Document:

exv10w6

 

Exhibit
10.6

Plant Closing Agreement

AMERIDRIVES INTERNATIONAL AND UNITED STEEL, PAPER AND

FORESTRY, RUBBER, MANUFACTURING ENERGY, ALLIED INDUSTRIAL

AND SERVICE WORKERS INTERNATIONAL UNION LOCAL 3199-10

1. This Agreement is between American Enterprises MPT, L.P., its parent, subsidiaries, affiliates,
officers, directors, agents and representatives (hereinafter referred to as “the Company” or “the
Employer”) and United Steel, Paper and Forestry, Rubber, Manufacturing Energy, Allied Industrial
and Service Workers International Union, AFL-CIO-CLC and its Local Union 3199-10 (hereinafter
referred to as “the Union”).

2. The parties have had the opportunity to discuss all issues associated with the Employer’s
decision to close the facility located at 1802 Pittsburgh Avenue, Eric Pennsylvania 16502. This
Agreement sets forth their understandings and commitments related to the closing of the facility.

3. To be eligible for the package of separation benefits provided by this Agreement, each
individual employee must be on the payroll as of September 20, 2007 and remain employed by the
Company until the termination date assigned to him/her by the Employer, the closing date or date
otherwise agreed to by the Employer and the Union. Employees who separate their employment prior to
such date will not be eligible for the severance, completion bonus or other monetary benefits as
provided in this Agreement.

4. The
Company will allow employees to volunteer for layoff as employment is reduced during the
plant close down. Approval of such requests will be based on the determination by the Company that
it will be able to cover the necessary skills and resources required to perform the work with the
remaining employees. Where there are multiple requests for voluntary layoff within a job
classification, seniority will be given preference provided the remaining employees are able to
perform the work remaining.

5. The Employer and the Union, agree that it is in the mutual interests of all parties to assure
that the closure of this facility be done in a cooperative manner and that needs of the Company’s
employees and customers are met to the best of the Company’s and employee’s abilities.

6. The Employer will not contest the unemployment compensation eligibility of employees whose
employment is terminated as a result of the plant closing and will cooperate with State of
Pennsylvania unemployment compensation representatives to facilitate the receipt of unemployment
compensation and any and all other local, state and/or federal benefits.

7. An employee who leaves active employment with the Employer, for reasons other than medical
leave, layoff, or company approval, prior to the termination date assigned to him/her by the
Employer, the closing date or date otherwise agreed to by the Employer and the Union is not
entitled to any of the separation benefits provided in this Agreement.

 

 

8. This
is the complete Agreement between the Employer and the Union related to the closure of the
Employer’s facility located at 1802 Pittsburgh Avenue, Erie Pennsylvania. If part of the Agreement
is deemed unenforceable, the parties desire that the remaining provisions of the Agreement remain
in effect. The parties agree that if any portion is deemed unenforceable the parties will meet to
negotiate a settlement for the portion(s) deemed unenforceable within fifteen (15) working days of
such knowledge.

9. Any dispute over the interpretation or application of this Agreement will be handled under the
grievance/arbitration procedure provided in the current collective bargaining agreement, or through
appropriate judicial remedies.

10. The current Collective Bargaining Agreement will remain in effect until the terms of this
Agreement are complied with. In the event the Company does not shut down its facility located at
1802 Pittsburgh Avenue, Erie Pennsylvania and terminate all bargaining unit employees, the current
Collective Bargaining Agreement dated September 20, 2004 through September 19, 2007 remains in
effect.

11. Any conflict between the current Collective Bargaining Agreement and this Agreement will result
in this Agreement being the controlling document. If the Company reverses its decision to close
this facility, this Agreement will be voided, and the Collective Bargaining Agreement dated
September 20, 2004 through September 19, 2007 will remain in effect.

12. The Company has requested and the Union and bargaining unit employees have agreed to cooperate
and to use their best efforts to effectuate a smooth relocation of production operations. For
this consideration and cooperation, the Company agrees to provide the following benefits within one
week of each employee’s date of separation from the Company:

	 	a)	 	Payment for vacation earned but not yet taken;
	 
	 	b)	 	Their final paycheck;
	 
	 	c)	 	Payment for any holidays occurring during the month of the employee’s
separation for which he or she has not already received payment.
	 
	 	d)	 	Completion Bonus as provided for in Appendix A.

13. The Company shall also pay severance pay as provided in Appendix B to all eligible employees.
Employees will have up to twelve (12) months following the date they are separated to request
payment of their severance pay. Receipt of severance pay will terminate the seniority rights of the
employee. An employee’s seniority rights will automatically terminate after twelve (12) months from
his or her date of separation and

 

 

payment of severance pay will occur following this date. The amount of severance pay an employee is
entitled to will be determined based on the date the employee is laid off, not the date the
employee requests payment of his/her severance pay.

14. The supplemental Unemployment Benefit Fund program will be discontinued as of October 1, 2007.
All monies in the SUB fund will be distributed to all employees as soon as possible.

15. All unresolved grievances still outstanding at the time of plant closing may proceed to
arbitration after the completion of a third step grievance
meeting.

16. The Company will keep the Union and all employees updated on the person(s) responsible for
benefits administration. Employees must keep the Company informed of their current mailing address.

17. The Company will work with pension administrator Prudential to facilitate
the pension calculation and retirement process for employees separated as a result of the plant
closing.

IN WITNESS WHEREOF, the Employer and the Union have signed this Closing
Agreement this:         
             
             
      day of   
           
          
                    
            
    2007.

	 	 	 
	FOR THE UNION:

	 	FOR THE COMPANY:
	 
	 	 
	/s/
[ILLEGIBLE]
	 	/s/ [ILLEGIBLE]
	 

	 	 

 

 

Exhibit A

Completion Bonus

	 	 	 	 	 
	 	 	Estimated Number of	 	 
	Anticipated Date of	 	Associates to be	 	Completion Bonus per
	Separation	 	Separated	 	Associate
	From September 2007 -
December 2007
	 	23	 	$   750
	From January 2008 -
March 2008
	 	20	 	$1,750
	From April 2008 -
December 2008 
	 	31	 	$4,250
	From January 2009 -
December 2009
	 	  0	 	$7,500

In the event an employee is laid off and subsequently returns to work, he or she shall receive the
highest completion bonus to which he or she is eligible. Any earlier paid completion bonus will be
off-set against a later paid completion bonus.

Exhibit B

Severance Package

	 	 	 
	Years of Service	 	 
	(Number of people in group)	 	Dollars per Person
	< 5 Years (14)
	 	$  2,000
	5 but < 10 Years (2)
	 	$  2,500
	10 but < 15 Years (5)
	 	$  4,500
	15 but < 20 Years (7)
	 	$  7,000
	20 but < 25 Years (40)
	 	$10,000
	25 but < 30 Years (3)
	 	$13,000
	30 + Years (3)
	 	$15,000exv10w7

 

Exhibit 10.7

	 	 	 
	
	 	

2007 — 2010

Agreement Between

Wichita Falls Facility

Warner Electric, LLP

&

International Association of Machinists & Aerospace

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

District Lodge 776

Local Lodge 2771

 Page 1 of 64

 

Table of Contents

	 	 	 	 	 
	1. Article 1 - Recognition
	 	Page 3 
	 
	 	 	 	 
	2. Article 5 - Hours of Work & Overtime
	 	Page 6
	 
	 	 	 	 
	3. Article 6 - Seniority
	 	Page 9
	 
	 	 	 	 
	4. Article 7 - Leave of Absence
	 	Page 17
	 
	 	 	 	 
	5. Article 8 - Grievance Procedures & Arbitration
	 	Page 18
	 
	 	 	 	 
	6. Article 9 - Vacation
	 	Page 21
	 
	 	 	 	 
	7. Article 10 - Holidays & Paid Personal Time Off
	 	Page 25
	 
	 	 	 	 
	8. Article 12 - Group Insurance
	 	Page 26
	 
	 	 	 	 
	9. Article 13 - Wages
	 	Page 28
	 
	 	 	 	 
	10. Article 16 - Safety & Health
	 	Page 32
	 
	 	 	 	 
	11. Article 27 - Term of Agreement
	 	Page 41
	 
	 	 	 	 
	12. Addendum
B - Job Classifications
	 	Page 42
	 
	 	 	 	 
	13. Wage Rate Structure
	 	Page 43
	 
	 	 	 	 
	14. Addendum
F - Retirement & Savings Plan
	 	Page 47
	 
	 	 	 	 
	15. Addendum G - 2nd Shift
	 	Page 49
	 
	 	 	 	 
	16. Addendum
L - Severance Pay
	 	Page 57
	 
	 	 	 	 
	17. Plant Rules & Regulations
	 	Page 58

 Page 2 of 64

 

Agreement

This agreement has been made and entered into this 13th day of August 2007, 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

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Fisher Road, Wichita Falls, TX. 76302

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.

The Company may have 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

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regulations; to introduce new job classifications, methods, materials, equipment or 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

 Page 5 of 64

 

not be construed as a
lockout.

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

 Page 6 of 64

 

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 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
11:00pm on Sunday. 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, between 2:30pm and 4:30pm for the second
shift and between 10:00pm and 12:00am for the third 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

 Page 7 of 64

 

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 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.

 Page 8 of 64

 

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 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.

 Page 9 of 64

 

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 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

 Page 10 of 64

 

	 	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 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. A permanent job vacancy will exist when a
job is expected to be needed for a period of at least sixty (60) consecutive calendar days.
	 
	 	B.	 	During the three (3) days that a job is posted, eligible bidders must contact the

 Page 11 of 64

 

	 	 	 	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.

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. This six (6) month
restriction shall be reduced to sixty (60) days only for the purposes of shift bids within the
employee’s existing job classification.

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

 Page 12 of 64

 

(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.

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.

 Page 13 of 64

 

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:

	 	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

 Page 14 of 64

 

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.

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

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that the Company is in the process of filling permanently by job posting or recall from layoff.

Helper classified employees can be temporarily transferred for a maximum of sixty (60) days 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
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.

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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

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said absence. Not more than one employee shall be granted such leave of absence at a time.

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

Page 18 of 64

 

appeal, the Chairman of the Grievance Committee shall appeal in writing and give the
grievance to the Plant Manager / Human Resources Representative or 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.

Page 19 of 64

 

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.

Page 20 of 64

 

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

Page 21 of 64

 

vacation during the calendar year at the time that they are eligible
and at a time that the Company approves.

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.)

Page 22 of 64

 

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 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

Page 23 of 64

 

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 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.

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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)

The following three (3) floating holidays have been specifically assigned for the term of this
agreement;

	 	•	 	Monday December 31st, 2007
	 
	 	•	 	Friday December 26th, 2008
	 
	 	•	 	Friday January 2nd, 2009

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 (excluding tardiness as defined in Plant Rule #42)
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 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 un-worked Holidays pursuant to
this Article shall be regarded as having worked eight (8) hours on Holiday for

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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.

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

Effective December 31, 2007 the defined benefit pension plan will be frozen and no additional years
of credited service will accrue after this date. Effective January 1, 2008 the Company will
implement an enhanced 401(k) plan as provided in Addendum F of this Agreement.

Article 12

Group Insurance

12.1 The following insurance program is provided for employees only:

	 	A.	 	Life Insurance:

	 	•	 	$50,000 – Effective September 15th, 2007 and for the life of the contract.

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	 	B.	 	Accidental Death and dismemberment:

	 	•	 	$50,000 – Effective September 15th, 2007 and for the life of the Contract

	 	C.	 	Short Term Disability Weekly Sickness and Accident (non-occupational) administered by
the National I.A.M. Benefit Trust – Pays 70% of gross weekly wages up to $350.00 per week
for maximum 26 weeks. Payable first day for accident or hospital admission; 8th day for
illness.

12.2 For Employees and Dependents:

The National I.A.M. Benefit Trust Fund will administer Health, Rx, Dental and Vision Insurance
effective November 1st, 2007. The details of the entire program of insurance benefits will be set
forth in Plan Summary booklets to be issued to covered employees by The National I.A.M. Benefit
Trust.

12.3 Employee Weekly Contribution Rates for Healthcare, Rx, Dental and Vision

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year 1	 	Year 2	 	Year 3
	 	 	(Nov 1, 2007)	 	(Nov 1, 2008)	 	(Nov 1, 2009)
	 	 	 
	Employee
	 	$	25.50	 	 	$	27.50	 	 	$	29.50	 
	Employee + Spouse
	 	$	55.50	 	 	$	58.50	 	 	$	62.50	 
	Employee + Child
	 	$	50.50	 	 	$	53.50	 	 	$	56.50	 
	Family
	 	$	74.50	 	 	$	79.50	 	 	$	85.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Plan Type
	 	IAM H001	 	IAM H001	 	IAM H001

The Union agrees that if the annual premiums exceed a 5% increase, the Company has the right to
re-open the insurance provision upon written 30 day notice sent by registered or certified mail to
the Union. The parties agree that in the event of an impasse in bargaining and written notice to
the Union of the Employer’s intention to implement a change to the medical plan or employee
contribution that article 3, no strike no lockout provision of the agree shall also be opened. The
rest of the agreement shall remain in full force and effect.

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Retail Prescription Drug Employee Co-Pay covered at pharmacy – 34-day supply

	 	 	 	 	 
	 	 	Effective
	 	 	November 1, 2007
	Generic

	 	$	10.00	 
	Preferred

	 	$	20.00	 
	Non-Preferred

	 	$	30.00	 

Mail Order Prescription Drug Employee Co-Pay mail order program – 90-day supply

	 	 	 	 	 
	 	 	Effective
	 	 	November 1, 2007
	Generic

	 	$	20.00	 
	Preferred

	 	$	30.00	 
	Non-Preferred

	 	$	40.00	 

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:

	 	•	 	+2.50% Increase per hour effective August 11, 2007
	 
	 	•	 	Lump sum payment equal to 3.5% of base annual wage effective August 11, 2008

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	 	•	 	+2.50% Increase per hour effective August 10, 2009

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
twenty cents ($.20c) for every three (3) months until the maximum is reached. If twenty cents
($.20c) 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.

Page 29 of 64

 

13.5 Successful Bidder. Employees who successfully bid on vacancies in higher rated
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 brother in-law, current sister 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) hours of straight-time 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

Page 30 of 64

 

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 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 Company shop.

Page 31 of 64

 

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.

Page 32 of 64

 

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.

Page 33 of 64

 

The Company and the
Union agree to cooperate in every reasonable 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 thirty (30) days 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 $100.00
per calendar year or up to $200.00 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

Page 34 of 64

 

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 outside

Page 35 of 64

 

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.

Page 36 of 64

 

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

MEMBERSHIP APPLICATION AND/OR CHECK-OFF AUTHORIZATION

	 	 	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	Date
	 	 	 	Card no.	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	Address

	 	 	 	M o F o Date of birth	 	 
	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	City

	 	 	 	State/Province
	 	 	 	Zip/Postal code	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SS no.

	 	 	 	Email
	 	 	 	Phone
	 	 	 	Hire date	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	Employer

	 	 	 	Hourly wage	 	 
	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Class of work

	 	 	 	Years experience
	 	 	 	Shift 1 o 2 o 3 o
	 

	 	 
	 	 	 	 	 	 

 

Membership
Application. Check here: o To
the Officers and Members of Lodge No.
          (the “Lodge” or
“Union”), I hereby tender my application for membership in
the International Association of Machinists and Aerospace Workers (IAM). I
understand that while I may be required to tender monthly fees to the Union, I am not required to
apply for membership or be a member as a condition of employment and that this application for
membership is voluntary. As a member, I agree to obey the Constitution of the IAM and the by-laws
of my Lodge and to support the principles of trade unionism, and I authorize the IAM and/or its
designated affiliate to act as my representative for collective bargaining.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	If former member of IAM: Card no.

	 	 	 	Lodge no.
	 	 	 	Location
	 	 	 	Last dues paid	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

Check-Off Authorization. Check here: o I authorize my Employer to deduct from my wages and forward
to the Union: (1) monthly membership dues or an equivalent service fee; and (2) any required
initiation or reinstatement fee as set forth in the collective bargaining agreement between the
Employer and the Union and the by-laws of the Lodge. This authorization shall be irrevocable for
one (1) year or until the termination of the collective bargaining agreement between my Employer
and the Union, whichever occurs sooner. I agree that this authorization shall be automatically
renewed for successive one (1) year periods or until the termination of the collective bargaining
agreement, whichever is the lesser, unless I revoke it by giving written notice to my Employer and
Union not more than twenty (20) and not less than five (5) days prior to the expiration of the
appropriate yearly period or contract term. I expressly agree that this authorization is
independent of, and not a quid pro quo, for union membership, but recognizes the value of the
services provided to me by the Union. It shall continue in full force and effect even if I resign
my Union membership, except if properly revoked in the manner prescribed above.

 

Important
Notice. I have examined and acknowledge receipt of the attached “Notice to Employees
Subject to Union Security Clauses” (on back of pink sheet). I also understand that IAM members
have certain rights and privileges as set forth in the IAM Constitution and in various Federal
laws, like the Labor Management Reporting and Disclosure Act (LMRDA). Copies of the IAM
Constitution and the LMRDA may be obtained by contacting the IAM General Secretary-Treasurer, 9000
Machinists Place, Upper Marlboro, MD 20772. Union membership dues and agency fees are not
deductible as charitable contributions for Federal income tax purposes. Dues and agency fees,
however, may be deductible in limited circumstances subject to various restrictions imposed by
the Internal Revenue Code.

	 	 	 	 	 
	 

	 	 

          (Your signature)                         (Date)
	 	 

This
copy to be retained by Local Union No.                     

FORM NO. MR0001-06

 

For
Official Use Only

	 	 	 	 	 	 	 
	Proposed by

	 	 	 	Date	 	 
	 

	 	 
	 	 	 	 

	 	 	 
	We, the undersigned Committee, report
	 	 
	 

	 	 
	 

	 	(Favorable or Unfavorable)

	 	 	 	 	 
	 

	 	Committee:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 
	Amount paid $

	 	 	 	Date	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Balance of Fee Paid $

	 	 	 	Date	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Initiated o

	 	Reinstated o
	 	Date	 	 
	 

	 	 	 	 	 	 

	 	 	 
	Classification
	 	Gender

	 	 	 	 	 
	                     Journeyman

                     Specialist

                     Production Worker

                    
Service Worker

	 	                     Helper

                     Apprentice

                     Technician
	 	                     Male

                      Female

Page 37 of 64

 

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.

Page 38 of 64

 

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 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.

In the event that any provision of this Agreement shall be declared void or illegal by a court

Page 39 of 64

 

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.

Page 40 of 64

 

Article 27

Term of Agreement

This Agreement shall remain in full force and effect until August 13, 2010 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 13, 2010 or any
subsequent annual expiration date.

FOR THE UNION:

	 	 	 
	 

Paul Black

	 	 
	IAM Business Representative
	 	 
	 
	 	 
	 

Bill Land

	 	 
	Chief Steward IAM
	 	 
	 
	 	 
	 

David Thames

	 	 
	Negotiating Committee IAM
	 	 
	 
	 	 
	FOR THE COMPANY:
	 	 
	 
	 	 
	 

Mark Stuebe

	 	 
	V.P. & General Manager — Wichita Clutch
	 	 
	 
	 	 
	 

Tim McGowan

	 	 
	V.P., Human Resources – Altra Industrial Motion
	 	 
	 
	 	 
	 

Eric Michaeli

	 	 
	Plant Manager – Wichita Clutch
	 	 
	 
	 	 
	 

Jennifer Ireland

	 	 
	HR Manager – Altra Industrial Motion
	 	 

Page 41 of 64

 

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	 

Page 42 of 64

 

Rate Structure

Effective August 11, 2007

	 	 	 	 	 
	Grade	 	Minimum	 	Maximum
	10

	 	$21.43
	 	$21.43
	9
	 	$20.02
	 	$20.02
	8
	 	$17.31
	 	$18.62
	7
	 	$16.66
	 	$17.78
	6
	 	$15.59
	 	$16.59
	5
	 	$14.45
	 	$15.25
	4
	 	$13.46
	 	$14.13
	3
	 	$13.07
	 	$13.54
	2
	 	$11.85
	 	$12.69

Effective August 11, 2008

	 	 	 	 	 
	Grade	 	Minimum	 	Maximum
	10
	 	$21.43
	 	$21.43
	9
	 	$20.02
	 	$20.02
	8
	 	$17.31
	 	$18.62
	7
	 	$16.66
	 	$17.78
	6
	 	$15.59
	 	$16.59
	5
	 	$14.45
	 	$15.25
	4
	 	$13.46
	 	$14.13
	3
	 	$13.07
	 	$13.54
	2
	 	$11.85
	 	$12.69

Effective August 10, 2009

	 	 	 	 	 
	Grade	 	Minimum	 	Maximum
	10
	 	$21.97
	 	$21.97
	9
	 	$20.52
	 	$20.52
	8
	 	$17.74
	 	$19.09
	7
	 	$17.08
	 	$18.22
	6
	 	$15.98
	 	$17.00
	5
	 	$14.81
	 	$15.63
	4
	 	$13.80
	 	$14.48
	3
	 	$13.40
	 	$13.88
	2
	 	$12.15
	 	$13.01

Page 43 of 64

 

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

Vice President & General Manager

Wichita Clutch

Page 44 of 64

 

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

Vice President & General Manager

Wichita Clutch

Page 45 of 64

 

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

Vice President & General Manager

Wichita Clutch

Page 46 of 64

 

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 January 1st, 2008 the Company will match 50% up to the first 6% of the
employee’s pre-tax contribution into the 401k plan.

All employee’s covered under this collective bargaining agreement and actively employed as of
January 1st, 2008 will receive a one time contribution of one thousand ($1,000) dollars
plus an additional one hundred ($100) for each full year of service as of January 1st,
2008 into their individual 401k account.

INVESTMENT OPTIONS: The Company will arrange for a choice of investment options

Page 47 of 64

 

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 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.

Page 48 of 64

 

\

Addendum G

8-9-04

Letter of Intent

2nd Shift

This agreement has been made and entered into this 13th Day of August, 2007, 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

Page 49 of 64

 

	 	 	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.

Page 50 of 64

 

	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 ten (10) hour increments.

	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)

The following three (3) floating holidays have been specifically assigned for the term of this
agreement;

	 	•	 	Monday December 31st, 2007
	 
	 	•	 	Friday December 26th, 2008
	 
	 	•	 	Friday January 2nd, 2009

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PPTO hours taken by second shift employees can be taken in five (5) or ten (10) 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 PPTO days.

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 five (5)
or ten (10) hour increments.

Article 12

GROUP INSURANCE

Short Term Disability Weekly Sickness and Accident (non-occupational) administered by the National
I.A.M. Benefit Trust — Pays 70% of gross weekly wages up to $350.00 per week for maximum 26 weeks.
Payable first day for accident or hospital admission; 8th day for illness.

Second shift employees will have the weekly sickness and accident payment of 70% of gross wages up
to $350.00 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 $350.00
for each of the four (4) days he/she is out, Monday through Thursday.

Article 13

WAGES

For the term of this agreement all holiday pay, PPTO time, Jury Duty and Bereavement leave shall be
paid at 10 hours per day at the employee’s regular straight-time hourly rate of pay.

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Bereavement Pay

Bereavement hours taken by second shift employees will be taken in ten (10) 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 ten (10) 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 13, 2010. 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.

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Addendum H

8-7-07

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 $32.00 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

Vice President & General Manager

Wichita Clutch

Page 54 of 64

 

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

Vice President & General Manager

Wichita Clutch

Page 55 of 64

 

Addendum K

8-7-07

Letter of Intent

Light Duty

The Company’s practice is to actively seek light duty assignments for employees who are not able to
perform their regular job duties due to work place injuries.

Mark J. Stuebe

Vice President & General Manager

Wichita Clutch

Page 56 of 64

 

Addendum L

8-7-07

Severance Pay

In the event of the closing of the Plant, the Company will pay severance to all employees whose
employment is terminated due to the plant closing based on the following schedule;

	 	•	 	0 to 5 years of service — 2 weeks straight-time pay
	 
	 	•	 	6 to 10 years of service — 5 weeks straight-time pay
	 
	 	•	 	11 to 15 years of service — 10 weeks straight-time pay
	 
	 	•	 	16 to 20 years of service — 15 weeks straight-time pay
	 
	 	•	 	21 or more years of service — 20 weeks straight-time pay

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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.

     In all possible cases, the Company shall issue disciplinary notices within five (5) working
days following the completion of its investigation; extensions can be made by mutual agreement
between the Company and the Union.

	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)

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	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)

	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)

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	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)

	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)

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

	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)

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	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 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

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	 	 	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)

	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 day’s
absence each. All other absences, regardless of reason, will be weighted for disciplinary
purposes.

	44.	 	Unauthorized Overtime — Exceeding the maximum number of overtime hours scheduled by
supervision without authorization is prohibited. (Discipline code 2) (added January 8, 2007)

Page 63 of 64

 

	45.	 	Leaving Company Property — Failure to punch out before leaving Company property while not on
Company business is prohibited. (Discipline code 2) (added January 8, 2007).

	 	 	 	 	 	 	 	 	 
	Discipline	 	1st	 	2nd	 	3rd	 	4th
	Code	 	Violation	 	Violation	 	Violation	 	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	 	 	 	 	 	 

Page 64 of 64

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