Document:

Agreement between International Brotherhood Workers and Reptron Electronics, Inc

 Exhibit 10.8 
  
 AGREEMENT BETWEEN 
 INTERNATIONAL BROTHERHOOD OF 
 ELECTRICAL WORKERS, 
 LOCAL UNION 294 
 AND 
 HIBBING ELECTRONICS CORPORATION 
  

					
	 Art. No.

	  	Page

	 1.
	  	AGREEMENT	  	1
	 2.
	  	DEFINITIONS	  	1
	 3.
	  	PURPOSE, INTENT AND AGREEMENT EFFECT	  	1
	 4.
	  	RECOGNITION	  	2
	 5.
	  	MANAGEMENT RIGHTS	  	2
	 6.
	  	UNION MEMBERSHIP AND SECURITY	  	4
	 7.
	  	NON-DISCRIMINATION	  	5
	 8.
	  	NO STRIKE - NO LOCKOUT	  	5
	 9.
	  	WORK RULES	  	6
	 10.
	  	WORKING HOURS	  	6
	 11.
	  	SHIFT AND WORK ASSIGNMENT	  	7
	 11A
	  	JOB POSTING	  	9
	 12.
	  	HOLIDAYS	  	10
	 13.
	  	VACATION	  	11
	 14.
	  	WAGE RATES	  	13
	 15.
	  	PROBATION	  	15
	 16.
	  	SENIORITY	  	16
	 17.
	  	LAYOFF AND RECALL	  	17
	 18.
	  	ADJUSTMENT OF GRIEVANCES	  	18
	 19.
	  	ARBITRATION	  	19
	 20.
	  	DISCIPLINE AND DISCHARGE	  	20
	 21.
	  	SAFETY	  	21
	 22.
	  	LEAVE OF ABSENCE	  	22
	 23.
	  	BEREAVEMENT LEAVE	  	22
	 24.
	  	JURY DUTY	  	23
	 25.
	  	INSURANCE AND OTHER BENEFITS	  	23
	 26.
	  	SEPARABILITY	  	24
	 27.
	  	GENERAL PROVISIONS	  	25
	 28.
	  	DURATION	  	25

  
  

 ARTICLE 
 1. 
 AGREEMENT 
  
 1.1. This Agreement is made and entered into this 22nd day of September, 2000, by and between Hibbing Electronics
Corporation, located in Hibbing, Minnesota (hereinafter referred to as the “Employer”), and the International Brotherhood of Electrical Workers, Local Union 294, (hereinafter referred to as the “Union”). 
  
 1.2. The parties agree that they have bargained fully with respect to
all proper subjects of collective bargaining and have settled all such matters as set forth in this Agreement. 
  
 ARTICLE 
 2. 
 DEFINITIONS 
  
 2.1. Throughout this Agreement, the terms “he”/”she” and “his”/“her” are to be used interchangeably. Use of the terms “he” or “his” shall be regarded
as including both the masculine and feminine. Use of the terms “she” or “hers” shall be regarded as including both the feminine and the masculine. 
  
 ARTICLE 
 3. 
 PURPOSE, INTENT AND AGREEMENT EFFECT 
  
 3.1. This Agreement sets forth the entire understanding and agreement of the parties and supersedes all prior
agreements and practices, oral and written, expressed or implied, except as provided in other provisions of this Agreement. The Agreement may be modified only by mutual agreement of the Union and the Employer. Nothing in this Agreement shall be
construed as requiring either party to do or refrain from doing anything not explicitly and expressly set forth in this Agreement; nor shall either party be deemed to have agreed or promised to do or refrain from doing anything unless this Agreement
explicitly and expressly sets forth such agreement or promise. 
  
 3.2. It is agreed that the Union shall have no right to demand of the Employer anything not provided in this Agreement. It is agreed that the Employer shall have no right to demand of the Union anything not provided in this
Agreement. 
  
 It is, therefore, specifically agreed that all
bargaining obligations, unless specifically reserved in this Agreement for future negotiation, are hereby waived by the parties with respect to all matters subject to collective bargaining during the term of this Agreement. 
  

 1 

 ARTICLE 
 4. 
 RECOGNITION 
  
 4.1. The Employer recognizes the Union as the sole collective bargaining agency with respect to wages, hours of work
and other conditions of employment as specified in this Agreement for the employees within the unit certified by the National Labor Relations Board on August 2, 1994 in Case No. 18-RC-15611, as follows: 
  
 All full-time and regular part-time production and maintenance employees
employed by the Employer at its Hibbing, Minnesota facility, including electronic technicians, machine operators, mechanical technicians, maintenance non-technical employees and maintenance technical employees; excluding office clerical employees
and administrative technical employees, professional employees, support workers, tool and die technicians, administration nontechnical employees, student employees, guards and supervisors as defined in the Act. 
  
 4.2. The Union makes this Agreement in its capacity as the exclusive
collective bargaining agency of the employees identified in Section 4.1 above: The provisions of this Agreement constitute the sole procedure for the processing and settlement of any claim by an employee or the Union of a violation by the Employer
of this Agreement. 
  
 ARTICLE 
 5. 
 MANAGEMENT RIGHTS

  
 5.1. All prior management rights, authority and
functions shall remain vested exclusively in the Employer except as specifically surrendered or limited by express provisions of this Agreement. None of the provisions of this Article shall supersede any of the other provisions contained in this
Agreement. 
  
 5.2. Management rights reserved to the
Employer by this Article include, but are not limited to: the full control, management and operation of its business and its facilities; the determination and scope of its activities, services to be provided, and all methods pertaining thereto; the
scheduling of work hours, days and shifts of operations (including overtime); the location, size and number of all facilities or service areas; the determination of materials, parts, products, machinery and equipment to be acquired or utilized, and
the layout and scheduling thereof; the establishment of quality standards, the establishment of productivity standards and services to be rendered; the rights to establish, change, combine or eliminate jobs, duties, job classifications (if any) and
job descriptions; the right to establish wage rates for new or changed jobs or positions; the right to introduce new or improved procedures, methods, technologies, processes, facilities, machinery and equipment or to make other changes to promote
efficiency; the right to add, remove or change equipment; the right to maintain order and efficiency and to issue, modify and enforce rules and regulations as provided by Article 9.1; the right to lay off 
  

 2 

 employees as provided by Article 17; the right to discipline or discharge employees as provided by Article 20; the right
to contract or subcontract subject to Section 5.6 below; the determination of which facility or facilities, or part thereof, shall be operated, relocated, shut down, sold or abandoned; the right to terminate, merge, consolidate, sell or otherwise
transfer its business or any part thereof; the determination of the number of employees; the assignment of duties to employees, including the right to assign bargaining unit work to non-unit personnel as provided by Section 5.3 below; the manning of
equipment and the right to change, increase or reduce the same; the right to direct, control, assign and reassign the work force; the right to hire or refuse to hire and to be the sole judge of applicants for employment; and the right to train
employees. 
  
 5.3. The Employer and the Union agree that
non-unit personnel will be able to perform bargaining unit work in (a) emergency situations, (b) for purposes of training or to maintain their job skills and knowledge, (c) temporarily as needed to maintain an orderly flow of production or to meet
customer demands, or (d) in accordance with past practice. 
  
 5.4. If a new job is created or an old job is so changed as to constitute a new job during the term of this Agreement, the Employer will initially determine the rate for the new or changed job, put it into effect, and notify the
union. The Union shall have fifteen (15) days from the date of such notification during which it may negotiate or initiate arbitration procedures of the Agreement. The arbitrator shall have the authority to determine the wage rate for the new
position. If the problem is resolved, either by negotiation or through the arbitration procedure, and a new rate results, such rate shall become effective as of the date it was originally established. 
  
 5.5. The Employer’s failure to exercise any prerogative or
function hereby reserved to it, or the Employer’s exercise of any such prerogative or function in a particular way, shall not be considered a waiver of the Employer’s right to exercise such prerogative or function or preclude it from
exercising the same in some other way not in conflict with the express provisions of this agreement. 
  
 5.6. The Employer shall notify the Union of any decision to permanently subcontract new or existing products if the decision is made with the
intent to and also has the effect of laying off bargaining unit employees. The parties may meet in an effort to retain the products at Hibbing Electronics Corporation. In the absence of a mutual agreement, the Employer can continue with its plan to
subcontract the product. 
  

 3 

 ARTICLE 
 6. 
 UNION MEMBERSHIP AND SECURITY 
  
 6.1. The Employer agrees that for the term of this Agreement all
present employees who are members of the Union shall remain members of the Union as a condition of employment; and that all present employees who are not members of the Union shall become and remain members of the Union thirty-one (31) calendar days
on or after the later of the successful conclusion of their probationary period or the execution of this Agreement as a condition of employment; and that all new employees shall become and remain members of the Union thirty-one (31) calendar days
after the successful completion of the employee’s probationary period. 
  
 6.2. For purposes of this article, a Union member is an employee who has made current payment on that portion of Union dues attributable to the Union’s representational activities. 
  
 6.3. Effective with the date of this Agreement and upon receipt of a
voluntary written authorization from an employee, the Employer shall deduct from the authorizing employee’s wages, on a pay period basis, the dues uniformly required of all Union members. The Employer shall transmit on a monthly basis, no later
than the 15th day of the calendar month following the month in which the payroll period ends, to the financial secretary of the Union the aggregate sum collected together with an itemized list showing the names and amounts deducted from each
employee. The Union will submit to the Employer authorizations as they are obtained from the employee who has authorized the deductions. If an employee has insufficient earnings to equal the dues deduction, the deduction shall be made in the next
payroll period in which the employee has sufficient earnings. 
  
 6.4. The Union shall indemnify the Employer and hold it harmless against any and all suits, claims, demands and liabilities (including reasonable attorney’s fees) that shall arise out of or by reason of any action that shall be
taken by the Employer for the purpose of complying with the provisions of this article. 
  
 6.5. Employees transferred out of the certified bargaining unit shall be automatically dropped by the Employer from the check-off authorization rolls. The Union shall be notified of such transfers. 

 
 6.6. The amount deducted from any authorized employee’s wages
shall not exceed two (2) months’ dues. 
  
 6.7. The
Employer will fax and send to the Union office the names and addresses of all new hires within five (5) working days of the employee’s first day of work. 
  

 4 

 6.8. The Employer will permit a single Union representative to have up to two (2) hours per day,
twenty (20) hours per month, released from work on an unpaid basis to attend to Union business. The Union shall identify the person to the Company one week in advance of the requested time, and the Company has the right to decline the particular
individual requested based on production needs. 
  
 ARTICLE

 7. 
 NON-DISCRIMINATION 
  
 7.1. Neither
the Employer nor the Union will discriminate or tolerate harassment against any employee on the basis of race, religion, age, national origin, sex, disability, sexual or affectional orientation, veteran’s status or any other classification
protected by applicable federal, state or local law. 
  
 7.2.
Neither the Employer nor the Union will discriminate against any employee because of the employee’s membership or non-membership in the Union. 
  
 ARTICLE 
 8. 
 NO STRIKE - NO LOCKOUT 
  
 8.1. There shall be no lockout of Employees by the Employer during the term of this Agreement. There shall be no strike by the Union during the
term of this Agreement. 
  
 8.2. The Union shall not call
or otherwise approve in any way any concerted: strike, picketing, sympathy strike, slowdown, secondary boycott, work stoppage, sit-down strike, interruption or curtailment of work, or limitation of production or service of any kind whatsoever during
the term of this Agreement. The Employer retains all rights to take all actions necessary to remedy any violation of this Article and subsection. 
  
 8.3. The Union shall immediately disavow any conduct or acts prohibited by this Article as being in violation of this Agreement, and the Union
shall take immediate remedial action upon being notified of any such conduct or act. The Union shall notify the Employer within twenty-four (24) hours after it receives notice from the Employer of such conduct or act as to what actions it has taken
to remedy same. 
  
 8.4. An employee shall not cause or
take part in any way whatsoever in any act prohibited by this Article. An employee who engages in or causes such conduct or acts shall be subject to summary discharge or other discipline at the Employer’s discretion. The degree of discipline
imposed, including discharge, shall be solely in the Employer’s judgment and discretion and shall not be grievable; the issue of whether or not the employee engaged in or caused the act or conduct, and only that issue, is subject to review
under the grievance procedure. Discipline shall be imposed equally for the same conduct, giving due consideration to the employee’s previous activity regulated by this Article. 
  

 5 

 ARTICLE 
 9. 
 WORK RULES 
  
 9.1. The Employer shall have the right to make and enforce reasonable work rules. 
  
 9.2. The Union and the Employer expressly recognize that work rules
include, but are not limited to, parking and parking lot policies. 
  
 ARTICLE 
 10. 
 WORKING HOURS 
  
 10.1. The standard
work day shall be eight (8) or ten (10) consecutive hours, exclusive of the lunch period, and the standard work week shall be forty (40) hours per week. 
  
 10.2. Nothing in this Agreement shall be construed as a guarantee of hours of work per day or per week, or of days of work per week, for any
employee. 
  
 10.3. Each employee shall be assigned, by the
Employer, a thirty (30) minute unpaid meal period for each eight-hour work day actually worked by the employee. 
  
 10.4. The Employer shall assign a ten (10) minute rest period during the work hours before the meal period, and another ten (10) minute rest period
during the work hours after the meal period. The Employer shall further permit an additional five (5) minute rest period after eight (8) consecutive hours worked. This Section does not prevent the Employer and any employee from agreeing to an
alternative schedule for the designated rest periods relative to the meal period. 
  
 10.5. The Employer has the right to require each employee to work a reasonable amount of overtime. When there is overtime work to be performed in any classification or department, such overtime work shall be
distributed as equitably as possible among employees. Records of overtime will be maintained and kept current and shall be posted in the area. 
  
 The Employer will post overtime sign-up sheets in the team and in each building on a weekly basis to allow for volunteers to express interest in overtime
work. Qualified volunteers within the team will ordinarily be assigned available overtime first. If an insufficient number of qualified volunteers are found within the team, the Employer will ordinarily select qualified volunteers from the overtime
sign-up sheets within the buildings, taking into consideration the skills and ability to perform the overtime work. If an insufficient number of qualified volunteers are found from the team’s and buildings’ sign-up sheets, the Employer has
the right to require overtime work of other employees as provided by the Agreement. An employee who volunteers for and accepts an overtime assignment, or an employee who is otherwise assigned overtime work, and fails to report for the overtime work
as scheduled will receive either a sick or tardy attendance incident. 
  

 6 

 10.6. The Employer shall have the right to release employees from duty before the end of a
scheduled work day or work week, on a temporary basis, without pay and without respect to seniority. The Employer may ask for volunteers when reasonably practical. 
  
 ARTICLE 
 11. 
 SHIFT AND WORK ASSIGNMENT 
  
 11.1. The Employer shall have the right to establish and change the days and shifts of operation. A shift with
one-half or more of the scheduled shift between 7:00 a.m. and 3:00 p.m. shall be classified as a “First Shift.” A shift with one-half or more of the scheduled shift between 3:00 p.m. and 11:00 p.m. shall be classified as a “Second
Shift.” A shift with one-half or more of the scheduled shift between 11:00 p.m. and 7:00 a.m. shall be classified as a “Third Shift.” 
  
 (a) Regular Shift Assignment: The Employer shall have the right to establish and change shift assignments. Seniority shall be given
consideration in shift preference as provided by this section. Consistent with the ability to do the required work, including consideration of team assignment, volunteers will be the first to be assigned to any shift opening. If the number of
volunteers does not match the shift openings, then the less senior employee in the classification will be assigned to the non-preferred shift provided the employee has the skill and ability to do the required work including consideration of team
assignment. 
  

	 	(b)	Alternative Shift Schedule: Based on team recommendation and with employer approval, an alternative shift schedule within work teams may be used. An alternative shift
schedule may involve a shift assignment to a non-preferred shift. 

  
 (c) Temporary, Shift Assignment: For temporary shift assignment of two weeks or less, based on the needs of the business, the
employer will have the ability to make individual shift assignments. The employer shall use reasonable efforts to first select volunteers from within the group having the skill and ability to do the required work for the temporary shift assignment.
If an insufficient number of volunteers meeting these requirements is identified then the employer shall use reasonable efforts to rotate temporary shift assignments among employees having the skill and ability to do the required work within the
team assignment, giving due consideration to previous temporary shift assignments. 
  
 (c) Shift Staffing: Nothing in Section 11.2 shall be construed or implied to leave the employer without sufficient numbers of
employees able to perform the needed duties on a nonpreferred shift. 
  

 7 

 11.2. In making changes to shift and work assignments, including flex time, the Employer shall
give a minimum of three (3) work days’ notice, or such shorter notice period as is reasonable based upon customer demands, equipment problems or emergency situations. 
  
 11.3. The Employer and the Union expressly recognize their shared desire to provide for flexible work hours, within
reasonable terms as follows: 
  
 (a) Starting
Times: Each employee’s starting time will be determined by management based on customer requirements and considering the preferences of the team and the individual employees. An employee may request to change his or her regular scheduled start
time by up to three hours (generally within the three hours immediately in advance of the established shift start time, but between the hours of 5:00 a.m. and 8:00 a.m. for the First Shift), provided that the employee gives his or her supervisor
reasonable advance notice of the request and the reason for the request, and the supervisor approves the request in advance. The supervisor will approve if customer demands and the company’s scheduling and production needs, including but not
limited to the presence of a supervisor, can be met. The employer will make a reasonable effort to have supervisors available for changes in start time hours. 
  

(b) Mid-Shift Appointments: An employee may also request permission to leave his or her scheduled shift for a maximum of three hours
and may return to work to complete his or her scheduled shift, if work is available and a supervisor is present, without affecting his or her attendance record, but only for the following purposes: doctor or dentist appointments, court actions, or
family or medical emergencies. For purposes of this Article, “family” is defined as the employee’s spouse, child, stepchild, parent, mother-in-law, father-in-law, grandparent, or grandchild. Employees have a responsibility to try to
make appointments after scheduled work hours. An employee requesting Mid-Shift Flex Time must provide his or her supervisor with reasonable advance notice of the request and the reason for the request. The employer will make a reasonable effort to
have supervisors available for changes in schedules and to accommodate requests that comply with this provision. 
  
 11.4. The abuse of flex hours is subject to the disciplinary process, and discipline may include the loss of flex time privileges for the employee.

  
 11.5. The Employer and the Union expressly recognize
their shared desire to provide for job sharing. An employee may request to participate in the job share program when two employees perform the same job function in the same team. Both employees would arrange to share one full time job. Both
employees would work a minimum of twenty (20) hours per week. The request, including work hour arrangements must be approved by the Team Leader and the Human Resources Manager. 
  

 8 

 Employees in a job share status must remain in this status for a minimum of six (6) consecutive months.
The following benefits are effective for employees working a minimum of 20 hours per week: 
  
 Seniority: All time on job share status is accredited at 1/2 the time of regular status. 
  
 Vacation: Vacation time will accrue at 1/2 the accrual of regular status, providing the employee has one consecutive year of continuous service prior to
job share status. 
  
 Insurance: Job share employees will not be
eligible to participate in the group insurance plan (medical, dental, life and disability) due to group insurance contract eligibility. 
  
 Attendance: The number of days absent, tardy or lost time will be 1/2 that of regular status. 
  
 ARTICLE 
 11A 
 JOB POSTING 
  
 11A.1 The Employer shall post each vacancy in a bargaining unit
classification, other than production worker, that it intends to fill. For purposes of this Article, a vacancy refers to a position in a bargaining unit classification other than production worker and does not include a temporary position.

  
 11A.2 The job posting shall be open for five working
days and shall include the classification and minimum qualifications for the job. Bargaining unit employees in different classifications shall be eligible to express interest in the bargaining unit vacancy by responding to the posting within the
five day period and submitting a resume within two days thereafter. 
  
 11A.3 The Employer shall consider all qualified applicants who submit resumes for the bargaining unit vacancy. In filling the bargaining unit vacancy, the Employer shall consider the skill, ability to perform the work, experience
(including but not limited to team assignment), and job performance of the qualified applicants. If and only if those factors are equal, the Employer shall fill the bargaining unit vacancy with the most senior of the equally qualified applicants.

  
 11A.4 Employees receiving a position through the
posting process will be on probation for a period of at least three months in the new job. If the Employer is not satisfied with the employee’s performance at any time during the trial period or if during the trial period the employee elects
not to continue in the new job, the employee shall be returned without loss of seniority to his or her prior job (or, if not available, to any other open job in the bargaining unit) at the established pay for that job. Any employee who, within the
trial period, has elected not to 

  

 9 

 
continue in a job awarded under the posting system or who has been disqualified during the trial period shall be barred for a period of 12 months from
posting for any new opening for the job awarded. 
  
 ARTICLE

 12. 
 HOLIDAYS 
  
 12.1. As of the
effective date of this Agreement, the following will be recognized as paid holidays each calendar year, subject to the conditions set forth below: 
  
 New Year’s Day Memorial Day 
 Independence Day Labor Day 
 Thanksgiving Day Christmas Eve Day Christmas Day 
 One (1) Employer designated floating holiday. 
 One (1) employee designated floating holiday, to be scheduled in the same manner as a vacation day. 
  

	 	12.2.	Holidays are considered 8 regular hours worked. Employees scheduled to work the sixth or seventh day of their work week will have the 8 hours for holiday considered as regular
hours, making them eligible for overtime pay on the sixth and seventh days. 

  

	 	12.3.	Employees who satisfy eligibility requirements shall receive holiday pay as follows: 

  
 Full time employees — eight (8) hours at the employee’s straight time rate of pay. 
  
 Part time employees — six (6) hours at the employee’s straight
time rate of pay. 
  
 Part time employees working a minimum of 20
hours a week —four (4) hours straight time rate of pay. 
  
 An employee working a part-time schedule will receive holiday pay in accordance with his or her work schedule — that is a day’s holiday for an employee whose schedule of work is six (6) hours per day shall be six (6) hours.

  
 12.4. The employee must work a minimum of four (4)
hours in his or her last, regularly scheduled shift prior to the holiday, or if absent, must have: excused illness with a doctor statement, prearranged vacation time, floating holiday, or if applicable, lack of work. 
  

 10 

 12.5. The employee must work a minimum of four (4) hours in his or her next, regularly-scheduled
shift following the holiday, or if absent must have: excused illness with a doctor statement, pre-arranged vacation time, floating holiday, or if applicable, lack of work. 
  
 12.6. The employee must have successfully completed his or her probationary period to receive paid holidays.

  
 12.7. If an employee does not satisfy holiday pay
eligibility, he or she will not receive holiday pay for that particular holiday. 
  
 12.8. An employee terminating the last scheduled work shift preceding the holiday shall receive holiday pay provided he or she has given a minimum of two (2) weeks notice and he or she has unused vacation time
accrued on his or her date of termination. 
  
 ARTICLE

 13. 
 VACATION 
  

	 	13.1.	In recognition of services performed, the Employer provides annual paid vacations to all eligible employees as an opportunity for rest and relaxation. Annually, an employee may
accrue up to a maximum of 10, 15, or 20 days of vacation dependent upon the employee’s seniority date. Vacation accrual is related to the amount of time spent in actual employment during each payroll period. Eligibility is related to the
employee’s length of continuous service with the company. Vacations will be scheduled in such a way as to not hamper the normal productivity of any department. 

  

	 	13.2.	Each employee will be entitled to accrue paid vacation by the following employee status: 

  
 a. Regular, Full time. 
  
 b. Regular, Part time, working twenty (20) or more hours per week, but less than forty (40) hours. 
  
 13.3. All employees who have one (1) year or more of continuous
service as regular employees are eligible to accrue vacation according to the following schedule: 
  
 Beginning of 2nd year through 7th year: 
  
 Full time (at least 40 hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 Part Time (at least 30 hours) — accrued 2.31 hours/pay
period (7.5 full time equivalent days/year) 
  

 11 

 Part time (at least 20 hours) — accrued 1.54 hours/pay period (5 full time
equivalent days/year) 
  
 Beginning of 8th year through 15th year:

  
 Full time (at least 40 hours) - accrued 4.62
hours/pay period (15 full time equivalent days/year) 
  
 Part Time (at least 30 hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 Part time (at least 20 hours) — accrued 2.31 hours/pay period (7.5 full time equivalent days/year) 
  
 Beginning of 16th year: 
  
 Full time (at least 40 hours) — accrued 6.15 hours/pay
period (20 full time equivalent days/year) 
  
 Part time (at least 30 hours) — accrued 4.62 hours/pay period (15 full time equivalent days/year) 
  
 Part time (at least 20 hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 An employee satisfying the above criteria accrues vacation time if he or she
works fifty (50) percent or more of the scheduled work days contained in the pay period, or any combination of work, vacation, paid holiday, or jury duty which totals fifty (50) percent or more of the work days. An employee working a part-time
schedule must take vacation in accordance with his or her work schedule — that is, a day’s vacation for an employee whose schedule of work is six (6) hours per day shall be six (6) hours. 
  
 13.31. Employees working paid overtime hours shall, on a calendar year
basis, receive an additional one-half day vacation for each eighty (80) paid overtime hours in the calendar year. 
  
 13.4. Regular full time employees with less than one (1) year of continuous service from the most recent hire date will accrue ten (10) days of
vacation for the first year of service. Regular part time employees with less than one (1) year of continuous service from the most recent hire date will accrue five (5) days of vacation for the first year of service. Vacation cannot be used until
one (1) year of service is completed. After one year (1) of continuous service is completed the above schedule applies. 
  
 13.5. When an employee uses vacation time, he or she is responsible to give the supervisor the maximum notice possible for the day or days he or
she plans to take vacation time. Vacations will be scheduled in such a way as not to hamper the normal productivity of any department. Vacation time must be approved by the Supervisor prior to the vacation time to be taken. 
  

 12 

 Vacation may be taken as follows: 
  

	•	 	One day at a time with proper approval from the Supervisor. 

  

	•	 	More than one day or one week at a time with proper approval of the supervisor. 

  

	•	 	1/2 day at a time (four (4) consecutive hours) with prior notice to the Supervisor. 

  
 Vacation of four (4) hours must accompany four (4) consecutive hours of work in the same day. Vacation days must be verified by the employee
or supervisor through the Human Resources Department to ensure the vacation days have been accrued and the employee is eligible for vacation time. 
  
 13.6. Each employee can accrue vacation up to a maximum of two (2) times their annual accrual. 
  

			
	 ANNUAL ACCRUAL

	  	 MAXIMUM ACCRUAL

	 10 days/year
	  	20 days
	 15 days/year
	  	30 days
	 20 days/year
	  	40 days

  
 The Human Resources Department will
monitor each employee’s accrued vacation. Vacation time which exceeds the maximum allowable shall be forfeited. 
  
 13.7. Employees may elect to receive vacation pay in lieu of vacation days if accrued vacation time exceeds five days, up to a maximum of five paid
days in lieu of vacation once in a calendar year. Requests for vacation pay in lieu of vacation days shall be directed to the Human Resources department. 
  
 13.8. Employees involuntarily terminated (for reasons other than flagrant violation of company policy) shall be eligible to receive vacation pay in
lieu of vacation days that have been accrued at the time of termination, provided the employee has completed one (1) year of continuous service. Employees who voluntarily terminate shall be eligible to receive vacation pay in lieu of vacation days
that have been accrued at the time of termination, provided the employee has completed one (1) year of continuous service. 
  
 ARTICLE 
 14. 
 WAGE RATES 
  
 14.1. Effective the first payroll period after ratification of the Agreement, the Employer shall pay employees, at a minimum, the wages called for
by the schedule attached as Exhibit 1. 
  

 13 

 14.2. (A) Effective the first payroll period beginning more than one calendar year after
ratification, the Employer shall pay employees, at a minimum, the wages called for by the schedule attached as Exhibit 2. 
  
 (B) Effective the first payroll period beginning more than two calendar years after ratification, the Employer shall pay employees, at a minimum,
the wages called for by the schedule attached as Exhibit 3. 
  

	 	14.3.	New hires shall be placed on the schedule no lower than the starting wage for their classification; internal transfers shall receive credit for their continuous service with
the Employer in their new classification for purposes of placement on the wage schedule. 

  
 14.4. From time to time, the work load in any department may require extended or overtime work schedules in order to meet obligations of the
company. Occasionally, customer demands will warrant unscheduled overtime. Therefore, subject to the provisions of Article 10.5 of this Agreement, employees may be asked to work extended shifts without notice. The Employer compensates employees for
overtime in accordance with government regulations and as follows: 
  
 A. REGULAR WORK WEEK: 
  
 1. All time worked in excess of eight (8) but not greater than twelve (12) hours in one (1) work day, shall be compensated at time and one half. (This provision does not apply to modified work weeks or alternative shift schedules with
planned shifts exceeding eight (8) hours; in such cases, the employee shall receive additional compensation as set forth in subsection 14.5B below.) 
  
 All time worked in excess of twelve (12) hours in one (1) work day shall be compensated at double time. The double time rate shall
continue until the employee leaves work for a minimum of four (4) consecutive hours. 
  
 2. The first day following the regular work week, after forty (40) hours has been worked, shall be compensated at time and one half.

  
 3. The second day following the regular work
week, shall be compensated at double time if the employee has also worked: the first day following the regular work week. 
  
 4. Holiday — time worked shall be compensated at double time plus holiday pay. (The holiday must be one of the Employer’s paid
holidays.) 
  

 14 

 B. MODIFIED WORK WEEK/ALTERNATE SHIFT SCHEDULE: 
  
 1. All time worked in excess of the regularly scheduled
modified workweek of forty (40) hours up to forty-eight (48) hours shall be compensated at time and one half. 
  
 2. All time worked in excess of forty-eight (48) hours in a modified work week shall be compensated at double time. The double time rate
shall continue until the employee leaves work for a minimum of four (4) consecutive hours. 
  
 14.5. Employees who report to work at the Employer’s request shall receive a minimum of one (1) hour’s pay. 
  
 14.6. Employees recalled to duty shall receive a minimum of one (1) hour’s pay. 
  
 14.7. Employees working a second shift as defined by Section 11.1 will be paid a shift differential of twenty-five
(25) cents; employees working a third shift as defined by Section 11.1 will be paid a shift differential of twenty five (25) cents per hour. 
  
 14.8. Effective September 22, 1997, the parties agree to recognize the classifications of Auditor and Surface Mount/Machine Operator with the wages
set forth on Exhibits 1, 2 and 3. To receive the designated wages for the new classifications, the employee must meet the requirements of the classification as established by the Employer and be assigned to the classification (not including
temporary assignments where the employee is not regularly assigned to the classification). The Employer will make the initial assignments to the classification; future vacancies, as determined by the Employer, will be filled by the Agreement’s
job posting provisions. Upon contract ratification, present incumbents assigned to the new classifications will be allowed six (6) months to complete the certification requirements. The existence of the “Auditor” classification does not
mean that other employees do not have audit or work verification requirements in their jobs. 
  
 ARTICLE 
 15. 
 PROBATION 
  
 15.1. Each employee shall be on probation during the first ninety (90) calendar days of active employment by the Employer. 
  
 15.2. Any employee may be discharged during the probationary period for any reason whatsoever with or without cause and without recourse. The
grievance procedure (Article 18) shall not apply to any probationary employee and the discharge of any probationary employee is not grievable. 
  
 15.3. Upon satisfactory completion of the probationary period an employee shall be considered a regular employee and the employee’s seniority
shall date from the beginning of that probationary period. 
  
 15.4. If an employee is re-hired by the Employer after cessation of a prior period or periods of employment by the Employer, the employee shall be required to complete successfully 

  

 15 

 
a new probationary period and the seniority shall date from the beginning of that new probationary period. This Section 15.4 shall not apply in the case of
return from an approved leave of absence or recall from layoff, provided that the employee’s employment by the Employer had not terminated prior to the return or recall. 
  
 ARTICLE 
 16. 
 SENIORITY 
  
 16.1. Seniority shall mean the length of continuous service as an employee of the Employer. The seniority of each employee shall be computed from
the date of most recent hire, except that an employee granted leave(s) of absence pursuant to Article 22 shall not accumulate additional seniority during any period(s) of leave unless required by law. 
  

	 	16.2.	An employee who has not successfully completed the probationary period described in Article 15 shall have no seniority rights. 

  

	 	16.3.	An employee shall lose all seniority rights if the employee: 

  
 (a) Voluntarily quits; 
  
 (b) Is discharged; 
  
 (c) Is not recalled within eighteen (18) consecutive months’ of layoff (or within a period equal to the duration of his or her employment with the
Employer, whichever is shorter); 
  
 (d) Does not return to work
after layoff within five (5) working days after mailing of a written notice of recall sent by first class and certified mail, with a copy to the Union, to the last known address as recorded in his or her personnel file; 
  
 (e) Fails to return to work at the end of a leave of absence; 
  
 (f) Obtains another job while on a leave of absence without written
permission from the Employer. 
  
 16.4. The Employer shall
provide the Union with an updated seniority list on a quarterly basis. 
  
 16.5. Employees (excluding managers, team leaders and officers) who have once held positions that are now in the bargaining unit and have transferred or are transferred to a position outside the bargaining unit retain their seniority
rights within the bargaining unit as they existed at the time the employee left the bargaining unit in the event of layoff and recall. Employees shall 

  

 16 

 
not accrue additional bargaining unit seniority after leaving the bargaining unit. If the Employer elects to implement the layoff or recall of non-unit
personnel by seniority (as measured by time spent in the non-unit classification) among those employees with the job skills for the required work, the displaced non-unit personnel will have seniority rights to the classification held at the time of
the most recent transfer from the unit based on their time spent doing unit work (i.e., generally from hire date to transfer date). If the Employer elects not to implement the layoff of non-unit personnel by inverse classification seniority among
those employees with the job skills for the required work, non-unit personnel being laid off will have seniority rights within the classification held at the time of most recent transfer from the unit based on the lesser of (a) the employee’s
actual time spent doing unit work or (b) the actual time spent doing unit work by the non-unit employee who would have been displaced if inverse seniority had been used. 
  
 16.6. Employees who accept a position with the Employer outside the bargaining unit may elect to return or be
returned by the Employer to the bargaining unit within ninety (90) days of beginning work for the Employer outside the bargaining unit. 
  
 ARTICLE 
 17. 
 LAYOFF AND RECALL 
  
 17.1. Except for the right to return to bargaining unit work provided by Article 16.5, an employee has seniority rights for purposes of layoff and
recall only in the classification held at the time of layoff. For purposes of this Article, seniority shall mean the accumulated length of continuous service with the Company, and the employee’s seniority as defined in Section 16.1 shall be
applied to the classification at the time of layoff. 
  
 17.2. Layoffs shall be made based upon qualifications, job skills and seniority. Among employees with the job skills for the required work, layoffs shall be made in order of seniority as defined in Section 17.1 above, with the lowest
seniority employee in the classification being the first to be laid off. 
  
 17.3. Recall shall be made based upon demonstrated job skills and seniority. Among employees with the demonstrated job skills for the required work, recall shall be made in the inverse order of layoff within a
classification. 
  
 17.4. An employee who has not
successfully completed the probationary period shall have no rights under this Article. 
  

 17 

 ARTICLE 
 18. 
 ADJUSTMENT OF GRIEVANCES 
  
 18.1. A grievance shall be limited to a good faith complaint by an
employee that the Employer has violated or failed to apply correctly a specific provision or provisions of this Agreement, not excluded from this grievance procedure. This grievance procedure is the exclusive procedure for resolving bargaining unit
members’ complaints related to the terms and conditions of employment, provided that nothing in this Agreement limits the ability of a bargaining unit member to pursue statutory employment discrimination, workers’ compensation or
unemployment compensation claims. 
  
 18.2. Grievances
shall be handled and processed in accordance with the following procedure: 
  
 Step 1. The aggrieved employee shall take the matter up with the immediate supervisor within seven (7) calendar days after the occurrence of the event that underlies the complaint. At the request of either
party, a Union representative may be present. 
  
 Step 2.
If a satisfactory adjustment of the dispute is not reached in Step 1 above, the individual grievant and Union representative shall reduce the complaint to writing and present it to the work area supervisor within seven (7) calendar days after the
occurrence of the event that underlies the complaint. 
  
 A
meeting will be arranged to discuss the matter with a Union representative within seven (7) calendar days. The individual grievant may be present, if he or she desires, or if requested by either party. 
  
 If still unsettled, the work area supervisor will give the Employer’s
position, in writing to the Union, within seven (7) calendar days after the meeting. 
  
 Step 3. If a satisfactory adjustment of the dispute is not reached in Step 2 above, the Union may file a written request, which must be signed by the Union, to have the grievance referred to the Human Resources
Manager or other designee of the Employer within seven (7) calendar days after issuance of the answer of the work area supervisor. 
  
 A meeting will be arranged to discuss the matter with the Union within seven (7) calendar days. The individual grievant may be present, if he or she
desires, or if requested by either party. 
  
 The Human Resources
Manager or other designee will give the Employer’s position in writing to the Union within seven (7) calendar days after the meeting. 
  
 Step 4. If the matter shall not have been satisfactorily settled at Step 3 above, and the matter is one subject to arbitration, as provided for in
this Agreement, the Union may, within fourteen (14) days after receipt of the answer of the Human Resources Manager or other designee, as referred to in Step 3, demand in writing, signed by the individual grievant or grievants and the Union, to
arbitrate the grievance, pursuant to Article 19. 
  

 18 

 18.3. The failure of the Employer or its designated representative to respond to a grievance or to
give the Employer’s position within the time periods provided in this Article shall be regarded as a denial of the grievance in all respects. When the Employer responds in writing, the date of the written response shall begin the period for
Union action. If no written response is provided by the Employer, the Union can regard the denial as made on the last possible date of the Employer’s response period. 
  
 18.4. The time limits in any of the steps to the above grievance procedure may be extended only by written mutual
agreement. 
  
 18.5. A grievance settlement shall in no
case be made effective before the date on which the grievance was first presented in Step 1 of the grievance procedure. 
  
 18.6. Except as provided by this Section, Steps 2 and 4 of the grievance procedure must be signed by any individual grievant claiming a right to
relief in order to be processed in accordance with this grievance procedure. If the grievance involves more than one aggrieved individual, Steps 2 and 4 of the grievance procedure must be signed by either one-third or 10 aggrieved individuals,
whichever is less, in order for any person not signing the Step 2 and Step 4 documents to receive any monetary relief. 
  
 ARTICLE 
 19. 
 ARBITRATION 
  
 19.1. If notice of a desire to arbitrate is not given within the time limit set forth in Article 18, Section 2, Step 4, then the Employer’s
decision shall be final and binding. Such notice shall be in writing and shall describe fairly the nature of the grievance, including a description of the factual basis for the claim, identification of the provision or provisions of the Agreement
allegedly violated, and a description of the relief requested. 
  
 19.2. Only matters which come within the specific definition of a “grievance” as set forth in Article 18.1 and which have been properly processed through the regular grievance procedure as set forth herein shall be
considered. The parties shall promptly attempt to select an impartial arbitrator by mutual agreement within five (5) working days from date of notice of appeal to arbitration. In the event the Employer and the Union cannot agree on an arbitrator,
the Union shall ask the Federal Mediation and Conciliation Service to submit a panel of arbitrators, and the Employer and the Union shall each have the right to request three (3) such panels from the FMCS. The parties will select an arbitrator by
alternately striking names from the panel, with the party bringing the matter to arbitration striking the first name from such list. The arbitrator remaining shall be designated as the arbitrator to consider the matter in dispute. 
  

 19 

 19.3. The arbitrator shall have authority to decide only the issues) submitted to him or her and
shall have no authority to change, amend, modify, supplement, or otherwise alter in any respect whatsoever this Agreement or any part hereof. Any award of the arbitrator within the above limitation shall not be retro-active before the time such
grievance was presented in Step 1 of the grievance procedure. 
  
 It is expressly agreed and understood that the decision of the arbitrator shall be final and binding upon all parties. 
  
 Either party shall have the right to have a court reporter or other qualified stenographer prepare a stenographic record of any arbitration proceeding at
its own expense. 
  
 19.4. All fees and expenses incurred
for the services of the arbitrator shall be borne equally by the parties. The fees and expenses incurred by each party in the presentation of its case shall be borne solely by the party incurring the fee or expense. 
  
 19.5. If a grievance has not been heard by the selected arbitrator
within one (1) year after the date the grievance was first presented, then it shall be deemed denied and shall not be heard by the arbitrator. This section shall not apply if the hearing is delayed by the actions or unavailability of the Employer or
arbitrator. 
  
 ARTICLE 
 20. 
 DISCIPLINE AND DISCHARGE

  
 20.1. This Article does not apply to an employee
who has not completed the probationary period as defined in Article 15 of this Agreement. 
  
 20.2. The Employer may discharge or otherwise discipline an employee for just cause. 
  
 20.3. In all cases of discharge or discipline, the Employer shall notify the discharged or disciplined employee in writing of his discharge or
discipline. 
  
 20.4. In the event that the Union desires
to protest the discharge or discipline of an employee, such protest shall be filed in writing with the Employer within five (5) working days from the date the notice of discharge issues. The matter shall be taken up in accordance with the machinery
for the adjustment of grievances, commencing at Step 3. Discharge cases shall take precedence for disposition under the grievance procedure. 
  

 20 

 20.5. The Employer will fax and send a copy of all formal written discipline to the Union office
within five (5) working days. 
  
 ARTICLE 
 21. 
 SAFETY 
  
 21.1. The Employer shall take the steps that it believes are
reasonable and necessary to provide a safe workplace for employees. Among other things, the Employer shall have the right to train employees, to require use of personal protective devices and equipment, to install and require the use of devices and
equipment for safety purposes, to install and require the use of apparatus for detecting or monitoring hazards, and to make, keep and use safety records. 
  
 21.2. The Employer shall take the steps that it believes are necessary to make reasonable accommodation to any disabled employee. 
  
 21.3. The Union shall cooperate fully with the Employer in its efforts
to provide a safe workplace for employees and shall advise the Employer immediately of any and all hazards, risks and unsafe conditions in the workplace. 
  
 21.4. The Union shall take, and cooperate with the Employer in taking the steps that the Employer believes necessary to make reasonable
accommodation to any disabled employee. 
  
 21.5. The
Employer and Union shall form a joint safety committee that includes three Employer and two Union representatives, with a designated Employer representative to serve as chair. The committee shall meet at least once per month for a minimum of one
hour, and at such other times as the chair may direct. The committee shall have the ability to conduct walk-through inspections. 
  
 21.6. Every employee shall immediately report to the Employer any and all hazards, risks and unsafe conditions in the workplace. 
  
 21.7. The Employer shall have the right to adopt and implement a drug
and alcohol testing policy that complies with applicable laws, including the Minnesota drug testing law in effect as of the date of this Agreement and all subsequent changes that provide further protections to employees. The Employer shall meet and
discuss such a policy with the Union before its implementation. If the Employer and the Union do not reach agreement on the proposal, the Employer can proceed to implement its proposal, provided the same policy applies to all HECO employees at the
Hibbing facility. Regardless, either the Employer or Union may submit any unresolved issue or issues to an arbitrator, selected pursuant to Article 19, for resolution in an interest arbitration proceeding. The arbitrator’s decision shall be
effective immediately upon issuance. An employee who tests positive for the first time shall be eligible to receive any treatment benefits provided by any applicable benefit plan. Employees failing a test for the second (or more) time, or refusing
treatment after a first positive test, shall be subject to discipline up to and including discharge. 
  

 21 

 ARTICLE 
 22. 
 LEAVE OF ABSENCE 
  
 22.1. The Employer shall have the authority to adopt, maintain, modify and interpret such leave policies as are
required by applicable law, including but not limited to a Family and Medical Leave Act policy. 
  
 22.2. Unpaid leaves of absence not to exceed ninety (90) calendar days may be granted by the Employer. Any request for such a leave of absence must
be in writing to the Employer and shall state the reasons for the request. 
  
 22.3. Any employee on leave of absence must give the Employer notice in writing seven (7) calendar days before returning to work. 
  
 22.4. Any employee falsifying his reasons for a leave of absence or any employee failing to return at the expiration
of the leave of absence shall lose his or her seniority rights and shall be considered as terminated. 
  
 22.5. The Employer may grant leaves of absence of longer duration, including but not limited to when the leave is necessitated by the
employee’s disability. 
  
 22.6. Employees on unpaid
leaves of absence of two (2) weeks or less shall be entitled to return to their position. 
  
 22.7. Employees on unpaid leaves of absence exceeding two (2) weeks shall be entitled to return to any available opening for which they are qualified. If no available opening exists at the end of the unpaid
leave period, employees returning from unpaid leaves of absence shall have the recall rights provided by Article 17 of this Agreement and the right to displace probationary employees occupying positions for which they are qualified. 
  
 ARTICLE 
 23. 
 BEREAVEMENT LEAVE 
  
 23.1. The Employer shall grant bereavement leave for the death of an
employee’s close relative. 
  
 (a) For the death of a close
relative who lived within a 100 mile radius of Hibbing, a leave of up to three days shall be granted with absence on the day of the funeral paid at eight hours at the employee’s regular straight time rate (other day excused without pay); except
that for the death of a spouse, parent or child, two of the available leave days shall be paid (other days excused without pay). 
  

 22 

 (b) For the death of a close relative who lived outside the 100 mile radius, a leave of up to five days
shall be granted with absence on the day of the fimeral paid at eight hours at the employee’s regular straight time rate (other days excused without pay); except that for the death of a spouse, parent or child, two of the available leave days
shall be paid (other days excused without pay). 
  
 (c) For the
death of a close friend, a leave of up to one day for the funeral shall be granted without pay. 
  
 23.2. Close relative includes only the employee’s spouse, son, daughter, mother, father, brother, sister, brother-in-law, sister-in-law,
son-in-law, daughter-in-law, mother-in-law, father-in-law, step-parent, step-child, grandparent, grandchild, aunt, uncle, niece and nephew. 
  
 ARTICLE 
 24. 
 JURY DUTY 
  
 24.1. When an employee eligible for jury service is called and reports for such service, the employee will be reimbursed by the Employer for the
difference between the amount paid by the government for such service and the time lost from his job, up to a maximum of an employee’s regularly scheduled eight (8) hour shift at the applicable straight time hourly rate and for no more than ten
(10) working days per calendar year. In no case will premium pay or overtime pay be a consideration in arriving at the above referred to difference. 
  

	 	24.2.	Hours served on jury duty will not be counted in computing overtime hours. Hours served on jury duty will be counted for other benefit purposes to the extent permitted by
applicable laws or plan provisions. 

  
 ARTICLE

 25. 
 INSURANCE
AND OTHER BENEFITS 
  
 25.1. The Employer shall
make available health insurance and dental insurance to bargaining unit members on the same basis and subject to the same terms, amendments and eligibility requirements as other hourly employees of the Employer. The Employer shall pay seventy-five
(75) percent and the employee twenty-five (25) percent of the cost of single coverage; the Employer shall pay sixty-five (65) percent and the employee thirty-five (35)percent of the cost of family coverage. In addition, the Employer and the Union
shall create a joint committee to study and make recommendations regarding future health insurance benefits and costs. 
  

 23 

 25.2. The Employer shall make available disability insurance providing a benefit at the sixty-six
(66) percent of wage protection level to bargaining unit members on the same basis and subject to the same terms, amendments, and eligibility requirements as other hourly employees of the Employer. The Employer shall pay seventy-five (75) percent
and the employee twenty-five (25) percent of the cost of single coverage. 
  
 25.3. The Employer shall make available term life insurance providing a death benefit of ten thousand (10,000) dollars or twenty-five (25,000) dollars (depending upon compensation level) to bargaining unit
members on the same basis and subject to the same terms, amendments and eligibility requirements as other hourly employees of the Employer. The Employer shall pay seventy-five (75) percent and the employee twenty-five (25) percent of the cost of the
benefit. In addition, the Employer will undertake reasonable efforts to make available supplemental tern life insurance on a payroll deduction basis, with the cost of the supplemental term life insurance to be borne entirely by the employee.

  
 25.4. The Employer shall make available cafeteria plan
and educational reimbursement benefits to bargaining unit members on the same basis and subject to the same terms, amendments and eligibility requirements as other hourly employees of the Employer. 
  
 25.5. The Employer shall permit bargaining unit members to participate
in the existing 401 (k) plan on the same basis and subject to the same terms, amendments and eligibility requirements as other hourly employees of the Employer. Participation in the 401(k) plan shall be subject to the terms, amendments and
eligibility requirements of the actual plan. To the extent the plan or law imposes requirements not consistent with this provision, the plan or law controls. 
  
 25.6. To the extent this Article requires the Employer to alter or amend existing benefit plans or policies, the Employer is required to engage in
its best efforts to make the amendments on a timely basis. The parties, however, expressly recognize that the provisions of the law and the plans themselves control the amendment process, and may impact the timing of any changes. The parties further
acknowledge that the terms of the applicable benefit plans, to the extent different from this Article, are controlling. 
  
 ARTICLE 
 26. 
 SEPARABILITY 
  
 26.1. Should this Agreement or any part of it be rendered or declared invalid by any existing or subsequently enacted legislation or by decree of a
court of competent jurisdiction, such invalidation of such part or portion of this Agreement shall be as narrowly construed as possible and shall not invalidate the remaining portions of the Agreement, but they shall remain in full force and effect.

  

 24 

 26.2. If any part of the Agreement is rendered invalid (notwithstanding the provisions of Section
26.1), the parties agree to meet and negotiate in an effort to arrive at a replacement provision. 
  
 ARTICLE 
 27. 
 GENERAL PROVISIONS 
  
 27.1. Employees may use company telephones for personal telephone calls; however, every effort should be made to make and receive personal telephone calls during breaks and meal periods, or before and after
working hours. 
  
 Telephone extensions dedicated to the operation
of the business should not be used for personal telephone calls. Supervisors should designate the telephone(s) employees may use for personal telephone calls. Employees are asked to show courtesy to other employees by keeping the phone calls short.

  
 Any personal telephone calls coming into the company shall be
handled consistently, whether received by the company receptionist or in the employees supervisor’s office. 
  
 1) The incoming call shall be screened to determine if the call is important and time sensitive. 
  
 2) If the call is important and time sensitive, the call will be put through
to the employee. If the call is not important, the person receiving the telephone call shall take a message for the employee. The employee will be notified before the next break or meal period. 
  
 The Employer agrees to have available on premises one secure pay telephone in
Building 2 for use by employees. 
  
 27.2. The Employer
agrees, consistent with its past practice, to use any profits from employee vending machines for company functions that include bargaining unit employees. 
  
  

 25 

 ARTICLE 
 28. 
 DURATION 
  
 28.1. This Agreement shall remain in full force and effect from the date of signing until Midnight on September 22,
2003, and year to year thereafter unless sixty (60) calendar days’ notice shall be given in writing by certified mail by either party to the other party prior to Midnight of September 22, 2003 or any annual renewal date thereafter, of its
desire to amend, modify or terminate this Agreement. Notices pursuant to this Article shall be effective upon deposit in the U.S. mail and shall be given to the parties at the below designated addresses: 
  

									
	 	 	 	 	UNION:
			
	 	 	 	 	 International Brotherhood of
             Electrical Workers Local Union 294

	 	 	 	 	 Attention: Edward Jones, Business Manager

	 	 	 	 	 503 East 16th Street

	 	 	 	 	 Hibbing, MN 55746

			
	 	 	 	 	 EMPLOYER:

			
	 	 	 	 	 Hibbing Electronics Corp.

	 	 	 	 	 3125 East 14th Avenue

	 	 	 	 	 Hibbing, MN 55746-0129

				
	 	 	 	 	 	 	INTERNATIONAL BROTHERHOOD OF
	 	 	 	 	 	 	ELECTRICAL WORKERS LOCAL
			
	HIBBING ELECTRONICS CORPORATION	 	 	 	UNION 294
					
	By	 	  

	 	 	 	By	 	  

	Its	 	  

	 	 	 	Its	 	  

	Dated:	 	  

	 	 	 	Dated:	 	  

  

 26 

 Wages beginning the First Payroll Period After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	7.24	  	$	7.53	  	$	7.82	  	$	8.11	  	$	8.40	  	$	8.69
	 Auditor
	  	$	7.44	  	$	7.73	  	$	8.02	  	$	8.31	  	$	8.60	  	$	8.89
	 Machine Operator
	  	$	7.24	  	$	7.62	  	$	8.00	  	$	8.37	  	$	8.75	  	$	9.13
	 Surface Mount/Machine Operator
	  	$	7.61	  	$	8.01	  	$	8.46	  	$	8.90	  	$	9.35	  	$	9.80
	 Mechanical Tech
	  	$	8.04	  	$	8.48	  	$	8.91	  	$	9.35	  	$	9.79	  	$	10.09
	 Electronic Tech
	  	$	9.98	  	$	10.37	  	$	10.75	  	$	11.22	  	$	11.60	  	$	11.95
	 Maintenance NonTech
	  	$	7.10	  	$	7.39	  	$	7.68	  	$	8.05	  	$	8.33	  	$	8.58
	 Maintenance Tech
	  	$	8.00	  	$	8.38	  	$	8.76	  	$	9.24	  	$	9.61	  	$	9.96

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of sixty (60) cents per hour effective the first payroll period after ratification, even if they are paid
at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

 Exhibit 1 
  
 Wages beginning the First Payroll Period More Than One Year After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	7.84	  	$	8.13	  	$	8.42	  	$	8.71	  	$	9.00	  	$	9.29
	 Auditor
	  	$	8.04	  	$	8.33	  	$	8.62	  	$	8.91	  	$	9.20	  	$	9.49
	 Machine Operator
	  	$	7.84	  	$	8.22	  	$	8.60	  	$	8.97	  	$	9.35	  	$	9.73
	 Surface Mount/Machine Operator
	  	$	8.21	  	$	8.61	  	$	9.06	  	$	9.50	  	$	9.95	  	$	10.40
	 Mechanical Tech
	  	$	8.64	  	$	9.08	  	$	9.51	  	$	9.95	  	$	10.39	  	$	10.69
	 Electronic Tech
	  	$	10.58	  	$	10.97	  	$	11.35	  	$	11.82	  	$	12.20	  	$	12.55
	 Maintenance NonTech
	  	$	7.70	  	$	7.99	  	$	8.28	  	$	8.65	  	$	8.93	  	$	9.18
	 Maintenance Tech
	  	$	8.60	  	$	8.98	  	$	9.36	  	$	9.84	  	$	10.21	  	$	10.56

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of sixty (60) cents per hour effective the first payroll period more than one year after ratification,
even if they are paid at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

 Exhibit 2 
  
 Wages beginning the First Payroll Period More Than Two Years After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	8.44	  	$	8.73	  	$	9.02	  	$	9.31	  	$	9.60	  	$	9.89
	 Auditor
	  	$	8.64	  	$	8.93	  	$	9.22	  	$	9.51	  	$	9.80	  	$	10.09
	 Machine Operator
	  	$	8.44	  	$	8.82	  	$	9.20	  	$	9.57	  	$	9.95	  	$	10.33
	 Surface Mount/Machine Operator
	  	$	8.81	  	$	9.21	  	$	9.66	  	$	10.10	  	$	10.55	  	$	11.00
	 Mechanical Tech
	  	$	9.24	  	$	9.68	  	$	10.11	  	$	10.55	  	$	10.99	  	$	11.29
	 Electronic Tech
	  	$	11.18	  	$	11.57	  	$	11.95	  	$	12.42	  	$	12.80	  	$	13.15
	 Maintenance NonTech
	  	$	8.30	  	$	8.59	  	$	8.88	  	$	9.25	  	$	9.53	  	$	9.78
	 Maintenance Tech
	  	$	9.20	  	$	9.58	  	$	9.96	  	$	10.44	  	$	10.81	  	$	10.16

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of sixty (60) cents per hour effective the first payroll period more than one year after ratification,
even if they are paid at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

 Exhibit 3Amendment to Agreement between International Brotherhood Workers and Reptron

 Exhibit 10.9 
  
 AGREEMENT TO EXTEND COLLECTIVE BARGAINING AGREEMENT BETWEEN 
 K-BYTE HIBBING (“EMPLOYER”) AND THE INTERNATIONAL BROTHERHOOD 
 OF ELECTRICAL WORKERS, LOCAL UNION 294, (“UNION”). 
  
 WHEREAS, the Employer and Union are parties to an existing collective bargaining agreement (“CBA”), that took effect September 22, 2000,
and expires as of midnight on September 22, 2003; 
  
 WHEREAS, the parties mutually desire to extend the collective bargaining agreement for an additional three years through September 22, 2006 on the following terms and condition (the “Extension Agreement”); 
  
 WHEREAS, except as specifically modified by this Extension Agreement
of the parties, the existing collective bargaining agreement remains in full force and effect; 
  
 NOW THEREFORE, it is specifically agreed to, by and between the parties, as follows: 
  

	 	1.	Except as specifically modified or otherwise qualified in this Extension Agreement, the terms of the collective bargaining agreement, dated September 22, 2000, remain in full
force and effect through September 22, 2006. Following execution of the Extension Agreement, the parties will prepare a revised collective bargaining agreement containing the entirety of their agreement in one document. 

  

	 	2.	Article 6.1 of the Agreement is amended to read as follows: 

  
 The Employer agrees that for the term of this Agreement all present employees who are members of the Union shall become and remain members
of the Union as a condition of employment; and that all present employees who are not members of the Union shall become and remain members of the Union immediately on or after the later of the successful conclusion of their probationary period or
the execution of this Agreement and that all new employees shall become and remain members of the Union immediately after the successful completion of the employee’s probationary period. 
  

 1 

	 	3.	Article 12.1 of the Agreement is amended to read as follows: 

  
 As of the effective date of this Agreement, the following will be recognized as paid holidays each calendar year, subject to the
conditions set forth below: 
  

					
	 New Year’s Day
	 	 Memorial Day
	 	 
	 Independence Day
	 	 Labor Day
	 	 
	 Thanksgiving Day
	 	 Christmas Eve Day
	 	 
	 Christmas Day
	 	 	 	 

  
 Two (2) Employer
designated floating holidays. One (1) employee designated floating holiday, to be scheduled in the same manner as a vacation day. 
  
 Employees who have at least ten (10) years of continuous service will receive one (1) additional floating holiday each calendar year, to
be scheduled in the same manner as a vacation day. 
  

	 	4.	Article 13.3 of the Agreement is amended to read as follows: 

  
 All employees who have one (1) year or more of continuous service as regular employees are eligible to accrue vacation according to the
following schedule: 
  
 Beginning of 2nd year
through 6th year: 
  
 Full time (at least 40
hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 Part Time (at least 30 hours) — accrued 2.31 hours/pay period (7.5 full time equivalent days/year) 
  
 Part time (at least 20 hours) — accrued 1.54 hours/pay
period (5 full time equivalent days/year) 
  
 Beginning of 7th year through 14th year: 
  
 Full time (at least 40 hours) - accrued 4.62 hours/pay period (15 full time equivalent days/year) 
  
 Part Time (at least 30 hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 Part time (at least 20 hours) — accrued 2.31 hours/pay
period (7.5 full time equivalent days/year) 
  

 2 

 Beginning of 15th year: 
  
 Full time (at least 40 hours) — accrued 6.15 hours/pay period (20 full time equivalent days/year)

  
 Part time (at least 30 hours) — accrued
4.62 hours/pay period (15 full time equivalent days/year) 
  
 Part time (at least 20 hours) — accrued 3.08 hours/pay period (10 full time equivalent days/year) 
  
 An employee satisfying the above criteria accrues vacation time if he or she works fifty (50) percent or more of the scheduled work days
contained in the pay period, or any combination of work, vacation, paid holiday, or jury duty which totals fifty (50) percent or more of the work days. An employee working a part-time schedule must take vacation in accordance with his or her work
schedule — that is, a day’s vacation for an employee whose schedule of work is six (6) hours per day shall be six (6) hours. 
  

	 	5.	Article 14.2 of the Agreement is amended to read as follows: 

  
 (A) Effective the first payroll period beginning more than one calendar year after ratification, the Employer shall pay employees,
at a minimum, the wages called for by the schedule attached as Exhibit 2. 
  
 (B) Effective the first payroll period beginning more than two calendar years after ratification, the Employer shall pay employees, at a minimum, the wages called for by the schedule attached as Exhibit 3.

  
 (C) Effective the first payroll period
beginning more than three calendar years after ratification, the Employer shall pay employees, at a minimum, the wages called for by the schedule attached as Exhibit 4. 
  
 (D) Effective the first payroll period beginning more than four calendar years after ratification,
the Employer shall pay employees, at a minimum, the wages called for by the schedule attached as Exhibit 5. 
  
 (E) Effective the first payroll period beginning more than five calendar years after ratification, the Employer shall pay
employees, at a minimum, the wages called for by the schedule attached as Exhibit 6. 
  

 3 

	 	6.	Exhibits 4, 5 and 6 to Article 14.2 are added to the Agreement as follows: 

  
 Exhibit 4 
  
 Wages beginning the First Payroll Period More Than Three Years After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	8.74	  	$	9.03	  	$	9.32	  	$	9.61	  	$	9.90	  	$	10.19
	 Auditor
	  	$	8.94	  	$	9.23	  	$	9.52	  	$	9.81	  	$	10.10	  	$	10.39
	 Machine Operator
	  	$	8.74	  	$	9.12	  	$	9.50	  	$	9.87	  	$	10.25	  	$	10.63
	 Surface Mount/Machine Operator
	  	$	9.11	  	$	9.51	  	$	9.96	  	$	10.40	  	$	10.85	  	$	11.30
	 Mechanical Tech
	  	$	9.54	  	$	9.98	  	$	10.41	  	$	10.85	  	$	11.29	  	$	11.59
	 Electronic Tech
	  	$	11.48	  	$	11.87	  	$	12.25	  	$	12.72	  	$	13.10	  	$	13.45
	 Maintenance NonTech
	  	$	8.60	  	$	8.89	  	$	9.18	  	$	9.55	  	$	9.83	  	$	10.08
	 Maintenance Tech
	  	$	9.50	  	$	9.88	  	$	10.26	  	$	10.74	  	$	11.11	  	$	10.46

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of thirty (30) cents per hour effective the first payroll period beginning more than three calendar years
after ratification, even if they are paid at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

 4 

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

  

	•	 	If the Consumer Price Index published by the U.S. Bureau of Labor Statistics for Minnesota has increased at an average rate greater than six (6) percent per annum between September
22, 2002 and September 22, 2005, then all bargaining unit members will have their base rate increased by an additional ten (10) cents per hour for the year beginning September 22, 2005. 

  

 5 

 Exhibit 5 
  

Wages beginning the First Payroll Period More Than Four Years After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	9.04	  	$	9.33	  	$	9.62	  	$	9.91	  	$	10.20	  	$	10.49
	 Auditor
	  	$	9.24	  	$	9.53	  	$	9.82	  	$	10.11	  	$	10.40	  	$	10.69
	 Machine Operator
	  	$	9.04	  	$	9.42	  	$	9.80	  	$	10.17	  	$	10.55	  	$	10.93
	 Surface Mount/Machine Operator
	  	$	9.41	  	$	9.81	  	$	10.26	  	$	10.70	  	$	11.15	  	$	11.60
	 Mechanical Tech
	  	$	9.84	  	$	10.28	  	$	10.71	  	$	11.15	  	$	11.59	  	$	11.89
	 Electronic Tech
	  	$	11.78	  	$	12.17	  	$	12.55	  	$	13.02	  	$	13.40	  	$	13.75
	 Maintenance NonTech
	  	$	9.00	  	$	9.19	  	$	9.48	  	$	9.85	  	$	10.13	  	$	10.38
	 Maintenance Tech
	  	$	9.80	  	$	10.18	  	$	10.56	  	$	11.04	  	$	11.41	  	$	10.76

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of thirty (30) cents per hour effective the first payroll period beginning more than four calendar years
after ratification, even if they are paid at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

  

	•	 	If the Consumer Price Index published by the U.S. Bureau of Labor Statistics for Minnesota has increased at an average rate greater than six (6) percent per annum between September
22, 2002 and September 22, 2005, then all bargaining unit members will have their base rate increased by an additional ten (10) cents per hour for the year beginning September 22, 2005. 

  

 6 

 Exhibit 6 
  

Wages beginning the First Payroll Period More Than Five Years After Ratification 
  

																			
	 Job Title

	  	Start

	  	3 mos

	  	6 mos

	  	12 mos

	  	18 mos

	  	24 mos

	 Production Worker
	  	$	9.34	  	$	9.63	  	$	9.92	  	$	10.21	  	$	10.50	  	$	10.79
	 Auditor
	  	$	9.54	  	$	9.83	  	$	10.12	  	$	10.41	  	$	10.70	  	$	10.99
	 Machine Operator
	  	$	9.34	  	$	9.72	  	$	10.10	  	$	10.47	  	$	10.85	  	$	11.23
	 Surface Mount/Machine Operator
	  	$	9.71	  	$	10.11	  	$	10.56	  	$	11.00	  	$	11.45	  	$	11.90
	 Mechanical Tech
	  	$	10.14	  	$	10.58	  	$	11.01	  	$	11.45	  	$	11.89	  	$	12.19
	 Electronic Tech
	  	$	12.08	  	$	12.47	  	$	12.85	  	$	13.32	  	$	13.70	  	$	14.05
	 Maintenance NonTech
	  	$	9.30	  	$	9.49	  	$	9.78	  	$	10.15	  	$	10.43	  	$	10.68
	 Maintenance Tech
	  	$	10.10	  	$	10.48	  	$	10.86	  	$	11.34	  	$	11.71	  	$	11.06

  

	•	 	All bargaining unit members shall have their base rate increased a minimum of thirty (30) cents per hour effective the first payroll period more than five calendar years after
ratification, even if they are paid at a base rate in excess of that called for by the schedule. 

  

	•	 	Bargaining Unit employees will continue to receive five (5) cents per hour increase in the payroll period during which their anniversary date falls provided they have completed
three (3) years of continuous service. 

  

	•	 	Bargaining unit members are not eligible for profit sharing payments. 

  

	•	 	If the Consumer Price Index published by the U.S. Bureau of Labor Statistics for Minnesota has increased at an average rate greater than six (6) percent per annum between September
22, 2002 and September 22, 2005, then all bargaining unit members will have their base rate increased by an additional ten (10) cents per hour for the year beginning September 22, 2005. 

  

 7 

	 	7.	Article 28.1 is amended to read as follows: 

  
 This Agreement shall remain in full force and effect from the date of signing until Midnight on September 22, 2006, and year to year
thereafter unless sixty (60) calendar days’ notice shall be given in writing by certified mail by either party to the other party prior to Midnight of September 22, 2006 or any annual renewal date thereafter, of its desire to amend, modify or
terminate this Agreement. Notices pursuant to this Article shall be effective upon deposit in the U.S. mail and shall be given to the parties at the below designated addresses: 
  

	
	 UNION:

	
	 International Brotherhood of
             Electrical Workers Local Union 294

	 Attention: Edward Jones, Business Manager

	 503 East 16th Street

	 Hibbing, MN 55746

	
	 EMPLOYER:

	
	 Hibbing Electronics Corp.

	 3125 East 14th Avenue

	 Hibbing, MN 55746-0129

  

							
	 HIBBING ELECTRONICS CORPORATION
	 	INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL UNION 294
				
	 By
	 	  

	 	 By
	 	  

	 Its
	 	  

	 	 Its
	 	  

				
	 Dated:
	 	
	 	 Dated:
	 	

  

 8

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