200/400

  
	
  Coinsurance

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Out-of-Pocket Maximum

  	
   

  	
  $1,000/$2,000

  	
   

  	
  $2,500/$5,000

  
	
  Lifetime Maximum

  	
   

  	
  Unlimited

  	
   

  	
  Unlimited

  
	
  Eligibility Period

  	
   

  	
  1st Day of the Month After Hire

  	
   

  	
  1st Day of the Month After Hire

  
	
  Inpatient Hospital Services

  	
   

  	
   

  	
   

  	
   

  
	
  Inpatient Care

  	
   

  	
  $200 Copay then 100%

  	
   

  	
  80%/20%

  
	
  Surgery & Anesthesia

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Physicians Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  *Supplies & Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  

 

45

 

	
  Rehabilitative Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  X-ray & Lab Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Outpatient Services

  	
   

  	
   

  	
   

  	
   

  
	
  Urgent Care

  	
   

  	
  $15 Copay/$30 Specialist Copay

  	
   

  	
  80%/20%

  
	
  Outpatient Surgery

  	
   

  	
  $100 Copay then 100%

  	
   

  	
  80%/20%

  
	
  Maternity Services

  	
   

  	
   

  	
   

  	
   

  
	
  Office Visits

  	
   

  	
  100% After Initial $15 Copay

  	
   

  	
  80%/20%

  
	
  Hospital Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Prenatal-Postpartum

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Mental Health

  	
   

  	
   

  	
   

  	
   

  
	
  Inpatient

  	
   

  	
  $200 Copay then 100%

  No Specific Limit ***

  	
   

  	
  80%/20%***

  
	
  Outpatient

  	
   

  	
  $30 Copay – No Specific Limit***

  	
   

  	
  80%/20%***

  
	
  Substance Abuse

  	
   

  	
   

  	
   

  	
   

  
	
  Inpatient

  	
   

  	
  $200 then 100%

  No Specific Limit***

  	
   

  	
  80%/20%***

  
	
  Outpatient

  	
   

  	
  $30 Copay – No Specific Limit***

  	
   

  	
  80%/20%***

  
	
  Hospital Emergency Room – Emergency

  	
   

  	
  $50 Copay**

  	
   

  	
  80%/20%

  
	
  Medical Services

  	
   

  	
   

  	
   

  	
   

  
	
  Office Visits

  	
   

  	
  $15 Copay

  	
   

  	
  80%/20%

  
	
  Gynecological Visits

  	
   

  	
  $15 Copay

  	
   

  	
  80%/20%

  
	
  Specialist Visit

  	
   

  	
  $30 No Referral

  	
   

  	
  80%/20%

  
	
  Well Child (Immunizations)

  	
   

  	
  $15 Copay

  	
   

  	
  80%/20%

  
	
  Annual Physical

  	
   

  	
  $15 Copay Plus Plan Pays $150 for Additional Preventative Svcs

  	
   

  	
  80%/20%

  
	
  X-ray & Lab

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Infertility Diagnosis (Diagnosis Only)

  	
   

  	
  $30 Copay

  	
   

  	
  80%/20%

  
	
  Allergy Tests & Treatment

  	
   

  	
  $15 Copay PCP or $30 Copay Specialist

  	
   

  	
  80%/20%

  
	
  Prescription Drug

  	
   

  	
   

  	
   

  	
   

  
	
  Generic

  	
   

  	
  $10 Copay

  	
   

  	
  $10 Copay

  
	
  Brand

  	
   

  	
  $15 Copay

  	
   

  	
  $15 Copay

  
	
  Non-Formulary

  	
   

  	
  $40 Copay

  	
   

  	
  $40 Copay

  
	
  Mail Order

  	
   

  	
  90-day supply, $10, $15, $40

  	
   

  	
  90-day supply, $10, $15, $40

  
	
  Retail

  	
   

  	
  90-day supply, $23, $33, $83

  	
   

  	
  90-day supply, $23, $33, $83

  
	
  Oral Contraceptives

  	
   

  	
  Covered

  	
   

  	
  Covered

  
	
  Vision Care

  	
   

  	
   

  	
   

  	
   

  
	
  Eye Exam

  	
   

  	
  $60 – 12 months no network

  	
   

  	
  $60 – 12 months no network

  
	
  Frames

  	
   

  	
  $50 – 24 months no network

  	
   

  	
  $50 – 24 months no network

  
	
  Lenses

  	
   

  	
  $36 to $70 – 12 months – no network

  	
   

  	
  $36 to $70 – 12 months – no network

  
	
  Contacts

  	
   

  	
  $100 – 24 months – no network

  	
   

  	
  $100 – 24 months – no network

  
	
  Other Services

  	
   

  	
   

  	
   

  	
   

  
	
  Skilled Nursing Facility

  	
   

  	
  100% (100 days/episode)

  	
   

  	
  80%/20%

  
	
  Home Health Care

  	
   

  	
  100% (90 Days Maximum)

  	
   

  	
  80%/20%

  

 

46

 

	
  Ambulance Services

  	
   

  	
  100%

  	
   

  	
  80%/20%

  
	
  Hospice Services

  	
   

  	
  100% (6 Months Maximum)

  	
   

  	
  80%/20% (6 Months Maximum)

  
	
  Durable Medical Equipment

  	
   

  	
  80%/20% to $5,000

  	
   

  	
  80%/20%

  
	
  Chiropractic Services

  	
   

  	
  $20 Copay ($500 Maximum)

  	
   

  	
  80%/20% ($500 Maximum)

  

 

*Medically
necessary

**Waived
if admitted

***Precertified
by Anthem Behavioral Health

 

	
  Weekly Premiums – 

  	
  Year 1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  12.70

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  25.41

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  36.84

  	
   

  
	
   

  	
  Year 2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  19.48

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  38.96

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  56.49

  	
   

  
	
   

  	
  Year 3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  24.63

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  49.28

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  71.45

  	
   

  

 

All employees hired on or after January 30, 2005:

 

	
  Weekly Premiums – 

  	
  Year 1

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  21.17

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  42.35

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  61.41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Year 2

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  24.35

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  48.70

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  70.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Year 3

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Single

  	
   

  	
  $

  	
  28.00

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  56.01

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  81.21

  	
   

  

 

47

 

Dental
(Delta Dental of VA)

 

	
  Deductible

  	
   

  	
  $25/$75

  
	
  Benefit Type:

  	
   

  	
   

  
	
  Preventive ($0 Ded.)

  	
   

  	
  100%*

  
	
  Basic

  	
   

  	
  80%*

  
	
  Major

  	
   

  	
  50%*

  
	
  Orthodontic Benefit ($0 Ded.)

  	
   

  	
  50%*

  
	
  Maximum Benefit per Year

  	
   

  	
  $1,000 per person

  
	
  Orthodontic Lifetime Maximum

  	
   

  	
  $1,500 per person

  

 

*DeltaPreferred
and DeltaPremier dentists will accept Delta Dental’s payment, plus any required
employee coinsurance and any applicable deductible as payment in full. These
dentists will file your claims for you. If you go to a non-network dentist,
payment will be made directly to you unless you assign benefits to the dentist.
Delta Dental will pay the lower of usual, reasonable, and customary as
determined by the Plan of the state in which services are rendered or the fee
the dentist bills for covered services. 
You will be responsible for paying the difference between the non-participating
dentist’s charge and Delta Dental’s payment.

 

	
  Weekly Premiums

  	
   

  	
  Single

  	
   

  	
  $

  	
  1.76

  	
   

  
	
   

  	
   

  	
  Couple

  	
   

  	
  $

  	
  3.01

  	
   

  
	
   

  	
   

  	
  Family

  	
   

  	
  $

  	
  5.15

  	
   

  

 

Hearing aids and the
associated examination will be self-funded at 50/50 to a maximum Company
payment of $2,500 every three (3) years. Eligible dependents are covered.

 

(b)                                 Future pre-65 retirees employed prior to January 30,
2005 will also have Anthem Blue Cross Blue Shield. Premiums will be the same as
for active employees.

 

(c)                                  Employees with life insurance and AD & D
coverage shall have the right, at their option, to increase both coverages
equally through payroll deduction, at their own expense, in $1,000 increments,
at $.44/month per $1000, up to a maximum of $55,000 life insurance coverage and
$55,000 AD & D coverage. Coverage shall be on a monthly basis. Employees
may initiate, increase, or decrease such additional coverages during the first
two (2) weeks of December and may terminate at any time upon thirty
(30) days written notice.

 

(d)                                 The dental program shall not be subject to the
insurance continuation provisions of Section 11 of this Agreement, nor
shall this program be provided for future retirees.

 

(e)           Employees
with dependent life insurance coverage shall have the right, at their option,
to increase the coverage through payroll deduction, at their own expense at the
rates listed below. The additional $10,000 spouse/$4,000 dependent insurance
coverage shall be paid on a monthly basis through payroll deduction.  Employees may initiate, increase, or decrease
such additional coverages during the first two (2) weeks of December and may
terminate at any time upon thirty (30) days written notice.

 

48

 

	
  Age of

  Employee

  	
   

  	
  Cost

  Per Family

  Per Month

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 30

  	
   

  	
  $

  	
  1.50

  	
   

  
	
  Age 30-34

  	
   

  	
  $

  	
  1.60

  	
   

  
	
  Age 35-39

  	
   

  	
  $

  	
  1.90

  	
   

  
	
  Age 40-44

  	
   

  	
  $

  	
  2.60

  	
   

  
	
  Age 45-49

  	
   

  	
  $

  	
  3.80

  	
   

  
	
  Age 50-54

  	
   

  	
  $

  	
  5.60

  	
   

  
	
  Age 55-59

  	
   

  	
  $

  	
  8.40

  	
   

  
	
  Age 60-64

  	
   

  	
  $

  	
  12.20

  	
   

  
	
  Age 65-69

  	
   

  	
  $

  	
  18.70

  	
   

  

 

Cost
of Benefits

 

4.                                       The cost of the benefits under the Program shall
be paid by the Company, except as provided below in this Paragraph 4 and 7
hereof:

 

(a)                                  Any employee on layoff who elects to continue
basic life insurance after the last month of layoff for which such life
insurance is continued without contribution by him will be required to pay $.44
per month (or the applicable group premium rate at the time of the layoff) per
$1,000 of basic life insurance for each month as to which he is eligible in
order to continue such insurance.

 

(b)                                 The amounts required to be paid for benefits
provided under law in excess of basic Program benefits shall be paid entirely
by the Employees.

 

Participation
by Employees

 

5.                                       Each employee shall be a participant in the
Program and the amount, if any, which he shall be required to contribute to the
cost thereof shall be deducted by the Company from his pay. Each Employee shall
furnish to the Company any such written authorization or assignment (in a form
agreed to by the Company and the Union) as shall be necessary to authorize the
deduction from his pay of the amount of any contributions.

 

Changing selection during plan
year is possible only if you have a change in your family situation. This would
include:

 

•                                          The birth or adoption of a child.

•                                          Marriage or divorce.

•                                          Death of your spouse or other dependent.

•                                          Significant change in employee or spousal health
coverage attributable to the spouse’s employment.

•                                          Employee or spousal employment status
change.

 

Other major
changes may be considered, depending on the circumstances.

 

49

 

Requirements
of Law

 

6.                                       It is intended that the provisions for the
insurance benefits which shall be included in the Program shall comply with and
be in substitution for the provisions for similar benefits which are or shall
be made by any applicable law or laws. Where, by agreement, certain basic
benefits under the Program are provided under law rather than under the
Program, the Company will pay the amount required to be paid therefor,
including any employee contribution required by law on account of such
benefits. The Company shall, after consultation with the Union, reduce the
benefits of the Program to the extent that benefits provided under any law
would otherwise duplicate any of the Program benefits.

 

Effective January 30, 2005,
active and retired employees and their dependents, who are 65 years or older
and who are entitled to Medicare, will not be reimbursed for the Part B
monthly premium, if they are paying such premium under the Medicare Program. In
addition, the Company will not reimburse the monthly Part B premium for
disability retirees retiring on or after January 30, 2005 if they are
paying such premium under the Medicare program.

 

Additional
and Alternate Benefits

 

7.                                       The Program shall be in substitution for any and
all insurance benefits or payments to or on behalf of Employees for death,
sickness or accident, hospitalization, medical or surgical service provided by
the Company in whole or in part, except as the Company and the Union have
agreed or may agree in writing.

 

Administration
of the Program

 

8.                                       The Program shall be administered by the Company
or through arrangements provided by it. Except as may otherwise be provided in
this Agreement, the Company will arrange to have the hospitalization and
physicians’ services benefits under the Program provided through contracts with
carriers selected by the Company, which contracts, respectively, shall be
consistent with this Agreement and shall provide benefits in the amounts listed
in Appendix E. Sickness and accident benefits and life insurance shall be
provided by such method and through such carriers, if any, as the Company in
its sole discretion shall determine.

 

All benefits except life
insurance, accidental death and dismemberment and weekly income benefits shall
be paid directly to the provider of the service for which benefits are payable.

 

Administration
of Sickness and Accident Benefits

 

9.                                       The payment of sickness and accident
benefits is an obligation of the Company, but the Agreement with the Union
permits the Company to provide the payment through a policy with an insurance
company. The Company performs important administrative functions in connection
with the handling of claims, including the issuance of benefit checks. In the
typical case, such handling is routine and a claim is paid within two weeks
after it is received by the Company. The Company is authorized to make benefit
payments on claims without prior approval of the insurance company when Company
personnel engaged in claims work determine the claim meets the standards
established by the insurance company for Company approval. If you have a claim
which does not meet these standards it is referred to the insurance company for
decision and you are notified of such action within two weeks after the claim
is received by the Company. In reaching its decision, the insurance company may
take reasonable steps to investigate the medical

 

50

 

and other factual aspects
of the claim.

 

Life
Insurance for Retirees and Employees Age 65

 

10.                                 An employee who shall retire on or after January 30,
2005 under the Company Pension Plan at or after age 62, or who accepts early
retirement between the ages of 57 and 62 with either a reduced pension
immediately or a deferred pension at age 62 under the Company Pension Plan,
will at that time be eligible for continuation of his life insurance in the
amount of $5,000.00.

 

An employee who shall retire on
or after January 30, 2005 under the disability provisions of the Company
Pension Plan at or after age 57 and prior to age 62 will have his life
insurance (in the full amount set forth in Appendix E) continued until age 62
at which time it will be reduced to $5,000.00

 

An employee who shall retire
under the disability provisions of the Company Pension Plan prior to age 57
will receive in equal monthly installments over a five year period the full
face value of his life insurance benefit then in effect. If death occurs before
the full face value has been paid, his beneficiary will be paid the difference
between said full face value and the amount already paid.

 

An employee who shall leave the
Company when eligible for a deferred vested retirement benefit under the
Company Pension Plan is not eligible to have his life insurance continued
either before or after age 65.

 

An employee with Seniority as of
November 1, 1969 and who retired at or after age 62 without having
achieved eligibility for pension benefits under the Company Pension Plan, shall
receive life insurance in the amount of $2,500.00.  Such employees hired after November 1,
1969 who retire without having achieved pension eligibility will not receive
any life insurance at the time of their retirement or termination.

 

At the time an employee in any
of the above categories leaves the employment of the Company, Accidental Death &
Dismemberment coverage will cease.

 

Mail order drug
service will be provided to all future retirees with a $10.00 co-pay.

 

Extension
of Benefits

 

11.                                 If an employee shall be absent from the
service of the Company for a period not to exceed thirty (30) months, due to non-occupational
disability (validated by doctor’s certificate) the insurance program shall be
kept in effect for such employees during such thirty (30) month’s period only.
In cases of absence due to occupational disability, the insurance program shall
be kept in effect for up to five (5) years.

 

In cases of layoff of employees
with less than two (2) years of seniority, the group insurance program
shall cease on the last day worked except that such employee shall have the
conversion privileges provided for in the master insurance policy. In cases of
layoff of employees with two (2) or more years of seniority, sickness and
accident benefit coverage will cease on the last day worked; life insurance,
hospitalization benefits, and surgical benefits shall be kept in effect for two
(2) months after the end of the month in which the employee last worked;
life insurance may be continued thereafter for a period of an additional twelve
(12) months by paying

 

51

 

the required premiums in advance to the Company
in the amount specified in Paragraph 4 (a) above.

 

In cases where an
active employee dies with five (5) but less than ten (10) years of
seniority with dependent coverage in effect at the time of death, the dependent
coverage (hospital, surgical, medical, dental and drug only) will be continued
for the dependents during the month of death and the following six months
assuming continued payment of the monthly premium contribution provided for in
the group insurance program. This extension shall be the month of death and the
twelve following months in the case of an active employee who dies with ten (10) or
more years of seniority and with dependent coverage in effect at the time of
death.

 

Extent
of Company Obligation

 

12.                                 The failure of any carrier to provide for
benefits under the Program shall not result in any liability to the Company,
nor shall such failure be considered a breach by the Company of any of the
obligations which it has undertaken by this or any other agreement with the
Union. In the event of any such failure, the Company and the Union shall
immediately take action to provide substitute coverage in accordance with the
provisions of this Agreement. Differences between claimants and the insurance
carrier or their agents shall not be subject to the grievance procedure
provided in the Basic Agreement. In the event of a disputed claim the Company
will assist in communicating with the insurance carrier to assure compliance
with the Master Insurance Contract.

 

Insurance
Reports

 

13.                                 The Union shall be furnished, upon
request, an annual report regarding the Program. From time to time during the
term of this Agreement, the Union shall be furnished such additional
information as shall be reasonably required for the purpose of enabling it to
be properly informed concerning the operation of the Program. Any accounting
under the Program shall make no distinction between the experience with respect
to Employees and other employees who may be covered, except that experience of
employees who participate in the Program on a different basis or are entitled
to different benefits from those provided for employees represented by the
Union shall be included in such accounting only to the extent that the Company
and the Union agree to such inclusion. The Company will continue the present
arrangements under which it undertakes the keeping of insurance records of
individual employees, the completion of individual employees’ certificates, the
recording of changes in insurance classifications and a major portion of the
investigation and payment of claim. The cost to the Company of performing such
work will not, for any accounting under the Program, be deemed to be a cost of
the Program.

 

Term of Agreement

 

The Insurance Agreement
dated January 30, 2005 shall remain in effect through February 3,
2008. This Agreement shall become effective as of January 30, 2005 and
shall remain in effect until February 3, 2008 in accordance with the Basic
Agreement.

 

52Exhibit 10.4

 

	
  

  	
  

  

 

 

2004 – 2007

Agreement Between

 

Wichita Falls Facility

Warner Electric, LLC

 

&

 

International Association of Machinists & Aerospace

Workers A.F.L. – C.I.O. and Aeronautical Industrial

District Lodge 776

Local Lodge 2771

 

1

 

Table of Contents

 

	
  1.

  	
  Article 1 – Recognition

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Article 5 – Hours of Work &
  Overtime

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Article 6 - Seniority

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Article 7 – Leave of Absence

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Article 8 – Grievance Procedures &
  Arbitration

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Article 9 – Vacation

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Article 10 – Holidays & Paid
  Personal Time Off

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Article 12 – Group Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Article 13 – Wages

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Article 16 – Safety & Health 

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Article 27 – Term of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Addendum B – Job Classifications

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Wage Rate Structure

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Addendum F – Retirement & Savings Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Addendum G – 2nd Shift

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Plant Rules & Regulations

  	
   

  

 

2

 

Agreement

 

This agreement has been made and entered into this 9th day of August,
2004, by and between the Wichita Falls Plant, Warner Electric LLC. Wichita
Falls, Texas, hereafter referred to as the “Company”, and the International
Association of Machinists and Aerospace Workers, AFL-CIO, and Aeronautical
Industrial District Lodge 776, Local Lodge 2771, hereafter referred to as the “Union”.

 

The purpose of this agreement
is to set forth terms and conditions of employment, to prevent interruptions of
work and interference with the efficient operations of the Company’s business,
to secure fair and prompt disposition of grievances, to establish satisfactory
working conditions, hours of work and wages for employees covered by the
agreement, and generally to promote sound labor-management relations.

 

 

NOW THEREFORE,
IT IS AGREED AS FOLLOWS

 

 

Article 1

Recognition

 

1.1 The Company recognizes the International Association of Machinists
and Aerospace Workers, AFL-CIO, and Aeronautical Industrial District Lodge 776,
Local Lodge 2771 as the sole authorized representative for the purpose of
collective bargaining with respect to rates of pay, hours of employment, and
other conditions of employment for all employees generally engaged in the
manufacturing, maintenance, and production at the Wichita Falls Plant, located
at 2800 Fisher Road, Wichita Falls, TX. 76302

 

This agreement does not cover supervisory forces as defined by the laws
of the United States, nor does it include office clerical employees, office
janitors, technical employees, drafters, drafting room employees, a Working
Supervisor on the second shift and one on the third shift as defined in
paragraph 1.3 of this article, and accounting employees or outside service
personnel.

 

1.2 The term employee or employees when used in this agreement shall
refer to those employees within the bargaining unit employed by Wichita Falls
Plant located at 2800 Fisher Road, Wichita Falls, TX. 76302

 

3

 

1.3 The provisions of this agreement shall not prevent supervisors from
performing work when necessary in the performance of their regular duties.  However, except for the second and third
shift-working supervisors, it shall be considered a violation of this agreement
for any supervisor to perform work covered by the agreement, which takes more
than twenty (20) percent of his/her time on any day or any one shift.  Except for the second and third shift working
supervisors, in no event shall the supervisors be permitted to continue for a
period in excess of five (5) consecutive days, except when bargaining unit
people are not available to do the work due to reasons beyond the Company’s
control.

 

There shall be a working supervisor on the second and third shifts
until there are ten (10) bargaining unit people on second shift, and five (5)
bargaining unit people on third shift, at which time they will become full time
supervisors and subject to the limitations above.

 

The second and third shift working supervisors shall be permitted to
perform bargaining unit work, but not to exceed twenty (20) hours per week
excluding the staging of parts and unplanned absences.  Overtime work performed when all qualified
employees on such shift have been offered the overtime assignment shall also be
excluded from the twenty (20) hour limitation.

 

1.4 Non-bargaining unit employees shall have the right to set up
automatic machines in the plant; and may spend a reasonable amount of time in
the introduction of any new technology in the plant; and, in the case of
supervisors, the time consumed in doing this shall not be considered in
arriving at the twenty (20) percent.

 

Article 2

Management Rights

 

All rights of management not specifically limited by the provisions of
other articles of this agreement are retained by the Company, including, but
not limited to, the right to plan, direct, and control all the operations or
services to be performed; to assign and transfer employees; to schedule the
working hours; to hire and promote; to demote; to suspend, discipline or
discharge for just cause; to relieve employees from duty because of lack of
work or for other legitimate reasons; establish, revise and enforce shop rules
and regulations; to introduce new job classifications, methods, materials,
equipment or

 

4

 

facilities; to establish and revise appropriate machine speeds and
feeds and other job specifications; to establish and enforce production
standards; to determine the process of manufacturing and assembling; to decide
and determine all matters affecting designing and engineering; to determine and
control all materials, semi-manufactured and/or finished products which may be
incorporated in the products manufactured; to determine the price at which the
products of the Company may be sold; to determine which products to
manufacture; to determine the location of the work force; and to determine any
other policy or practice which is customarily or usually left to management of
a Company.

 

The Company shall also have the right to establish, maintain, and
enforce reasonable rules and regulations to maintain order and efficiency in
its plants, it being understood and agreed that such rules and regulations
shall not be discriminatory nor inconsistent or in conflict with the provisions
of this Agreement.  The Company shall
furnish the Union with a written copy of all such rules and regulations and all
changes therein.  Except when health and
safety of employees create an emergency requiring sooner effort, changes in
existing rules and regulations, as well as new rules and regulations
promulgated by the Company, shall not become effective until three (3) work
days after copies thereof have been furnished to the Union and posted on the
Company’s bulletin boards.  The Company
reserves the right to add, delete, or amend any rule and regulation at such
time as is necessary to maintain proper Company policies and employee
relations.

 

Article 3

No Strike – No Lockout

 

3.1 No Strike — The Union agrees that during the life of this Agreement
there shall be no work stoppage, shutdown, or strikes of any nature.  The grievance and arbitration procedure shall
be the sole means of settling contract disputes between the employees and/or
the Union and the Company.  Provided
however, that the restriction against strikes and lockout activity as set forth
in this Article shall not apply to the Company or the Union if the other
party refuses to abide by an arbitrator’s lawful award rendered in accordance
with this Agreement.  An employee who
aids, assists, or participates in any interruption of production during the
life of this Agreement shall be subject to immediate dismissal from the employ
of the Company.

 

3.2 No Lockout — The Company agrees not to lockout employees during the
life of this Agreement.  A layoff or
shutdown for business reasons (including taking inventory) shall not be
construed as a lockout.

 

5

 

Article 4

No Discrimination

 

4.1 The Company and the Union recognized their respective
responsibilities concerning Presidential Executive Orders and Federal and State
Legislation regarding Equal Employment Opportunity requirements.

 

4.2 In recognition of the practical and moral values of these
responsibilities, the parties hereby affirm these commitments not to
discriminate because of race, color, religion, national origin, sex, handicap,
age, ancestry, or having been a Vietnam Veteran.

 

4.3 The Company and the Union mutually agree not to discriminate
against any employee because of membership or non-membership in the Union.  The Company recognizes and will not interfere
with the rights of the employee to become a member of the Union and will not
coerce or intimidate such employees from becoming members of the Union.  The Union agrees it will not solicit
employees to become members of the Union on Company time, and it further agrees
it will not in any way seek to coerce or intimidate employees into joining the
Union at any time.

 

4.4 Any reference in this Agreement or other documents executed by the
parties, relating to employees of either sex shall be considered as being
equally applicable to employees of both sexes.

 

Article 5

Hours of Work & Overtime

 

5.1 Nothing in this Agreement is to be construed as an obligation on
the part of the Company to employ any person or persons for any definite period
of time.  The provisions of this article shall
not be construed as a guarantee of any number of hours of work per day or per
week, nor as a limitation upon the Company’s right to schedule more or
less hours per day or week as in it’s judgment the operations of the plant
requires.  Overtime shall not be paid
more than once for the same hours worked and hours for which an overtime
premium is paid shall not be used in computation made for the purpose of
determining whether premiums are to be paid for other hours. There shall be no

 

6

 

pyramiding of overtime premiums.

 

5.2 The normal workweek shall consist of five (5) consecutive workdays,
Monday through Friday.  The normal
workday shall consist of eight (8) consecutive hours excluding a one-half (1/2)
hour unpaid lunch period.

 

5.3 For payroll purposes, the workweek shall be a seven (7) consecutive
day period starting at 12:01 A.M. on Monday. 
For payroll purposes, the workday shall be the twenty-four (24) hour
period beginning at 12:01 A.M. each day. 
All employees covered by this agreement shall be paid weekly and the
Company agrees not to withhold more than one (1) week’s pay.

 

5.4 The Company shall have the right from time to time to adjust the
normal shift starting times by department between 6:00am and 8:00am for the
first shift and between 2:30pm and 4:30pm for the second shift.  When all employees in a department are not
affected by a change in shift hours, the Company will first solicit volunteers.

 

5.5 Scheduled starting and quitting times for employees accepting daily
overtime assignments shall be at the discretion of the Company.

 

5.6 Distribution of Overtime. 
Both parties agree that it is fair to make every reasonable effort to
divide overtime work, so far as practical within each job classification,
department and shift based upon the qualifications of the employee to perform
such work without displacing the employees normally performing that work during
the normal work week. Saturday and Sunday will not be construed as part of the
normal workweek except in the case of mandatory overtime.  An employee wishing to be removed from the
voluntary overtime offer list can request an Overtime Refusal Form from his
Supervisor.  After completing and turning
said form in to his Supervisor, the employee will not be asked for overtime
until such time that employee requests to be asked, in writing, to their Supervisor.  As the employee’s name comes up on the
overtime roster they will be charged as refused overtime.

 

The Company shall require each supervisor to keep a record of each
employee working under his direction who is offered overtime and does not work
the overtime offered.  The Company shall
maintain overtime records by department, classification and shift.  As an individual’s name comes up on the
overtime tally, he will be charged such overtime, whether or not he accepts the
assignment.  Employees absent from work
and receiving pay from the Company will not be charged for overtime hours.  Sickness, Accident and

 

7

 

Workers Compensation excluded. 
Employees can only be charged overtime hours for the number of hours
offered to them.  The shop committee
shall at all reasonable times have access to overtime records, and will be
given a copy upon request.  Hires,
rehires, or employees who change job classifications or shifts shall be
assigned the average hours charged to the employee already in the
classification, department, and shift. 
It is understood that beginning with the effective date of this
agreement and each contract anniversary thereafter, all overtime records will be
reset to zero.

 

Every effort will be made to make overtime assignments outside of
departments to qualified employees lowest on the overtime tally, but only after
department and shift requirements have been met.  Overtime worked in other job classifications,
departments, or shifts shall be charged to the employee on the overtime record.

 

5.7 It is agreed that in the event of change in the starting or ending
time of a shift, the Company will notify the affected employees in such
department during the preceding shift of such change.  When the Company changes the scheduled report
time for the beginning of a shift and the first day of the work week results in
the starting time of the new week overlapping into the last day of the previous
work week nothing in this article is to be construed to require the
Company to pay overtime because of this overlap.  Provided further however, if at the start of
a new work day at 12:01 A.M. and an employee is already working, and at that
time is being paid an overtime rate by reason that he had worked in excess of eight
(8) hours or ten (10) hours during the work day immediately preceding, he shall
continue to receive the appropriate overtime rate and not have pay reduced
because of the advent of the new work day. For pay purposes a new work day will
be established only after the employee leaves the premises.  When a department or part of a department is
scheduled to work on Saturday the employees involved will be notified, in all
cases possible, before the end of the shift on Thursday.  Thereafter changes necessary will be made as
soon as practical.  Employees will not be
charged for any weekend overtime hours refused if the hours were offered after
the end of their shift on Thursday. Employees may refuse daily and Saturday
overtime, provided however that in the event no qualified employee(s) accepts
such overtime work, qualified employees in that job classification, department,
and shift affected having the least overtime charged shall work the assigned
overtime.  As an option, qualified
employees as determined by the Company in other classifications and on the same
shift may be assigned the overtime assignment. 
Employees may refuse overtime on Holidays and on Sunday.

 

Employees failing to work accepted weekend overtime hours will be
subject to Plant Rule # 43.

 

To provide opportunity for others to work in the place of employees who
may not desire to do so, an employee when contacted about working overtime
shall give a “Yes” or “No”

 

8

 

answer within thirty (30) minutes.  Employees will not be charged for any overtime
hours refused if the hours were offered within the final one half hour of their
shift.

 

5.8 Overtime Premium (1 1/2) Overtime Premiums of time and one-half (1
1/2) of the straight time hourly rate shall be paid as follows:

 

A.           For all hours worked in
excess of eight (8) hours in any one (1) workday.

 

B.             For all hours worked
in excess of forty (40) hours in anyone (1) workweek.

 

C.             For all hours worked
by an employee on Saturday in any workweek.

 

5.9 Double-time Premium (2) Overtime premiums of two (2) times the
straight time hourly rate shall be paid as follows:

 

A.           For all hours worked
by an employee on Sunday in any workweek.

 

B.             For all hours worked
in excess of ten (10) hours in any one (1) workday.

 

C.             For all hours worked
on days defined as Holidays under this Agreement, except when such hours are
part of a shift commencing on the one day and carrying over into the Holiday.

 

Article 6

Seniority

 

6.1 The term “seniority” as used in this contract is hereby defined as
the length of an employee’s continuous service with the Company dating from his
last date of hire. When two (2) or more employees have the same seniority date,
this seniority shall be determined by a toss of a coin.  The Chairman of the Grievance Committee shall
be given an updated plant-wide seniority list of employees upon request at
least every six months.

 

6.2 Probationary Period.  A new
employee, including an employee who is rehired after a break in continuity of
service with the Company, shall be regarded as a probationary employee until he
has completed two (2) months of service with the Company following the day of
his last date of hire.  During the
probationary period an employee may be

 

9

 

discharged for any cause whatsoever and shall have no recourse or right
to grieve against such discharge.  Upon
successful completion of the probationary period, the employee shall have
seniority status and will be considered a seniority employee.

 

6.3 Loss of Seniority.  The
seniority status and continuous service of an employee shall be terminated for
any of the following reasons:

 

A.           Resigns, quits, or
retires.

 

B.             Discharged for just
cause.

 

C.             Absent due to layoff
for a period not to exceed the length of service at the time of layoff, or two
(2) years, whichever is less.

 

D.            Fails to respond to a
recall from layoff within seventy-two (72) hours (excluding Saturdays, Sundays,
and Holidays) following the date of receipt of notice of recall.  Notice by the Company shall be sufficient if
given by certified mail, return receipt requested, and sent to the employee’s
last known address.  Recalled employees
who intend to return to work must contact the Plant Manager / Human Resources
Representative or their Designee within a three (3) day period to make his
intentions known to the Company.  Such
employee may have five (5) additional days if he has been reemployed and the
employer requires a quit notice. Evidence of the need for this five (5) day
extension may be required. Such employees who fail to report by the end of the
time period will be removed from the seniority roster.

 

E.              Absence due to
sickness or injury including on the job injuries as follows:

 

	
  Seniority
  at Time of Illness or Injury

  	
   

  	
  Time Limit

  
	
  Less than six (6) months

  	
   

  	
  Three (3) months

  
	
  Six (6) months but less than one(1) year

  	
   

  	
  Six (6) months

  
	
  One (1) year but less than two (2) years

  	
   

  	
  Twelve (12) months

  
	
  Two (2) years or more

  	
   

  	
  Twenty Four (24) months

  

 

F.              Fails to report to
work following the conclusion of an approved leave of absence or vacation.

 

G.             Fails to report or
contact the Plant Manager / Human Resources Representative or

 

10

 

their Designee within one (1) workday after
having been released from the doctor, provided however a reasonable amount of
time for reporting to work will be given if unusual circumstances exist and the
employee has contacted the Plant Manager / Human Resources Representative or
their Designee.

 

6.4 Departments as currently constituted are:

 

07 Assembly

30 Mesur-Fil Cell

44 Machine Shop

54 Maintenance

81 Shipping/Receiving/Warehouse

00 Helper

 

6.5 In all cases of promotion, permanent transfer, layoffs, and recalls
of employees who have been laid off because of lack of work, the following
factors shall be considered:

 

A.           Seniority

 

B.             Ability and
qualifications to perform the work skillfully and efficiently.

 

When factor B. is relatively equal, seniority shall govern.

 

6.6 Bidding.  When the Company
establishes a new job and/or determines that a permanent vacancy exists in a
job classification other than Group Leader, Journeyman or Helper, the resulting
job vacancy will be filled in accordance with the following section:

 

A.           When a permanent job
vacancy exists, notice of such jobs will be posted on the main bulletin boards
for three (3) working days (72 hours) not including Saturdays, Sundays and
Holidays.  The posting will set forth the
date posted, time posted, job title, number of openings, shift, and the rate
range for the job.

 

B.             During the three (3)
days that a job is posted, eligible bidders must contact the Human Resources
Department to have their name placed into consideration for the jobs. Employees
who are on vacation may contact the Human Resources Department prior to leaving
on vacation and file a written advanced bid. 
The advanced bid will only be good for the specific job classification
that the employee indicated on his advanced bid.

 

11

 

Eligible bidders are employees who have completed their probationary
period prior to the posting of the job and who have not been a successful
bidder for the last six (6) months.

 

6.7 Job Bidding Award.  Each job
will be awarded in accordance with seniority and ability and qualification to
perform the job skillfully and efficiently as described earlier in this
article, however, in the following sequence:

 

A.           First preference for a
vacancy shall be given to the eligible bidder within the same classification
and department regardless of shift.

 

B.             Second preference for
a vacancy shall be given to the eligible bidder within the same department but
in a different classification, and or shift.

 

C.             Third preference for
a vacancy shall be given to the eligible bidder from any other department, classification,
and or shift.

 

When qualifications are equal seniority shall
govern.

 

No employee shall be awarded any job unless the minimum job
requirements have been met.

 

Minimum requirements are basically defined as education and/or
experience sufficient to learn and perform the defined duties of the specific
classification.  The purpose is to teach
the skills of the job and not the basics necessary to understand them.

 

A time limit for announcing a job award after closing the bids will be
fourteen (14) calendar days; but should extenuating circumstances arise,
vacations, shift differences, etc. and should this be required, the Chairman of
the Shop Committee will be notified.

 

Journeyman positions are not posted, but any employee wishing to
request a Journeyman Classification will be required to submit a Journeyman
Request Form to their supervisor.  After
having received said form, the supervisor will give an answer in writing, of
approved, denied, or show proficiency, to the requester.  The answer shall be given within fourteen
(14) calendar days or the request will be considered approved.

 

A time of up to sixty (60) calendar days will be given to arrange for
the testing of any discrepancies (Special arrangements may be mutually agreed
upon by the Company and the Union to allow for showing of proficiencies by
employees.)  After being approved for the
Journeyman Classification an employee will have a sixty (60) day trial period
for this classification.  If an employee
fails to perform skillfully and efficiently they will be moved back to their
prior classification.

 

12

 

Only one request may be submitted in any six (6) month period.  Requests for the training to achieve this
classification will be accepted, but will be provided as workloads permit or by
special arrangements agreed upon by the Company and the Union.

 

Helper positions are not
posted when an opening is deemed by the Company to exist.  Should an employee desire a helper job, the
employee should make a request in writing to the Plant Manager / Human
Resources Representative or their Designee for consideration.

 

In the event that the Company is unable to fill the vacancy pursuant to
the provisions of the bidding procedure, the Company may fill the vacancy by
offering it to other employees or by hiring a new employee.  A vacancy that remains unfilled for three (3)
months shall be considered cancelled. 
However, should an applicant be offered a job prior to the expiration
date but report to work after, it shall not be deemed a violation of the
agreement.  Also vacancies that are being
held awaiting trainees to finish school are not subject to this provision.

 

Employees that are awarded jobs and are unable to perform them
skillfully and efficiently shall be removed from the job classification.  They will be placed in their previous job
classification if placement is made within two (2) months of the job
award.  This shall not apply for any
reasons except where employees are unable to perform skillfully and efficiently.  Provided further however, both parties agree
that employees are required to continually perform skillfully and efficiently
in their job classification.

 

An employee who has been awarded a job will be moved into the job on a
Monday following the award as soon as it is practical for the Company to do
so.  If it is not practical for the
Company to transfer the employee to the awarded job within fourteen (14)
working days after it has been awarded, the employee will be officially
transferred with a rate adjustment if appropriate and then temporarily loaned
to his old job until he can be replaced.

 

When an employee is awarded a job from one job classification to
another job classification he shall take all of his seniority to the new job
classification.

 

6.8 Layoff.  In the event of a
reduction in the working force of a job classification, employees working
within the job classification, department, and shift affected shall be
displaced in reverse order of seniority.

 

A.           Employees displaced in
accordance with this section may elect to be laid off, or in the
alternative, shall bump other least senior employees as follows:

 

13

 

1.               The displaced
employee shall bump the least senior employee working in the same job
classification and department on another shift. 
If there is no one to bump, then,

 

2.               He shall bump the
least senior employee regardless of shift in an equal rated job classification
in any department provided he has successfully held such job with the Company
for a period of not less than three (3) months (the classification of the
employee to be bumped).  A ten (10)
working day trial period will not be required if the classification had been
held as stated. If not successful above, the displaced employee shall be given
an opportunity to bump a less senior employee in any department or
classification in which they have the ability to perform the minimum duties of
that job.  If there is a dispute as to
employee’s ability to perform the job, it will be resolved by the Plant Manager
/ Human Resources Representative, Committee Chairman and employee prior to the
bump. If the bump is allowed, a ten (10) working day trial period will be given
and if the employee fails to demonstrate to the Company the ability to perform
the job they shall then relinquish all rights to any other bumping option other
than a less senior employee in the helper classification.

 

B.             In no event will an
employee be allowed to bump upward.

 

C.             The Company shall
give at least seven (7) calendar days notice to employees that are to be laid
off, provided however that this applies only to the original employee(s) and
not to employees that may be bumped as a result of the announced layoff.  The Union will be given a list of the
original employees to be laid off and also a list of successive laid off
employees.

 

D.            Employees who leave
the Company area after being told of the layoff without making their bumping
plans known to their supervisor or the Plant Manager / Human Resources
Representative will be considered to have elected to be placed on layoff and
that they will not exercise bumping.

 

E.              When an employee
terminates for any reason, or when an employee requests tools to be removed
from Company premises, that portion of the tools that are being purchased on a
payroll deduction basis by the employee will be released only to the extent
that the tools have been paid for by the person.  If only a portion of the tools have been paid
for at layoff or termination, only that portion of the tools may be removed
from the Company premises.

 

14

 

6.9 Recall.  An employee who is
laid off from his/her original job due to a reduction in force will be placed
on a list for recall maintained by job classification and department in
seniority order for a period not to exceed the length of service at the time of
layoff, or two (2) years, whichever is less. Benefits will be reinstated the
first (1st) of the month after recall.

 

In the event that a job within a classification, department, and shift
needs to be filled after a reduction in force, the senior eligible employee as
defined in Article 6.8 “Layoff”, section A, paragraph 2, will be
recalled first.

 

If an employee who has bumped to another job is a successful bidder, he
loses all rights to his original job before the layoff.

 

An employee may not elect to remain on a job that was gained by bumping
if he is recalled to his original job unless there is no one to be recalled,
and he would not be blocking the return of a laid off employee.

 

At the time of the notice of layoff, if an individual elects not to
bump, but accepts layoff instead, he shall have the right to return to his last
level job or any higher rated job he previously held when recall occurs.  He shall have no other recall rights.

 

6.10 Five Day Transfers.  The
parties recognize that from time to time disruptions caused by but not limited
to the following: Absenteeism, vacations, shortages of materials, critical
customer order, meeting delivery dates may necessitate the transfer of
employees from their regular jobs to other jobs, on a temporary basis. First,
qualified volunteers (as determined by the Department Manager) will be accepted
by the Company and if additional employees are needed, then the employees will
be selected with due regard to their seniority status. The parties recognize
that seniority is a factor for consideration when a temporary transfer is to be
made; however, the parties also recognize that from a practical point of view
because of numerous such transfers necessary for efficient operation, seniority
may not always be accommodated.

 

The five (5) day limitation shall not apply to a temporarily
transferred employee who has replaced an employee who is absent or on light
duty until the replaced employee returns to full duty. This period of time also
does not apply when employees temporarily fill jobs that the Company is in the
process of filling permanently by job posting or recall from layoff.

 

Helper classified employees can be temporarily transferred where there
is no working employee present. Qualified transferred helpers (as determined by
the Department Manager) will receive payment equal to the minimum rate of the
classification of the

 

15

 

employee normally performing the work. Unqualified transferred helpers
(as determined by the Department Manager) will be considered as “in training”
and receive payment equal to the minimum rate of the lowest classification in
that department. Once the transferred helper becomes qualified (as determined
by the Department Manager) payment will be equal to the minimum rate of the
classification of the employee being assisted or normally performing the work.

 

Employees temporarily transferred to other jobs will continue to
receive their regular rate of pay or the minimum of the rate range, to which
they are transferred, whichever is higher. In no event will the employee’s rate
of pay be lowered while temporarily transferred.

 

6.11   Extended Transfers.

 

Employees may be temporarily transferred for
a maximum of thirty (30) calendar days to any shift in order to complete
special projects or start a new shift.

Employees may also be transferred, on a voluntary basis, to other
departments for a period of not more than sixty (60) calendar days. In cases of
equal qualifications, seniority will apply.

 

Employees temporarily transferred to other jobs will continue to
receive their regular rate of pay or the minimum of the rate range, to which
they are transferred, whichever is higher. In no event will the employee’s rate
of pay be lowered while being extendedly transferred.

 

In all cases, the Union will be notified in advance of all such
transfers.

 

6.12 Temporary Employees - The Company may hire one (1) temporary employee
at a time to replace employees on vacation or medical leave of absence. The
temporary employee could work only three (3) months each calendar year.  The temporary employee would be paid the
minimum rate of the classification of the employee they are replacing. The
temporary employee shall not be eligible for any benefits provided in this
agreement with the exception of scheduled holidays during their employment at
the Company.  Any exceptions to the above
will be made by mutual agreement of the parties.

 

16

 

Article 7

Leave of Absence

 

7.1 Any employee covered by
this agreement desiring a leave of absence on account of ill health, personal
business or for any other good cause upon making application to the Plant
Manager / Human Resources Representative or their Designee may be granted a
leave of absence up to thirty (30) days and the Company may extend such leave
upon request of the employee for good cause. Should any employee on leave of
absence engage in any other employment he shall be terminated. A copy of all
approved leaves of absence will be given to the Chairman of the Grievance
Committee.

 

7.2 Local Union Business.  For
the purpose of attending conventions, conferences, meetings, and other usual
and proper functions of the Union, a leave of absence without pay not to exceed
two (2) weeks, unless otherwise agreed to by the parties, shall be granted to
Union members provided written request is made to the Plant Manager / Human
Resources Representative or their Designee as far in advance as possible and
not more than one employee from a single department is gone at the same time.

 

7.3 Employees who are appointed to non-bargaining unit jobs with the
Company after August 14, 1983, and who the Company thereafter decides to
reassign to the bargaining unit must be reassigned within one (1) year from the
date of appointment to the non-bargaining unit position.  Such a non-bargaining unit employee who does
not return to the bargaining unit on or before the end of one (1) year will be
credited only with the seniority accumulated prior to leaving the bargaining
unit.

 

7.4 The Company and the Union agree to adhere to applicable Federal
laws governing leaves of absence for employees on military service.

 

7.5                                 Employees
with at least five (5) years of service who are selected or appointed to a
full-time office of the Union shall, upon advance written notice, be granted a
leave of absence not to exceed one (1) year. 
Such leave may be renewed provided a written request for the extension
is submitted to the Company within thirty (30) days prior to the completion of
each year of leave.  Such employee will
continue to accumulate only his seniority while on such leave and any economic
benefits will not continue nor accrue during said absence.  Not more than one employee shall be granted
such leave of absence at a time.

 

17

 

Article 8

Grievance Procedures &
Arbitration

 

8.1 Method of Adjusting Grievances. 
For the purpose of this Agreement, a grievance is defined as any dispute
or difference of opinion between the Company and the Union or between the
Company and any employee covered by this Agreement involving the meaning,
interpretation, or application of the provisions of this Agreement. When an
employee is suspended without pay, he must be discharged or reinstated by
written notice to the employee and the Union within three (3) workdays after
the first day of the suspension.  All
grievances (except discharge cases which shall start at Step 2) shall be
handled in the following manner:

 

Step 1 - Any employee who believes he has a
grievance shall first present it verbally to his immediate supervisor / manager
accompanied by his Committeeman if the employee so desires. If the grievance is
not settled satisfactorily and the Union desires to further process the
grievance, the grievance shall be reduced to writing by the Committeeman and
the written grievance shall state the facts upon which it is based, when they
occurred, and the specific section of this Agreement which has allegedly
been violated.  Such document must be
signed by the employee who filed the grievance (other than the Committeeman)
and must be presented to the aggrieved employee’s immediate supervisor /
manager, by the Committeeman in person, not mailed, within five (5) working
days following the initial contact with the supervisor / manager.  The immediate supervisor / manager shall
respond in writing within five (5) working days to the grievance and shall
furnish a copy of such response to the Committeeman in person, not mailed.

 

Step 2 - If the grievance is not settled in
Step 1, and the Union desires to further appeal, a committeeman shall appeal in
writing and give the grievance in person, not mailed, to the Department Manager
within three (3) working days after the answer in Step 1 has been given.  A meeting between the Department Manager and
the Committeeman shall be held at a mutually agreeable time. The Department
Manager shall give the Company’s written answer on the grievance to the
Committeeman in person, not mailed, within three (3) working days following the
meeting.

 

Step 3 - If the grievance is not settled in
Step 2 and the Union desires to further appeal, the Chairman of the Grievance
Committee shall appeal in writing and give the grievance to the Plant Manager /
Human Resources Representative or

 

18

 

their Designee in person, not mailed, within
three (3) working days after the answer in Step 2 has been given.

 

The Plant Manager / Human Resources
Representative or their Designee shall contact the International Representative
and a meeting to discuss the grievance shall be held at a mutually agreeable
time.  Within five (5) working days
following the meeting the Plant Manager / Human Resources Representative or
their Designee in person, not mailed, shall give the Company’s final written
answer to the Chairman of the Grievance Committee.

 

If the grievance is not settled in Step 3
above and the Union desires to appeal the grievance to arbitration, the
International Representative of the Union shall give written notice of the
Union’s desire to arbitrate to the Plant Manager / Human Resources
Representative or their Designee within five (5) working days of the date of
the Company’s final answer in Step 3 above.

 

Such written notice shall identify the
specific grievance appealed to arbitration and the specific section or
sections of this Agreement allegedly violated. 
If the Company and the Union cannot agree to an arbitrator, the parties
shall send a joint letter to the Federal Mediation and Conciliation Service
requesting said agency to submit a list of five (5) arbitrators, specifying
that such arbitrators be members of the National Academy of Arbitrators.  Upon receipt of such list, the Union and the
Company shall strike two names there from and the arbitrator whose name is not
struck shall be deemed selected and a joint letter of selection shall be sent
to that arbitrator.  The party that
strikes first will be determined by the Union’s Business Representative and the
Company’s Representative In either case, the joint letter of selection shall
identify the specific issue involved in the grievance and shall request that
the arbitrator select a date for hearing subject to availability of Company and
Union representatives.

 

The arbitrator shall only have the power and
authority to interpret and apply the provision of this Agreement to the
grievance presented and his decision shall apply only to the specific issue
identified in writing to him.  The
arbitrator shall have no authority to alter, amend, modify, nullify, ignore, or
add to the provisions of this Agreement. 
Copies of all arbitration awards shall be given to the Company and the
Union.  The award of the arbitrator shall
be final and binding upon the Company, the Union and the employee or employees
involved.  The expenses of arbitration
shall be shared equally by the Company and the Union.  Other expenses incurred such as preparation
of briefs and data to be presented to the arbitrator and furnishing of
witnesses other than employees shall be borne separately by the respective
parties.

 

19

 

8.2 Time Limits.  No grievance
shall be entertained or processed unless it is submitted to the Company, in
writing within five (5) working days of the event giving arise to the
grievance.  Any grievance not appealed
within the time limits set forth in each step of the grievance procedure shall
be considered settled on the basis of the last answer given by the
Company.  Any grievance not entertained
or processed by the Company within the time limits set forth in each step of
the grievance procedure shall be considered settled on the basis of the last action
requested by the Union within the confines of the current agreement.  Either party may request of the other party a
reasonable extension of the time limits as outlined in this section.

 

8.3 Grievance Investigation and Presentation. The Union shall furnish
to the Company a certified list of elected officers and Committeemen.  The Committeemen shall consist of not more
than two (2) employees from the plant on the day shift.

 

One Committeeman may be named by the Union for other shifts when at
least 8 bargaining unit people are employed on such shift.  One of the above day shift Committeemen will
be named by the Union as Chairman of the Grievance Committee.  The Chairman of the Grievance committee shall
be permitted to attend the second step of the grievance hearing if deemed
necessary by them and a request is made in advance by the Chairman of the
Grievance Committee to the Plant Manager / Human Resources Representative or
their Designee.

 

It is the intent and desire
of the Company and the Union that the investigation and discussion of
grievances will be conducted in accordance with the grievance procedure set
forth in this article and in a manner which minimizes lost time and
interference with production. 
Committeemen shall not engage in solicitation of grievances and shall
not leave their workstations without receiving permission from their immediate
supervisors.  Upon entering another
department, they shall inform the supervisor of such department of the nature
of their business.  The Union agrees that
the Company has the right to expect that supervisors will know the whereabouts
of their employees throughout the day. 
Accordingly, employees and Committeemen must notify the supervisor prior
to leaving their department or stopping work to discuss grievances.  Permission to leave or stop working will not
be unnecessarily withheld.  But, critical
production requirements may necessitate the rescheduling of discussion
concerning grievances which do not demand immediate attention.

 

8.4 The Union will be provided with a copy of any disciplinary action issued
to a bargaining unit employee within the shift that it was issued, or as soon
thereafter as possible.

 

20

 

8.5  Notwithstanding, anything
herein or in the general body of labor law to the contrary, it is understood
and agreed that any disciplinary action by the Company after the date hereof
shall not be affected by the past practices of the Company or by any alleged
prior inconsistent application of the Company’s rules, if prior to the date
hereof.

 

8.6 In the event that the
Company should discharge or suspend an employee during the time of this
Agreement, and it is thereafter determined by agreement of the parties or in
arbitration that such employee is entitled to compensation for the period of
time (or any part thereof) after such action by the Company, then, in such
case, the compensation due to such employee shall be reduced by the total of
all accrued compensation earned and/or unemployment compensation received.

 

8.7 The Company agrees to continue the monthly meeting with the first
shift Committeemen and the Plant Manager / Human Resources Representative or
their Designee on the second Tuesday of each month.  The date may be changed for each monthly
meeting by mutual agreement between the Company and the Union.

 

8.8 All grievances including
arbitration shall be handled during regular working hours without loss of time
to the Committeeman or directly involved employees.

 

Article 9

Vacation

 

9.1 Each employee with one (1) year and less than eight (8) years of
continuous service as of January 1 shall be eligible for two (2) weeks
vacation.  Employees with less than one
(1) year of continuous service each January 1 shall be eligible for two
(2) weeks vacation after their anniversary date.  Each employee with eight (8) years and less
than fifteen (15) years of continuous service as of January 1 shall be
eligible for three (3) weeks vacation. 
Each employee with fifteen (15) years and over of continuous service as
of January 1 shall be eligible for four (4) weeks vacation.  An employee who during the year after January 1
reaches eight (8) years shall be eligible for the third week on January 1
of that same year.  An employee who
during the year after January 1 reaches fifteen (15) years shall be
eligible for the fourth week on January 1 of that same year.  Employees shall schedule their vacation
during the calendar year at the time that they are eligible and at a time that
the Company approves.

 

21

 

9.2 An employee who is eligible for vacation benefits shall be paid
their benefits if they leave the Company for any reason whatsoever except quit
with no notice, and provided he has not already received his vacation pay.  Employees that have received a portion of
their vacation during the calendar year shall be entitled to the
remainder.  Employees that voluntarily
quit must give the Company at least one (1) weeks notice to be eligible to
receive vacation pay.

 

9.3 Vacation pay will be computed on the basis of two (2) percent of
the employee’s previous calendar year’s W-2 wages or 40 hours of straight time
pay, whichever is higher, for each week of vacation eligibility.  Work credit shall not be given for any type
of absences including worker compensation.

 

	
  Length
  of Vacation

  	
   

  	
  Vacation Pay

  
	
  1 Week

  	
   

  	
  2% or 40
  Hours whichever is greater

  
	
  2 Weeks

  	
   

  	
  4% or 80
  Hours whichever is greater

  
	
  3 Weeks

  	
   

  	
  6% or 120
  Hours whichever is greater

  
	
  4 Weeks

  	
   

  	
  8% or 160
  Hours whichever is greater

  

 

Vacation pay for an employee’s first vacation after completing one (1)
year of continuous service shall be computed on the basis of the employee’s
earnings, described above, received during the one (1) year period immediately
preceding his anniversary date.  Vacation
pay for subsequent vacation shall be computed on the basis of the employee’s
earnings received during the calendar year preceding the year in which the
employee becomes eligible for vacation.

 

9.4 Vacation Eligibility Period shall mean the calendar year January 1
to December 31st; provided however, that the vacation eligibility period
for a new employee’s first vacation will be the twelve (12) consecutive months
immediately preceding his anniversary date. 
(Example - a new employee is hired March 14, he is eligible for the
first vacation March 15 of the following year.)

 

9.5                                Vacation time may be
scheduled by the employee at any time during the calendar year after becoming
eligible and at a time that the Company approves.  The Company

 

22

 

shall consider the seniority and the job
classification of employees when making vacation scheduling decisions.  The Company will solicit vacation preference
from each employee on or before February 1st of each year.  Should an employee elect not to schedule his
vacation when contacted by the Company, his vacation must be scheduled by his
supervisor. After all employees have received their full week first choices,
employees electing to split their vacations may then choose from the remaining
vacation times.

 

9.6 After the master vacation schedule has been turned in to the
Human Resources Department, a change may still be made by the employee by the
following procedure:

 

A. 
Employee obtains “Request for Vacation Change Form”.

 

B. 
Employee obtains written approval from his supervisor by using form.

 

C. 
Employee sends approval form to Human Resources Department.

 

9.7 Employees that change job classification and/or shifts shall have
their vacation schedule changed to accommodate the workload and to work
around employees who already have their vacation scheduled if necessary without
regard to seniority.

 

9.8 Vacations may be scheduled in 1, 2, 3 or 4 day increments when
approved in advance by the Company.  This
will be permitted only after all full week vacation requests which are
submitted between January 1st and February 1st each year are
considered according to Art. 9.5. 
Payment for such day(s) will be pro-rated and paid on the following
payday.

 

Otherwise, vacations must be scheduled in one (1) week blocks (five work
days) with a Monday week starting date. Employees shall not be required to work
Saturday or Sunday during their vacation week nor the Saturday or Sunday of the
preceding week, however they shall be charged overtime as though worked.

 

9.9 Employees shall not schedule their vacation at the end of one
calendar year and at the beginning of the next calendar year so as to take a
vacation from two years together.

 

9.10 Employees may elect to receive vacation pay in lieu of time off
for one (1) week of eligible vacation time. 
This applies to full week vacations only.  However all other eligible vacation time must
be taken during the calendar year or employees will lose their

 

23

 

vacation benefit. The Company may also allow, at its discretion, pay in
lieu of up to a maximum of 3 weeks.

 

9.11 Employees who elect to receive one (1) week of vacation pay
instead of time off must notify the Company of such request, and payment will
be made on payday of the following week. 
Pay for the one (1), two (2), three (3) or four (4) day vacations shall
be given to employees as described in 9.8. 
All other vacation pay shall be given to employees on their last payday
before leaving on vacation provided the Human Resources Department is notified in writing at least seven (7) days
prior to the first day of vacation. 
Should an employee decide, on his very first vacation, to schedule it
immediately after completing one (1) year of continuous service, his check will
not be given to him until the third payday after his anniversary date.  Also, pay for subsequent vacation, if
scheduled during the first or second week of the calendar year, will be
received by the employee the third payday of January.

 

9.12 Any Holiday (as defined in Art. 10.1) occurring during an employee’s
vacation shall be recognized on the workday immediately following the employees
vacation, or payment (as defined in Art. 10.2) may be received in lieu of time
off, if the employees’ supervisor is notified by the last work day preceding
the vacation.

 

9.13 If an employee dies while on the payroll of the Company, vacation
pay as provided in this Article shall be paid to their legal heir or
estate.

 

24

 

Article 10

Holidays & Paid Personal Time
Off

 

10.1 Holidays Observed.  During
the term of this Agreement, the following days shall be considered Holidays:

 

	
  Good Friday

  	
   

  	
  Friday after Thanksgiving

  
	
  Memorial Day

  	
   

  	
  Christmas Eve

  
	
  Fourth of July

  	
   

  	
  Christmas Day

  
	
  Labor Day

  	
   

  	
  New Year’s Day

  
	
  Thanksgiving

  	
   

  	
  Paid Personal Time Off (PPTO) (2 Days)

  

 

10.2                           Holiday
and Eligibility.  Employees, not on
layoff or leave of absence when a Holiday occurs, shall receive Holiday Pay
equal to eight (8) times their regular straight time hourly rate including any
applicable shift and or group leader premiums for all Holidays (as defined in
Art. 10.1).  Employees must work all
scheduled hours on their last scheduled workday prior to the Holiday, or on
their next scheduled workday following their Holiday unless the absence is due
to sickness or injury supported by proper evidence, or any other leave for
which the employee is receiving pay under appropriate provisions of this
agreement.

 

10.3 Weekend Holidays.  Holidays,
excluding the floater, falling on Sunday shall be observed on the following
Monday.  Holidays falling on Saturday
shall be observed on the preceding Friday. 
If two consecutive Holidays fall on Friday and Saturday, the Holidays
will be observed on Thursday and Friday. 
If two consecutive Holidays fall on Sunday and Monday, the Holidays will
be observed on Monday and Tuesday.

 

10.4 Holidays and Overtime. 
Employees who receive Holiday pay for unworked Holidays pursuant to this
Article shall be regarded as having worked eight (8) hours on Holiday for the
purpose of computing premium for subsequent hours worked during the same
workweek.

 

10.5 Employees are eligible for all Holidays immediately on employment
with the Company, with the exception of new hires, who will be eligible for
only one PPTO day during their first six months of employment.

 

25

 

10.6 The paid personal time off (PPTO) may be
taken by the employee at any time during the calendar year by providing at
least thirty (30) minutes notice prior to the beginning of the employees shift.

 

Employees may elect to receive pay in-lieu-of
PPTO.  If an employee elects this option,
the pay in-lieu-of PPTO will be paid in the following weeks pay period. PPTO
may be scheduled in four (4) or eight (8) hour increments.

 

Article 11

Pension Plan

 

Commencing with the effective date of this Agreement, and continuing
until the expiration date herein provided, the Company agrees to provide the
defined benefit pension plan for eligible employees as described in addendum A “Pension
Plan for Wichita Clutch Employees of the International Association of
Machinists and Aerospace Workers, AFL-CIO, and Aeronautical Industrial District
Lodge 776, Local Lodge 2771”.  The
parties also agree to amend the Pension Plan as required by the Tax Reform Act
of 1986 and any other statutory requirements or agreed to changes.

 

Article 12

Group Insurance

 

12.1 The following insurance program is provided for employees only:

 

A.           Life Insurance:

 

	
  Effective

  	
   

  	
  Benefit Amount

  	
   

  
	
  October 1, 2004

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  October 1, 2005

  	
   

  	
  $

  	
  40,000

  	
   

  
	
  October 1, 2006

  	
   

  	
  $

  	
  45,000

  	
   

  

 

26

 

B.             Accidental Death and
dismemberment:

 

	
  Effective

  	
   

  	
  Benefit Amount

  	
   

  
	
  October 1, 2004

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  October 1, 2005

  	
   

  	
  $

  	
  40,000

  	
   

  
	
  October 1, 2006

  	
   

  	
  $

  	
  45,000

  	
   

  

 

C.             Weekly Sickness and
Accident (non-occupational) - $300.00 per week for 16 weeks (3-day waiting
period) for sickness unless hospitalized; first day payment for off-the-job
accident) for all labor grades.

 

12.2 For Employees and Dependents:

 

The Colfax Group Health / Vision PPO through Anthem Blue Cross Blue
Shield, and the Colfax Delta Dental program will be effective October 4,
2004.  The details of the entire program
of insurance benefits will be set forth in booklets to be issued to covered
employees.

 

12.3 Employee Weekly Contribution Rates

 

	
   

  	
   

  	
  Year 1

  (Oct 1, 2004)

  	
   

  	
  Year 2

  (Oct 1, 2005)

  	
   

  	
  Year 3

  (Oct 1, 2006)

  	
   

  
	
  Associate

  	
   

  	
  $

  	
  17.92

  	
   

  	
  $

  	
  20.61

  	
   

  	
  $

  	
  23.70

  	
   

  
	
  Associate +1

  	
   

  	
  $

  	
  35.84

  	
   

  	
  $

  	
  41.22

  	
   

  	
  $

  	
  47.40

  	
   

  
	
  Family

  	
   

  	
  $

  	
  51.97

  	
   

  	
  $

  	
  59.77

  	
   

  	
  $

  	
  68.74

  	
   

  

 

The Company agrees that if during the term of the agreement the Wichita
Falls salaried associates’ contribution rates fall below those listed above,
for the same benefit schedule, the bargaining unit members’ rates will be
adjusted to be identical to the salaried associate’s rates.

 

27

 

Retail Prescription Drug Employee Co-Pay

 

	
   

  	
   

  	
  Year 1

  (Oct 1, 2004)

  	
   

  	
  Year 2

  (Oct 1, 2005)

  	
   

  	
  Year 3

  (Oct 1, 2006)

  	
   

  
	
  Tier 1

  	
   

  	
  $

  	
  8.00

  	
   

  	
  $

  	
  8.00

  	
   

  	
  $

  	
  8.00

  	
   

  
	
  Tier 2

  	
   

  	
  $

  	
  15.00

  	
   

  	
  $

  	
  15.00

  	
   

  	
  $

  	
  15.00

  	
   

  
	
  Tier 3

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  30.00

  	
   

  

 

Mail Order Prescription Drug Employee Co-Pay

 

	
   

  	
   

  	
  Year 1

  (Oct 1, 2004)

  	
   

  	
  Year 2

  (Oct 1, 2005)

  	
   

  	
  Year 3

  (Oct 1, 2006)

  	
   

  
	
  Tier 1

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  16.00

  	
   

  
	
  Tier 2

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  30.00

  	
   

  
	
  Tier 3

  	
   

  	
  $

  	
  60.00

  	
   

  	
  $

  	
  60.00

  	
   

  	
  $

  	
  60.00

  	
   

  

 

12.4 Future Retirees: Effective for retirees after August 8, 1998
the Company will pay $20.00 per month toward Medicare for retirees 65 and
older.  Early retirees may elect to stay
in the group hospital medical program by paying their own monthly premium until
age 65.

 

Article 13

Wages

 

13.1 The list of job classifications and corresponding labor grades and
the rate schedule are set forth in Addendum “B” and attached hereto and
made a part hereof, as though fully written herein.

 

Listed rates will reflect the following wage increases across the board
for all labor grades:

 

+3.75% Increase per hour effective August 9,
2004

 

+3.75% Increase per hour effective August 8,
2005

 

+3.50% Increase per hour effective August 7,
2006

 

28

 

Effective Date of Progression Rate Increases - The effective date of
each progression increase will always be on a Monday.  The Monday effective date of each progression
increase depends on where the three (3) month period is completed and will be
administered as follows:

 

	
  3
  Month Period Completed

  	
   

  	
  Effective Date of

  Progressive Increase

  
	
  Monday

  	
   

  	
  Same Monday

  
	
  Tuesday

  	
   

  	
  Prior Monday

  
	
  Wednesday

  	
   

  	
  Prior Monday

  
	
  Thursday
  through Sunday

  	
   

  	
  Next Monday

  

 

The above applies to the three (3) month period completed after the
effective date of an employee’s last increase (excluding annual increase), a
new hire completing three (3) months from his employment date, or the
completion of a three (3) month period after the effective date of a
promotion.  The three (3) month
progression period shall be extended only by the amount of all absences from
work of thirty (30) consecutive days or more. Each increase shall be in the
amount of ten cents (.10c) for every three (3) months until the maximum is
reached.  If ten cents (.10c) would take
an employee over the maximum, then the employee will receive only the maximum
rate for the classification.

 

13.2 Shift Premium.  Second shift
employees shall receive a premium of fifty cents (.50c) per hour and third
shift employees shall receive a premium of fifty cents (.50c) per hour in
addition to their regular straight time hourly rate.

 

13.3 Group Leader Pay.  All Group
Leaders may receive fifty cents (.50c) more than the highest employee over whom
they are responsible.  For pay purposes,
a Group Leader may not be responsible for another Group Leader.

 

13.4 Job Description.  The
Company and the Union agree that the manual of job descriptions discussed in
negotiations is a part of the contract but will be maintained in a Manual B-2
separate from the contract booklet.

 

13.5 Successful Bidder. 
Employees who successfully bid on vacancies in higher rated

 

29

 

classifications shall, upon moving to their new job, commence to
receive a rate within the rate range which is at least equal to their former
rate.  Any successful bidder to a higher
labor grade than job classification prior to successful bid will receive at
least ten cents (.10c) per hour rate adjustments unless it would cause rate to
be outside rate range.  The adjustment
shall be more than ten cents (.10c) if needed to reach the minimum of the rate
range.  Employees who successfully bid on
vacant positions in lower rated classifications shall, upon moving to their new
classification, receive a rate within the rate range which is closest to but
does not exceed their former rate of pay. 
Employees who successfully bid on vacant positions in equal rated
classification shall continue to receive their former rate of pay if it falls
in that rate range.

 

13.6 Bumped/Displaced.  Employees
who are displaced from their jobs and bump other employees shall be paid as
follows:  If the employee bumps to a
classification in a labor grade which is equal to his labor grade, he shall
receive the same rate of pay if it falls in that range.  If the employee bumps to a classification in
a lower labor grade, he shall receive the rate in the lower labor grade that
does not exceed the rate which he was receiving in his regular labor grade, but
is within the lower labor grade rate range.

 

13.7 Bereavement Pay.  In the
case of the death of an employee’s current spouse, parent, stepparent, child,
stepchild, brother, stepbrother, sister, stepsister, mother-in-law,
father-in-law, current son in-law, current daughter in-law, grandparents,
spouse’s grandparents or employee’s grandchildren, the affected employee, upon
making written application to his/her supervisor, shall be entitled to receive
pay at eight (8) times his regular hourly rate of pay, excluding overtime, for
not more than three (3) days absence from work to attend the funeral. This
provision does not apply to the employee who is on layoff or leave of absence.

 

Employees claiming bereavement pay will be required to submit proof
which is deemed satisfactory by the Company concerning the death and family
relationship.  Employees who falsely
claim bereavement pay shall be discharged. 
The intent is to provide paid leave for necessary time to take care of
and attend the funeral.  It is not
intended to provide time for other purposes.

 

13.8 Jury Pay.  Employees who are
subpoenaed for jury service and who serve as a juror shall receive eight (8)
hours at regular hourly straight time rate, including the employee’s regular
shift premium, if any and he may keep the amount received as jury pay, but in
no case shall the total pay from the Company exceed forty (40) hours pay per
week at regular hourly straight time rate. 
The employee must present proof of service from the court.  Night shift workers scheduled for jury duty
will not be required to work if they

 

30

 

actually serve on the jury during the day. Hours paid for pursuant to
this section shall be considered hours worked for the purpose of computing
overtime premium for subsequent hours worked within the same work week.

 

13.9 Call Back and Reporting Pay. 
An employee who reports for work as scheduled without having been
notified otherwise that there will be no work shall be given a minimum of four
(4) hours work or shall receive four (4) hours pay at the appropriate rate.
This however, does not apply where the failure to provide work results from
emergencies beyond the control of the Company, such as major accidents, fires,
storms, floods, power failures, or other similar events.  The Company shall pay reporting pay however
for other reasons unless the employee was notified in advance by the
Company.  The Company shall be obligated
to call by telephone to the last number provided to the Human Resources
Department by the employee.  Whenever an
employee reports for work and is offered work by the Company in other job
classifications and the employee refuses such work, he shall not receive any
reporting pay.  If the employee accepts
and performs such work he shall receive his regular rate of pay.  Whenever an employee reports for work and
starts working and the Company is unable to give him four (4) hours of work in
his regular job classification and department, but offers other work which is refused
by the employee, he shall be paid only for the hours actually worked at his
regular hourly rate of pay.

 

Employees who are called back to work after completing their scheduled
work shift and after they have left the Company’s premises will be given a
minimum of four (4) hours work or four (4) hours pay at time and one-half (1
1/2).  Provided further, however, that
should the hours paid at time and one-half (1 1/2) extend beyond the normal
reporting time straight time shall apply.

 

13.10 Emergency Service Away From Shop. Employees assigned to work at
the Company shop under the terms of this Agreement may be assigned to work away
from the shop.  When so assigned they
will be paid at their regular rate for all time spent in traveling in the
employee’s conveyance, or in traveling in a car or truck furnished by the
Company.  If they travel by common
carrier, or in transportation furnished by the Company, except the Company’s
car or truck, they shall be paid eight (8) hours pay for each twenty-four (24)
hours of travel time.  Such employees, if
they are required to wait at the place where they are told to work away from
the plant for parts or equipment, will be paid the amount of time which they
wait, not to exceed however, eight (8) hours for each twenty-four (24) hours of
such waiting.  If their travel time is
done or waiting is done on Saturday or Sunday, they will be paid on the same
basis as though such work were done at the plant of the Company on these
particular days.  The employee shall also
be allowed reasonable expenses for traveling, meals and lodging while away from
the

 

31

 

Company shop.

 

Article 14

Training of Apprentices

 

The Company and the Union agree to continue the apprenticeship
standards, which have heretofore been planned by them and the Federal
Apprenticeship Committee, unless such plans are changed by mutual agreement.

 

Article 15

Non-Employee Trainees

 

Employees or other individuals who maintain or contract to maintain
equipment of the Company, or employees of other individuals, corporations or
governments, who have bought the Company’s equipment and who wish to train
their men to operate or service and/or maintain such equipment, shall be
permitted to perform actual work done in the maintenance and/or operation or
repair in the shop or plant of the Company. 
It is understood, however, that in the performance of such actual work
those persons (who are known as trainees) are not to replace any employee of
the Company in the performance of such work, it being intended that such
regular employees may stand and assist and/or supervise the work of the
trainee.  Although the Company may
subcontract under the provision of Article 18 this Article is not
intended for such purpose.

 

Article 16

Safety & Health

 

16.1 The Company and the Union agree to
cooperate in carrying on a program to eliminate hazards to employee’s safety
and health during working hours.  The
Company shall institute and maintain all reasonable and necessary precautions
for safeguarding the health and safety of its employees.  The Company and Union, as well as all
employees, recognize their respective obligations to assist in the prevention,
correction, and elimination of hazardous work conditions and practices.

 

32

 

16.2 Insofar as practical all matters of
occupational safety and health shall be handled between the employee and his
immediate supervisor.  It is agreed by
the Company and the Union that all employees injured on the job, regardless of
how minor the injury may be, must immediately report the injury to his
immediate supervisor.  Failure to do so
may result in disciplinary action.  The
supervisor shall obtain first aid for such employee and in case of an emergency
requiring an ambulance, one will immediately be called.

 

16.3 First aid facilities shall be maintained
by the Company and qualified first aid attendants as required by law will be
trained and available.

 

16.4 
Employees injured on the job, treated on the same day of injury by a
physician, and who are unable to return to work that same day as certified by a
physician, shall be paid for the balance of their shift up to and including
eight (8) hours at their regular straight time hourly rate.

 

16.5 If an employee is injured on the job and
is required by the physician to return after the date of his injury and after
he returns to work, he will be allowed pay for time lost for up to four (4)
hours if necessary to see the physician. 
In no event however, shall an employee be eligible for pay for lost
time, when totaled with time actually worked, will equal more than eight (8)
hours pay at the employee’s regular straight time hourly rate.  The Union and the employees agree that such
return visits must be attempted to be scheduled by the employee at a time that
will cause him to miss the least time from his work schedule and that his
return visit will be coordinated in advance with the Company’s Industrial
Medical Technician.  The Union agrees
that the employee shall cooperate with the Company’s Industrial Medical
Technician to reschedule the return visits should the Company want to try
to do so by contacting the physician. 
Employees shall be granted reasonable time necessary for personal
cleanup prior to leaving the Company premises for a doctor’s appointment.  Employees may leave the Company’s premises no
earlier than thirty (30) minutes prior to the appointment time and will return
no later than thirty (30) minutes after the doctor’s visit.  This section is intended for return
visits to local physicians and for employees that are continuing to work.

 

16.6 Cool drinking water shall be furnished
at all times and sanitary drinking fountains shall be maintained.  All Company machines and tools shall be
maintained in a safe condition.  Floors,
lockers, locker rooms, toilets and washrooms shall be kept in a dry, clean and
sanitary condition and lighted and heated in the best manner consistent with
plant facilities.  The Company and the
Union agree to cooperate in every reasonable

 

33

 

manner to eliminate all unsafe practices, to
reduce industrial accidents to a minimum and to maintain efficient plant
operation.

 

16.7 The Company and the Union shall continue
with their Safety Committee.  The
Committee shall consist of one (1) Union Representative and one (1) Company
Representative.  The Company shall
designate its representative to act as Chairman of the Safety Committee.  Said Committee shall schedule regular
meetings every two (2) months at their respective locations for the purpose of
discussing safety measures.  It is
recognized that recommendations shall be of an advisory nature.  The Committee will also conduct an inspection
tour at each meeting called by the Chairman of the committee. The Chairman
shall make written reports of each meeting and send them to the Plant Manager /
Human Resources Representative or their Designee.  The Union agrees to give the Company’s Plant
Manager / Human Resources Representative or their Designee the name of the
employee appointed to the Safety Committee at least three (3) months in advance
of a change.

 

16.8 At the discretion of the Company,
employees returning to work or when medical findings point out that they could
return after being off due to an industrial accident may be required to take a
physical examination.  When so required
the examination shall be paid for by the Company and shall be conducted by a
physician selected by the Company. 
Should the employee’s Doctor and the Company’s Doctor have a difference
of opinion, the Chairman of the Grievance Committee and the Plant Manager /
Human Resources Representative shall meet in an effort to settle the
issue.  Should the issue not be settled
the two shall select another Doctor, who is a specialist in the area of
specialization needed, and his opinion shall be binding. The doctor’s expense
shall be paid by the Company.

 

16.9 All employees are required to use and
wear necessary protection equipment and apparel when so directed by the
Company.

 

Safety toe shoes
are required in all job classifications. 
The Company will reimburse up to $75.00 per calendar year or up to
$150.00 for a two-year calendar period for one pair of safety shoes per
employee.

 

16.10 The Company and the Union agree that
when medical examination shows that an employee must change jobs that the Plant
Manager/Human Resources Representative or their Designee and Chairman of the
Grievance Committee shall meet to discuss a favorable remedy.  Every reasonable effort will be made by the
Company to place the

 

34

 

employee if he must change jobs on a job
equally rated.  If this cannot be done
then every reasonable attempt will be made to place him on a job rated as high
as possible.  The Union agrees that if a
satisfactory arrangement can be made by the Plant Manager/Human Resources
Representative or their Designee and the Chairman of the Grievance Committee
that the job will not have to be posted. 
The Company shall not be required to create work or a job for this
purpose.

 

16.11 Protective Glasses.  The Company shall provide each employee with
a pair of non-prescription protective glasses without cost to the
employee.  For those employees that require
prescription glasses, the Company will fill the prescription with an initial
pair of safety glasses.  No additional
glasses will be furnished for this individual until two years later when the
second pair of prescription glasses will be furnished.

 

Each year thereafter, the Company will pay
one-half (1/2) the cost to fill such employee’s prescription provided there has
been a significant change in vision or, the Company will pay the entire cost of
the new glasses if two years has passed between prescription change.

 

Article 17

Bulletin Boards

 

The Company shall maintain a
bulletin board for the Union’s use.  Such
bulletin board shall be used only for posting notices of legitimate Union
business, Union meetings, Union elections and appointments, results of Union
elections and Union social activities. 
All notices must be submitted to the Plant Manager / Human Resources
Representative or their Designee for approval before posting.  No other place on Company property shall be
used by the Union for posting of notices, advertisements, or information of any
kind.

 

Article 18

Subcontracting

 

The Company agrees that during the term of the Agreement no work
usually performed by the employees covered by the Agreement will be
sub-contracted to another Company if the scheduled workweek of such employees
is less than 40 hours or if there are qualified employees then laid off
provided this restriction shall not apply if such contracted

 

35

 

outside work requires machinery, equipment, or facilities not owned or
operated by the Company, or if the work can be done more economically, and/or
timely to meet the delivery requirements of the customers. It is understood,
however, that the Company shall determine which products or portions thereof it
shall make and which it shall have made by others.

 

Article 19

Union Security & Check Off

 

19.1 During the term of this contract the Company agrees that it will
deduct from the first paycheck of each month, and remit to the Financial
Secretary of the Union, all dues of all employees eligible for union membership
who voluntarily execute a revocable dues deduction authorization and cause it
to be placed in the hands of the employer. 
Such authorization shall be upon forms provided by the Union and shall
be signed by the individual employee before they are placed in the hands of the
Company for the deduction.  Such
authorization forms shall be made upon cards in a size and form mutually agreed
upon between the Union and the Company.

 

19.2 Deductions shall be made on account of initiation fees or
reinstatement fees from the first paycheck of the employee after receipt of the
authorization.

 

19.3 If an employee has no earnings in the pay period in which the
deduction is scheduled to be made, then the deduction shall be made from the
first paycheck of the month in which this employee has earnings.

 

19.4 Employees who voluntarily execute deduction authorizations are
bound by the above mentioned provisions unless or until voluntarily cancelled
by the employee in writing to the Company and to the Union.  Nothing herein contained shall be construed
to require membership in the Union as a condition of employment with the
Company and this Agreement shall not abridge the fundamental right of an
employee to determine for himself, free of intimidation, coercion or
discrimination from any source, whether or not to be a member of the Union.

 

19.5 The authorization Form listed below shall be the agreed form and
no deduction shall be made until fully executed by the employee and presented
to the Human Resources Department.

 

36

 

Dues
Authorization Card

 

NAME                               CLOCK
NO.             DEPT.

 

I hereby authorize Wichita Falls Plant, Warner Electric, LLC., or its
Successor to deduct from my wages, each and every month, commencing with next
payroll period an amount equivalent to dues as shall be certified by the
Secretary-Treasurer of District Lodge 776 of the International Association of
Machinists and Aerospace Workers.  I
further authorize the company to deduct from my wages a designated sum in
payment of initiation fees when notified in writing to do so by the
Secretary-Treasurer of the Lodge.  The
sums to be deducted are hereby assigned by me to District Lodge 776 of the
International Association of Machinists and Aerospace Workers and are to be
remitted by the company to the Secretary-Treasurer of District Lodge 776.

 

This authorization and assignment is voluntarily made in consideration
for the cost of representation and collective bargaining and is not contingent
upon my present or future membership in the Union.  This authorization and assignment shall be
effective and irrevocable for a period of one (1) year from the date of
execution or until the termination date of the collective bargaining agreement
between Wichita Falls Plant, Warner Electric, Inc., or its Successor and
District Lodge 776 of the International Association of Machinists and Aerospace
Workers, whichever occurs sooner.

 

Further, this authorization
and assignment shall continue in full force and effect from year to year beyond
the irrevocable period set forth above, and this authorization and assignment
shall be effective and irrevocable in each subsequent year unless revoked by me
within ten (10) calendar days prior to the date of termination of any irrevocable
period hereof.  Such revocation shall be
effected by written notice, sent by certified mail, return receipt requested,
to the company and the Union within such ten (10) day period.

 

 

Contributions or gifts to the International Association of Machinists
and Aerospace Workers are not tax deductible as charitable contributions for
federal income tax purposes.  However,
such contributions or gifts may be tax deductible under other provisions of the
Internal Revenue Code.

 

 

	
  SIGNATURE

  	
   

  	
   DATE

  

 

37

 

19.6 The Company’s obligation to make deductions shall terminate in the
event an employee for any reason shall cease to be a member of the bargaining
unit.  Should at a later date the person
become a bargaining unit member again, a new authorization card must be given
to the Company to cause deduction to be made again.

 

19.7 Before the authorization card will be accepted by the Company it
must be completed in its entirety and must be readable. Special attention must
be paid to the employee number and full name of the employee.  Cards that are not properly filled out or
cards that cannot be read shall not be accepted by the Company.

 

19.8 The Union shall indemnify the Company and hold it harmless against
any and all suits, claims, demands and liabilities which arise out of or by
reason of any action taken or not taken by the Company for the purpose of
complying with any of the provisions of this section.

 

Article 20

Union Representation

 

The Business Representative or Representatives of the International
Union shall have access to the Company’s plant during working hours for the
purpose of investigation of grievances. 
He shall obtain from the Company specific authorization for each visit
and such visit shall be subject to such regulations as may be made from time to
time by the Company. The Company will not impose regulations which will exclude
the International or Business Representative from its plant, nor render
ineffective the intent of this provision.

 

Article 21

Increased Efficiency

 

The Union agrees to use its best efforts to support all of the Company’s
efforts to increase the efficiency of the Company’s employees who it
represents.

 

38

 

Article 22

Negotiating Committee

 

The Company agrees that it will pay the employees that represent the
Union at contract negotiations time during the life of the contract, for up to
eight (8) hours pay at their regular straight time rate of pay for each day of
negotiations. The Union agrees that the employees that represent the Union in
negotiations for a new contract will not be more than two (2) in numbers.

 

Article 23

Successor

 

This contract and the letters
of intent negotiated by the Company and the Union in 2001 shall be binding upon
the successors, assignees, and legal representatives of each of the parties
hereto.

 

Article 24

Termination of Previous Agreement

 

This agreement shall supersede all previous agreements whether oral or
written, made between the parties, except as provided for under the terms of
this written agreement.

 

Article 25

Waiver & Entire Agreement

 

Neither the Company nor the Union shall be obligated to negotiate or
bargain on any matter of any nature whatsoever not covered by the provisions of
this Agreement, during the life of this Agreement.

 

39

 

In the event that any provision of this Agreement shall be declared
void or illegal by a court of competent jurisdiction, such provision shall
become inoperative but all other provisions of this Agreement shall remain in
full force and effect for the duration of this Agreement.

 

Any portion of this agreement may be amended if mutually agreed upon in
writing by the “Company” and the “Union” in accordance with Federal Labor laws
and O.S.H.A. rules and regulations.

 

Article 26

Distribution of Agreement

 

The Company shall have copies of the collective bargaining agreement
printed and distributed to each full time employee covered by the agreement
within forty-five (45) days of the ratification of the Agreement.

 

Article 27

Term of Agreement

 

This Agreement shall remain in full force and effect until August 10,
2007 and shall thereafter be continued for yearly periods unless notice of
termination is given in writing by registered or certified mail by either party
to the other at least sixty (60) days before August 10, 2007 or any
subsequent annual expiration date.

 

40

 

	
  FOR THE UNION:

  
	
   

  
	
   

  
	
   

  
	
  Paul Black

  
	
  IAM Business Representative

  
	
   

  
	
   

  
	
   

  
	
  Bill Land

  
	
  Chief Steward IAM

  
	
   

  
	
   

  
	
   

  
	
  David Thames

  
	
  Negotiating Committee IAM

  
	
   

  
	
   

  
	
  FOR THE COMPANY:

  
	
   

  
	
   

  
	
   

  
	
  Mark Stuebe

  
	
  General Manager - Wichita Clutch

  
	
   

  
	
   

  
	
   

  
	
  Tim McGowan

  
	
  V.P., Human Resources - Colfax PT Group

  
	
   

  
	
   

  
	
   

  
	
  Eric Michaeli

  
	
  Manufacturing Manager – Wichita Clutch

  
	
   

  
	
   

  
	
   

  
	
  Brian Williams

  
	
  Materials Manager – Wichita Clutch

  

 

41

 

Addendum B

Job Classifications

 

 

	
  Job
  Title

  	
   

  	
  Grade

  	
   

  	
  Job Code

  	
   

  
	
  Journeyman Machinist

  	
   

  	
  10

  	
   

  	
  44-4

  	
   

  
	
  Journeyman Maintenance

  	
   

  	
  10

  	
   

  	
  54-4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Journeyman Assembler

  	
   

  	
  9

  	
   

  	
  07-4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly Mechanic A

  	
   

  	
  8

  	
   

  	
  07-1

  	
   

  
	
  Cell Operator A

  	
   

  	
  8

  	
   

  	
  30-1

  	
   

  
	
  Machine Operator A

  	
   

  	
  8

  	
   

  	
  44-1

  	
   

  
	
  Maintenance A

  	
   

  	
  8

  	
   

  	
  54-1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping/Receiving/Warehouse A

  	
   

  	
  7

  	
   

  	
  81-1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly Mechanic B

  	
   

  	
  6

  	
   

  	
  07-2

  	
   

  
	
  Cell Operator B

  	
   

  	
  6

  	
   

  	
  30-2

  	
   

  
	
  Machine Operator B

  	
   

  	
  6

  	
   

  	
  44-2

  	
   

  
	
  Maintenance B

  	
   

  	
  6

  	
   

  	
  54-2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping/Receiving/Warehouse B

  	
   

  	
  5

  	
   

  	
  81-2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly Mechanic C

  	
   

  	
  4

  	
   

  	
  07-3

  	
   

  
	
  Cell Operator C

  	
   

  	
  4

  	
   

  	
  30-3

  	
   

  
	
  Machine Operator C

  	
   

  	
  4

  	
   

  	
  44-3

  	
   

  
	
  Maintenance C

  	
   

  	
  4

  	
   

  	
  54-3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping/Receiving/Warehouse C

  	
   

  	
  3

  	
   

  	
  81-3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Helper

  	
   

  	
  2

  	
   

  	
  00-0

  	
   

  

 

42

 

Rate Structure

 

Effective August 9,
2004

 

	
  Grade

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  
	
  10

  	
   

  	
  $

  	
  19.47

  	
   

  	
  $

  	
  19.47

  	
   

  
	
  9

  	
   

  	
  $

  	
  18.19

  	
   

  	
  $

  	
  18.19

  	
   

  
	
  8

  	
   

  	
  $

  	
  15.73

  	
   

  	
  $

  	
  16.93

  	
   

  
	
  7

  	
   

  	
  $

  	
  15.13

  	
   

  	
  $

  	
  16.15

  	
   

  
	
  6

  	
   

  	
  $

  	
  14.17

  	
   

  	
  $

  	
  15.07

  	
   

  
	
  5

  	
   

  	
  $

  	
  13.13

  	
   

  	
  $

  	
  13.86

  	
   

  
	
  4

  	
   

  	
  $

  	
  12.23

  	
   

  	
  $

  	
  12.84

  	
   

  
	
  3

  	
   

  	
  $

  	
  11.87

  	
   

  	
  $

  	
  12.30

  	
   

  
	
  2

  	
   

  	
  $

  	
  10.77

  	
   

  	
  $

  	
  11.53

  	
   

  

 

Effective August 8,
2005

 

	
  Grade

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  
	
  10

  	
   

  	
  $

  	
  20.20

  	
   

  	
  $

  	
  20.20

  	
   

  
	
  9

  	
   

  	
  $

  	
  18.87

  	
   

  	
  $

  	
  18.87

  	
   

  
	
  8

  	
   

  	
  $

  	
  16.32

  	
   

  	
  $

  	
  17.56

  	
   

  
	
  7

  	
   

  	
  $

  	
  15.70

  	
   

  	
  $

  	
  16.76

  	
   

  
	
  6

  	
   

  	
  $

  	
  14.70

  	
   

  	
  $

  	
  15.64

  	
   

  
	
  5

  	
   

  	
  $

  	
  13.62

  	
   

  	
  $

  	
  14.38

  	
   

  
	
  4

  	
   

  	
  $

  	
  12.69

  	
   

  	
  $

  	
  13.32

  	
   

  
	
  3

  	
   

  	
  $

  	
  12.32

  	
   

  	
  $

  	
  12.76

  	
   

  
	
  2

  	
   

  	
  $

  	
  11.17

  	
   

  	
  $

  	
  11.96

  	
   

  

 

Effective August 7,
2006

 

	
  Grade

  	
   

  	
  Minimum

  	
   

  	
  Maximum

  	
   

  
	
  10

  	
   

  	
  $

  	
  20.91

  	
   

  	
  $

  	
  20.91

  	
   

  
	
  9

  	
   

  	
  $

  	
  19.53

  	
   

  	
  $

  	
  19.53

  	
   

  
	
  8

  	
   

  	
  $

  	
  16.89

  	
   

  	
  $

  	
  18.17

  	
   

  
	
  7

  	
   

  	
  $

  	
  16.25

  	
   

  	
  $

  	
  17.35

  	
   

  
	
  6

  	
   

  	
  $

  	
  15.21

  	
   

  	
  $

  	
  16.19

  	
   

  
	
  5

  	
   

  	
  $

  	
  14.10

  	
   

  	
  $

  	
  14.88

  	
   

  
	
  4

  	
   

  	
  $

  	
  13.13

  	
   

  	
  $

  	
  13.79

  	
   

  
	
  3

  	
   

  	
  $

  	
  12.75

  	
   

  	
  $

  	
  13.21

  	
   

  
	
  2

  	
   

  	
  $

  	
  11.56

  	
   

  	
  $

  	
  12.38

  	
   

  

 

43

 

Addendum C

8-9-04

Letter of Intent

 

 

Mr. Paul Black

I.A.M. Committee

 

 

Reference: Company Flowers

 

The Company will continue to send flowers as a result of the following
situations:

 

A. 
Employees who are hospitalized

 

B. 
Deceased employee’s funeral

 

C. 
Member of employee’s family hospitalized

 

D. 
Deceased family member’s funeral

 

Please contact the Human Resource Department to arrange for flowers to
be sent at the proper time.

 

 

Mark J. Stuebe

General Manager

Wichita Clutch

 

44

 

Addendum D

8-9-04

Letter of Intent

 

 

Mr. Paul Black

I.A.M. Committee

 

Reference: Sub-Contracting

 

During this contract negotiation, the subject of outside contracting
and its current and potential effect on the workforce was discussed at
length.  Any arbitration decision
rendered that covers a period of the previous contract will be honored, but
this Letter of Intent will supersede any period of time hereafter.

 

The Company desires to assure the Union that we have every intent to
stabilize the workforce for the job security of our employees.  While it is impossible to guarantee
employment, we fully appreciate the apprehension of the Union caused by the
nature of our business.

 

The nature of our operations demands that we continue our present
practice on sub-contracting.  However,
the Company will, during periods of layoff, meet with the Union upon its
request once each month, with or without the necessity for a grievance, to
discuss outside contracting with the objective of returning to normal
employment levels as soon as practical, and to discuss the economies, lead
times, or other necessary business reasons.

 

Considerations used when sub-contracting include the operational needs
of the business, the efficiency and the economics involved, as well as any
adverse effect upon the employment of our people, including those on layoff.

 

The Company is committed to the concept of stabilizing the workforce,
and it is understood that in many instances it will be to our mutual advantage
to utilize our own equipment and manpower first.

 

 

Mark J. Stuebe

General Manager

Wichita Clutch

 

45

 

Addendum E

8-9-04

Letter of Intent

 

 

Mr. Paul Black

I.A.M. Committee

 

 

Reference:  Cycle Counting

 

The parties have discussed the matter of cycle counting during these
2001 negotiations.  While we know it
would be desirable to assign the duties and responsibility to either bargaining
unit people or non-bargaining unit people, it is not practical to do so at this
time.

 

This is a function of a perpetual inventory control system.  It is in the best interest of both parties to
continue to share the responsibilities for physical inventory in the same
spirit that we are mutually responsible for quality.

 

 

Mark J. Stuebe

General Manager

Wichita Clutch

 

46

 

Addendum F

 

401(k) SAVINGS
PLAN FOR HOURLY/UNION EMPLOYEES

 

The Company established a Savings Plan for
the bargaining unit employees of Warner Electric, Wichita Falls, Texas Plant.
The Plan will be established and administered by the Company who will bear the
fiduciary responsibility and the cost of its administration, arrange for a
record keeper and trustee, produce and record all required reports filings and
plan documentation, name a plan administrator, and arrange for audits as may be
needed from time to time. It is understood and agreed that the Company through
any communications that it may use to promote the plan, is not offering
financial advice to any plan participant. A description of this plan is
included herein, referred to as Addendum F.

 

OUTLINE OF SAVINGS PLAN PROVISIONS
ELIGIBILITY AND ENROLLMENT: All bargaining unit employees will be eligible to
enroll in the Savings Plan after the completion of their probationary period,
or the effective date of this plan, which ever is later. Enrollments for
employees already on the payroll will be effective as soon as practical
following their execution of the appropriate enrollment and authorization forms
provided by the Company. Each participant who enrolls will be provided an
account in their name.

 

CONTRIBUTIONS: Each eligible participant will
be entitled to have withheld from their pay up to fifty percent (50%) of their
gross pay on a pre-tax basis (under section 401-K of the Internal Revenue
Tax Code), and up to ten percent (10%) of gross pay on an after-tax basis. The
Company will forward employee contributions to the record keeper/trustee, to be
deposited in each employee’s account, as soon as possible following the end of
each month. Enrollments and contributions will be cancelled or changed
effective the first pay period following written authorization by the employee.
Changes in contribution amounts will be allowed at any time. Re-enrollment after
cancellation of contributions will be allowed at any time.

 

Effective August 9, 2004 the Company will match 50% of the first
$750.00 pre tax dollars contributed by the employee to the plan.

Effective August 9, 2004 the Company will contribute $.10 per hour paid
to the employee’s pre tax Savings Plan.

 

Effective August 8, 2005 the
Company will match 50% of the first $1,000.00 of pre-tax dollars contributed by
the employee to the plan.

Effective August 8, 2005 the
Company will contribute $.20 per hour paid to the employee’s pre-tax Savings
Plan.

 

47

 

INVESTMENT OPTIONS: The Company will arrange
for a choice of investment options in accordance with section 404(c) of
the Internal Revenue Code. These options will be a least 1) a fixed income
option, 2) a long-term bond fund, 3) an aggressive growth fund, 4) a money
market fund, and 5) an intermediate growth stock fund. Participants will be
allowed to reallocate their account balances between investment options at any
time, unless specifically prohibited by the plan provisions.  Reallocation of account balances will be in
even dollar amounts only.

 

WITHDRAWALS: Withdrawals of a participant’s
account balance will be available upon retirement, termination of employment
with the company, death of a participant, total and permanent disability of the
participant, or hardship. Hardship withdrawals will be determined based upon
facts and circumstances in accordance with Internal Revenue Code. Each
participant shall designate a beneficiary upon enrollment.

 

LOANS: Each participant will be able to take
a loan of no more than one half of their account balance. Loans will be made in
one hundred dollar ($100) increments not less than five hundred dollars
($500.00), and not to exceed current Internal Revenue Code limits. Loans will
be repaid in no less than sixty (60) months, except for the purchase of a
principle residence which will have an amortization period of not less than one
hundred and twenty months (120) months, and at an interest rate set at the
origination of the loan. Interest rates will be one percent (1%) above the
prime rate in effect on, and published in the Wall Street Journal on the first
day of each calendar quarter. A participant will have no more than one outstanding
loan at any time. Each Participant will pay to the record keeper, out of the
proceeds of their loan, a loan origination fee not to exceed thirty-five ($35),
and an annual loan maintenance fee not to exceed twenty dollars ($20). Any
participant who fails to make a loan repayment in any three-month period, or
who fails to pay back the entire loan balance within the loan amortization
period, will be in default of the loan. Upon default of a loan the record
keeper will issue a 1099 form in the amount of the remaining loan balance.  A participant who defaults on a loan will be
barred from any further loan eligibility.

 

INFORMATION AND STATEMENTS: Participants will
be provided a statement of their accounts twice per year. The Company will
undertake reasonable efforts to establish a phone access for all participants
with the record keeper as soon as possible after the implementation of the
plan. The phone system will offer at least a toll-free phone number (pending
availability of toll free numbers) with the ability to inquire account balance
and originate loans.

 

APPLICABLE STATE AND FEDERAL LAWS: In all
cases of the taxable nature of compensation and plan provisions, applicable
Federal, State and Local Laws will apply regardless of plan provisions to the
contrary. The Company will arrange for all tests

 

48

 

required by the Internal Revenue Code and
will be empowered to take any corrective action to participant’s accounts and
or contributions that may be required within the scope of the applicable Code
provisions.

 

49

 

Addendum G

8-9-04

Letter of Intent

2nd Shift

 

This agreement has been made and entered into this 9th day
of August 2004, by and between the Wichita Clutch Company, and the IAM,
Local Lodge 2771.  It is the intent of
this letter that only the amended articles listed below will be affected.  Furthermore this letter will cover only
second shift employees at Wichita Clutch Company.

 

NOW THEREFORE, IT IS AGREE AS
FOLLOWS

 

Article 5

HOURS OF WORK AND OVERTIME

 

5.2             The normal workweek shall
consist of four (4) consecutive workdays, Monday through Thursday.  The normal workday shall consist of ten (10)
consecutive hours excluding a one-half (1/2) hour unpaid lunch period.

 

5.3             For payroll purposes,
the workweek shall be a seven (7) consecutive day period starting at 12:01 A.M.
on Monday.  For payroll purposes, the
workday shall be the twenty-four - (24) hour period beginning at 2:01 A.M. each
day.  All employees covered by this
agreement shall be paid weekly and the Company agrees not to withhold more than
one (1) week’s pay.

 

5.4             The Company shall
have the right from time to time to adjust the normal shift starting times by
department between 2:30pm and 4:30pm.  When
all employees in a department are not affected by a change in shift hours, the
Company will first solicit volunteers.

 

5.5             Scheduled starting
and quitting times for employees accepting daily overtime assignments shall be
at the discretion of the Company.

 

5.6             Distribution of
Overtime.  Both parties agree that it is
fair to make every reasonable effort to divide overtime work, so far as
practical within each job classification, department and shift based upon the
qualifications of the employee to perform such work without displacing the
employees normally performing that work during the normal work week.  For the second shift only, Friday through
Sunday will not be

 

50

 

construed as part of the normal workweek
except in the case of mandatory overtime.

 

5.7             It is agreed that in
the event of change in the starting or ending time of a shift, the Company will
notify the affected employees in such department during the preceding shift of
such change.  When the Company changes
the scheduled report time for the beginning of a shift and the first day of the
work week results in the starting time of the new week overlapping into the
last day of the previous work week nothing in this article is to be
construed to require the Company to pay overtime because of this overlap.  Provided further however, if at the start of
a new work day at 2:01 A.M. and an employee is already working, and at that
time is being paid an overtime rate by reason that he had worked in excess of ten
(10) hours or (twelve (12) hours during the work day immediately preceding, he
shall continue to receive the appropriate overtime rate and not have pay
reduced because of the advent of the new work day.  For pay purposes a new workday will be
established only after the employee leaves the premises.  When a department or part of a department is
scheduled to work on Saturday the employees involved will be notified, in all
cases possible, before the end of the shift on Wednesday.  Thereafter changes necessary will be made as
soon as practical.  Employees may refuse
daily and Saturday overtime, provided however that in the event no qualified
employee(s) accepts such overtime work, qualified employees in that job classification,
department, and shift affected having the least overtime charged shall work the
assigned overtime.  As an option,
qualified employees as determined by the Company in other classifications and
on the same shift may be assigned the overtime assignment.  Employees may refuse overtime on Holidays and
on Sunday.

 

Employees failing to work accepted weekend
overtime hours will be subject to Plant Rule # 43.

 

To provide opportunity for others to work in
the place of employees who may not desire to do so, an employee when contacted
about working overtime shall give a “Yes” or “No” answer within thirty (30)
minutes.  Employees will not be charged
for any overtime hours refused if the hours were offered within the final one
half hour of their shift.

 

5.8             Company Requested
Overtime ( 1 1⁄2) Overtime Premiums of time and one-half (1 1⁄2) of the straight
time hourly rate shall be paid as follows:

 

A.           For all hours worked in
excess of ten (10) hours in any one (1) workday

B.             For all hours worked
in excess of forty (40) hours in any one (1) workweek

C.             For all hours worked
by an employee on Saturday in any workweek.

 

51

 

If an employee is making up time missed because of holiday time,
bereavement time, jury duty, personal time or any other employee requested time
in a workday, the employee will not be paid overtime or double-time because the
employee requested the company to accommodate the employees’ schedule.  An employee cannot request to work more than
twelve (12) hours in a single workday, to make up missed time.

 

5.9             Double-time Premium
(2) Overtime premiums of two (2) times the straight time hourly rate shall be
paid as follows:

 

A.           For all hours worked by
an employee on Sunday in any workweek.

B.             For all hours worked
in excess of twelve (12) hours in any one (1) workday.

C.             For all hours worked
on days defined as Holidays under this Agreement, except when such hours are
part of a shift commencing on the one day and carrying over into the Holiday.

 

Article 9

VACATION

 

Vacation days taken by second
shift employees will be taken in ten (10) hour increments. All eligibility and
requirements will follow Article 9 of the current contract.  Any employee that changes shifts during the
vacation year will be allowed to use any remaining vacation hours with approval
of his Supervisor.

 

Article 10

HOLIDAYS

 

Holiday hours taken by second
shift employees will be taken in eight (8) hour increments.  Any time missed in a workweek due to the
employee taking a holiday will not be held against the employee for attendance
purpose.  It is the employee
responsibility to request in advance, from the Area Managers, permission to
come in early to make up any missed time. 
All missed time must be made up in the same workweek.  The employee will make the request
twenty-four hours in advance to ensure production needs do exist.  No employees will be allowed to work past
2:00 A.M. unless requested by the Company.

 

52

 

10.1               Holidays
Observed.  During the term of this
Agreement, the following days shall be considered Holidays:

 

	
  Good Friday

  	
   

  	
  Friday after Thanksgiving

  
	
  Memorial Day

  	
   

  	
  Christmas Eve

  
	
  Fourth of July

  	
   

  	
  Christmas Day

  
	
  Labor Day

  	
   

  	
  New Year’s Day

  
	
  Thanksgiving

  	
   

  	
  Paid Personal Time Off (PPTO) (2 Days)

  

 

PPTO hours taken by second shift employees can be taken in four (4) or
eight (8) hour increments.  Any time
missed in a workweek due to the employee taking PPTO will not be held against
the employee for attendance purpose.  It
is the employee responsibility to request in advance, from the Area Managers,
permission to come in early to make up any missed time.  All missed time must be made up in the same
workweek.  The employee will make the
request twenty-four hours in advance to ensure production needs do exist.  No employees will be allowed to work past
2:00 A.M., unless requested by the Company.

 

All eligibility requirements as stated in Paragraph 10.2, Holiday Pay
and Eligibility, shall apply to both floater holidays.

 

10.6 The paid personal time off (PPTO) may be
taken by the employee at any time during the calendar year by providing at
least thirty (30) minutes notice prior to the beginning of the employees shift.

 

Employees may elect to receive pay in-lieu-of
PPTO.  If an employee elects this option,
the pay in-lieu-of PPTO will be paid in the following weeks pay period. PPTO
may be scheduled in four (4) or eight (8) hour increments.

 

Article 12

GROUP INSURANCE

 

Weekly Sickness and Accident
(non-occupational) - $300.00 per week for 16 weeks (3 day waiting period for
sickness unless hospitalized: first day payment for off-the-job accident) for
all labor grades.

 

Second shift employees will
have the weekly sickness and accident payment of $300.00 per week, paid out for
the normal second shift workweek.  If a
second shift employee gets into an accident or sick on a non-normal workday
(Friday through Sunday) no benefit will apply. 
For example, a second shift employee will be paid twenty-five percent
(25%) of the $300.00 for each of the four (4) days he/she is out, Monday
through Thursday.

 

53

 

Article 13

WAGES

 

Bereavement Pay

 

Bereavement hours taken by
second shift employees will be taken in eight (8) hour increments.  Any time missed in a workweek due to the
employee taking bereavement will not be held against the employee for
attendance purpose.  It is the employee
responsibility to request in advance, from the Area Managers, permission to
come in early to make up any missed time. 
All missed time must be made up in the same workweek.  The employee will make the request
twenty-four hours in advance to ensure production needs do exist.  No employees will be allowed to work past
2:00 A.M., unless requested by the Company.

 

Jury Pay

 

Jury duty hours taken by
second shift employees will be taken in eight (8) hour increments.  Any time missed in a workweek due to the
employee taking jury duty will not be held against the employee for attendance
purpose.  It is the employee responsibility
to request in advance, from the Area Managers, permission to come in early to
make up any missed time.  All missed time
must be made up in the same workweek. 
The employee will make the request twenty-four hours in advance to
ensure production needs do exist.  No
employees will be allowed to work past 2:00 A.M., unless requested by the
Company.

 

TERM OF AGREEMENT

 

This Agreement for the 2nd
shift shall remain in full force and effect until midnight on August 10,
2007.  The Company will commit to
maintaining the present four (4), ten (10) hour shift schedule unless
changed by mutual agreement.  In the
event, however, the Company chooses to implement a 3rd shift the 2nd
shift hours will automatically revert to a five (5) day, eight (8) hour shift
schedule.

 

54

 

Addendum H

8-9-04

Letter of Intent

 

Mr. Paul Black

I.A.M. Committee

 

 

Reference: Health / Fitness Dues Reimbursement

 

 

The company is committed to maintaining a healthy and safe work
environment for its associates.  In
furtherance of this commitment, the company has maintained a practice of
reimbursing its associates for up to $25.00 per month for membership fees in a
gym or fitness club with proof of participation of 10 visits per month. The
company intends to continue this practice for the benefit of all of its
associates but may in the future choose to modify or eliminate this practice at
its sole discretion.

 

 

Mark J. Stuebe

General Manager

Wichita Clutch

 

55

 

Addendum J

8-9-04

Letter of Intent

 

Mr. Paul Black

I.A.M. Committee

 

 

Reference: Combining Departments

 

During the 2001 contract negotiations the discussion of promoting more
cellular manufacturing was discussed. Some of the topics from that discussion
were combining Department 20 and Department 30 to form more machining cells and
better utilization of our equipment. There were also discussions of forming a
Journeyman classification for that area. Although no decisions were made during
the discussion, both parties agreed to leave this open for discussions during
the term of the contract.

 

 

Mark J. Stuebe

General Manager

Wichita Clutch

 

56

 

Plant Rules & Regulations

 

All work
places and businesses must have certain rules and regulations to enable the
company to meet its overall goals and objectives without disruptions.  Rules are established to benefit the employee
and the company.  Most employees working
in industry today realize that one employee’s misconduct may harm the rest and
they expect certain standards of conduct to be established and maintained.

 

Disciplinary
action must always be intended to train, correct, and strengthen employees in
their jobs.  Whether discipline is in the
form of oral warnings, written warnings, suspension without pay, or discharge,
these actions in so far as practical will be applied uniformly for the purpose
of preventing recurrence of the cause of such action.  They are not designed to humiliate or
retaliate.

 

A complete
list of violations requiring disciplinary action probably is not possible to
establish nor should it be necessary, as “common sense” should prevail between
reasonable people.  However, in an effort
to better communicate with employees and to provide Supervisors with guidelines
to go by, therefore causing more uniform application, the following general
work rules and regulations are listed with the appropriate disciplinary action
to be applied if violated.

 

1.                                       Stealing – Any act of theft of property
belonging to the Company, another employee, or anyone doing business with the
Company is strictly prohibited. 
(Discipline code 4)

 

2.                                       Fighting – Provoking or instigating a fight
or striking another person for any reason except in self-defense is absolutely
prohibited.  (Discipline code 4)

 

3.                                       Intent to Harm/Destroy  – Acts intended to destroy including
defacing property or equipment of the company, another employee, or anyone
doing business with the Company or acts intended to inflict bodily injury,
whether or not destruction or injury actually occurs, and engaging in sabotage
or espionage are absolutely prohibited. 
(Discipline code 4)

 

4.                                      Encouraging
Fellow Employees to Walk Off Job  – Acts
intended to coach, encourage, or in any way cause employees to walk off job
whether or not employee engaging in such act leaves is strictly prohibited.  (Discipline code 4)

 

5.                                       Use or Possession of Alcoholic Beverage and /or
Illegal Drugs – Use or possession of alcoholic beverages and/or
Illegal Drugs on company property will not at any time be permitted.  (Discipline code 4)

 

57

 

6.                                       Conviction of Crime – An employee found
guilty of a crime, other than for a minor traffic violation or similar
violation in any court of law is subject to discharge.  (Discipline code 4)

 

7.                                       Punching Another Employee’s Time Card – Willful
punching of another employee’s time card is prohibited.  (Discipline code 4)

 

8.                                       Immoral Conduct – Engaging in or committing
an immoral act at any time will be basis for discharge.  (Discipline code 4)

 

9.                                       Any Falsification of Company Records  – Any willful or intentional falsifying of
company records is strictly prohibited. 
(Discipline code 4)

 

10.                                 Borrowing Company Property – Borrowing
Company materials and equipment without written permission, is absolutely
prohibited.  (Discipline code 4)

 

11.                                 Insubordination – Refusing or failure to
perform work assigned by a Supervisor is prohibited.  If instruction of Group Leaders acting on
orders of Supervisor is refused, the Group Leader should turn over the
situation to the Supervisor to handle. 
Threats or intimidation of management or malicious statements concerning
management shall be considered insubordination and are prohibited.  (Discipline code 3)

 

12.                                 Leaving Premises Without Permission – Employees
that leave company property, except for lunch, during work hours without
permission of their Supervisor are in violation of this work rule.  (Discipline code 3)

 

13.                                 Reporting to Work Under Influence of Alcohol or Drugs
– Reporting to work under the
influence of alcohol or drugs is prohibited. 
This includes reporting to work at beginning of shift, after lunch, or
at anytime during your work hours. (Discipline code 3)

 

14.                                 Sleeping  –
Sleeping during work hours is prohibited.  (Discipline code 3)

 

15.                                 Firearms, Explosives, Weapons  – Possession of firearms, explosives, or
weapons on company property are prohibited. Fireworks are considered
explosives.  (Discipline code 3)

 

16.                                 Slowdown – Intentional holding back,
slowing down, hindering, or limiting ones own production, or encouraging,
coercing, or bribing others to do the same is prohibited.  (Discipline code 3)

 

58

 

17.                                 Untruthful Statements  – Untruthful statements by employees to
management, including their Supervisor, who are responsible for the administration
of company rules and regulations and the work agreement are a violation.  (Discipline code 3)

 

18.                                 Disorderly Conduct/Horseplay – Disorderly
conduct including but not limited to such things as so called practical jokes,
horseplay, rowdiness, running, scuffling, throwing things, threatening,
intimidating, coercing, interfering with other employees, shouting vulgarities,
issuing false statements, etc., are prohibited. 
(Discipline code 2)  Property
damage as a result of violation of this rule must be paid for or the employee
will be subject to discharge. 
(Discipline code 4)

 

19.                                 Bulletin Boards/Notices – Altering or
removing any matter, which has been posted by the company on bulletin boards or
other locations, is prohibited. 
(Discipline code 2)

 

20.                                 Notice Posting by Employees – Notices of
any type posted by employees are prohibited unless authorized by a Supervisor.
(Discipline code 2)

 

21.                                 Solicitation – Employees may not solicit or
sell anything unless authorized by a Supervisor.  This includes taking up collections for any
reason or distribution of literature. 
(Discipline code 2)

 

22.                                 Perform Other Than Company Work – Performing
work on company premises that is not authorized by the company is prohibited.
(Discipline code 2)

 

23.                                 Rest Breaks  – The policy for breaks is one (1) ten (10) minute break in
the first part of the shift and one (1) ten (10) minute break in the last part
of the shift.  Employees will be allowed
an additional break of ten (10) minutes by their Supervisor if overtime is
worked but not unless the overtime is for over one and one half (1 1⁄2) hours in
addition to the regular eight (8) hours. 
Taking unauthorized breaks as well as failure to begin work for any
reason after break or lunch period is a violation.  (Discipline code 2)

 

24.                                 Visitors  –
Bringing visitors into the plant or asking them to come in and visit
is prohibited unless approval is granted by your Supervisor.  (Discipline code 2)

 

25.                                 Borrowing Tools From Other Employees –Borrowing
tools from other employees without their permission is prohibited.  (Discipline code 2)

 

59

 

26.                                 Vending Machine Damage –  Abusing vending machines is
prohibited.  When malfunction occurs,
report the problem to the proper person. 
(Discipline code 2)  Property
damage as a result of the violation must be paid for by the employee or the
employee will be subject to discharge.

 

27.                                 Permission to Discuss Grievance – The
Company has the right to expect employees and the Union committeemen to obtain
permission from the respective Supervisors before stopping work and pursuing a
grievance.  In order to minimize loss of
production the Supervisor may schedule the time for the discussion to take
place at a later time.  In no case will
the Supervisor delay approval and scheduling of a grievance meeting requested
of them later than the day after receiving such a request.  Union committee members shall confine their
grievance activities to matters arising within their area of jurisdiction.  Failure to obtain permission of an employee’s
and committeeman’s respective Supervisor before discussion of a grievance on
company time is considered a violation. 
(Discipline code 2)

 

28.                                 Reading on Work Time – Reading literature
not pertaining to business on the job during work hours is prohibited.  (Discipline code 1)

 

29.                                 Leaving Work Station Without Permission —
Leaving the work station and/or department without permission from your
Supervisor during work hours or failure to return within a reasonable time is a
violation under this rule. Certainly permission is not necessary to go to the
drinking fountain or restroom so long as the privilege is not abused.
(Discipline Code 1)

 

30.                                 Loafing, Loitering – Employees are expected to work steadily
each hour for which they are paid. Loafing, loitering in the work areas or
restrooms, or engaging in excessive visiting during working hours is
prohibited. (Discipline code 1)

 

31.                                 Safety – Employees are required to comply
with all safety and health standards and all rules, regulations, and orders
issued pursuant to Federal and State Safety and Health Laws and all rules,
regulations, and requirements issued by the Company.  (Discipline code 1)

 

32.                                 Failure to Punch Own Time Card –
Timekeeping is the law and failure to punch your card properly is considered a
violation. (Discipline code 1)

 

33.                                 Unsatisfactory Work Performance – Anyone
whose work is unsatisfactory will be given a fair amount of time to bring their
performance up to a satisfactory

 

60

 

level. Unsatisfactory performance by an employee cannot be allowed to
continue. (Discipline code 1)

 

34.                                 Willful Littering / Poor Housekeeping – Willful littering and poor housekeeping
are a violation. (Discipline code 2)

 

35.                                 Company Telephone Use – Use of a company telephone is prohibited,
this includes the Pay Phone except during breaks and lunch, unless approved
each time by a Supervisor. (Discipline code 1 )

 

36.                                 Stopping Work Early Before Break, Lunch, End of Shift
– Stopping early without approval
of Supervisor is prohibited.  (Discipline
code 1)

 

37.                                 Entering Plant – Entering the plant or
workplace at unauthorized points or after your shift ends is prohibited unless
permission is granted by a Supervisor. (Discipline code 1)

 

38.                                 Absence Two (2) Consecutive Work Days – No Contact
With Supervisor – Any employee who is absent for two (2) consecutive
work days for any reason without notifying their Supervisor will be considered
to have voluntarily quit. Employees will not be reinstated unless absence was
for good and sufficient reason and the employee can show that he could not
contact their Supervisor. (Discipline code 4)

 

39.                                 Multiple Violations –Any combination of
infractions with Code violations that total up to 9 (except when the last
infraction was six (6) months or more since the previous infraction).
(Discipline code 4)

 

 

	
   

  	
  Example: 

  	
  2 Code 1’s =
  2

  
	
   

  	
   

  	
  2 Code 2’s =
  4

  
	
   

  	
   

  	
  1 Code
  3    = 3

  
	
   

  	
   

  	
   

  	
  9 = Code 4

  

 

40.                                 Failure to Immediately Report an On-The-Job Injury to
Supervisor – Failure to immediately report an on-the-job injury to
your Supervisor will result in disciplinary action. (Immediately means at least
the same day of injury.) (Discipline code 3)

 

41.                                 Reporting to Work After Shift has Started–An
employee that reports to work after the scheduled shift has began must notify
their Supervisor before starting work. (Discipline code 1)

 

61

 

42.                                 Tardiness – Reporting to work within the first thirty (30) minutes after
the starting time of the shift as well as the first thirty (30) minutes after
the end lunch is considered tardiness. An employee that accumulates five (5) or
more violations in a thirty (30) day period will result in disciplinary action.
Any one (1) violation after the initial five (5) will result in the next step
of discipline. (Discipline code 1)

 

43.                                 Absence – Failure to be present at work is
of two (2) types of absence–Partial and Full.

 

Partial
Absence is when a person makes themselves available for less then the last
seven and one-half (7 1⁄2) hours of a shift.

 

Full Absence
is when a person does not avail themselves for work during a scheduled shift.

 

Both absences
are serious problems, but partial absence has less impact on production
requirements than full absences. Consequently, their impact is weighed
accordingly. Each Partial Absence is a #1, and each Full Absence is a #2.
Employee must contact their Supervisor each day to report an absence before the
shift starts unless their Supervisor tells them otherwise.

 

Any
combination of absences with a weighted value of five (5) within any sixty (6)
day period will result in Code 2 discipline.

 

Only absences
caused by medical disability and substantiated by written proof from a doctor
will be excused.  The first two
consecutive work days absent for personal illness will be weighted as one
absence; all following consecutive work days will be weighted as 1 days absence
each.  All other absences, regardless of
reason, will be weighted for disciplinary purposes.

 

62

 

	
  Discipline

  Code

  	
   

  	
  1st

  Violation

  	
   

  	
  2nd

  Violation

  	
   

  	
  3rd

  Violation

  	
   

  	
  4th

  Violation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Verbal

  	
   

  	
  Written

  	
   

  	
  Written

  	
   

  	
  Discharge

  
	
   

  	
   

  	
  Warning

  	
   

  	
  Warning

  	
   

  	
  Warning

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3 day

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Suspension

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Without pay

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Written

  	
   

  	
  Written

  	
   

  	
  Discharge

  	
   

  	
   

  
	
   

  	
   

  	
  Warning

  	
   

  	
  Warning

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  3 day

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Suspension

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Without pay

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Written

  	
   

  	
  Discharge

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Warning

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3 day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suspension

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Without pay

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Discharge

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

63

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