Document:

Exhibit 10.18

 

AGREEMENT

 

 

between

 

TYSON BEARING COMPANY, INC.

GLASGOW, KY

 

 

and the

 

UNITED STEEL WORKERS

OF AMERICA

 

 

ON BEHALF OF ITSELF

AND
THE MEMBERS OF

 

LOCAL UNION N o . 7461 - 01

 

 

March 26, 2005

 

To

 

June 13, 2008

 

 

INDEX

 

	
  Article

  	
   

  
	
   

  	
   

  	
   

  
	
  I

  	
  Agreement

  	
   

  
	
  II

  	
  Rights &
  Functions of Management

  	
   

  
	
  III

  	
  Union Recognition

  	
   

  
	
  IV

  	
  Strikes &
  Lockouts

  	
   

  
	
  V

  	
  Holidays

  	
   

  
	
  VI

  	
  Job Evaluation Plan

  	
   

  
	
  VII

  	
  Production
  Standards & Incentive Pay

  	
   

  
	
  VIII

  	
  Safety & Health

  	
   

  
	
  IX

  	
  Plant Rules

  	
   

  
	
  X

  	
  Jury duty, Funeral
  Leave & Military Reserve Pay

  	
   

  
	
  XI

  	
  Foreman’s Work

  	
   

  
	
  XII

  	
  Union Bulletin Board

  	
   

  
	
  XIII

  	
  Leaves of Absence

  	
   

  
	
  XIV

  	
  Wages

  	
   

  
	
  XV

  	
  Insurance & Pension
  Benefits

  	
   

  
	
  XVI

  	
  Union & Management
  Cooperation

  	
   

  
	
  XVII

  	
  Vacations

  	
   

  
	
  XVIII

  	
  Seniority

  	
   

  
	
   

  	
  Filling
  Permanent Job Vacancies

  	
   

  
	
   

  	
  Reduction of Work
  Force

  	
   

  
	
  XIX

  	
  Hours of Work

  	
   

  
	
  XX

  	
  Settlement of Differences

  	
   

  
	
  XXI

  	
  Check Off

  	
   

  
	
  XXII

  	
  Sub-Contracting

  	
   

  
	
  XXIII

  	
  Termination &
  Notice

  	
   

  
	
  Appendix A

  	
   

  
	
  Appendix B

  	
   

  
	
  Memo of Agreement
  (RBC)

  	
   

  
	
  Memo of
  Understanding (Ins. Opt-Out)

  	
   

  
	
  Memo of Agreement
  (Vacation & Wages)

  	
   

  

 

 

ARTICLE I

 

Agreement

 

Section 1.  This Agreement dated the twenty-fifth day of March, 2005 is entered into between Tyson Bearing Company, Inc., Glasgow,
KY (hereinafter referred to as the “Company”), and the United Steelworkers of
America, AFL-CIO (hereinafter referred to as the “Union”) on behalf of itself
and the members of Local Union No. 7461-01.

 

a.             In
the event all or substantially all of the assets of Tyson Bearing Company, Inc.
are sold, the purchaser thereof shall be deemed to be a successor employer
bound to all the terms and conditions of the Collective Bargaining Agreement,
dated this thirtieth day of March, 2002. 
Tyson Bearing shall assure the purchaser accepts above before the sale
takes place.

 

Section 2.  In consideration of this Agreement, the
parties agree that it is the intent and purpose of the parties hereto that this
Agreement is the complete Agreement covering rates of pay, hours of work and
working conditions to be observed between the parties, and to provide orderly
relationships between the Company and the Union, and to secure prompt
disposition of differences between the parties pertaining to the compliance
with or application of this Agreement.

 

Section 3.  In recognition of its responsibility as the
exclusive agent of the employees, the Union agrees that it will cooperate in
discouraging absenteeism and tardiness, and that it will support proper Company
efforts to eliminate waste, improve quality, prevent accidents, and strengthen
good will between the Company and the Union. 
The Union also confirms that it subscribes to the concept of a fair day’s
work for a fair day’s pay.

 

Section 4.  Employees are obligated to keep the Company
informed regarding their correct address and telephone number.  Employees must also keep the Company informed
regarding their marital status and dependents to be eligible for benefits.

 

Section 5.  It is the policy of the Company not to
discriminate against any employee or applicant for employment because of race,
creed, color, national origin, age, sex, religion, disabled veterans and
handicapped status, or union affiliation.

 

Section 6.  Any reference made
to he should read he/she.  Any reference
made to his should read his/her.  Any
reference made to himself should read himself/herself.

 

 

ARTICLE II

 

Rights and Functions of Management

 

Section 1.  The Union recognizes that the control of all
matters relative to the management and operation of the Plant and the operation
of the Company’s business shall be vested exclusively in the Company, except as
these matters may be expressly limited by the terms of the Agreement.

 

ARTICLE III

 

Union Recognition

 

Section 1.  The Company recognizes the Union as the sole
collective bargaining agency with respect to rates of pay, hours of work and
conditions of employment for all production and maintenance employees employed
by the Company at its Glasgow, Kentucky plant, but excluding all office
clerical employees, professional and technical employees, guards and
supervisors as defined in the act.

 

Section 2.  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 Company of this Agreement.  As the representative of the employees, the
Union may process grievances through the grievance procedure, including
arbitration, in accordance with the Agreement or adjust or settle the same.

 

Section 3.  All employees, except those excluded from
this Agreement as defined in Section 1. above, shall, as a condition of
continued employment, be members of the Union in good standing.  All new employees shall become members of the
Union on the 60th day following the beginning of their employment.

 

Section 4.  Inter-Plant
Transfer.  In the event that
the Company finds it necessary to transfer equipment to any other Company
production facility, either presently existing or which may come into existence
in the future, and such transfer of equipment results in a layoff of employees
having two or more years of service in our Bargaining Unit, and also generates
a job vacancy in the other plant, employees laid off from our Bargaining Unit
shall have the right to apply for and be transferred to such plant.

 

However, if the plant to which the equipment was transferred is covered
by a collective bargaining agreement and/or a bidding procedure, the eligible
applicant’s rights shall be subject to the provisions of the collective
bargaining agreement and/or the bidding procedure in existence at the other plant.  Any employee who transfers

 

 

to a job in another plant under the terms of the agreement shall retain
his previous Company service for computing vacation and pension benefits, but
he/she shall be subject to the wages, hours, benefits, and working conditions
in existence in the other plant.  Any
employee who transfers voluntarily under the contract will have recall rights
for two years.

 

Section 5.  The Human Resources Department will give each
new employee when hired a copy of the Labor Agreement.

 

Section 6.  With appropriate notice, the Company will
permit plant visitation rights to the District Director and the International
Representative of U.S.W. District 8.

 

ARTICLE IV

 

Strikes and Lockouts

 

Section 1.  The Union agrees that there shall be no
strikes, work stoppages, interruption or impeding of work.  No officer or representative of the Union
shall authorize, instigate, aid or condone any such activities.  No employee shall participate in any such
activities.  Any violation of this section by
any employee shall be cause for dismissal or suspension.

 

Section 2.  The Company agrees that there shall be no
lockouts from the Company’s Plant.

 

ARTICLE V

 

Holidays

 

Section 1.  During the work year, there are fourteen (14)
full holidays which are observed in our plant. 
These are:

New Year’s Day

Good Friday

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

 

 

Day after Thanksgiving

Day before Christmas

Christmas Day

Day before New Year’s Day

Three (3) Floating Holidays at Year’s end

 

Floating Holiday (any Monday or Friday during the calendar year which
is celebrated as or tied in with a nationally observed holiday.  The Union will notify the Company by January 15
of the effective date).

 

Section 2.  Holidays generally start with the third shift
at 11:00 P.M. on the day before the holiday or the day before the holiday
is observed.  Holidays which fall on
Sunday shall be celebrated on Monday. 
Holidays which fall on Saturday shall be observed on Friday.  Employees will be paid for these days as any
other holiday.

 

Section 3.  Holiday
Eligibility.  To be eligible
to receive pay for any of these holidays, you must:

 

a.                                       Complete sixty
(60) calendar days of service prior to the holiday.

 

b.                                      Work all the
scheduled straight-time hours on the last scheduled work day before the holiday
and on the next regular work day following the holiday or have an excused
absence.  Excused absence shall mean
absence previously approved by the Company, or sickness supported by a doctor’s
statement.

 

Section 4.  Holiday
Pay.

 

a.                                       Eligible
employees not working on an observed holiday will receive eight hours pay at
their straight time rate.

 

b.                                      Eligible
employees required to work on one of the above holidays will receive double
time for all hours worked in addition to the holiday pay.

 

Section 5.  When a paid holiday falls within an employee’s
scheduled vacation, he/she shall receive an extra day off at his/her discretion
with one week’s notice or receive eight (8) hours additional pay for the
holiday.  If the holiday falls during a
plant vacation shutdown, that holiday will be scheduled by the Company.  The Company will notify the Union by May 31
of each contract year whether or not the holiday during the plant shutdown will
be scheduled immediately prior to or after the shutdown, or whether the holiday
may be used at the employee’s discretion with five (5) day’s notice.

 

Section 6.  If an employee is
absent on the day before or the day after a

 

 

scheduled holiday and is not paid for that holiday per terms in Article V,
Section 3.b., his/her absence will not be recorded for disciplinary
purposes.

 

Section 7.  It is agreed that
employees on a four-shift operation will celebrate all regularly scheduled
holidays.  Actual time off will be
determined by the Company and the Union prior to the holiday, taking into
consideration a canvass of employees on the shift two weeks prior to the
holiday.

 

Section 8.  Work schedules for
weeks wherein paid holidays occur, may be changed by mutual agreement between
the Company and the Union.  This involves
the right to waive other provisions of this Agreement in order to accomplish
such changes.

 

ARTICLE VI

 

Job Evaluation Plan

 

Section 1.  Jobs have been
classified in their work grades by the Company, using the National Metal Trades
Association’s Job Evaluation Plan.  Job
descriptions, labor grades, and rates of pay have been prepared and are in
effect for all present jobs.  When
conditions warrant such action, the Company will establish new job
classifications, change, or add to and remove jobs or job descriptions.  When new jobs are established, or changes or
additions made to existing jobs, new job descriptions will be drawn and
evaluated by the Company in accordance with the NMTA Job Evaluation Plan.

 

Section 2.  All job rates of pay
in effect at the time this Agreement is effective shall not be subject to
process under the grievance procedure section of this contract.  Any new or changed job or job rate may be
subject to processing under Article XX, Settlement of Differences.  Such processing shall be confined to the
result of the application of the NMTA Job Evaluation Plan.  The plan itself shall not be subject to processing
under Article XX, Settlement of Differences, nor shall it be, in any
manner or detail, subject to arbitration under this Agreement.

 

Section 3.  Rates of pay and the effective dates thereof
are listed for each of the labor grades outlined in this agreement.

 

Section 4.  The following method will be used in
determining the work grade to be assigned to a job:

 

The job will be analyzed and reviewed by the Company’s Job Analyst who
will write up a description of the general details considered

 

 

necessary to describe the principal functions of the job identified,
which description shall not be construed as a detailed description of all of
the work requirements that may be inherent in any given job.  A copy of all job descriptions shall be made
available to the Union’s Job Evaluation Representatives for their inspection
and review.  The Company shall pay the
Union Representatives at their labor grade for all hours spent in joint
evaluation with the Company Job Evaluation Representatives.

 

Section 5.  If the Union feels that the complement of
machines to which an employee is assigned is not reflected adequately in his
labor grade, the Union may submit this case to a job evaluation committee
composed of Union and Company representatives.

 

Section 6.  The Company may combine jobs within a group.  If jobs are to be combined across groups, the
Union must agree before such a combination may occur.  If there is agreement on combining jobs
across groups, employees having bidding and recall rights to the jobs which are
combined will continue to have such rights on the new job no matter in which
group it is placed.

 

ARTICLE VII

 

Production Standards and Incentive Pay

 

Section 1.  It is understood that the Company will make,
at any time, motion time or methods studies required for the efficient operation
of its business, and may establish standards and levels of performance, and may
audit its standards when it deems this to be necessary in the interest of
business.  The right of the Company shall
be unrestricted as to whether or not it desires to utilize an individual or
group incentive payment basis.

 

Effective
March 28, 2005, the gain-sharing plan implemented 6/1/02 will be
discontinued.  Employees will be paid an
additional $.50, per hour, in place of the plan.  This shall be added to the hourly wage and
all provisions of the Contract shall apply to such.

 

a.                             The Company will provide
training so that the Union will have two qualified Time Study Representatives
available.  However, in no case will more
than one Union Time Study Representative be recognized by the Company for
purposes of Union-Company business.  The
Company shall provide a yearly refresher course in the Company’s method of time
study.

 

b.                            Labor reporting by
employees will not be changed arbitrarily by foremen.  If any changes are made, the employee will
receive a copy of the changes on the next week day after the change.

 

Section 2.  Once a production standard has been
established, the equity of such a standard may be challenged under the
procedure set forth in Article XX, Settlement of Differences.  Should the Union dispute the equity or
fairness of a production standard, the

 

 

Company will review with a
proper union steward, upon his/her request, the data relating to the production
standard.

 

Section 3.  A production standard may be changed whenever
a substantial and continuing change in material method, specifications, or
equipment, or an accumulation of such changes, or an obvious clerical error or
mechanical error has occurred, that has a substantial effect on the
productivity of the job.

 

Section 4.  It is recognized that the Company has the
right to institute incentive standards, with the understanding that such
incentive standards shall be set in such a manner so that qualified operators
working at a normal pace can produce quality work 100% of standard.

 

The equity of any standard shall be subject to the grievance procedure
and the data shall be made available for review by a designated local Union
official or any International Time Study Representative.

 

Section 5.  A production standard, after an appropriate
trial period, may be subject to a check study. 
During the check study, either the proper steward or the Union Time
Study Representative shall be present to observe the check study.  When the Company representative and the steward
agree that normal performance is being given and the check study proves less
than 100% of the unit time allowed, that unit time allowed will be removed
immediately.  In the event of such
action, employees involved will be paid their applicable job rate.  This payment will be effective from the time
the employee or employees started the particular lot on which the check study
was completed.  This check study will be
made within 45 days after the rate is set.

 

Section 6.   Employees working on jobs designated as
incentive jobs will be paid as follows:

 

a.                                       Time used on
rated work will be credited in accordance with the U.T.A.

 

b.                                      It is understood
that since employees are guaranteed their job rate on a weekly basis, they will
be expected to maintain an efficiency of at least 100%.

 

c.                                       Abuses of the
use of downtime such as prolonging it or creating it will not be tolerated.

 

d.                                      For the special
conditions listed below, the employee will be credited as specified:

 

1.                                       Instruction:

 

When an employee at the direction of a foreman instructs one or more
employees, he/she (the instructor) shall receive two labor grades higher than
his/her own labor grade.

 

Unit times allowed are not applicable when this method of pay is used.

 

 

2.             Experimental Work:

When an employee is assigned to perform experimental work as designed
by his/her supervisor, he/she shall receive two labor grades higher than
his/her own labor grade.

 

3,                                       Incentive
workers in labor grades 11 and 12 will receive two labor grades higher for
instruction and experimental work.

 

(Pay will be based on two (2) times the labor grade differential
between labor grades 11 and 12.)

 

Section 7.  Whenever rates are initially established in
any department or area, the employees involved will be guaranteed no less than
100% for any day in which they encounter rate problems beyond their
control.  Such guarantee will be
effective for a period of four weeks from origin of installation.

 

Section 8.  It is agreed that incentive earnings as a
portion of gross income will be designated in the employees’ weekly pay
statement.

 

ARTICLE VIII

 

Safety and Health

 

Section 1.  Adequate heating,
lighting, toilet, locker and sanitary facilities and all protective devices
necessary to protect the health of employees shall be provided by the
Company.  The Union will at all times
cooperate with and assist the Company in maintaining and improving safety and
health conditions in the Plant.

 

Section 2.  A joint Safety Committee consisting of two
Company members and four employees designated by the Union shall be
established.  The Company shall pay for
such time spent by the Union members of the Committee up to a maximum of one
hour, per man, per month.  The Committee
will meet once each month at a regularly scheduled meeting.

 

Section 3.

 

a.                                       It shall be the
function of the Joint Safety Committee to recommend improvements in safety,
sanitation and health conditions affecting the employees.

 

b.                                      Grievances which
arise under Section 1. of this Article, and which are not settled in the
Joint Safety Committee, may be filed in Step No. III of the Grievance
Procedure.

 

c.                                       If an employee
incurs an injury on the job, he/she must report it to his/her foreman.  All records of injuries which occur on the
job will be

 

 

available for examination by the Safety Committee.  An employee must report any injury sustained
in the Plant within twenty-four (24) hours.

 

Section 4.  The parties agree
to abide by all Federal Legislation pertaining to Health and Safety and Civil
Rights.

 

Section 5.  The Chairman of the Union’s Safety Committee
will be informed of any accident occurring within the Plant involving a
bargaining unit employee.  He/she will be
permitted to investigate such accidents if he/she deems it advisable.

 

Section 6.  The Company will have a qualified first aid
practitioner on each shift.

 

Section 7.   The Company will send the Chairman of the
Safety and Health Committee to the Annual Kentucky Safety and Health
Conference.  The Company will reimburse
the chairman for reasonable expenses and three days’ pay.

 

ARTICLE IX

 

Plant Rules

 

Section 1.  The Union recognizes that it is necessary for
the Company to issue rules from time to time governing the conduct of
employees and that it is the duty of each employee to familiarize
himself/herself with such rules and regulations.  This does not constitute acceptance by the
Union of any specific rules not in compliance with the provisions of this
Agreement.

 

Section 2.  A record of six (6) months without
warnings will serve to clear an employee’s record of a previous warning.

 

A record of
twelve (12) months without further disciplinary actions will serve to clear an
employee’s record of a prior suspension and all disciplinary action for
attendance.

 

ARTICLE X

 

Jury Duty Pay

 

Section 1.  Jury Duty
Pay.  Any employee who is called
for Jury Duty service or is subpoenaed as a witness shall be excused from work
for the days on which he/she serves, and he/she shall receive for each such day
of Jury Duty service or as a witness on which he/she otherwise would have
worked, the difference between eight (8) times his/her assigned personal
rate and the payment he/she receives for Jury service (excluding travel and
meal allowance).  The employee will
present proof of service and the amount of pay received therefor.

 

 

Section 2.  Funeral
Leave.  Employees will be paid
by the Company for time lost due to death in the immediate family.  Such pay to be no more than their assigned
rate for a period not in excess of three (3) work days.  Immediate family includes mother, father of
employee, husband or wife, children, step-children, brother or sister,
mother-in-law, father-in-law, employee’s grandchildren and grandparents.  For time lost due to death of the
grandparents of an employee’s spouse and sons-in-law and daughters-in-law, the
employee will be paid his/her assigned rate for one (1) work day to attend
the funeral.

 

Employees will
be allowed three work days off to make arrangements and attend funeral.  Except, if a holiday should fall during the
three-day period, holiday will count as a day off, or if funeral occurs during
vacation period, excluding plant shutdown, funeral leave pay will be paid
instead of vacation pay.  Vacation days
may be taken at a later date

 

Section 3.  Military
Reserve Pay.  Military
reservists required to take up to two (2) weeks, per year, military
training leaves will be paid the difference between their military training pay
and their RBC base rate earnings.  They
should request a statement of pay from their paymaster while in training and
submit this voucher to their supervisor upon their return to work.  If the two weeks military training should
fall during the time of the plant shutdown, the employee may take his/her
vacation at another time.

 

ARTICLE XI

 

Foreman’s Work

 

Section 1.  No individual excluded from the definition of
employee in Article III of this Agreement shall perform work of the type
customarily performed by employees within the Bargaining Unit, except for the
purposes of training or instructing employees or other occasional or hazardous
work which requires the knowledge and skill of such excluded employee or in
case of emergencies or production difficulties where a regular qualified
employee is not immediately available provided he/she shall not by so doing
replace any Bargaining Unit employee.

 

ARTICLE XII

 

Union Bulletin Board

 

Section 1.  The Union shall have the right to have posted
on a Union Bulletin Board notices of Union meetings, Union elections, names of
Union officials and representatives, and Union social and educational
gatherings and political issues.  Union
notices shall contain nothing controversial or adversely reflecting upon the
Company.  A copy of each notice will be
submitted to the Human Resources Manager or his designated representatives
before posting if practical.

 

 

ARTICLE XIII

 

Leaves of Absence

 

Section 1.

 

a.                             Medical:  Any employee
who is to be absent for more than one (1) week because of personal illness
or physical disability, and who has acquired seniority of ninety (90) days or
more with the Company shall, upon written request to the Company, be granted a
leave of absence not to exceed one (1) year.  All such written requests must be accompanied
by a physician’s certificate.

 

Sick leaves shall be granted without pay or other benefits, except as
provided in this Agreement.  Seniority
shall accumulate up to one (1) year.

 

a.-1.                                    A request for an
extended leave of absence beyond the one-year limitation will be granted upon
medical justification for such leave.  If
the extended leave is granted under this section, seniority for the affected
employee will continue to accumulate for a period of no more than two (2) years.

 

b.                            Personal:  A leave of
absence for personal reasons may be granted not to exceed six (6) months
and seniority shall accumulate, but such leave is granted without pay or other
benefits.  An employee who requires
personal time off in excess of five (5) days must obtain a leave of
absence prior to the actual absence where possible.

 

On personal leaves, employees may not engage in other employment.

 

b.-1.                                   Personal leaves of
absence due to death in the immediate family may be granted for a period not to
exceed six (6) months.  Such leaves
will be granted without pay or other benefits, except that seniority shall
continue during the leave.

 

b.-2.                                   Personal leaves of
absence due to sickness in the immediate family may be granted for a period not
to exceed six (6) months.  Such
leaves must be certified and will be granted without pay, except that other
benefits will be covered for a maximum of thirty (30) days, and seniority will
continue during the leave.

 

Section 2.  Employees applying for a leave of absence for
illness may be subject to physical examination and approval of a physician
appointed by the Company before such leave is granted and/or before the
employee may return to work.  Any
disagreements

 

 

arising from differing opinions of physicians will be subject to a
final decision by a qualified physician at Vanderbilt University mutually
agreeable to both parties.  An employee
must give the Company a forty-eight (48) hour written notification before
returning from leave.

 

Section 3.  Failure to report to the Company within three
(3) working days after the expiration of any leave of absence shall
constitute voluntary resignation.

 

Section 4.  An employee returning to work after a leave
of absence will return to his/her shift and shall be placed in the classification
held at the time of leave.  This will be
done on the basis of the employee’s seniority and provided he/she is able to
perform the job requirements.

 

Section 5.  Any employee who is elected or appointed to
an office or position with the local Union, the United Steelworkers of America
or the AFL-CIO-CLC will be given a leave of absence.  Such leave will be without pay or any other
financial benefits, except pension benefits included in the Agreement; however,
seniority will continue to accumulate. 
The Union may apply for an extension of such leave every three years.

 

Section 6.  Military
Service Reemployment Rights. 
The Company shall accord to each employee who applies for reemployment
after conclusion of his/her military service with the United States such
reemployment rights as he/she shall be entitled to under then existing
statutes.

 

ARTICLE XIV

 

Wages

 

Section 1.  General.

 

a.                             Under the terms of this
Agreement, the Company shall not be required to pay for any time except time
spent at work to which the Company assigns the employee unless otherwise
specifically provided for in this Agreement.

b.                            All earnings are calculated
on a weekly basis except when a moving average is used in Gain-sharing.

 

Section 2.  Labor Grades and Rates of Pay are set forth
in Appendix “A” attached hereto and are a part of this Agreement.

 

Section 3.  New employees without previous experience
will be hired at the appropriate rate as shown on the progression rate scales
outlined in Appendix “A” of this Agreement. 
All employees hired after March 31, 1996 will be paid $3.00, per
hour, lower than the prevailing wage scale in effect for this labor
agreement.  Effective March 28, 2005, all employees hired after March 31,
1996 will be paid $2.75, per hour, lower than the prevailing wage scale in
effect for this agreement.  In addition,
effective

 

 

March 27,
2006, that rate will change to $2.50, per hour, lower; and effective March 26,
2007, that rate will be $2.25, per hour, lower.

 

Employees who have some experience will be placed at a rate on the
progression rate scale commensurate with their experience and ability to
perform the job between the minimum hiring rate for the labor grade up to and
including the full job rate if the employee is fully qualified.

 

Section 4.

 

a.                             Any employee on temporary
transfer to another job for the convenience of the Company shall be paid the
rate of his/her job or the full rate of the job to which he/she is transferred,
whichever is higher.  Such transfers will
not exceed six (6) weeks.  If a
transfer is made into a department where there is a layoff, the Company will
give the reason necessary to the Unit President.

 

b.                            When he/she is transferred
because of no work, machine breakdown or for his/her convenience, he/she will
be paid the rate of the job to which he/she is transferred.  Should the lack of work or machine breakdown
condition continue beyond the first week, the least senior employee on the
shift in affected job classification will be transferred.

 

Section 5.  Shift
Premium.  Employees working on
a scheduled second shift shall be paid a night shift premium of .25 per hour. 
Employees working on a scheduled third shift shall be paid a night shift
premium of .28 per hour.  Employees working on their scheduled shifts
starting between 2 P.M. and 10 P.M. (2nd Shift) and 10 P.M.
and 6 A.M. (3rd Shift) shall be considered as working on night
shifts and entitled to the applicable bonus for that shift.  When an employee’s hours continue into the
following shift, bonus will be determined by the shift of origin.  When an employee is called in or scheduled on
a shift other than his/her own, he/she shall receive bonus applicable to that
shift for hours worked.  “D” shift
employees will receive .28 per
hour shift premium for all hours worked.

 

Section 6.  The Company will supply the following tools
to those employees, where needed to operate within their respective job
classification:

 

1. Metric tools

2. Special spanners

3. Snap ring pliers

4. Allen wrenches

5. Indicators

6. Special press wrenches.

 

All tools broken in the course of the job will be replaced.

 

Section 7.  Only those jobs which are presently
designated as leader’s jobs by the Company are covered by the terms of this
Agreement.

 

 

It is understood that such additional duties as comprise the lead
aspect of the jobs in question may be deleted at the Company’s
determination.  Upon such elimination of
the duties, the Company need not pay the leader’s differential of .20.  Should the Company re-institute the lead
duties, the differential will be restored.

 

Under no circumstances does the agreement to pay additional monies for
the affected jobs infringe on Job Evaluation nor does it set precedent for future
jobs installed in accordance with Job Evaluation, Article VI.

 

On the basis of the above provisions, the Company will pay the leaders
in question .20 higher than their evaluated rate.

 

Section 8.  The Company agrees to provide payroll
deduction for a Credit Union, if one is established.

 

Section 9.  Pay for
Workmen’s Compensation Injuries. 
Day of injury and outside medical attention required:

 

Return to work after outside treatment:

a.  Paid for time out of plant;
charged to job.

 

Does not return to work from outside
treatment:

a.  Paid to end of normal shift;
charged to job.

 

Medical attention on subsequent day after employee has returned to
active work*

Return to work after treatment:

a.  Paid for time out of plant;
charged to job.

 

Does not return to work after treatment:

a.  Paid to end of normal shift;
charged to job.

 

If additional visits are required, the employee must notify his/her
supervisor twenty-four (24) hours prior to day of absence.  A reasonable schedule will be observed.

 

*If additional visits for outside medical attention are not possible on
employee’s own time.

 

Employees on the 2nd and 3rd shifts who are
required to seek out of town treatment for their injuries will be paid four (4) hours
provided they work the remainder of their shifts.

 

Section 10.  Employees attending company-sponsored
training programs outside of a 50-mile radius will be reimbursed for travel
time at the employee’s straight-time rate.

 

Section 11.  It is agreed that any vending machine profits
in the Plant will be divided equally between the Company and the Union to be
used for the Family Picnic Fund.

 

 

ARTICLE XV

 

Insurance and Pension Benefits

 

Section 1.  A pension plan and insurance program have
been provided in agreements which are separate and apart from this Agreement.

 

Section 2.  An employee’s insurance terminates at the end
of the first month in which an employee is granted a personal leave, or is laid
off with 3 days’ notice; or at the end of the month following the month laid
off without 3 days’ notice.

 

While on medical leave, insurance benefits continue for an employee and
his/her dependents for a period not to exceed 39 weeks.

 

Section 3.  In accordance with the contractual terms as
outlined in Article XV, Section 2., medical and life insurance benefits
are continued during term of leave for a period not to exceed 39 weeks.

 

Section 4. MEDICAL AND INSURANCE
BENEFITS

 

Life Insurance:  $25,000
effective April 1, 2005.

 

Accidental Death and Dismemberment:  $25,000
effective April 1, 2005.

 

Accident and Health: Effective April 1, 2005, Accident and Health benefits
shall be increased from $175.00
per week to $210.00 per week,
for a period not to exceed 39 weeks, with medical benefits covered for that
same 39-week period.

 

The following is a brief outline of the insurance program.  The employee should always refer to the
insurance booklet provided, or contact the Human Resources Department should
there be questions concerning eligibility or limitations of insurance coverage:

 

INSURANCE

 

Eligibility begins on the first day after you have completed ninety
(90) days of continuous service for the employee and eligible dependents

 

Effective June 1, 2002, coverage will be as follows for those
employees not opting out:

 

Medical:                -Steelworkers
100/80 PPO

-Steelworkers Drug Option C

 

Vision:                   -Steelworkers
OptiChoice Vision

 

 

Dental:                   Steelworkers
Dental Plan A

 

Effective April 1, 2005,
all employees covered by the above medical insurance will pay the following
weekly contributions:

 

	
  Type

  Coverage:

  	
   

  	
  Contract

  Year 1:

  	
   

  	
  Contract

  Year 2:

  	
   

  	
  Contract

  Year 3:

  	
   

  
	
  Family

  	
   

  	
  $

  	
  53.89

  	
   

  	
  $

  	
  53.89

  	
   

  	
  $

  	
  53.89

  	
   

  
	
  Single

  	
   

  	
  $

  	
  32.30

  	
   

  	
  $

  	
  32.30

  	
   

  	
  $

  	
  32.30

  	
   

  

 

The Company will pay a monthly Cash Option to any employee waiving the
above medical insurance in the amount of $250.00/Family or $150.00/Single.  However, no more than 20% may opt out.  In addition, the Company agrees to continue
the stand-alone Prescription Drug benefit, or substantially equivalent plan
with $10/$20 co-pays, for those employees covered by the separate agreement
effective July 1, 2000.  Those employees who grow into an unreduced
SKF pension after March 30, 2002, may also opt out of the medical
insurance plan, per Memorandum of Understanding on page 70, and receive
the company-paid stand-alone Prescription Drug benefit, dental and vision;
however, these employees will not be eligible for the monthly Cash Option
payment, per paragraph 4. on page 70.

 

Any employee retiring during the life of this labor agreement will have
his benefits capped at whatever the cost of those benefits on April 1,
1996.

 

MEMORANDUM OF UNDERSTANDING

 

Amendments to the Pension Plan for Hourly Employees:  The present minimum pension formula shall be
improved by increasing the pension, per month, per year of service, from $32.00 to $33.00 effective for retirements on or after May 1, 2005; to
$34.00 effective for retirements on or after May 1, 2006; and to $35.00
effective for retirements on or after May 1, 2007.  In addition, employees eligible for
retirement and electing to retire within six (6) months of this agreement’s
effective date, are eligible for a pension of $35.00.

 

30-Year
Retirement (early retirement without actuarial reduction).  An employee who attains 30 or more years of
service may elect to retire with a full pension (not actuarily reduced) regardless
of age.  Employees retiring as of April 30,
1996, will have their retiree Major Medical Lifetime maximum increased from
$2,500.00 to $10,000.00.

 

Immediate Vested Retirement.  If
you are terminated because of a permanent shutdown of the facility, you may be
eligible to retire at that time without actuarial reduction, provided you meet
either of the following age and service combinations on the date of
termination:

 

(1)                        at least 15 years of service
and 55th birthday, or

 

(2)                        at least 15 years of service
and combined age and years of service equal 80 or more.

 

 

ARTICLE XVI

 

Union and Management Cooperation

 

Section 1. The
Company and the Union recognize the advisability of making every effort to
constantly improve relationships between the Company, the Union and all
employees.  In the interest of improving
relationships and to provide a forum for the discussion of overall problems of
mutual concern, inclusive of Civil Rights, other than specific grievance cases,
a Labor-Management Committee consisting of the Unit President and three (3) other
members of the bargaining unit, the Plant Manager and Management
Representatives designated by the Company shall meet monthly on Company time to
discuss problems which may cause a disruption in relationships or to suggest
means of improving relationships, provided the Union provides the Company with
a written agenda for this meeting at least one (1) business day prior to
the meeting.

 

ARTICLE XVII

 

Vacations

 

Section 1. Vacation Period.  The vacation year
begins on January 1 and ends on December 31 of the current year.

 

Section 2. Eligibility.

 

a.                                       If your
anniversary of continuous employment is reached on or before December 31
of the current year, you are eligible for:

 

	
  Accumulated Service on or
  Before

  December 31 of the Current Year

  	
   

  	
  Vacation

  	
   

  
	
  1 year

  	
   

  	
   

  	
  2 weeks

  	
   

  
	
  10 years

  	
   

  	
   

  	
  3 weeks

  	
   

  
	
  20 years

  	
   

  	
   

  	
  4 weeks

  	
   

  

 

b.                                      Each employee who
is actively on the payroll on December 31 of any year shall be entitled to
his/her full vacation benefits in accordance with Section 2. a. above,
notwithstanding the fact that his/her service may have been terminated for any
reason during the ensuing year prior to receipt of vacation benefits.

 

c.                                       Any employee who
was on leave of absence or layoff on December 31, and returned or was
recalled thereafter, shall be entitled to his/her full vacation benefit in
accordance with 2.a. above provided he/she works at least six (6) months
between January 1 and December 31 of the current vacation year.

 

 

Section 3. Vacation Schedule.

 

a.                                       Vacations will,
as far as possible, be granted at times most desired by employees; but the
final right to schedule vacation periods is reserved by the Company in
order to insure the orderly operation of the business.  This includes the right of the Company to
determine whether or not the Plant will be closed for all or part of a vacation
season, and to schedule vacations at such time.  The Company will, by May 31st
of each year, make known to the Union when the Plant will be shut down for
vacation purposes.

 

a.-1.                          No employee will be required
to work during a vacation shutdown or properly scheduled vacation period
without thirty (30) days notice. 
Employees scheduled for inventory work during the shutdown will be
scheduled at least 10 days in advance, except where circumstances do not
permit.

 

a.-2.                          Vacations (not including
plant shutdown periods) shall be scheduled at least 30 days in advance and may
not be changed except by mutual consent.

 

b.                                      Vacations are
scheduled as consecutive days in combinations of five (5) working days,
except where lesser combinations are agreed to mutually.

 

c.                                       When a paid
holiday falls within an employee’s scheduled vacation, he/she shall receive an
extra day off at his/her discretion with one week’s notice or receive eight (8) hours
additional pay for the holiday.  If the
holiday falls during a plant vacation shutdown, that holiday will be scheduled
by the Company.  The Company will notify
the union by May 31st of each contract year whether or not the
holiday during the plant shutdown will be scheduled immediately prior to or
after the shutdown, or whether the holiday may be used at the employee’s
discretion with five (5) days’ notice.

 

d.                                      No employee will
be required to work overtime on the weekend or sixth or seventh day prior to or
following his/her vacation period.

 

d.-1.                         An employee scheduled for five
(5) or more days of vacation, shall not be required to work overtime on
their last regular work day prior to that vacation.

 

e.                                       Work during
plant shutdown will be in seniority order by the classifications needed on
their respective shifts.  When notified
by May 31st of each year, employees scheduled to work in their
classification, must work or will be subject to disciplinary action.

 

 

 

f.              When
General Laborers are needed during a plant shutdown, the jobs shall be filled
in the classification in seniority order. 
If the jobs can not be filled in the classification, they will be filled
on a seniority basis plant-wide.

 

g.             Inventory
during vacation shutdown will be filled in seniority order.

 

h.             An
employee with three (3) or more weeks vacation may take one of those weeks
in days, provided that employee gives the Company reasonable notice.  The fourth week of vacation can be split in
the following manner: two (2) and three (3) days, or three (3) and
two (2) days.  Days worked during
vacation shutdown may be taken as individual days with reasonable notice.

 

Section 4. Vacation Pay.

 

a.             For
eligible employees, vacation pay shall be based on the average hours worked by
the employee for the first two-week period of the six weeks immediately
preceding the vacation period.  An
employee may make their selection once per year in order to determine which
vacation period the Company will use to establish their vacation pay.

 

a.-1.         Officers
and Committeemen shall be considered to have worked eight (8) hours each
day and five (5) days each week while on official Union business for the
purpose of calculating vacation pay. 
This includes any Union member who is on official Union business.

 

b.             Vacation
pay will be based on the employee’s regular job rate (not temporary rate)
current at the time of vacation.  This
does not include shift premium.

 

c.             For
eligible full-time employees, pay for each vacation week shall not be less than
forty (40) hours, nor more than forty-eight (48) hours.

 

Section 5.  For each week of vacation as provided under
this Article, Section 2.a., an employee will receive a $45.00, per week,
vacation bonus, effective March 28, 1981.

 

Section 6.  Employees required to work during vacation
shutdown and taking their vacation at another time, the Company will pay the
higher pay of the two (2) eligibility periods.

 

 

ARTICLE XVIII

 

Seniority

 

Section 1. Definition of Seniority.  Seniority is defined as the length of an
employee’s continuous service with the Company and shall date from the time of
the employee’s most recent hiring.

 

Section 2.  Loss of Seniority.  Seniority shall cease and employment
terminate upon:

 

a.             Resignation
or quit.

 

b.             Discharge
with cause.

 

c.             Failure
to report for work for three (3) work days without a valid reason and
without satisfactory notice to the supervisor within said three (3) work
days.

 

d.             Failure
to report for work within three (3) work days after the expiration of a
leave of absence.

 

e.             Failure
to report to the Human Resources Office from layoff within three (3) work
days after receiving notice of recall. However, if an employee can prove within
ten (10) calendar days from expiration of leave of absence or receipt of
recall that it was impossible for him/her to notify the Company, his/her
seniority rights shall be retained. 
Recall notice will be by certified or registered mail.  An employee laid off from the Plant may
refuse recall to a temporary job without jeopardizing future recall rights.

 

f.              Layoff
from the Company for more than forty-eight (48) consecutive months for an
employee with more than six (6) months service, or for a period equal to
twice his/her length of service if the employee has less than six (6) months
of service.  Employees who bid or are recalled
to jobs they cannot perform and, as a result, are disqualified by themselves or
the Company, will not start their recall periods over again.

 

Section 3.  Rehired Employee.  Any employee whose seniority has ceased under
Section 2., and who is subsequently rehired shall be covered under the
terms of this Agreement in the same manner as a new employee.

 

Section 4.  Probationary Period.  During the first one hundred twenty (120)
calendar days of employment for grades 1-6, and one hundred fifty (150) days of
employment for grades 7-12, employees will be considered as probationary and
shall be subject to discharge without recourse. 
After completion of the probationary period, an employee’s record of
continuous service will date back to the original employment date.

 

Section 5.  Seniority List.  The Company will maintain seniority records
of all employees which will be available in the Human Resources Department for
examination by the Union.  Copies of
Group seniority lists and a plant-wide seniority list will be given to the
Local Unit President and Unit Griever every six months upon request.  The

 

 

International Representative
will be provided with a seniority list upon request, as well as the Local Unit
President.

 

Section 6.  Group Seniority.  New employees when hired will be assigned to
a group and will accumulate seniority in the group.  When an employee bids to a different group
and accumulates two (2) months of service within one (l) year, he/she will
be credited with his/her full Plant seniority in that group.  For purposes of this Article, the various
seniority groups and the job classifications assigned to them shall be as
listed in Appendix “B” of this Agreement.

 

Section 7.  Promotion to Excluded Position.  Employees transferred from the Bargaining
Unit to an excluded position will cease to accumulate seniority on the date of
his/her transfer.  Should such
transferred employee for any reason return to the Bargaining Unit, within 90
calendar days of his/her initial transfer, he/she will receive the seniority
he/she had on the date of his initial transfer. 
In the event the transferred employee fails to return to the Bargaining
Unit within the 90 calendar days of the initial transfer, his/her seniority
will be frozen as of the time he/she left the Bargaining Unit. If such
transferred employee thereafter returns to the Bargaining Unit, it will be as a
General Laborer, seniority permitting. 
No employee may transfer back into the Bargaining Unit more than once during
the life of this Agreement.  Salaried
employees who moved from the Bargaining Unit under prior contracts will be
covered by the provisions effective at those times.

 

Section 8.  Shift Assignment for Training.  Employees newly assigned or bidding to a new
job may be assigned to another shift not in excess of one hundred twenty (120)
days for grades 1-6 and one hundred fifty (150) days for grades 7-12 for
training.  Should an employee be
disqualified or terminated and another employee hired or transferred, the new
employee may, likewise, be assigned for not in excess of the training
period.  If at any time during the
training period the Company feels that a particular employee is qualified, the
particular job will be canvassed for the open shift, and the employee involved
will be moved immediately.  Production
Assistants may also be assigned to another shift to train for up to sixty (60)
days.  Where possible, Production
Assistants will be assigned in reverse seniority order.  This section will not be construed so as
to move a senior employee from his/her preferred shift to make room for a
trainee.  If training occurs within an
employee’s job classification, the senior employee will remain on his shift
whether he is the trainer or the trainee.

 

Section 9.  Unit Officers and Committee on Layoff.  It is understood that the following Unit Officers shall have top seniority
for layoff purposes during their respective terms in office:  Unit
President and Unit Grievers.

 

a.             The
Unit President and Unit Grievers shall not be bumped from their
respective shifts unless their jobs are eliminated.

 

b.             The
Chairman of the Grievance Committee will be permitted work on the first shift
provided there is a job in his/her classification on the first shift.  For this purpose, the Chairman will be
accorded super seniority with respect to bumping into the first shift or
immunity from

 

 

being bumped from it.  The Unit President will be Chairman of the
Grievance Committee.

 

c.             In
the interest of improving Company-Union relations, the Chairman of the
Grievance Committee will be allowed to work second or third shift when he deems
it’s necessary for a period not to exceed sixty (60) days per year.  The Chairman of the Grievance Committee will
trade shift assignments with the most senior employee in his/her classification
who desires to swap.  If no one on the
desired shift wants to swap, then the junior employee will be bumped to the day
shift until the Grievance Chairman returns.

 

d.             An
elected Unit Griever will be allowed to refuse recall without giving up recall
rights or bidding rights to future openings to previously held jobs.

 

e.             An
elected Unit Griever will not hold a preferred job on his shift until he
exhausts his seniority rights according to the contract.

 

f.              If
the Chairman of the Grievance Committee is in Maintenance or Tool Room, the
Company will have the option of transferring that employee to the General
Group, during the term of office.  If the
Chairman of the Grievance Committee is in any other group, the employee will have
the option of transferring to the General Group.  If the employee is transferred, base pay will
be red-circled at the previous rate; and incentive will be based upon previous
twelve-month average.  The Chairman’s job
will be bid out as a temporary job during his term of office.  As a result of this addition, no employee
will be displaced;  and, in case of a
layoff, the normal contractual rules will apply.  If the Chairman is not moved, release for
union business will not be unreasonably denied.

 

FILLING PERMANENT JOB VACANCIES

 

Section 10.  Seniority Recognition.

 

a.             It
is the intent of both parties to give the senior employee the opportunity for
higher paying jobs and choice of shifts, provided the employee has the ability
and qualifications to perform the work available, subject to the procedures and
in the order outlined herein.

 

b.             On
plant-wide bids, employees may bid up, but not laterally or downgrade
themselves, without a valid reason. 
During the life of this contract, an employee will be permitted the
opportunity to bid laterally or downgrade one time for any reason.

 

 

c.             If,
within four weeks after starting on a job to which he/she has bid, an employee
performs unsatisfactorily or if, within five days after starting on a job, an
employee self-disqualifies himself/herself, he/she shall be returned to the job
from which he/she has bid without prejudice. 
Self-disqualification shall be permitted no more than once per contract
year.

 

Section 11.  Procedure.

 

a.             Group Preference:

 

a.-1.         Employees
in the same group on the job classification involved will be given shift
preference.  Such preference will be
determined by a shift preference card filled out by the employee and will
remain in effect for the length of employment. 
This same shift preference card shall also be used for the purposes of Section 17.
below.  An employee may change his
preference card at any time if it is at least 24 hours prior to an actual job
posting.  Whenever an opening occurs, the
opening will be filled according to the shift preference cards.  If an employee changes groups, the employee’s
shift preference will be transferred to the new group.

 

a.-2.         Recall
of most senior employee whether he’s/she’s laid off from that classification or
a higher classification either in or out of the Plant.

 

If an employee
is bumped from his/her home group and acquires two months seniority within one
year in another group, the employee will be permitted to select the new group
any time after obtaining group seniority.

 

A laid-off
employee may be recalled to a job in his last unit provided he has held that
job and has the necessary seniority.  If
a mistake in recall or plant-wide bid from layoff is brought to the Company’s
attention by the Union and not remedied, the affected employee will be paid
from the time of notification until corrected.

 

An employee
laid off from the apprentice program shall be recalled in the order of his
entry into the program.

 

a.-3.         Posting
of job for upgrading, lateral or downgrading in group, based on group
seniority, provided employees have satisfactory ability and qualifications to
perform the job (up to four (4) weeks to demonstrate proficiency).  An employee who bids up within his/her group
will be restricted from bidding down within the group for a period of one year
from the date of bid.

 

 

b.             Plant-wide Bid:  If the job is not filled by the procedure
outlined in a. above, the job vacancy will be posted plant-wide for three (3) working
days, excluding Saturday and Sunday and holidays.  Applicants applying for the job will be given
consideration in Plant seniority order to determine if they have the necessary
ability and qualifications to meet the job requirements.  If the Company voids a posted job, it must be
re-bid before anyone is placed on it. 
Should a bidder be disqualified by the Company or himself/herself, the
next eligible bidder may be awarded the job. 
Should the next eligible bidder be disqualified, the bid may be
re-posted.

 

If there are no successful bidders on an open
job and it is not filled by the Company within thirty (30) days, it will be
re-bid.  All openings created by job bids
shall be filled by the above procedure.

 

c.             Hiring: 
If the job cannot be filled in accordance with a. or b. above, the
Company may exercise its discretion in filling of the vacancy by hiring new
employees.

 

d.             Training of Employees:  However, the Company may select employees for
training whom the Company feels have the potential skill and ability, in which
case, the selection will be made from those employees who bid for the posted
job as trainees.  Wherever practical,
present employees will be given preference for training on open jobs before
hiring from outside.  Seniority will be
the controlling factor in any selection providing all other factors are of
relatively equal value.

 

e.             Permanent
shift swapping will be allowed within the classification provided no one else
is involved.

 

f.              Temporary
shift swapping will be allowed within the classification provided no one else
is involved, and the employees are immediately qualified for the job
assignment.

 

g.             Employees
who have disqualified themselves will be entitled to re-bid those jobs after
two (2) years.  An employee will
also have this right to re-bid after two years if he is disqualified by the
Company.

 

Section 12.  Bidding by Absentee.  Employees who are to be absent from the Plant
up to one month may notify the Human Resources Department of their desire to be
considered for specific jobs which may be posted during their absence.

 

Section 13.  Posting of Award.  The names of successful bidders with their
seniority and the job awarded shall be posted on the bulletin board within two (2) weeks
of the posting period.  Upon transfer to
the new job, the employee’s seniority will be adjusted to the date the job was
awarded, and credit will also be given toward any automatic progression rate on
the new job.

 

 

a.             An
employee will be moved to the posted job within six (6) weeks of his
acceptance.

 

Section 14.  Inter-Departmental Bidding Restriction.  New employees and employees accepted in
another group on a posted bid will be restricted from bidding for another
posted job within another group for a period of six (6) months after
reaching full job rate for classifications 1-4 and two (2) years for
classifications 5-12.  New employees
hired in labor grades 1 and 2 may bid plant-wide for open jobs after ninety
(90) calendar days.

 

However, any
employee will be permitted to bid upwards at any time within the group, after
reaching their full job rate, except he/she may not bid to a job he/she has
held within the previous six (6) months.

 

a.             If
an employee has bid on several jobs simultaneously, when the awards are made,
he/she will have his/her choice of jobs if accepted on more than one.

 

b.             The
Company will provide the Chairman of the Grievance Committee with copies of all
posted job bids as well as posted job awards.

 

c.             If
no employee in a seniority group bids on a group opening, the six-month
restriction will be waived for any employee within the group with less than six
months in a new job.

 

REDUCTION IN WORK FORCE

 

Section 15.

 

a.     In case of a layoff:  the least senior employee in the job
classification will return to his/her home group, or if this is his/her home
group, he/she will be allowed to bump up, provided he/she has previously held
the job classification and can demonstrate immediate proficiency.  Employees not eligible to bump up will
retrograde in his/her group on the basis of his/her group seniority, provided
he/she has the ability and qualifications to perform the job (up to three days
in which to demonstrate proficiency).

 

a.-1.         An
employee who must return to his/her home group will be given a choice of shifts
provided his/her seniority is sufficient.

 

b.             If
the employee is bumped from his/her home group, the employee may bump in
reverse order of last job held to next to the last job held and so on, to any
job in which they have attained group seniority, provided they are immediately
qualified after being familiarized with anything new to the equipment and
operations.

 

 

c.             If
an employee cannot exercise the options provided in a. or b. above, he/she will
bump the least senior employee in the general group (Labor Grades 1 and 2),
provided he/she has more seniority and can perform the job.

 

c.-1.         If
an employee is physically incapable of performing the duties of the above job,
he/she will be permitted to bypass the job and bump the next least senior
employee in the General Group on a job which he/she is physically capable of
performing.

 

d.             Any
employee involved in layoff procedure shall be given full rights and benefits
under this Agreement according to their Plant seniority.

 

e.             An
employee is prohibited from bumping to a job on which he/she has already
disqualified himself/herself.  Employees
refusing recall to a classification, or who withdraw their names from a bid
job, do not give up bumping rights to the highest classification previously
held.

 

Section 16.  Optional Layoff.  An employee has the option to accept layoff
in place of downgrading, in which case he/she will not have recall rights to
jobs in labor grades below the labor grade from which he/she accepted
layoff.  An employee maintains bidding
rights while on optional layoff.

 

a.             If
there is a reduction in force in a classification, the senior employee(s) in
that classificaton may elect to take a Voluntary Layoff.  Employee(s) accepting layoff will be on
layoff until recalled by seniority to the group from which they left.  An employee may reject recall to an open
position and remain on layoff if the employee has the seniority and there are
still employees on layoff.  The Company
will not deny unemployment benefits to employees who accept this layoff.

 

Section 17.  An employee may exercise a shift preference
within his/her job classification prior to vacation shutdown of each year, or
prior to the first work week in August, should there be no vacation
shutdown.  Such preference will be
granted provided the employee has sufficient seniority to displace the employee
on the desired shift.  If an employee
attains group seniority before July 1 of the current year, the affected
employee may exercise a shift preference within his/her job classification
provided the employee has sufficient seniority to displace the employee on the
desired shift.

 

The preference
will be based on the shift preference card provided for in Section 11.
above.  However, for any purpose, no
changes shall be permitted in the shift preference card from June 1st
to the effective date of the preference until after the preference is
completed.

 

The employee
will be physically moved to the desired shift upon return from vacation
shutdown, or on the first work day of the first full week in August, should
there be no vacation shutdown.

 

 

Section 18.  (Number of days shown below will be defined
as working days.)

 

1.             Open
jobs in areas designated, will be bid without a shift preference.  This will allow current employees an
opportunity to fill the job vacancies, subject to the bidding procedures, prior
to hiring from the outside.

 

2.             Employees
will be hired to fill the open job vacancies and be placed on a shift for
training.  The shift will be determined
by the Company.

 

3.             The
number of employees to be hired at any given time will be at the discretion of
the Company.  However, if the number
becomes so large as to make policing of this Agreement impossible on the part
of the Company or the Union, this Agreement is subject to cancellation.

 

4.             A
copy of the employee’s name, date hired, clock number, job assigned and shift
assigned will be provided to the Union.

 

5.             The
shift assignment for training will not be in excess of ninety days.  The ninety days will be per employee from the
date of hire or transfer (in the case of a successful bidder).  Should an employee be disqualified, the
ninety days will start again from the date of hire or transfer (in the case of
a successful bidder) of the new employee. 
If at any time during the ninety day training period, the Company feels
that a particular employee(s) is(are) qualified, the particular job will be
canvassed for the open shift and the employee(s) involved will be moved
immediately.

 

6.             If
the Union shows where the Company has abused the training program by not
providing proper training to an employee, that particular job will be shift
canvassed and the employee involved will be moved immediately.

 

7.             The
employees will not be considered on the overtime roster for the first sixty
days of the training period or until qualified, unless all other employees in
the affected job classification on the shift are asked to work.

 

8.             Under
the training program, when an employee is successful bidder on a downgrade and
he/she is qualified to do the job, an opening will be declared immediately and
a shift canvass will be taken to fill the opening.  It is for up to six weeks, as stated in the
contract.  This will be done before any
other employee is declared qualified. 
The employee bidding down cannot take a shift preference on the opening
declared because of his downgrade; since “employees in the same group on the
job classification involved will be given shift preference”, as stated in the
Company-Union Agreement.

 

 

Section 19.  Where the employee’s personal health
limitations are expected to be permanent or of long, continued duration, and
where the employee downgrades to the General Labor group, he/she will assume
the position of General Laborer and shall be credited with his/her full Plant
seniority without having to accumulate two (2) months of service as
required by Section 6. of Article XVIII.

 

In making this
transfer, the downgrading employee shall give up any claim to return to his/her
old classification after the medical limitations are lifted.  The employee will be treated just as if
he/she had bid to the General Laborer classification.  However, if the employee’s limitations are
lifted within ninety (90) days, the employee will return to the job from which
he/she downgraded, his/her seniority permitting.

 

After there is
a subsequent improvement in the employee’s condition, and after limitations
originally imposed by the physician are either significantly modified or lifted
entirely, the employee may bid to another job in the plant only after he/she
works an additional six (6) full months in the General Laborer
classification.  However, the employee
may bid only if the duties of the job to which the employee is bidding are
within the employee’s limitations, if any. 
All doctors’ statements will be reviewed by the Unit President and Human
Resources Manager and may be reviewed by the recognized Company doctor.

 

Section 20.  Notices of employee hires and terminations
will be sent to the Union’s Financial Secretary.

 

Section 21.  Temporary
Bids

 

The following
procedure will apply for jobs bid on a temporary basis to fill vacancies
created by employees on leave of absence or other vacancies known to be of a
temporary nature.

 

A temporary
job will be in effect for a maximum of nine (9) months from date bid.  At the end of nine (9) months, the
temporary job will be bid as a permanent job. 
Should the employee on leave of absence return to work prior to the end
of the nine (9) months, he will bump the employee on the temporary
bid.  Should the employee on leave of
absence return after the temporary job has been bid as permanent, he will bump
the junior employee on the shift and in the job classification he held at the
time his leave started, providing his seniority is sufficient.  If the employee returning from leave does not
have sufficient seniority to return to his job classification, he will
retrograde in his group on the basis of his group seniority, provided he has the
ability and qualifications to perform the job.

 

In the event
of a layoff, all temporary bids in the affected group will be cancelled, prior
to the layoff.   Employees working on a
temporary job will return to their permanent jobs and the layoff will take
place at that time.

 

 

ARTICLE XIX

 

Hours of Work

 

Section 1.  This article is
intended to provide a basis for calculating overtime only.  It shall not be construed as a guarantee of
hours to be worked by an individual employee or group of employees per day or
per week.

 

The Company
may rotate employees in a department for a period not to exceed 4 weeks.  During rotation, the department will operate
5 days per week, but employees will be rotated on a continuing basis so that no
employee loses more than one day out of each week.  If a longer rotation period is necessary, the
Company will be obliged to negotiate that with the Union.

 

Section 2.  Work Week.  A normal work week shall consist of five (5) consecutive
eight-hour days followed by 2 days of rest.

 

Section 3.  Work Day.  A work day shall be defined as a consecutive
24-hour period beginning with the starting time of an employee’s shift.  Eight continuous hours of work interrupted by
regularly scheduled lunch periods shall constitute a day’s work.

 

Section 4.  Working Schedules.  Except where an off-standard work week is
established by the Company, the following are the working hours of the various
shifts.  The Company may operate these
different shift schedules simultaneously within the Plant or any department.

 

One-shift operation:           7:00 a.m.
-   3:00 p.m.

 

Two-shift operation:            7:00 a.m.
-   3:00 p.m.

    3:00 p.m. - 11:00 p.m.

 

Three-shift operation:        7:00 a.m.
-   3:00 p.m.

  3:00 p.m. - 11:00 p.m.

   11:00 p.m. -   7:00 a.m.

 

Four-shift operation:

 

	
   

  	
   

  	
  Mon.

  	
   

  	
  Tues.

  	
   

  	
  Wed.

  	
   

  	
  Thurs.

  	
   

  	
  Fri.

  	
   

  	
  Sat.

  	
   

  	
  Sun.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  7-3

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  OFF

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  3-11

  	
   

  	
  OFF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  3-11

  	
   

  	
  11-7

  	
   

  	
  11-7

  	
   

  	
  OFF

  	
   

  	
  OFF

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  

 

Section 5.  Premium Pay - Four Shift.  Employees who are on a four-shift schedule will
receive time and one-eighth for regularly scheduled hours worked on Saturdays
and time and one-quarter for regularly scheduled hours worked on Sundays.

 

 

Section 6.  Call-in Pay.  If an employee is called into work prior to
the beginning of his/her shift, he/she shall be guaranteed a minimum of four (4) hours
at the appropriate rate.  If those hours
are contiguous to his shift, premium rate is applied only to those hours which
are not part of his normal shift.

 

Section 7.  Reporting Pay.  In the event an employee reports for work as
scheduled, he/she will be given at least four hours of work - or be sent
home.  If an employee reports to work as
scheduled and work is not available, he/she will be assigned other work and be
paid at least four hours pay at his/her regular rate.  If he/she is sent home, he/she will be paid
four hours pay at his/her regularly assigned rate.  This does not apply where:  (l) the employee is unfit for work;  (2) the inability to provide work is due
to emergency situations; or (3) he/she is notified not to report to
work.  Employees are required to maintain
a reliable method of being contacted by phone to qualify for reporting pay.

 

Section 8.  Division of Overtime.  No employee will be required to work more
than eight (8) hours voluntary or mandatory
overtime in a work week in the
employee’s classification, and no more than one (1) 6th-day, per month.  On a weekly basis, the Company will post an
overtime sign-up roster in designated areas. 
Any employee wishing to work overtime will indicate their preference on
that sheet.  When the Company has a need
for overtime, it will offer it to the most senior employee in the
classification on that roster.  If there
are no volunteers on the roster, the junior employee in the classification will
be required to work the overtime, unless that junior employee has already
worked eight (8) hours overtime during that week.  Opportunities for voluntary overtime will be
rotated daily based on seniority. 
Employees signing the overtime roster will be expected to work if
needed.  If a mistake is made on
overtime, that employee will be offered the next available overtime
opportunity.  There will be no records
kept, except weekly posted sheets for time and one-half.  Double-time scheduling for employees will be
kept within eight (8) hours on a shift and twenty-four (24) hours between
shifts where practical.  Appropriate
records will be kept.  No employee will
be required to work on their 6th or 7th day unless told
by the end of his/her shift on the fourth day of their work week.  Required overtime will not be scheduled by
phone.

 

Section 9.  Overtime Pay.

 

a.             Except
as provided in b. below, time and one-half shall be paid for all hours or parts
of hours worked:

 

a.-1.         in
excess of eight (8) hours in any one work day;

 

a.-2.         in
excess of forty (40) hours in any one work week;

 

a.-3.         on
the sixth day of the scheduled work week.

 

b.             Double
time shall be paid for all hours or parts of hours worked on the seventh day of
the scheduled work week, and between the hours of 7:00 a.m. and 3:00 p.m.
on Sunday.

 

 

Section 10.  On
Four-Shift Operation.

 

1.             When
an employee voluntarily transfers from one shift to another through shift
preference, upgrading, recall, etc., he/she will not receive premium pay on the
basis of work performed on the sixth (6th) and seventh (7th) day of his/her
previous (old) work schedule.

 

2.             When
an employee is involuntarily transferred due to being bumped, etc., he/she will
receive premium pay for working on the sixth and/or seventh day of his/her old
work week schedule.

 

3.             An
employee who transfers from the fourth shift of a four-shift schedule to
the third shift of a four-shift schedule, and an employee who transfers from
the fourth shift of a four-shift schedule to the third shift of a
three-shift schedule will work on the first day off of his/her new schedule at
straight time, thus enabling him/her to have a five-day work week.

 

4.             This
section insures employees on a 4-shift operation will be recognized for
the purpose of payment on his sixth and/or seventh day.

 

 

(SHIFT SCHEDULE CHANGES ON THIS PAGE)

 

 

(SHIFT SCHEDULE CHANGES ON THIS PAGE)

 

 

(SHIFT SCHEDULE CHANGES ON THIS PAGE)

 

 

Section 11.  No employee will be penalized by the loss of
working days in the week immediately prior to a Plant shutdown.

 

Section 12.  It is agreed to allow cross-shifting of
overtime (double time) opportunity for the production assistants in Cup Grind,
Cone Grind, Roll Grind, Assembly and the operators in Heat Treat and Surface
and O.D. Grind Departments on Sunday afternoons.  The overtime opportunity is for the purpose
of allowing P.A.’s to come in and start up equipment so that it is warmed up
and ready for production by the start of third shift at the beginning of the
work week.   Such overtime (double time)
opportunity for start up will be limited to coming in early for a maximum of
four (4.0) hours.  The overtime
scheduling under this cross-shifting agreement, will be kept within eight (8.0)
hours between employees.  This
cross-shifting applies to all warm-up operations.

 

All four-shift
operations will be cross-shifted on Sunday 7:00 am to 3:00 pm..

 

 

Section 13.  Master
Overtime Roster.

 

The Company
will post a Master Overtime Roster once a month.  Employees desiring to work overtime after the
group has declined must sign for overtime in the area they desire to work.

 

The Company
will have the right to choose qualified employees when a specific skill is
required.

 

On jobs which
do not require extensive training, such as general labor, wrapping, wash and
pack cups and dipping cones, the scheduling will be done in seniority order
across shifts.

 

If more than
one employee who is capable of performing the work signs, the senior person
will be scheduled.

 

Employees
needed to work will be notified by the end of their shift.

 

Employees accepting overtime through this provision will be paid at the
rate of pay for the job they perform.

 

ARTICLE XX

 

Settlement of Differences

 

Section l.  A grievance shall be defined as any dispute
which arises between the Company and the Union over the compliance with or
application of this Agreement as it pertains to any Bargaining Unit employee,
and all such differences shall be settled in the following manner:

 

STEP
I.          Between the employee and
his/her supervisor, or at the request of the employee, between the employee,
committeeman and supervisor.  If the
dispute is not settled in accordance with an oral discussion between the
supervisor, the employee and/or the committeeman, then the dispute may be
reduced to writing and submitted to the respective supervisor.  Grievance must be returned to the employee
and his/her committeeman within 48 working hours with a written answer to the
dispute.  Should the dispute remain
unsettled, it may be submitted to Step II within five (5) working days
from the date of the written answer.

 

STEP
II.         On the first and third
Thursdays of each calendar month, Step II cases will be heard by the Step II
Committee which shall consist of up to three (3) representatives of
management and up to three (3) representatives of the Local Unit.   If the dispute still remains unsettled, it
may be appealed by the Union to the Third Step within seven (7) working
days following the hearing in Step II.  A
hearing in Step III will be scheduled at the earliest convenience of the
parties.

 

 

STEP
III.                       The Step
III Committee shall hear all cases which have been unresolved in Step II and
said Committee shall consist of up to four (4) representatives of
management, one of which shall be the Plant Manager, and up to four (4) representatives
of the Local Unit.  In addition, a
representative of the International Union may sit in on any third step
hearing.  In the event that the dispute
is not resolved in the third step, the Union may file the said difference for
arbitration within ten (10) working days after the date of the third step
meeting.

 

Time
limitations in all steps may be waived by mutual agreement between the Union
and the Company.

 

Section 2.  If a grievance hereunder is referred to
arbitration, the parties will attempt to agree upon an arbitrator.  In the event agreement is not reached within
thirty (30) days, the parties will submit a joint request to the Federal
Mediation Service for a panel of arbitrators. 
If a grievance is submitted to arbitration, the decision of the
arbitrator shall be final and binding on both parties.

 

Section 3.  The arbitrator shall first determine the
arbitrability of any issue submitted.  No
issue shall be arbitrable unless said issue involves the meaning, application
of, or compliance with a specific provision or provisions of this Agreement.  The arbitrator shall not add to, subtract
from, or modify any of the provisions of this Agreement; and shall not reverse
management’s decision except when in his/her judgment, management has acted
without just cause.  The arbitrator’s
award shall in no case be retroactive beyond thirty (30) days prior to the
filing of the written grievance which constituted the issue in question.

 

The proper
expenses of the arbitrator and the arbitration proceedings shall be shared
equally by the parties.

 

Section 4.  All grievances must be filed within thirty
(30) working days from the date of their occurrence.  Grievances not so filed shall be deemed to
have been waived and shall not be raised thereafter.  Grievances resolved in either Step I, Step II
or Step III above shall be considered satisfactorily settled, closed on the
record, and shall not be reopened.

 

Section 5.  Grievances which shall arise between the
Union and the Company concerning employee discipline shall have priority over
all other cases under this Article of the Labor Agreement.  In a case involving suspension or discharge,
the Chairman of the Grievance Committee and the Human Resources Manager will schedule a
hearing within one (1) working day if requested by the Chairman of the
Grievance Committee.

 

Section 6.  Answer to grievances unresolved in Steps I, II
and III will be given within three (3) working days unless the time is
extended by mutual agreement.

 

Section 7.  The grievant and a witness may be present at
all steps of the grievance procedure.

 

 

 

Section 8.  By mutual agreement in writing, a grievance
may be initiated in the second or third step of the grievance procedure or
submitted directly to arbitration.

 

Section 9.  The time limitations herein shall not include
Saturdays, Sundays, holidays and may be extended at any time by mutual
agreement in writing by the representatives involved in each step.

 

Section 10.  If a grievance is not referred or appealed to
the next step within the specified time limit, it shall be considered settled
on the basis of the Company’s last answer.

 

Section 11.  Grievances heard at the 2nd Step
will be heard at the following times, dependent upon what shift the grievance
originated:

 

	
  1st shift

  	
  -

  	
  Any time during the shift

  
	
  2nd shift

  	
  -

  	
  2:00 p.m. or later

  
	
  3rd shift

  	
  -

  	
  7:30 a.m. or earlier

  

 

ARTICLE XXI

 

Check Off

 

The Company,
for those employees who have heretofore or hereafter by written authorization
so directed, shall deduct from the first pay of each month the proper Union
dues for the previous month, an initiation fee for new members, assessments, and
promptly remit same to the International Secretary-Treasurer of the Union.

 

Effective July 1, 1999, the Company agrees to accept written wage
assignment authorization of not less than one dollar ($1.00) from employees
providing for payroll deductions from their earnings for United Steelworkers of
America Political Action Fund (USWA-PAF). 
The Company shall remit monthly all monies so deducted to the
International Treasurer of the Union. 
The parties acknowledge that the costs of implementing and administering
the USWA-PAC check-off program would be an obligation of the Union and that the
estimated costs of such implementation and administration of the program have
been incorporated by the Company in its valuation of collective bargaining
negotiations settlements.

 

Any written authorization submitted is deemed to be an authorization
for the Company to deduct those dues, assessments and initiation fees as set
forth in the Union form as initialed at the date of the signing of the
Agreement.

 

The Union shall indemnify the Company and hold it harmless against any
and all suits, claims, demands and liabilities that shall arise out of or by
reason of any action that shall be taken by the Company for the purpose of
complying with the foregoing provisions of this Article.

 

 

ARTICLE XXII

 

Sub-Contracting

 

With respect
to production and maintenance work, including tooling which is regularly
performed by Bargaining Unit employees, the Company will endeavor to utilize
its available equipment and personnel before sub-contracting this work.  Where the Company determines the need for
sub-contracting, the reason shall be discussed with the Union prior to such
sub-contracting.

 

 

MEMORANDUM OF AGREEMENT

 

With respect to Green operations, if the Company elects to sub-contract
such work, the Company will establish its own Shipping Department within twelve
(12) months and transfer production of L&S rollers to Tyson by August, 2002
and add military packing jobs, which should total 8-12 jobs.  Over the next twenty-four (24) months, the
out-sourcing will affect jobs in Green Department, Cold Forming, and Tool Room,
for a total of twenty-six (26) jobs. 
This memorandum is agreed to on a non-precedent setting basis and in no
way affects either party’s position concerning sub-contracting under the
contract.  This memorandum will not be
used in any grievance or arbitration proceeding, unless it involves a dispute
concerning this memorandum.

 

ARTICLE XXIII

 

Termination and Notice

 

Section l.  This Agreement shall take effect as of
12:01 a.m. March 26,
2005, and shall continue in full
force and effect until 12:00 midnight, June 13,
2008.

 

a.                                       The parties agree to begin meeting at least
six (6) months prior to the expiration of the current agreement to begin
preparation for upcoming negotiations. 
The primary purpose of these meetings will be to determine the status of
employees who are or will be receiving a pension from SKF in regard to their
pensions and retiree insurance from Tyson Bearing Company, Inc., and the
costs involved with anticipated proposals in the upcoming negotiations
concerning these issues.  The Company
agrees to furnish information requested by the Union in order to prepare for
these discussions and prepare possible proposals.

 

 

Other issues relating to the upcoming negotiations
may also be discussed if both parties agree.

 

Section 2.  Termination.

 

a.                                       If either party
shall desire to terminate this Agreement, such party shall give written notice
to that effect to the other party hereto not less than sixty (60) calendar days
prior to June 13, 2008.  Negotiations shall begin within ten
(10) days subsequent to the receipt of the notice.

 

b.                                      Such notice
having been given, unless the parties hereto agree otherwise in writing, this
Agreement shall terminate 12:01 a.m., June 14, 2008.

 

Section 3.  Notice. 
The written notices provided for under this
Agreement shall be sent by registered mail. 
If sent by the Company, the notice shall be addressed to the Union at
its principal office for this district; and if sent by the Union, the notice
shall be addressed to the Company at Glasgow, Kentucky, unless either party
shall advise (by registered mail) of any change of address to which notices
should be sent.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives.

 

FOR
THE COMPANY:

TYSON
BEARING COMPANY, INC.

 

Robert
W. Crawford, Director Risk Management

Linda S. Hester, Human
Resources Manager

Billy Joe Martin, General Foreman

 

FOR
THE UNION:

UNITED
STEELWORKERS OF AMERICA

AFL-CIO,
CLC - On Behalf of its LOCAL UNION #7461-01

 

Leo W. Gerard, International
President

James English, International
Secretary-Treasurer

Thomas
Conway, International Vice President (Administration)

Leon Lynch, International Vice
President (Human Affairs)

Ernest R. Thompson, Director,
District 8

Frank Pittman, Sub-District
Director

Joe Villines, Staff
Representative

 

NEGOTIATING
COMMITTEE

Bobby R. Deckard, Unit
President 7461-01

Peggy
Barrett, Negotiating Committee

Sammy
Hunt, Negotiating Committee

 

 

Donald Isenberg,
Negotiating Committee

Thomas N. Samson, Negotiating Committee

Billy D. Wright,
Negotiating Committee Alternate

 

 

APPENDIX A

 

(Employees Hired Prior to March 31,
1996)

 

	
  Progression Steps

  	
   

  	
   

  	
   

  	
  Labor

  Grade

  	
   

  	
  Full Job

  Rate

  	
   

  
	
  1st

  	
   

  	
  2nd

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  $

  	
  2.70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2.70

  	
   

  
	
  $

  	
  2.67

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  2.77

  	
   

  
	
  2.74

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  2.84

  	
   

  
	
  2.86

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  2.97

  	
   

  
	
  2.98

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
  3.10

  	
   

  
	
  3.01

  	
   

  	
  3.13

  	
   

  	
   

  	
   

  	
  7

  	
   

  	
  3.25

  	
   

  
	
  3.16

  	
   

  	
  3.28

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
  3.41

  	
   

  
	
  3.30

  	
   

  	
  3.43

  	
   

  	
   

  	
   

  	
  9

  	
   

  	
  3.57

  	
   

  
	
  3.47

  	
   

  	
  3.61

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  3.76

  	
   

  
	
  3.74

  	
   

  	
  3.89

  	
   

  	
   

  	
   

  	
  11

  	
   

  	
  4.05

  	
   

  
	
  4.01

  	
   

  	
  4.17

  	
   

  	
   

  	
   

  	
  12

  	
   

  	
  4.34

  	
   

  
												

 

Effective 3/28/05, in
addition to the above scale, there will be add-ons of $13.20, per hour, for labor grades 1 through
9; $13.30, per hour, for labor
grade 10; $13.35, per hour, for
labor grade 11; and $13.40, per
hour, for labor grade 12.

 

Effective 3/27/06, in
addition to the above scale, there will be add-ons of $13.60, per hour, for labor grades 1 through
9; $13.70, per hour, for labor
grade 10; $13.75, per hour, for
labor grade 11; and $13.80, per
hour, for labor grade 12.

 

Effective 3/26/07, in
addition to the above scale, there will be add-ons of $13.95, per hour, for labor grades 1 through
9; $14.05, per hour, for labor
grade 10; $14.10, per hour, for
labor grade 11; and $14.15, per
hour, for labor grade 12.

 

 

 

 

PROGRESSION PERIODS PER STEP

 

 

	
  Labor Grades 3-4

  	
   

  	
  20 Working Days

  
	
  Labor Grades 5-8

  	
   

  	
  40 Working Days

  
	
  Labor Grades 9-12

  	
   

  	
  60 Working Days

  

 

 

W A G E   
S C H E D U L E

GLASGOW PLANT

(Base Rate Plus Add-on)

 

(Employees Hired Prior to March 31,
1996)

 

	
  Labor

  	
   

  	
  Effective

  	
   

  	
  Effective

  	
   

  	
  Effective

  	
   

  
	
  Grade

  	
   

  	
  3/28/05

  	
   

  	
  3/27/06

  	
   

  	
  3/26/07

  	
   

  
	
  1

  	
   

  	
  $

  	
  15.90

  	
   

  	
  $

  	
  16.30

  	
   

  	
  $

  	
  16.65

  	
   

  
	
  2

  	
   

  	
  15.90

  	
   

  	
  16.30

  	
   

  	
  16.65

  	
   

  
	
  3

  	
   

  	
  15.97

  	
   

  	
  16.37

  	
   

  	
  16.72

  	
   

  
	
  4

  	
   

  	
  16.04

  	
   

  	
  16.44

  	
   

  	
  16.79

  	
   

  
	
  5

  	
   

  	
  16.17

  	
   

  	
  16.57

  	
   

  	
  16.92

  	
   

  
	
  6

  	
   

  	
  16.30

  	
   

  	
  16.70

  	
   

  	
  17.05

  	
   

  
	
  7

  	
   

  	
  16.45

  	
   

  	
  16.85

  	
   

  	
  17.20

  	
   

  
	
  8

  	
   

  	
  16.61

  	
   

  	
  17.01

  	
   

  	
  17.36

  	
   

  
	
  9

  	
   

  	
  16.77

  	
   

  	
  17.17

  	
   

  	
  17.52

  	
   

  
	
  10

  	
   

  	
  17.06

  	
   

  	
  17.46

  	
   

  	
  17.81

  	
   

  
	
  11

  	
   

  	
  17.40

  	
   

  	
  17.80

  	
   

  	
  18.15

  	
   

  
	
  12

  	
   

  	
  17.74

  	
   

  	
  18.14

  	
   

  	
  18.49

  	
   

  
											

 

 

(Employees Hired After March 31, 1996)

 

	
  Progression Steps

  	
   

  	
   

  	
   

  	
  Labor

  Grade

  	
   

  	
  Full Job

  Rate

  	
   

  
	
  1st

  	
   

  	
  2nd

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  $

  	
  2.70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  2.70

  	
   

  
	
  $

  	
  2.67

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  2.77

  	
   

  
	
  2.74

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  2.84

  	
   

  
	
  2.86

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  2.97

  	
   

  
	
  2.98

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
  3.10

  	
   

  
	
  3.01

  	
   

  	
  3.13

  	
   

  	
   

  	
   

  	
  7

  	
   

  	
  3.25

  	
   

  
	
  3.16

  	
   

  	
  3.28

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
  3.41

  	
   

  
	
  3.30

  	
   

  	
  3.43

  	
   

  	
   

  	
   

  	
  9

  	
   

  	
  3.57

  	
   

  
	
  3.47

  	
   

  	
  3.61

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  3.76

  	
   

  
	
  3.74

  	
   

  	
  3.89

  	
   

  	
   

  	
   

  	
  11

  	
   

  	
  4.05

  	
   

  
	
  4.01

  	
   

  	
  4.17

  	
   

  	
   

  	
   

  	
  12

  	
   

  	
  4.34

  	
   

  
												

 

Effective 3/28/05, in
addition to the above scale, there will be add-ons of $10.45, per hour, for labor grades 1 through
9; $10.55, per hour, for labor
grade 10; $10.60, per hour, for
labor grade 11; and $10.65, per
hour, for labor grade 12.

 

Effective 3/27/06, in
addition to the above scale, there will be add-ons of $11.10, per hour, for labor grades 1 through
9; $11.20, per hour, for labor
grade 10; $11.25, per hour, for
labor grade 11; and $11.30, per
hour, for labor grade 12.

 

Effective 3/26/07, in
addition to the above scale, there will be add-ons of $11.70, per hour, for labor grades 1 through
9; $11.80, per hour, for labor
grade 10; $11.85, per hour, for
labor grade 11; and $11.90, per
hour, for labor grade 12.

 

PROGRESSION PERIODS PER STEP

 

	
  Labor Grades 3-4

  	
   

  	
  20 Working Days

  
	
  Labor Grades 5-8

  	
   

  	
  40 Working Days

  
	
  Labor Grades 9-12

  	
   

  	
  60 Working Days

  

 

 

W A G E   
S C H E D U L E

GLASGOW PLANT

(Base Rate Plus Add-on)

 

(Employees Hired After March 31, 1996)

 

	
  Labor

  	
   

  	
  Effective

  	
   

  	
  Effective

  	
   

  	
  Effective

  	
   

  
	
  Grade

  	
   

  	
  3/28/05

  	
   

  	
  3/27/06

  	
   

  	
  3/26/07

  	
   

  
	
  1

  	
   

  	
  $

  	
  13.15

  	
   

  	
  $

  	
  13.80

  	
   

  	
  $

  	
  14.40

  	
   

  
	
  2

  	
   

  	
  13.15

  	
   

  	
  13.80

  	
   

  	
  14.40

  	
   

  
	
  3

  	
   

  	
  13.22

  	
   

  	
  13.87

  	
   

  	
  14.47

  	
   

  
	
  4

  	
   

  	
  13.29

  	
   

  	
  13.94

  	
   

  	
  14.54

  	
   

  
	
  5

  	
   

  	
  13.42

  	
   

  	
  14.07

  	
   

  	
  14.67

  	
   

  
	
  6

  	
   

  	
  13.55

  	
   

  	
  14.20

  	
   

  	
  14.80

  	
   

  
	
  7

  	
   

  	
  13.70

  	
   

  	
  14.35

  	
   

  	
  14.95

  	
   

  
	
  8

  	
   

  	
  13.86

  	
   

  	
  14.51

  	
   

  	
  15.11

  	
   

  
	
  9

  	
   

  	
  14.02

  	
   

  	
  14.67

  	
   

  	
  15.27

  	
   

  
	
  10

  	
   

  	
  14.31

  	
   

  	
  14.96

  	
   

  	
  15.56

  	
   

  
	
  11

  	
   

  	
  14.65

  	
   

  	
  15.30

  	
   

  	
  15.90

  	
   

  
	
  12

  	
   

  	
  14.99

  	
   

  	
  15.64

  	
   

  	
  16.24

  	
   

  
											

 

 

 

APPENDIX B

 

Seniority Groups

 

	
  Group

  No.

  	
   

  	
  Group Name

  	
   

  	
  Job No.

  	
   

  	
  Job Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Assembly

  	
   

  	
  0431

  	
   

  	
  Assembler

  
	
   

  	
   

  	
   

  	
   

  	
  0515

  	
   

  	
  Finish Stores Attendant-Assembly

  
	
   

  	
   

  	
   

  	
   

  	
  0719

  	
   

  	
  Assembly Utility Person

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  General

  	
   

  	
  0200

  	
   

  	
  General Laborer

  
	
   

  	
   

  	
   

  	
   

  	
  0411

  	
   

  	
  Utility Laborer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Shipping/Receiving

  	
   

  	
  0509

  	
   

  	
  Material Handler-Mfg.

  
	
   

  	
   

  	
   

  	
   

  	
  0510

  	
   

  	
  Receiver/Shipper

  
	
   

  	
   

  	
   

  	
   

  	
  0608

  	
   

  	
  P.A. Stores-Receiving

  
	
   

  	
   

  	
   

  	
   

  	
  0724

  	
   

  	
  S&R Packer/Marking

  
	
   

  	
   

  	
   

  	
   

  	
  0813

  	
   

  	
  P.A. Receiving/Shipping

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Green

  	
   

  	
  0406

  	
   

  	
  SU&O Marking Machine

  
	
   

  	
   

  	
   

  	
   

  	
  0430

  	
   

  	
  SU&O Cold Saws

  
	
   

  	
   

  	
   

  	
   

  	
  0517

  	
   

  	
  SU&O Saws & Stampers

  
	
   

  	
   

  	
   

  	
   

  	
  0606

  	
   

  	
  Screw Machining Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0621

  	
   

  	
  Green Coolant Service Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning & Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
  0814

  	
   

  	
  SU&O Automatic Screw Machine

  
	
   

  	
   

  	
   

  	
   

  	
  0815

  	
   

  	
  SU&O CNC Lathes

  
	
   

  	
   

  	
   

  	
   

  	
  0902

  	
   

  	
  P.A. Machining

  
	
   

  	
   

  	
   

  	
   

  	
  0908

  	
   

  	
  SU&O CNC Lathes

  
	
   

  	
   

  	
   

  	
   

  	
  1104

  	
   

  	
  P.A. Machining

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Heat Treat

  	
   

  	
  0605

  	
   

  	
  Heat Treat Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0612

  	
   

  	
  Tool Hardener

  
	
   

  	
   

  	
   

  	
   

  	
  0721

  	
   

  	
  Heat Treat Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0722

  	
   

  	
  Tool Hardener

  
	
   

  	
   

  	
   

  	
   

  	
  0805

  	
   

  	
  Heat Treat P.A.

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool
  Repair & Control P.A.*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Inspection

  	
   

  	
  0300

  	
   

  	
  Bench Inspector

  
	
   

  	
   

  	
   

  	
   

  	
  0511

  	
   

  	
  Quality Inspector/Material Handler

  
	
   

  	
   

  	
   

  	
   

  	
  0603

  	
   

  	
  Tool & Gage Inspector-III

  
	
   

  	
   

  	
   

  	
   

  	
  0720

  	
   

  	
  Metallurgical Laboratory Technician

  
	
   

  	
   

  	
   

  	
   

  	
  0802

  	
   

  	
  Quality Auditor

  
	
   

  	
   

  	
   

  	
   

  	
  0803

  	
   

  	
  Tool & Gage Inspector-II

  
	
   

  	
   

  	
   

  	
   

  	
  0808

  	
   

  	
  Utility Inspector

  

 

 

	
  Group

  No.

  	
   

  	
  Group Name

  	
   

  	
  Job No.

  	
   

  	
  Job Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Inspection

  	
   

  	
  1003

  	
   

  	
  Tool & Gage Inspector-I

  
	
   

  	
   

  	
   

  	
   

  	
  1103

  	
   

  	
  Master Tool & Gage Inspector

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Maintenance

  	
   

  	
  APPE

  	
   

  	
  Apprentice Electronic/Electrician

  
	
   

  	
   

  	
   

  	
   

  	
  APPM

  	
   

  	
  Apprentice Machine Repair/Maintenance
  Mechanic

  
	
   

  	
   

  	
   

  	
   

  	
  0100

  	
   

  	
  Machine Preventative Maintenance Laborer

  
	
   

  	
   

  	
   

  	
   

  	
  0704

  	
   

  	
  Machine Repair/Maint.Mechanic-III

  
	
   

  	
   

  	
   

  	
   

  	
  0904

  	
   

  	
  Machine Repair/Maint.Mechanic-II

  
	
   

  	
   

  	
   

  	
   

  	
  1100

  	
   

  	
  Machine Repair/Maint.Mechanic-I

  
	
   

  	
   

  	
   

  	
   

  	
  1203

  	
   

  	
  Electronic/Electrician

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Tool Room

  	
   

  	
  APPT

  	
   

  	
  Apprentice Tool, Die & Gage Maker

  
	
   

  	
   

  	
   

  	
   

  	
  0401

  	
   

  	
  Tool Room Machine Operator-III

  
	
   

  	
   

  	
   

  	
   

  	
  0402

  	
   

  	
  Tool & Cutter Grinder-II

  
	
   

  	
   

  	
   

  	
   

  	
  0501

  	
   

  	
  Tool Room Machine Operator-II

  
	
   

  	
   

  	
   

  	
   

  	
  0602

  	
   

  	
  Tool & Cutter Grinder-I

  
	
   

  	
   

  	
   

  	
   

  	
  0701

  	
   

  	
  Tool Room Machine Operator-I

  
	
   

  	
   

  	
   

  	
   

  	
  0804

  	
   

  	
  Machinist-II

  
	
   

  	
   

  	
   

  	
   

  	
  1004

  	
   

  	
  Machinist-I

  
	
   

  	
   

  	
   

  	
   

  	
  1102

  	
   

  	
  Tool,
  Die & Gage Maker-II

  
	
   

  	
   

  	
   

  	
   

  	
  1202

  	
   

  	
  Tool,
  Die & Gage Maker-I

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Press

  	
   

  	
  0420

  	
   

  	
  O/O Single-Stage Press

  
	
   

  	
   

  	
   

  	
   

  	
  0616

  	
   

  	
  SU&O Phosphating

  
	
   

  	
   

  	
   

  	
   

  	
  0620

  	
   

  	
  SU&O Single-Stage Press

  
	
   

  	
   

  	
   

  	
   

  	
  0712

  	
   

  	
  Verson Line Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0716

  	
   

  	
  SU&O Cold Heading Machines

  
	
   

  	
   

  	
   

  	
   

  	
  0723

  	
   

  	
  Crib Attendant-Cage/Verson

  
	
   

  	
   

  	
   

  	
   

  	
  0903

  	
   

  	
  P.A. Verson Line

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool
  Repair & Control P.A.*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Roll Grind

  	
   

  	
  0503

  	
   

  	
  Grinding Machine Operator-Roll

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning & Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Roll

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool Repair & Control P.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Surface & O.D. Grind

  	
   

  	
  0611

  	
   

  	
  SU&O
  Surface/O.D. Grind

  
	
   

  	
   

  	
   

  	
   

  	
  0811

  	
   

  	
  P.A.
  Surface & O.D.

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool Repair & Control P.A.**

  

 

 

	
  Group

  No.

  	
   

  	
  Group Name

  	
   

  	
  Job No.

  	
   

  	
  Job Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Cup Grind

  	
   

  	
  0415

  	
   

  	
  Wash & Pack Cups

  
	
   

  	
   

  	
   

  	
   

  	
  0504

  	
   

  	
  Grinding Machine Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning & Control P.A.,
  Cup & Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Cup

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool Repair & Control P.A.**

  
	
   

  	
   

  	
   

  	
   

  	
  0906

  	
   

  	
  Line Mechanic-Grinding A-Cup &
  Cone

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Cone Grind

  	
   

  	
  0504

  	
   

  	
  Grinding Machine Operator

  
	
   

  	
   

  	
   

  	
   

  	
  0711

  	
   

  	
  Tool Planning & Control P.A.,
  Cup & Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0901

  	
   

  	
  Line Mechanic-Cone

  
	
   

  	
   

  	
   

  	
   

  	
  0905

  	
   

  	
  Tool Repair & Control P.A.**

  
	
   

  	
   

  	
   

  	
   

  	
  0906

  	
   

  	
  Line Mechanic-Grinding A-Cup &
  Cone

  

 

	
   

  	
  *

  	
  These jobs are inserted in the Groups 5 and 9 for bidding purposes
  only.

  
	
   

  	
  **

  	
  These jobs are inserted in Group 11 for bidding purposes only.

  

 

Wash &
Pack Cups, #0415, should be removed from Group #3, Shipping/Receiving, and
moved into Group #12, Cup Grind.  It is
understood that, as a result of this move, Classification #0415 will have
bumping rights back to Group #3 and the remaining classifications #0509, 0608,
and 0813, will have bumping rights to Group #12 (classification 0415).

 

 

(CALENDAR FOR 2005 ON THIS
PAGE)

 

 

(CALENDAR FOR 2006 ON THIS
PAGE)

 

 

(CALENDAR FOR 2007 THIS
PAGE)

 

 

(CALENDAR FOR 2008 ON THIS
PAGE)

 

 

REPORT-OFF PROCEDURE

 

If you are
going to be off or late for work, call 670-0099 at least two (2) hours
before start of shift.  Give the
following information:

 

System will
automatically record date and time of each call.

 

1.                    Your name.

 

2.                    Your clock number.

 

3.                    Your foreman’s name.

 

4.                    The reason for your absence or
tardiness, e.g. sickness, death of relative, car breakdown, etc..

 

5.                    When you will return to work.

 

 

If you cannot
reach the report-off number, you are expected to call the regular Plant number,
670-0000, and report off to your foreman.

 

HUMAN RESOURCES DEPARTMENT

 

 

MEMORANDUM OF AGREEMENT

 

This Agreement
is between TYSON BEARING COMPANY, INC., a wholly-owned subsidiary of Roller
Bearing Company of America, Inc. (hereinafter “the Company”) and the
UNITED STEELWORKERS OF AMERICA, AFL-CIO, on behalf of itself and the members of
its LOCAL UNION No. 7461 (hereinafter, individually and jointly, “the
Union”).

 

The Company is
about to purchase a portion (but not all) of the assets of a plant owned and
operated by SKF USA INC. (hereinafter “SKF”) at Glasgow, Kentucky (hereinafter “the
Glasgow plant”).  It is anticipated that
the asset purchase transaction will take place on a date on or before June 15,
1999 (hereinafter “the closing date”). 
It is anticipated that the Company will operate in a portion of the
Glasgow plant (hereinafter referred to as “the TYSON Glasgow facility”) and
that SKF will continue to operate in the remainder of the Glasgow plant.

 

Currently, the
Union and SKF are parties to a collective bargaining agreement covering a
bargaining unit of employees at the Glasgow plant (hereinafter “the labor
contract”).  The labor contract went into
effect on March 27, 1999, and, by its terms, is scheduled to terminate on March 29,
2002.

 

 

The Company
has decided to recognize the Union as the exclusive bargaining representative
of a bargaining unit consisting of certain persons it will employ in the  TYSON Glasgow facility (hereinafter the “TYSON
Bargaining Unit”) on and after the closing date and, at such time, to adopt the
labor contract as applicable to such TYSON Bargaining Unit, subject to this
Memorandum of Agreement.  The Union, in
turn, has agreed that the Company will replace SKF as the employer of the
persons the Union will represent in the TYSON Bargaining Unit under the labor
contract on and after the closing date.

 

The parties,
however, have agreed to certain modifications in the labor contract, effective
on the closing date.  The purpose of this
memorandum is to record the parties’ overall agreement, as follows:

 

I.              Recognition

 

The Company agrees that on the closing date
it will recognize the Union as the exclusive bargaining representative of the
TYSON Bargaining Unit at the Glasgow plant and will honor the terms of the
labor contract, as modified herein.  The
Union agrees to recognize the Company as the employer of the TYSON Bargaining
Unit under the terms of the labor contract with the rights of management
spelled out therein.  The Company agrees
to continue all benefits in the labor contract on behalf of the TYSON
Bargaining Unit except those that pertain
exclusively to the HUB operation at the Glasgow plant which will continue to be
operated by SKF.

 

II.            Pension

 

a)                                      It is mutually
agreed that the Pension Plan referred to in Article XV of the labor
contract (hereinafter “the SKF Pension Plan”) will be replaced, effective on
the closing date, by an equivalent plan sponsored by the Company.  The wording of the plan document and Article XV
will be subject to further discussions between the parties.

 

b)                                     It is
contemplated, however, that certain members of the bargaining unit, currently
employed by SKF, will retire under the SKF Pension Plan, prior to the closing
date, pursuant to the 30-Year Retirement without actuarial reduction
option (including these employees who are eligible to age into such option
pursuant to the 1999 amendments to the labor contract) described in a
Memorandum of Understanding between SKF and the Union or pursuant to an Early
Retirement option with actuarial reduction, based on age 55 years or older and
at least 10 years of service, and will thereafter confirm to the Company that
they are available for immediate employment in a TYSON Bargaining Unit position
at the Tyson Glasgow facility after the closing date.  The parties have agreed that such retirees
(hereinafter “retiree-applicants”) will be employed by the Company subject to
certain terms and conditions that differ from the terms and conditions
generally applicable under the labor contract.

 

 

III.           Retiree-Applicants

 

Retiree-applicants are subject to the
following conditions:

 

a)                                      They must confirm
their availability for employment by the Company not later than June 15,
1999 at 12:00 Noon.

 

b)                                     The Company agrees
to employ each retiree-applicant who satisfies the conditions spelled out in
subparagraph (a) above and to assign such retiree-applicants, commencing
on the closing date, to a position which is the same as the position he/she
held with SKF at the time he/she applied for retirement.

 

c)                                      Retiree-applicants
who accept the Company’s offer will be employed under the terms of the labor
contract, except as follows:

 

1.                    They shall not be subject to
typical preemployment processing nor shall they be subject to a probationary
period, but they shall be considered to be an employee hired after March 31,
1996, for purposes of Article XIV, Section 3., of the labor contract.

 

2.                    For purposes of insurance benefits
under Article XV, Section 4., they will be treated as employees hired
prior to March 27, 1993.

 

3.                    Their rights and obligations
pertaining to reduction in force, recall, transfers, filling of vacancies and
other such non-economic/non-financial provisions, shall not be affected by Article XVIII,
Section 3., of the labor contract.

 

4.                    They shall be eligible for two (2) weeks
of vacation benefits per year, in accordance with Article XVII of the
labor contract, and they shall not be eligible for any increase in annual
vacation benefits while employed by the Company except as set forth in
subparagraph 7. below.  This provision
shall be first effective for the vacation entitlements payable in the year
2000.

 

5.                    They may elect to forego medical
insurance coverage as described in Article XV, Section 4. of the
labor contract, in which event the Company will make an additional monthly
payment to them, as follows:

 

	
     -

  	
  Single

  	
  - $150.00, per month

  
	
     -

  	
  Married with or without dependents

  	
  - $250.00, per month

  

 

Such monthly payments, less deductions required by law, will remain in
effect unchanged while their employment continues, provided that, a change in
status (i.e. from single to married or vice versa) will result in a change in
the monthly amount.  A decision to forego
medical insurance coverage is not irrevocable,

 

 

but the employee’s ability to resume coverage at a later date is subject
to the terms of the policy and the determination of the carrier.

 

6.                    The closing date shall be their
first day of benefit service under the pension plan to be sponsored by the
Company as described in Paragraph II(a) above.

 

7.     (a)          In the event that, during
any fiscal year which occurs during the term of the labor contract, the Company’s
total production cost at the Tyson Glasgow facility exceeds $40 million, the
following shall occur prospectively for retiree-applicants who are still active
employees of the Company at the beginning of the succeeding fiscal year:

 

•                                          They
shall have their wage rates increased by $1.50, per hour.

 

•                                          They
shall have their annual vacation entitlement increased by one week.

 

In the event that during any such fiscal year, the Company’s total
production cost at the Tyson Glasgow facility exceeds $50 million, the
prospective enhancement of wage rates and vacation entitlement shall be the
following instead:

 

•                                          Wage
rates shall be increased by $3.00 per hour.

 

•                                          Vacation
eligibility under Article XVII, Section 2., of the labor contract
shall be determined by the employees’ full years of service, notwithstanding
the fact that they retired from SKF and were rehired by the Company as
hereinbefore provided.

 

(b)         It is mutually understood
that this paragraph 7. shall not operate so as to increase the wage rates of
retiree-applicants by more than $3.00 per hour in the aggregate during the term
of the labor contract nor shall it operate to increase the vacation entitlement
of retiree-applicants to more than four (4) weeks in any year of the labor
contract.

 

IN WITNESS WHEREOF, the Company and the Union have executed this
Agreement by their duly authorized representatives, this l0th day of June,
1999.

 

	
   

  	
   

  	
  UNITED
  STEELWORKERS OF AMERICA,

  
	
  TYSON BEARING COMPANY, INC. AFL-CIO

  	
   

  	
   

  
	
  By:       Michael S. Gostomski

  	
  By:

  	
  Joe Villines, Staff Representative

  
	
   

  	
   

  	
  Gary S. Bartley

  
	
   

  	
   

  	
  Twyman K. Appleby

  
	
   

  	
   

  	
  Dale Wright

  

 

 

MEMORANDUM OF UNDERSTANDING

 

This agreement
is between TYSON BEARING COMPANY, INC., a wholly-owned subsidiary of Roller
Bearing Company of America, Inc. (hereinafter “the Company”) and the
UNITED STEELWORKERS OF AMERIA, AFL-CIO, on behalf of itself and the members of
its LOCAL UNION NO. 7461 (hereinafter, individually and jointly, “the Union”).

 

The parties
have decided that certain eligible employees should have the option to forego
group medical insurance benefits under Article XV, section 4, of the
1999-2002 collective bargaining agreement (hereinafter “the active
employees’ plan”), in return for a monthly cash payment by the Company.  The Company represents that the coverage an
electing eligible employee will receive under this Agreement and the SKF USA,
INC. plan will be at least equivalent to the coverage he/she would receive
under the active employees’ plan, and in the event some disparity occurs, the
Company will take the steps necessary to eliminate the difference.  The following additional conditions shall
apply:

 

1.             Such option shall
be entirely voluntary on the employee’s part.

 

2.             An employee shall
be eligible to exercise such option if he/she is a “retiree-applicant” within
the meaning of the June, 1999 Memorandum of Agreement between the parties and
is thereby eligible for coverage under the SKF USA, INC. group medical
insurance plan, which includes transition to a Medicare supplement plan when
the employee or dependent becomes Medicare-eligible.

 

3.             In order to
exercise such option, an eligible employee must voluntarily execute the written
waiver of insurance specified under the active employees’ plan.

 

4.             An eligible
employee who voluntarily executes the written waiver of insurance shall receive
additional monthly salary in the following amounts, less deductions required by
law:

 

	
  -

  	
  Single

  	
   

  	
  $100.00 per month

  
	
  -

  	
  Dependents, married and/or eligible children

  	
   

  	
  $200.00 per month

  

 

 

5.             Such monthly
payments will remain in effect unchanged while the electing employee continues
to be employed by the Company, provided that, a change in status (e.g. from
single to married or vice versa) will result in a change in the monthly amount.

 

6.             A decision to
forego Company-paid group medical insurance coverage is not irrevocable.  However, the employee’s ability to resume
coverage at a later date is subject to the terms of the policy, the
determination of the carrier and applicable provisions of controlling State or
Federal law.

 

7.             An employee who
exercises such option shall remain eligible for Company-paid prescription drug
and dental insurance coverage under Article XV, section 4, of the
1999-2002 collective bargaining agreement.

 

8.             At the time an
employee who exercises such option subsequently terminates his/her employment
with the Company, the Company will pay to him/her, in a lump sum, an amount
equal to the aggregate cost of the expenses covered by the SKF USA, INC. Major
Medical lifetime maximum during the period of time that such option to forego
active employees’ plan coverage was in effect. 
The Company will at the same time also pay to such employee an
additional amount necessary to cover the employee’s federal and/or state income
tax liability, if any, on such lump sum payment.  The employee is required to submit
documentation acceptable to the Company indicating the amount of covered
medical expenses which have been charged to such lifetime maximum.

 

9.             In addition, at any
time an employee who exercises such option incurs covered medical expenses
which exceed the SKF USA, INC. Major Medical lifetime maximum while such option
is in effect, the Company will pay to the employee, in a lump sum, an amount
equal to the aggregate cost of such excess covered expenses, plus an additional
amount necessary to cover the employee’s federal and/or state income tax
liability, if any, on such lump sum payment. 
The employee is required to submit documentation acceptable to the
Company regarding such expenses.

 

IN WITNESS
WHEREOF, the Company and the Union have executed this Agreement this 29 day of
June, 2000.

 

	
   

  	
   

  	
  UNITED
  STEELWORKERS OF AMERICA,

  
	
  TYSON BEARING COMPANY, INC. AFL-CIO

  	
   

  	
   

  
	
  By       E. P. Trouteaud

  	
  By

  	
  Joe Villines

  
	
   

  	
   

  	
  Bobby R. Deckard

  
	
   

  	
   

  	
  Charles Wayne Eaton

  

 

 

MEMORANDUM OF AGREEMENT

 

The Company
agrees to restore one (1) week of vacation effective June 1, 2002 to
the Retiree-applicants (per Memorandum of Agreement dated June 10, 1999).

 

In addition,
those Retiree-applicants subject to the Memorandum of Agreement dated June 10,
1999, who are not receiving full pension from SKF will receive an

 

 

additional $1.00, per hour,
effective June 1, 2002; another $1.00, per hour, effective April 1,
2003; and another $1.00, per hour, effective April 1, 2004.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives:

 

	
  TYSON BEARING COMPANY, INC.

  	
   

  	
  UNITED STEELWORKERS OF AMERICA,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert W. Crawford, Director
  Risk Management

  	
   

  	
  Leo W. Gerard, International President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Linda S. Hester, Human Resources Manager

  	
   

  	
  James English, International Secretary-Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Billy Joe Martin, General
  Foreman

  	
   

  	
  Thomas Conway,
  Internatinal Vice President

  
	
   

  	
   

  	
  (Administration)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Leon Lynch, International Vice President

  
	
   

  	
   

  	
  (Human Affairs)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ernest R. Thompson, Director, District 8

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Frank D. Pittman, Sub Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Joe Villines, Staff Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LOCAL UNION COMMITTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bobby R. Deckard, Unit President 7461-01

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Peggy Barrett,
  Negotiating Committee

  

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sammy Hunt,
  Negotiating Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Donald Isenberg,
  Negotiating Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thomas N. Samson, Negotiating Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Billy D. Wright, Negotiating
  Committee AlternateExhibit
10.36

 

RBC
Bearings Incorporated

One Tribology Center

Oxford, CT  06478

 

June 17, 2005

 

Whitney & Co.

177 Broad Street

Stamford, CT  06901

Dr. Michael J. Hartnett

c/o RBC Bearings Incorporated

One Tribology Center

Oxford, CT  06478

	
  Re:

  	
   

  	
  IPO Equity/Shareholder Matters

  

 

Gentlemen:

                This letter memorializes the resolution of a number
of issues concerning the recapitalization (the “Recapitalization”) of RBC Bearings Incorporated (the “Company”) to be effectuated in
connection with and immediately prior to the closing of the proposed initial
public offering of the Company’s common stock (the “IPO”). 
Based on the resolution of these issues as described herein, the
Company, Dr. Hartnett and Whitney & Co. (together with its affiliates,
“Whitney”) are prepared to
move forward on the IPO.  Capitalized
terms used but not defined herein shall have the meanings set forth in the
Existing Charter (as described below).

1.             Transaction.  The Company shall endeavor to consummate an
IPO resulting in aggregate gross proceeds to the Company and the Selling
Stockholders (as defined below) of at least $125 million.  The IPO shall be contingent upon the
contemporaneous closing of a refinancing transaction resulting in additional
net proceeds to the Company (after the repayment of existing indebtedness) of
not less than $30 million (the “Refinancing”).  The proceeds of the Refinancing shall be
combined with proceeds from the IPO (and, if required, proceeds from a
borrowing under the revolver) and used for the purposes described in the
proposed sources and uses of funds attached hereto as Exhibit A.

2.             Selling Stockholders.  Notwithstanding anything to the contrary set
forth in the Stockholders’ Agreement, the parties agree that the stockholders
of the Company identified in Exhibit B (the “Selling Stockholders”) shall be
permitted to sell shares of New Common Stock in the IPO (the “Secondary Sale”), including shares
received by Dr. Hartnett and members of management upon the cashless exercise
of outstanding options and/or warrants. 
Subject to paragraph 3 below and the approval of the managing
underwriter, the Selling Stockholders shall sell in the relative proportions
described in Exhibit B (the “Secondary Sale Allocation”).  Whitney and Dr. Hartnett hereby waive
compliance with the applicable provisions of the Stockholders’ Agreement to the
extent required to give effect to the arrangement described in this paragraph.

 

 

3.             Adjustments to Size of Offering.  As a general rule, Whitney and Hartnett agree
that (i) if the underwriters exercise their “over-allotment” option with
respect to the IPO (the “Shoe”),
the net proceeds thereof shall be paid solely to the Company and not to the
Selling Stockholders and (ii) if market conditions require the size of the
offering to be reduced, any reduction in aggregate IPO proceeds payable to the
Selling Stockholders shall be allocated among the Selling Stockholders on a pro rata basis according to the relative
proportions set forth in the Secondary Sale Allocation.  Notwithstanding the foregoing, Whitney and
Hartnett have agreed with the underwriter to establish a price range for the
Offering of $14-$16 per share, and based on such range and revisions to the IPO
structure mutually agreed upon with the underwriter, Whitney and Hartnett have
further agreed to reduce the size of the Secondary Sale by 417,000 shares in
the aggregate, to be allocated among the Selling Stockholders in accordance
with clause (ii) above; provided, however, that if the
underwriters exercise the Shoe, then the Selling Stockholders shall be entitled
to sell an aggregate of 417,000 shares pursuant to the Shoe (to be allocated
among the Selling Stockholders in accordance with clause (ii) above).  The foregoing revisions to the IPO structure
is summarized in Exhibit C hereto. 
The parties acknowledge and agree that the details of Exhibit C
are subject to further negotiation based on the marketability of the IPO and
the advise of the managing underwriter, and the parties agree to work in good
faith with each other and the managing underwriter with respect to such
negotiations.

4.             Class B Preferred.  Immediately prior to the consummation of the
Recapitalization, all outstanding shares of Class B Preferred Stock shall be
converted in accordance with their terms. 
Upon such conversion, the holders thereof shall receive shares of Class
C Preferred Stock, Class D Preferred Stock and Class A Common Stock, in each
case in amounts determined in accordance with the Company’s amended and
restated certificate of incorporation in effect immediately prior to the
Recapitalization (the “Existing Charter”).

5.             Class C Preferred.  Pursuant to the Recapitalization, the Company
shall redeem all of the outstanding shares of Class C Preferred Stock for an
aggregate cash redemption price equal to the Class C Liquidation Amount
determined in accordance with the Existing Charter through the date of
repurchase.  An example of the
calculation of the Class C Liquidation Amount as of June 30, 2005 is attached
hereto as Exhibit D.

6.             Class D Preferred.  The parties hereto acknowledge that market
expectations will not permit the Class D Preferred Stock to remain outstanding
after the IPO.  Therefore, the Company
shall treat the IPO as a Sale of the Company in which the aggregate Class D
Liquidation Amount is equal to $8 million. 
Pursuant to the Recapitalization, the Company shall repurchase all of
the outstanding Class D Preferred Stock for an aggregate repurchase price equal
to $8 million, $4 million of which shall be paid in cash and $4 million of
which shall be paid in shares of Class A Common Stock to be determined based on
the IPO offering price to the public (without any reduction for underwriters’
discounts, commissions or fees) (the “IPO Price”).  Solely for purposes of the IPO and the
Recapitalization, Whitney and Dr. Hartnett hereby irrevocably agree to the
foregoing calculation of the Class D Liquidation Amount and, subject to the
payment in full of the repurchase price described above, hereby waive all
rights they may have under the Existing Charter with respect thereto.  It is expressly agreed that if the IPO is not
consummated, the calculation of the Class D liquidation Amount described in
this paragraph shall be of no legal effect or consequence and shall not be binding
on any party.

 

2

 

7.             Single Class of Common Stock.  In connection with the IPO, the Company shall
establish a single class of common stock (the “New Common Stock”) entitling the holders thereof to one
vote per share with respect to all matters to be voted on by the Company’s
stockholders.  As a result, all
outstanding shares of Class A Common Stock and Class B Common Stock shall be
converted into New Common Stock, and all outstanding options and warrants that
are exercisable for Class A Common Stock or Class B Common Stock shall become
exercisable for shares of New Common Stock. 
Dr. Hartnett expressly acknowledges and agrees that, as a result of the
foregoing, the super-voting rights of the Class B Common Stock shall be
eliminated.

8.             Recapitalization.  Immediately prior to the closing of the IPO,
the Company will give effect to the Recapitalization, which will proceed
substantially as follows:

a.                                       Pursuant to a Repurchase and Exchange
Agreement to be entered into by the Company and the holders of Series C
Preferred Stock and Series D Preferred Stock, (i) the Company shall redeem all
of the outstanding shares of Class C Preferred Stock for an aggregate cash
repurchase price equal to the Class C Liquidation Amount determined in
accordance with the Existing Charter through the date of repurchase, and (ii)
the Company shall repurchase all of the outstanding shares of Class D Preferred
Stock for an aggregate repurchase price equal to $8 million,  payable as follows: (A) $4 million shall be
paid in cash, and (B) $4 million shall be paid by issuance to the holders of
the Class D Preferred Stock of an aggregate number of shares of Class A Common
Stock determined by dividing $4 million by the IPO Price.

b.                                      The Company shall amend and restate the
Existing Charter in order to, among other things, (i) eliminate all existing
classes and series of capital stock, (ii) authorize the New Common Stock and a
new class of “blank check” preferred stock, and (iii) reclassify all
outstanding shares of Class A Common Stock and Class B Common Stock (including
shares issued to the holders of Class C Preferred Stock and Class D Preferred
Stock as described in paragraphs 4 and 6 above) to the effect that all of such
shares shall be converted into shares of New Common Stock on a 1:1 basis
(subject to adjustment to reflect any stock split or reverse stock split
required in connection with the IPO).

9.             Termination of Management Services
Agreement.  Upon the
closing of the IPO, the Amended and Restated Management Services Agreement
dated as of July 29, 2002 between Roller Bearing Company of America, Inc. (“RBCA”) and Whitney & Co. (as
amended) shall be terminated; provided that such termination shall be
contingent upon the Company’s or RBCA’s prior payment of all amounts due and
owing thereunder through the date of termination.

10.           Option Plans.  Upon the closing of the IPO, all existing
option plans of the Company shall be frozen, such that no further awards or
grants shall be made thereunder.  In
addition, a new long-term incentive plan shall be established pursuant to which
options or other equity awards may be granted with respect to 6% of the
Company’s post-IPO fully-diluted common stock (the “New Option Pool”).  Sixty percent (60%) of the New Option Pool
shall be awarded to Dr. Hartnett and the remaining 40% shall be awarded to
other employees of the Company at the discretion of the board of directors.

 

3

 

11.           Tax Settlement/Bonus.  Dr. Hartnett represents to the Company and Whitney
that he has initiated settlement (the “Settlement”)
of a dispute between himself and the Internal Revenue Service with respect to a
transaction he entered into with a family partnership.  The Company has been advised by its
accountants that the Settlement will create compensation deductions for the
Company and, therefore, will result in a significant tax benefit to the Company
(the ”Company Tax Benefit”).  In light of the foregoing, the parties agree
as follows:

a.                                       Contingent upon approval of the Board of
Directors and RBCA’s senior and SCIL lenders, (i) RBCA shall pay to
Hartnett a one-time special cash bonus in the amount of $5,200,000 (the ”Settlement Bonus”), (ii) RBCA
shall reduce Hartnett’s base salary for Fiscal Year 2006 by the amount of
$180,000 (such reduction to be applied evenly across all remaining payments for
such period), and (iii) in addition to any other bonus to which Hartnett
may be eligible or entitled to receive pursuant to his employment agreement,
RBCA shall pay Hartnett a special cash bonus in the amount of $45,000 for each
of the Fiscal Years 2007 - 2010 (each, a “Special
Bonus”).  The Settlement
Bonus and each Special Bonus shall be paid in accordance with RBCA’s general
payroll practices and shall be subject to all applicable withholdings.

b.                                      The Settlement Bonus shall be paid on or
prior to June 30, 2005, and a portion of such bonus shall be paid by RBCA
directly to the Internal Revenue Service, on Hartnett’s behalf, for credit
against taxes owed under the Settlement. 
Such portion shall equal the lesser
of (x) $3,564,600 and (y) the aggregate net amount of the Settlement Bonus
available to be paid to Hartnett after giving effect to all required
withholdings.

c.                                       Hartnett shall not rescind, revoke, amend
or modify the Settlement or take any other action which, in each case, could
result in the Company losing all or any portion of the Company Tax Benefit
without obtaining the prior written consent of Whitney and the disinterested
members of the Board of Directors.

d.                                      The parties shall support any amendment
to Hartnett’s employment agreement to the extent required to give effect to the
Special Bonuses.

e.                                       Except as expressly set forth in this
paragraph 11, Hartnett shall not be entitled to any compensation whatsoever
(whether paid in cash or through the issuance of options or equity or
equity-linked securities) as a result of, in connection with or relating to the
Settlement.

12.           Miscellaneous.

a.                                       THIS LETTER AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW OR CHOICE OF LAW.

b.                                      This letter agreement contains the
complete agreement among the parties hereto and supersede any prior understandings,
agreements or representations by or among the parties hereto, written or oral,
that may have related to the subject matter hereof in any way.

 

4

 

c.                                       If (i) any provision of this letter
agreement shall be held or deemed to be, or shall in fact be, invalid,
inoperative or unenforceable because of the conflict of such provision with any
constitution or statute or rule of public policy or for any other reason, or
(ii) the managing underwriters require any provision of this letter agreement
to be disregarded or revised in order to ensure the successful marketing of the
IPO, then in each case such circumstance shall not have the effect of rendering
any other provision or provisions herein contained invalid, inoperative or
unenforceable, but this letter agreement shall be reformed and construed as if
such invalid, inoperative, unenforceable, disregarded or revised provision had
never been contained herein and such provision reformed so that it would be
valid, operative and enforceable to the maximum extent permitted.

d.                                      The parties hereto have participated
jointly in the negotiation and drafting of this letter agreement.  In the event an ambiguity or question of
intent or interpretation arises, this letter agreement will be construed as if
drafted jointly by the parties hereto, and no presumption or burden of proof
will arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this letter agreement.

e.                                       This letter agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

f.                                         Nothing herein is intended or shall be
construed to confer upon any person or entity other than the parties hereto and
their successors or assigns, any rights or remedies under or by reason of this
letter agreement.

* * *

[Signature page follows]

 

5

 

If you are in agreement
with the foregoing, please execute a copy of this letter in the space provided
below and return it to the Company.

 

	
  Very truly yours,

  
	
   

  
	
  RBC BEARINGS INCORPORATED

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  Accepted and agreed to as of June __, 2005, by:

  
	
   

  
	
  ROLLER BEARING COMPANY OF AMERICA, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  WHITNEY & CO.

  
	
  (on behalf of itself and its affiliates)

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  	
   

  
	
  Dr. Michael J. Hartnett

  
	
  (on behalf of himself and Hartnett Family Investments, L.P.)

  

 

 

6

 

Exhibit
A

Sources and Uses of Funds

 

(see attached)

 

 

Exhibit
B

Selling Stockholders

 

	
  STOCKHOLDER

  	
   

  	
  PROCEEDS OF NEW COMMON STOCK TO BE SOLD IN IPO
  (A)

  
	
  Whitney
  (together with its affiliates)

  	
   

  	
  $20.0 million

  
	
  Hartnett
  (together with his affiliates)

  	
   

  	
  $15.6 million

  
	
  Other Management

  	
   

  	
  $4.4 million

  
	
  TOTAL

  	
   

  	
  $40.0 million

  

 

(A)  Assumes
$125 million total offering size based on a $275 million post-IPO equity
value.  Includes shares to be sold by
Hartnett and other members of management following cashless exercise of options/warrants.  Does not include proceeds to be received in
connection with redemption or repurchase of Class C Preferred Stock or Class D
Preferred Stock.

 

Exhibit
C

IPO Restructure as of
June 17, 2005

 

(see attached)

Exhibit
D

Example of Calculation of
Series C Liquidation Amount

 

(see attached)

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