Document:

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ABF Freight System, Inc.

Collective Bargaining Agreement 

The                                          (Company or Association) hereinafter referred to as the EMPLOYER and
the TEAMSTERS NATIONAL FREIGHT INDUSTRY NEGOTIATING COMMITTEE representing Local Unions affiliated
with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, and Local Union
No.____ which Local Union is
an affiliate of the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, agree to be bound by the terms and
conditions of this Agreement.

ARTICLE 1.

PARTIES TO THE AGREEMENT

Section 1. Employers Covered

The Employer consists of Associations, members of Associations who have given authorization to the
Associations to represent them in the negotiation and/or execution of this Agreement and
Supplemental Agreements, and individual Employers who become signator to this Agreement and
Supplemental Agreements as hereinafter set forth. The signator Associations enter into this
Agreement and Supplemental Agreements as hereinafter set forth. The signator Associations represent
that they are duly authorized to enter into this Agreement and Supplemental Agreements on behalf of
their members under and as limited by their authorizations as submitted prior to negotiations.

Section 2. Unions Covered

The Union consists of any Local Union which may become a party to this Agreement and any
Supplemental Agreement as hereinafter set forth. Such Local Unions are hereinafter designated as
“Local Union.” In addition to such Local Unions, the Teamsters National Freight Industry
Negotiating Committee representing Local Unions affiliated with the International Brotherhood of
Teamsters, hereinafter referred to as the “National Union Committee,” is also a party to this
Agreement and the agreements supplemental hereto.

Section 3. Transfer of Company Title or Interest

The Employer’s obligations under this Agreement including Supplements shall be binding upon its
successors, administrators, executors and assigns. The Employer agrees that the obligations of this
Agreement shall be included in the agreement of sale, transfer or assignment of the business. In
the event an entire active or inactive operation, or a portion thereof, or rights only, are sold,
leased, transferred or taken over by sale, transfer, lease, assignment, receivership or bankruptcy
proceedings, such operation or use of rights shall continue to be subject to the terms and
conditions of this Agreement for the life thereof. Transactions covered by provision include stock
sales or exchanges, mergers, consolidations, spinoffs or any other method by which a business is
transferred.

It is understood by this Section that the signator Employer shall not sell, lease or transfer such
run or runs or rights to a third party to evade this Agreement. In the event the Employer fails to
require the purchaser, transferee, or lessee to assume the obligations of this Agreement, as set
forth above, the Employer (including partners thereof) shall be liable to the Local Union(s) and to
the employees covered for all damages sustained as a result of such failure to require the
assumption of the terms of this Agreement until its expiration date, but shall not be liable after
the purchaser, the transferee or lessee has agreed to assume the obligations of this Agreement. The
obligations set forth above shall not apply in the event of the sale, lease or transfer of a
portion of the rights comprising less than all of the signator Employer’s rights to a nonsignator
company unless the purpose is to evade this Agreement. Corporate reorganizations by a signatory
Employer, occurring during the term of this Agreement, shall not relieve the signatory Employer or
the reorganized Employer of the obligations of this Agreement during its term.

When a signator to this Agreement purchases rights from another signator, the provisions of Article
5 shall apply. The applicable layoff provisions of this Agreement shall apply.

The Employer shall give notice of the existence of this Agreement to any purchaser, transferee,
lessee, assignee, or other entity involved in the sale, merger, consolidation, acquisition,
transfer, spinoff, lease or other transaction by which the operation covered by this Agreement or
any part thereof, including rights only, may be transferred. Such

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notice shall be in writing, with a copy to the Local Union, at the time the seller, transferor or
lessor makes the purchase and sale negotiation known to the public or executes a contract or
transaction as herein described, whichever first occurs. The Local Union shall also be advised of
the exact nature of the transaction, not including financial details.

The term rights shall include routes and runs.

ARTICLE 2.

SCOPE OF AGREEMENT

Section 1. Master Agreement

The execution of this National Master Freight Agreement on the part of the Employer shall apply to
all operations of the Employer which are covered by this Agreement and shall have application to
the work performed within the classifications defined and set forth in the Agreements supplemental
hereto.

Section 2. Supplements to Master Agreement

     (a) There are several segments of the trucking industry covered by this Agreement and for this
reason Supplemental Agreements are provided for each of the specific types of work performed by the
various classifications of employees controlled by this Master Agreement.

All such Supplemental Agreements are subject to and controlled by the terms of this Master
Agreement and are sometimes referred to herein as “Supplemental Agreements.”

All such Supplemental Agreements are to be clearly limited to the specific classifications of work
as enumerated or described in each individual Supplement.

In all cases involving the transfer of work and/or the merger of operations subject to the
provisions of Article 8, Section 6 or Article 5, Section 2, where more than one Supplemental
Agreement is involved and one or more of them contains provisions contrary to those set forth in
Article 8, Section 6 or Article 5, Sections 2, the applicable terms and conditions of the NMFA
shall supersede those of the contrary Supplemental Agreements, including the resolution of any
seniority related grievances that may arise following approval of the involved transfer of work
and/or merger of operations.

     (b) The parties shall establish four (4) Regional Area Iron and Steel and/or Truckload
Supplements to the National Master Freight Agreement.

The Employer and the Local Union, parties to this Agreement, may enter into an agreement whereby
road drivers working under an Over-the-road Supplemental Agreement have the opportunity to perform
work covered by and subject to the above Regional Area Supplements, under conditions agreed upon.
Such Supplement shall be submitted to the appropriate Regional Joint Area Committee.

     (c) The jurisdiction covered by the National Master Freight Agreement and its various
Supplements thereto includes, without limitation, stuffing, stripping, loading and discharging of
cargo or containers. This does not include loading or discharging of cargo or containers to or from
vessels except in those instances where such work is presently being performed. Existing practices,
rules and understandings, between the Employer and the Union, with respect to this work shall
continue except to the extent modified by mutual agreement.

Section 3. Non-covered Units

This Agreement shall not be applicable to those operations of the Employer where the employees are
covered by a collective bargaining agreement with a Union not signatory to this Agreement, or to
those employees who have not designated a signatory Union as their collective bargaining agent.

Card Check

     (a) When a majority of the eligible employees performing work covered by an Agreement
designated by the National Negotiating Committee to be Supplemental to the National Master Freight
Agreement execute a card

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authorizing a signatory Local Union to represent them as their collective bargaining agent at the
terminal location, then, such employees shall automatically be covered by this Agreement and the
applicable Supplemental Agreements. If an Employer refuses to recognize the Union as above set
forth and the matter is submitted to the National Labor Relations Board or any mutually agreed upon
process for determination, and such determination results in certification or recognition of the
Union, all benefits of this Agreement and applicable Supplements shall be retroactive to the date
of demand for recognition. In such cases the parties may by mutual agreement negotiate wages and
conditions, subject to Regional Joint Area Committee approval.

The parties agree that a constructive bargaining relationship is essential to efficient operations
and sound employee relations. The parties recognize that organizational campaigns occur in
bargaining relationships and that both parties are free to accurately state their respective
positions concerning the organization of certain groups of employees. However, the parties also
recognize that campaigns must be waged on the facts only. Accordingly, the parties will not engage
in any personal attacks against Union or Company representatives or attacks against the Union or
Company as an institution during the course of any such campaign.

Additions
to Operations: Over-the-road and Local Cartage Supplemental Agreements

     (b) Notwithstanding the foregoing paragraph, the provisions of the National Master Freight
Agreement and the applicable Over-the-road and Local Cartage Supplemental Agreements shall be
applied without evidence of union representation of the employees involved, to all subsequent
additions to, and extensions of, current operations which adjoin and are controlled and utilized as
a part of such current operation, and newly established terminals and consolidations of terminals
which are controlled and utilized as a part of such current operation.

If an Employer refuses to recognize the Union as above set forth and the matter is submitted to the
National Labor Relations Board or any mutually agreed upon process for determination, and such
determination results in certification or recognition of the Union, all benefits of this Agreement
and applicable Supplements shall be retroactive to the date of demand for recognition.

The provisions of Article 32 Subcontracting, shall apply to this paragraph. Extensions or
additions to current operations, etc., which adjoin and are controlled and utilized as part of such
current operation shall be subject to the jurisdiction of the appropriate Change of Operations
Committee for the purpose of determining whether the provisions of Article 8, Section 6 Change of
Operations, apply and, if so, to what extent.

Section 4. Single Bargaining Unit

The employees, Unions, Employers and Associations covered under this Master Agreement and the
various Supplements thereto shall constitute one (1) bargaining unit and contract. It is understood
that the printing of this Master Agreement and the aforesaid Supplements in separate Agreements is
for convenience only and is not intended to create separate bargaining units.

This National Master Freight Agreement applies to city and road operations, and other
classifications of employment authorized by the signatory Employers to be represented by Employer
Associations or Employers, where applicable, participating in national collective bargaining. The
common problems and interest, with respect to basic terms and conditions of employment, have
resulted in the creation of the National Master Freight Agreement and the respective Supplemental
Agreements. Accordingly, the Associations and Employers, parties to this Agreement, acknowledge
that they constitute a single national multiemployer collective bargaining unit, composed of the
Associations named hereinafter and those Employers authorizing such associations to represent them
for the purpose of collective bargaining, and solely to the extent of such authorization, and such
other individual employers which have, or may, become parties to this Agreement.

Section 5. Riders

Upon the effective date of this Agreement, all existing or previously adopted Riders which provide
less than the wages, hours, and working conditions specifically established by this Agreement and
Supplemental Agreements shall become null and void. Thereafter, the specific provisions of this
Agreement and applicable Supplemental Agreements shall apply without being subject to variance by
Riders. This Section shall not be applied or interpreted to eliminate operational, dispatch, or
working rules not specifically set forth in this Agreement and
Supplemental Agreements.

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ARTICLE 3.

RECOGNITION, UNION SHOP AND

CHECK-OFF

Section 1. Recognition

     (a) The Employer recognizes and acknowledges that the Teamsters National Freight Industry
Negotiating Committee and Local Unions affiliated with the International Brotherhood of Teamsters
are the exclusive representatives of all employees in the classifications of work covered by this
National Master Freight Agreement, and those Supplements thereto approved by the Joint National
Negotiating Committees for the purpose of collective bargaining as provided by the National Labor
Relations Act.

Subject to Article 2, Section 3 Non-covered Units, this provision shall apply to all present and
subsequently acquired over-the-road and local cartage operations and terminals of the Employer.

This provision shall not apply to wholly owned and wholly independently operated subsidiaries which
are not under contract with local IBT unions. “Wholly independently operated” means, among other
things, that there shall be no interchange of freight, equipment or personnel, or common use, in
whole or in part, of equipment, terminals, property, personnel or rights.

Union Shop

     (b) All present employees who are members of the Local Union on the effective date of this
subsection or on the date of execution of this Agreement, whichever is the later, shall remain
members of the Local Union as a condition of employment. Union membership for purposes of this
Agreement, is required only to the extent that employees must pay either (i) the Union’s initiation
fees and periodic dues or (ii) service fees which in the case of a regular service fee payer shall
be equal to the Union’s initiation fees and periodic dues, and in the case of an objecting service
fee payer shall be the proportion of the initiation fees and dues corresponding to the portion of
the Union’s total expenditures that support representational activities. All present employees who
are not members of the Local Union and all employees who are hired hereafter shall become and
remain members of the Local Union as a condition of employment on and after the thirty-first (31st)
calendar day following the beginning of their employment or on and after the thirty-first (31st)
calendar day following the effective date of this subsection or the date of this Agreement,
whichever is the later. An employee who has failed to acquire, or thereafter maintain, membership
in the Union as herein provided, shall be terminated seventy-two (72) hours after his/her Employer
has received written notice from an authorized representative of the Local Union, certifying that
membership has been, and is continuing to be, offered to such employee on the same basis as all
other members and, further, that the employee has had notice and opportunity to make all dues or
initiation fee payments. This provision shall be made and become effective as of such time as it
may be made and become effective under the provisions of the National Labor Relations Act, but not
retroactively.

For purposes of this Article, “present employees” and “employees who are hired hereafter” shall
include “casual employees” as defined in Article 3, Section 2 of this Agreement. Such “casual
employees” will be required to join the Union prior to their employment on or after the
thirty-first (31st) calendar day following their first (1st) day of employment for any Employer
signatory to this Agreement.

Hiring

     (c) When the Employer needs additional employees covered by this Agreement, it shall give the
Local Union equal opportunity with all other sources to provide suitable applicants, but the
Employer shall not be required to hire those referred by the Local Union. Upon a written request
from the referring Local Union, the Employer shall inform the Local Union of whether an applicant
is being hired or not hired, or whether no decision has been made. Violations of this subsection
shall be subject to the Grievance Committee. It is recognized that the Employer legally is not
permitted to share with the Local Union information regarding the reasons for a refusal to hire an
applicant.

Any employment examination for applicants must test skills or physical abilities necessary for
performance of the

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work in the job classification in which the applicant will be employed. Violations of this
subsection shall be subject to the Grievance Committee.

State Law

     (d) No provision of this Article shall apply in any state to the extent that it may be
prohibited by state law. If under applicable state law additional requirements must be met before
any such provisions may become effective, such additional requirements shall be first met.

Agency Shop

     (e) If any agency shop clause is permissible in any state where the provisions of this Article
relating to the Union Shop cannot apply, the following Agency Clause shall prevail:

     (1) Membership in the Local Union is not compulsory. Employees have the right to join, not
join, maintain, or drop their membership in the Local Union, as they see fit. Neither party shall
exert any pressure on, or discriminate against, an employee as regards such matters.

     (2) Membership in the Local Union is separate, apart and distinct from the assumption by one
of his/her equal obligation to the extent that he/she receives equal benefits. The Local Union is
required under this Agreement to represent all of the employees in the bargaining unit fairly and
equally without regard to whether or not an employee is a member of the Local Union. The terms of
this Agreement have been made for all employees in the bargaining unit and not only for members in
the Local Union, and this Agreement has been executed by the Employer after it has satisfied itself
that the Local Union is the choice of a majority of the employees in the bargaining unit.
Accordingly, it is fair that each employee in the bargaining unit pays his/her own way and assume
his/her fair share of the obligations along with the grant of equal benefits contained in this
Agreement.

     (3) In accordance with the policy set forth under subparagraphs (1) and (2) of this Section,
all employees shall, as a condition of continued employment, pay to the Local Union, the employee’s
exclusive collective bargaining representative, an amount of money equal to that paid by other
employees in the bargaining unit who are members of the Local Union, which shall be limited to an
amount of money equal to the Local Union’s regular and usual initiation fees, and its regular and
usual dues. For present employees, such payments shall commence thirty-one (31) days following the
effective date or on the date of execution of this Agreement, whichever is the later, and for new
employees, the payment shall start thirty-one (31) days following the date of employment.

Savings Clause

     (f) If any provision of this Article is invalid under the law of any state wherein this
Agreement is executed, such provision shall be modified to comply with the requirements of state
law or shall be renegotiated for the purpose of adequate replacement. If such negotiations shall
not result in mutually satisfactory agreement, either party shall be permitted all legal or
economic recourse.

Employer Recommendation

     (g) In those instances where subsection (b) hereof may not be validly applied, the Employer
agrees to recommend to all employees that they become members of the Local Union and maintain such
membership during the life of this Agreement, to refer new employees to the Local Union
representative, and to recommend to delinquent members that they pay their dues since they are
receiving the benefits of this Agreement.

Business agents shall be permitted to attend new employee orientations in right-to-work states. The
sole purpose of the business agent’s attendance is to encourage employees to join the Union.

Future Law

     (h) To the extent such amendment may become permissible under applicable federal and state law
during the life of this Agreement as a result of legislative, administrative or judicial
determination, all of the provisions of this Article shall be automatically amended to embody the
greater Union security provisions contained in the 1947-1949 Central States Area Over-The-Road
Motor Freight Agreement, or to apply or become effective in situations not now permitted by law.

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No Violation of Law

     (i) Nothing contained in this Section shall be construed so as to require the Employer to
violate any applicable law.

Section 2. Probationary and Casual Employees

     (a) Probationary Employees

     (1) A probationary employee shall work under the provisions of this Agreement, but shall be
employed on a trial basis as provided for in each Supplement.

     (2) During the probationary period, the employee may be terminated without further recourse;
provided, however, that the Employer may not terminate the employee for the purpose of evading this
Agreement or discriminating against Union members. A probationary employee who is terminated by the
Employer during the probationary period and is then worked again at any time during the next full
twelve (12) months at any of that Employer’s locations within the jurisdiction of the Local Union
covering the terminal where he/she first worked, except in those jurisdictions where the Local
Union maintains a hiring hall or referral system, shall be added to the regular seniority list with
a seniority date as of the date that person is subsequently worked. The rules contained in
subsection (a) (2) are subject to provisions in the Supplements to the contrary.

     (3) Probationary employees shall be paid at the new hire rate of pay during the probationary
period; however, if the employee is terminated by the Employer during such period, he/she shall be
compensated at the full contract rate of pay for all hours worked retroactive to the first (1st)
day worked in such period.

     CDL-qualified employees hired into driving positions who are not currently on the seniority
list at an NMFA carrier and who for two (2) or more years regularly performed CDL-required driving
work for a commonly-owned NMFA carrier shall be compensated at 90% of the full contract rate of pay
for one (1) year and go to the full contractual rate thereafter, provided they have not had a break
in service in excess of three (3) years.

     (4) The Union and the Employer may agree to extend the probationary period for no more than
thirty (30) days, but the probationary employee must agree to such extension in writing.

     (b) Casual Employees

     (1) A casual employee is an individual who is not on the regular seniority list and who is not
serving a probationary period. A casual may be either a replacement casual or a supplemental casual
as hereinafter provided. Casuals shall not have seniority status. Casuals shall not be
discriminated against for future employment.

     (2) a. Replacement casuals may be utilized by an Employer to replace regular employees when
such regular employees are off due to illness, vacation or other absence, except when an absence of
a regular employee continues beyond three (3) consecutive months, a replacement casual shall not
thereafter be used to fill such absence, unless the Employer and the Local Union mutually agree to
the continued use of a replacement casual. If a CDL-qualified casual filling a position has been
regularly employed for a period of six (6) months or more, he will not be required to go through a
probationary period if hired into a full-time position.

          b. Where the Company is using casuals as vacation replacements for regular employees, and the
Area Supplemental Agreement does not provide a method to add regular employees based on the use of
casuals to replace vacation absence, the vacation schedules shall be broken into yearly quarters
beginning January 1st, and subsequent vacation quarters shall begin on April 1st, July 1st, and
October 1st thereafter.

Starting with the quarter beginning April, 1991, and continuing each quarter thereafter, the
Employer shall add one (1) additional employee to the regular seniority list for each sixty-five
(65) vacation replacement days worked by a casual during each vacation quarter.

The application of this formula shall not result in pyramiding.

New employees shall be placed on the respective seniority lists on the first (1st) day of the
following quarter unless there are employees in layoff status, in which case such new employees
shall be placed on the respective seniority list at the time the laid-off employees are recalled
from layoff status.

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Employees shall first be added to the regular seniority list from the preferential list, if
applicable. Thereafter, employees to be added to the regular seniority list shall be determined by
the respective Supplement and shall be subject to the probationary provisions of that Supplement.

In the application of this formula, employees specifically designated under an appropriate
reporting procedure to replace absence other than vacations shall not be included as vacation
replacements. It is the intent of the parties, in the application of this formula, to add regular
employees to the seniority list to replace employees on vacation where there is regular work
opportunity for such additional employees.

The implementation of this provision may raise issues particular to a respective Supplemental
Agreement. Failure to resolve the issues, such Supplemental Negotiating Committee may agree to
waive this provision, or submit the disputed issues to the National Grievance Committee.

     (3) Supplemental casuals may be used to supplement the regular work force as provided for in
each respective Supplement. Once the number of new employees to be added as required in the
Supplement is determined, the Employer must initiate the processing of the new probationary
employees immediately, and complete such processing as provided for in the Supplements.

Unless specifically provided otherwise in the applicable Supplemental Agreement, four- (4) hours
casuals may be used to supplement the regular workforce if all available regular employees at the
applicable Employer facility are working or scheduled to work. Four- (4) hour casuals shall not be
started after 8:00 a.m. for morning shifts and earlier than 4:00 p.m. for evening shifts
and shall not be called for less than four (4) hours work. Four- (4) hour casuals are required to
start on the scheduled bid start time or end by the conclusion of the shift. If worked over four
(4) hours in a shift, a four- (4) hour casual shall be guaranteed eight (8) hours of work and that
shift shall be counted as a supplemental day for the purpose of adding new employees. Four- (4)
hour casuals shall not be worked on a “back-to-back” or overlapping basis.

No employee will work more than one (1) shift in a twenty-four- (24) hour period. (Example: 12:00
a.m. to 12:00 a.m.)

The Employer shall use four- (4) hour casuals to perform dock work only unless the Local Union
agrees otherwise.

Four- (4) hour casuals in the Central States Region shall receive pension contributions for days
worked consistent with the provisions of the Central States Pension Plan.

A laid-off employee called for work will be called for an eight- (8) hour shift.

Guidelines covering the use of four- (4) hour casuals will be in accordance with the Central Region
Local Cartage Supplemental Agreement.

Work rules governing the use of four- (4) hour casuals will be by the Local Union.

     (4) Unless waived in writing by any Joint Supplemental Negotiating Committee, all Supplements shall
provide for a preferential casual hiring list and shall provide the qualifications for placement on
such list. Casuals on the preferential hiring list shall be offered available extra work and future
regular employment in seniority order by classification as among themselves. A preferential casual
employee’s seniority date shall be the date he/she becomes a regular employee; and such employee
shall not be subject to any probationary period.

Casual employees on the preferential hiring list shall have full access to the grievance procedure.

The provisions of Article 3, Section 3, shall apply to casual employees on the preferential hiring
list who are paid on the regular payroll.

Local Unions employing an exclusive hiring hall under the terms of the Supplemental Agreement may
petition the respective Joint Area Supplemental Negotiating Committee for approval to waive this
subparagraph (4).

     (5) Casual road employees, where permitted by Supplemental Agreement, may only be used within
the

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jurisdiction of their respective Regional Area and shall gain preferential status and/or regular
seniority status as provided in the respective Supplement, except on approved two-man operations
when the extra boards are exhausted.

     (6) Any casual employee who declines regular employment shall be terminated without recourse
and will not be used by the Employer for any further work.

     (7) a. Casual Employment

The Employer agrees to give first opportunity for work as a casual employee to those CDL-qualified
employees on layoff at a commonly-owned NMFA carrier. This obligation shall apply only at terminals
located within the jurisdiction of the employee’s Local Union. The Local Union will furnish
Employer with the names, addresses, and telephone numbers of those laid-off employees interested in
casual work opportunity and the job each employee is qualified to perform. Where applicable, casual
employment may not be offered to laid-off employees under this provision ahead of preferential
casuals, nor shall this provision supersede an established order of call in a supplemental
agreement.

     b. Regular Employment

The Employer agrees to offer regular employment to those employees on letter of layoff from a
commonly-owned NMFA carrier at other terminals located within the jurisdiction of the employee’s
Local Union who have made application for regular employment at the terminal offering regular
employment. Employment shall be offered in accordance with the following order, unless the
Supplemental Agreement or an agreed to practice provides a different order of call, in which case
such other order of call shall prevail:

     1. Preferential casuals, where applicable.

     2. Employees of the Employer, on a seniority basis.

     3. Employees of a commonly-owned NMFA carrier based on the date such employees made
application.

Employees who for two (2) or more years regularly performed CDL-required driving work for a
commonly-owned NMFA carrier shall be compensated at 90% of the full contract rate of pay for a
period of one (1) year and go to the full contractual rate thereafter. Other employees hired into
regular employment shall be paid in accordance with the new hire rate set forth in Article 36,
herein and shall establish seniority in accordance with the applicable Supplemental Agreement.
Employees who accrue seniority under this provision who are on layoff from another Employer shall
retain seniority rights at the terminal they are laid off from until such time as they are recalled
to that terminal. Employees who accrue seniority under this provision who are on layoff from
another terminal of the same Employer shall retain their seniority at the terminal they are laid
off from until such time as recalled to that terminal. At that time, the employee must either
accept recall and forfeit seniority at the new terminal or refuse recall and forfeit seniority at
the terminal he/she is being recalled to.

In order to be eligible for either casual or regular employment opportunity under this provision,
the laid off employee must meet the minimum hiring standards established by the Employer and be
otherwise qualified to perform the work available and must be able to report for work in compliance
with the Employer’s established call-time procedures. The Employer’s hiring standards and
examinations shall be applied uniformly to all applicants for employment. The Employer shall
provide the hiring standards and examinations upon written request of the Local Union. Employees
who are offered work opportunity under this provision must be able to furnish proof of their
qualification to perform the work available.

Any employment examination for applicants must test skills or physical abilities necessary for
performance of the work in the job classification in which the applicant will be employed.
Violation of this subsection shall be subject to the grievance procedure.

     (8) Fringe benefits will be paid on casuals in accordance with the terms of the Supplemental
Agreement. Minimum daily guarantees will be governed by the respective Supplemental Agreement.

     (9) A monthly list of all casual and/or probationary employees used during that month shall be
submitted to the

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Local Unions by the tenth (10th) day of the following month. Such list shall show:

     a. the employee’s name, address, and social security number;

     b. the date worked;

     c. the classification of work performed each date, and the hours worked; and,

     d. the name, if applicable, of the employee replaced.

This list shall be compiled on a daily basis and shall be available for inspection by a Union
representative and/or job shop steward.

Unless otherwise agreed to in any Supplemental Agreement, the following will apply:

     (10) Supplemental casuals may be used to supplement the regular work force (dock only) and
shall be subject to a four- (4) hour guarantee when called to work. Four- (4) hour casuals shall be
started on an established starting time; or when called to work at a time other than an established
starting time, must end his/her shift at the conclusion of that established starting time shift.
Four- (4) hour casuals shall be eligible for pension and/or health welfare contributions in
accordance with the applicable supplemental agreement.

For the purpose of adding regular employees in accordance with the supplemental agreement, casuals
who six (6) hours or more or back-to-back on a shift shall be considered as having worked a
supplemental day towards seniority. Once regular employees are required to be added in accordance
with the applicable supplement, the employer must initiate the processing of the new probationary
employees immediately and complete such processing as provided for in the applicable supplement.

     (c) Employment Agency Fees

If employees are hired through an employment agency, the Employer is to pay the employment agency
fee. However, if the Local Union was given equal opportunity to furnish employees under Article 3,
Section (1) (c), and if the employee is retained through the probationary period, the fee need not
be paid until the thirty-first (31st) day of employment.

Section 3. Check-off

The Employer agrees to deduct from the pay of all employees covered by this Agreement the dues,
initiation fees and/or uniform assessments of the Local Union having jurisdiction over such
employees and agrees to remit to said Local Union all such deductions. Where laws require written
authorization by the employee, the same is to be furnished in the form required. The Local Union
shall certify to the Employer in writing each month a list of its members working for the Employer
who have furnished to the Employer the required authorization, together with an itemized statement
of dues, initiation fees (full or installment), or uniform assessments owed and to be deducted for
such month from the pay of such member. The Employer shall deduct such amount within two (2) weeks
following receipt of the statement of certification of the member and remit to the Local Union in
one (1) lump sum within three (3) weeks following receipt of the statement of certification. The
Employer shall add to the list submitted by the Local Union the names and Social Security numbers
of all regular new employees hired since the last list was submitted and delete the names of
employees who are no longer employed. Check-off shall be on a monthly or quarterly basis at the
option of the Union. The Local Union and Employer may agree to an alternative option to deduct
Union dues bimonthly.

When an Employer actually makes a deduction for dues, initiation fees and assessments, in
accordance with the statement of certification received from an appropriate Local Union, the
Employer shall remit same no later than three (3) weeks following receipt of the statement of
certification and in the event the Employer fails to do so, the Employer shall be assessed ten
percent (10%) liquidated damages. All monies required to be checked off shall become the property
of the entities for which it was intended at the time that such check-off is required to be made.
All monies required to be checked off and paid over to other entities under this Agreement shall
become the property of those entities for which it was intended at the time that such payment or
check-off is required to be made.

Where an employee who is on check-off is not on the payroll during the week in which the deduction
is to be made,

9

 

or has no earnings or insufficient earnings during that week, or is on leave of absence, the
employee must make arrangements with the Local Union and/or the Employer to pay such dues in
advance.

The Employer agrees to deduct from the paycheck of all employees covered by this Agreement
voluntary contributions to DRIVE. DRIVE shall notify the Employer of the amounts designated by each
contributing employee that are to be deducted from his/her paycheck on a weekly basis for all weeks
worked. The phrase “weeks worked” excludes any week other than a week in which the employee earned
a wage. The Employer shall transmit to DRIVE National Headquarters on a monthly basis, in one (1)
check, the total amount deducted along with the name of each employee on whose behalf a deduction
is made, the employee’s social security number and the amount deducted from that employee’s
paycheck. The International Brotherhood of Teamsters shall reimburse the Employer annually for the
Employer’s actual cost for the expenses incurred in administering the weekly payroll deduction
plan.

The Employer will recognize authorization for deductions from wages, if in compliance with state
law, to be transmitted to Local Union or to such other organizations as the Union may request if
mutually agreed to. No such authorization shall be recognized if in violation of state or federal
law. No deduction shall be made which is prohibited by applicable law.

In the event that an Employer has been determined to be in violation of this Article by the
decision of an appropriate grievance committee, and if such Employer subsequently is in violation
thereof after receipt of seventy-two (72) hours’ written notice of specific delinquencies, the
Local Union may strike to enforce this Article. However, such strike shall be terminated upon the
delivery thereof. Errors or inadvertent omissions relating to individual employees shall not
constitute a violation.

Upon written request of an employee, the Employer shall make payroll deductions for the purchasing
of U. S. Savings Bonds.

The Employer hereby agrees to participate in the Teamsters National 401(k) Savings Plan (the
“Plan”) on behalf of all employees represented for purposes of collective bargaining under this
agreement, and shall authorize the Plan to allow for participating employee, upon his request, to
take loans on his contributions to the Plan. The Employer is not required to participate in the
Teamsters National 401(k) if Teamsters employees were eligible to participate in an Employer
sponsored 401(k) as of January 1, 1998.

The Employer will make or cause to be made payroll deductions from participating employee’s wages,
in accordance with each employee’s salary deferral election subject to compliance with
ERISA and the relevant tax code provisions. The Employer will forward withheld sum to State Street
Bank or its successor at such time, in such form and manner as required pursuant to the Plan and
Declaration of Trust (the “Trust”).

The Employer will execute a Participation Agreement with TNFINC and the Trustees of the Plan
evidencing Employer participation in the Plan effective prior to any employee deferral being
received by the Plan.

Section 4. Work Assignments

The Employers agree to respect the jurisdictional rules of the Union and shall not direct or
require their employees or persons other than the employees in the bargaining units here involved,
to perform work which is recognized as the work of the employees in said units. This is not to
interfere with bona fide contracts with bona fide unions.

Section 5.

The term “Local Union” as used herein refers to the IBT Local Union which represents the employees
of the particular Employer for the purpose of collective bargaining at the particular place or
places of business to which this Agreement and the Supplements thereto are applicable, unless by
agreement of the Local Union involved, or a Change of Operations Committee, or a jurisdictional
award under Article 30 herein, jurisdiction over such employees, or any number of them, has been
transferred to some other Local Union, in which case the term Local Union as used herein shall
refer to such other Local Unions. Nothing herein contained shall be construed to alter the
multiemployer, multi-union unit or single contract status of this Agreement.

10

 

Section 6. Electronic Funds Transfer

If the Employer institutes an electronic funds transfer (EFT) system, employees may participate.

Section 7. Utility Employee

The parties recognize the need for the Employers to compete effectively in a changing environment.
To this end, there shall be established a new position on the local cartage seniority list called a
Utility Employee. The intent of the parties’ creation of the Utility Employee position is to
generate additional job opportunities and enhance employee earnings by enhancing the Employer’s
ability to complete and grow.

Subject to the approval of the National Utility Employee Review Committee, the Employer may
establish Utility Employee positions at any facility at its discretion as-needed, and CDL-qualified
road or local cartage employees may bid for Utility Employee positions in accordance with
established terminal bidding procedures. All CDL-qualified drivers with the required endorsements
shall have the opportunity to transfer to the local cartage operation, if necessary, and bid for
open Utility Employee positions with full seniority rights. There shall be no retreat rights for
employees who transfer to the local cartage operation to bid an open Utility Employee position. For
example, if a road driver bids into the Utility Employee position, he relinquishes his road
seniority for bidding purposes and cannot return to the road driver classification, unless through
a change of operations, or bid back rights consistent with the applicable Supplement.

The Employer shall be permitted to assign a qualified local cartage employee to a Utility Employee
position on a temporary basis when necessary to pursue business opportunities that become
available, as long as the temporary assignment is made in seniority order and if senior employees
do not accept the temporary positions, less senior employees are forced from the bottom of the
seniority list.

Temporary vacancies in the Utility Employee position, for things such as sickness, vacations,
leaves of absences, will be filled consistent with practices under the applicable Supplemental
Agreement.

The Utility Employee shall work across all classifications as assigned and as necessary to meet
business needs, and there shall be no restrictions on the type of freight or work handled. A
Utility Employee’s duties during a tour of duty may, at his/her home terminal, include performing
Utility-related dock work, P&D (local cartage) work, hostling/yard work (drop & hooks), and any
driving work. At larger facilities where the Employer utilizes Utility Employees and there is more
than Utility work performed, the Employer will designate a specific area on the dock where freight
to be handled by Utility Employees will be staged. Non-utility freight will be staged at a
designated area and the employees at the destination terminal will handle the non-utility freight.

A Utility employee shall perform all local cartage functions at his home terminal. Notwithstanding
anything in this Agreement or any Supplemental Agreement to the contrary, Utility Employees also
may be required to work across Local Union jurisdictional lines. It is not the intent to use
Utility Employees to perform local peddle runs or P&D work outside their Local Union’s
jurisdiction. At away terminals, a Utility Employee may perform Utility-related dock work, hostling
and drop and hooks on his/her own equipment. A Utility Employee shall fuel his/her own equipment at
away terminals if there are no fuelers available. All Utility Employees shall be returned to his
home domicile at the end of his shift absent bona fide extenuating circumstances, in which case
they shall be paid on all hours.

The Employer shall pay each Utility Employee an hourly premium of $1.00 per hour over the highest
rate the Employer pays to local cartage drivers under the Supplemental Agreement covering the
Utility Employee’s home domicile. Employees in progression who bid into Utility Employee positions
or individuals the Employer hires into Utility Employee positions shall complete the progression
for local cartage drivers outlined in the applicable Supplemental Agreement. A Utility Employee in
progression shall receive the hourly premium in addition to the Utility Employee’s progression
rage.

A Utility Employee’s workweek shall consist of any four (4) ten (10) hour or five (5) eight (8)
hour consecutive days starting Sunday, Monday or Tuesday, subject to a forty (40) hour guarantee
during that period. With four (4) ten (10) hour days, the Utility Employee shall have three (3)
consecutive days off. With five- (5) eight (8)-hour days, the Utility Employee shall have two (2)
consecutive days off. The Employer may establish multiple start times bid by Utility Employees and
may slide such start times on a daily basis by either thirty (30) minutes before or thirty

11

 

(30) minutes after the bid start times.

The parties recognize that most, if not all locations, will have Utility Employees regardless of
facility size, geographic and /or service area. Subject to the approval of the National Utility
Employee Review Committee or the Committee Chairman or their designees, the Employer may establish
and modify Utility Employee positions and bids without the approval of a change of operations or
other Union approval.

All bids shall be offered in seniority order, and, if senior employees do not bid open positions,
less senior employees shall be forced from the bottom of the seniority list.

In the event the Employer’s proposed use of a Utility Employee position causes a transfer, change
or modification of any driver’s present terminal, breaking point or domicile, the proposed change
shall be submitted to a National Utility Employee Review Committee comprised of three
representatives designated by the President of TMI and three representatives designated by the
Chairman of TNFINC. The President of TMI or his designee and the Chairman of TNFINC or his designee
shall be the TMI and the TNFINC Chairmen of the National Utility Review Committee. The National
Utility Employee Review Committee shall establish rules of procedure to govern the manner in which
proposed Utility Employee operational changes are to be heard.

The National Utility Employee Review Committee shall have the authority to determine the seniority
application of employees affected by the operational change and such determination shall be final
and binding. No proposed operational change will be approved which violates this Agreement. In the
event the National Utility Employee Review Committee is unable to resolve a matter, the case shall
be submitted to the National Utility Employee Review Committee on an expedited basis. Neither the
Union nor the Employer shall unreasonably delay the scheduling or completion of any requested
meeting, or the submission of any dispute to the National Review Committee. In no event shall a
Utility Employee operational change hearing be held more than fifteen (15) business days after the
Employer meets with the affected Local Unions to discuss the written operational change proposal.

Any grievance concerning the application or interpretation of Article 3, Section 7 shall be first
referred to the National Utility Employee Review Committee for resolution. If the National Utility
Employee Review Committee is unable to reach a decision on an interpretation or grievance, the
issue will be referred to the National Grievance Committee. The National Utility Employee Review
Committee shall have jurisdiction over alleged violations of seniority rights in the bidding of the
Utility Employee positions, issues regarding the utilization of the Utility Employee position
consistent with this Section, and issues regarding the seniority rights of employees bidding into
the Utility Employee position.

Subject to the approval of the National Utility Employee Review Committee, the Employer may
establish the number of Utility Employee positions at any location.

The parties agree that nothing in this Article 3, Section 7 shall alter the Employer’s ability to
engage in layoffs in accordance with the layoff provisions of the applicable Supplemental
Agreement. In the event a Utility Employee is laid off, the Employer may re-bid that position in
accordance with seniority provisions of the applicable Supplemental Agreement.

ARTICLE 4.

STEWARDS

The Employer shall give one (1) job steward, during his regular working hours or if outside his
regular working hours his/her designated alternate, an opportunity to participate in the Employer’s
orientation of new employees, or the right to meet with new employees during their workday to
inform them of the benefits of Union representation without loss of time or pay.

The Employer shall have the sole right to schedule the time and place for such participation so as
not to interfere with the Employer’s operation.

The Employer recognizes the right of the Local Union to designate job stewards and alternates from
the Employer’s seniority list. The authority of job stewards and alternates so designated by the
Local Union shall be limited to, and shall not exceed, the following duties and activities:

12

 

     (a) The investigation and presentation of grievances with his/her Employer or the designated
company representative in accordance with the provisions of the collective bargaining agreement;

     (b) The collection of dues when authorized by appropriate Local Union action;

     (c) The transmission of such messages and information, which shall originate with and are
authorized by the Local Union or its officers, provided such message and information;

     (1) have been reduced to writing; or,

     (2) if not reduced to writing, are of a routine nature and do not involve work stoppages,
slowdowns, refusal to handle goods, or any other interference with the Employer’s business.

Unless waived in writing, there shall be a steward or available bargaining unit member of the
employee’s choice present whenever the Employer meets with the employee about grievances or
discipline or to conduct investigatory interviews. If a steward is unavailable, the employee may
designate a bargaining unit member who is available at the terminal at the time of the meeting to
represent him/her. Meetings or interviews shall not begin until the steward or designated
bargaining unit member is present. An employee who does not want a Union steward or available
bargaining unit member present at any meeting or interview where the employee has a right to Union
representation must waive Union representation in writing. If the Union requests a copy of the
waiver, the Employer shall promptly furnish it.

Job stewards and alternates have no authority to take strike action, or any other action
interrupting the Employer’s business, except as authorized by official action of the Local Union.
The Employer recognizes these limitations upon the authority of job stewards and their alternates,
and shall not hold the Local Union liable for any unauthorized acts. The Employer in so recognizing
such limitations shall have the authority to impose proper discipline, including discharge, in the
event the job steward or his/her designated alternate has taken unauthorized strike action,
slowdown or work stoppage in violation of this Agreement.

The job steward, or his/her designated alternate, shall be permitted reasonable time to
investigate, present and process grievances on the company property without loss of time or pay
during his/her regular working hours without interruption of the Employer’s operation by calling
group meetings; and where mutually agreed to by the Local Union and the Employer, off the property
or other than during his/her regular schedule without loss of time or pay. Such time spent in
handling grievances during the job steward’s or his/her designated alternate’s regular working
hours shall be considered working hours in computing daily and/or weekly overtime if within the
regular schedule of the “job steward.”

The job steward, or his/her designated alternate, shall be permitted reasonable time off without
pay to attend Union meetings called by the Local Union. The Employer shall be given twenty-four
(24) hours’ prior notice by the Local Union.

ARTICLE 5.

Section 1. Seniority Rights

     (a) The application of seniority which has been accrued herein shall be established in the
Supplemental Agreements.

     (b) Seniority shall be broken only by discharge, voluntary quit, retirement, or more than a
five (5) year layoff.

     (c) This Section shall apply to all Supplemental Agreements.

Section 2. Mergers of Companies General

     (a) In the event the Employer is a party to a merger of lines, seniority of the employees who
are affected thereby shall be determined by mutual agreement between the Employer and the Local
Unions involved.

In the application of this Section, it is immaterial whether the transaction is called a merger,
purchase, acquisition, sale, etc.

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Further, it is also immaterial whether the transaction involves merely the purchase of stock of one
(1) corporation by another, with two (2) separate corporations continuing in existence.

     (b) If such merger of companies results in the combination of terminals or over-the-road
operations, a change of operations shall be submitted to the Co-Chairmen of the National Grievance
Committee for assignment to an appropriate Change of Operations Committee established pursuant to
Article 8, Section 6. The Change of Operations Committee shall retain jurisdiction for one (1) year
after the effective date of the Committee decision and shall have the authority to amend its
decision in the event of a substantial change in the amount of work to be performed at the
terminals or over-the-road operations which were combined.

Combining of Terminals or Operations as a Result of Merger of Companies

     (c) In the application of this Section, when terminals or operations of two (2) or more
companies are combined, as referred to above, the following general rules shall be applied by the
Employer and the Local Unions, which general rules are subject to modification pursuant to the
provisions of Section 4 of this Article:

Active Seniority List

     (1) The active employee seniority rosters (excluding those employees on letter of layoff)
shall be “dovetailed” by appropriate classification (i.e., road or city) in the order of each
employee’s full continuous classification (road or city) seniority date that the employee is
currently exercising. (The term “continuous classification seniority” as used herein is defined as
that seniority which the employee is currently exercising and has not been broken in the manner
provided in Section 1 of this Article or by voluntary changes in domicile not directed, approved or
ordered by a Change of Operations Committee.) The active “dovetailed” seniority roster shall be
utilized first and until exhausted to provide employment at such combined terminal or operational
location.

Layoff Seniority List

     (2) In addition, the inactive seniority rosters (employees who are on letter of layoff) shall
be similarly “dovetailed” by appropriate classification. If additional employees are required after
the active list is exhausted, they shall be recalled from such inactive seniority roster and after
recall such employees shall be “dovetailed” into the active seniority roster with their continuous
classification (road or city) seniority dates they are currently exercising which shall then be
exercised for all purposes. Seniority rosters previously combining job classifications shall be
continued unless otherwise agreed.

Temporary Authority

     (d) Where only temporary authority is granted in connection with any of the transactions
described above, then separate seniority lists shall continue only when terminals or operations are
not merged, unless otherwise agreed. The Employer which is to survive will assume the obligations
of both collective bargaining agreements during the period of the temporary authority.

In the event of temporary merger of operations which are contingent upon approval by regulatory
agencies or on other stated conditions, the seniority of the involved employees shall continue to
accrue with their original Employer during the period of temporary merger, so that if there is no
final consummation of the merger, the seniority of such employees shall be continued with their
respective employers. However, if, on the failure of final consummation and dissolution of the
merger, one of the parties to the proposed merger discontinues the operations which were subject to
such merger, the employees of such Employer shall be granted seniority rights for all purposes with
the other Employer only for the period of time they were employed in such temporary merged
operations.

Purchase of Rights

     (e) If a merger, purchase, acquisition, sale, etc., constitutes merely the acquisition of
permits or rights, without the purchase or acquisition of equipment or terminals, and/or without
the consolidation of terminals or operations, or in the event of the purchase of rights during
bankruptcy proceedings, the following shall apply:

Where the purchasing company has a terminal operation at the domicile of the employees of the
seller, the employees of the selling company shall be placed on a master seniority list, and the
purchasing company or companies shall hire,

14

 

after recall of the purchasing company’s employees from layoff, such employees as needed for
regular employment within the first twelve (12) calendar months after purchase or acquisition of
permits and/or rights, and they shall be dovetailed with full seniority. If an employee refuses a
bona fide offer of regular work opportunity with any of the purchasing companies, his/her name
shall be removed from the list. No employee hired under this provision shall be required to serve a
probationary period. After the expiration of the aforementioned twelve (12) calendar month period,
the purchaser shall have no further obligation to the employees of the seller.

However, if the purchasing or acquiring company does not have and/or continue a terminal or
operation at the domicile of the employees of the seller, resulting in their layoff, such Employer
shall place the laid-off employees on a master seniority list and such Employer shall, if and when
additional regular employees are required, within a twelve- (12) calendar month period after
purchase or acquisition, and providing its employees on layoff have been recalled, offer employment
to such laid-off employees at the terminal locations or operations to which the work has been
transferred. Any such laid-off employees accepting transfer shall be dovetailed in accordance with
their terminal seniority for work purposes, including layoff, and holding company seniority for all
fringes. If an employee refuses a bona fide offer of regular work opportunity with any of the
purchasing companies, his/her name shall be removed from the list. No employee hired under this
provision shall be required to serve a probationary period. After the expiration date of the
aforementioned twelve- (12) calendar month period, the purchaser shall have no further obligation
to the employees of the seller. The transferring employee shall be responsible for lodging and
moving expenses.

Exclusive Cartage Operations

     (f) If in connection with the transactions described in these rules the successor Employer
determines to discontinue the use of a local cartage company, the employees of that local cartage
company who have worked exclusively on the pickup and delivery service which is retained by the
successor Employer shall be given the opportunity to continue to perform such service as an
employee of such successor Employer, and shall have their seniority “dovetailed” as described in
the above rules.

Committee Authority

     (g) Area and/or State Committees created pursuant to Local Supplements which have previously
established rules of seniority, not contrary to the provisions of such Supplements, and approved by
the Joint Area Committee, may continue to apply such rules if such rules are reduced to writing.

Section 3. Intent of Parties

     (a) The parties acknowledge that the above rules are intended solely as general standards and
further that many factual situations will be presented which necessitate different application,
modification or amendment. Accordingly, the parties acknowledge that questions of the application
of seniority rights may arise which require different treatment and it is anticipated and
understood that the Employers and Unions jointly involved and/or the respective grievance
committees may mutually agree to such disposition of questions of seniority which in their judgment
is appropriate under the circumstances.

     (b) In all instances, the disposition of questions involving the application of seniority
rights made by the parties pursuant to this Section may be presented to the appropriate grievance
committees provided herein whose decisions shall be final and binding.

Section 4. Equipment Purchases

     (a) The Employer shall not require as a condition of continued employment, that an employee
purchase truck, tractor and/or tractor and trailer or other vehicular equipment, or that any
employees purchase or assume any proprietary interest or other obligation in the business, except
as referred to in Article 6, Section 2. The requirements of this provision shall be maintained
during the renegotiation of this Agreement unless either party has terminated the Agreement in the
manner provided.

Highest Rates Prevail

     (b) If the minimum wage, hours and working conditions in the Company absorbed differ from
those minimums

15

 

set forth in this Agreement and Supplements thereto, the higher of the two shall remain in effect
for the employees so absorbed.

Cutting Seniority Board

     (c) The Union reserves the right to cut the road seniority board when the average weekly
earnings fall to eight hundred twenty-five dollars ($825.00) or less. This is not to be construed
as imposing a limitation on earnings. After the Union notifies the Employer to cut the board and in
the event that Employer refuses, the Union shall immediately submit the matter to the grievance
procedure. In determining whether average weekly earnings will fall to eight hundred twenty-five
dollars ($825.00) or less, only the earnings of the lower twenty-five percent (25%) of the drivers
on the seniority board, counting from the bottom up, shall be considered. The average shall be
calculated for the thirty (30) day period preceding the Union’s original request. After such
calculation is made, the average earnings of the drivers for the top seventy-five percent (75%) of
the seniority board must also average more than eight hundred twenty-five dollars ($825.00) per
week, or layoff shall be made in accordance with seniority. The above provisions shall also apply
to extra board for sleeper drivers exclusively.

Posting Seniority List

     (d) The Employer shall give the Local Union a seniority list at least every six (6) months.
The Employer shall also post a seniority list at least once every six (6) months and shall maintain
a current seniority roster at the terminal. Protest of any employee’s seniority date or position on
such list must be made in writing to the Employer within thirty (30) days after such seniority date
or position first appears, and if no protests are timely made, the dates and positions posted shall
be deemed correct. Any such protest which is timely made may be submitted to the grievance
procedure.

Section 5. Work Opportunity

Over-the-road and CDL-qualified local cartage employees who have been on letter of layoff for more
than thirty (30) days shall be given an opportunity to relocate to permanent employment (prior to
the employment of new hires) occurring at other domiciles of the Employer, provided they notify the
Employer and Local Union in writing of their interest in a relocation opportunity.

The offer of relocation will be made in the order of applicable seniority of the laid-off employees
domiciled within the Regional area. The Employer shall be required to make additional offers of
relocation to an employee who has previously rejected a relocation opportunity provided the
employee again notifies the Employer in writing of his/her continued interest in additional
relocation opportunities. However, the Employer will only be required to make one relocation offer
in any six (6) calendar month period. Any employee accepting such offer shall be paid at the
employee’s applicable rate of pay and shall be placed at the bottom of the seniority board for
bidding and layoff purposes, but shall retain company seniority for fringe benefits only. A
relocating employee shall pay his/her own moving expenses and shall, upon reporting to such new
domicile, be deemed to have relinquished his/her right to return with seniority to the domicile
from which he/she relocated. The provisions of this Section shall not supersede an established
order of call/hiring in the Supplemental Agreement.

Section 6.

On a weekly basis, the Employer shall be permitted to work the active seniority board 25% of the
straight time hours in overtime. In the event the Employer exceeds the 25% overtime allowance, the
number of overtime hours in excess of the allowance will be applied in the next following week for
determining the number of employees to recall from layoff.

For example, if the Employer has 120 employees on the seniority board with 100 actively working and
20 laid off, the Employer shall be permitted 4,000 hours straight time hours plus 1,000 hours
overtime (25% of 4,000) for a total of 5,000 hours to be worked that week by the active seniority
board. If during that week the Employer actually worked the 100 active employees a total of 5,600
hours, there would be 600 hours in excess of the 25% overtime allowance. The 600 hours would be
divided by 50 (40 straight-time hours plus 25% of 40 or 10), which equals 12 employees to be
recalled from lay-off in the week following the violation of the 25% overtime allowance.

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ARTICLE 6.

Section 1. Maintenance of Standards

The Employer agrees, subject to the following provisions, that all conditions of employment in
his/her individual operation relating to wages, hours of work, overtime differentials and general
working conditions shall be maintained at not less than the highest standards in effect at the time
of the signing of this Agreement, and the conditions of employment shall be improved whenever
specific provisions for improvement are made elsewhere in this Agreement.

Local Standards

     (a) The Local Unions and the Employer shall, within one hundred eighty (180) days following
ratification of this Agreement, identify and reduce to writing, and submit to the appropriate
Regional Joint Area Committee, those local standards and conditions practiced under this Article.
Such standards and conditions when submitted in accordance with this Section shall be currently
dated. Those local standards and conditions previously practiced hereunder which are not so
submitted shall be deemed to have expired.

The appropriate Regional Joint Area Committee shall, not later than ninety (90) days following
ratification, adopt a procedure to consider the disposition of the local standards and conditions
submitted including the right to appoint a subcommittee to make recommendations. The Regional Joint
Area Committee shall provide to the parties the opportunity to present their views. The Regional
Joint Area Committee shall have the sole discretion to determine the disposition of the submitted
local standards and conditions which determination shall be final and binding.

Individual Employer Standards

     (b) Individual Employers may during the life of this Agreement file with the appropriate
Regional Joint Area Committee and request review of those individual standards and conditions
claimed or practiced under this Article which exceed the provisions of this Agreement and
Supplemental Agreements.

The Regional Joint Area Committee shall develop a procedure to review the filing including the
right to appoint a subcommittee to make recommendations. The Committee shall make every effort to
adjust the matter. If the Committee reaches agreement concerning the disposition of the individual
standards or conditions, the decision of the Committee shall be final and binding. In the event of
deadlock, the submitted standards and/or conditions shall continue as practiced.

General

     (c) It is agreed that the provisions of this Article shall not apply to inadvertent or bona
fide errors made by the Employer or the Union in applying the terms and conditions of this
Agreement. Such bona fide errors may be corrected at any time.

In the event a Local Union and/or employee notifies the manager at the applicable Employer facility
in writing by certified mail that employees’ wages are being overpaid and the Employer does not
correct the overpayment within thirty (30) calendar days following receipt of such notice, the
Employer shall not be permitted to recoup such overpayment. The Employer shall, however, be
permitted to correct the wage error by paying employees the appropriate contractual wage
prospectively from the date of notice by the Local Union and/or employee, provided the correction
is made prior to the expiration of this Agreement.

No other Employer shall be bound by the voluntary acts of another Employer when he/she may exceed
the terms of this Agreement.

Any disagreement between the Local Union and the Employer with respect to this matter shall be
subject to the grievance procedure.

This provision does not give the Employer the right to impose or continue wages, hours and working
conditions less than those contained in this Agreement.

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Section 2. Extra Contract Agreements

     (a) The Employer agrees not to enter into any agreement or contract with its employees,
individually or collectively, which in any way conflicts with the terms and provisions of this
Agreement. Any such agreement shall be null and void.

     (b) Every profit-sharing plan, condition, or incentive plan of any type, whether or not it
alters or amends the economic conditions contained in this Agreement, must be negotiated and agreed
to by TNFINC prior to implementation. Nothing in this Section shall be construed to apply to
existing safety programs or other prizes or bonus items the receipt of which do not alter the
economic terms of this Agreement.

Section 3. Workweek Reduction

If either the Fair Labor Standards Act or the Hours of Service Regulations are subsequently amended
so as to result in substantial penalties to either the employees or the Employer, a written notice
shall be sent by either party requesting negotiations to amend those provisions which are affected.

Thereafter, the parties shall enter into immediate negotiations for the purpose of arriving at a
mutually satisfactory solution. In the event the parties cannot agree on a solution within sixty
(60) days, or mutually agreed extensions thereof, after receipt of the stated written notice,
either party shall be allowed economic recourse.

Section 4. New Equipment

Where new types of equipment and/or operations for which rates of pay are not established by this
Agreement are put into use after April 1, 2003, within operations covered by this Agreement, rates
governing such operations shall be subject to negotiations between the parties.

In the event agreement cannot be reached within sixty (60) days after date such equipment is put
into use, the matter may be submitted to the National Grievance Committee for final disposition.
Rates agreed upon or awarded shall be effective as of the date equipment is put into use.

The above provisions shall also apply in the event the law (state or federal) is changed to permit
longer combination vehicles or aggregate weight increases of 8,000 pounds or more in the weight
limits that are currently provided in the Surface Transportation Assistance Act of 1982.

Employees expected to use computers will be trained to use them and will be paid for all training
time. Employees expected to use computers will be given sufficient time to learn to use them.

ARTICLE 7.

LOCAL AND AREA GRIEVANCE MACHINERY

Section 1.

     (a) Provisions relating to local, state and area grievance machinery are set forth in the
applicable Supplements to this Agreement.

Each Supplemental Agreement shall provide for a Regional Joint Area Review Committee. The Committee
shall review and consider any case deadlocked by the Regional Joint Area Committee. The Regional
Joint Area Review Committee shall consist of the Freight Coordinator from the applicable Region or
a designee of the TNFINC Chairman and a designee of the Executive Director of TMI. The Committee
shall have the authority to resolve any such deadlocked case either by review of the evidence
presented to the Regional Joint Area Committee or by rehearing the case. The decisions of the
Committee shall be final and binding.

In the event the Committee is unable to resolve the deadlock, the case shall be referred to the
National Grievance Committee.

Unless otherwise indicated in writing to TMI and TNFINC by a Supplemental Negotiating Committee
prior to ratification of this Agreement, there shall be no arbitration of discharges and
suspensions.

     (b) All grievances arising under the provisions of the Master Agreement (Articles 1-39) shall
be filed directly with

18

 

the appropriate Regional Joint Area Committee. The Regional Joint Area Committee shall have the
authority to render a final and binding decision or direct the grievance to the appropriate lower
level committee for hearing if the grievance is not properly claimed under the provisions of the
Master Agreement. The Regional Joint Area Committee must hear and decide such cases within ninety
(90) days of the filing of the grievance. Grievances arising under Article 9 Protection of Rights,
Article 29, Sections 1 or 2(a) and (b) Substitute Service and Article 32, Subcontracting shall be
expeditiously processed and may be heard at either regularly scheduled or specially called
hearings. A grievance may be filed by any Region whose members are adversely affected by an alleged
violation of Article 32, Section 4(b) occurring within its jurisdiction.

     (c) It is mutually agreed that the procedures for processing complaints concerning matters of
highway and equipment safety shall be incorporated in the applicable Supplemental Agreement, in
accordance with the guidelines established by the National Master Freight Safety, Health and
Equipment Committee provided for in Article 16.

Special Joint Area Committees shall also be created in compliance with the provisions of Article
35, Sections 3 and 4.

The procedure set forth in the local, state and area grievance machinery and in the national
grievance procedure may be invoked only by the authorized Union representative or the Employer
representative. Authorized representatives of the Union and/or Employer may file grievances
alleging violation of this Agreement, under local grievance procedure, or as provided herein,
unless provided to the contrary or otherwise mutually agreed in the Supplemental Agreement and/or
respective committee rules of procedure. Time limitations regarding the filing of grievances, if
not set forth in the respective Supplemental Agreements, must appear in the Rules of Procedure of
the various grievance committees and shall apply equally to Employers and employees.

The Rules of Procedure of the various committees established under the Agreement shall be subject
to the review and approval of the National Grievance Committee.

Section 2. Grievant’s Bill of Rights

All employees who file grievances under this Agreement and its Supplemental Agreements are entitled
to have their cases decided fairly and promptly. In order to satisfy these objectives and promote
confidence in the integrity of the grievance procedures, all employees who file grievances are
entitled to the following Rights:

     1. Grievants and stewards shall be informed by their Local Union of the time and place of the
hearing.

     2. Grievants and stewards are permitted to attend, at their own expense, the hearing in cases
in which they are involved.

     3. The Employer must provide any information relevant to a grievance containing specific
factual allegations within fifteen (15) days of receipt of a written request by the Local Union,
steward or grievant. The Local Union or grievant shall provide any information relevant to such a
grievance within fifteen (15) days of receipt of a written request by the Employer. Information
requested must relate to the specific issues and general time periods involved in the grievance. In
the event a party fails to provide available information that was specifically requested on a
timely basis and the applicable grievance committee agrees that the information is relevant to the
case, the claim of the party requesting the information shall be upheld.

     4. All cases involving a discharge or suspension shall be recorded, except for executive
sessions. Transcriptions of these proceedings shall be prepared in response to written requests by
the Local Union at the reasonable cost of transcription. No recording devices shall be used in any
grievance committee proceeding except as specifically authorized under the Rules of Procedure or by
mutual consent of the co-chairpersons.

     5. All Employer and Union panel members for each case shall be identified prior to the
hearing. No Employer or Union representative who is directly involved in a case may serve as a
panel member except at a local level committee where there is only one Local Union subject to the
jurisdiction of the committee.

     6. A grievant or steward may request permission to present evidence or argument in support of
the case in addition to the evidence or argument presented by the Local Union.

     7. All grievance committees shall, upon request, issue a copy of the grievance decision or
transcript pages containing the hearing proceedings and the decision to the grievant and/or a
Local Union.

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     8. The Local Union and the Employer may postpone a case once each, and any further
postponements must be approved by the co-chairpersons of the grievance committee. In those areas
where there are presently local grievance committees, each party shall be entitled to one
additional postponement at the local grievance committee level only.

     9. Unless mutually agreed by the Local Union and the Company, Local Unions shall file all
approved grievances with the appropriate grievance committee or association for decision no later
than thirty (30) days after the date the Local Union receives the grievance.

     10. A copy of the grievance committee Rules of Procedure, including the Grievant’s Bill of
Rights, must be provided, upon request, to the grievant prior to the commencement of the grievance
hearing.

Section 3.

All Local, State and Area Grievance Committees established under Supplemental Agreements shall
revise their Rules of Procedure to include the “Grievant’s Bill of Rights” set forth in Section 2
above and shall submit their revised Rules of Procedure to the National Grievance Committee for
approval no more than ninety (90) days after the effective date of this Agreement.

The National Grievance Committee may revise, delete or add to the Rules of Procedure for a
Supplemental Grievance Committee in any manner necessary to ensure conformity with the purposes and
objectives of the Grievant’s Bill of Rights. The decisions of the National Grievance Committee in
this regard shall be final and binding.

Section 4.

Discharge cases shall be docketed and scheduled to be heard at the next regularly scheduled
City/Joint State/Supplemental Committee meeting.

Section 5. Timely Payment of Grievances

All monetary grievances that have been resolved either by decision or through a signed, dated
written settlement shall be paid within fourteen (14) calendar days of formal notification of the
decision or the date of the settlement agreement. If an Employer fails to pay a monetary grievance
in accordance with this Section, the Employer shall pay as liquidated damages to each affected
grievant eight (8) hours straight time pay for each day the Employer delays payment, commencing the
date the grievant(s) notified the Employer of such non-payment.

Section 6.

In view of the new Federal Regulations (383.51) pertaining to a driver’s overall record, when
presenting a case involving discharge and/or suspension for an accident(s), the Employer may
request on the record at the Regional Joint Area Committee that the driver’s accident record for
the past three (3) years be considered. The respective Chairmen of the Regional Joint Area
Committee may consider the employee’s accident record within the past three (3) years when
assessing disciplinary action if the Employer can present evidence showing that:

The driver who is subject to discharge or suspension was convicted of any of the following within
the past three (3) years:

	 	A.	 	being at fault in an accident involving a fatality or serious bodily injury;
	 
	 	B.	 	being at fault in an accident resulting in property damage in excess of $50,000.00;
	 
	 	C.	 	leaving the scene of any accident of which the driver is aware; or
	 
	 	D.	 	using the Employer’s commercial motor vehicle to commit a felony.

ARTICLE 8.

NATIONAL GRIEVANCE PROCEDURE

Section 1.

All grievances or questions of interpretations arising under this National Master Freight Agreement
or Supplemental

20

 

Agreements thereto shall be processed as set forth below.

     (a) All factual grievances or questions of interpretation arising under the provisions of the
Supplemental Agreement (or factual grievances arising under the National Master Freight Agreement),
shall be processed in accordance with the grievance procedure of the applicable Supplemental
Agreement.

If upon the completion of the grievance procedure of the Supplemental Agreement the matter is
deadlocked, the case shall be immediately forwarded to both the Employer and Union secretaries of
the National Grievance Committee, together with all pertinent files, evidence, records and
committee transcripts. Any request for interpretation of the National Master Freight Agreement
shall be submitted directly to the Regional Joint Area Committee for the making of a record on the
matter, after which it shall be immediately referred to the National Grievance Committee. Such
request shall be filed with both the Union and Employer secretaries of the National Grievance
Committee with a complete statement of the matter.

     (b) Any matter which has been referred pursuant to Section 1 (a) above, or any question
concerning the interpretation of the provisions contained in the National Master Freight Agreement,
shall be submitted to a permanent National Grievance Committee which shall be composed of an equal
number of employer and union representatives. The National Grievance Committee shall meet on a
regular basis, for the disposition of grievances referred to it, or may meet at more frequent
intervals, upon call of the chairman of either the Employer or Union representatives on the
National Grievance Committee. The National Grievance Committee shall adopt rules of procedure which
may include the reference of disputed matters to subcommittees for investigation and report, with
the final decision or approval, however, to be made by the National Grievance Committee. If the
National Grievance Committee resolves the dispute by a majority vote of those present and voting,
such decisions shall be final and binding upon all parties.

Cases deadlocked by the National Grievance Committee shall be referred as provided in Section 2(b)
below. Procedures relating to such referrals shall be included in the Rules of Procedure of the
National Grievance Committee.

The Employer may request the co-chairmen of the National Grievance Committee to appoint and convene
a joint Employer and Union Committee which shall have the authority to approve uniform dispatch
procedures and rules which shall apply to the individual company’s over-the-road operations.

No Employer signatory to this Agreement shall be permitted to have its own grievance procedure.

Section 2.

     (a) The National Grievance Committee by majority vote may consider and review all questions of
interpretation which may arise under the provisions contained in the National Master Freight
Agreement which are submitted by either the Chairman of TNFINC or the Executive Director of TMI.
The National Grievance Committee by majority vote shall have the authority to reverse and set aside
all resolutions of grievances by any lower level grievance committee or review committee involving
or affecting the interpretation(s) of Articles 1-39 of the National Master Freight Agreement, in
which case the decision of the National Grievance Committee shall be final and binding. A failure
by the National Grievance Committee to reach a majority decision on a question concerning
interpretation or on a review of a decision by a lower level grievance committee or review
committee shall not be considered a deadlock and will not be referred to the National Review
Committee. In case of a failure to reach a majority decision in reviewing the decision of a lower
level grievance committee or review committee, the decision of the lower level grievance committee
or review committee shall stand as final and binding.

     (b) All grievances deadlocked at the National Grievance Committee shall be processed as set
forth below.

     1. All such deadlocked grievances shall be automatically referred to the National Review
Committee, which shall consist of the Chairman of TNFINC, or his/her designee and the Executive
Director of TMI, or his/her designee. The National Review Committee shall have the authority to
resolve any such deadlocked case by review of the record presented to the National Grievance
Committee or by rehearing the case, or by referring the case to a subcommittee of either the Joint
National Negotiating Committee or the appropriate Supplemental Negotiating Committee to negotiate a
recommended resolution of the case. The subcommittee of the Negotiating Committee to which the case
was referred must report its recommendation or deadlock to the National Review Committee for

21

 

resolution. Unless the National Review Committee in writing mutually agrees otherwise, said
Committee shall have a period of 15 days (excluding Saturdays, Sundays and holidays) from the date
of the National Grievance Committee deadlock to resolve the case. The decision of the National
Review Committee shall be final and binding.

     2. In the event the National Review Committee is unable to resolve the deadlock, the President
of the Employer involved and the Chairman of TNFINC shall have 30 additional days (excluding
Saturdays, Sundays and holidays), from the final day of consideration by the National Review
Committee to attempt to resolve the case. The TMI and TNFINC representatives on the National Review
Committee shall be responsible for notifying the President of the Employer involved and the
Chairman of TNFINC of the final day of consideration by the Committee of the deadlocked grievance.
In considering factual disputes that are deadlocked or deadlocked questions of interpretation
arising out of Supplemental Agreements, the decision of either the National Grievance Committee or
the National Review Committee shall be based on the provisions of the applicable Supplemental
Agreement.

     3. No lawyers will be permitted to present cases at any step of the grievance procedure.

     4. The decision of any grievance committee or panel shall be specifically limited to the
matters submitted to it and the grievance committee or panel shall have no authority in any manner
to amend, alter or change any provision of the Agreement.

     5. If the Employer or Union challenges in court a decision issued by any dispute resolution
panel provided for under this Agreement, the cost of the challenge, including the court costs and
attorney’s fees, shall be paid by the losing party.

Section 3. Work Stoppages

     (a) The parties agree that all grievances and questions of interpretation arising from the
provisions of this Agreement shall be submitted to the grievance procedure for determination.
Accordingly, except as authorized by law, as provided below or as specifically provided in other
Articles of the National Master Freight Agreement, no work stoppage, slowdown, walkout or lockout
shall be deemed to be permitted or authorized by this Agreement.

A “representation dispute” in circumstances under which the Employer is not required to recognize
the Union under this Agreement is not subject to the grievance procedure herein and the provisions
of this Article do not apply to such dispute.

     (b) In the event an Employer is delinquent in its health & welfare or pension payments in the
manner required by the applicable Supplemental Agreement, the Local Union shall have the right to
take whatever action it deems necessary until such delinquent payments are made. The Local Union
shall give the Employer a seventy-two- (72) hour, (excluding Saturdays, Sundays, and holidays),
prior written notice of the Local Union’s authorization of strike action which notice shall specify
the failure to make health & welfare or pension payments providing the basis for such strike
authorization. In no event shall the Union have the right to strike over a dispute concerning the
eligibility and/or payment of health & welfare or pension contributions by an Employer on behalf of
specific individuals, and such disputes shall be subject to the grievance procedure.

     (c) In the event the Employer fails to comply with a decision rendered by a grievance committee or
a grievance settlement, provided a settlement has been reduced to writing, dated and signed by
both, the Local Union and the Employer shall give the Employer a seventy-two- (72) hour (excluding
Saturday, Sunday and holidays) prior written notice of the Local Union’s authorization of strike
action, which notice shall specify the basis for the compliance failure. If the Employer believes
that it is in compliance or that there is a clarification needed in order to comply, the matter of
compliance and/or clarification shall be submitted to the grievance committee that decided the
case. The question of compliance or clarification shall be determined by the grievance committee
within forty-eight (48) hours after receipt of the Employer request. The forty-eight- (48) hour
period for the grievance committee to determine the question of compliance or clarification shall
run concurrently with the seventy-two- (72) hour notice prior to a strike. The grievance committee
may meet telephonically to consider and decide questions of compliance or clarification.

Section 4.

     (a) It is mutually agreed that the Local Union will, within two (2) weeks of the date of the
signing of this

22

 

Agreement, serve upon the Employer a written notice listing the Union’s authorized representatives
who will deal with the Employer, make commitments for the Local Union generally and, in particular,
those individuals having the sole authority to act for the Local Union in calling or instituting
strikes or any stoppages of work which are not in violation of this Agreement. The Local Union may
from time to time amend its listing of authorized representatives by certified mail. The Local
Union shall not authorize any work stoppages, slowdown, walkout, or cessation of work in violation
of this Agreement. It is further agreed that in all cases of an unauthorized strike, slowdown,
walkout, or any unauthorized cessation of work which is in violation of this Agreement the Union shall not be liable for damages resulting from
such unauthorized acts of its members.

In the event of a work stoppage, slowdown, walkout or cessation of work, not permitted by the
provisions of Article 8, Section 3(a), (b), or (c) alleged to be in violation of this Agreement,
the Employer shall immediately send a wire or fax to the Freight Coordinator in the appropriate
Regional Area and to the Chairman of TNFINC to determine if such strike, etc., is authorized.

No strike, slowdown, walkout or cessation of work alleged to be in violation of this Agreement
shall be deemed to be authorized unless notification thereof by telegram has been received by the
Employer and the Local Union from such Regional Area. If no response is received by the Employer
within twenty-four (24) hours after request, excluding Saturdays, Sundays, and holidays, such
strike, etc., shall be deemed to be unauthorized for the purpose of this Agreement.

In the event of such unauthorized work stoppage or picket line, etc., in violation of this
Agreement, the Local Union shall immediately make every effort to persuade the employees to
commence the full performance of their duties and shall immediately inform the employees that the
work stoppage and/or picket line is unauthorized and in violation of this Agreement. The question
of whether employees who refuse to work during such unauthorized work stoppages, in violation of
this Agreement, or who fail to cross unauthorized picket lines at their Employer’s premises, shall
be considered as participating in an unauthorized work stoppage in violation of this Agreement may
be submitted to the grievance procedure, but not the amount of suspension herein referred to.

It is specifically understood and agreed that the Employer during the first twenty-four- (24) hour
period of such unauthorized work stoppage in violation of this Agreement, shall have the sole and
complete right of reasonable discipline, including suspension from employment, up to and including
thirty (30) days, but short of discharge, and such employees shall not be entitled to or have any
recourse to the grievance procedure. In addition, it is agreed between the parties that if any
employee repeats any such unauthorized strike, etc., in violation of this Agreement, during the
term of this Agreement, the Employer shall have the right to further discipline or discharge such
employee without recourse for such repetition.

After the first twenty-four- (24) hour period of an unauthorized stoppage in violation of this
Agreement, and if such stoppage continues, the Employer shall have the sole and complete right to
immediately further discipline or discharge any employee participating in any unauthorized strike,
slowdown, walkout, or any other cessation of work in violation of this Agreement, and such
employees shall not be entitled to or have any recourse to the grievance procedure. The suspension
or discharge herein referred to shall be uniformly applied to all employees participating in such
unauthorized activity. The Employer shall have the sole right to schedule the employee’s period of
suspension.

The International Brotherhood of Teamsters, the Teamsters National Freight Industry Negotiating
Committee, Joint Councils and Local Unions shall make immediate efforts to terminate any strike or
stoppage of work as aforesaid which is not authorized by such organizations, without assuming
liability therefore. For and in consideration of the agreement of the International Brotherhood of
Teamsters, Teamsters National Freight Industry Negotiating Committee, Joint Councils and Local
Unions affiliated with the International Brotherhood of Teamsters to make the aforesaid efforts to
require Local Unions and their members to comply with the law or the provisions of this Agreement,
including the Provisions limiting strikes or work stoppages, as aforesaid, the Associations and
Employers who are parties hereto agree that they will not hold the International Brotherhood of
Teamsters, the Teamsters National Freight Industry Negotiating Committee, Joint Councils and Local
Unions liable or sue them in any court or before any administrative tribunal for undertaking such
efforts to terminate unauthorized strikes or stoppages of work as aforesaid or for undertaking such
efforts to require Local Unions and their members to comply with the law or the provisions of this
Agreement, or for taking no further steps to require them to do so. It is further agreed that
signator Associations and Employers will not hold the International Brotherhood of Teamsters,
Teamsters

23

 

National Freight Industry Negotiating Committee, Joint Councils or Local Unions liable or sue them
in any court or before any administrative tribunal for such unauthorized work stoppages alleging
condonation, ratification or assumption of liability for undertaking such efforts to terminate
strikes or stoppages of work, or requiring Local Unions and their members to comply with the law or
the provisions of this Agreement.

The provisions of this Article shall continue to apply during that period of time between the
expiration of this Agreement and the conclusion of the negotiations or the effective date of the
successor Agreement, whichever occurs later, except as provided in Article 39. It is understood and
agreed that failure by the International Brotherhood of Teamsters, Teamsters National Freight
Industry Negotiating Committee, and/or Joint Councils to authorize a strike by a Local Union shall
not relieve such Local Union of liability for a strike authorized by it and which is in violation
of this Agreement.

     (b) The question of whether the International Union, Teamsters National Freight Industry
Negotiating Committee, Joint Council or Local Union have met its obligation set forth in the
immediately preceding paragraphs, or the question of whether the International Union, Teamsters
National Freight Industry Negotiating Committee, and Joint Council or the Local Union, separately
or jointly, participated in an unauthorized work stoppage, slowdown, walkout or cessation of work
in violation of this Agreement by calling, encouraging, assisting or aiding such work stoppage,
etc., in violation of this Agreement, or the question of whether an authorized strike provided by
Article 8, Section 3(a), (b) or (c) is in violation of this Agreement, or whether an Employer
engaged in a lockout in violation of this Agreement, shall be submitted to the grievance procedure
at the national level, prior to the institution of any damage suit action. When requested, the
cochairmen of the National Grievance Committee shall immediately appoint a subcommittee to develop
a record by collecting evidence and hearing testimony, if any, on the questions of whether the
International Union, Teamsters National Freight Industry Negotiating Committee, Joint Council or
Local Union have met its obligations as aforesaid, or of Union Participation or Employer lockout in
violation of this Agreement. The record shall be immediately forwarded to the National Grievance
Committee for decision. If a decision is not rendered within thirty (30) days after the cochairmen
have convened the National Grievance Committee, the matter shall be considered deadlocked.

A majority decision of the National Grievance Committee on the questions presented as aforesaid
shall be final and binding on all parties. If such majority decision is rendered in favor of one
(1) or more of the Union entities, or the Employer, in the case of lockout, no damage suit
proceedings on the issues set forth in this Article shall be instituted against such Union entity
or such Employer. If, however, the National Grievance Committee is deadlocked on the issues
referred to in this subsection 4(b), the issues must be referred to the National Review Committee
for resolution prior to either party instituting damage suit proceedings. If the National Review
Committee decides that a strike was unlawful, it shall not have the authority to assess damages.
Except as provided in this subsection 4(b), agreement to utilize this procedure shall not
thereafter in any way limit or constitute a waiver of the right of the Employer or Union to
commence damage suit action. However, the use of evidence in this procedure shall not waive the
right of the Employer or Union to use such evidence in any litigation relating to the strike or
lockout, etc., in violation of this Agreement. There shall not be any strike, slowdown, walkout,
cessation of work or lockout as a result of a deadlock of the National Grievance Committee on the
questions referred to under this subsection 4(b) and any such activity shall be considered a
violation of this Agreement.

     (c) In the event that an Employer, party to this Agreement, commences legal proceedings
against the Union after the Union’s compliance with the provisions of Article 8, Section 3(a), (b)
or (c), the Employer Associations will cooperate in the presentation to the court of the applicable
majority grievance committee decision.

     (d) Nothing herein shall prevent the Employer or Union from securing remedies granted by law
except as specifically set forth in subsection 4(b).

Section 5.

     (a) In the event of strikes, work stoppages, or other activities authorized by Article 8,
Section 3(a), (b) or (c) of this Agreement, no interpretation of this Agreement or any Supplement
thereto relating to the Employer’s obligation to make health & welfare and/or pension contributions
by any tribunal shall be binding upon the Union or affect the legality or lawfulness of the strikes
unless the Union stipulates to be bound by such interpretation, it being intention of the parties
to resolve all questions of interpretation by mutual agreement.

     (b) It is the intention of the parties to resolve all grievances and requests for
interpretation arising under this

24

 

Agreement through the grievance procedure. However, it is understood and agreed that nothing herein
shall prevent the Employer or Union from securing remedies in those circumstances where the
application of this Agreement is contrary to law.

Section 6. Change of Operations

Change of Operations Committee

     (a) Present terminals, breaking points or domiciles shall not be relocated, changed or
modified without the approval of an appropriate Change of Operations Committee. Such Committee
shall be appointed in each of the Regional Areas, equally composed of Employer and Union
representatives. The Change of Operations Committee shall have the authority to determine the
seniority of the employees affected and such determination shall be final and binding.

In the event a proposed change of operations includes the establishment of either a new or
satellite terminal as a “combination” facility with a common city driver and dock seniority roster,
when such change of operations results in the relocation or movement of city drivers and dock
employees from an existing terminal recognizing separate (split) seniority rosters for city drivers
and dock employees, the Change of Operations Committee shall have the authority to determine the
conditions under which such a combination facility may be established, including but not limited
to, the number of city drivers and dock employees who qualify, be allowed to follow the work to the
new or satellite combination terminal, the implementation of training programs to qualify dock
employees as city drivers and the seniority right of affected employees to either return to the
“mother” terminal and/or claim additional driving positions at the satellite terminal within
reasonable time periods following the establishment of such combination terminal, as determined by
the Committee. Existing terminals that recognize separate city driver and dock seniority rosters
(split terminals) shall not be converted to “combination” terminals unless and until such time as a
majority of those affected employees agree to such conversion, in which case the Change of
Operations Committee shall have the authority to determine the conditions under which such
conversion shall be implemented.

Such Committee, however, shall observe the Employer’s right to designate domiciles and the
operational requirements of the business. Where the Union raises the question as to whether or not
certain proposed runs of excessive length can be made, the Employer must be prepared to submit
objective evidence including DOT certification or logs and tapes that such runs have been tested
and were made within the DOT hours of service regulations. Individual employees shall not be
redomiciled more than once during the term of this Agreement as the result of an approved change of
operations unless a merger, purchase, sale, acquisition or consolidation of employers is involved,
or unless there is proven economic need as determined by the Change of Operations Committee based
on factual evidence presented.

Pension and health & welfare contributions paid on behalf of a redomiciled employee shall be paid
to the Funds to which the contributions were made prior to the employee’s change of domicile, and
the decisions of the Change of Operations Committee shall so specify. This Section does not apply
to employees who voluntarily relocation to new domiciles, unless such relocation is a result of a
Change of Operations Committee decision. Any dispute concerning the appropriate fund for an
Employer’s contribution on behalf of a redomiciled employee, pursuant to a Change of Operations
Committee decision, shall be referred to the National Grievance Committee. The decision of the
National Grievance Committee shall to the extent permitted by law, be final and binding on all
affected parties, including the Trust Funds.

The Change of Operations Committee shall also have jurisdiction for a period of twelve (12) months
following the opening of a new terminal to consider the redomicile of employees who are laid off as
a direct result of such opening of a terminal. The Committee shall also have jurisdiction over the
closing of a terminal in regard to seniority, as well as to determine the conditions under which
freight may or may not be interlined into the area of a vacated operations when necessary to retain
major customers, including mandating the use of union carriers where available. In no event will
the Employer be granted the authority to vacate a facility and interline the freight on a nonunion subsidiary of the parent company.

The above shall not apply within a twenty-five (25)mile radius.

The Change of Operations Committee shall have the authority to require a definition of primary and
shared lanes, where applicable.

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The Change of Operations Committee shall not grant the Employer authority to relocate U.S.
operations, work, or terminals to Mexico.

Change of Operations Committee Procedure

     (b) The National Grievance Committee shall adopt Rules of Procedure concerning the application
and administration of this Article.

The Employer shall notify all affected Local Unions of the proposed change of operations at least
thirty (30) calendar days prior to the hearing at the Regional Joint Area Committee, and the
Employer and the Local Unions involved shall have a mutual responsibility to inform the employees
subject to redomicile prior to such hearing in accordance with the practice and procedures agreed
to in the respective Area Committee. Any exception or waiver of the aforesaid thirty (30) day
period shall be mutually agreed to between the Employer and the Local Unions involved and approved
by the Regional Area Change of Operations Committee.

Moving Expenses

     (c) The Employer shall pay reasonable expenses to demount and remount an employee’s mobile
home, if used as his/her residence and in such instance shall pay normal expenses to move such
mobile home, including the use of other modes of transportation where required by law. However, it
is mutually understood that the cost of such move shall not exceed nine thousand dollars
($9,000.00) per move. Commencing April 1, 2004 and every April 1st thereafter under this agreement,
this amount will be increased by the prior year’s average annual increase in the CPIW, U.S. city
average, Housing, Household Operations expenditure category titled “Moving, storage, freight
expense.” A decrease in the percent change in the Index will not result in a decrease of the mobile
home moving allowance once established. In the event the index is no longer published by BLS, the
parties will agree to meet and find a substitute Index as an escalator.

Where an employee is required to relocation to another domicile in order to follow employment as a
result of a change of operations, the Employer shall move the employee and assume the
responsibility for proven loss or damage to household goods due to such move, including insurance
against loss or damage. Should any employee possess household items of unusual or extraordinary
value which will be included in the move, such items shall be declared and an appraised value
determined prior to the move. The Employer shall provide packing materials for the employee’s
household goods when requested or at the employee’s request pay all costs and expenses of moving
such household goods, including packing.

An employee shall have a maximum of one (1) year to move in accordance with the provisions of an
approved change of operations unless, prior to the expiration of such year, he/she requests, in
writing, an extension for a reasonable period of time due to an unusual or special problem. The
Employer shall provide lodging for the employee at the point of redomicile, not to exceed ninety
(90) calendar days, and in addition, shall reimburse the employee forty cents (40¢) per mile to
transport one (1) personal automobile to the new location.

The Employer shall not be responsible for moving expenses if the employee changes his/her residence
as a result of voluntary relocation.

None of the Employer obligations set forth in this Subsection (c) Moving Expenses shall apply to
relocations of domiciles within a fifty (50) mile radius.

The mileage rate to transport one (1) personal automobile to the new location will increase by five
(5) cents a mile.

Change of Operations Seniority

     (d) The Change of Operations Committee established herein shall have the sole authority to
determine questions of the application of seniority in those situations presented to it and in
connection therewith the following general rules shall apply, subject, however, to modification as
provided by Section 6(g) below:

Closing, Partial Closing of Terminals Relocation of Work

          (1)a. When branches, terminals, divisions or operations (hereinafter “terminal(s)”) are closed
or partially closed and the work of such terminal(s) is relocated, in whole or in part, to another
terminal(s), the active employees

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(excluding those employees on letter of layoff) at the closed or partially closed terminal(s) shall
have the right to bid into a master seniority roster (road or city) comprised of bidders from the
active seniority rosters of closed or partially closed terminal(s) in the order of their continuous
classification (road or city) seniority. Continuous classification seniority shall be defined as
that seniority which the employee is currently exercising and has not been broken in the manner
provided by Article 5, Section 1, or by voluntary changes in domicile not directed, approved or
ordered by a Change of Operations Committee. Employees shall bid from the combined master seniority
roster into openings at the terminal(s) into which work is being relocated. Employees so relocating
shall be “dovetailed” into the appropriate active seniority roster at the new terminal(s) in the
order of their continuous classification seniority. Such relocations shall be permitted prior to
the recall of laid-off employees at such gaining terminal(s). If and when additional employees are
required in excess of those who formed the combined active roster at the point of redomicile,
employees on letter of layoff at that location shall be recalled. If recalled, such employees shall
be “dovetailed” with their continuous classification seniority.

In addition, the inactive seniority rosters (employees who are on letter of layoff) at the
terminal(s) from which employees are being redomiciled shall be “dovetailed” into a master “laid
off” seniority roster and such employees shall have the same opportunities to relocation to
terminal(s) within the area of the Supplemental Agreement which are afforded to employees covered
by the provisions of subparagraph 2(b) below. These inactive employees at the losing terminal(s)
shall also be offered first work opportunity, in seniority order, at terminals into which work was
relocated within the regional area where such employees were employed. Such inactive employees
shall gain active seniority in accordance with the provisions of the applicable supplemental
agreement. The use of such employees shall be subject to the order of call of the supplement. The
employee’s seniority date for bidding and layoff purposes shall be the date which they gain active
status. The employee shall retain company seniority for fringe
benefits only as of that date.

The senior driver voluntarily laid off at a losing domicile will be restored to the active board
each time foreign drivers or casuals (where applicable) make ten (10) trips (tours of duty) within
any thirty- (30) calendar day period on a primary run of such domicile, not affected by a Change of
Operations.

          b. The following seniority bidding procedures are to be applied in all change of operations
cases that involve master pool bidding:

     1. The Change of Operations Committee shall have the authority to establish a date for
purposes of determining active and inactive (on letter of layoff or the equivalent thereof)
employees at both gaining and losing locations.

     2. Affected employees at losing locations shall be allowed to bid onto an active master pool
seniority list on a dovetailed seniority basis.

     3. At the time of the original bid, an employee on the active master pool seniority list shall
be afforded the opportunity to bid any available position for which he/she is qualified at a
gaining location in accordance with his/her seniority on the master pool seniority list. In the
event the active employees at any given location elect not to bid the number of positions being
lost at that particular location, inactive employees at that location, in accordance with their
seniority, shall then be afforded the opportunity to bid as an active employee until the number of
positions being lost at that particular location are filled. An employee who elects to “hold” as
set forth in paragraph 4 below shall not be considered as filling a losing position. A successful
bidder shall be dovetailed on the seniority list at the location he/she bids into. The number of
successful bidders from any losing location shall not exceed, at the time of the original bid, the
number of positions lost at that location as approved by the Change of Operations Committee.

     4. An employee on the active master pool seniority list who does not have seniority to bid the
location he/she desires in the initial bid may hold for such desired location and remain at his/her
present domicile in such status as his/her bidding seniority will allow. Should an opening occur
during the window period as set forth in the Change of Operations decision at the location to which
he/she desired to relocation, he/she shall be afforded relocation opportunity in line with his/her
bidding seniority. A successful bidder under this provision shall be dovetailed on the applicable
seniority list at the location into which he/she bids and his/her moving expenses shall be paid in
accordance with other relocating employees. The relocation provisions of this Section shall apply
only during the window period as set forth in the Change of Operations decision.

     5. An employee who elects to hold as set forth in Paragraph 4 above may hold for only one (1)
location and must designate that location at the time of the original bid and may hold only for a
position within the classification

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the employee has seniority to bid. If an employee refuses to accept an opportunity to claim a
position he/she is holding for, the employee shall have no further claim to a position that may
become available during the window period.

     6. An employee who elects to hold, shall also be entitled to exercise seniority to claim a
voluntary move under the provisions of Article 5, Section 5 herein, and in the event the employee
accepts such a voluntary move, he/she shall retain his/her hold position at his/her home domicile
during the remainder of the window period but shall forfeit any other seniority rights at his/her
home domicile. Should a position become available at the location such employee is holding for and
which the employee has seniority to successfully claim, moving expenses set forth in Article 8,
Section 6(c) shall be computed from the employee’s original home domicile.

     7. There shall be a maximum one hundred twenty (120) calendar day window period from the date
of implementation in all Changes of Operations only when the number of positions offered at gaining
terminals do not equal the number of positions lost at the losing terminals.

          (a) Any openings which may occur at a gaining terminal during the window period shall be
offered to those employees on the Master Pool Seniority list who have not been offered relocation
opportunity under the provisions of Article 8, Section 6 before they are offered to employees who
may have elected to “hold” as set forth in paragraph 4 above.

          (b) The window period established by the Change of Operations decision shall close if either
of the following conditions is met: (a) the number of days and/or months of the window period as
set forth in the Change of Operations decision has expired; or (b) all employees on the Master Pool
Seniority list have been offered work opportunities pursuant to Article 8, Section 6.

          (c) However, with respect to those who bid to “hold”, it is understood that such bids must
remain open and any job opportunities that are clearly identifiable as a direct result of the
Change of Operations must be offered, by seniority, to those qualified employees who bid to hold
for that specific location for the length of the window period(s) (road/cartage) set forth in the
Change of Operations decision even if the window period is closed as set forth in paragraph (b)
above.

          (d) The Company shall determine whether an additional job opportunity is the direct result of
the Change of Operations at the specific gaining domicile for which the employee is “holding”. The
Company shall so notify the employee’s current Local Union and the gaining Local Union. The Company
shall have the burden of proof in establishing whether or not an additional job opportunity is
clearly the direct result of the Change of Operations at the specific gaining domicile for which
the employee is “holding”. Any grievance filed regarding the Company’s decision to permit or deny a
“hold” relocation shall be filed with the appropriate Regional Joint Area Committee to be heard by
the Multi-Region Change of Operations Committee that held jurisdiction.

     8. Employees who are qualified bidders on Long-Term Disability (LTD) at the time of bid shall
be allowed to bid. If successful LTD bidders are unable to claim their bid on the date of
implementation, a hold-down bid will be allowed. This hold-down bid will be offered to those
remaining active employees at the LTD’s current location, by classification, who have not been
offered relocation opportunity under the Change of Operations. The successful hold-down bidder
shall be dovetailed. When the LTD employee returns to work and claims his/her bid, the hold-down
employee may either remain at the hold-down location with a bidding seniority date consistent with
the date of relocation under the Change of Operations or return to his/her original location with
his/her original bidding seniority date. The hold-down employee may not return to a location where
the classification from which he/she bid has been eliminated. The Company shall not be responsible
for the moving expense of the employee filling the hold-down bid, unless and until such time as it
is determined that the employee on LTD will never be able to claim his bid and the hold-down bidder
becomes a regular permanent employee at the hold-down location.

Closing of Terminals Elimination of Work

     (2)a. When a terminal(s) is closed and the work of such terminal(s) is eliminated, an employee
who was formerly employed at another terminal shall have the right to return to such former
terminal and exercise his/her continuous classification (road or city) seniority, provided he/she
has not been away from such former terminal for more than a five- (5)year period.

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Layoff

     b. When a terminal(s) is closed and the work of such terminal(s) is eliminated, employees who
are laid-off thereby shall be given first (1st) opportunity for available regular employment in the
classification in which they are employed at the time of such layoff (prior to the employment of
new hires but subject to the order of call/hiring of the Supplemental Agreement) occurring at any
other terminal(s) of the Employer within the area of the Supplemental Agreement where such employee
was employed provided they notify the Employer in writing of their interest in a relocation
opportunity. The offer of relocation will be made in the order of continuous classification
seniority of the laid off employees within the area of the Supplemental Agreement. The Employer
shall be required to make additional offers of relocation to an employee who has previously
rejected a relocation opportunity provided the employee again notifies the Employer in writing of
his/her continued interest in additional relocation opportunities. However, the Employer will only
be required to make one relocation offer in any six (6) calendar month period. The obligation to
offer such employment shall continue for a period of five (5) years from the date of closing. Any
employee accepting such offer shall be employed at his/her applicable rate of pay and shall be
placed at the bottom of the seniority board for bidding and layoff purposes, but shall retain
company seniority for fringe benefits only. A relocating employee shall pay his/her own moving
expenses.

Opening of Terminals

     (3) When a new terminal(s) is opened (except as a replacement for existing operations or a new
division in a locality where there are existing operations), the Employer shall offer to those
employees, if any, affected thereby the opportunity to relocation to regular positions in the new
terminal(s) in the order of such employee’s continuous classification (road or city) seniority date
as defined herein. Upon arrival at such new location, such employees shall be “dovetailed” with
their continuous classification (road or city) seniority date together with other employees so
relocating.

This provision is not intended to cover situations where there is replacement of an existing
operation or where a new division is opened in a locality where there is an existing terminal. In
these latter situations, those employees laid off at the existing facilities shall have first (1st)
opportunity for employment at the new operation in accordance with their continuous classification
(road or city) seniority date, and upon arrival shall be similarly “dovetailed.” If all regular
fulltime positions are not filled in this manner, then the provisions of the preceding paragraph
shall apply.

     (4) When a Company which has an established Local Cartage Operation, which has been cleared by
system OTR drivers, seeks to establish a new OTR domicile there, the Company shall first file for a
Change of Operations giving relocation opportunity, with regard to the initial complement, to OTR
drivers from those system OTR domiciles that previously serviced such Local Cartage Operation with
reasonable regularity. Such relocation opportunity shall remain in effect for any additions to the
initial complement for a period of not less than 120 calendar days, after which further additions
to such complement shall be hired at the locality where such new OTR domicile was established.

     (5) Any employee redomiciled by an approved change of operations to another domicile shall
upon reporting to such new domicile be deemed to have relinquished his/her right to return, with
seniority, to the domicile from which he/she was relocated, except under another approved change of
operations. Employees who avail themselves of the relocation privileges because they are on layoff
at their original terminal may exercise their seniority rights if work becomes available at their
original terminal during the five (5) year layoff period allowed them at their original terminal.

     (6) When an Employer’s proposed Change of Operations offers a specific number of road
positions at a gaining domicile, the Employer shall be required to make every good faith effort and
use all practical means to hire qualified applicants to fill such offered positions that are left
vacant because other employees affected by the Change have elected not to bid into that gaining
domicile. The Employer’s duty to hire under this provision is to use every reasonable means to
advertise for qualified applicants and to meet with the affected Local Union(s) to seek qualified
applicants. Nothing in this provision shall be construed to create an obligation that the Employer
maintain or otherwise guarantee a specific number of employees at a gaining domicile. Any grievance
concerning any issue which may arise under this provision shall be filed directly with the
Multi-Region Change of Operations Committee.

In the event it is determined by the Multi-Region Change of Operations Committee that the Employer
has not made every good faith effort and used all practical means to hire qualified applicants for
road positions as required under this provision, the Committee may require the Employer to hire
qualified applicant(s) as outlined above.

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Definition of Terms

     (e) The term “continuous classification seniority” as used in this Agreement is defined as
that seniority which the employee is currently exercising and has not been broken in the manner
provided in Article 5, Section 1, or by voluntary changes in domicile not directed, approved or
ordered by a Change of Operations Committee.

Qualifications and Training

     (f) Employees, who are presently non-CDL qualified and elect to bid to relocation to a gaining
terminal that requires CDL qualified employees, shall be provided a sixty (60) day training period
in order to become CDL qualified. The training period shall commence from the date the employee
becomes a successful bidder and the Company shall furnish training personnel and equipment at the
location where the employee is currently domiciled or otherwise as mutually agreed to. If the
employee fails to qualify during such sixty (60) day period, the employee shall forfeit his/her
right to fill the bid and shall remain on the seniority list of the current domicile.

Intent of Parties

     (g) The parties acknowledge that the above rules are intended solely as general standards and
further that many factual situations will be presented which necessitate different application,
modification or amendment. Accordingly, the parties acknowledge that questions of the application
of seniority rights may arise which require different treatment and it is anticipated and
understood that the Employers and Unions jointly involved and/or the respective grievance
committees may mutually agree to such disposition of questions of seniority which in their judgment
is appropriate under the circumstances.

The Change of Operations Committees, as provided herein or in the Supplemental Agreements, shall
have the authority to determine the application of seniority in those situations presented to them.
In all cases, the seniority decisions of the Joint Committees, including the Change of Operations
Committees and subcommittees established by the National Master Freight Agreement and the
respective Supplemental Agreements, shall be final and binding.

Section 7.

Any grievance committee or panel, as constituted under this Agreement, shall have the jurisdiction
and power to decide grievances which arose under the preceding agreements and supplements thereto.
In doing so, the committees or panels shall follow the grievance procedure set forth in the
2003-2008 Agreement, but apply the contract under which the grievance arose.

Section 8. Sleeper Cab Operations

Unless specifically addressed in this section the provisions of the applicable supplemental
agreement relating to sleeper cab operations remain in full force and effect.

      A. Work Rules

The Local Union and the Company shall meet and negotiate dispatch and/or work rules. If no
agreement is reached disputes shall be subject to the grievance machinery.

      B. Team Classifications

     1. “Bid Team Drivers” and “Bid Team Extra Board Drivers”

Team Drivers who are classified as bid destination drivers or bid team extra board drivers will be
guaranteed a minimum of thirteen hundred (1300) miles round trip when dispatched. If the dispatch
of a bid sleeper team is broken between A & B (1st dispatch the drivers will be paid no less than
their original dispatch). If the broken dispatch results in more miles the drivers shall be paid
their actual miles driven and work performed. There will be no free time at any point reached.

     2. “Extra Board Team Drivers”

Teams who are classified as extra board drivers will receive a minimum of thirteen hundred (1300)
miles round trip when dispatched.

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     3. Turning In The Yard Home Terminal (Non-Scheduled Teams)

When mutually agreed between the sleeper team and the Employer, sleeper teams may be allowed to
turn in the yard at their home domicile provided the dispatch wheel is exhausted and/or there are
no other teams rested and available for dispatch. When the Employer turns a sleeper team at their
home domicile any delay in excess of one (1) hour shall be compensable.

The above referenced mileage guarantees are in addition to any other earnings after dispatch.

      C. Dispatch Method

Sleeper cab operations shall be between the designated home terminal and a designated area and/or a
destination terminal unless otherwise agreed. The A, B, C, dispatch principle shall apply.

All regular sleeper runs shall be posted for bid once each six (6) months unless otherwise agreed.
The number of regular runs or teams in designated areas shall be determined by taking fifty percent
(50%) of the average number of runs operated by sleeper teams between two (2) or more designated
points for a period of six (6) months. Disputes over bids will be referred to the Sleeper
Resolution Committee.

The sleeper trip must equal a minimum of thirteen hundred (1300) paid miles.

All sleeper teams must be sent to their home terminal on the third dispatch unless otherwise
mutually agreed.

      D. Laypoint and Layover

The layover provision of this section shall apply at only one away from home terminal, and all time
spent at all other points touched on a round trip from the home terminal exclusive of meal time
shall be paid for at the full hourly rate for each driver.

The layover point shall be the destination of the AB dispatch and shall be designated on the
driver’s original orders prior to the dispatch from the point of origin and shall remain the same
whether or not the drivers reached that point. If the team does not reach the original dispatch
point there shall be no free time.

Upon arrival at a team’s designated lay point, the Employer shall advise as soon as possible, but
not later than thirty (30) minutes after the team signs in, whether the team will be turned or put
to bed.

In the event the team is put to bed, they shall be compensated at the straight-time hourly rate of
pay from the time they signed in until the time they were so notified.

However, in the event of unforeseen circumstances (e.g., road closures; equipment breakdown;
government declared emergency), the Employer may cancel a previously assigned dispatch prior to the
expiration of the one hour free time and put the team to bed. In this circumstance, the team will
be compensated at the straight time hourly rate of pay from the time they signed in until the time
they were so notified. Failure by the Employer to make a load shall not be considered an unforeseen
circumstance.

If the drivers are advised they are turning, the Company will have one-half (1/2) free hour at the
laypoint and one (1) free hour at the home domicile in which to turn the drivers provided there are
safe and sanitary shower facilities equipped with hot and cold water for showering. If the drivers
are not dispatched within the above mentioned one-half (1/2) or one (1) hour free time, they shall
be paid for all time spent in excess of the applicable rate.

If the team is relieved of duty on arrival and signs for eight (8) hours off and then is recalled
within four (4) hours, they shall be paid for all time spent.

Where sleeper teams are required to layover away from their home terminal, layover paid shall
commence following the tenth (10th) hour after the end of the run. If the driver is held over the
tenth (10th) hour the driver shall be guaranteed two (2) hours pay in any event for the layover
time. If the driver is held over more than two (2) hours the driver shall receive layover pay for
each hour up to eight (8) hours in the first eighteen (18) hours of layover period, commencing
after the run ends. The same principle shall apply to each succeeding eighteen (18) hours, and
layover pay shall commence after the tenth (10th) hour.

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      E. Abuse of Free Time

Whenever any employer arbitrarily abuses the free time allowed in this section, then this shall be
considered a dispute and the same shall be subject to the grievance machinery.

     F. Mark-Off Procedure For Nonscheduled Sleeper Cab Drivers

In the event the Company and the Local Union are unable to agree to a mark-off procedure, the
following shall apply unless the supplement provides otherwise.

     1. For the purposes of time off, one thousand (1000) tractor miles equals one (1) sleeper
trip. (For each driver.)

     2. After the completion of four (4) consecutive trips, the drivers will be entitled to
forty-eight (48) hours off, plus an additional eight (8) hours rest. The drivers may waive the
forty-eight (48) hours off.

     3. After the completion of six (6) consecutive trips the drivers will be entitled to
seventy-two (72) hours off, plus an additional eight (8) hours rest. Drivers entitled to such time
off privileges may at their option, exercise time off privilege at the completion of either the
sixth (6th), eighth (8th), or tenth (10th) trips. An extra board team that exercises their maximum
time off after the eighth (8th) or tenth (10th) trip is subject to no more than fifteen percent
(15%) of the active board off at one time.

     4. Where drivers fail to exercise time off privilege after the tenth (10th) trip, they shall
forfeit such time off and the cycle will revert back to subsection 2.

     5. Time off privileges may be exercised only at the completion of the fourth (4th), sixth
(6th), eighth (8th) or tenth (10th) trips upon the drivers returning home. An extra board team that
exercises their maximum time off after the eighth (8th) or tenth (10th) trip is subject to no than
fifteen percent (15%) of the active board off at one time. A driver shall not be denied the time
off in accordance with the fifteen percent (15%) rule more than once prior to receiving such time
off.

     6. The only exception to the above is that the Employer shall provide in the dispatch rules
and/or procedures for thirty-six (36) consecutive hours off duty at the home terminal at least once
a week unless otherwise agreed to, provided the driver has been on the board and required to be
available.

     7. Where only one driver of an established team marks off for any reason, other than “9”
below, he shall remain off until his partner returns to the home terminal, except as mutually
agreed.

     8. In those instances where an extra board driver makes a combination of single operation and
sleeper operation trips each driver will earn one tour for each one thousand (1,000) tractor miles
while on a sleeper trip.

     9. Bid team drivers must take their earned time off at the same time as outlined above.

     10. Sleeper drivers are entitled to ten (10) hours off duty at their home domicile upon the
completion of each round trip exclusive of the two (2) hour call.

      H. Bedding and Linen

Bedding and fresh linen, excluding pillows, for sleeper cabs shall be furnished and maintained by
the Employer in a clean and sanitary condition. Upon expiration of current linen provider
contracts, the drivers will be compensated seven ($7.00) each per trip to furnish and maintain
their linens. A trip is defined as beginning and ending at home domicile.

      I. Sleeper Cab Equipment

All sleeper cab equipment must be provided with air conditioning and heating appliances in
accordance with Article 16, Section 6 of this Agreement. In the event of mechanical failure of such
air conditioning and heating appliances, repairs shall be made at the first point of repair en
route where qualified, certified service and parts are available. Drivers shall be paid for all
time waiting for repairs to be made to heating appliances. In the event an air conditioning

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appliance becomes inoperable, the time necessary to complete the repairs cannot cause an
unreasonable delay in the movement of freight and therefore will be limited to four (4) hours, for
which drivers will be paid. In the event parts and/or qualified, certified service are not
available, necessary repairs shall be completed prior to the equipment being dispatched from the
next scheduled point of dispatch.

      J. Sleeper Cab Occupants

Only two (2) drivers shall be permitted in the sleeper cab equipment at any one time except in the
case of emergency, an act of God, or where new type equipment is put into operation. In no event
shall a master driver be in the cab in addition to the two (2) regular drivers for more than 300
miles or ten (10) hours.

      K. Method of Dispatch At Foreign Domiciles

Foreign domiciled sleeper teams shall be placed on a common rotating wheel at the time they arrive
at a foreign domicile and shall be dispatched off that wheel on a first-in/first-out basis;
provided however, a team may be dispatched out of rotation when receiving a direct dispatch back to
their home domicile. Such direct dispatch may include a drop and pick en route. When more than one
team from a common home domicile is on the foreign wheel, the first team in shall be the team
dispatched out of rotation.

Sleeper teams who are put to bed at a foreign domicile shall be dispatched in accordance with the
procedure herein; provided however, it shall not be a violation or the basis of a runaround claim,
when a foreign team, whose home domicile is common to that of another team who is in bed at the
foreign domicile, has been pre-dispatched on a via through the foreign domicile en route to their
home domicile. A foreign team may not however, be dispatched from a home domicile to a foreign
domicile and then back to their home domicile (ABA) when another team from the same home domicile
is in bed at the foreign domicile.

      L. Foreign Power Courtesy Dispatch

It shall not be a violation or the basis for a runaround when a sleeper team is dispatched on a via
through a foreign domicile where other sleeper teams or single drivers are domiciled when
continuing in motion over their designated sleeper lane, or being dispatched to their home
domicile.

      M. National Sleeper Cab Grievance Committee

The parties shall establish a National Sleeper Committee composed of four (4) union representatives
appointed by the Chairman of TNFINC and four (4) Employer representatives appointed by the Employer
Chairman of the National Grievance Committee. The National Sleeper Committee shall establish rules
of procedure to govern the manner in which proposed sleeper operations are to be heard, procedures
for resolving sleeper issues and procedures for establishing pre-hearing guidelines. Any grievance
concerning the application or interpretation of this section shall be referred to the National
Sleeper Committee for resolution. If the National Sleeper Committee is unable to reach a decision
on an interpretation or grievance, the issue will be referred to the National Grievance Committee.

ARTICLE 9.

PROTECTION OF RIGHTS

Section 1. Picket lines: Sympathetic Action

It shall not be a violation of this Agreement, and it shall not be cause for discharge,
disciplinary action or permanent replacement in the event an employee refuses to enter upon any
property involved in a primary labor dispute, or refuses to go through or work behind any primary
picket line, including the primary picket line of Unions party to this Agreement, and including
primary picket lines at the Employer’s places of business.

Section 2. Struck Goods

It shall not be a violation of this Agreement and it shall not be cause for discharge, disciplinary
action or permanent replacement if any employee refuses to perform any service which his/her
Employer undertakes to perform as an ally of an Employer or person whose employees are on strike
and which service, but for such strikes, would be performed by the

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employees of the Employer or person on strike.

Section 3.

Subject to Article 32 Subcontracting, hereof, the Employer agrees that it will not cease or
refrain from handling, using, transporting, or otherwise dealing in any of the products of any
other Employer or cease doing business with any other person, or fail in any obligation imposed by
the Motor Carriers Act or other applicable law, as a result of individual employees exercising
their rights under this Agreement or under law, but the Employer shall, notwithstanding any other
provision in this Agreement, when necessary, continue doing such business, including pickup or
delivery to or from the Employer’s terminal and to or from the premises of a shipper or consignee.

Section 4.

The layover provision of the applicable Supplemental Agreement shall apply when the Employer
knowingly dispatches a road driver to a terminal at which a primary picket line has been posted as
a result of the exhaustion of the grievance procedure, or after proper notification of a picket
line permitted by the collective bargaining agreement, or economic strikes occurring after the
expiration of collective bargaining agreements, or to achieve a collective bargaining agreement. In
such event and upon his/her request, a driver shall be provided first class public transportation
to his/her home terminal, plus be paid a minimum of eight (8) hours or actual time spent while
returning, whichever is greater. The Employer shall determine the mode of transportation to be
utilized.

ARTICLE 10.

LOSS OR DAMAGE

Section 1.

In the event loss, damage or theft of freight, equipment, materials, or supplies is incurred as a
direct result of a proven gross negligent act by an employee in the performance of assigned work,
when such act knowingly may result in such loss, damage or theft, the employee may be held
responsible for such acts and may be required to assume liability for any such loss, damage or
theft, in whole or in part. The term “willful, gross negligent acts” is intended to describe
independent actions of any employee who knowingly violates established rules or policies that, when
adhered to, clearly prevent loss, damage or theft described herein. Employees shall not be held
responsible or required to assume liability for loss or damage or theft unless clear proof of
willful, gross negligence is shown. In no event will an employee be held responsible for, or
required to assume any liability for any loss, damage or theft when performing assigned work in a
manner as specifically instructed by a supervisor. This Article shall not be utilized in any manner
to hold an employee liable for any loss or damage of equipment under any conditions or for any
damage to cargo as a result of a vehicular accident.

Section 2.

Prior to an employee being charged with the responsibility and liability for any loss, damage or
theft because of willful gross negligent acts on the part of the employee, a hearing shall be held
with the Local Union, the employee and the Employer. Employees who are found to be liable and
required to make restitution for such liability, shall not then be subject to any further
disciplinary action. Any disputes between the parties may be referred to the grievance procedure of
the applicable Area Supplemental Agreement and the National Master Freight Agreement.

ARTICLE 11.

BONDS AND INSURANCE

Section 1.

Should the Employer require any employee to give bond, cash bond shall not be compulsory, and any
premium involved shall be paid by the Employer. The primary obligation to procure the bonds shall
be on the Employer. If the Employer cannot arrange for a bond within ninety (90) days, it must so
notify the employee in writing. Failure to so notify shall relieve the employee of the bonding
requirement.

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If proper notice is given, the employee shall be allowed thirty (30) days from the date of such
notice to make his/her own bonding requirements, standard premiums only on said bond to be paid by
the Employer. A standard premium shall be that premium paid by the Employer for bonds applicable to
all other of its employees in similar classifications. Any excess premium is to be paid by the
employee. Cancellation of a bond after once issued shall not be cause for discharge unless the bond
is cancelled for cause which occurs during working hours, or due to the employee having given a
fraudulent statement in obtaining said bond.

Every driver must maintain a valid commercial driver’s license and be covered by insurance. If an
Employer cannot cover a driver under an existing fleet policy, the Employer will promptly apply to
the state assigned risk pool to provide any comparable coverage. During the pendency of the
application and until insurance is obtained, the driver will not be terminated, but will be taken
out of driving service. When any comparable insurance is obtained, the employee will be responsible
for paying any excess over the standard charges.

Section 2. Corporate Owned Life Insurance

The Employer will not own and/or be the beneficiary of any life insurance policy on the life or
lives of any members of the bargaining unit without obtaining the explicit authorization of the
Teamsters National Master Freight Negotiating Committee and the individual affected employees.

ARTICLE 12.

UNIFORMS

Before the Employer purchases uniforms, it must present a sample of the material for the uniforms
to the Union for approval. If the sample material type is not used in the finished uniforms, the
Union employees are under no obligation to wear the uniform. The Union’s approval shall not be
unreasonably withheld. The Employer agrees that if any employee is required to wear any kind of
uniform as a condition of his/her continued employment, such uniform shall be furnished and
maintained by the Employer, free of charge, at the standard required by the Employer. Said uniforms
shall be made in the United States by union vendors, if possible, and will have the Teamster emblem
appropriately applied.

The Employer shall replace all clothing, glasses, hearing aids and/or dentures not covered by
company insurance or worker’s compensation which are destroyed or damaged in a wreck or fire with
company equipment.

The Employer has the right to establish and maintain reasonable standards for wearing apparel and
personal grooming.

The following provisions shall govern the wearing of shorts, unless the Employer and Local Union
has a prior existing practice:

During the period May 1, through September 30, employees shall be allowed to wear appropriate
shorts, subject to the guidelines set forth herein. Appropriate shorts shall be defined as walking
or Bermuda style shorts with at least two (2) pockets and belt loops and which cannot be shorter
than two (2) inches above the knee, properly hemmed at the bottom and of a conservative basic solid
color, (black, blue, brown or green). Socks and appropriate foot wear must be worn at all times.

Short shorts, cut offs, unhemmed, athletic, gym, biking, spandex and calf length shorts shall not
be allowed.

ARTICLE 13.

PASSENGERS

No driver shall allow anyone, other than employees of the Employer who are on duty, to ride on his
truck except by written authorization of the Employer, or except in cases of emergency arising out
of disabled commercial equipment or an Act of God. No more than two (2) people shall ride in the
cab of a tractor unless required by government agencies or the necessity of checking of equipment.
This shall not prohibit drivers from picking up other drivers, helpers or others in wrecked or
broken down motor equipment and transporting them to the first (1st) available point of
communication, repair, lodging or available medical attention. Nor shall this prohibit the
transportation of other drivers from the driver’s own company at a delivery point or terminal to a
restaurant for meals.

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ARTICLE 14.

COMPENSATION CLAIMS

Section 1. Compensation Claims

     (a) The Employer agrees to cooperate toward the prompt disposition of employee on-the-job
injury claims. The Employer shall provide worker’s compensation protection for all employees even
though not required by state law, or the equivalent thereof, if the injury arose out of or in the
course of employment. No employee will be disciplined or threatened with discipline as a result of
filing an on-the-job injury report. The Employer or its designee shall not visit an injured worker
at his/her home or at a hospital or any location outside the employee’s home terminal without
his/her consent.

     (b) At the time an injury report is turned in, the Employer shall provide the injured employee
with an information sheet briefly outlining the procedure for submitting a worker’s compensation
claim to include the name, address and phone number of the company’s worker’s compensation
representative and other pertinent information relative to claim payment.

     (c) An employee who is injured on the job, and is sent home, or to a hospital, or who must
obtain medical attention, shall receive pay at the applicable hourly rate for the balance of
his/her regular shift on that day. An employee who has returned to his/her regular duties after
sustaining a compensable injury who is required by the worker’s compensation doctor to receive
additional medical treatment during his/her regularly scheduled working hours shall receive his/her
regular hourly rate of pay for such time. Where not prohibited by state law, employees who sustain
occupational injury or illness shall be allowed to select a physician of their own choice and shall
notify the Employer in writing of such physician.

     (d) Road drivers sustaining an injury while being transported in company-provided
transportation for Company purposes at a layover terminal shall be considered as having been
injured on the job.

     (e) In the event that an employee sustains an occupational illness or injury while on a run
away from his/her home terminal, the Employer shall provide transportation by bus, train, plane, or
automobile to his/her home terminal if and when directed by a doctor.

     (f) The Employer agrees to provide any employee injured locally transportation at the time of
injury, from the job to the medical facility and return to the job, or to his/her home if required.

     (g) In the event of a fatality arising in the course of employment, while away from the home
terminal, the Employer shall return the deceased to his/her home at the point of domicile.

     (h) The Employer may publish reasonable safety rules and procedures and provide the Local
Union with a copy. Failure to observe such reasonable rules and/or procedures shall subject the
employee to disciplinary action in accordance with the disciplinary procedures in the applicable
Supplemental Agreement. However, the time limitation relative to prior offenses shall be waived to
permit consideration of the employee’s entire record of failure to observe reasonable safety rules
and/or procedures resulting in lost time personal injuries. This provision does not apply to
vehicular accidents.

When issuing progressive discipline under the terms and conditions of Article 14 Section 1(h), it
is understood that the time limitation relative to prior offenses of failure to observe reasonable
safety rules and/or procedures resulting in lost time injuries is waived and may be included in the
disciplinary process.

However it is also understood that when an employer issues progressive discipline, the employer
shall not utilize prior discipline that is in excess of three (3) years old when issuing additional
progressive discipline, unless the employee has shown a pattern of failure to observe reasonable
safety rules and/or procedures resulting in lost time injuries.

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Section 2. Modified Work

     (a) The Employer may establish a modified work program designed to provide temporary
opportunity to those employees who are unable to perform their normal work assignments due to a
disabling on-the-job injury. Recognizing that a transitional return-to-work program offering both
physical and mental therapeutic benefits will accelerate the rehabilitative process of an injured
employee, modified work programs are intended to enhance worker’s compensation benefits and are not
to be utilized as a method to take advantage of an employee who has sustained an industrial injury,
nor are they intended to be a permanent replacement for regular employment.

An active employee, who is injured on the job, qualifies for workers’ compensation benefits and is
subsequently laid off, will continue to receive compensation payments and benefits for the period
provided by his/her supplement.

     (b) Implementation of a modified work program shall be at the Employer’s option and shall be
in strict compliance with applicable federal and state worker’s compensation statutes. Acceptance
of modified work shall be on a voluntary basis at the option of the injured employee. However,
refusal to accept modified work by an employee, otherwise entitled to worker’s compensation
benefits, may result in a loss or reduction of such benefits as specifically provided by the
provisions of applicable federal or state worker’s compensation statutes. Employees who accept
modified work shall continue to be eligible to receive “temporary partial” worker’s compensation
benefits as well as all other entitlements as provided by applicable federal or state worker’s
compensation statutes. Employees who need additional medical and/or physical therapy may go for such treatments during
scheduled hours for modified work whenever practical and reasonable.

     (c) At facilities where the Employer has a modified work program in place, temporary modified
assignments shall be offered in seniority order to those regular full time employees who are
temporarily disabled due to a compensable worker’s compensation injury and who have received a
detailed medical release from the attending physician clearly setting forth the limitations under
which the employee may perform such modified assignments. Once a modified work assignment is made
and another person is injured, the second person must wait until a modified work opening occurs,
regardless of seniority. All modified work assignments must be made in strict compliance with the
physical restrictions as outlined by the attending physician. All modified work program candidates
must be released for eight (8) hours per day, five (5) days per week. The Employer at its option,
may make a modified work offer of less than eight (8) hours per day where such work is expected to
accelerate the rehabilitative process and the attending physician recommends that the employee
works back to regular status or up to eight (8) hours per day by progressively increasing daily
hours. A copy of any release for modified work must be given to the employee before the modified
work assignment begins.

It is understood and agreed that those employees who, consistent with professional medical
evaluations and opinion, may not be expected to receive an unrestricted medical release, or whose
injury has been medically determined to be permanent and stationary, shall not be eligible to
participate in a modified work program.

In the event of a dispute related to conflicting medical opinion, such dispute shall be resolved
pursuant to established worker’s compensation law and/or the method of resolving such matters as
outlined in the applicable Supplemental Agreement. In the absence of a provision in the
Supplemental Agreement, the following shall apply:

When there is a dispute between two (2) physicians concerning the release of an employee for
modified work, such two (2) physicians shall immediately select a third (3rd) neutral physician
within seven (7) days, who shall possess the same qualifications as the most qualified of the two
selecting physicians, whose opinion shall be final and binding on the Employer, the Union and the
employee. In the event the availability of a qualified physician is in question, the Local Union
and the Company shall resolve such matter by selecting the third (3rd) physician whose opinion
shall be final and binding. The expense of the third (3rd) physician shall be equally divided
between the Employer and the Union. Disputes concerning the selection of the neutral physician or
back wages shall be subject to the grievance procedure.

For locations where the Employer intends to implement a modified work program or has a modified
work program in place, the Local Union shall be provided with a copy of the current form(s) being
used for employee evaluation for release and general job descriptions. This information shall be
general in nature, not employee specific.

When a modified work assignment is made, the employee shall be provided with the hours and days
he/she is scheduled to work as well as the nature of the work to be performed in writing. A copy of
this notice shall also be

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submitted to the Local Union.

An employee who is placed in a modified work position may be subject to medical evaluation(s) by a
physician selected by the Employer to determine if the modified work being performed is
accelerating the rehabilitative process as anticipated by Section 2 above. In the event such
medical evaluation(s) determine that the rehabilitative process is not being accelerated, the
employee shall have the right to seek a second opinion from a physician of his choosing. Any
disputes regarding conflicting medical claims shall be resolved in accordance with the provisions
outlined above. The employee may be removed from the modified work program based upon final medical
findings under this procedure. Employees so removed shall not have their worker’s compensation
benefits affected because of such removal. In the event the employee’s temporary disability
worker’s compensation benefit is subject to reduction by virtue of an applicable Federal or State
statute, the Employer shall pay the difference between the amount of the reduced temporary worker’s
compensation benefit to which the employee would be entitled.

     (d) Modified work shall be restricted to the type of work that is not expected to result in a
re-injury and which can be performed within the medical limitations set forth by the attending
physician. In the event the employee, in his/her judgment, is physically unable to perform the
modified work assigned, he/she shall be either reassigned modified work within his/her physical
capabilities or returned to full “temporary total” worker’s compensation benefits. In the event a
third (3rd) party insurance carrier refuses to reinstate such employee to full temporary total
disability benefits, the Employer shall be required to pay the difference between the amount of the
benefit paid by such third (3rd) party insurer and full total temporary disability benefits.

Determination of physical capabilities shall be based on the attending physicians medical
evaluation. Under no conditions will the injured employee be required to perform work at that
location subject to the terms and conditions of the National Master Freight Agreement or its Area
Supplemental Agreements. Prior to acceptance of modified work, the affected employee shall be
furnished a written job description of the type of work to be performed.

     (e) The modified workday and workweek shall be established by the Employer within the
limitations set forth by the attending physician. However, the workday shall not exceed eight (8)
hours, inclusive of coffee breaks where applicable and exclusive of a one-half- (1/2) hour meal
period and the workweek shall not exceed forty (40) hours, Monday through Friday, or Tuesday
through Saturday, unless the nature of the modified work assignment requires a scheduled workweek
to include Sunday. Whenever possible, the Employer will schedule modified work during daylight
hours, Monday through Friday, or during the same general working hours and on the same workweek
that the employee enjoyed before he/she became injured. In the case of an employee whose workdays
and/or hours routinely varied, the Employer will schedule the employee based on the availability of
the modified assignment being offered. Any alleged abuse of the assignment of workdays and work
hours shall be subject to the grievance procedure.

     (f) Modified work time shall be considered as time worked when necessary to satisfy vacation
and sick leave eligibility requirements as set forth in the National Master Freight Agreement
and/or its applicable Area Supplemental Agreements. In addition to earned vacation pay as set forth
in the applicable Area Supplemental Agreements, employees accepting modified work shall receive
prorated vacation pay for modified work performed based on the weekly average modified work pay.
The only time modified work is used in prorating vacation is when the employee did not qualify
under the applicable Supplemental Agreement.

Holiday pay shall first be paid in accordance with the provisions of the applicable Supplemental
Agreement as it relates to on-the-job injuries. Once such contractual provisions have been
satisfied, holidays will be paid at the modified work rate which is the modified work wage plus the
temporary partial disability benefit.

Sick leave and funeral leave taken while an employee is performing modified work will be paid at
the modified work rate, which is the modified work wage plus the temporary partial disability
benefit. Unused sick leave will be paid at the applicable contract rate where the employee
performed modified work and qualified for the sick leave during the contract year.

     (g) The Employer shall continue to remit contributions to the appropriate health & welfare and
pension trusts during the entire time period employees are performing modified work. The payment of
health & welfare and pension contributions while the employee is on modified work is not included
in the health & welfare and pension contributions required by the Supplement when an employee is
off work on worker’s compensation. Continuation of such contributions beyond the period of time
specified in the Supplemental Agreement for on-the-job injury shall be required. Provisions of this
Section shall not be utilized as a reason to disqualify or remove an employee from the modified
work program.

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     (h) Employees accepting modified work shall receive temporary partial benefits as determined
by each respective state worker’s compensation law, plus a modified work wage when added to such
temporary partial benefit, shall equal not less than eighty-five percent (85%) of forty (40) hours’
pay he/she would otherwise be entitled to under the provisions of the applicable Area Supplemental
Agreement for the first six (6) months from the date the modified work assignment commences. After
this initial six (6) month period, the percentage shall increase to ninety percent (90%) for the
duration of each individual modified work assignment. The Employer shall not refuse to assign
modified work to employees based solely on such employees reaching the ninety percent (90%) wage
level. Such refusal shall be considered an abuse of the program and shall be subject to the
grievance procedure. Modified work assignments beginning or ending within a workweek shall be paid
on a prorated basis; one (1) day equals one-fifth (1/5th).

     (i) Employees accepting modified work shall not be subject to disciplinary action provisions
of the Supplemental Agreements unless such violation involves an offense for which no prior warning
notice is required under the applicable Supplemental Agreement (Cardinal Sins). Additionally, the
provisions of Article 35, Section 3(a), shall apply.

     (j) Alleged abuses of the modified work program by the Employer and any factual grievance or
request for interpretation concerning this Article shall be submitted directly to the Regional
Joint Area Committee. Proven abuses may result in a determination by the National Grievance
Committee that would withdraw the benefits of this Article from that Employer, in whole or in part,
in which case affected employees shall immediately revert to full worker’s compensation benefits.

Section 3. Worker’s Compensation Pay Dispute

Should an employee have an undisputed pay claim concerning the established state worker
compensation amount required by Law, the Employer will provide each individual an emergency dispute
phone number which will be operational twenty-four (24) hours, seven (7) days a week. The
Employer’s Work Compensation Manager will have authority to make immediate payment. The pay
shortage will be reconciled by check delivered by express overnight mail within twenty-four (24)
hours of the call. If the disputed pay is not received within the twenty-four- (24) hour period, an
eight- (8) hour penalty will be paid the employee for every day until the pay is received.

Section 4. Americans with Disabilities Act

The Union and the Employer recognize their obligations under the Americans with Disabilities Act.
It is agreed that the Employer shall determine whether an employee is a qualified individual with a
disability under the ADA and, if so, what reasonable accommodations, if any, should be provided. In
the event that the Employer determines that a reasonable accommodation is necessary, the Employer
shall notify the Local Union before providing the reasonable accommodation to a qualified
bargaining unit employee to ensure that the reasonable accommodation selected by the Employer does
not impact another employee’s seniority or other contract rights.

Any dispute over whether the Employer complied with its duty to notify the Local Union before
implementing a proposed reasonable accommodation or whether providing the reasonable accommodation
violates any employee’s rights under any other provision of the NMFA shall be subject to the
grievance procedure. Disputes over whether the Employer has complied with its legal requirements
under the ADA, including the ADA requirements to provide a reasonable accommodation, however, shall
not be subject to the grievance procedure.

ARTICLE 15.

MILITARY CLAUSE

Employees in service in the uniformed services of the United States, as defined by the provisions
of the Uniform Services Employment and Reemployment Rights Act (USERRA), Title 38, U.S. Code
Chapter 43, shall be granted all rights and privileges provided by USERRA and/or other applicable
state and federal laws. This shall include continuation of health coverage to the extent required
by USERRA, and continuation of pension contributions for the employee’s period of service as
provided by USERRA. Employee shall be subject to all obligations contained in USERRA which must be
satisfied for the employees to be covered by the statute.

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In addition to any contribution required under USERRA, the Employer shall continue to pay health &
welfare contributions for regular active employees involuntarily called to active duty status from
the military reserves or the National Guard for military-related service, excluding civil domestic
disturbances or emergencies. Such contributions shall only be paid for a maximum period of eighteen
(18) months.

ARTICLE 16.

EQUIPMENT, SAFETY AND HEALTH

Preamble

It is agreed that all parties covered by this Agreement shall comply with all applicable federal,
state and local regulations pertaining to worker safety and health and subjects covered by Article
16. Failure to do so shall be subject to the grievance procedure, in accordance with Articles 7 and
8 of the NMFA, and any other remedies prescribed by law after the procedures contained in this
Agreement are exhausted. Class A casual mechanics will not be allowed to sign off safety related
write ups.

Section 1. Safe Equipment

The Employer shall not require employees to take out on the streets or highways any vehicle that is
not in a safe operating condition, including, but not limited to, equipment which is acknowledged
as overweight or not equipped with the safety appliances prescribed by law. It shall not be a
violation of this Agreement or basis for discipline where employees refuse to operate such
equipment unless such refusal is unjustified.

It shall also not be a violation of this Agreement or considered an unjustified refusal where
employees refuse to operate a vehicle when such operation constitutes a violation of any federal
rules, regulations, standards, or orders applicable to commercial motor vehicle safety or health,
or because of the employee’s reasonable apprehension of serious injury to himself/herself or the
public due to the unsafe condition of such equipment. The unsafe conditions causing the employee’s
apprehension of injury must be of such nature that a reasonable person, under the circumstances
then confronting the employee, would conclude that there is a bona fide danger of an accident,
injury, or serious impairment of health, resulting from the unsafe condition.

In order to qualify for protection under this provision, the employee must have sought from the
Employer, and have been unable to obtain, correction of the unsafe condition.

All equipment which is refused because it is not mechanically sound or properly equipped shall be
appropriately tagged so that it cannot be used by other employees until the maintenance department
has adjusted the complaint. After such equipment is repaired, the Employer shall place on such
equipment an “ok” in a conspicuous place so the employee can see the same.

Section 2. Dangerous Conditions

Under no circumstances will an employee be required or assigned to engage in any activity involving
dangerous conditions of work, or danger to person or property or in violation of any applicable
statute or court order, or in violation of a government regulation relating to safety of person or
equipment.

The term “dangerous conditions of work” does not relate to the type of cargo which is hauled or
handled.

Section 3. Accident Reports

Any employee involved in any accident or cargo spill incident, involving any hazardous or
potentially polluting product, shall immediately report said accident or spill incident and any
physical injury sustained. When required by his/her Employer, the employee, before starting his/her
next shift, shall make out an accident or incident report in writing on forms furnished by the
Employer and shall turn in all available names and addresses of witnesses to the accident or
incident. The employee shall receive a copy of the accident or incident report that he/she submits
to his/her Employer. Failure to comply with this provision shall subject such employee to
disciplinary action by the Employer.

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Section 4. Equipment Reports

Employees shall immediately, or at the end of their shift, report all defects of equipment.

     (a) Such reports shall be made on a suitable form furnished by the Employer and shall be made
in multiple copies, one (1) copy to be retained by the employee and one (1) copy to be made
available for inspection by the next driver operating the unit. Such copy will remain in the truck.
Any alleged violation of the above shall not be cause for refusal of the equipment, but shall be
subject to the grievance procedure. The Employer shall not ask or require any employee to take out
equipment that has been reported by any other employee as being in an unsafe operating condition
until the same has been repaired or is certified by a mechanical department that no repairs are
needed and the unit is safe to drive.

     (b) When the occasion arises where an employee gives written report on forms in use by the
Employer of a vehicle being in an unsafe working or operating condition and receives no
consideration from the Employer, he/she shall take the matter up with the officers of the Union who
will take the matter up with the Employer. However, in no event shall an employee be required to
take out on the streets or highways a vehicle that is not in a safe operating condition or in
violation of any federal rules, regulations, standards, or orders applicable to commercial motor
vehicle safety as provided in Section 1 of this Article.

Section 5. Qualifications on Equipment

If the Employer or government agency requests a regular employee to qualify on equipment requiring
a classified or special license, or in the event an employee is required to qualify (recognizing
seniority) on such equipment in order to obtain a better job opportunity with his/her Employer, the
Employer shall allow such regular employee the use of the equipment so required in order to take
the examination on the employee’s own time.

Costs of such license required by a government agency will be paid for by the employee.

An employee unable to successfully pass the DOT Commercial Driver’s License (CDL) examination will
be allowed to take a leave of absence for a period not to exceed one (1) year provided the employee
makes a bona fide effort to pass the test each time the opportunity presents itself.

Once obtained an employee must maintain his/her commercial driver’s license with required
endorsements unless disqualified by regulatory mandate or documented medical disability.

Section 6. Equipment Requirements

     (a) All tractors must be equipped as necessary to allow the driver to safely enter and exit
the cab, and hook and unhook the air hoses. All equipment used as city peddle trucks, and equipment
regularly assigned to peddle runs, must have steps or other similar device to enable drivers to get
in and out of the body. All twin trailers used in LTL pickup and delivery operation with roll up
doors purchased after April 1, 1985 shall be equipped with a hand hold and a DOT bumper which may
serve as a step.

All equipment purchased, ordered, and/or introduced to the Pickup and Delivery operations after
April 1, 2003 will be equipped with air conditioning and will be maintained in proper operating
condition during the period of May 31st through September 30th. The Company
will not exceed two weeks in making necessary air conditioning repairs during this period. It shall
not be a violation of this section to operate any unit while waiting for repairs.

     (b) The Employer shall install heaters and defrosters on all trucks and tractors.

     (c) There shall be first-line tires on the steering axle of all road and local pickup and
delivery power units.

     (d) All road equipment regularly assigned to the fleet shall be equipped with an air-ride seat
on the driver’s side. Such equipment shall be maintained in reasonable operating condition. All new
air-ride seats shall oscillate and have an adjustable lumbar support, height, backrest and seat
tilt.

     (e) Tractors added to the road fleet and assigned to road operations on a regular basis,
whether newly manufactured or not newly manufactured, shall be air conditioned.

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     (f) When the Employer weighs a trailer, the over-the-road driver shall be furnished the
resulting weight information along with his/her driver’s orders.

     (g) All company trailers shall be marked for height.

     (h) No driver shall be required to drive a tractor designed with the cab under the trailer.

     (i) All road and city equipment shall have a speedometer operating with reasonable accuracy.

     (j) The following minimum measurements for fuel tank placement shall apply to tractors added
to the fleet after March 1, 1981, with the understanding that there shall be no retrofit of
equipment currently in use: (1) front of fuel tank to rear of front tire not less than 4 inches;
(2) rear of fuel tank to front of duals not less than 4 inches; (3) bottom of fuel tank to ground
provide clearance not less than 7.5 inches, measured on a flat surface; and (4) all fuel tank
measurements as stated herein include brackets, return lines, etc. in determining clearance.

Any alleged violation of the above requirements shall not be cause for refusal of the equipment,
but shall be subject to the grievance procedure as a safety and health issue.

     (k) The following shall apply to shock absorbers on tractor front axles with the purchase of
newly manufactured tractors which are placed in service after March 1, 1981, and with the
understanding that there shall be no retrofit of equipment currently in use:

Where the manufacturer recommends and provides shock absorbers as standard equipment with the
tractor front suspension assembly, properly maintained shocks on such new equipment shall be
considered as a necessary and integral part of that assembly. Where the manufacturer does not
recommend and provide shock absorbers as standard equipment with the tractor front suspension
assembly, shocks shall not be considered as a necessary or integral part of that suspension system.

Any alleged violation of the above, including maintenance of existing equipment, shall not be cause
for refusal of equipment but shall be subject to the grievance procedure as a safety and health
issue.

     (l)(1) The following shall apply for the minimum interior dimensions of the sleeper berths on
newly manufactured over-the-road tractors purchased and placed in service after January 1, 1987.

     a. Length 80 inches; b. Width 34 inches; and, c. Height 24 inches.

It is understood that a “manufacturing tolerance of error” of one inch (1”) is permissible,
provided the original specifications were in conformity with the above recommended dimensions. It
is understood that there shall be no retrofit of equipment currently in service.

          (2) Interior cab dimensions. Effective January 1, 1988, the Employer, in placing orders for
newly manufactured over-the-road tractors, shall request of the manufacturer in writing that there
will be compliance with as many of the following October, 1985 SAE recommended practices as
possible: J94lE, J1052, Jl521, J1522, J1517, J1516, and J1100. The carrier, upon request, will
furnish proof to the National Safety and Health Committee that a request was made to the
manufacturer for compliance with the aforementioned SAE recommended practices.

     (m) The Employer and the Union recognize the need for safe and efficient twin trailer
operations. Accordingly, the parties agree to the following:

     (1) The Employer shall make available to all drivers involved in the twin trailer operations
training in the proper procedures for the safe hooking and unhooking of dollies and jifflox. Upon
request, the Company will furnish to the Union a copy of their training program.

     (2) Dollies and jifflox shall be counterbalanced or equipped with a crank down wheel to
support the weight of the dolly tongue or jifflox. A handle will also be provided on the tongue of
the dolly or jifflox and shall be maintained.

     (3) A tractor equipped with a pintle hook will be made available to drivers required to drop
and hook twin trailers or triples at closed terminals.

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The Employer shall make a bona fide attempt to make a telephone available for the driver at closed
terminals during the trailer switch.

     (4) Whenever possible, the Company will hook up the heaviest trailer in front in twin trailer
operations. In those instances where it is not possible because of an intermediate drop of less
than one hundred and fifty (150) miles or scaling of the drive axle, the driver after driving the
unit at any point on the trip, determines, at his/her sole discretion, the unit does not handle
properly, may have the Company switch the unit or authorize the driver to switch the unit and be
paid for such time.

     (n)(1) There will be a moratorium on the purchase of diesel powered forklifts and sweepers.

     (2) It shall be standard work practice that every diesel powered sweeper shall be shut off
whenever the operator leaves the seat. Under no circumstances shall diesel powered sweepers be
allowed to idle when not attended.

     (3) Diesel powered sweepers shall be tuned and maintained in accordance with schedules
recommended by their manufacturers.

The Employer shall provide copies of such recommendations to the Union upon request.

     (4) Improperly maintained diesel-powered sweepers may produce visible emissions after startup.
Therefore, any such diesel powered sweeper that is found to be smoking shall be taken out of
service as soon as possible until repairs are made and that condition corrected.

     (5) The Employer agrees to cooperate with the government and/or mutually agreed private
agencies in such surveys or studies designed to analyze the use and operation of diesel powered
sweepers and diesel powered sweeper emissions.

     (o) As of July 1, 1988, as new equipment is ordered or existing equipment requires brake
lining replacement, all brake linings shall be of non-asbestos material where available and
certifiable.

     (p) Slack adjuster equipment (snubbers) used in multiple trailer operations, whether on the
trailers or on the converters, shall be maintained in proper working order. However, it shall not
be a violation of this provision for the unit to be pulled to the next point of repair if the
snubber is inoperative.

     (q) Converter dollies may be pulled on public roads by bobtail tractors if all of the
following conditions are met:

     (1) Tractors used in this type of operation shall have a pintle hook installed which has the
proper weight capacity and is designed for highway use;

     (2) Neither supply nor control air lines are to be connected to the converter dolly when being
pulled by a bobtail tractor, and the tractor protection valve shall be set in the normal bobtail
position;

     (3) After October 1, 1991, tractors used to pull converter dollies bobtail must be equipped
with a type of bobtail proportioning valve (BPV) in the tractor braking system, unless equipped
with ABS;

     (4) It is further agreed such configuration must comply with state and federal law.

     (r) All newly manufactured road tractors regularly assigned to the fleet after July 1, 1991,
shall be equipped with heated mirrors. All road tractors ordered after April 1, 2003 shall be
equipped with a power mirror on the curbside. However, it shall not be a violation of this
provision for the tractor to be dispatched to the next Company point of repair if the heated and/or
power mirror is inoperative.

     (1) All new diesel tractors and new yard equipment shall be equipped with vertical exhaust
stacks.

     (2) All road and city tractors shall be equipped with large spot mirrors (6” minimum) on both
sides of the tractor by January 1,

     1995.

     (3) All road tractors and switching equipment shall be equipped with an operable light of
sufficient wattage on the back of the cab.

     (4) All new road and city equipment shall have operable sun visors.

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     (5) Seats on forklifts and sweepers shall be maintained in good repair.

     (6) On all road and city tractors, the cab door locks shall remain operable and be properly
maintained. Both parties agree that the Employer will have reasonable time to repair the locks.

     (s) All newly manufactured city tractors regularly assigned to the city pickup and delivery
operation after July 1, 1991, shall be equipped with power steering and an air ride seat on the
driver’s side.

     (1) All new road and yard equipment shall have power steering.

     (2) All new forklifts and sweepers shall be equipped with power steering.

     (t) All hand trucks and pallet jacks shall be maintained in good repair.

     (u) All portable and mechanical dock plates shall be maintained in good working condition.

     (v) The parties will maintain a safe and healthy working environment in sleeper operations.
The parties agree to establish a committee composed of four (4) members each to review the comfort
and/or safety aspects of sleeper berths pertaining to ride. Such committee shall meet by mutual
agreement of the Cochairmen as to time and place. The committee shall confer with appropriate
representatives of equipment manufacturers and/or other experts on this subject as may be
available. The intent of the committee is to identify any problems with the comfort and/or safety
aspects of sleeper berths pertaining to ride that may exist, and through its deliberations with the
manufacturers and/or other experts, develop ways and means to correct such situations. The
committee shall report its findings and make recommendations to the National Grievance Committee.

     (1) All new sleeper tractors purchased or leased after February 8, 1998, shall, at a minimum,
be equipped with the manufacturer’s original equipment standard dual heat/air conditioning systems.
This is not intended to preclude the Company from purchasing newer technology on future purchases,
should such become available prior to the expiration of this Agreement.

     (2) Bunk restraint strap/net buckles on sleeper equipment shall be mounted on the entrance
side of the sleeper berth by April 1, 1995.

     (3) New sleeper equipment purchased on or after April 1, 1995, shall be equipped with a power
window on the passenger’s side of the cab that is operable from the driver’s side of the cab.

     (4) All sleeper cabs added to the Employer’s fleet after April 1, 2003 will be walk-in sleeper
berths. with at least the following dimensions:

     The measurement of 15-3/4 inches from the front of the mattress to the closed sleeper curtain
at any point across the cab shall apply for the minimum interior walk-in dimension on newly
manufactured over-the-road sleeper tractors ordered after April 1, 2008. It is understood that the
contractual width of a sleeper mattress is 34 inches when determining the 15-3/4 inches from the
front of the mattress to the sleeper curtain.

All walk-in sleeper units introduced into operation after April 1, 2008 will have a minimum sleeper
berth height of 65 inches from the floor to interior ceiling of the sleeper berth. It is also
understood that the entrance opening into the sleeper berth area will be a minimum of 64 inches.

This will not apply to triple runs as the length now prohibits. However, if and when it becomes
legal to run walk-in sleepers on triple lanes, all new equipment ordered after that effective date
will be equipped with walk-in sleeper berths.

     (5) All sleeper tractors introduced into Employer linehaul operations after April 1, 2008 will
be equipped with an engine and/or exhaust brake. The parties understand that a unit with an
inoperable engine brake system will not be considered out of service. Repairs will be performed at
the team’s home terminal at the end of that team’s tour.

     (6) All sleeper tractors will be set so that the unit will continue to idle, except if (a)
federal, state, or local laws or regulations require the Employer to limit or eliminate tractor
idle time or (b) the unit is equipped with an auxiliary power pack that provides heat and air
conditioning to the sleeper berth area.

     (w) Employee will not be required to climb on unguarded trailer roofs for snow removal.

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     (x) At least one vent on the sleeper to open front or back.

     (y) The Employer shall repair inoperable air conditioning systems on Employer city tractors
between the dates of March 15 and November 15. The Employer shall perform such repairs within
fourteen (14) days of written notification from an employee or the Local Union that the air
conditioning system on a particular city tractor is inoperable.

     (z) All linehaul tractors introduced into Employer linehaul operations after April 1, 2008
will be equipped with a cab filter system that is designed and available from the tractor’s
manufacturer.

     (aa) The Employer understands tractor interiors should be maintained in a clean condition so
units are safe to operate. Concerns about the cleanliness of tractor interiors must first be raised
and reviewed at the local level. In the event the parties are unable to resolve the issue locally,
the parties shall refer the issue to the Employer’s V.P. or Equipment Services for resolution.

Section 7. National Safety, Health & Equipment Committee

The Employer and the Union shall continue the National Safety, Health & Equipment Committee. Such
Committee shall be comprised of qualified representatives to consider safety, health and equipment
issues. The Committee shall consult among themselves and/or with appropriate government agencies,
state and federal, on matters involving all aspects of trucking operations safety and health and
issues related to equipment safety. Such Committee shall convene on a regular basis, with an agenda
to be agreed to by the respective chairmen.

Any grievance arising under this Article shall be processed through the Regional Joint Area level
in accordance with rules and procedures agreed to by the National Safety, Health & Equipment
Committee and approved by the National Grievance Committee.

Section 8. Hazardous Materials Program

Parties must update the Hazardous Materials Program guidelines with the understanding that the
Union and the Employer will revise the hazardous materials program and address only the mandated
requirements.

Section 9. Union Liability

Nothing in this Agreement or its Supplements relating to health, safety or training rules or
standards shall create any liability or responsibility on behalf of the Union for any job-related
injury or accident to any employee or any other person. Further, the Employer will not commence
legal action against the Union as a result of the Union’s negotiation of safety standards contained
in this Agreement or failure to properly investigate or follow-up Employer compliance with those
safety standards.

Section 10. Government Required Safety & Health Reports

The Employer shall provide, upon written request by the Local Union, a copy of any occupational
incident report that is required to be filed with a federal government agency on safety and health
subjects addressed by Article 16 only. Such reports shall be free of charge for one (1) copy.

Employees and authorized Union representatives shall have access to written occupational safety and
health programs. Upon request, the Employer shall provide one (1) copy of the programs to the
authorized Union representative free of charge.

Section 11. Facilities

Dock floors shall be maintained in good repair and reasonably free from potholes.

Yards shall be maintained reasonably free from potholes and reasonably effective dust control
measures shall be implemented as necessary.

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Breakrooms, and storage areas for linens, mattresses and individual towels shall be maintained in a
sanitary condition.

Restrooms and showers shall be maintained in a sanitary condition. Showers, where provided, shall
have body soap or other appropriate cleansing agents and clean individual towels. The requirement
to provide a shower which is maintained in a sanitary condition is not satisfied by the
availability of a Hazmat shower.

The employer agrees to maintain clean restrooms and break rooms on a regular basis throughout the
day.

Suitable windshield/window cleaning materials shall be available to include a long handled
brush/squeegee.

ARTICLE 17.

TIMELY PAY FOR DRIVERS

Every effort will be made to accommodate drivers who are away from their home terminal at the
conclusion of a pay period to ensure that those drivers are paid on a timely basis.

ARTICLE 18.

OTHER SERVICES

In the event an Employer, party to this Agreement, may require the services of employees coming
under the jurisdiction of this Agreement in a manner and under conditions not provided for in this
Agreement, then and in such instances the Local Union and the Employer concerned may negotiate such
matters for such specific purposes, subject to the approval of the Multi-Region Change of
Operations Committee.

ARTICLE 19.

POSTING

Section 1. Posting of Agreement

A copy of this Agreement shall be posted in a conspicuous place in each garage and terminal.

Section 2. Union Bulletin Boards

The Employer agrees to provide suitable space for the union bulletin board in each garage, terminal
or place of work. Postings by the Union on such boards are to be confined to official business of
the Union.

All Union bulletin boards must be glass encased and the steward and Business Agent given a key. The
Employer shall have 90 days to comply.

ARTICLE 20.

UNION AND EMPLOYER COOPERATION

Section 1. Fair Day’s Work for Fair Day’s Pay

The parties agree at all times as fully as it may be within their power to cooperate so as to
protect the longrange interests of the employees, the Employers signatory to this Agreement, the
Union and the general public served by the members of the trucking industry party to this
Agreement.

The Union and the Employer recognize the principle of a fair days work for a fair days pay; that
jobs and job security of employees working under this Agreement are best protected through
efficient and productive operations of the Employer and the trucking industry; and that this
principle shall be recognized in the administration of this Agreement and its Supplements and the
resolution of all grievances thereunder.

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Section 2. Joint Industry Development Committee

The parties recognize that the unionized LTL industry is losing market share and jobs to
competitors. The parties recognize that it is in the interest of the Union and the Employers to
return the LTL industry to health and to foster its growth. Only if the industry prospers and grows
will the industry’s employees, whom the Union represents, achieve true job and economic security.
Only if the industry prospers and grows will the industry have access to the resources it needs to
capitalize and be competitive.

Recognizing that returning the industry to health should be a cooperative, longterm effort, the
Teamsters National Freight Industry Negotiating Committee (“TNFINC”) and the Employer Association
agree to establish a Joint Industry Development Committee to serve as a vehicle for this effort.
The purpose of the Committee will be to perform the following tasks: address the principles of an
intermodal truckload agreement as a means of capturing new market and creating additional city/P&D
jobs; develop data to evaluate and monitor industry and competitor productivity, costs and
operations; catalogue, compare and evaluate work rules, practices and procedures among the various
NMFA supplements and the Employer Association’s companies; make joint recommendations to the
parties about any changes in the NMFA and its supplements that the Committee believes should be
considered in the next round of negotiations for the new NMFA; solicit grants for joint activities
that benefit the industry and its bargaining unit employees, such as driver training schools; and
monitor pending legislation and executive action on the national, state and local level that may
affect the welfare of the industry and, where appropriate, jointly recommend actions that further
the interests of the industry and its bargaining unit employees and jointly present the views of
the Joint Committee to legislative and executive bodies.

The Committee shall operate as a labor management committee within the meaning of Section 302(c)
(9) of the LMRA, as amended, established and functioning so as to fulfill one or more of the
purposes set forth in Section 6(c)(2) of the Labor Management Cooperation Act of 1978. The
Committee shall have the full support of both the International Brotherhood of Teamsters and the
Employer Association in the Committee’s efforts to identify problems, formulate plans to solve
those problems and, where appropriate, conduct joint activities
designed to implement the plans.

The Chairman of TNFINC will appoint five (5) Union representatives to the Joint Committee. The
Employer Association will appoint five (5) Employer representatives to the Joint Committee.
Appointments to the Joint Committee will be made in a manner to assure that there are persons
serving who are familiar with the full range of operations undertaken by Employer Association’s
carriers under all supplemental agreements. The Joint Committee shall meet at least quarterly and
may appoint continuing subcommittees to carry out specific tasks. The Union and Employer
representatives to the Joint Committee will establish procedures for the operation of this
Committee.

Section 3. Benefits Joint Committee

The Union and the Employers will establish a Benefits Joint Committee to review the provision of
health & welfare and pension benefits to employees covered by this Agreement. This Committee is
charged with the critical responsibility of ensuring that employee health & welfare and pension
benefits are made available to employees covered by the terms of the NMFA in a secure and
cost-efficient manner. It is anticipated that this Committee shall serve as a source of continuing
study regarding the most efficient manner of providing benefits to covered employees. The Union and
the Employers will establish procedures for the operation of this Committee. The Committee will
make periodic reports and recommendations to TNFINC and TMI.

Section 4. New Business/Job Creation Opportunities

The parties recognize that there may be new job opportunities in markets and/or services not
currently performed under the Agreement. During the term of the Agreement, the Employer may propose
to TNFINC a new business opportunity which would increase Teamster jobs. The Employer’s proposal to
TNFINC must contain a detailed description of the proposed new business opportunity and the
specific protections to ensure that the proposal will not impact bargaining unit employees. In no
event shall the Employer’s new business opportunity proposal have an adverse impact on existing
bargaining unit employees, the work performed by the bargaining unit, or violate any of the
bargaining unit employees’ contract rights. The Employer’s proposal must be approved by TNFINC and
by the Union Supplemental Negotiating Committees and Local Unions in the Supplemental Areas where
the proposed new business opportunities exist.

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ARTICLE 21.

UNION ACTIVITIES

Any employee, member of the Union, acting in any official capacity whatsoever shall not be
discriminated against for his/her acts as such officer of the Union so long as such acts do not
interfere with the conduct of the Employer’s business, nor shall there be any discrimination
against any employee because of Union membership or activities.

A Union member elected or appointed to serve as a Union official shall be granted a leave of
absence during the period of such employment, without discrimination or loss of seniority rights,
and without pay.

ARTICLE 22.

OWNER-OPERATORS

In the event the Employer employs employee owner-operators, the Employer will negotiate the wages,
benefits and working conditions for these owner-operators with TNFINC.

ARTICLE 23.

SEPARATION OF EMPLOYMENT

The Employer must mail earnings to discharged employees by certified mail the next business day,
unless the employee is paid by direct deposit. The foregoing shall not apply to unused vacation
unless required otherwise by law. Vacation pay for which the discharged employee is qualified shall
be paid no later than the first (1st) day following final determination of the discharge.

Upon a permanent terminal closing and/or cessation of operations, the Employer shall pay all money
due to the employee during the first (1st) payroll department working day following the date of the
terminal closing and/or cessation of operations.

Failure to comply shall subject the Employer to pay liquidated damages in the amount of eight (8)
hour’s pay for each day of delay. Upon quitting, the Employer shall pay all money due to the
employee on the next regular payday for the week in which the resignation occurs.

ARTICLE 24.

INSPECTION PRIVILEGES AND EMPLOYER

AND EMPLOYEE IDENTIFICATION

Authorized agents of the Union shall have access to the Employer’s establishment during working
hours for the purpose of adjusting disputes, investigating working conditions, collection of dues,
and ascertaining that the Agreement is being adhered to; provided, however, there is no
interruption of the firm’s working schedule.

Company representatives, if not known to the employee, shall identify themselves to employees prior
to taking disciplinary action.

Safety or other company vehicles shall be identified when stopping company equipment.

Should the Employer find it necessary to require employees to carry or record full personal
identification, such requirement shall be complied with by the employees. The cost of such personal
identification shall be borne by the Employer. No employee will be required to have their drivers
license reproduced in any manner except by their employer, law enforcement agencies, government
facilities and facilities operating under government contracts that require such identification to
enter the facility.

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ARTICLE 25.

SEPARABILITY AND SAVINGS CLAUSE

If any article or section of this Agreement or of any Supplements thereto should be held invalid by
operation of law or by any tribunal of competent jurisdiction, or if compliance with or enforcement
of any article or section should be restrained by such tribunal pending a final determination as to
its validity, the remainder of this Agreement and of any Supplements thereto, or the application of
such article or section to persons or circumstances other than those as to which it has been held
invalid or as to which compliance with or enforcement of has been restrained, shall not be affected
thereby.

In the event that any article or section is held invalid or enforcement of or compliance with which
has been restrained, as above set forth, the parties affected thereby shall enter into immediate
collective bargaining negotiations after receipt of written notice of the desired amendments by
either Employer or Union for the purpose of arriving at a mutually satisfactory replacement for
such article or section during the period of invalidity or restraint. There shall be no limitation
of time for such written notice. If the parties do not agree on a mutually satisfactory replacement
within sixty (60) days after receipt of the stated written notice, either party shall be permitted
all legal or economic recourse in support of its demands notwithstanding any provisions of this
Agreement to the contrary.

ARTICLE 26.

TIME SHEETS, TIME CLOCKS, VIDEO

CAMERAS, AND COMPUTER TRACKING DEVICES

Section 1. Time Sheets and Time Clocks

In over-the-road or line operations, the Employer shall provide and require the employee to keep a
time sheet or trip card showing the arrival and departure at terminal and intermediate stops and
cause and duration of all delays, time spent loading and unloading, and same shall be turned in at
the end of each trip. In local cartage operations, a daily time record shall be maintained by the
Employer at its place of business. All Employers who employ five (5) or more people at any terminal
shall have time clocks at such terminals.

Employees shall punch their own time cards.

The Employer shall maintain sign-in and sign-out records at terminals. All road drivers must record
their name, home domicile, origin, destination and arrival and/or departure times. The Employer
shall make available upon the written request of a Local Union information regarding the
destination of loads and/or where loads were loaded within the time limits set forth in the
grievance procedure.

The Employer may substitute updated time recording equipment for time cards and time sheets.
However, a paper trail shall be maintained.

The Employer may computerize the sign-in and sign-out records. However, at all times, the Union
shall have reasonable access to a paper record of the sign-in and sign-out records.

Section 2. Use of Video Cameras for Discipline and Discharge

The Employer may not use video cameras to discipline or discharge an employee for reasons other
than theft of property or dishonesty. If the information on the video tape is to be used to
discipline or discharge an employee, the Employer must provide the Local Union, prior to the
hearing, an opportunity to review the video tape used by the Employer to support the discipline or
discharge. Where a Supplement imposes more restrictive conditions upon use of video cameras for
discipline or discharge, such restrictions shall prevail.

The Employer shall not install or use video cameras in areas of the Employer’s premises that
violate the employee’s right to privacy such as in bathrooms or places where employees change
clothing or provide drug or alcohol testing specimens.

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Section 3. Computer Tracking Devices

Computer tracking devices, commonly known as “Black Boxes”, mandated by regulations shall not be
used for disciplinary purposes, except in those incidents of violations of Federal Mandated
Regulations or when an employee has intentionally committed malicious damage to the Employer’s
equipment or when an employee has unsafely operated the Employer’s commercial motor vehicles.

ARTICLE 27.

EMERGENCY REOPENING

In the event of war, declaration of emergency, imposition of mandatory economic controls, the
adoption of national health care or any congressional or federal agency action which has a
significantly adverse effect on the financial structure of the trucking industry or adverse impact
on the wages, benefits or job security of the employees, during the life of this Agreement, either
party may reopen the same upon sixty (60) days’ prior written notice and request renegotiation of
the provisions of this Agreement directly affected by such action.

Upon the failure of the parties to agree in such negotiations within the subsequent sixty- (60) day
period, thereafter, either party shall be permitted all lawful economic recourse to support its
request for revisions. If governmental approval of revisions should become necessary, all parties
will cooperate to the utmost to attain such approval. The parties agree that the notice provided
herein shall be accepted by all parties as compliance with the notice requirements of applicable
law, so as to permit economic action at the expiration thereof.

ARTICLE 28.

SYMPATHETIC ACTION

In the event of a labor dispute between any Employer, party to this Agreement, and any
International Brotherhood of Teamsters Union, parties to this or any other International
Brotherhood of Teamsters’ Agreement, during the course of which dispute such Union engages in
lawful economic activities which are not in violation of this or such other Agreement, then any
other affiliate of the International Brotherhood of Teamsters, having an agreement with such
Employer shall have the right to engage in lawful economic activity against such Employer in
support of the above first mentioned Union notwithstanding anything to the contrary in this
Agreement or the International Brotherhood of Teamsters’ Agreement between such Employer and such
other affiliate, with all of the protection provided in Article 9.

ARTICLE 29.

SUBSTITUTE SERVICE

Section 1. Piggyback Operations

     (a) An Employer shall not use piggyback over the same route where the Employer has established
relay runs or through runs except to move overflow freight or as otherwise provided in Section 3
herein.

     (b) It is recognized and agreed that there were two distinct and separate types of rail
operations in effect on April 1, 1994: (1) the use of rail to move overflow freight; and (2)
approved and/or agreed to rail operations. Accordingly, the provisions of this Section 1 shall
apply in its entirety to the overflow rail operations. This Section 1 shall only apply to the
approved and/or agreed to rail operations to the extent it has been historically applied prior to
April 1, 1994.

If a driver is available (which includes the two (2)hour period of time prior to end of his/her
rest period) at point of origin when a trailer leaves the yard for the piggyback ramp, such
driver’s runaround compensation shall start from the time the trailer leaves the yard. Available
regular drivers at relay points shall be protected against runarounds if a violation occurred at
the point of origin.

If the Employer does not have an over-the-road domicile at the point of origin, the Employer shall
protect against

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runaround the available drivers at the first relay point over which the freight would normally move
had it not been placed on the rail. Available regular drivers at relay points shall be protected
against runaround if a violation occurred at the first relay point.

The Employer shall not reduce or fail to increase the road driver complement, including the
addition of equipment, at the point of origin for the purpose of creating an overflow of freight to
avoid the application of this Section.

     (c) When an Employer utilizes Piggyback operations as a substitute service to deliver overflow
loads and such substitute service is matched in both directions (East to West and West to East or
North to South and South to North), it is understood and agreed by the parties that the Employer
will be required to add a sufficient number of employees and the necessary amount of equipment to
move trailers over the road when the volume of matched loads reaches a level to insure efficient
utilization of equipment and regular work opportunity for the added employees.

It is the intent of the parties in this Section 1 to maximize the movement of freight over the
Employer’s established relay runs, thereby minimizing the use of substitute service.

     The record keeping requirement set out in Section 2 below will provide the Union with the basis of
monitoring the use of such piggyback operation.

     (d) The Employer agrees the non-employee owner-operators, birdy-back, fishy-back and barge
operations will not be used over the same routes where the Employer has established relay runs
during the term of this Agreement.

Section 2. Maintenance of Records

     (a) Trailers piggybacked as a substitute service as provided in Section 1 are to be signed in
and signed out on the regular dispatch sheet in road operations, and where there are no road
operations sign-in and sign-out sheets shall be maintained at an appropriate location, including
trailers taken to and from the rail yard by city employees. These sheets will be made available,
upon request, to the drivers for a period of thirty (30) days. The Employer shall report in writing
on a monthly basis to the Local Union at the rail origin point, or in cases where there are no
drivers domiciled at the rail origin point to the Local Union at the first driver relay point
affected, the number of trailers put on the rail at the rail origin point. The Employer shall also
report the origin, destination, trailer/load number, trailer weight and the time the trailer/load
leaves the Employer’s yard for the rail yard. The time limits set forth in the Supplemental
Agreement for filing claims based upon the monthly report shall commence to run upon the receipt of
the report by the Local Union.

     (b) With regard to use of substitute service as provided in Section 1, full and complete
records of handling, dispatch and movement of such units system-wide shall be kept by the Employer
and a report, which will include the date of all outbound rail movement, all points of origin and
destination, all trailer numbers and the name of each railroad/routing, shall be sent on a
quarterly basis to the office of the National Freight Director and the affected Area Regional
Freight Director.

Where inspection of the records indicates that piggyback is being used as a substitute for road
operations, as defined in Section 1 of this Article, over an established relay, rather than
handling overflow traffic, the grievance procedure may be invoked at the appropriate Regional Joint
Area Committee by the Regional Freight Coordinator or the office of the National Freight Director
to provide a reasonable remedy for the improper usage of piggyback, including the revocation of the
use of substitute service, for repeated violations over such relay.

     (c) With regard to trailers moved on rail as an approved intermodal operations set forth in
Section 3, the Employer shall report in writing on a monthly basis to each Local Union affected,
the number of trailers put on the rail at the rail origin points of the approved intermodal
operations. The Employer shall also report the origin, destination, trailer/load number, trailer
weight and the time the trailer/load leaves the Employer’s yard for the rail yard.

In addition, the Employer shall, on a quarterly basis, send to the office of the National Freight
Director a report containing the total intermodal rail miles as reported on line 6 of the Bureau of
Transportation Statistics (BTS) Schedule 600 annual report and the total miles as reported on line
7 of the BTS Schedule 600 annual report.

     (d) With regard to the use of a Preferred Company as provided in Section 6, the Employer shall
report in

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writing on a monthly basis to each Local Union affected, the number of trailers tendered to any
Preferred Company. The Employer also shall report the origin, destination, trailer/load number,
trailer weight and the time the trailer/load leaves the Employer’s yard.

In addition, the Employer shall, on a quarterly basis, send to the office of the National Freight
Director a report containing the total number of miles the Employer utilized any Preferred Company
consistent with the requirements of Article 29, Section 6.

Section 3. Intermodal Service

     (a) The parties recognize that in 1991, Congress passed the Intermodal Surface Transportation
Efficiency Act of 1991 and declared the policy of the United States to be one of promoting the
development of a national intermodal transportation system consisting of all forms of
transportation in a unified, interconnected manner. The parties have, therefore, entered into this
Agreement to enhance the Employer’s opportunities to secure the benefits which flow from this
national policy of encouraging intermodal transportation, including long-term stable and secure
employment. At the same time, the parties recognize the need to minimize and provide for the impact
which intermodal operations may have on certain employees covered by this Agreement.

     (b) Use of Intermodal Service

     1. Subject to the conditions set forth hereinafter, an Employer may establish a new intermodal
service over the same route where the Employer has established relay runs or through runs.

Present relay or through operations may not be reduced, modified or changed in any other manner as
the result of the implementation of a new intermodal service until such time as the proposed
intermodal operation has been approved by the National Intermodal Committee. The Employer shall
submit to the National Intermodal Committee an application for approval which shall identify the
road operation(s) the intended intermodal service will reduce and/or eliminate; a list identifying
the name and seniority date of each driver affected by the intended intermodal service(s); and a
list by domicile of each of the road drivers openings available.

In the event the National Intermodal Committee is unable to agree on whether or not the Employer’s
proposed intermodal operations meet the criteria set forth below, the proposed operation shall not
be approved until such time as those issues are resolved. This provision shall not be utilized as a
method to delay and/or deny a proposed intermodal operation when the criteria set forth below have
been clearly satisfied.

     (a) There shall be no more than two (2) intermodal changes approved during the term of this
Agreement; and

     (b) No more than ten (10) percent of the Employer’s total active road driver seniority list as
of April 1, 1998 shall be affected by the intermodal changes approved during the term of this
Agreement.

In the event a proposed intermodal operation also includes the relocation of work that is subject
to the provisions of Article 8, Section 6, the proposed intermodal operations and the relocation of
work subject to Article 8, Section 6, may be heard by a combined National Intermodal/Change of
Operations Committee on a joint record, and the seniority rights of all affected employees shall be
determined by such Committee, which shall have the authority granted in Article 8, Section 6(g).

     2. An approved intermodal operation that provides service over established relay and/or
through operations shall include protection for all bid drivers during each dispatch day and all
extra board drivers during each dispatch week at each of the affected domiciles.

For purposes of determining the weekly protection for extra board drivers, the affected driver’s
average weekly earnings during the previous four (4) week period in which the driver had normal
earnings shall be considered the weekly protection when violations occur.

     3. When transporting any shipment by intermodal service within the Employer’s terminal
network, the Employer shall utilize its drivers subject to the applicable respective area
supplemental agreements to pickup such shipments from the shipper at point of origin and/or the
Employer’s terminal and deliver them to the applicable intermodal exchange point. The Employer also
shall use its drivers to deliver intermodal shipments to the consignee

52

 

or the Employer’s terminal. A driver may be required to drive through other terminal service areas
to the intermodal exchange point to pickup and deliver intermodal shipments without penalty.

     4. Subject to the provisions of Section 6 of the Article, total intermodal rail miles included
on line 303 of Schedule 300 of the BTS Annual Report shall not exceed 28 percent of the Employer’s
total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any calendar
year. In the event intermodal rail miles exceed this 28 percent maximum, the Employer shall be
required to remove an appropriate amount of freight from the rail and add a corresponding number of
drivers at each affected domicile.

The parties recognize that the current shipping markets demand expedited delivery of freight in a
manner that may not be accomplished by hauling certain freight by rail. These market demands create
a need to reduce the amount of freight hauled by rail and to use alternative methods of substitute
service. As contemplated by Article 20, Section 4, new business opportunities may be pursued that
promote new Teamster job opportunities while protecting existing Teamster jobs, benefits and
working conditions. With these facts in mind, the rail miles as a percentage of total miles will be
reduced as follows: effective Calendar Year 2010, the maximum amount of rail miles as a percentage
of total miles as calculated above will be reduced from 24% to 21.5%. Effective Calendar Year 2011,
the maximum amount of rail miles as a percentage of total miles as calculated above will be reduced
from 21% to 21%. Effective Calendar Year 2012, the maximum amount of rail miles as a percentage of
total miles as calculated above will be reduced from 21% to 19%. The reduction in rail miles during
the term of this Agreement is subject to the provisions of Article 29, Section 6.

The National Intermodal Committee shall establish rules and guidelines that will allow the Union
the opportunity to verify and audit the Employer’s BTS rail reports. In the event the Union
establishes through the grievance procedure that an Employer has falsified the BTS reports in order
to increase the maximum amount of intermodal rail miles permitted under this Article, the remedy
for such a violation shall include a cessation of the Employer’s affected intermodal service until
such time as the issue has been resolved to the satisfaction of the Union. In the event the BTS
rail and/or line haul miles reporting requirements are modified and/or eliminated, the parties will
meet to develop a substitute reporting procedure consistent with those of the BTS.

     (c) Job Protections for Current Road Drivers

     1. Rail operations that are subject to the provisions of Section 1(b) above shall not result
in the layoff or involuntary relocation of any driver at any affected road driver domicile.

     2. During the term of this Agreement, an Employer shall be permitted no more than two (2)
Intermodal Changes whereby the Employer may reduce and/or eliminate existing road operation(s)
through the use of intermodal service. It is specifically agreed that a total of no more than ten
(10) percent of the Employer’s total active road driver seniority list as of April 1, 2003, shall
be affected by the Intermodal Changes during the term of this Agreement.

Any road driver who is adversely affected by an approved Intermodal Operation and would thereby be
subject to layoff, or who is on layoff at an affected domicile at the time an Intermodal Operation
is approved, shall be offered work opportunity at other road driver domiciles within the Employer’s
system. The Employer shall include in its proposed Intermodal Operations specific facts that
adequately support the Employer’s claims that there will be sufficient freight to support the work
opportunities the Employer proposes at each gaining domicile. In the event there is more than one
(1) domicile involved, the drivers adversely affected shall be dovetailed on a master seniority
list and an opportunity to relocate shall be offered on a seniority basis, subject to the
provisions of Article 8, Section 6. The “hold” procedures set forth in Article 8, Section 6 of the
NMFA shall be applicable. Where the source of the proposed work opportunity is presently being
performed by bargaining unit employees over the road, the Employer shall be required to make
reasonable efforts to fill the offered positions as set forth in Article 8, Section 6(d)(6).

Drivers who relocate under this provision shall be dovetailed on the applicable seniority list at
the domicile they bid into. Health & welfare and pension contributions shall be remitted in
accordance with the provisions of Article 8, Section 6(a) and moving and lodging shall be paid in
accordance with Article 8, Section 6(c) of the NMFA.

It is understood and agreed that the intent of this provision is to provide the maximum job
security possible to those drivers affected by the use of intermodal service. Therefore, the number
of drivers on the affected seniority lists at rail origin points at the time an intermodal change
becomes effective shall not be reduced during the term of this Agreement other than as may be
provided in subsequent changes of operations. Drivers on the affected seniority lists at gaining
domiciles at the time an intermodal change becomes effective, shall not be permanently laid off
during the

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term of this Agreement.

The senior driver voluntarily laid off at an intermodal losing domicile will be restored to the
active board each time foreign drivers or casuals (where applicable) make ten (10) trips (tours of
duty) within any thirty (30) calendar day period on a primary run of such domicile, not affected by
a Change of Operations.

For the purposes of this Section, short-term layoffs (1) that coincide with normal seasonal freight
flow reductions that are experienced on a regional basis and that include a reduction in rail
freight that corresponds to the reduction in truck traffic, or (2) that are incidental day-to-day
layoffs due to reasons such as adverse weather conditions and holiday scheduling, shall not be
considered as a permanent layoff. Layoffs created by a documented loss of a customer shall not
exceed thirty (30) days. Any layoff for reasons other than as described above shall be considered
as a permanent layoff. The Employer shall have the burden of proving that a layoff is not
permanent.

In order to ensure that the work opportunities of the drivers at the gaining domiciles are not
adversely affected by the redomiciling of drivers, the bottom twenty-five percent (25%) of the
drivers at a gaining domicile shall not have their earnings reduced below an average weekly
earnings of seven hundred dollars ($700). This seven hundred dollar ($700) average wage guarantee
shall not start until the fourth (4th) week following the implementation of the approved Intermodal
Change of Operation.

It is not the intent of this provision to establish a seven hundred dollar ($700) per week as an
artificial base wage but rather a minimum guarantee. This provision shall not preclude the
short-term layoffs as defined above. The Employer shall have the burden of proving that drivers at
the gaining domiciles have not had their work opportunities adversely affected by the redomiciling
of drivers.

The seven hundred dollar ($700) average wage guarantee shall be determined based on the average
four (4) weeks earnings of each active protected driver on the bottom twenty-five percent (25%) of
the seniority roster. When the earnings of any active protected driver in the bottom twenty-five
percent (25%) of the seniority roster totals less than two thousand, eight hundred dollars ($2,800)
during each four- (4) week period, the driver shall be compensated for the difference between
actual earnings and two thousand, eight hundred dollars ($2,800).

The four- (4) week average shall be calculated each week on a “rolling” basis. A “rolling” four-
(4) week period is defined as a base week and the previous three consecutive weeks. Where an
Employer makes a payment to an employee to fulfill the guarantee, the amount paid shall be added to
the employee’s earnings for the base week of the applicable four (4) week period and shall be
included in the calculations for subsequent four- (4) week “rolling” periods to determine whether
any further guarantee payments to the employee are due.

Time not worked shall be credited to drivers for purposes of computing earnings in the following
instances:

     a. Where a driver is offered a work opportunity that the driver has a contractual obligation
to accept, and the driver elects not to accept such work, the driver shall have an amount equal to
the amount of the wages such work would have generated credited to such driver for purposes of
determining the seven hundred dollar ($700) average wage guarantee.

No driver shall be penalized by having contractual earned time off credited for purposes of
determining the seven hundred dollar ($700) average wage guarantee. However, where a driver takes
earned time off in excess of forty-eight (48) hours during any work week, that work week shall be
excluded from the rolling four- (4)week period used to determined the seven hundred dollar ($700)
average wage guarantee.

     b. Where a driver uses a contractual provision to refuse or defer work so as to knowingly
avoid legitimate work opportunity and therefore abuse the seven hundred dollar ($700) average wage
guarantee, the driver shall have an amount equal to the amount of the wages such work would have
generated credited to such driver for purposes of determining the seven hundred dollar ($700)
average wage guarantee.

Nothing in this subsection applies to or shall be construed to limit claims by any driver on the
seniority roster at a gaining domicile alleging that the driver’s work opportunity was adversely
affected following the implementation of the Intermodal Change of Operations because of the
Employer’s failure to provide adequate work opportunities for existing and redomiciled drivers.
However, after the point that the Employer has provided adequate work opportunities for protected
drivers (existing and redomiciled), the wage protection for active drivers in the bottom

54

 

twenty-five percent (25%) of the seniority roster shall be limited to the seven hundred dollar
($700) guarantee.

As soon as a factual determination has been made that a driver in the bottom twenty-five percent
(25%) of the seniority roster is entitled to the seven hundred dollar ($700) average wage
guarantee, the driver’s claim shall be paid. All other types of claims that the driver’s work
opportunities have been adversely affected shall be held in abeyance until determined through the
intermodal grievance procedure.

Section 4. National Intermodal Committee

The parties shall establish a National Intermodal Committee composed of four (4) Union
representatives appointed by the Union Chairman of the National Grievance Committee and four (4)
Employer representatives appointed by the Employer Chairman of the National Grievance Committee. In
the event a proposed intermodal operation includes the relocation of work subject to the provisions
of Article 8, Section 6, the National Intermodal Committee shall then be considered as a combined
National Intermodal/Multi-Region Change of Operations Committee with the authority to resolve all
seniority issues in accordance with the authority granted by Article 8, Section 6(g).

The National Intermodal Committee shall establish rules of procedure to govern the manner in which
proposed intermodal operations are to be heard, procedures for resolving intermodal issues and
procedures for establishing pre-hearing guidelines.

Any grievance concerning the application or interpretation of Article 29, Section 2(c) or
concerning any issues that may arise from an approved intermodal operation provided for in this
Section 3, shall be first referred to the National Intermodal Committee. If the National Intermodal
Committee is unable to reach a decision on an interpretation or grievance, the issue will be
referred to the National Grievance Committee.

Section 5.

The Employer is prohibited from using rail as a subterfuge to transport freight by truck, driven by
those outside of the bargaining unit. To this end, all loads tendered to the railroad shall be
tendered by the Employer using bargaining unit employees at the point where the load is to be
placed on the rail. Once tendered to the railroad, a load may not be relocated to non-bargaining
unit personnel for transport by truck except in bona fide emergencies beyond the control of the
Employer and/or the railroad. Such emergencies shall not include the Employer tendering loads to
the railroad when the Employer knows or should know the load will not meet the scheduled departure
time of the train and the railroad then transports the load by truck. The parties agree that this
Subsection shall not apply to the Employer’s existing rail operations, that have otherwise been
permitted prior to February 8, 1998, by written agreement of the parties, or through a grievance
decision. The parties further agree that nothing in this Subsection shall be construed to limit or
otherwise affect the railroads movements of loads within the metropolitan area between railroads or
between tracks. This provision shall apply to all rail activities permitted under this Article.

Section 6.

1. Notwithstanding anything in this Agreement to the contrary, the Employer shall be permitted to
utilize companies for over-the-road purchased transportation substitute service. The parties shall
designate at least one (1) Preferred Company for over-the-road purchased transportation substitute
service under this Section. Until December 31, 2009, the maximum amount of over-the-road purchased
transportation shall be limited to 4% o f the Employer’s total miles as reported on line 301 of
Schedule 300 of the BTS Annual Report during any calendar year. During Calendar Year 2010, the
maximum amount of over-the-road purchased transportation shall be increased from 4% to 6.5% of the
Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during any
calendar year. During Calendar Year 2011, the maximum amount of over-the-road purchased
transportation shall be increased from 6.5% to 7% of the Employer’s total miles as reported on line
301 of Schedule 300 of the BTS Annual Report during any calendar year. During Calendar year 2012,
the maximum amount of over-the-road purchased transportation shall be increased from 7% to 9% of
the Employer’s total miles as reported on line 301 of Schedule 300 of the BTS Annual Report during
any calendar year. In the event the parties fail to designate at least one (1) Preferred Company
for over-the-road purchased transportation substitute service, the maximum amount of rail miles
provided for in Section 3(b)(4) of the Article shall be returned to 26% for the remainder of this
Agreement. It is agreed that any Preferred Company utilized under this Section shall be permitted
to drop and pick up trailers at the Employer’s terminal locations, but shall be required to do so
in areas of the terminal specifically designated for such exchange.

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2. For purposes of the Employer’s existing rail origin points as described in Article 20, Section
3, the use of a Preferred Company under this Section over established relay and/or through
operations shall include protection for all bid drivers during each dispatch day and all extra
board drivers during each dispatch week at the originating domiciles. For purposes of determining
the weekly protection for extra board drivers, the affected driver’s average weekly earnings during
the previous four (4) week period in which the driver had normal earnings shall be considered the
weekly protection when violations occur. In the event that the Employer uses a Preferred Company as
substitute service, the Article 29, Section 3 job protections for current road drivers shall apply.

3. All disputes arising under this Article 29, Section 6 shall be referred for resolution to the
National Review Committee.

ARTICLE 30.

JURISDICTIONAL DISPUTES

In the event that any dispute should arise between any Local Unions, parties to this Agreement or
Supplements thereto, or between any Local Union, party to this Agreement or Supplements thereto and
any other Union, relating to jurisdiction over employees or operations covered by such Agreements,
the Employer and the Local Unions agree to accept and comply with the decision or settlement of the
Unions or Union bodies which have the authority to determine such dispute, and such disputes shall
not be submitted to arbitration under this Agreement or Supplements thereto or to legal or
administrative agency proceedings. Pending such determination, the Employer shall not be precluded
from seeking appropriate legal or administrative relief against work stoppages or picketing in
furtherance of such dispute.

ARTICLE 31.

MULTI-EMPLOYER, MULTI-UNION UNIT

The parties agree to become a part of the multiemployer, multi-union bargaining unit established by
this National Master Freight Agreement, and to be bound by the interpretations and enforcement of
this National Master Freight Agreement and Supplements thereto.

ARTICLE 32.

SUBCONTRACTING

Section 1. Work Preservation

For the purpose of preserving work and job opportunities for the employees covered by this
Agreement, the signatory Employer agrees that no operation, work or services of the kind, nature or
type covered by, or presently performed by, or hereafter assigned to, the collective bargaining
unit by the signatory Employer will be subcontracted, transferred, leased, diverted, assigned or
conveyed in full or in part (hereinafter referred to as “divert” or “subcontract”), by the Employer
to any other plant, business, person, or non-unit employees, or to any other mode of operation,
unless specifically provided and permitted in this Agreement.

In addition, the signatory Employer agrees that it will not, as hereinafter set forth, subcontract
or divert the work presently performed by, or hereafter assigned to, its employees to non-employee
owner-operators or other business entities owned and/or controlled by the signatory Employer, or
its parent, subsidiaries or affiliates.

Section 2. Diversion of Work — Parent or
Subsidiary Companies

The parties agree that for purposes of this Article it shall be presumed that a diversion of work
in violation of this Agreement occurs when work presently and regularly performed by, or hereafter
assigned to, employees of the signatory Employer has been lost and the lost work is being performed
in the same manner (including transportation by owner-operators and independent contractors) by an
entity owned and/or controlled by the signatory Employer, its parent, or a subsidiary, including
logistics companies, within one hundred twenty (120) days of the loss of the

56

 

work. The burden of overcoming such presumption in the grievance procedure shall be upon the
Employer.

Section 3. Subcontracting

The Employer may subcontract work when all of his/her regular employees are working, except that in
no event shall road work presently performed or runs established during the life of this Agreement
be farmed out. No dock work shall be farmed out except for existing situations established by
agreed-to past practices. Overflow loads may be delivered pursuant to the provisions of Article 29.
Loads may also be delivered by other agreed-to methods or as presently agreed to. Other persons
performing subcontracted work which is permitted herein shall receive no less than the equivalent
of the economic terms and conditions of this Agreement and the applicable Supplement.

The signatory Employer shall maintain records identifying persons performing subcontracted work
permitted by this Agreement. Said records shall be made available for inspection by the Local
Union(s) in the locality affected by such subcontract work.

The normal, orderly interlining of freight for peddle on occasional basis, where there are parallel
rights, and when not for the purpose of evading this Agreement, may be continued as has been
permitted by past practice provided it is not being done to defeat the provisions of this
Agreement.

Section 4. Expansion of Operations

     (a) Adjoining Over-the-road and Local Cartage

It is understood and agreed that the provisions of the National Master Freight Agreement shall be
applied, without evidence of union representation of the employees involved, to all subsequent
additions to, and extensions of, current over-the-road or local cartage operations which adjoin and
are controlled and utilized as part of such current operations of the signatory Employer, or any
other entity, not operated wholly independently of the signatory Employer within the meaning of
Article 3, Section 1 (a). In this regard, the parties agree that newly established terminals and
consolidations of terminals which are controlled and utilized as part of a current operation will
be covered by the National Master Freight Agreement and applicable Over-the-Road and Local Cartage
Supplemental Agreements.

     (b) New Pickup and Delivery Adjoining Current Operations

It shall not, however, be a violation of this Article if, during the term of this Agreement, an
Employer commences pick-up and delivery operations which adjoin and are controlled and utilized as
part of such current operations with other than its own employees when there is insufficient
business to economically justify the establishment of its own employer-operated pick-up and
delivery service. However, the above exception shall thereafter terminate when sufficient economic
justification develops so as to warrant the establishment and maintenance of the terminal operation
by such Employer, in which event, the Employer shall institute a pick-up and delivery operation or
continue such operations with companies which maintain wage standards established by this Agreement
in the area where the work is conducted. This exception shall not apply in any circumstance where
an Employer is presently engaged in pick-up and delivery operations either through his/her own
terminal or through companies which maintain such wage standards.

     (c) Non-Adjoining Pick-up and Delivery Operations

The parties further agree that with respect to all subsequently established over-the-road and local
cartage operations and terminals of the signatory Employer which do not adjoin, but are utilized
and controlled as part of, current over-the-road and local cartage operations, the provisions of
Article 2, Section 3(a) shall govern so that when a majority of the eligible employees of the
signatory Employer performing work at that location execute a card authorizing a signatory Local
Union to represent them as their collective bargaining agent at the terminal location, then, such
employees shall automatically be covered by this Agreement and the applicable Supplemental
Agreements.

(d) Operations permitted by Article 29, and not in violation of any other provisions of this
Agreement, are not to be considered as extensions of current operations within the meaning of
Section 4.

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Section 5.

For the purpose of preserving work and job opportunities, the National Grievance Committee may
define the circumstances and adopt procedures by which an Employer and a Local Union, parties to
this Agreement, may in compliance therewith enter into a Special Circumstance Agreement which does
not meet the standards provided herein.

Section 6.

Grievances arising under this Article shall be processed on an expedited basis pursuant to the
procedures contained in Article 8, Section 1(a).

Section 7. National Subcontracting Review Committee

The parties shall establish a National Subcontracting Review Committee composed of two (2) Union
representatives appointed by the Union Chairman of the National Grievance Committee and two (2)
Employer representatives appointed by the Employer Chairman of the National Grievance Committee.
The National Subcontracting Review Committee shall have the authority to review and adjudicate
alleged violations of the work preservation diversion of work and subcontracting provisions of
Article 32, including practices by an Employer that are an alleged subterfuge to avoid the
requirement of Article 32.

All other grievances arising under this Article shall be processed on an expedited basis pursuant
to the procedures contained in Article 8, Section 1(a).

ARTICLE 33.

WAGES, CASUAL RATES, PREMIUMS AND

COSTOFLIVING (COLA)

1. General Wage Increases: Full-Time

	 	 	 	 	 
	Effective Dates	 	Hourly Mileage	 	Mileage
	April 1, 2008
	 	$0.50 per hour
	 	1.250 cents per mile
	April 1, 2009
	 	$0.40 per hour
	 	1.000 cents per mile
	April 1, 2010
	 	$0.45 per hour
	 	1.125 cents per mile
	April 1, 2011
	 	$0.40 per hour
	 	1.000 cents per mile
	April 1, 2012
	 	$0.45 per hour
	 	1.125 cents per mile
	 
	 	 
	 	 
	TOTAL
	 	$2.20 per hour
	 	5.500 cents per mile
	 
	 	 
	 	 

Wage Earners and Clerical Workers”, CPIW (Revised Series Using 198284 Expenditure Patterns), All
Items (198284=100), published by the Bureau of Labor Statistics, U.S. Department of Labor and
referred to herein as the “Index”.

Effective April 1, 2004, and every April 1 thereafter during the life of the agreement, a
cost-of-living allowance will be calculated on the basis of the difference between the Index for
January, 2003 (published February 2003) and the Index for January, 2004 (published February 2004)
with a similar calculation for every year thereafter, as follows:

For every 0.2 point increase in the Index over and above the base (prior year’s) Index plus 3.0%,
there will be a 1 cent increase in the hourly wage rates payable on April 1, 2004, and every April
1 thereafter. These increases shall only be payable if they equal a minimum of five cents ($.05) in
a year.

All cost-of-living allowances paid under this agreement will become and remain a fixed part of the
base wage rate for all job classifications. A decline in the Index shall not result in the
reduction of classification base wage rates.

Mileage paid employees will receive cost-of-living allowances on the basis of .25 mills per mile
for each 1 cent increase in hourly wages.

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In the event the appropriate Index figure is not issued before the effective date of the
cost-of-living adjustment, the cost-of-living adjustment that is required will be made at the
beginning of the first (1st) pay period after the receipt of the Index.

In the event that the Index shall be revised or discontinued and in the event the Bureau of Labor
Statistics, U.S. Department of Labor, does not issue information which would enable the Employer
and the Union to know what the Index would have been had it not been revised or discontinued, then
the Employer and the Union will meet, negotiate, and agree upon an appropriate substitute for the
Index. Upon the failure of the parties to agree within sixty (60) days, thereafter, the issue of an
appropriate substitute shall be submitted to an arbitrator for determination. The arbitrator’s
decision shall be final and binding.

ARTICLE 34.

GARNISHMENTS

In the event of notice to an Employer of a garnishment or impending garnishment, the Employer may
take disciplinary action if the employee fails to satisfy such garnishment within a seventy-two
(72) hour period (limited to working days) after notice to the employee. However, the Employer may
not discharge any employee by reason of the fact that his earnings have been subject to garnishment
for any one (1) indebtedness. If the Employer is notified of three (3) garnishments irrespective of
whether satisfied by the employee within the seventy-two (72) hour period, the employee may be
subject to discipline, including discharge in extreme cases. However, if the Employer has an
established practice of discipline or discharge with a fewer number of garnishments or impending
garnishments, if the employee fails to adjust the matter within the seventy-two (72) hour period,
such past practice shall be applicable in those cases.

ARTICLE 35.

Section 1. Employee’s Bail

Employees will be bailed out of jail if accused of any offense in connection with the faithful
discharge of their duties, and any employee forced to spend time in jail or in courts shall be
compensated at his/her regular rate of pay. In addition, he/she shall be entitled to reimbursement
for his/her meals, transportation, court costs, etc.; provided, however, that faithful discharge of
duties shall in no case include compliance with any order involving commission of a felony. In case
an employee shall be subpoenaed as a company witness, he/she shall be reimbursed for all time lost
and expenses incurred.

Section 2. Suspension or Revocation of License

In the event an employee receives a traffic citation for a moving violation which would contribute
to a suspension or revocation or suffers a suspension or revocation of his/her right to drive the
company’s equipment for any reason, he/she must promptly notify his/her Employer in writing.
Failure to comply will subject the employee to disciplinary action up to and including discharge.
If such suspension or revocation comes as a result of his/her complying with the Employer’s
instruction, which results in a succession of size and weight penalties or because he/she complied
with his/her Employer’s instruction to drive company equipment which is in violation of DOT
regulations relating to equipment or because the company equipment did not have either a
speedometer or a tachometer in proper working order and if the employee has notified the Employer
of the citation for such violation as above mentioned, the Employer shall provide employment to
such employee at not less than his/her regular earnings at the time of such suspension for the
entire period thereof.

When an employee in any job classification requiring driving has his/her operating privilege or
license suspended or revoked for reasons other than those for which the employee can be discharged
by the Employer, a leave of absence without loss of seniority, not to exceed three (3) years, shall
be granted for such time as the employee’s operating license has been suspended or revoked. The
employee will be given work opportunities ahead of casuals to perform non-CDL required job
functions.

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Section 3. Drug Testing

PREAMBLE

While abuse of alcohol and drugs among our members/employees is the exception rather than the rule,
the Teamsters National Freight Industry Negotiating Committee and the Employers signatory to this
Agreement share the concern expressed by many over the growth of substance abuse in American
society.

The parties have agreed that the Drug and Alcohol Abuse Program will be modified in the event that
further federal legislation or Department of Transportation regulations provide for revised testing
methodologies or requirements. The parties have incorporated the appropriate changes required by
the applicable DOT drug testing rules under 49 CFR Parts 40 and 382, and agree that if new
federally mandated changes are brought about, they too will become part of this Agreement. The drug
testing procedure, agreed to by labor and management, incorporates state-of-the-art employee
protections during specimen collection and laboratory testing to protect the innocent and ensures
the Employer complies with all applicable DOT drug and alcohol testing regulations. In order to
eliminate the safety risks which result from alcohol or drugs, the parties have agreed to the
following procedures:

NMFA UNIFORM TESTING PROCEDURE

     A. Probable Suspicion Testing

In cases in which an employee is acting in an abnormal manner and at least one (1) supervisor, two
(2) if available, have probable suspicion to believe that the employee is under the influence of
controlled substances and/or alcohol, the Employer may require the employee (in the presence of a
union shop steward, if possible) to undergo a urine specimen collection and a breath alcohol
analysis as provided in Section 4B. The supervisor(s) must have received training in the signs of
drug intoxication in a prescribed training program which is endorsed by the Employer. Probable
suspicion means suspicion based on specific personal observations that the Employer
representative(s) can describe concerning the appearance, behavior, speech or breath odor of the
employee. The observations may include the indication of chronic and withdrawal effects of
controlled substances. The supervisor(s) must make a written statement of these observations within
twenty-four (24) hours. A copy must be provided to the shop steward or other union official after
the employee is discharged. Suspicion is not probable and thus not a basis for testing if it is
based solely on third (3rd) party observation and reports. The employee shall not be required to
waive any claim or cause of action under the law. For all purposes herein, the parties agree that
the terms “probable suspicion” and “reasonable cause” shall be synonymous.

The following collection procedures shall apply to all types of testing:

A refusal to provide a urine specimen or undertake a breath analysis will constitute a presumption
of intoxication and the employee will be subject to discharge without receipt of a prior warning
letter. If the employee is unable to produce 45mL of urine, he/she shall be offered up to forty
ounces of fluid to drink and shall remain at the collection site under observation until able to
produce a 45mL specimen, for a period of up to three (3) hours from the first unsuccessful attempt
to provide the urine specimen. If the employee is still unable to produce a 45mL specimen, the
Employer shall direct the employee to undergo an evaluation which shall occur within five business
days, by a licensed physician, acceptable to the MRO who has the expertise in the medical issues
concerning the employee’s inability to provide an adequate amount of urine. If the physician and
MRO conclude that there is no medical condition that would preclude the employee from providing an
adequate amount of urine, the MRO will issue a ruling that the employee refused the test. If an
employee is unable to provide sufficient breath sample for analysis, the procedures outlined in the
DOT regulations shall be followed for all employees. Such employees shall be evaluated by a
licensed physician, acceptable to the Employer, who has the expertise in the medical issues
concerning the employee’s failure to provide an adequate amount of breath. Absent a medical
condition, as determined by the licensed physician, said employee will be regarded as having
refused to take the test. The Employer will adhere to DOT regulations for employees who are unable
to provide a urine or breath specimen due to a permanent or long-term medical condition.
Contractual time limits for disciplinary action, as set forth in the appropriate Supplemental
Agreement, shall begin on the day on which specimens are taken. In the event the Employer alleges
only that the employee is intoxicated on alcohol and not drugs, previously agreed-to procedures
under the appropriate Supplemental Agreement for determining alcohol intoxication shall apply.

60

 

In the event the Employer is unable to determine whether the abnormal behavior is due to drugs or
alcohol, the drug testing procedure contained herein and the breath alcohol testing procedure
contained in Section 4B shall be used. If the laboratory results are not known prior to the
expiration of the contractual time period for disciplinary action, the cause for disciplinary
action shall specify that the basis for such disciplinary action is for “alcohol and/or drug
intoxication”.

     B. DOT Random Testing

It is agreed by the parties that random urine drug testing will be implemented only in accordance
with the DOT rules under 49 CFR Part 382, Subpart C.

The method of selection for random urine drug testing will be neutral so that all employees subject
to testing will have an equal chance to be randomly selected.

The term “employees subject to testing” under this agreement is meant to include any employee
required to have a Commercial Drivers License (CDL) under the Department of Transportation
regulations.

Employees out on long term injury or disability for any reason shall not be tested.

The provisions of Article 35, Section 3 F 3 (Split Sample Procedures), and Article 35, Section 3 J
1 (One-Time Rehabilitation), shall apply to random urine drug testing.

     C. Non-suspicion-based post-accident testing

Non-suspicion-based post-accident testing is defined as urine drug testing as a result of an
accident which meets the definition of an accident as outlined in the Federal Motor Carrier Safety
Regulations. Urine drug testing will be required after accidents meeting the following conditions
and drivers are required to remain readily available for testing for thirty-two (32) hours
following the accident or until tested.

Employees subject to non suspicion-based post accident drug testing shall be limited to those
employees subject to DOT drug testing, who are involved in an accident where there is:

     (i) a fatality, or;

     (ii) a citation under State or local law is issued to the driver for a moving vehicle
violation arising from the accident in which

     (a) bodily injury to a person who, as a result of the injury, immediately receives medical
treatment away from the scene of the accident, or

     (b) one or more motor vehicles incurring disabling damage as a result of the accident,
requires the vehicle(s) to be transported away from the scene by a tow truck or other vehicle.

The driver has the responsibility to make himself/herself available for urine drug testing within
the thirty-two (32) hour period in accordance with the procedures outlined in this Subsection. The
driver is responsible to notify the Employer upon receipt of a citation and to note receipt thereof
on the accident report. Failure to so notify the Employer shall subject the driver to disciplinary
action.

If a driver receives a citation for a moving violation more than thirty-two (32) hours after a
reportable accident, he/she shall not be required to submit to post accident urine drug testing.
The Employer shall make available a urine drug testing kit and an appropriate collection site for
the driver to provide specimens. The provisions of Article 35, Section 3 F 3 (Split Sample
Procedures), and Article 35, Section 3 J 1 (One-Time Rehabilitation), shall apply to
non-suspicion-based post-accident urine drug testing.

     D. Chain of Custody Procedures

Any specimens collected for drug testing shall follow the DHHS/DOT (Department of Health and Human
Services/ Department of Transportation) specimen collection procedures. At the time specimens are
collected for any drug testing, the employee shall be given a copy of the specimen collection
procedures. In the presence of the employee,

61

 

the specimens are to be sealed and labeled. As per DOT regulations, it is the employee’s
responsibility to initial the seals on the specimen bottles, additionally ensuring that the
specimens tested by the laboratory are those of the employee.

The required procedure follows: When urine specimens are to be provided, at least 45 mL of specimen
shall be collected. At least 30 mL shall be placed in one (1) self-sealing, screw-capped or
snap-capped container. A urine specimen of at least l5mL shall be placed in a second (2nd) such
container. They shall be sealed and labeled by the collector, and initialed by the employee without
the containers leaving the employee’s presence. The employee has the responsibility to identify
each container and initial same. Following collection, the specimens shall be placed in the
transportation container together with the appropriate copies of the chain of custody form. The
transportation container shall then be sealed in the employee’s presence. The container shall be
sent to the designated testing laboratory at the earliest possible time by the fastest available
means.

In this urine collection procedure, the donor shall urinate into a collection container capable of
holding at least 55 mL, which shall remain in full view of the employee until transferred to
tamper-resistant urine bottles, and sealed and labeled, and the employee has initialed the bottles.

It is recognized that the Specimen Collector is required to check for sufficiency of specimen,
acceptable temperature range, and signs of tampering, provided that the employee’s right to privacy
is guaranteed and in no circumstances may observation take place while the employee is producing
the urine specimens, unless required by DOT regulations. If it is established that the employee’s
specimen is outside of the acceptable temperature range or has been intentionally tampered with or
substituted by the employee, the employee will be required to immediately submit an additional
specimen under direct observation. Also, if it is established that the employee’s specimen has been
intentionally tampered with or substituted by the employee, the employee is subject to discipline
as if the specimen tested positive. In order to deter adulteration of the urine specimen during the
collection process, physiologic determinations for creatinine, specific gravity, pH, and any
substances that may be used to adulterate the specimen shall be performed by the laboratory. If the
laboratory suspects the presence of an interfering substance/adulterant that could make a test
result invalid, but the initial laboratory is unable to identify it, the specimen must be sent to
another HHS certified laboratory that has the capability of doing so.

Any findings by the laboratory that indicate that a specimen is adulterated as a result of the fact
that it contains a substance that is not expected to be present in human urine; a substance that is
expected to be present is identified at a concentration so high that it is not consistent with
human urine; or has physical characteristics which are outside the normal expected range for human
urine shall be immediately reported to the Company’s Medical Review Officer (MRO). The parties
recognize that the key to chain of custody integrity is the immediate sealing and labeling of the
specimen bottles in the presence of the tested employee. If each container is received undamaged at
the laboratory properly sealed, labeled and initialed, consistent with DOT regulations as certified
by the laboratory, the Employer may take disciplinary action based upon the MRO’s ruling.

     E. Urine Collection Kits and Forms

The contents of the urine collection kit shall be as follows:

     1. The kit shall include a specimen collection container capable of holding at least
fifty-five (55) mL of urine and contains a temperature reading device capable of registering the
urine temperature specified in the DOT regulations.

     2. Two (2) plastic bottles that are capable of holding at least thirty-five (35) mL, have
screw-on or snap-on caps, and markings clearly indicating the appropriate levels for the primary
(30 mL) and split (15 mL) specimens.

     3. A uniquely numbered (i.e. Specimen Identification Number) DOT approved chain of custody
form with similarly numbered Bottle Custody Seals, and a transportation kit seal (e.g., Box Seal)
shall be utilized during the urine collection process and completed by the collection site person.
In the case of probable suspicion or other contractually required testing, a Non-DOT chain of
custody form will be used for the testing of Non-DOT employees. The appropriate laboratory copies
are to be placed into the transportation container with the urine specimens. The exterior of the
transportation kit shall then be secured, e.g., by placing the tamper-proof Box Seal over the
outlined area.

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     4. Shrink-wrapped or similarly protected kits shall be used in all instances.

     F. Laboratory Requirements

     1. Urine Testing

In testing urine samples, the testing laboratory shall test specifically for those drugs and
classes of drugs and adulterants employing the test methodologies and cutoff levels covered in the
DOT Regulations 49 CFR, Part 40.

     2. Specimen Retention

All specimens deemed positive, adulterated, substituted, or invalid by the laboratory, according to
the prescribed guidelines, must be retained at the laboratory for a period of one (1) year.

     3. Split Sample Procedure

The split sample procedure is required for all employees selected for urine drug testing. When any
test kit is received by the laboratory, the “primary” sealed urine specimen bottle shall be
immediately removed for testing, and the remaining “split” sealed specimen bottle shall be placed
in secured storage. Such specimen shall be placed in refrigerated storage if it is to be tested
outside of the DOT mandated period of time.

The employee will be given a shrink-wrapped or similarly protected urine collection kit. After
receiving the specimen, the collector shall pour at least 30 mL of urine into the specimen bottle
and at least 15 mL into the second split specimen bottle. Both bottles shall be sealed in the
employee’s presence, initialed by the employee, then forwarded to an accredited laboratory for
testing. If the employee is advised by the MRO that the first (1st) urine sample tested positive,
adulterated, or substituted, in a random, return to duty, follow-up, probable suspicion or post
accident urine drug test, the employee may, within seventy-two (72) hours of receipt of the actual
notice, request from the MRO that the second (2nd) urine specimen be forwarded by the first
laboratory to another independent and unrelated accredited laboratory of the parties’ choice for
GC/MS confirmatory testing for the presence of the drug, or other confirmatory testing for
adulterants, or to confirm that the specimen has been substituted as defined in 49 CFR Part 40. If
the employee chooses to have the second (2nd) sample analyzed, he/she shall at that time execute a
special check-off authorization form to ensure payment by the employee. Split specimen testing will
conform to the regulations as defined in 49 CFR Part 40. If the employee chooses the optional split
sample procedure, and so notifies his Employer, disciplinary action can only take place after the
MRO reports a positive, adulterated, or substituted result on the primary test and the MRO reports
that the testing of the split specimen confirmed the result. However, the employee may be taken out
of service once the MRO reports a positive, adulterated, or substituted result based on the testing
of the primary specimen while the testing of the split specimen is being performed. If the second
(2nd) test confirms the findings of the first laboratory and the employee wishes to use the
rehabilitation options of this Section, the employee shall reimburse the Employer for the cost of
the second (2nd) sample’s analysis before entering the rehabilitation program. If the second (2nd)
laboratory report is negative, for drugs, adulterants, or substitution, the employee will be
reimbursed for the cost of the second (2nd) test and for all lost time. It is also understood that
if an employee opts for the split sample procedure, contractual time limits on disciplinary action
in the Supplements are waived.

     4. Laboratory Accreditation

All laboratories used to perform urine drug testing pursuant to this Agreement must be certified by
Health and Human Services under the National Laboratory Certification Program (NLCP).

     G. Laboratory Testing Methodology

     1. Urine Testing

The initial testing shall be by immunoassay which meets the requirements of the Food and Drug
Administration for commercial distribution. The initial cutoff levels used when screening urine
specimens to determine whether they are negative or positive for various classes of drugs shall be
those contained in the Scientific and Technical Guidelines for Federal Drug Testing Programs
(subject to revision in accordance with subsequent amendments to

63

 

the HHS Guidelines).

All specimens identified as positive on the initial test shall be confirmed using gas
chromatography/mass spectrometry (GC/MS) techniques. Quantitative GC/MS confirmatory procedures for
drugs and confirmatory procedures for specimens that are initially identified as being adulterated
or substituted shall comply with the testing protocols mandated by the Scientific and Technical
Guidelines for Federal Drug Testing Programs (subject to revision in accordance with subsequent
amendments to the HHS Guidelines).

Validity testing shall be conducted on all specimens, pursuant to HHS requirements, to determine
whether they have been adulterated or substituted. All specimens which test negative on either the
initial test or the GC/MS confirmation test shall be reported only as negative, unless they are
confirmed to be adulterated, substituted, or invalid. Only specimens which test positive on both
the initial test and the GC/MS confirmation test shall be reported as positive. Specimens that are
confirmed to be adulterated or substituted shall be reported as such.

When a grievance is filed as a result of a drug test that is ruled positive, adulterated, or
substituted, the Employer shall provide a copy of the MRO ruling to the Union.

Where Schedule I and II drugs are detected, the laboratory is to report a positive test based on a
forensically acceptable positive quantum of proof. All positive test results must be reviewed by
the certifying scientist and certified as accurate.

     2. Prescription and Non-prescription Medications

If an employee is taking a prescription or non-prescription medication in the appropriate described
manner he/she will not be disciplined. Medications prescribed for another individual, not the
employee, shall be considered to be illegally used and subject the employee to discipline.

     3. Medical Review Officer (MRO)

The Medical Review Officer (MRO) shall be a licensed physician with the knowledge of substance
abuse disorders, issues relating to adulterated and substituted specimens, possible medical causes
of specimens having an invalid result, and applicable DOT agency regulations. In addition, the MRO
shall keep current on applicable DOT agency regulations and comply with the DOT qualification
training and continuing education requirements. The MRO shall review all urine drug test results
from the laboratory and shall examine alternate medical explanations for tests reported as
positive, adulterated, or substituted, as well as those results reported as invalid. Prior to the
final decision to verify a urine drug test result, all employees shall have the opportunity to
discuss the results with the MRO.

If the employee declines to speak with the MRO, or the employee fails to contact the MRO within 72
hours of being notified to do so by the Employer, or if the MRO is unable to contact the employee
within ten (10) days of the receipt of the drug test result being reported to him by the
laboratory, then the MRO may report the result to the Employer.

     4. Substance Abuse Professional (SAP)

The Substance Abuse Professional (SAP), as provided in the regulations, means a licensed physician
(Medical Doctor or Doctor of Osteopathy), or a licensed or certified psychologist, social worker,
or employee assistance professional, or a drug and alcohol counselor (certified by the National
Association of Alcoholism and Drug Abuse Counselors Certification Commission or by the
International Certification Reciprocity Consortium/Alcohol & Other Drug Abuse). All must have
knowledge of and clinical experience in the diagnosis and treatment of alcohol and controlled
substance-related disorders and be knowledgeable of the SAP function as it relates to Employer
interest in safety-sensitive functions, and applicable DOT agency regulations. In addition, the SAP
shall comply with the DOT qualification training and continuing education requirements.

     H. Leave of Absence Prior to Testing

     1. An employee shall be permitted to take leave of absence in accordance with the FMLA or
applicable State leave laws for the purpose of undergoing treatment pursuant to an approved program
of alcoholism or drug use. The leave of absence must be requested prior to the commission of any
act subject to disciplinary action.

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     2. Employees requesting to return to work from a voluntary leave of absence for drug use or
alcoholism shall be required to submit to testing as provided for in Part J of this Section.
Failure to do so will subject the employee to discipline including discharge without the receipt of
a prior warning letter.

The provisions of this Section shall not apply to probationary employees.

	 	I.	 	Disciplinary Action Based on Positive, Adulterated, or Substituted Test Results

Consistent with past practice under this Agreement, and notwithstanding any other language in any
Supplement, the Employer may take disciplinary action based on the test results as follows:

     1. If the MRO reports that a urine drug test is positive, adulterated, or substituted, the
employee shall be subject to discharge except as provided in Part J.

     2. The following actions shall apply in probable suspicion testing based on DOT and
contractual mandates.

     a. If the urine drug test is positive, adulterated, or substituted, according to the
procedures described in Part G, the employee shall be subject to discharge.

     b. If the breath alcohol test results show a blood alcohol concentration equal to or above the
level previously determined by the appropriate Supplemental Agreement for alcohol intoxication, the
employee shall be subject to discharge pursuant to the Supplemental Agreement.

     c. If the breath alcohol test is negative and the urine drug test is negative, the employee
shall be immediately returned to work and made whole for all lost earnings.

	 	J.	 	Return to Employment After a Positive Urine Drug Test

     1. Any employee with a positive, adulterated, or substituted urine drug test result (other
than under probable suspicion testing), thereby subjecting the employee to discipline, shall be
granted reinstatement on a one (1) time lifetime basis if the employee successfully completes a
course of education and/or treatment program as recommended by the Substance Abuse Professional
(SAP). The SAP will recommend a course of education and/or treatment with which the employee must
demonstrate successful compliance prior to returning to DOT safety-sensitive duty. The SAP will
refer him/her to a treatment program which has been approved by the applicable Health and Welfare
Fund, where such is the practice. Any cost of evaluation, education and/or treatment over and above
that paid for by the applicable Health and Welfare Fund, must be borne by the employee.

     2. Employees electing the onetime lifetime evaluation and/or rehabilitation must notify the
Company within ten (10) days of being notified by the Company of a positive, adulterated, or
substituted urine drug test. The evaluation process and education and/or treatment program must
take a minimum of ten (10) days. The employee must begin the evaluation process and education
and/or treatment program within fifteen (15) days after notifying the Company. The employee must
request reinstatement promptly after successful completion of the education and/or treatment
program. After the minimum ten (10) day period and re-evaluation by the SAP, the employee may
request reinstatement, but must first provide a negative return to duty urine drug test, to be
conducted by a clinic and laboratory of the Employer’s choice, before the employee can be
reinstated. Any employee choosing to protest the discharge must file a protest under the applicable
Supplement. After the discharge is sustained, the employee must notify the Company within ten (10)
days of the date of the decision, of the desire to enter the evaluation process and education
and/or treatment program.

     3. While undergoing treatment, the employee shall not receive any of the benefits provided by
this Agreement or Supplements thereto except the continued accrual of seniority.

     4. Before reinstatement after the minimum ten (10) day period, the employee must be
re-evaluated by the Substance Abuse Professional to determine successful compliance with any
recommended education and/or treatment program. The employee must then submit to the Employer’s
return-to-duty urine drug test (and alcohol

65

 

test if so prescribed by the SAP) with a negative result. The employee will be subject to at least
six (6) unannounced follow-up urine drug tests in the first year, as determined by the SAP. If, at
any time, the employee tests positive, provides an adulterated or substituted specimen, or refuses
to submit to a test, the employee shall be subject to discharge.

     (a) Return-to-duty drug test is a urine drug test which an employee must complete with a
negative result, after having been reevaluated by a SAP to determine successful compliance with
recommended education and/or treatment.

     (b) Follow-up drug testing shall mean those unannounced urine drug tests required (minimum of
six (6) in a twelve (12) month period) when an employee tests positive, provides an adulterated or
substituted specimen, or refused to be tested and has been evaluated by the SAP, completed
education and/or treatment, been re-evaluated by SAP and returned to work. The requirements of
follow-up testing follow the employee through breaks in service (i.e. layoff, on-the-job injury,
personal illness/injury, leave of absence, etc.). In addition, the requirements of follow-up
testing follow the employee to subsequent employers. The SAP has the authority to order any number
of follow-up urine drug and/or alcohol tests and to extend the twelve (12) month period up to sixty
(60) months.

	 	K.	 	Special Grievance Procedure

     1. The parties shall together create a Special Region Joint Area Committee consisting of an
equal number of employer and union representatives to hear drug-related discipline disputes. All
such disputes arising after the establishment of the Special Region Joint Area Committee shall be
taken up between the Employer and Local Union involved. Failing adjustment by these parties, the
dispute shall be heard by the Special Region Joint Area Committee within ninety (90) days of the
Committee’s receipt of the dispute. Where the Special Region Joint Area Committee, by majority
vote, settles a dispute, such decision shall be final and binding on both parties with no further
appeal. Where the Special Region Joint Area Committee is unable to agree on or come to a decision
on a dispute, the dispute will be referred to the National Grievance Committee.

     2. The procedures set forth herein may be invoked only by the authorized Union Representative
or the Employer.

	 	L.	 	Paid-for Time

     1. Training

Employees undergoing substance abuse training as required by the DOT will be paid for such time and
the training will be scheduled in connection with the employee’s normal work shift, where possible.

     2. Testing

Employees subject to testing and selected by the random selection process for urine drug testing
shall be compensated at the regular straight time hourly rate of pay in the following manner
provided that the test is negative:

     a. Random Drug Tests

     (1) for all time at the collection site.

     (2) (a) for travel time one way if the collection site is reasonably en route between the
employee’s home and the terminal, and the employee is going to or from work; or

     (b) for travel time both ways between the terminal and the collection site, only if the
collection site is not reasonably en route between the employee’s home and the terminal.

     (3) When an employee is on the clock and a random drug test is taken any time during the
employee’s shift, and the shift ends after eight (8) hours, the employee is paid time and one-half
for all time past the eight (8) hours.

     (4) The Employer will not require the city employee to go for urine drug testing before the
city employee’s shift, provided the collection site is open during or immediately following the
employee’s shift.

     (5) During an employee’s shift, an employee will not be required to use his/her personal
vehicle from the terminal to and from the collection site to take a random drug test.

66

 

     (6) If a road driver is called at home to take a random drug test at a time when the road
driver is not en route to or from work, the driver shall be paid, in addition to all time at the
collection site, travel time both ways between the driver’s home and the collection site with no
minimum guarantee.

     b. Non-Suspicion-Based Post-Accident Testing

     (1) In the event of a non-suspicion-based post-accident testing situation, where the employee
has advised the Employer of the issuance of a citation for a moving violation, but the Employer
does not direct the employee to be tested immediately, but sends the employee for testing at some
later time [during the thirty-two (32) hour period], the employee shall be paid for all time
involved in testing, from the time the employee leaves home until the employee returns home after
the test.

     (2) When the Employer takes a road driver out of service and directs the employee to be tested
immediately, the Employer will make arrangements for the road driver to return to his/her home
terminal in accordance with the Supplemental Agreement.

Section 4. Alcohol Testing

The parties agree that in the event of further federal legislation or DOT regulations providing for
revised methodologies or requirements, those revisions shall, to the extent they impact this
Agreement, unless mandated, be subject to mutual agreement by the parties.

     A. Employees Who Must be Tested

There shall be random, non suspicion-based post accident and probable suspicion alcohol testing of
all employees subject to DOT-mandated alcohol testing. This includes all employees who, as a
condition of their employment, are required to have a DOT physical, a CDL and are subject to
testing for drugs under Article 35, Section 3B.

Employees covered by this Collective Bargaining Agreement who are not subject to DOT-mandated
alcohol testing are only subject to probable suspicion testing as provided in Article 35, Section 3
of the NMFA or the appropriate article of the applicable Supplemental Agreement. The alcohol breath
testing methodology outlined in this Section will be utilized for all employees required to undergo
probable suspicion testing. (For test results and discipline, refer to NMFA, Article 35, Section 3
I 2.)

     B. Alcohol Testing Procedure

All alcohol testing under this Section will be conducted in accordance with applicable DOT/FMCSA
regulations. All equipment used for alcohol testing must be on the NHTSA Conforming Products List
and be used and maintained in compliance with DOT requirements. Breath samples will be collected by
a Breath Alcohol Technician (BAT) who has successfully completed the necessary training course that
is the equivalent of the DOT model course and who is knowledgeable of the alcohol testing
procedures set forth in 49 CFR Part 40 and any current DOT Guidance. Law enforcement officers who
have been certified by state or local governments to conduct breath alcohol testing are deemed to
be qualified as Breath Alcohol Technicians. The training shall be specific to the type of
Evidential Breath Testing (EBT) device being used for testing. The Employer shall provide the
employees with material containing the information required by Section 382.601 of the Federal Motor
Carrier Safety Regulations.

     1. Screening Test

The initial screening test uses an Evidential Breath Testing (EBT) device, unless other testing
methodologies or devices are mandated or agreed upon, to determine levels of alcohol. The following
initial cutoff levels shall be used when screening breath samples to determine whether they are
negative or positive for alcohol.

     Breath Alcohol Levels:

     Less than 0.02% BAC — Negative

     0.02% BAC and above — Positive (Requires Confirmation Test)

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     2. Confirmatory Test

All samples identified as positive on the initial screening test, indicating an alcohol
concentration of 0.02% BAC or higher, shall be confirmed using an EBT device that is capable of
providing a printed result in triplicate; is capable of assigning a unique number to each test; and
is capable of printing out, on each copy of the printed test result, the manufacturer’s name for
the device, the device’s serial number and the time of the test unless other testing methodologies
or devices are mandated or mutually agreed upon.

A confirmation test must be performed a minimum of fifteen (15) minutes after the screening test,
but not more than thirty (30) minutes, unless otherwise provided by conditions set forth and
defined in 49 CFR Part 40.

The following cutoff levels shall be used to confirm a positive test for alcohol:

     Breath Alcohol Levels:

     Less than 0.02% BAC — Negative

     0.02% BAC to 0.039% BAC — Positive*

     0.04% BAC and above — Positive*

 

			
	*	 	Refer to Section 4 L for Discipline Based on a Positive Test

     C. Notification

All employees subject to DOT-mandated random alcohol testing will be notified of testing by the
Employer, in person or by direct phone contact.

     D. Pre-Qualification Testing for Non-DOT Personnel

Section has been deleted

     E. Random Testing

The method used to randomly select employees for alcohol testing shall be neutral, scientifically
valid and in compliance with DOT regulations.

The annual random testing rate for alcohol use shall be the rate established by the Administrator
of the FMCSA.

In the event of a grievance or litigation, the Employer shall, upon written request from the
employee, release to the employee and the Union (in its capacity as representative of the grievant
and as a decision maker in the grievance process), information required to be maintained under the
DOT alcohol testing regulations and arising from the results of an alcohol test which is subject to
release under the regulations.

The parties agree that no effort will be made to cause the system and method of selection to be
anything but a true random selection procedure ensuring that all affected employees are treated
fairly and equally.

Employees subject to random alcohol testing shall be tested within one (1) hour prior to starting
the tour of duty, during the tour of duty, or immediately after completing the tour of duty.

Employees who are on long-term illness or injury leave of absence, disability or vacation shall not
be subject to testing during the period of time they are away from work.

     F. Non-Suspicion-Based Post-Accident Testing

Employees subject to non suspicion-based post accident alcohol testing shall be limited to those
employees subject to DOT alcohol testing, who are involved in an accident where there is:

     (i) a fatality, or;

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     (ii) a citation under State or local law is issued to the driver for a moving traffic
violation arising from the accident in which

     (a) bodily injury to a person who, as a result of the injury, immediately receives medical
treatment away from the scene of the accident, or

     (b) one or more motor vehicles incurring disabling damage as a result of the accident,
requires the vehicle(s) to be transported away from the scene by a tow truck or other vehicle.

Alcohol testing will be required under the above conditions and employees are required to submit to
such testing as soon as practicable. Under no circumstances shall this type of testing be conducted
after eight (8) hours from the time of the accident.

It shall be the responsibility of the driver to remain readily available for testing after the
occurrence of a commercial motor vehicle accident. It is also the responsibility of the employee to
not use alcohol for eight (8) hours or until a DOT post-accident alcohol test is performed,
whichever occurs first. It is not the intention of this language to require the delay of necessary
medical attention or to prohibit the driver from leaving the scene of an accident for the period
necessary to obtain assistance in responding to the accident or necessary medical attention.

Prior to the effective date of the DOT alcohol testing regulations, the Employer agrees to give
each employee subject to DOT non-suspicion-based post-accident testing written notification of the
procedures required by the DOT regulations in the event of an accident as defined by the DOT.

     G. Substance Abuse Professional (SAP)

     1. The Substance Abuse Professional (SAP), as provided in the regulations, means a licensed
physician (Medical Doctor or Doctor of Osteopathy), or a licensed or certified psychologist, social
worker, or employee assistance professional, or a drug and alcohol counselor (certified by the
National Association of Alcoholism and Drug Abuse Counselors Certification Commission or by the
International Certification Reciprocity Consortium/Alcohol & Other Drug Abuse). All must have
knowledge of and clinical experience in the diagnosis and treatment of alcohol and controlled
substance-related disorders, be knowledgeable of the SAP function as it relates to Employer
interest in safety-sensitive functions, and applicable DOT agency regulations. In addition, the SAP
shall comply with the DOT qualification training and continuing education requirements.

     2. The Employer will provide the employee with a list of resources available to the driver in
evaluating and resolving problems with the misuse of alcohol as soon as practicable but no later
than thirty-six (36) hours after the Employer’s receipt of notice from the BAT that the employee
has a BAC of 0.04% or higher, exclusive of holidays and weekends. The SAP will be responsible for
recommending the appropriate course of education and/or treatment required prior to the employee
returning to work and is the only person responsible for determining, during the evaluation
process, whether an employee will be directed to a rehabilitation program, and if so, for how long.

     3. Follow-up and return-to-duty tests need not be confined to the substance involved in the
violation. If the SAP determines that a driver needs assistance with an alcohol and drug abuse
problem, the SAP may require drug tests to be performed along with any required alcohol follow-up
and/or return-to-duty tests, if it has been determined that a driver has violated the drug testing
prohibition.

     4. Any cost of evaluation by the SAP and/or rehabilitation recommended by the SAP associated
with the abuse of alcohol while performing or available to perform safety-sensitive functions under
this Agreement, over and above that paid for by the applicable Health and Welfare Fund, must be
borne by the employee. The Employer will pay for random, non-suspicion-based post accident and
probable suspicion alcohol testing. Return-to-duty and follow-up alcohol testing that is prescribed
by the SAP, will be paid for by the Employer, provided the employee tests negative.

     H. Probable Suspicion Testing

Employees subject to DOT probable suspicion alcohol testing under this Section shall be tested in
accordance with current, applicable DOT regulations.

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For all purposes herein, the parties agree that the terms “probable suspicion” and “reasonable
cause” shall be synonymous.

Probable suspicion is defined as an employee’s specific observable appearance, behavior, speech or
body odor that clearly indicates the need for probable suspicion alcohol testing.

In the event the Employer is unable to determine whether the abnormal behavior or appearance is due
to alcohol or drugs, the Employer shall specify that the basis for any disciplinary action or
testing is for alcohol and/or drug intoxication. In such cases, the employee shall be tested in
accordance with Article 35, Section 3 A, and applicable DOT alcohol testing regulations.

In cases where an employee has specific, observable, abnormal indicators regarding appearance,
behavior, speech or body odor, and at least one (1) supervisor, two (2) if available, have probable
suspicion to believe that the employee is under the influence of alcohol, the Employer may require
the employee, in the presence of a union shop steward or other employee requested by the employee
under observation, to submit to a breath alcohol test. Suspicion is not probable and thus not a
basis for testing if it is based solely on third party observation and reports.

The supervisor(s) must make a written statement of these observations within twenty-four (24)
hours. Upon request, a copy must be provided to the shop steward or other union official after the
employee is discharged or suspended or taken out of service.

All supervisors and Employer representatives designated to determine whether probable suspicion
exists to require an employee to undergo alcohol testing shall receive specific training on the
physical, behavioral, speech and performance indicators of how to detect probable suspicion alcohol
misuse and use of controlled substances as required by DOT regulations.

In the event the Employer requires a probable suspicion test, the Employer shall provide
transportation to and from the testing location.

     I. Preparation for Testing

All alcohol testing shall be conducted in conformity with the DOT alcohol regulations. Any alleged
abuse by the Employer, such as proven harassment of any employee or deliberate violation of the
regulations or the contract shall be subject to the grievance procedure to provide a reasonable
remedy for the alleged violation.

Upon arrival at the testing site, an employee must provide the Breath Alcohol Technician (BAT) with
proper identification. The employee shall not be required to waive any claim or cause of action
under the law.

A standard DOT approved alcohol testing form will be used by all testing facilities. In the case of
probable suspicion or other contractually required testing, a Non-DOT chain of custody form will be
used for the testing of Non-DOT employees.

     J. Specimen Testing Procedures

All procedures for alcohol testing will comply with Department of Transportation regulations.

No unauthorized personnel will be allowed in any area of the testing site. Only one alcohol testing
procedure will be conducted by a BAT at the same time.

The employee will provide his or her breath sample in a location that allows for privacy. The
Employer agrees to recognize all employees’ rights to privacy while being subjected to the testing
process at all times and at all testing sites. Further, the Employer agrees that in all
circumstances the employee’s dignity will be considered and all necessary steps will be taken to
ensure that the entire process does nothing to demean, embarrass or offend the employee
unnecessarily. Testing will be under the direct observation of a Breath Alcohol Technician (BAT).
All procedures shall be conducted in a professional, discreet and objective manner. Direct
observation will be necessary in all cases.

The employee shall provide an adequate amount of breath for the Evidential Breath Testing device.
If the individual

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is unable to provide a sufficient amount of breath, the BAT shall direct the individual to again
attempt to provide a complete sample.

If an employee is unsuccessful in providing the requisite amount of breath, the Employer then must
have the employee obtain, within five (5) days, an evaluation from a licensed physician selected by
the Employer and the Local Union and who has the expertise in the medical issues concerning the
employee’s inability to provide an adequate amount of breath. If the physician is unable to
determine that a medical condition has, or with a high degree of probability could have, precluded
the employee from providing an adequate amount of breath, the employee’s failure to provide an
adequate amount of breath will be regarded as a refusal to take the test and subject the employee
to discharge.

     K. Leave of Absence Prior to Testing

An employee shall be permitted to take leave of absence in accordance with the FMLA or applicable
State leave laws for the purpose of undergoing treatment pursuant to an approved program of
alcoholism or drug use. The leave of absence must be requested prior to the commission of any act
subject to disciplinary action. This provision does not alter or amend the disciplinary provision
(Article 35, Section 4 L) of this Section.

Before returning to work from a voluntary leave of absence, the employee must have completed any
recommended treatment and taken a return to duty test, with a result of less than 0.02% BAC, and
further be subject to six (6) unannounced follow-up alcohol tests in the first twelve (12) months
following the employee’s return to duty.

The Supplemental Agreements shall address the issue of an extra-board driver who, while at his home
terminal, has consumed alcohol, is then called for dispatch and requests additional time off.
Requesting time off under this provision shall not be used as a subterfuge to avoid taking a random
alcohol (and/or drug) test.

     L. Disciplinary Action Based on Positive Test Results

     1. First Positive Test

0.02% BAC-0.039% BAC

Out of Service for 24 hours

0.04% BAC-Less than State DWI/DUI Limit

Out of Service for the length of time determined by the SAP with a minimum of twenty-four (24)
hours

State DWI/DUI Limit and Above

Subject to discharge

     2. Second Positive Test

0.02% BAC-0.039% BAC

Out of Service for a five (5) calendar day suspension

0.04% BAC-Less than State DWI/DUI Limit

Out of Service for the length of time determined by the SAP with a minimum of a twenty (20)
calendar day suspension

State DWI/DUI Limit and Above

Subject to discharge

     3. Third Positive Test

0.02% BAC-0.039% BAC

Out of Service for a fifteen (15) calendar day suspension

0.04% BAC-Less than State DWI/DUI Limit

Out of Service for the length of time determined by the SAP with a minimum of a thirty (30)
calendar day

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suspension

State DWI/DUI Limit and Above

Subject to discharge

     4. Fourth Positive Test

0.02% BAC-0.039% BAC

Subject to discharge

0.04% BAC-Less than State DWI/DUI Limit

Subject to discharge

State DWI/DUI Limit and Above

Subject to discharge

     5. An employee who is tested positive in a non-suspicion-based post-accident alcohol testing
situation shall be subject to the following discipline for the positive alcohol test or the
vehicular accident, whichever is greater:

First Non-Suspicion-Based Post-Accident Positive — Test 0.02% BAC — 0.039% BAC — Thirty (30)
calendar day suspension. 0.04% BAC and higher — Subject to discharge.

Second Non-Suspicion-Based Post-Accident Positive — Test 0.02% BAC and higher — subject to
discharge.

     6. An employee’s refusal to submit to any alcohol test will subject the employee to discharge.

     M. Return to Duty After a Positive (Greater than .04 to the State Limit) Alcohol Test

Before returning to work the employee must be evaluated by a SAP, comply with any education and/or
treatment recommended by the SAP, be re-evaluated by the SAP to determine compliance with
recommended education and/or treatment, and take a return-to-duty alcohol test, showing a result of
less than 0.02% BAC. The employee will be subject to at least six (6) unannounced follow-up alcohol
and/or drug tests as determined by the SAP. The requirements of follow-up testing follow the
employee through breaks in service (i.e. layoff, on-the-job injury, personal illness/injury, leave
of absence, etc.). In addition, the requirements of follow-up testing follow the employee to
subsequent employers. The SAP has the authority to order any number of follow-up alcohol and/or
urine drug tests and to extend the twelve (12) month period up to sixty (60) months.

     N. Paid-for-time-Testing

Employees subject to testing and selected by the random selection process for alcohol testing shall
be compensated at the regular straight time hourly rate of pay provided that the test is negative:

     1. Random Alcohol Tests

     a. Paid for all time at the collection site.

     b. (1) for travel time one way if the collection site is reasonably en route between the
employee’s home and the terminal, and the employee is going to or from work; or

     (2) for travel time both ways between the terminal and the collection site, only if the
collection site is not reasonably en route between the employee’s home and the terminal.

     c. When an employee is on the clock and a random alcohol test is taken any time during the
employee’s shift, and the shift ends after eight (8) hours, the employee is paid time and one-half
for all time past the eight (8) hours.

     d. The Employer will not require the city employee to go for alcohol testing before the city
employee’s shift, provided the collection site is open during or immediately following the
employee’s shift.

     e. During an employee’s shift, an employee will not be required to use his/her personal
vehicle from the terminal to and from the collection site to take a random alcohol test.

     f. If a road driver is called to take a random alcohol test at a time when the road driver is
not en route to or

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from work, the driver shall be paid, in addition to all time at the collection site, travel time
both ways between the location of the driver when called and the collection site with no minimum
guarantee.

     2. Non-Suspicion-Based Post-Accident Testing

     a. In the event of a non-suspicion-based post-accident testing situation, where the employee
has advised the Employer of the issuance of a citation for a moving violation, but the Employer
does not direct the employee to be tested immediately, but sends the employee for testing at some
later time (during the eight (8) hour period), the employee shall be paid for all time involved in
testing, from the time the employee leaves home until the employee returns home after the test.

     b. When the Employer takes a driver out of service and directs the employee to be tested
immediately, the Employer will make arrangements for the driver to return to his/her home terminal
in accordance with the Supplemental Agreement.

          O. Record Retention

The Employer shall maintain records in a secure manner so that disclosure of information to
unauthorized persons does not occur.

Each Employer or its agent is required to maintain the following records for two years:

     1. Records of the inspection and maintenance of each EBT used in employee testing;

     2. Documentation of the Employer’s compliance with the Quality Assurance Program for each EBT
it uses for alcohol testing; and

     3. Records of the training and proficiency testing of each BAT used in employee testing.

     The Employer must maintain for five years records pertaining to the calibration of each EBT used in
alcohol testing, including records of the results of external calibration checks.

     P. Special Grievance Procedure

     1. The parties shall together create a Special Region Joint Area Committee consisting of an
equal number of Employer and Union representatives to hear drug and alcohol related discipline
disputes. All such disputes arising after the establishment of the Special Region Joint Area
Committee shall be taken up between the Employer and Local Union involved. Failing adjustment by
these parties, the dispute shall be heard by the Special Region Joint Area Committee within ninety
(90) days of the Committee’s receipt of the dispute. When the Special Region Joint Area Committee,
by majority vote, settles a dispute, such decision shall be final and binding on both parties with
no further appeal. Where the Special Region Joint Area Committee is unable to agree or come to a
decision on a dispute, the dispute will be referred to the National Grievance Committee.

     2. The Procedures set forth herein may be invoked only by the authorized Union representative
or the Employer.

ARTICLE 36.

NEW ENTRY (NEW HIRE) RATES

1. Full-Time New Hire Wage Progression and Casual Rates

     A. CDL Qualified Driver or Mechanics

     Effective April 1, 2008, all regular employees hired on or after that date and employees who are in
progression shall receive the following hourly and/or mileage rates of pay:

	(a)	 	Effective first (1st) day of employment: Eighty-five percent (85%) of the current
rate.

	(b)	 	Effective first (1st) day of employment plus one (1) year: Ninety percent (90%)
of the current rate.

	(c)	 	Effective first (1st) day of employment plus two (2) years: Ninety-five percent
(95%) of the current rate.

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	(d)	 	Effective first (1st) day of employment plus three (3) years: One hundred percent
(100%) of the current rate.

     B. Non-CDL Qualified Employees

Effective April 1, 2008, all non-CDL qualified employees (excluding mechanics) hired will be
subject to the following new hire progression:

	(a)	 	Effective first (1st) day of employment: Seventy percent (70%) of the current
rate.

	(b)	 	Effective first (1st) day of employment plus one year: Seventy-five percent (75%)
of the current rate.

	(c)	 	Effective first (1st) day of employment plus two years: Eighty percent (80%) of
the current rate.

	(d)	 	Effective first (1st) day of employment plus three years: One hundred percent
(100%) of the current rate.

ARTICLE 37.

NON-DISCRIMINATION

The Employer and the Union agree not to discriminate against any individual with respect to hiring,
compensation, terms or conditions of employment because of such individuals race, color, religion,
sex, age, or national origin nor will they limit, segregate or classify employees in any way to
deprive any individual employee of employment opportunities because of race, color, religion, sex,
age, or national origin or engage in any other discriminatory acts prohibited by law. This Article
also covers employees with a qualified disability under the Americans with Disabilities Act,
although whether the Employer has complied with the ADA’s statutory requirements shall not be
subject to the grievance procedure.

ARTICLE 38.

Section 1. Sick Leave

Effective April 1, 1980 and thereafter, all Supplemental Agreements shall provide for five (5) days
of sick leave per contract year.

Sick leave not used by March 31 of any contract year will be paid on March 31 at the applicable
hourly rate in existence on that date. Each day of sick leave will be paid for on the basis of
eight (8) hours’ straight-time pay at the applicable hourly rate.

Sick leave will be paid to eligible employees beginning on the third (3rd) working day of absence
due to sickness or accident except where the employee is hospitalized prior to that date when it
will be paid beginning on the date of hospitalization.

Effective January 1, 2009, the accrual and cash out dates for sick leave will become April 1, to
January 1. As an example, employees will be entitled to cash out accrued unused sick leave on April
1, 2008, and will accrue an additional 5 days sick leave between April 1, 2008, and December 31,
2008, and will be entitled to cash out any unused sick leave on January 1, 2009. In addition, no
employee will lose their entitlement to the cash out of unused sick leave on January 1, 2009,
because they were not able to satisfy the present eligibility provision of having received 90 days
of compensation during the shorten qualifying period of April 1, 2008, through December 31, 2008.

The additional sick leave days referred to above shall also be included in those Supplements
containing sick leave provisions prior to April 1, 1976. The National Negotiating Committees may
develop rules and regulations to apply to sick leave provisions negotiated in the 1976 Agreement
and amended in this Agreement uniformly to the Supplements. The Committee shall not establish rules
and regulations for sick leave programs in existence on March 31, 1976.

Section 2. Jury Duty

Effective April 1, 2003, all regular employees called for jury duty will receive the difference
between eight (8) hours

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pay at the applicable hourly wage and actual payment received for jury service for each day of jury
duty to a maximum of fifteen (15) days pay for each contract year.

When such employees report for jury service on a scheduled workday, they will not unreasonably be
required to report for work that particular day.

Time spent on jury service will be considered time worked for purposes of Employer contributions to
health & welfare and pension plans, vacation eligibility and payment, holidays and seniority, in
accordance with the applicable provisions of the Supplemental Agreements to a maximum of fifteen
(15) days for each contract year.

Employees who have been selected to serve on a jury, including those selected as an alternate jury
member and who are scheduled to work shifts beginning after 4:00 p.m. will be given the option of
working either the day their jury duty begins or the day following the day their jury duty begins
and thereafter shall not be required to work on any day in which the jury is in session.

Section 3. Family and Medical Leave Act

All employees who worked for the Employer for a minimum of twelve (12) months and worked at least
1250 hours during the past twelve (12) months are eligible for unpaid leave as set forth in the
Family and Medical Leave Act of 1993.

Eligible employees are entitled to up to a total of 12 weeks of unpaid leave during any twelve (12)
month period for the following reasons:

     1. Birth or adoption of a child or the placement of a child for foster care;

     2. To care for a spouse, child or parent of the employee due to a serious health condition;

     3. A serious health condition of the employee.

The employee’s seniority rights shall continue as if the employee had not taken leave under this
Section, and the Employer will maintain health insurance coverage during the period of the leave.

The Employer may require the employee to substitute accrued paid vacation or other paid leave for
part of the twelve (12) week leave period.

The employee is required to provide the Employer with at least thirty (30) days advance notice
before FMLA leave begins if the need for leave is foreseeable. If the leave is not foreseeable, the
employee is required to give notice as soon as practicable. The Employer has the right to require
medical certification of a need for leave under this Act. In addition, the Employer has the right
to require a second (2nd) opinion at the Employer’s expense. If the second opinion conflicts with
the initial certification, a third opinion from a health care provider selected by the first and
second opinion health care providers, at the Employer’s expense may be sought, which shall be final
and binding. Failure to provide certification shall cause any leave taken to be treated as an
unexcused absence.

As a condition of returning to work, an employee who has taken leave due to his/her own serious
health condition must be medically qualified to perform the functions of his/her job. In cases
where employees fail to return to work, the provisions of the applicable Supplemental Agreement
will apply.

It is specifically understood that an employee will not be required to repay any of the
contributions for his/her health insurance during FMLA leave. No employee will be disciplined for
requesting or taking FMLA leave under the contract absent fraud, misrepresentation, or dishonesty.

Disputes arising under this provision shall be subject to the grievance procedure.

The provisions of this Section are in response to the federal FMLA and shall not supersede any
state or local law which provides for greater employee rights.

The Employer may not force an employee to use pre-scheduled vacation time as FMLA leave, provided
the vacation

75

 

involved was prescheduled in accordance with the applicable supplemental agreement.

The Employer may not force an employee who has taken separate hours of unpaid leave for medical
reasons to substitute those hours as accrued leave under the FMLA.

The Employer may not force an employee to substitute accrued leave for FMLA leave if the employee
is receiving supplemental loss-of-time disability benefits from a benefit plan under the Agreement.

ARTICLE 39.

DURATION

Section 1.

This Agreement shall be in full force and effect from April 1, 2008, to and including March 31,
2013, and shall continue from year to year thereafter unless written notice of desire to cancel or
terminate this Agreement is served by either party upon the other at least sixty (60) days prior to
date of expiration.

When notice of cancellation or termination is given under this Section, the Employer and the Union
shall continue to observe all terms of this Agreement until impasse is reached in negotiations, or
until either the Employer or the Union exercise their rights under Section 3 of this Article.

Section 2.

Where no such cancellation or termination notice is served and the parties desire to continue said
Agreement but also desire to negotiate changes or revisions in this Agreement, either party may
serve upon the other a notice at least sixty (60) days prior to March 31, 2013 or March 31st of any
subsequent contract year, advising that such party desires to revise or change terms or conditions
of such Agreement.

Section 3.

The Teamsters National Freight Industry Negotiating Committee, as representative of the Local
Unions or the signatory Employer or the authorizing Employer Associations, shall each have the
right to unilaterally determine when to engage in economic recourse (strike or lockout) on or after
April 1, 2013, unless agreed to the contrary.

Section 4.

Revisions agreed upon or ordered shall be effective as of April 1, 2008 or April 1st of any
subsequent contract year.

Section 5.

In the event of an inadvertent failure by either party to give the notice set forth in Sections 1
and 2 of this Article, such party may give such notice at any time prior to the termination or
automatic renewal date of this Agreement. If a notice is given in accordance with the provisions of
this Section, the expiration date of this Agreement shall be the sixty-first (61st) day following
such notice.

Section 6.

In those circumstances where the Teamsters National Freight Industry Negotiating Committee, as
representative of the Local Union, or the signatory Employer or the authorizing Employer
Associations, shall have served a notice of reopening pursuant to this Article and have not been
able to arrive at an agreement within six (6) months, then either side shall have the right on
sixty (60) days’ written notice to terminate this Agreement.

IN WITNESS WHEREOF the parties hereto have set their hands and seals this day of ____________,
2008 to be effective April 1, 2013, except as to those areas where it has been otherwise agreed
between the parties.

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NATIONAL ECONOMIC SETTLEMENT

1.
General Wage Increases: Full-Time

	 	 	 	 	 
	Effective Dates	 	Hourly	 	Mileage
	April 1, 2008
	 	$0.50 per hour
	 	1.250 cents per mile
	April 1, 2009
	 	$0.40 per hour
	 	1.000 cents per mile
	April 1, 2010
	 	$0.45 per hour
	 	1.125 cents per mile
	April 1, 2011
	 	$0.40 per hour
	 	1.000 cents per mile
	April 1, 2012
	 	$0.45 per hour
	 	1.125 cents per mile
	TOTAL:
	 	
$2.20 per hour

	 	
5.500 cents per mile

2. Full-Time New Hire Wage Progression and Casual Rates

A.
CDL Qualified Driver or Mechanics Effective April 1, 2008, all regular employees hired on or
after that date and employees who are in progression shall receive the following hourly and/or
mileage rates of pay:

      (a) Effective first (1st) day of employment  — eighty-five percent (85%) of
the current rate.

     (b) Effective first (1st) day of employment plus one (1) year — ninety percent (90%) of the
current rate.

     (c) Effective first (1st) day of employment plus two (2) years  — ninety five percent (95%)
of the current rate

     (d) Effective first (1st) day of employment plus three (3) years  — one hundred percent
(100%) of the current rate

CDL-qualified employees hired into driving positions who are not currently on the seniority list at
an NMFA carrier and who for two (2) or more years regularly performed CDL-required driving work for
a commonly-owned NMFA carrier shall be compensated at 90% of the full contract rate of pay for a
period of one (1) year and go to the full contractual rate thereafter, provided they have not had a
break in service in excess of three (3) years.

B.
Non-CDL Qualified Employees Effective April 1, 2008, all non-CDL qualified employees
(excluding mechanics) hired will be subject to the following new hire progression:

     (a) Effective first (1st) day of employment — seventy percent (70%) of the current rate.

     (b) Effective first (1st) day of employment plus one year — seventy five percent (75%) of the
current rate.

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     (c) Effective first (1st) day of employment plus two years — eighty percent (80%) of the
current rate.

     (d) Effective first (1st) day of employment plus three years — one hundred percent (100%) of
the current rate.

C. 1) City and combination casual rates shall increase by 80% of the general wage increase for
regular employees on the dates shown above.

     2) Effective for dock casuals hired after 4/1/08, hourly rate will be $14.00 for the duration
of the agreement.

3.
Utility Employee Rate

Effective April 1, 2008, the Employer shall pay each Utility Employee an hourly premium of
$1.00 per hour over the highest rate the Employer pays to local cartage drivers under the
Supplemental Agreement covering the Utility Employee’s home domicile. A Utility Employee in
progression shall receive the hourly premium in addition to the Utility Employee’s progression
rate.

4.
Cost-of-Living Adjustment Clause: Article 33

No change from current contract language except change dates to make effective in new agreement.

5.
Paid Time Off

Sick Leave (Article 38)

Accrual and cash out dates for sick leave will move from April 1 to January 1 effective January 1,
2009. Employees will accrue five (5) days between 4/1/08 and 12/31/08 with any cash out on 1/1/09.
No employee would lose their entitlement to the cash out on 1/1/09 because of the ‘90 days of
compensation rule’. Sick leave will be paid to eligible employees beginning on the first
(1st) working day of absence.

6.
Education and Training

     The Employer will pay each regular employee that completes CDL training and certification after
April 1, 2008 the sum of $250.00.

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7.
Health & Welfare and Pension

A. Employer
Contributions to Teamster Health and Welfare & Pension Plans: The Employer shall
increase its contribution to all Teamster Plans, as follows:

	 	 	 	 
	Effective Dates	 	Increases in Employer Contributions
	August 1, 2008	 	 	$1.00 per hour
	August 1, 2009	 	additional 	$1.00 per hour
	August 1, 2010	 	additional 	$1.00 per hour
	August 1, 2011	 	additional 	$1.00 per hour
	August 1, 2012	 	additional 	$1.00 per hour
	TOTAL:	 	 	$5.00 per hour

Monthly, daily and/or hourly contributions shall be converted from the hourly contributions in
accordance with past practice.

Allocation of increases between Health, Welfare and Pension to be made by supplemental negotiating
committees based on recommendations from the Funds.

NOTE: For Central States Only: Effective April 1, 2008, the weekly benefit payment trigger will be
three (3) days worked per week. The “S” Plan will be provided for those employees who work at
least one day per week with an Employer contribution rate of $34.00 per week.

NOTE: TNFINC will address the Employer’s proposal regarding the economic requirements of the
Pension Protection Act.

8.
Duration

This Agreement shall be in full force and effect from April 1, 2008, to and including March 31,
2013, and shall continue from year to year thereafter unless written notice of desire to cancel or
terminate this Agreement is served by either party upon the other at least sixty (60) days prior to
date of expiration.

79AMENDMENT NO. 3, dated as of February 13, 2008, to Employment Agreement, dated as of November 3, 2003, by and between Vion Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Alan Kessman (the “Executive”), as amended by Amendment No. 1 thereto, dated September 13, 2005, and Amendment No. 2 thereto, dated January 3, 2006 (collectively, the “2003 Agreement”).

WHEREAS, the Executive has been acting as the Chief Executive Officer of the Company pursuant to the 2003 Agreement; and

WHEREAS, the 2003 Agreement provides that the Executive is eligible for an annual bonus based on the achievement of specified Company goals with a maximum bonus of 50% of Base Salary during the fiscal year with respect to which such bonus is awarded; and

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the Executive is entitled to a bonus of $98,568.00 for the 2007 fiscal year (the “2007 Bonus”) based on the achievement of specified Company goals for the 2007 fiscal year; and

WHEREAS, the Executive is willing to defer payment of the 2007 Bonus and the Board is desirous of deferring payment of the 2007 Bonus; and

WHEREAS, in order to effectuate the foregoing, the Company and the Executive wish to amend the 2003 Agreement.

NOW THEREFORE, in consideration of premises and the respective covenants and agreements of the parties herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

1.

Section 5(b) of the 2003 Agreement is hereby amended and restated in its entirety to read as follows: 

“(b).

Bonuses.  The Executive will be eligible for an annual bonus based on the achievement of specified Company goals (as determined by the Board with input from the Executive), with a maximum bonus of fifty percent (50%) of Base Salary during the fiscal year with respect to which such bonus is awarded.  The annual bonus for fiscal 2007 payable to the Executive has been determined by the Board to be $98,568.00 (the “2007 Bonus”).  Notwithstanding anything herein to the contrary, the 2007 Bonus shall only be payable (unless otherwise agreed by the Executive) upon the earliest to occur of (i) a “change of control of the Company” (as defined in Section 10(b) hereof), (ii) termination of the Executive’s employment by the Executive for Good Reason pursuant to Section 6(d)(i), (iii) the receipt by the Company of NDA approval to market Cloretazine® (VNP40101M), (iv) the consummation of a debt or equity financing with primarily unaffiliated third parties in which the Company receives gross proceeds in an amount deemed to be adequate as determined by the Board in its sole discretion (with the Executive recusing himself from such determination) and which may be used for the payment of the 2007 Bonus and (v) such other time as is determined by the Board (with the Executive recusing himself from such determination).  If the Executive’s employment is terminated 

- 1 -

by the Company for Cause hereunder, then the 2007 Bonus, to the extent not previously paid, shall be forfeited.”

2.

Except as specifically amended as set forth herein, the 2003 Agreement shall remain in full force and effect.

3.

This Amendment 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.   

IN WITNESS WHEREOF, this Amendment No. 3 has been executed as of the date and year first above written.  

VION PHARMACEUTICALS, INC.

By:

/s/ Gary Willis               

Name: Gary Willis

Title:

Director, Chairman of 

Compensation Committee

/s/ Alan Kessman        

    Alan Kessman

- 2 -

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