Document:

Exhibit
10.9

 

PREAMBLE

 

This Agreement is entered
into this 25th day of February, 2002 by and between Heim Bearing
division, Roller Bearing Company, hereinafter called the COMPANY, AND THE
INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT
WORKERS OF AMERICA, U.A.W., AND AMALGAMATED LOCAL 376, UAW, the certified
bargaining representative of all employees in the appropriate unit, a signatory
party hereto, hereinafter referred to as the UNION.

 

ASSIGNABILITY

 

This Agreement shall be binding
upon the Successors and Assignees of the parties hereto, and no provisions,
terms, or obligations herein contained shall be affected, modified, altered or
changed in any respect whatsoever by any change in the regular status,
ownership or management of either party herein, provided the plant and
facilities of the Company remain within the State of Connecticut.  In the event the present owners sell or
assign the plant, or sell their interest in the business, the present owners
agree to make this Agreement a condition of such sale or assignment, provided
such sale or assignment contemplates that the plant and facilities of the
Company will remain within the State of Connecticut, and the present owners
shall be relieved of any personal liability whatsoever under the Agreement
thereafter.

 

ARTICLE A

EMPLOYEES COVERED
BY THIS

AGREEMENT

 

Section 1.  The Company recognizes the Union as the sole
and exclusive bargaining agency of the following employees:  all production and maintenance employees,
including stockroom employees and tool clerks, also shipping and receiving
clerks, excluding, however, engineering and clerical employees and supervisory
employees as defined in the Labor-Management Relations Act of 1947, and any
amendments thereto.

 

ARTICLE B

RECOGNITION

 

Section 1.               The Union represents that it has
been authorized by a majority of the Company’s employees in a unit appropriate
for such purposes, as the representative designated or selected for the purpose
of collective bargaining in respect to rates of pay, wages, hours of
employment, or other conditions of employment.

 

ARTICLE C

UNION SECURITY

 

Section 1.               All present employees within the
Bargaining Unit on the effective date of this Agreement shall, within thirty
days thereafter, as a condition of employment, become and/or remain members of
the Union in good standing to the extent of paying membership dues and
initiation fees.

 

 

Section 2.               Employees in the bargaining Unit
who have not on the effective date of this Agreement completed thirty days of employment
with the Company shall, as a condition of employment, within thirty days after
the effective date of this Agreement or at the expiration of thirty days of
employment, whichever period is longer, become and remain members of the Union
in good standing to the extent of paying membership dues and initiation fees.

 

Section 3.               All new employees hired during
the life of this Agreement shall, as a condition of employment, within thirty
days after date of hire or thirty days after the signing of this Agreement,
whichever period is longer, become and remain members of the Union in good
standing to the extent of paying membership dues and initiation fees.

 

Section 4.               The Company will give to each
present employee a printed copy of this Agreement.

 

Section 5.               The Company will give a printed
copy of this agreement, together with an authorization form for check-off of
dues to all new hires.

 

ARTICLE D

CHECK-OFF

 

Section 1.               The Company shall deduct, for
employees covered by this Agreement who are members of the Union, their Union
membership dues and initiation fees levied against all Union members in
accordance with the Constitution and Bylaws of the Union and promptly remit the
same, together with a list of employees for whom deductions were made, to the
Financial Secretary of the Union who is authorized to receive said payments,
provided that the Company has received from such employees individual and
voluntary signed authorizations. 
Authorization cards shall be in the following form:

 

AUTHORIZATION FOR
CHECK-OFF OF DUES

 

To Heim Bearings
Division, Roller Bearing Company, Inc.

 

	
  Date                                      

  

 

I hereby assign to Local
Union No. 376, International Union, United Automobile Aerospace and
Agricultural Implement Workers of America (UAW), from any wages earned or to be
earned by me as your employee (in my present or in any future employment by
you), such sums as the Financial Officer of said Local Union No. 376 may
certify as due and owing from me as membership dues, including an initiation or
reinstatement fee and monthly dues in such sum as may be established from time
to time as union dues in accordance with the Constitution of the International
Union, UAW.  I authorize and direct you
to deduct such amounts from my pay and to remit same to the Union at such times
and in such manner as may be agreed upon between you and the Union at any time
while this authorization is in effect.

 

This assignment,
authorization and direction shall be irrevocable for the period of one (1) year
from the date of delivery hereof to you, or until the termination of the
collective agreement between the Company and the Union which is in force at the
time of delivery of this authorization, whichever occurs sooner; and I agree
and direct that this assignment, authorization and direction shall be
automatically renewed and shall be irrevocable for successive periods of one
(1) year each or for the period of each succeeding applicable collective period
of each

 

2

 

succeeding applicable
collective agreement between the Company and the Union, whichever shall be
shorter, unless written notice is given by me to the Company and the Union, not
more than twenty (20) days and not less than ten (10) days prior to the
expiration of each period of one (1) year, or of each applicable collective
agreement between the Company and the Union whichever occurs sooner.

 

This authorization is
made pursuant to the provisions of Section 392 (c) of the Labor Management
Relations Act of 1947 and otherwise.

 

	
   

  	
   

  	
   

  
	
  (Signature of Employee
  here)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Type of print name of
  employee here)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Date of sign.)

  	
   

  	
  (Emp. Clock No.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address of Employee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City)

  	
  (State)

  	
  (Zip)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Soc. Sec. No.)

  	
   

  	
  (Date of del. to

  Employer)

  

 

Section 2.               All deductions covered by this
Agreement shall be made in a manner agreed upon with the Union, except that
dues and initiation fees will be on a monthly basis.  However, local practices, relative to number of hours per month
to be worked before dues deductions shall be made, shall be in accord with the
Constitution of the International Union. 
If in any month full dues are not deducted, the Company and Union may
agree upon an orderly manner of collection in the succeeding month or months.

 

Section 3.               All sums deducted under the
Agreement shall be remitted to the Financial Secretary of the local Union,
prior to the first of the month following the deduction and the Company will
furnish the financial Secretary of the local Union, monthly, a record of those
for whom deductions have been made, together with the amount of such deductions
and also a record of all terminations and employees absent during the week of
the check-off.

 

3

 

ARTICLE 1

HOURS AND OVERTIME

 

Section 1.               The normal work week shall be:

 

(a)                                  Forty
(40) hours, based on eight (8) hours per day, five (5) days per week, Monday
through Friday inclusive.

 

(b)                                 The
normal work week shall begin on Sunday night at 11:00 p.m. with the start of
the third (3rd) shift and end 168 hours later.

 

(c)                                  The
first day shall be the 24 hour period beginning with the employees regular
scheduled shift starting time.

 

(1)           First shift hours 6:00 a.m. to 2:30
p.m.

 

(2)           Second shift hours 3:30 p.m. to
midnight

 

(3)           Third shift hours 11:00 p.m. to 7:00
a.m.

 

(d)                                 Third
shift employees will be entitled to a paid 20 minute lunch.

 

(e)                                  Friday
will be the third shift’s “Saturday” for overtime pay calculation purposes.

 

(f)                                    Saturday
will be the third shift’s “Sunday” for overtime pay calculation purposes.

 

(g)                                 Third
shift employees will not be required to work overtime prior to the start of the
shift on Sunday night.

 

(h)                                 First
and second shift employees presently working twelve (12) hour shifts will
revert to the schedules in paragraph (c) respectively in the event that the
twelve (12) hour shifts are discontinued for any reason.

 

Section 2.               Time and one-half shall be paid
for all work performed.

 

(a)           In excess of eight (8) hours in any
one day.

 

(b)           In excess of forty (40) hours in any
one week.

 

(c)           On Saturdays as such.

 

(d)                                 Any
employee called in to work outside of the regularly scheduled shift hours shall
be paid not less than four (4) hours at his/her base rate as follows:

 

(1)           Time actually worked at prevailing
rate, plus

 

(2)           The remaining of the four (4) hours
not worked at straight time pay unless it is a premium day and the premium rate
shall prevail.

 

(e)           Double time will be paid for all work
performed on Sundays.

 

4

 

Section 3.               Notification of Overtime

 

(a)                                  Employees
shall not be required to work overtime when insufficient notice is given.  Notification at any time prior to the close
of the prior day’s shift will be considered sufficient notice for daily
overtime.

 

(b)                                 Employees
will be charged for all overtime hours where proper notification has been
given, whether the employee works or not.

 

(c)                                  Employees
shall not be required to work Saturday or Sunday overtime when insufficient
notice is given or when there is a reasonable excuse for not working.  Notice of Saturday of Sunday overtime must
be given to the employee no later than the end of the shift on the preceding
Thursday.

 

Section
4.

 

(a)                                  Overtime
will be equally distributed among those employees within the departments by
classification provided they have the ability to perform the available overtime
work.

 

(b)                                 Overtime
records will be maintained in each department next to the work instructions for
employees to inspect at any time.  All
records will be updated weekly.

 

(c)                                  Employees
with the lowest overtime hours will be asked to work first within their
department by job classification.

 

(d)                                 Employees
working overtime outside their departments shall be charged for actual hours
worked back to their department for overtime equalization.

 

(e)                                  The
company shall keep a record of overtime worked and overtime refused by
employees and shall furnish the Union with a copy of such record at the end of
each month.  If the difference in
overtime hours worked between the employee with the greatest number of overtime
hours and the other employees in the same work classification shall exceed ten
(10) hours at the end of every three (3) month period, such difference shall be
paid at time and one-half the other employee’s regular hourly rate, except when
such difference results from the other employee’s refusal to work in accordance
with this article.

 

Section
5.                                            Overtime
hours available will be recorded according to the following:

 

(a)                                  Overtime
hours offered and refused will be considered hours worked for the purpose of
equalizing overtime.

 

(b)                                 Employees
absent for any reason will be charged for all overtime hours they would have
been offered had they been at work.

 

Section
6.                                            There
shall be no duplication of compensation for overtime for the same hours worked
by an employee by reason of daily, weekly or other overtime provisions of any
kind.

 

5

 

ARTICLE 2

HOLIDAYS

 

Section 1.

 

(a)                                  Except
as hereinafter provided, all work done on the holidays set forth below shall be
paid for at the rate of double time plus holiday pay.  The specified holidays shall also be considered as days worked
for the purpose of computing overtime pay only.

 

	
  M.L. King Day

  	
   

  	
  Labor Day

  
	
  Good Friday

  	
   

  	
  Thanksgiving Day

  
	
  Memorial Day

  	
   

  	
  Friday after
  Thanksgiving

  
	
  Independence Day

  	
   

  	
  Employee’s Birthday

  

 

The Company will provide
the following Christmas and New Year’s Holidays with pay per the following
schedule:

 

	
  2002 Dec. 23, 24, 25,
  26, 27

  	
   

  	
  Jan. 1, 2003

  
	
  2003 Dec. 24, 25, 26, 29,
  30, 31

  	
   

  	
  Jan. 1, 2004

  
	
  2004 Dec. 24, 27, 28,
  29, 30, 31

  	
   

  	
   

  

 

(b)                                 It
is understood between the parties that an employee who is off work receiving
sick and accident benefits during a week in which a holiday falls will be paid
such holiday pay in addition to S & A benefits.  Similarly, employees receiving Workers’ Compensation will receive
holiday pay for a period not to exceed the agreed upon time limits for S &
A coverage.

 

Section
2.                                            When
a holiday falls on a Saturday, it shall be celebrated on the preceding
Friday.  When a holiday falls on a
Sunday, such holiday shall be celebrated on the following Monday, excluding
Christmas and New Year’s week.

 

Section
3.                                            The
holidays mentioned above shall be with pay. 
Consequently, all employees shall receive an amount equal to eight (8)
hours pay at their hourly rate for the specified holiday even though no work is
performed.  In order to be eligible for
holiday pay, the employees must:

 

(a)                                  Have
been in attendance on the work days preceding and following the holiday unless
the absence is for:

 

(1)                                  Death
in the immediate family as defined in Article 9.

 

(2)                                  Jury
Duty.

 

(3)                                  Important
Union business on the part of stewards, Shop Committee persons, Officers or
Appointees made known to and approved by the Company prior to such holidays.

 

(4)                                  An
employee who is laid off and again recalled within thirty (30) days, during
which period a paid holiday falls, shall receive holiday pay for that holiday.

 

(5)                                  For
other reasonable cause.

 

6

 

(b)                                 Employees
on twelve (12) hour shifts will revert to their normal eight (8) hour shifts
and will not be required to work overtime on the day prior to Good Friday,
Thanksgiving and Independence Day.

 

Section
4.                                            When
a holiday falls within a scheduled vacation period, another day off be between
Monday and Friday will be granted for that vacation day not taken or paid for
during the vacation period.

 

Section
5.                                            Employees
on leave of absence shall not be entitled to any holiday pay during such leave.

 

ARTICLE 3

WAGES AND RATES OF
PAY

 

Section 1.

 

(a)           Effective February 1, 2002, a
general wage increase of 2.9%

 

Effective
February 1, 2003, a general wage increase of 2.75%

 

Effective
February 1, 2004, a general wage increase of 2.9%

 

The hourly rates of pay
shown in Appendix A, and Appendix B attached hereto and made a part hereof,
shall remain in effect for the life of this Agreement.

 

(b)                                 It
is agreed that during the period of this Agreement, each employee covered by
this Agreement, shall receive a guaranteed cost of living allowance which will
be added to the employee’s straight time hourly earnings as set forth in
Appendix A of the Agreement.  The guaranteed
cost of living increases will be as follows:

 

	
  August 5, 2002

  	
   

  	
  10 cents

  	
   

  
	
  August 4, 2003

  	
   

  	
  5 cents

  	
   

  
	
  August 2, 2004

  	
   

  	
  5 cents

  	
   

  

 

(c)                                  Should
the effective date of the increases mentioned above fall on a Monday, Tuesday
or Wednesday, the increase specified shall revert to Monday.  Should the increases specified above fall on
a Thursday or Friday, the increases shall become effective on the following
Monday.

 

Section
2.

 

Employees required to
work on a shift other than the day shift will be paid a shift premium equal to
10% of their hourly rate in addition to their regular earnings for such hours
worked.

 

7

 

Section
3.

 

(a)                                  The
Company and the Union have negotiated job descriptions and evaluations by Labor
Grade.  Such descriptions and
evaluations are apart of this Agreement.

 

(b)                                 Newly
hired employees will start at the hire rate unless their training, knowledge or
experience justify hiring at a higher rate. 
They will progress to the maximum rate by receiving a twenty (20) cent
per hour increase after each sixty (60) days worked, payable starting in the
nearest Monday.  It is recognized that
the last raise may be less than twenty (20) cents per hour.

 

Employees, still in
progression, who are successful bidders on another job in a higher labor grade
will receive a twenty (20) cent per hour increase when they start the new job
and then will progress in twenty (20) cent increments after each sixty (60)
days worked until they reach the maximum. 
Rate changes will be made on the nearest Monday.  The last raise may be less than twenty (20)
cents.

 

(c)                                  Employees
who are promoted from the maximum rate of one job to a higher paying job will
receive the maximum rate of the higher job on the date of promotion.

 

(d)                                 Employees
who are at maximum and have been transferred to a higher rated job and are
later transferred back to a lower rated job will receive the maximum of the
lower rated job.

 

(e)                                  Employees
who have not progressed to the maximum and who move from a higher rated job to
a lower rated job will go down to a rate in the lower grade that is equivalent
to the progression point that they were in the higher rated job.

 

(f)                                    All
employees currently in Labor Grade 1

will be promoted to Labor Grade 2.

 

ARTICLE 4

VACATIONS

 

Section 1.               Effective February 1, 1996,
the continuous service requirements and earned vacation with pay at straight
time as detailed in the following vacation schedule table shall apply.  The service requirement will be based upon
seniority as of August 1st of the vacation year.

 

Service
Requirement Earned Vacation

 

	
  1 year but less than 2
  years

  	
  1 week (40 hrs)

  
	
  2 years but less than 5
  years

  	
  2 weeks (80 hrs)

  
	
  5 years but less than
  10 years

  	
  2-1/2 weeks (100 hrs)

  
	
  10 years but less than
  15 years

  	
  3 weeks (120 hrs)

  
	
  15 years but less than
  20 years

  	
  3-1/2 weeks (140 hrs)

  
	
  20 years but less than
  25 years

  	
  4 weeks (160 hrs)

  
	
  25 years and over

  	
  5 weeks (200 hrs)

  

 

8

 

Section 2.               A vacation shutdown period of up
to two weeks may be designated by the Company upon notice to the Union by
January 31 of each calendar year. 
If an employee has scheduled a vacation relying on the Company’s
shutdown notice, the employee will not be compelled to work.

 

Section 3.               Employees entitled to at least
two (2) weeks of vacation must take the same during the plant shutdown.  Employees entitled to more than two (2)
weeks of vacation may take same at a time of their choice but seniority and
Company production schedules shall be taken into consideration.

 

Section 4.               Employees must have worked a
minimum of 1000 hours in order to qualify for full vacation pay as provided in
Section 1 above.  Employees working less
than 1000 hours shall be paid on a pro-rated basis.  The period for determining hours worked shall be from August 1
of the prior year through July 31 of the current year.  Employees terminated for any reason shall
receive a pro-rated vacation pay. 
Absence due to sickness or injury shall be counted as hours worked.

 

Section 5.               The Company agrees to provide a
vacation bonus of $100 to all employees with 20 years of service.  The Company agrees to provide a vacation
bonus of $200 to all employees with 25 years service or more.

 

Section 6.               Employees who are entitled to and
wish to schedule a vacation should notify their supervisor in writing by
March 15.  Permission will be
granted based upon Company seniority and Company production schedules and
specific written responses will be made by April 1.

 

Once an employee’s
vacation has been approved, it will not be changed unless circumstances mandate
a change and more senior employees may not displace an employee’s approved
vacation.

 

An employee who does not
request vacation by March 15 or who requests additional vacation time must
submit a request in writing no later than three weeks prior to the time
requested.  This three week notice requirement
will not apply in emergencies.

 

Section 7.               All vacation pay shall be
distributed the last period prior to the shutdown period.

 

ARTICLE 5

SENIORITY

 

Section 1.               A seniority list including date
of birth, hiring date, job classification, department, labor grade, total
points and social security number shall be maintained and a copy shall be
furnished to the Union quarterly.

 

(a)                                  The
Company shall furnish the Union with a monthly report showing the names and
dates of new hires, layoffs, recalls, quits, discharges, leaves of absence
(granted and expired) and adjustments in the seniority listings with respect to
dates.  Any errors in the seniority
lists, layoffs and recalls that are discovered due to this submission shall be corrected
immediately.

 

(b)                                 The
Shop Chairperson shall be notified promptly of any additions or deletions.

 

9

 

Section
2.                                            Employees
will lose their seniority status if they:

 

(a)                                  Quit.

 

(b)                                 Are
discharged for justifiable cause.

 

(c)                                  Do
not report for work within five (5) working days following a notification by
certified letter of restoration after a layoff, except where a reasonable
excuse is provided.

 

(d)                                 Are
absent without a leave of absence or excused absence for three (3) consecutive
working days without notifying the Company, except where reasonable cause is
provided.

 

(e)                                  Are
on layoff in excess of thirty-six (36) months. 
Probationary employees who are laid-off will not be listed on the layoff
list.

 

(f)                                    Are
absent from work because of a non-occupational disability for a continuous
period in excess of eighteen (18) months.

 

Section
3.                                            New
employees shall be regarded as temporary or probationary employees for the
first sixty (60) calendar days of their employment.

 

Section
4.                                            Employees
advanced from hourly status to salary status shall lose seniority and
privileges under this contract thirty (30) calendar days after such appointment
unless returned to the Bargaining Unit within said period.

 

Section
5.                                            Employees
who are absent from work because of illness or injury will be returned to their
“original” job upon presenting the Company with a copy of their unconditional
medical release to return to work.

 

If their “orginal” job is
no longer available, they will exercise their contract rights in accordance
with Article 8 of this contract.

 

Jobs that become vacant,
because the employee in that job classification has been absent from work
because of injury or illness for a period of more than thirty (30) days and,

 

In the judgment of the
Company, that job needs to be filled it shall be handled as follows:

 

1.                                       The
Company shall offer recall rights to all eligible employees in an equal or
higher labor grade in accordance with Article 8, Section 1 (b) of the contract.

 

2.                                       If
no employee(s) have recall rights as describe in item 1 above, the Company , at
its discretion may post the job as “Temporary” job.

 

Bids on the “Temporary”
job shall be handled in accordance with Article 6 of the contract.

 

10

 

3.                                       If
there are no successful bids on the “Temporary” job, the Company shall offer
recall rights to all eligible employees in a lower labor grade.

 

4.                                       If
there is a reduction in force in a department where a “Temporary” job exists,
the employee in the “Temporary” job must be returned to the same status he/she
had prior to accepting the “Temporary” job before the layoff commences.

 

5.                                       If
the “Temporary” job is not filled after the above three actions have been taken
and, in the judgement of the Company, the job needs to be filled, the Company
may hire “from the street” to fill the job with the understanding that it is a
“Temporary” job.  The person hired from
the street to fill the “Temporary” job shall exercise his/her rights, if any,
under Article 8 of the contract when such “Temporary” job ceases to exist.

 

6.                                       When
it is determined the disabled employee will not or cannot return to work the
opening will be posted in accordance to Article 6.

 

ARTICLE 6

JOB POSTING

 

Section
1.               Job
openings will be filled based on plantwide seniority and basic qualifications
regardless of shift.

 

(a)                                  New
jobs and vacancies in existing jobs to which no employee has recall rights will
be posted on the plant bulletin board for a period of three (3) working
days.  A general description of each job
responsibility will be shown on the posting.

 

(b)                                 If
the same job opening occurs within a period of thirty (30) days from the first
date of an original job posting, no new posting will be required.  The new job opening will be filled from the
original bidding list.  If there are no
remaining qualified bidders on the original list, the new job opening shall be
posted immediately.  However, a new
posting will be required at the end of the original thirty (30) day job
posting.

 

(c)                                  During
the posting period, eligible employees may bid on the posted jobs by completing
a Bid Slip and submitting it to their Supervisor.  The Company will notify the Union in writing and state the reason
for withdrawing the posting for any job.

 

(d)                                 Employees
will be eligible to bid on higher, equal or lower paying job provided:

 

(1)                                  They
have completed the probationary period.

 

(2)                                  Those
who have bid and been accepted on lower paying jobs under this procedure must
remain in the new department for a period of at least six (6) months before
being eligible to again bid on another job outside their department.  However, these employees may bid upward or
lateral through all labor grades within their department at any time.

 

11

 

(e)                                  Following
the closing of the posting, bidders will be considered and interviewed by the
Personnel Department for each job opening in order of seniority; a Shop
Commiteeperson shall be present.  The
most senior employee who has the basic qualifications to perform the required
work will be promoted to the job within a period of thirty (30) calendar
days.  Unsuccessful bidders will be
notified by the company in writing.  A
copy of the notice of disaward which will include the grounds for disaward will
be given to the Shop Chairperson. 
Bidders may withdraw their bids at any time before starting the new job
by signing a refusal slip provided by the Company, a copy of which will be
given to the Shop Chairperson.

 

(f)                                    Job
openings in a “Training Program” will also be filled under this procedure.

 

(g)                                 Should
an employee with basic qualifications grieve the Company’s selection in filling
the vacancy, the employee must be shown the basic requirements of the job and
have the assistance of the Leadperson and/or Supervisor for a five (5) day
period in order to prove his/her ability to meet the basic qualifications.

 

(h)                                 The
shop chairperson or an appointee will be notified prior to all permanent
transfers and promotions within the Bargaining Unit.

 

ARTICLE 7

TEMPORARY TRANSFERS

 

Section 1.               The Union will be notified at the
time when temporary transfers become necessary.

 

Temporary
work assignments:

(a)                                  Employees
may be temporarily transferred from one department to another for a period not
to exceed six (6) days per month, and provided that during the transfer, the
job he/she left shall not be filled and he/she shall be returned to his/her
permanent job upon completion of temporary assignment or for longer periods of
time if agreed by the Union and the Company.

 

(b)                                 Employees
shall be transferred by seniority, lowest senior person first within the
department to a lower rated job.

 

(c)                                  Employees
shall be transferred by seniority, highest senior person first within the
department to a higher rated job.

 

(d)                                 No
employee will be required to perform work in a higher labor grade on any basis
(temporary or permanent) unless they are paid according to the prevailing rate
of pay on said higher labor grade.  No
employee will be forced or coerced into taking a promotion.

 

(e)                                  No
employee will be required to perform work in a lower labor grade on a temporary
basis at the rate of pay in said lower labor grade.  That is, employees will be guaranteed their former (higher) rate
of pay while working on a temporary transfer in a lower labor grade.

 

12

 

(f)                                    The
shop Committeeperson in the area involved in a transfer will receive a copy of
a transfer notice.  This transfer notice
will state the department, job title and labor grade to which the employee is
being transferred.  The
Shopcommittee-person will be notified immediately by a written transfer notice
in any of the following conditions:

 

A.            Any transfer lasting more than one day.

 

B.            Any change in labor grade at any time.

 

(g)                                 Employees
shall have the privilege of exchanging shifts temporarily by individual
arrangement provided they notify their supervisor in advance and have the
necessary qualifications to perform the work. 
The change must be effected without additional cost or penalty to the Company.  If the period of such exchange of shifts is
in excess of one (1) week, the Company and the Union must mutually agree to
such arrangements.

 

Section 2.               An employee with one (1) year of
seniority or more shall be permitted to use this seniority to exercise shift
preference in writing one week in advance to displace another employee with
less seniority in the same job classification and department on another
shift.  The shift change option is
limited to only one (1) time per year.

 

ARTICLE 8

LAYOFF RECALLS

 

Section
1.

 

(a)                                  All
layoffs, recalls, transfers and promotions within the Bargaining Unit shall be
made on the basis of plantwide seniority provided the employee has the basic
qualifications to perform the required work.

 

(b)                                 When
it becomes necessary to reduce the workforce it shall be done as follows by
laying off all probationary and part-time employees first.

 

(c)                                  The
Company shall, in the event of layoff, provide notification to affected
employees early enough to furnish at least three (3) working days notice to the
Shop Committee and employees affected by any layoff for any period of time, or
pay such employees hourly base rates in lieu of said notice.  This requirement shall not apply to
interruption resulting from any condition beyond the Company’s controls.  All layoffs must commence on the last
working day of the week (Friday).

 

(d)                                 Employees
in classifications affected by layoff will have an option to accept a lay-off
slip stating lack-of-work or bump a junior service employee provided they have
the basic qualifications to perform the work. 
The initial notification mentioned in paragraph (c) will begin the
bumping process and employees must make their bumping decision immediately.  Upon request by the employee, the bumping
decision can be delayed, but not beyond two (2) hours and then is bound by that
choice.

 

13

 

(e)                                  Employees
will have five (5) days in which to demonstrate their ability to perform a job
in case of layoff and recall.  Employee
must be shown basic requirements of job and have assistance of Leadperson
and/or Foreperson for a five (5) day period.

 

(f)                                    There
shall be no upward bumping.

 

(g)                                 In
the event of a layoff, the Shop Chairperson, the members of the Shop Committee
and Company employees who are Executive Officers of the Local Union shall be
accorded top seniority, but they must have the basic qualifications to perform
the available work.

 

(h)                                 Recalls
shall be in reverse order of layoff. 
The most senior employee with basic qualifications on the layoff list
will be recalled for available work. 
Employees recalled to fill a temporary job vacancy may refuse this
assignment without prejudicing their recall rights.

 

(i)                                     Employees
affected by bumping procedure must return to their original job when such
opening occurs.

 

ARTICLE 9

LEAVE OF
ABSENCE-EMERGENCY TIME OFF

 

Section 1.               When the requirements of the
Company will permit, employees upon written request on account of illness or
death in their immediate family or other reasonable cause approved by the
Company, will be granted a leave of absence without pay for a period of not
more than ninety (90) days, which shall be renewable if production requirements
permit.  Any such employees on leave who
engaged in other employment, or who fail to report for work on the expiration
of their leave, will be considered as having quit.  All such leaves of absences shall be granted in writing by the
Company.

 

Section 2.               Employees granted a leave of
absence must prepay all insurance premiums prior to their departure for said
leave.  This prepayment must also be
made in the event the leave is extended by mutual agreement.

 

Section 3.               Any employee who enters the Armed
Forces shall be entitled to a leave of absence, accumulations of seniority and
re-employment rights, in accordance with Federal and State Laws.  In addition, an employee who is a member of
the Military Reserve or National Guard shall be granted leave for annual
training or special tour not to exceed three (3) weeks per calendar year.  Such employee during this period shall
receive the difference in pay, if any, between their normal rate of pay and
wages paid by the service branch.

 

Section 4.               Seniority will be accumulated
during leaves of absences as described above.

 

14

 

Section 5.               Employees may be granted
emergency time off of not more than fourteen (14) calendar days by contacting
the Company by telephone or telegram within three (3) working days giving the
reasons for such request.  Such time off
will be granted for legitimate emergency reasons.  Extensions of emergency time off may be requested under the
provisions of Section 1 of the Article 9.

 

Section 6.               Employees will be granted
pregnancy leave of absence and such leaves will be treated as any other type of
medical leave of absence.

 

ARTICLE 10

CALL TIME

 

Section 1.

 

(a)           Employees reporting for work on their
regular shift without notice from the Company that no work will be available
for them, shall be offered other work for at least four (4) hours or shall be
paid the base rate of their regular job for four (4) hours if there is no other
work for them.  If they refuse the work
offered, they shall forfeit the right to receive reporting pay.

 

(b)                                 Notice
to the employees by the company will be given not later that the end of their
regular shift.

 

(c)                                  This
Article shall not apply where the lack of work is due to conditions beyond the
control of the Company, or in the case of an employee who has been absent and
has not given the Company adequate notice of return to work.

 

ARTICLE 11

COMMITTEE PERSONS,
GRIEVANCE AND

ARBITRATION
PROCEDURE

 

Section 1.               In addition to the Shop
Chairperson, the Union shall have a Committee-Person for each sixty (60)
employees, except that there shall be a minimum of three (3) Committeepersons
on the first shift, two (2) on the second shift and one (1) on the third
shift.  The Union will provide the
Company with a current list of the Committeepersons and their departmental
responsibilities.

 

Section 2.               Time necessarily spent during the
normal working hours (and during scheduled overtime) by the Shop Chairperson,
Committeeperson, grievant and Union employees of the Company on negotiations,
grievances or arbitration hearings will be paid for by the Company.  If in the opinion of the Company such time
becomes unreasonable, the Company will notify and confer with the Union.

 

(a)           The
Company shall pay the Shop Chairperson for all time spent during the normal
working hours (and during scheduled overtime) on Union business including the
handling and investigations of grievances as set out in this Agreement, for
time spent on arbitration hearings and for negotiations.

 

15

 

Section 3.               A grievance is a difference of
opinion between the Company and the Union or an employee involving the
interpretation of application of the terms of this Agreement.

 

Section 4.               Grievances shall be processed as
follows:

 

(a)                                  The
grievance must be submitted within fifteen (15) working days after the employee
and the Union are aware of it.

 

(b)                                 The
Shop Chairperson or Committeeperson and employee shall discuss the grievance
with the immediate Supervisor of the department in which the grievance has
occurred.  If the immediate Supervisor’s
oral answer is not satisfactory, the grievance shall be submitted to Step 1.

 

(c)                                  Step
1:  The grievance shall be reduced to
writing and presented to the employee’s immediate Supervisor by the Union
within three (3) working days from the date of the oral answer.  The Supervisor shall write the answer on the
grievance form and return three (3) copies to the Union Committeeperson before
the end of the third (3rd) working day after receipt of the grievance.  Failing a satisfactory settlement, the Union
will have three (3) working days in which to appeal to the Supervisor for
referral to Step 2.

 

(d)                                 Step
2.  The Union Shop Chairperson shall
meet with the Company representative designated to handle the second step
within three (3) days from the date of the appeal.  The Company will give its written answer within three (3) working
days after the meeting.  Failing a
satisfactory settlement, the Union will have three (3) working days in which to
appeal to the Personnel Manager for referral to Step 3.

 

(e)                                  Step
3:  The President of the Local Union
and/or the Business Agent and/or the International Representative, together
with the Union Shop Committee shall take up the grievance with the Committee of
Management which shall include an executive of the Company.  This meeting will be scheduled within seven
(7) working days after the date of the appeal.

 

The Company will have
five (5) working days following the date of the meeting in which to make a
written disposition of the grievance. 
Failing a satisfactory settlement, the Union will have fourteen (14)
days in which to notify the Company in writing of its intent to arbitrate the
issue.

 

(f)                                    Upon
receipt of the Union’s notice of their intention to arbitrate, a prearbitration
hearing shall be scheduled within thirty (30) working days.  After the pre-arbitration hearing, the
Company General Manager will have ten (10) working days to answer.  If the answer is not satisfactory, the Union
will have thirty (30) days following that answer in which to appeal for
arbitration.  If the Union does not appeal
within said time limit, the grievance shall be considered as being
satisfactorily settled.

 

(g)                                 All
of the above stated time limits may be extended by mutual agreement.

 

16

 

(h)                                 The
Grievant may be present upon request of either party at any of the steps
outlined above.

 

(i)                                     If
grievances are appealed to arbitration, the parties will alternate between the
American Arbitration Association and the State Board of Mediation and
Arbitration.

 

(j)                                     If
submitted to the Connecticut State Board of Mediation and Arbitration, the
parties shall operate under the procedures set forth by said Board, whose
decision shall be final and binding upon the parties.

 

(k)                                  If
submitted to the American Arbitration Association, the parties shall operate
under the procedure set forth by the American Arbitration Association, whose
decision shall be final and binding upon the parties.

 

(l)                                     The
Arbitrator may interpret this agreement and apply it to the particular case
under consideration but shall, however, have no authority to add to, subtract
from or modify the terms of this agreement in any way.

 

(m)                               The
cost of Arbitration shall be shared equally by the Company and the Union.

 

(n)                                 Arbitration
cases involving time study, job evaluation and job standards shall be submitted
only to the American Arbitration Association.

 

(o)                                 The
Company shall not be required to pay back pay for any period in excess of
thirty (30) working days prior to the time a written grievance is properly
filed with the Company.

 

Section 5.               The local Union President and/or
two (2) appointees, and/or a representative of the International UAW
Engineering Department, shall be permitted to enter the plant for the purpose
of investigating, advising or negotiating on grievances.  However, they shall first make known their
intent to the Company and shall receive permission for said visit.  This shall be restricted to entrance during
working hours only.

 

ARTICLE 12

HEALTH AND SAFETY

 

Section 1.

 

(a)                                  The
Company agrees it will provide proper safety devices and sanitary conditions in
the plant.  Failure to do so may be a
matter of grievance.  Furthermore, the
Company agrees that it will pay the full cost of Company mandated safety
equipment.

 

(b)                                 Once
each month starting in February, 1989, at a time to be scheduled by management,
a safety tour between two (2) members of management and two (2) employee
representatives of the Union will make a plant safety tour.  At the end of the tour, unsafe practices and
conditions found in the plant will be listed. 
Appropriate actions will be taken by management to correct unsafe
conditions found. This committee will jointly plan to prevent accidents,
investigate

 

17

 

accidents, review
accident reports, and OSHA compliance. 
Regular meetings will be scheduled to facilitate the promotion of health
and safety in the plant.

 

(c)                                  The
Company will issue and fill out accident forms on all injuries and give the
Shop Committeeperson a copy immediately.

 

Section 2.               The Company shall provide first
aid facilities and a qualified attendant to perform first aid duties.

 

Section 3.               Employees who are injured on the
job can be sent home and receive pay for the balance of their day only if
authorized by written instruction from the Medical Department or the Company
doctor.  The Company will issue a form
to be used in such cases, a copy of which will be given to the employee’s
Foreperson and to the Union.

 

Section 4.               Where possible, employees
sustaining injuries at work, or affected by occupational diseases during the
course of their employment, and who are physically handicapped as a result
thereof, shall be given other suitable employment as may be then available.

 

ARTICLE 13

LEADPERSON’S SCOPE

 

Section 1.               To relay general instructions
from Foreperson to operators with reference to product, operations, tools,
equipment and duties.

 

Section 2.               All matters involving personnel
problems are to be handled by the Forepersons who have full supervisory
authority over all employees in their departments, including Leadpersons.

 

Section 3.               Leadpersons shall not have the
right to hire, fire, or recommend disciplinary action or recommend promotions
or demotions.

 

ARTICLE 14

BEREAVEMENT PAY

 

Section 1.               Employees (including probationary)
shall be entitled to three (3) working days off with pay in the event of a
death within the “immediate family.”

 

Section 2.               Immediate family shall be limited
to spouse, child, mother, father, sister, brother, grandparent, mother or
father-in-law, brother or sister-in-law, daughter or son-in-law, legal guardian
or stepchild.

 

18

 

ARTICLE 15

JURY DUTY

 

Section 1.               Employees who have completed
their probationary period, and who are called and report for Jury Duty on days
they would have otherwise worked for the Company, shall be paid regular wages
for thirty (30) days.  Should Jury Duty
continue past 30 days, the employee shall be paid the difference between the
payment they receive for such service and the amount calculated by multiplying
eight (8) times their regular hourly rate for each day involved limited,
however, to Monday through Friday.

 

Section 2.               In order to receive Jury Duty
make-up payment, the employees must give Management prior notice of said Duty
and furnish evidence that they actually performed such service, showing the
amount of payment received accordingly. 
These provisions are not applicable to employees who, without being
called, volunteer for Jury Duty.

 

ARTCILE 16

NOTICE OF
DISCHARGE

 

Section 1.               The Company agrees to give
immediate written notice to the Shop Committeeperson and the employee involved
of all discharges and suspensions made within the unit, except in emergencies.

 

Section 2.               The Chairperson and/or
Committeeperson shall be present at time of employee discharge and suspension
except in emergencies.

 

Section 3.               If an employee is discharged or
suspended, he/she shall have the right to a hearing within twenty-four (24)
hours after suspension or discharge. 
He/she shall be represented by the Shop Chairperson and Committeeperson
and/or Business Agent and/or International Representative.

 

Section 4.               When employees are discharged or
suspended and file a complaint claiming that they were unjustly discharged or
suspended, the Shop Committeeperson may invoke the grievance procedure at the
third step within (5) days after the discharge or suspension.

 

Section 5.               If, upon appeal, any discharge or
suspension shall be found to be unfair or discriminatory, the employee will be
reinstated with seniority rights unimpaired and will be given retroactive pay
for all time lost due to the discharge or suspension, less the earnings he/she
may have received from gainful employment or unemployment insurance obtained in
the interim.

 

ARTICLE 17

UNION COOPERATION

 

The Union agrees that in
exchange for a fair day’s pay for a fair day’s work, it must maintain a high
level of productivity.  The Union and
its members will cooperate in attaining such a level of productivity as is consistent
with the health and welfare of its members. 
The Union and its members will seek to assist in effectuating economies
and the utilization of improved methods and machinery.

 

19

 

ARTICLE 18

MANAGEMENT

 

It is understood and
agreed that with the exception of the specific provisions of this contract,
nothing in this Agreement shall be considered to limit or restrict the Company
in the exercise of the customary functions of Management.

 

ARTICLE 19

NO STRIKES OR
LOCKOUTS

 

Section 1.               The Union agrees that there shall
be no strikes during the term of this Agreement on any issues which may be the
subject of arbitration or on which the contract is silent.

 

Section 2.               The Company agrees that there
shall be no lockouts during the terms of this Agreement on any issues which may
be the subject of arbitration or on which the contract is silent.

 

ARTICLE 20

PAID SICK AND/OR

PERSONAL LEAVE
ALLOWANCE

 

Section 1.               Each employee, upon vacation
eligibility date, shall be credited with six (6) days (48 hours) paid sick and
or personal leave allowance in accordance with the following provisions:

 

(a)           Employee must have worked at least
1000 hours in the prior twelve (12) month period.  The period for determining hours worked shall be from
August 1st of the prior year through July 31st of the current year.

 

(b)           In the event an employee worked less
than 1000 hours in said period, paid sick and/or personal leave allowance will
be credited in the same proportion as the hours worked are to 1000.  New employees must have worked at least 1000
hours in order to be eligible for paid sick and/or personal leave
allowance.  Employees terminated for any
reason shall receive a pro-rated sick or personal pay.

 

Section 2.               Any employee with credited sick
and/or personal leave allowance, as provided in Section 1 above, may use such
allowance during the following twelve (12) month period for illness (when not
receiving accident and health insurance benefits), or personal reasons, but
provided that absence from work has been excused, is for not less than four (4)
continuous hours and has at least four (4) hours paid sick and/or personal
leave allowance credit remaining. 
Employees shall notify the Company when electing to take personal days
off.

 

Section 3.               Paid sick and/or personal leave
allowance shall be computed on the basis of the employee’s regular rate of pay
as of the day of absence and shall be paid on the pay check for said period so
long as application for same has been submitted on a timely basis.  Application for payment shall be made
through the employee’s supervisor on forms so provided.

 

20

 

Section 4.               Unused sick and/or personal leave
allowance, at the time of the employee’s next eligibility date, will be paid to
the employee in a lump sum calculated on the basis of the employee’s regular
rate of pay at such time.

 

ARTICLE 21

NON-COVERED
EMPLOYEES

 

Section 1.               Persons excluded from the
Bargaining Unit shall not perform work of the type customarily performed by
employees of the Bargaining Unit, except in the following situations:

 

(a)           In emergencies when employees are not
available.

 

(b)           In the bona fide instruction or
training of employees.

 

(c)           Duties of an experimental nature or
in the case of vendors or warrantees, tryouts.

 

Section 2.               When it is determined that
bargaining Unit work has been performed by a non-bargaining unit employee in
violation of Section 1, the employee in the appropriate job description with
the least amount of accumulated overtime hours will receive pay at the
applicable rate for the hours of work performed.

 

Section 3.               The Company shall notify the
Union Chairperson and/or the Committee person in the section affected prior to
the assignment of any persons excluded from the Bargaining Unit to any of the
situations listed in Section 1.

 

Section 4.               Any grievance involving
interpretation of this Article may be submitted in writing directly to Step 3.

 

ARTICLE 22

GENERAL PROVISIONS

 

Section 1.               The Company shall notify the
Union of its supervisory representatives; the Union shall notify the Company of
its Committee members operating under the Contract.

 

Section 2.               Employees will be paid equal pay
for equal work.

 

Section 3.               The Company and the Union agree
that they will not discriminate against any employee or applicant for
employment because of age, race, color, religious creed, sex, national origin,
ancestry or physical disability, disabled veterans, and veterans of the Vietnam
era.

 

Section 4.               Part time employees shall have
seniority only among other part-time employees, and shall share in monetary
benefits under the contract on a prorated basis only, with the exception of
general wage rates which they shall share fully.

 

21

 

Section 5.               Officers, Stewards and Committee
persons of the Union shall be permitted to leave work in connection with
official Union business whenever authorized by the President or the Business
Agent of the Amalgamated Local Union, and members elected or appointed to
official Union conventions or conferences, or authorized by the Local Union to
attend any official Union functions shall be permitted to leave work for such
purposes provided permission shall be obtained in advance from the Company,
which permission will not unreasonably be withheld and provided further that
the Company shall not be liable for any pay during the period of absence.

 

Section 6.               Except as provided herein, it is
understood between the parties that there shall be no duplication of
Compensation for the same hours for any reason.

 

Section 7.               The Company and the Union agree
to institute a mutually agreeable training or apprenticeship program.

 

Section 8.               The Company shall print and
distribute copies of this contract to all Bargaining Unit employees within one
hundred twenty (120) days of the effective date of this Agreement.

 

Section 9.               The Company will offer
educational assistance to any employee with three or more years of service
under the following conditions:

 

(a)                                  Courses
must be job related and approved by Management prior to starting the program of
instruction for which payment will be made.

 

(b)                                 Courses
must be successfully passed prior to payment.

 

(c)                                  There
will be a semester limitation of assistance not to exceed $200 per individual,
effective February 1, 1992.

 

Section 10.             Bargaining unit work within the
plant shall not be sub-contracted when the work is normally and usually
performed by bargaining unit employees with appropriate equipment and qualified
employees are available, except where circumstances demand or economics warrant
it.  If such decision is based on cost,
the Company will notify and discuss with the Union as soon as possible the
reasons why it believes such action to be necessary, so the parties may explore
alternatives to such transfer of work.

 

ARTICLE 23

INSURANCE PROGRAM

 

Section 1.               Health Maintenance Organization

 

Each employee covered by
this Agreement shall have their hospital, medical, surgical, and related
insurance coverage under the Health Net Charter HMO with formulary.

 

Section 2.  The Company agrees to provide insurance
coverage as outlined in the Health Net plan description as provided to all
employees upon enrollment.  Details are
explained in the insurance contract.

 

22

 

Section 3.               Employee Contributions

 

Effective 3/1/02 the
employee contribution will be $28.00 per week.

 

Effective 3/1/03 the
employee contribution will be $28.00 per week plus 50% of the premium increase
up to a maximum of $5.00 from the prior contribution.

 

Effective 3/1/04 the
employee contribution will be the existing contribution plus 50% of the premium
increase up to a maximum of $5.00 from the prior contribution.

 

If during the life
of the contract the projected cost of premium increases would result in an
increase of more than $5.00 above the previous year’s employee contribution,
the Company and the Union will meet to develop an alternate plan which will not
result in an increase in Company cost. 
If the parties agree on a plan which results in a lesser premium cost
the parties will share the savings.

 

If the parties do not
agree on an alternate plan, the Company and the employee will share the
increased cost of the premium on a 50%/50% basis.

 

Premium Conversion

 

Current tax laws allow us
to provide you with a tax-advantaged way to pay your share of Medical
premiums.  You may elect to contribute
toward the cost of your coverage on a pre-tax basis.  That means your premiums will be deducted from your paycheck
before Social Security, federal, and state taxes are taken out.  This lowers your taxable income and, in
effect, lowers your share of the premiums.

 

Section 4.               Accident and Sickness weekly
benefits for employees with accidents or sickness will be paid as follows:

 

2/1/02 - $245 per week

2/1/03 - $250 per
week

2/1/04 - $255 per week

 

Section 5.               The Company shall pay $30
per month per employee for dental insurance per the Local 376, UAW Dental Plan
effective February 1, 1996.

 

Section 6.               Employees who retire early may
continue their life and/or medical insurance at group rates until age
sixty-five (65).  In order to receive
retiree life paid for by the company and $50/month towards retiree medical
and/or Medicare Part B Reimbursement paid for by the Company at age sixty-five
(65), the employee must elect to carry the retiree life and/or medical
insurance until age sixty-five (65).

 

Section 7.               Employees who retired after
February 1, 1993 and before February 1, 1996 will be entitled to have
Medicare Part B paid for by the Company when they reach age sixty-five (65).  Employees entitled to receive Medicare Part B
premiums should submit a statement to the Personnel Department every six (6)
months to receive reimbursement.

 

23

 

Employees who retire on
or after 2/1/96 are entitled to $50 per month paid for by the Company toward
both medical and/or Medicare Part B reimbursement when they reach age
sixty-five (65).

 

Section 8.               The Company will provide Life
Insurance Coverage and Accidental Death and Dismemberment Coverage in the
following amounts:

 

February 1, 2002 -
$19,000

February 1, 2003 -
$20,000

February 1, 2004 -
$21,000

 

Section 9.               The Pension Plan Monthly Benefit
shall be increased to $23.25 for employees who retire after February 1,
2002.

 

Section 10.             Survivor Income Benefit Insurance
- If you should die the Company shall pay a monthly benefit of $100 to your
spouse commencing on the first day of the calendar month following the date of
death and on the first day of each month thereafter until 24 such monthly
payments have been made. No survivor Income Benefit shall be subject in any
manner to assignment, pledge, attachment of encumbrance of any kind, nor
subject to the debts or liability of any eligible survivor except as required
by applicable law.

 

Section 11.             Prescription Safety Glasses

 

The following
prescription safety glass program is in effect for employees only:

 

	
  Expenses Covered

  
	
   

  	
   

  	
   

  
	
  Every 12 months:

  	
  Up to:

  	
   

  
	
   

  	
   

  	
   

  
	
  Lenses (per lens)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Single
  Vision

  	
  $

  	
  10.00

  	
   

  
	
   

  	
   

  	
   

  
	
  Bifocal

  	
  $

  	
  15.00

  	
   

  
	
   

  	
   

  	
   

  
	
  Trifocal

  	
  $

  	
  20.00

  	
   

  
	
   

  	
   

  	
   

  
	
  Contact
  Lens

  	
  $

  	
  15.00

  	
   

  
	
   

  	
   

  	
   

  
	
  Every
  24 months:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Frames

  	
  $

  	
  14.00

  	
   

  
					

 

Section 12.             Provisions Applicable to Coverage if you
cease active work because of certain specified reasons -If you cease
work because of non-occupational disability, all your coverage except insurance
for Death or Dismemberment by Accidental means and Weekly Accident and Sickness
insurance will be continued during absence due to such disability up to a
maximum of 18 months from the end of the calendar month in which you last
worked. This provision runs concurrently with your COBRA Rights.

 

Section 13.             Layoff or Leave of Absence -Your insurance
for Death or Dismemberment by Accidental Means and your Weekly Accident and
Sickness Insurance will terminate on the date you cease active work, and all
your other coverage will be

 

24

 

continued during such lay-off up to the end of the calendar month in
which you cease work. If your lay-off continues beyond that period, you may
elect on or before the 15th day of the next calendar month to
continue all of your insurance other than your insurance for Death or
Dismemberment by Accidental means and your Weekly Accident and Sickness
insurance for not more than the next 18 months by paying the full cost of the
coverage thus continued for you. Failure to make such contribution on or before
the 15th day of any month will terminate such insurance at the end
of the last month for which payment has been made. If your are on lay-off, this
provision will run concurrently with your COBRA rights under COBRA.

 

Section 14.             What Happens to Your Insurance at Retirement
- All employees retiring under the Pension Plan, upon attaining their normal
retirement date, will receive $4,000 of life insurance.

 

If an employee retires early
under the Pension Plan and pays the required contributions for the amount of
life insurance he is entitled to as a retiree, until attainment of age 65, the
Company will then continue this amount of life insurance at no cost to the
employee.

 

ARTICLE 24

PLANT CLOSURE
AGREEMENT

 

An employee whose
employment is terminated as a direct result of the plant being closed shall
receive:

 

(a)           Separation pay in an amount equal to
$200 for each year of continuous service;

 

(b)           Any vacation benefits accrued but not
yet paid, and

 

(c)                                  The
continuation of the hospital, medical, surgical, dental and life insurance in
effect at the time of their termination for four (4) months.

 

ARTICLE 25

TERMINATION DATE

 

This Agreement shall
commence February 1, 2002 and terminate midnight, January 31, 2005.

 

This Agreement shall be
in full force and effect for a period of three (3) years from the date hereof
and for additional periods of one (1) year thereafter except that should either
party hereto intend to terminate this Agreement or modify any portion of any of
the terms hereof, it shall give written notice by certified mail to the other
party not less than sixty (60) no more than seventy-five (75) days prior to its
expiration date.

 

Should notice of
termination be given by either party as herein provided, this Contract shall
terminate as of its expiration date.

 

Should either party
hereto give the other party such written notice requesting amendment or
modification of this Agreement, such notice shall be specific as to the amendments
or modifications proposed.  Negotiations
on such proposed amendments or modifications

 

25

 

shall begin not later
than twenty (20) days after the date of mailing of such notice.  During such negotiation, this Agreement
shall remain in full force and effect except that should negotiations extend
beyond the termination date then either party, upon ten (10) days notice to the
other in writing and by certified mail may terminate the Contract in which
event this Agreement shall terminate on the tenth day after mailing of such
notice.

 

Notice shall be in
writing and shall be sent by certified mail addressed, if to the Union, to the
International Union, United Automobile, Aerospace and Agricultural Implement
Workers or America, UAW, and Amalgamated Local 376, 30 Elmwood Court,
Newington, Connecticut and if to the Company, to The Heim Bearings Division of
Roller Bearing Company, 60 Round Hill Road, Fairfield, Connecticut, 06430.

 

 

IN WITNESS WHEREOF, the
parties hereto have caused their names to be subscribed by their duly
authorized officers and representatives this

 

INTERNATIONAL UNION,

UNITED AUTOMOBILE,
AEROSPACE

AND AGRICULTURAL
IMPLEMENT

WORKERS OF AMERICA, UAW

AND AMALGAMATED LOCAL 376

 

 

	
   

  	
   

  
	
  Wendell Askew, Chairperson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Antonio Pinto,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Marylou Lezinski,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Russell See, President,
  UAW 376

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph Calvo,
  International Rep. UAW

  THE HEIM BEARINGS DIVISION OF

  RBC BEARINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald Lemansky,
  General Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pam Kaczer, Human
  Resources Manager

  	
   

  

 

26

 

MEMORANDUM OF UNDERSTANDING

 

RBC HEIM UAW BARGAINING AGREEMENT
LANGUAGE

 

RE:         TEMPORARY
EMPLOYEES

 

The Company will have the
ability to have no more than four temporary employees for up to 10 days during
the last two weeks of a production month or the first week of a following
production month to work on wrap and pack. 
Temporary employees will only be used on wrap and pack and will not be
used on overtime unless all bargaining unit employees have been offered the
overtime opportunity.  The temporary
wrap and pack jobs will be first be offered to employees on the layoff list who
have expressed interest by signing up for the temporary assignment and will be
recalled in accordance with their seniority rights.  Employees on layoff who are recalled to temporary positions will
receive pay rates as provided for in the contract wage scale.

 

In the event of extreme
circumstances, when the need for additional temporary employees may arise, the
Company will notify and discuss with the Union to reach an agreement.

 

No employee hired as a
temporary employee will be eligible for any medical, dental, disability, life
insurance or pension benefits.  Nor will
they be eligible for any holiday, sick or vacation pay benefits.

 

INTERNATIONAL UNION,

UNITED AUTOMOBILE,
AEROSPACE

AND AGRICULTURAL
IMPLEMENT

WORKERS OF AMERICA, UAW

AND AMALGAMATED LOCAL 376

 

 

	
   

  	
   

  
	
  Wendell Askew,
  Chairperson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Antonio Pinto, Committee
  person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Marylou Lezinski,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Russell See, President,
  UAW 376

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph Calvo,
  International Rep. UAW

  THE HEIM BEARINGS DIVISION OF

  RBC BEARINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald Lemansky,
  General Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pam Kaczer, Human
  Resources Manager

  	
   

  

 

27

 

MEMORANDUM OF UNDERSTANDING

 

The Company and the Union
will establish a committee to review and evaluate work which has been
subcontracted from the Fairfield facility and consider attempting to bring back
the work if possible.  The committee
will consist of 3 representatives appointed by the Union and 2 to be appointed
by the Company.  The Company
representatives will be persons who have appropriate authority.

 

The committee will meet
on or before March 31 for a period of three months.

 

The Company agrees to
comply with the language in Article 22, Section 10.

 

 

INTERNATIONAL UNION,

UNITED AUTOMOBILE,
AEROSPACE

AND AGRICULTURAL
IMPLEMENT

WORKERS OF AMERICA, UAW

AND AMALGAMATED LOCAL 376

 

 

	
   

  	
   

  
	
  Wendell Askew,
  Chairperson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Antonio Pinto,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Marylou Lezinski,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Russell See, President,
  UAW 376

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph Calvo,
  International Rep. UAW

  THE HEIM BEARINGS DIVISION OF

  RBC BEARINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald Lemansky,
  General Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pam Kaczer, Human
  Resources Manager

  	
   

  

 

28

 

MEMORANDUM OF UNDERSTANDING

 

Direct Deposit

 

Employees may have their
wages directly deposited to any participating financial institution by
enrolling between March 1 through March 31 of a calendar year.

 

 

INTERNATIONAL UNION,

UNITED AUTOMOBILE,
AEROSPACE

AND AGRICULTURAL
IMPLEMENT

WORKERS OF AMERICA, UAW

AND AMALGAMATED LOCAL 376

 

 

	
   

  	
   

  
	
  Wendell Askew, Chairperson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Antonio Pinto,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Marylou Lezinski,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Russell See, President,
  UAW 376

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph Calvo,
  International Rep. UAW

  	
   

  
	
  THE HEIM BEARINGS
  DIVISION OF

  	
   

  
	
  RBC BEARINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald Lemansky,
  General Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pam Kaczer, Human
  Resources Manager

  	
   

  

 

29

 

MEMORANDUM OF UNDERSTANDING

 

The Company in
conjunction with the Union will investigate and determine if it is feasible to
create a new smoking area.

 

 

INTERNATIONAL UNION,

UNITED AUTOMOBILE,
AEROSPACE

AND AGRICULTURAL
IMPLEMENT

WORKERS OF AMERICA, UAW

AND AMALGAMATED LOCAL 376

 

 

	
   

  	
   

  
	
  Wendell Askew,
  Chairperson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Antonio Pinto,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Marylou Lezinski,
  Committee person

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Russell See, President,
  UAW 376

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph Calvo,
  International Rep. UAW

  THE HEIM BEARINGS DIVISION OF

  RBC BEARINGS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald Lemansky,
  General Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pam Kaczer, Human
  Resources Manager

  	
   

  

 

30

 

APPENDIX A

 

WAGE SCHEDULE 2002

 

(HIRED BEFORE 2/1/1996)

 

	
  February 4, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 5, 2002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.90% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  10 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

31

 

WAGE SCHEDULE 2002

 

(HIRED AFTER 2/1/1996)

 

	
  February 4, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 5, 2002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.90% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  5 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

32

 

WAGE SCHEDULE 2003

 

(HIRED BEFORE 2/1/1996)

 

	
  February 3, 2003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 4, 2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.75% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  5 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

33

 

WAGE SCHEDULE 2003

 

(HIRED BEFORE 2/1/1996)

 

 

	
  February 3, 2003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 4, 2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.75% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  5 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

34

 

WAGE SCHEDULE 2004

 

(HIRED BEFORE 2/1/1996)

 

	
  February 2, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 2, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.90% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  5 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

35

 

WAGE SCHEDULE 2004

 

(HIRED BEFORE 2/1/1996)

 

	
  February 2, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August 2, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.90% GENERAL
  INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  LABOR GRADE

  	
   

  	
  BASE HIRE

  	
   

  	
  RATE

  MAXIMUM

  	
   

  	
  5 Cents
  COLA

  ADDED TO

  HIRE*MAXIMUM

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

36

 

STATEMENT OF EEO
POLICY

 

It is the policy of Heim Bearings
and the UAW to uphold and maintain a continuing nondiscriminatory “Equal
Employment Opportunity” policy.  Our
goal shall be a realistic attempt to insure genuine equal opportunity, in every
sense of its meaning, in every operational area.

 

“Equal Employment
Opportunity” will be maintained for all present employees, as well as
applicants applying for positions with this company, through the following
Corporation policy:  “It is the policy
through a positive and continuing program, to provide equal opportunity in
employment for all qualified persons, to prohibit discrimination in employment
because of age, race, creed, color, sex, handicap, national origin, disabled
veterans and veterans of the Vietnam era, and to promote the full realization
of equal employment opportunity.  The
program also extends to and encompasses the providing of equal opportunity in
employment for all qualified personnel without regard to politics or marital
status.

 

It is our intent to
incorporate a strong EEO policy throughout virtually every personnel activity
or function to assure full utilization of all available human resources and to
review these policies on a semi-annual basis.”

 

37

 

EXHIBIT B

 

Summary Plan
Description

 

HEIM BEARINGS

 

Hourly Payroll
Retirement Plan

 

A Defined Benefit Plan
for Hourly Employees of Heim Bearings represented by the International Union,
United Automobile Aerospace and Agricultural Implement Workers of America,
U.A.W., and Amalgamated Local 376, U.A.W.

 

Amended Effective
February 1, 1992

 

38

 

HEIM BEARINGS

 

HOURLY PAYROLL
RETIREMENT PLAN

 

Introduction

 

This contract describes
the provisions of the Heim Bearings Hourly Payroll Retirement Income Plan, which
is a Defined Benefit Pension Plan, established on August 15, 1956, for the
employees of Heim on its hourly payroll. 
The Plan was established primarily to provide these employees with  retirement income in addition to their
Social Security benefits.  The Plan
offers retirement or total disability, and can provide benefits to their
surviving spouses or other beneficiaries.

 

The retirement benefits
provided under this Plan are funded through a Trust Agreement held with the
Frank Russell Company, 909 A Street, Tacoma, WA 98402, (206) 572-2282.  The Paying Agent is and the payments are
made through State Street Bank, P.O. Box 1389, Boston, MA 02104.

 

This contract represents
your “Summary Plan Description” (SPD) and is only a summary of the legal text
of the Plan.  In the event of any
discrepancy between the language of this summary and the language of the legal
text, the language in the legal text shall govern.  You should read this summary carefully in order to develop a
thorough understanding of the basic concepts of your retirement plan.  If, after reading the summary you have any
questions concerning your Plan, you should contact your Human Resource Office.

 

This booklet is prepared
in a question and answer format; the questions answered here are the ones most
frequently asked of our Human Resource Office.

 

Special Terms

 

Certain terms used
throughout this booklet have special meanings for the purpose of t his
Plan.  The second section of the legal
text of the Plan defines these terms in detail.

 

Generally, a term which
begins with a capital letter in this booklet has a specialized meaning.  Some of the terms to watch for in the
summary are:

 

Actual Retirement Date –
the date on which an employee actually retires from the Company.

 

Company – Heim Bearings.

 

Normal Retirement Date –
the first day of the month in which the employee attains or would attain his 65th
birthday.

 

Board – The Joint Board
of Administration

 

Important

 

This summary describes
the Plan as amended effective February 1, 1992.  Employees who were terminated prior to that date may not be
eligible for certain of the benefits or payment options described in this
summary.  Those former employees should
contact the Human Resource Office to see if their situation could allow them to
be covered by any of the Plan’s benefits.

 

This summary does not
constitute a contract of employment nor does it in any way influence incidence
of employment.

 

39

 

	
  Details about:

  	
   

  
	
  May be found on
  page:

  	
   

  
	
  Eligibility
  to Participate

  And effective date of participation

  	
  4

  
	
  Amount
  of Benefits

  	
  4

  
	
  Normal Retirement

  	
  5

  
	
  Early
  Retirement

  	
  6

  
	
  Disability
  Retirement

  	
  7

  
	
  Form
  of Payments

  	
  8

  
	
  Benefits in the
  Event of Death

  	
  11

  
	
  Vesting
  and Credited Service

  	
  13

  
	
  Loss of
  Benefits

  	
  15

  
	
  Claim
  Procedure

  	
  17

  
	
  Other Facts

  	
  22

  
	
  Contributions
  to the Plan

  	
  22

  
	
  Administration

  	
  23

  
	
  Plan
  Benefits Insured

  	
  23

  
	
  Names and Addresses

  	
  24

  
	
  ERISA

  	
  24

  
	
  Table I Early Retirement Factors

  	
  27

  
	
  Table II 10 Year Certain
  Factors

  	
  28

  

 

HEIM HOURLY PAYROLL

RETIREMENT
INCOME PLAN

 

Does this Plan apply to me?

 

This Plan covers all
employees on Heim’s hourly payroll who are members of the Union.  If you were such an employee on or after
August 15, 1956, you are automatically a participant in this plan.

 

When
do I become eligible to receive retirement benefits?

 

The Plan provides for the
payment of retirement benefits at age 65, your normal retirement date.  If a participant continues to work beyond
age 65, he will continue to accrue pension credit for service.

 

You may also retire as
early as age 55, if you have at least 10 years of Vesting Service (described on
page 13.)  In addition, if you have at
least 10 years of Vesting Service and you become totally and permanently
disabled, you will be entitled to receive a disability benefit.

 

How much
can I receive?

 

At Normal Retirement

 

This is the retirement
benefit normally provided to an employee who reaches age 65.  To figure out the amount of the normal
retirement benefit you will receive, multiply your years and fractions of years
of Credited Service (described on page 15) by $23.25*.  This amount is the monthly retirement
benefit you would receive as an unmarried employee retiring form active
employment, or a married employee if your spouse elected not to receive the
Joint and Survivor Benefit (see Joint and Survivor Benefit on page 8.)

 

Example:    
Your Age = 65

Your Credited
Service = 20 years

 

Effective 2/1/02 the
benefit was increased to $23.25

 

40

 

	
  Per Month
  Benefit  

  	
  X

  	
          Credited
  Service = Your Age 65 Monthly Lifetime Only Benefit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $23.25

  	
  X

  	
  20 years =

  	
  $465.00

  	
   

  	
   

  	
   

  

 

If you are married on
your Normal Retirement Date, you will automatically receive the Joint and
Survivor Benefit unless your spouse waives their right to this benefit.

 

Early Retirement
Benefit

 

If you have at least 10
years of Vesting Service and you are at least 55 years old but not yet 65, you
may take early retirement by submitting a retirement application (obtained from
the Human Resource Office) to the Company. 
Your early retirement date will be the first day of the month you select
to take early retirement.  To figure
your early retirement benefit, if you an unmarried employee, multiply your
years and fractions of years of Credited Service you will have as of your early
retirement date by $23.25 and then reduce this figure by one-half percent
(1/2%) for each month by which your early retirement date precedes your Norman
Retirement Date.

 

Example:  Your Age = 62

   Your Credited Service

 

	
  Per Month Benefit

  	
   

  	
  Credited
  Service

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  23.25

  	
   

  	
  20 Years

  	
   

  
					

 

	
  Early Retirement

  Factor

  (from Table 1)

  	
   

  	
  Your Age 62

  Lifetime Only

  Monthly Benefit__

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  82

  	
  %

  	
  $

  	
  381.30

  	
   

  
					

 

If you are married on
your early retirement date, your early retirement benefit will be computed in
accordance with the Joint and  Survivor
Benefit unless your spouse waives their right to receive this benefit.

 

If you do not wish to
have your early retirement benefits begin right away, you may specify the date
on which you may want the benefits to begin (up to your Normal Retirement
Date); your early retirement benefits would then be increased by one-half
percent (1/2%) for each month (six percent (6%) per year) that you defer
receipt of your benefits (See Table 1).

 

Disability Benefit

 

If you have at least 10
years of Vesting Service, are totally and permanently disabled, and the Social
Security Administration has approved your application for disability benefits
under the Federal Social  Security Act,
you will be entitled to receive a Disability Benefit.  Your Disability Benefit will be computed in the same was as if
you were unmarried and about to retire — your years of Credited Service times
$23.25.  You should note that the Joint
and Survivor Benefits does not apply to Disability Benefits payable to you
before you attain age 55.  In addition,
you will not receive any additional Credited Service while Disability Benefits
are being paid.

 

You are considered to be
“totally and permanently disabled” when you have demonstrated that you are
unable to engage in any regular employment for the Company and the Social
Security Administration has issued a determination letter indicating that by
reason of your disability you are entitled to receive disability benefits under
the Federal  Social Security Act.  Also you will not be considered totally
disabled if your disability is the result of chronic alcoholism, addiction to
narcotics, intentionally self-inflicted injury or the commission of any act
which results in the conviction of a felony.

 

41

 

Once you start receiving
Disability Benefits you may be required to take a physical examination as often
as twice a year to prove you are still permanently disabled.  If you fail to take the examination as
requested by the Company, your Disability Benefits will stop and will not begin
again until you do take the physical and reapply for benefits.  Disability Benefits will also be stopped if
it is found you have recovered or that you have taken another job for wage or
profit.  If your total disability
continues until you reach age 65, your Disability Benefits will stop at that
time and you will begin receiving the Normal Retirement Benefit.

 

If your disability is
overcome and your return to work at Heim, you will not lose any of your
previous Credited Service.  Also, you
start adding additional Credited Service when you start working for the Company
again.

 

How are benefits paid?

 

The Plan provides for
your choice of the following monthly payment forms:

 

Joint and Survivor
Benefits

Single Life Benefit

Joint Annuitant Benefit

Ten Year Certain and Life
Option

Post-Retirement Joint and
Survivor Benefit

 

The Joint and Survivor
Benefit is the usual form of benefit paid to a married participant upon his
retirement.  If you should die after
retirement, this form of retirement benefit provides a continuing benefit for
your spouse.

 

If you are married as of
the date you retire (whether you retire on your Late Retirement Date, Normal
Retirement Date, or take early retirement), you will automatically receive the
Joint and Survivor Benefit unless your spouse waives their right to it.  The Joint and Survivor Benefit will be 85%
of your monthly retirement benefit and your spouse would then be entitled to
55% of that reduced amount.

 

Example:   Age of
Employee = 65

Age of Spouse = 65

Credited Service = 20 years

 

	
  Your
  Lifetime

  Only Benefit

  	
   

  	
  Joint and Survivor

  Benefit Factor

  	
   

  	
  Your Age 65

  Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  465.00

  	
   

  	
  X 85%

  	
   

  	
  $

  	
  395.25

  	
   

  
								

 

You would receive $395.25
per month from the pension plan for the rest of your life.  After your death, your spouse would receive
fifty-five percent (55%) or  $217.39 per
month for the rest of his/her life.  The
reason for your benefit reduction is to cover the cost of providing for the
continuing benefit to your spouse.

 

You may elect not to
receive this benefit.  If you wish to
make this election, you and your spouse must sign the Joint and survivor Benefit
form which will be provided to you by the Personnel Office and this election
may be made at any time after you become eligible to retire but before your
Actual Retirement Date.  If you elect to
receive the Single Life Benefit as described below in place of the Joint and
Survivor Benefit, your normal retirement benefit will not be reduced.   However, upon your death, your retirement
benefits will cease and your surviving spouse would not be entitled to any
benefits from the Plan.  Prior to your
becoming eligible for normal retirement, you will be contacted by the Company
and reminded about the Joint and Survivor Benefit and of your right to elect
not to receive it.

 

42

 

If you take no action,
the Joint and survivor Benefit will automatically be paid to you.  If you are considering early retirement, the
Joint and survivor Benefit information will be provided to you by the Human
Resources Office upon your request.

 

Single Life Benefit

 

A.           This
is the form of retirement benefit which will be payable to you if:

 

1.               You
are unmarried at your retirement, or

2.               You
have elected not to receive the Joint and Survivor Benefit, or

3.               You
have elected not to designate a Joint Annuitant under the Joint Annuitant
Benefit as described below, or 

4.               You
have not elected the 10 Year Certain Option.

 

B.             The
Single Life Benefit, as its name indicates, will be paid to you for your
lifetime and will be discontinued at the time of your death.

 

Joint Annuitant Benefit

 

This optional form of
retirement benefit provided for a continuing portion of your retirement benefit
to be paid to another person or if you are married but do not wish to provide
the Joint and Survivor Benefit to your spouse, you may designate any person to
receive a benefit upon your death after normal retirement.  Please note, however, that this option is
only available to you if you retire at or after  your Normal Retirement Date (age 65).  In addition, the Company must be notified and this option must be
applied for no later than two (2) years before you reach your Normal Retirement
Date.  If this election is filed after
the date indicated above, then satisfactory evidence of your good health must
be furnished at the time you file for this option.

 

The Joint Annuitant
Benefit works in the same way as the Joint and Survivor Benefit.  You will receive a lower monthly benefit
during our retirement and upon your death, the person you name, who is called
your “Designated Beneficiary”, will receive fifty five percent (55%) of your
reduced benefit for his or her lifetime upon your death.

 

If you decide to elect
the Joint Annuitant Benefit, you cannot also provide a Joint and Survivor
Benefit for your spouse nor can you have the Single Life Benefit.  You may, however, elect to provide for the
10 Year Certain Option, described below, and in addition to a Joint Annuitant
or Joint and Survivor Benefit.

 

10 Year Certain and Life
Option

 

This optional form of
retirement benefit provides that you may take a reduced monthly benefit which
would be paid to you for the rest of your life, with the further provision that
if you die before receiving 120 monthly retirement benefits, the balance of any
remaining monthly benefits would be paid to your Designated Beneficiary.  Thus, if you die 12 months after you retire,
another 108 monthly benefit payments will be 
made on your account to your beneficiary.  Please note, however, this option is only available to you if you
retire at or after your Normal Retirement Date.  In addition, the Company must be notified and this option must be
applied for no later than two (2) years before you reach your normal retirement
date.  If this election is filled after
the date indicated above, then satisfactory evidence of your good health must
be furnished at the time you file for this option.

 

What
Happens in the Event of My Death?

 

Death Prior to Retirement

 

43

 

If you have completed
five (5) or more years of Vesting Service and you should die, your surviving spouse
will receive a Pre-Retirement Joint and Survivor Benefit.  This benefit would be payable immediately if
you are age 55 and have (10) years of credited service or, this benefit will be
payable at the time you would have attained age 55 if you had lived.  At the time of your death, your benefit will
be calculated as if you had decided to retire immediately before our death and
were to receive the Post-Retirement Joint and Survivor Benefit.

 

Example:  Age Employee = 64

Age Spouse      = 64

Your Credited Service =
20 years

 

	
  Your Benefit

  (Lifetime Only)

  	
   

  	
   

  	
   

  	
  Early
  Retirement Factor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  325.00

  	
   

  	
  X

  	
   

  	
  94%    =
  $305.50

  	
   

  
							

 

	
  Spouse Benefit

  Factor

  	
   

  	
   

  	
   

  	
  Your Age
  64

  Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85

  	
  %

  	
   

  	
   

  	
  $

  	
  259.68

  	
   

  
							

 

You would have received a
benefit of $259.68 per month if you had retired on the day of your death.  Your spouse is entitled to fifty-five
percent of that amount, or $142.82 per month after your death at age 64.

 

If, however, you have not
met the basic requirements of 5 years of Vesting Service, then upon your death
prior to retirement, no retirement benefits will be payable.

 

Death After Retirement

 

Your surviving spouse or
beneficiary’s right to receive retirement benefits upon your death after
retirement are as explained previously. 
Provided you are receiving the Joint and Survivor Benefit, this benefit
would automatically commence to be paid to your surviving spouse or your
Designated beneficiary upon your death. 
In addition, should you have any benefits available under the 10 Year
Certain and Life Option, these benefits would be paid to your surviving spouse
or beneficiary.

 

What Happens if I Become Divorced or
My Spouse Should Die?

 

If you should become
divorced prior to retirement, your ex-spouse would not be eligible for any
benefits under the Pre-Retirement Joint and Survivor Benefit.  If upon retirement you are married on your
Actual Retirement Date and you were receiving the Post Retirement Joint and
Survivor Benefits, and subsequently you became divorced, your ex-spouse would
still be entitled to the Joint and Survivor Benefit upon your death.  If you divorce became final or if your
spouse were to die before your Actual Retirement Date, you would be treated as
an unmarried retiree and you would receive the Single Life Benefit rather than
the reduced Post-Retirement Joint and Survivor Benefit.

 

If you become married
after your Benefit Commencement Date, you will not be eligible for the
Post-Retirement Joint and Survivor Benefit and no benefit will be payable to
your new spouse upon your death, unless your new spouse is your beneficiary
under the 10 Year Certain and Life Option and benefits are still available
under this form of payment.

 

44

 

What is the Difference between Vesting Service and Credited
Service?

 

Your employment service
with the Company is used to measure your fulfillment or certain of the Plan’s
requirements for eligibility for benefits and the amount of your benefits.

 

Vesting Service

 

Vesting Service is used
to determine your right to receive a retirement benefit.  A year of Vesting is any calendar year in
which you have received credit for 1,000 or more Hours of Service.  An “Hour of Service” is any hour for which you
were paid by the company for the performance of duties, and also includes absence
from work for any of the following reasons:

 

1.               Absence
from work, up to a maximum of two (2) years, because of a work-related injury
or disease during which Workers’ compensation benefits are paid and during
which you would have been normally scheduled to work for the Company;

2.               A
period of layoff, up to a maximum of twelve (12) months, unless you fail to
return to work upon recall;

3.               Any
temporary illness in which you receive compensation under a Company disability
program, provided you have worked at least 170 hours in the year in which you
became ill;

4.               Absence
for paid vacations or paid holidays not worked;

5.               Any
absence so credited under rules adopted by the Board.

 

The Hours of Service
granted under the above conditions are pro-rated at the rate of 8 hours per
day, 40 hours per week, and 174 hours per month, assuming you normally would
have been scheduled to work during these absences.  If you have earned less than 1,000 Hours of Service in a calendar
year, Vesting Service is earned at the rate of 1/12th of a year for
the first 40 hours and 1/12th of a year for each 80 hours after
that.  Only 1,000 hours are counted for
a year of Vesting Service, even though you may work more than 1,000  hours in a particular year.

 

“Vesting” is a form of
ownership or right to receive a retirement benefit.  You become vested in your retirement benefits after completing 5
years of Vesting Service with the Company.

 

Credited Service

 

Credited Service is used
to determine the amount of retirement benefits you will receive.  A year of Credited Service is a calendar
year in which you are credited with 1,700 total compensated hours.  All hours of work at a premium rate will be
computed as straight-time hours.  In
addition, you will also receive Credited Service for the following reasons:

 

1.               Absence
from work because of vacations or because of a work-related injury or disease
during which Workers’ Compensation benefits are paid up to a maximum of two (2)
years and during which you would have been normally scheduled to work for the
Company.

 

2.               Absence
from work pursuant to an excused absence granted under the collective
bargaining agreement with the Union.

 

3.               Active
service with the Armed Forces of the United States if you return to work within
90 days of your discharge and if your re-employment rights are protected by any
Federal law then in effect which relates to military service and re-employment.

 

Have There Been Any Changes in
Service?

 

Yes.  As noted above, a new term called “Vesting
Service” has been added to the Plan. 
Prior to January 1, 1976, if you were a participant in this Plan,
you received 1/10th of a year of Vesting Service for each month of
Credited Service that you earned beginning with your most recent hire date
prior to January 1, 1976.  Service
after January 1, 1976 in which you complete 1,000 Hours

 

45

 

of Service will be
considered a full year of Vesting Service. 
Service awarded under these circumstances will be rounded to the nearest
1/12th of a year.

 

Can I Lose My Benefits if I am not Vested?

 

Yes.  If you are not vested when you leave the
Company, you will not receive any benefits from the Plan.  Therefore, if you have less than 5 years of
Vesting Service and you do not return to work with the Company, you would lose
all of the service that you had earned up 
until the date of your termination. 
However, if you return to work with the Company within a certain time
period, your previous service can be counted.

 

Once you have 5 years of
Vesting Service, terminate from the Company and subsequently return to work,
all future service would be added to your previous service.  If does not 
matter how long you may have been away from the Company provided you had
5 years of Vesting Service at the time of your termination.

 

What Happens If I Reach
My Normal Retirement Date Before I have Completed Five Years of Vesting
Service?

 

Any participant who
reaches age 65 is automatically considered to be vested in whatever retirement
benefits he or she had accrued up to that point.  Therefore, if you had become employed by the Company after
attaining age 55 but prior to age 60 and worked until you reached age 65, you
would be eligible for a retirement benefit based on your years of Credited
Service.  Employees hired after age 60
are not eligible to join the plan.  You
would not be eligible, however, to take early retirement as you would not have
the required minimum 5 years of Vesting Service.

 

If I Have Five Years of
Vesting Service and I Quit or I Am Terminated, What Happens to My Retirement
Benefits?

 

If you have become vested
(5 years of Vesting Service) and then you are terminated or you quit, the
Company will hold your accrued benefit until your Normal Retirement Date.  If you had 10 years or more of Vesting Service,
you may elect an early retirement benefit between the ages of 55 and 65, with
reduced benefit payments beginning at any time prior to age 65 as elected by
you.  If you have a spouse at the time
your benefits commence, the Post-Retirement Joint and Survivor Benefit will be
automatically paid unless you elect not to receive this form of benefit
option.  The Pre-Retirement Joint and
Survivor Benefit is not available to terminated employees.

 

How
Do I Claim a Benefit?

 

All benefit applications
(“claims”) are made by completing the retirement application form which is
available from your local Human Resources Department.  The Human Resources Department will provide you with any help you
may need in completing the form and explain all options that are available to
you.  Please be sure you have completed
the form accurately; if the wrong information is provided, this could cause a
delay in processing your claim.

 

Your claim will be
reviewed and either approved or denied within 90 days after the date of
submission.  In certain cases the Board
may require more time to review your claim. 
If such is the case, you will receive a notice stating that more time is
needed and identifying the reasons why. 
The Board may require up to an additional 90 days to approve or deny a
particular claim.

 

It is the intent of the
Board and the Company to respond to all claims within the 90-day period.  If for some reason, however, you did not
receive a notice of approval or denial of your claim or a notice indicating that
more time is needed, the law permits you to assume that your claim has been
denied and to proceed with a request for a review of the denial.  To save time, however, we

 

46

 

suggest that before you
do request a review, you contact your Human Resources Department to see if your
claim has actually been denied or it is being held up for some other reason.

 

What If My Claim Is
Denied?

 

If your claim to a
benefit is denied in whole or in part, you will receive a written notice informing
you of the denial.  The notice will
state the specific reasons for denial and will refer to specific Plan
provisions which caused the denial.  In
addition, the notice will state whether additional information is needed to
complete this claim and if so, why that additional information is
necessary.  Finally, the notice will
tell you what steps must be taken in order to request a review of the denied
claim.  Generally, to request a review
of the denied claim, you must submit a written request of the Board within 60
days after receipt of the denial notice.

 

If a request for a review
of a denied claim is not made within 60 days of the receipt of the denial
notice, you shall be deemed to have waived your right to a review.

 

The Board will re-examine
the denied claim, taking into consideration any additional information which
you may provide in support of your claim. 
You will receive a response to your request for a review within 60 days
after your request is received by the Board.

 

Again, if more time is
needed to review your claim, you will receive a notice stating that more time
is needed and identifying the reasons why such additional time is needed.  The Board may require up to an additional 60
days to make a final decision on the review of a previously denied claim.

 

If, after the receipt of
the decision of the Board you are still not satisfied with the decision
rendered, you should contact the Human Resources Department.

 

The Human Resources
Department will conduct a review of the claim and may contact the Board, you,
the Trustee or any other person or persons as necessary to obtain information
concerning the claim.  The Committee
will inform you in writing of the final decision which has been reached within
30 days following the receipt of the review of the appealed decision (unless
more time is required), in which case you will be notified that extra time is
required.

 

May I See the Actual
Plan?

 

Yes.  If you need more detail and technical
information about this Plan, you may request an opportunity to examine the
legal papers used in maintaining and reporting the Plan.  These papers are called the Plan
Documents.  You may purchase copies of
the documents if you wish.

 

May I Change My
Mind?

 

If for some reason after
you have made a benefit application you wish to revoke an election made under
the Plan, you may do so prior to your Actual Retirement Date.  For example, if you named your sister as
your beneficiary for the Joint Annuitant Benefit and your sister as your
beneficiary for the Joint Annuitant Benefit and your sister dies, you can name
another beneficiary as long as  you have
not begun to receive your payment.  Your
Actual Retirement Date is the cutoff date; no changes in any elections can be
made after that date except that you may change your beneficiary under the
10-year Certain Option.  Thus, if the
Joint and Survivor Benefit or the Joint Annuitant Benefit is in effect and your
beneficiary or spouse dies before you do, you will continue to receive the reduced
payments even though your beneficiary or spouse can never receive any benefits.

 

Are There Any Waiting Periods for My
Election?

 

Yes.  If you make an election or change an
election for the Joint Annuitant Benefit or the 10-Year Certain, your election
must be made in writing and filed with the Company no later than two years

 

47

 

prior to your Normal
Retirement Date.  If such an election is
made within two years of your Normal Retirement Date, you will be required to
furnish the Company satisfactory evidence of your good health.

 

Other Facts You
Should Know

 

Who
Pays for All This?

 

The Company pays for the
entire cost of this Plan.  The amount of
the Company’s contribution to the Trust Fund is actuarially determined.

 

Administration
of the Plan

 

The Company has the
overall responsibility for the operations of the Plan.  These persons have the power to delegate
authority for certain parts of the Plan to other persons.

 

Plan
Benefits Are Insured

 

Benefits under this Plan
are insured by a federally established corporation called the Pension Benefit
Guaranty Corporation (PBGC) if the Plan terminates.  Generally, PBGC guarantees most vested normal retirement
benefits, early retirement benefits and certain disability and survivor’s
benefits.  However, PBGC does not
guarantee all types of benefits and the amount of benefit protection is subject
to certain limitations.

 

The PBGC guarantees
vested benefits at the level in effect on the date of Plan termination.  However, if retirement benefits have been increased
within five years prior to the Plan termination, the whole of the Plan’s vested
benefits or the benefit increases may not be guaranteed.  In addition, there is a ceiling on the
amount of monthly benefit the PBGC guarantees which is adjusted periodically.

 

For more information on
the PBGC insurance protection and implementations, ask the Board or the
PBGC.  Inquiries to the PBGC should be
addressed to the Office of Communications, PBC, 2020K Street, N.W., Washington,
D.C. 20006.  The PBGC Office of Communications
may also be reached by calling 202-254-4817.

 

Names and Addresses You Should Know

 

The Plan Administrator
is:  RBC Heim Bearings, 60 Round Hill
Road, Fairfield, CT 06430, telephone (203) 255-1511.

 

The Trustee of the Plan
is:  Frank Russell Trust Company, 909 A
Street Tacoma WA 98402, (206) 572-2282.

 

The Paying Agent is:  State Street Bank, Retirement Investment
Services, P.O. Box 1389, Boston, Massachusetts 02104-1389

 

The agent for services of
legal process is:  RBC Corporate
Offices, 60 Round Hill Road, Fairfield, CT 06430, (203) 255-1511.

 

Legal process may also be
served on the board of the Trustee at the appropriate address, as indicated
above.

 

The employer
identification number is 21-073351, which number identified the Company to the government.  The Plan number is 047 which identifies the
Plan to Heim and to the government.  Any
correspondence concerning the Plan should always include those two numbers.

 

48

 

Your
Rights Under ERISA

 

The following statement
is required by regulations released under the Employee Retirement Income
Security Act of 1974 (ERISA).

 

As a participant in the
Hourly Payroll Retirement Income Plan, the Heim Bearings Hourly Pension Plan,
you are entitled to certain rights and protections under ERISA.  ERISA provides that all Plan Participants
shall be entitled to:

 

Examine, without charge,
at the office of the Plan Administrator, and at other specified locations, such
as local Personnel Offices, all Plan Documents, including trust agreements
insurance contracts and copies of agreements, insurance contracts and copies of
all documents filed by the Plan with the U.S. Department of Labor, such as
detailed annual reports and plan descriptions;

 

Obtain copies of all Plan
Documents and other Plan information upon written request to the office of the
Plan Administrator (the Plan Administrator may make a reasonable charge for the
copies);

 

Receive a summary of the
Plan’s annual financial report.  The
Plan Administrator is required by law to furnish each participant with a copy
of this Summary Annual Report (“SAR”), and;

 

Obtain a statement
telling you whether you have a right to receive a pension at normal retirement
age(65) and if so what your benefits would be at that age if you were to stop
working under the Plan now.  If you do
not have a right to a pension, the statement will tell you haw many more years
you  have to work to get a right to a
pension (become “vested”). This statement must be requested in writing and is
not required to be given more than once a year.  The Plan must provide the statement free of charge.

 

In addition to creating
rights for Plan Participants (ERISA) imposes duties upon the people who are
responsible for the operation of the employee benefit plans.  The people who operate your Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of your and other Plan Participants and beneficiaries.  No one, including your employer, or any
other person may fire you or otherwise discriminate against you in any way to
prevent you from obtaining a pension benefit or for exercising your rights
under ERISA.

 

If your claim for a
pension benefit is denied, in whole or in part, you must receive a written
explanation of the reason for the denial. 
You have the right to have the Plan Administrator review and reconsider
your claim.

 

Under ERISA, there are
steps you can take to enforce the above rights.  For instance, if you request materials from the Plan and you do
not receive them within 30 days, you may file suit in federal court.  In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $100 a day until
you receive the materials, unless the materials you requested were not sent to
you because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is
denied in whole or in part, you may file suit in a state of federal court.  If is should happen that Plan Fiduciaries
misuses the Plan’s money, or if you are discriminated against for asserting
your rights, you may seek assistance from the U.S. Department of Labor, or you
may file suit in a federal court.  The
court will decide who should pay court costs and legal fees.  If you are successful, the court may order
the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay those costs and
fees.  For example, if it finds your
claim is frivolous.  If you have any
questions about your Plan you should contact your local Human Resources Office
of the Office of the Plan Administrator. 
If you have any questions about this statement or about your rights
under ERISA, you should contact the nearest Area Office of the U.S.
Labor-Management Services Administration, Department of Labor.

 

49

 

Before You Go

 

We urge you to again read
this Summary Plan Description which describes highlights of your retirement
income plan.  It is important for you to
know what to expect when you approach retirement age.  The time to understand your Plan is now, before you need it.

 

If, after reading this
booklet you still do not understand the benefits you may receive from the Plan,
contact your Human Resources Office for assistance.  The Human Resources Office can either answer your questions or
help you find the information you need. 
You will be informed of any changes in the Plan  which could affect your benefits.  Subject to the provisions of the Plan, the
Company reserves the right to amend or terminate this Plan at any time.

 

50

 

TABLE
I

 

HEIM HOURLY PAYROLL

RETIREMENT PLAN

EARLY RETIREMENT FACTORS

(Applied to the Accrued
Benefit at Date of Early Retirement)

 

	
  Age at Early Retirement

  	
   

  	
  Factor

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  40

  	
   

  
	
  56

  	
   

  	
  46

  	
   

  
	
  57

  	
   

  	
  52

  	
   

  
	
  58

  	
   

  	
  58

  	
   

  
	
  59

  	
   

  	
  64

  	
   

  
	
  60

  	
   

  	
  70

  	
   

  
	
  61

  	
   

  	
  76

  	
   

  
	
  62

  	
   

  	
  82

  	
   

  
	
  63

  	
   

  	
  88

  	
   

  
	
  64

  	
   

  	
  94

  	
   

  
	
  65

  	
   

  	
  100

  	
   

  

 

The above factors would
be increased or decreased by one half percent (1/2%) per month depending on the
age in months and years of the retiree.

 

51

 

TABLE
II

 

Factors to Convert
Pension Payable Under Normal Form (Single Life Benefit) to a 10 Year Certain
and Life Option.

 

	
  Age

  	
   

  	
  Male

  	
   

  	
  Female

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  .972

  	
   

  	
  .987

  	
   

  
	
  56

  	
   

  	
  .969

  	
   

  	
  .985

  	
   

  
	
  57

  	
   

  	
  .966

  	
   

  	
  .983

  	
   

  
	
  58

  	
   

  	
  .962

  	
   

  	
  .981

  	
   

  
	
  59

  	
   

  	
  .958

  	
   

  	
  .979

  	
   

  
	
  60

  	
   

  	
  .953

  	
   

  	
  .977

  	
   

  
	
  61

  	
   

  	
  .948

  	
   

  	
  .973

  	
   

  
	
  62

  	
   

  	
  .942

  	
   

  	
  .970

  	
   

  
	
  63

  	
   

  	
  .935

  	
   

  	
  .965

  	
   

  
	
  64

  	
   

  	
  .928

  	
   

  	
  .961

  	
   

  
	
  65

  	
   

  	
  .919

  	
   

  	
  .955

  	
   

  
	
  66

  	
   

  	
  .909

  	
   

  	
  .949

  	
   

  
	
  67

  	
   

  	
  .898

  	
   

  	
  .942

  	
   

  
	
  68

  	
   

  	
  .887

  	
   

  	
  .933

  	
   

  
	
  69

  	
   

  	
  .874

  	
   

  	
  .922

  	
   

  
	
  70

  	
   

  	
  .860

  	
   

  	
  .910

  	
   

  

 

52Exhibit
10.10

 

AGREEMENT

 

Between

 

NICE BALL BEARINGS, INC.

AN RBC COMPANY

 

and

 

UNITED STEELWORKERS OF AMERICA
(AFL-CIO)

LOCAL 6816-12

 

OCTOBER 23, 1999

 

1

 

TABLE OF CONTENTS

 

	
  ARTICLE

  
	
   

  	
   

  
	
  1

  	
  Parties
  to the Agreement

  
	
  2

  	
  Philosophy
  Statement

  
	
  3

  	
  Union Recognition

  
	
  4

  	
  Management
  Rights

  
	
  5

  	
  Union Security and
  Check-off

  
	
  6

  	
  Non-Discrimination

  
	
  7

  	
  Structure and
  Decision-Making Process

  
	
  8

  	
  Work Performed
  Outside the Bargaining Unit

  
	
  9

  	
  Training

  
	
  10

  	
  Probationary
  Period

  
	
  11

  	
  Seniority

  
	
  12

  	
  Layoffs and Recall to Work

  
	
  13

  	
  Open Jobs

  
	
  14

  	
  Leave of
  Absence

  
	
  15

  	
  Overtime

  
	
  16

  	
  Wages and Other
  Compensation

  
	
  17

  	
  New Products

  
	
  18

  	
  Shift Premium

  
	
  19

  	
  Temporary
  Transfers

  
	
  20

  	
  Vacations

  
	
  21

  	
  Holidays

  
	
  22

  	
  Safety and
  Health

  
	
  23

  	
  Union Facilities

  
	
  24

  	
  Dispute Resolution

  
	
  25

  	
  Living Agreement

  
	
  26

  	
  Insurance

  
	
  27

  	
  Pension
  Benefits

  
	
  28

  	
  Waiver of
  Any Clause

  
	
  29

  	
  Good Faith

  
	
  30

  	
  General

  
	
  31

  	
  Plant Shutdown

  
	
  32

  	
  Duration
  of Agreement

  
	
   

  
	
   

  
	
  APPENDIX A

  
	
  APPENDIX B

  

 

2

 

ARTICLE 1

PARTIES
TO THE AGREEMENT

 

This Agreement is entered
into between NICE BALL BEARINGS, INC. – AN RBC COMPANY (“RBC” or the “Company”
or the “Employer”) and the UNITED STEELWORKERS OF AMERICA, AFL-CIO, on behalf
of itself and the members of Local Union No. 6816-12 (the “Union”).

 

ARTICLE 2

PHILOSOPHY
STATEMENT

 

We understand that our
primary responsibility is to manufacture quality bearing products, and provide
a service that satisfies our customers’ needs. 
Everything we do in manufacturing, customer service, and administration
must be of the highest quality possible. 
These efforts should be accomplished in an environment that is cost
conscious, effective, continually promotes openness and trust and strives to
achieve continuous growth of the business.

 

We believe that people
want to be involved in decisions that affect them, care about their jobs and
each other, take pride in themselves and in their contributions and want to
share in the success of their efforts.

 

Making progress toward
these mutually agreed upon goals will require a relationship of mutual respect,
open communication, shared success, mutual aid, innovative problem solving, and
shared decision-making.  The parties
agree that in order for the Union to effectively represent its members, the
Union must have a role in the decision-making process that affects its
members.  It is the intent of the Union
and RBC to create a workplace that recognizes the need for people to be treated
with respect and dignity and recognizes that collective bargaining can be an
essential and constructive force in our plant. 
All parties in this Agreement will strive to make the Kulpsville plant
of RBC the best of its kind in the marketplace; making the highest quality
product; a cost effective, profitable operation; a coveted place to work, and a
responsible member of the community.

 

It is in this renewed
spirit of mutual respect and recognition of each other’s stakes and equities
that this Agreement is entered into and agreed upon.

 

ARTICLE 3

UNION
RECOGNITION

 

The Company recognizes
the Union as the certified collective bargaining agent for all of its
production and maintenance employees engaged on jobs at its plant in
Kulpsville, Pennsylvania, excluding clerical employees, general office
employees, and supervisory employees pursuant and subject to the provisions of
the Labor-Management Relations Act of 1947 and amendments thereto.

The Company recognizes
the right of labor to organize in order to promote the interests and welfare of
labor and to bargain effectively and will not interfere with the right of
employees to become members of the Union, nor will it discriminate against
employees for filing or causing to be filed a just grievance or because of
membership in the Union, or against any officer or representative elected or
appointed to act in behalf of the Union pursuant to the terms of the Agreement.

 

ARTICLE 4

MANAGEMENT
RIGHTS

 

The Union recognizes that
the management of business and the direction of its workforce are exclusively
the right of Management in all respect not inconsistent with the specific
provisions of the Agreement or any law, and it is understood that any matters
not covered with respect to same shall rest within the sound discretion of
Management.  Management will receive and
consider any suggestions from the Union with respect to the exercise of the
rights herein reserved.

 

ARTICLE 5

UNION
SECURITY AND CHECK-OFF

 

To the extent permitted
by law, all bargaining unit members shall be required, as a condition of employment,
to acquire and maintain membership in the Union immediately upon completion of
thirty (30) days of employment or the effective date of this Agreement,
whichever is the later.

 

3

 

The Company will provide
for check-off of union dues and initiation fees on behalf of employees who
request such a service in accordance with prevailing law.  The Company agrees to compute union dues on
the basis of earnings in the preceding month. 
In case of earnings of less than sixteen (16) hours, dues will not be
deducted.  They will be deducted from
the next pay which is sixteen (16) or more hours.  Further, the Company will deduct $5.00 from one pay per year for
P.A.C. for those employees who have so directed.  The Union shall indemnify and save RBC harmless with respect to
any claims or expenses arising out of any action taken as or not taken by RBC
for the purpose of complying with this Article.

 

ARTICLE 6

NON-DISCRIMINATION

 

The philosophy and
mission of RBC are designed to be in full and complete compliance with the
legal and moral principles of equal opportunity in employment.  Accordingly, the Company and the Union
pledge, on behalf of themselves, as well as their officers, members and
representatives to treat all persons equally without regard to their race,
color, religion, age, sex, national origin, disability, or veteran’s
status.  Although the term “he” is used
throughout this Agreement, it is used to represent both male and female
employees and is not intended to be discriminatory or exclusive in any way, but
rather to simplify the language for understanding.

 

ARTICLE 7

STRUCTURE
AND DECISION-MAKING PROCESS

 

The intent of the parties
is to create an evolutionary process towards a goal in which employees will be
involved in the decision-making process with respect to producing to schedule,
producing a quality product, performing to budget, housekeeping, health,
safety, environmental conformance, maintenance of equipment, material and
inventory control, training, job assignment, repairs, scrap control, and
scheduling time off.  It is anticipated
that the transition towards this goal will extend over much, if not all, of the
term of this Agreement.  A Memorandum of
Understanding will be developed outlining this expected transition process.

.

WORK GROUP MEMBER:

The individual RBC
employee.

 

WORK GROUP:

An integrated group with
a common manufacturing and support purpose related to a product or products,
across all shifts.

 

The Work Group will have
the responsibility and authority to produce quality products to schedule at
competitive costs.  It will have
responsibility for both direct and indirect work and, as such, will hold
meetings, requisition supplies, keep records, seek resources as needed, and be
responsible for job preparation and attainment of its own materials and
supplies.  It will constantly seek
improvement in quality, cost and work environment.  The Work Group will also be responsible for communicating any
problems with the responsible function.

 

WORK GROUP REPRESENTATIVE:

An employee elected by
the Work Group to communicate with all shifts and participate with management
in coordinating the administrative functions of the Work Group and report at
least monthly on Work Group progress to the Plant Council.  The Plant Council may remove a Work Group
Representative upon petition of at least two-thirds of the members of the Work
Group, or upon consensus of the Plant Council.

 

WORK GROUP FACILITATOR:

A member of management
who will coordinate the activities of the Work Groups and provide resources as
needed.

 

UNION PLANT COMMITTEE:

The Union Plant Committee
is elected by the Union members according to the Union bylaws and will be
comprised of the President, Vice President and Area Grievance Chairman.   However, the current committee members will
continue in office for the balance of their term or until they resign or are
removed by the Union, whichever occurs first. 
Union Plant Committee members will have top seniority for layoffs and
recall purposes.  They will be assigned
to serve on the Plant Council and the other committees created by this
Agreement as the Union sees fit.

 

4

 

PLANT COUNCIL:

A consultative employee
group, consisting of the Union Plant Committee and an equal number of
representatives from the Company, which includes the Plant Manager or his
designee, who participate in decision-making processes addressing issues
affecting the entire plant or which have not been resolved in the Work Group.  Additional members may be added by mutual
agreement of the parties on an ad hoc basis while resolving specific
issues.  The Plant Council will meet as
often as necessary, but at least weekly.

 

In connection with the
foregoing and with other issues affecting the plant, the parties recognize that
all functions of management are reserved exclusively to the Company, except
insofar as they are delegated or shared pursuant to the terms of this
Agreement.  These functions include the
management of the business, the determination of the products, methods,
processes and means of manufacturing, the establishment of the size and
direction of the work force, the setting of working schedules, the rights to
hire, promote, demote, lay off, transfer, discipline, discharge for proper cause
and establishing fair efficiencies and work rules.  The Company will perform these functions in the spirit of the
Philosophy Statement of this Agreement.

 

Within the Work Groups,
decisions on matters within the Groups’ authority which are not otherwise
provided for in this Agreement will be made through the consensus
decision-making process outlined below:

 

A)                                  Such
decisions shall be made in the context of the Philosophy Statement and the
Structure and Decision-Making framework.

 

B)                                    Decisions
should be achieved through the joint efforts of all to discover the best
solution.

 

C)                                    Decisions
must be arrived at promptly.

 

D)                                   A
decision must provide a high level of acceptance for all parties.

 

E)                                     Once
a decision is reached, all parties must be totally committed to the decision.

 

F)                                     Any
party may object to a proposed decision, in which event the objecting party
must propose concrete alternatives.

 

G)                                    In
the event an alternative solution is not forthcoming, the objecting party must
re-evaluate its position in the context of the Philosophy Statement.

 

H)                                   In
the event a decision acceptable to all parties is not promptly attainable, the
matter will be referred to the Plant Council.

 

The Plant Council will
also seek to reach decisions on matters within its authority under this
Agreement by means of the consensus decision-making process outlined above,
provided that, if such a decision is not promptly attainable, the Company shall
have the right to take action, subject to the Union’s right to grieve under the
Agreement.

 

ARTICLE 8

WORK
PERFORMED OUTSIDE THE BARGAINING UNIT

 

1.               It is not the
intent of the Company to subcontract work provided there is sufficient
manpower, skills, abilities, and equipment in the plant to timely and
economically perform the work involved.  The Company will notify the Union of scheduled subcontracting at
the weekly Plant Council meeting, including a brief description of the work to
be performed, and reasons for having it performed by an outside contractor.  If such notice is not feasible, the Company
will verbally contact a representative so designated by the Union.  The Union shall have the right to file a
grievance regarding the Company’s action at Step 3 of Article 24.

 

2.               The parties shall
conform to the principle that non-bargaining unit employees shall not perform
any operation that would deprive bargaining unit employees of their regular
work.  Non-bargaining unit employees may
be used to perform experimental work, with or without the assistance of
employees in the bargaining unit, as management determines.  Experimental work is defined to mean all
work involved in the development of new, different or modified products, parts,
tools or equipment.  Non-bargaining unit
employees may also be used in cases of emergency or training.

 

5

 

ARTICLE 9

TRAINING

 

Both the Union and the
Company recognize that training will be required to prepare Work Group and
Plant Council Members to perform these functions and that this transformation
will require a gradual cultural change, but agree to work together over the
life of this Agreement to obtain the skills necessary to meet the levels of
authority and responsibility described here.

 

A Training and Education
Committee will be established to develop, schedule and manage the training and
education process.  Two (2) employees
selected by the Union Plant Committee and two (2) employees selected by the
Plant Manager will constitute the Training and Education Committee.  The minimum training and education requirement
for each employee will include either on-the-job training to learn to perform
specific skills and/or classroom training on subjects necessary to comply with
the Philosophy Statement of this Agreement. 
The Training and Education Committee will work with the members of the
Work Groups to develop, schedule, and implement training and education
programs.  An employee whose application
for training is approved and scheduled by the Training and Education Committee
shall be trained in accordance with that training schedule.  If an employee is at work and available to
accept training opportunities, but does not receive training in accordance with
such schedule through no fault of his own, the employee will be paid at the
level he would have attained if the training had been provided in accordance
with the schedule unless such training is prevented or delayed by unforeseen
circumstances or by circumstances beyond the Company’s control.

 

The Training and
Education Committee will develop a training and education plan that will
include necessary skills and education for the implementation of this
Agreement.  This plan will include a
schedule of training for all employees in coordination with the principles of
the pay for knowledge and skills process. 
A skills assessment of all employees and the requirements for all levels
of each classification will be included in the plan.  The Training and Education Committee will submit its initial plan
for six months training and education to the Plant Council for approval within
ninety (90) days of the ratification of this Agreement.  The training and education plan will include
the utilization of a qualified trainer or trainers selected by the Plant
Council, whose duties may also include helping the parties to facilitate the
transition process.  Expenses for
training and education will be borne by the Company or through grants where
available.  After the initial training
and education plan, the Committee will submit a plan every six (6) months for
approval.  Training will begin within
thirty (30) days of the approval of the initial plan, which must be finalized
within two (2) weeks of its submission.  
In the event the members of the Committee shall fail to reach consensus
on any aspect of the plan, the opposing views shall be submitted to the Plant
Council for determination.

 

Each Training and
Education Plan will include (but will not be limited to):

 

•
technical skills

•
problem-solving

•
consensus decision-making

•
business basics and philosophy

•
team building

 

Any Skilled Trades
components of the training and education plan will be developed with the
assistance of the Skilled Trades Department.

 

ARTICLE 10

PROBATIONARY
PERIOD

 

1.               An employee may
acquire seniority rights by working ninety (90) continuous days, in which event
the employee’s seniority will date back ninety (90) days.  When an employee acquires seniority, his
name shall be placed on the plant seniority list.  New employees who have worked less than ninety (90) calendar days
shall be classified as probationary employees. 
There shall be no responsibility for re-employment of such employees if
they are laid off or discharged during this period.

 

2.               Benefits for newly
hired employees will begin following sixty (60) days.

 

6

 

ARTICLE 11

SENIORITY

 

1.               Computing Seniority

 

A)          The seniority of an
employee shall be computed on the basis of the length of his service, from the
date of his last employment with the Company, subject to the provisions of this
Agreement.  When more than one employee
is hired on the same date, to establish their seniority position, their names
will be placed on the seniority lists in alphabetical order by last name (at
the time of hire), first name, and middle name.

 

B)            An employee who
accepts a position not within the Bargaining Unit will have ninety (90) days to
return to the Bargaining Unit.  If the
employee exceeds this 90-day period, he will lose all rights and will return to
the Bargaining Unit only as a new employee.

 

C)            Service will
accumulate during an approved personal leave of absence, Union leave, family
and medical leave, maternity leave, sick leave, military leave, funeral leave,
jury duty or layoff.

 

2.               Termination of
Employment

 

An employee’s length of
service and seniority shall be considered ended, and the employee will have no
further recall or other rights as an employee of any kind or nature, except the
right to vacation pay, and insurance continuation, if such an employee:

 

A)          Voluntarily quits his
employment, or

 

B)            Is discharged for
proper cause, or

 

C)            Is absent for three
(3) consecutive working days without properly notifying the Company, or

 

D)           Fails to return to work
from layoff within five (5) working days after being notified by telephone
unless prevented to do so because of sickness, injuries, or causes beyond his
control and the Company is notified prior to the end of the fifth working
day.  In such event, he shall be given a
reasonable time in which to report for duty. 
The date of return shall not be later than one (1) year thereafter.  Such a condition shall not prevent employees
next in service from being employed during the interim.  In instances where notification is by
“overnight” mail or certified mail only, the five (5) days commence with the
receipt of the letter by the employee. 
In any event, if there is no response within two (2) weeks, the employee
whom the Company in unable to reach will be terminated.

 

E)             Fails to return to
work at the end of an approved leave of absence or gives a false reason for
obtaining a leave of absence, or

 

F)             Passes the time limit
for recall from layoffs.

 

3.               For purposes of
layoff and rehire, the officers of the Union shall have seniority in the
following order:  President, Grievance
Chairman, Vice President and Grievance Committee providing they have the
ability to perform whatever jobs are available.  No layoff notice is required if one of the aforementioned leaves
his office.  The Union agrees to keep
its list of officers and stewards up to date and will hold the Company
blameless if the list is not kept current.

 

ARTICLE 12

LAYOFFS
AND RECALL TO WORK

 

1.       Layoff Provisions

 

A)          The Company will give at
least two and one-half (2-1/2) working days’ notice prior to layoff to the
employees affected, even if only one employee is affected, or will pay him at
straight time rate for two and one-half (2-1/2) working days in lieu of such
notice.

 

B)            When a job is
eliminated within a Work Group, the least senior employee in that Work Group
will be 

 

7

 

displaced.  In the event that the work group facilitator
believes that displacing the least senior employee in the group will deprive
the group of skills needed to meet production requirements, he will discuss the
matter with the work group representative in an effort to reach agreement.  If such agreement is not immediately
attainable, the issue shall be submitted to the Plant Council for action.

 

C)            An employee displaced
from a Work Group may bump on the basis of plant seniority one of the least
senior employees in the same or another Work Group.  In the event that the work group facilitator believes that such
bumping will deprive the group of skills needed to meet production
requirements, he will discuss the matter with the work group representative in an
effort to reach agreement.  If such
agreement is not immediately attainable, the issue shall be submitted to the
Plant Council for action.  The employee
will designate a job choice within 24 hours from the end of the shift on which
he was displaced.  Employees can only
bump into a Skilled Trades job if they previously held the job.

 

D)           When a shift or part of
a shift is removed due to lack of work or reduction of work, any employee
affected will be given the opportunity to exercise his seniority on the shift
of his choice, providing he currently possesses the skills and skill level of
the junior employee he wishes to displace.

 

E)             When an employee is
displaced and bumps a less senior employee, there will be no posting for a job
opportunity, but if more than one shift is involved, then subsection (D) above
applies.

 

2.       Recall Provisions

 

A)          If employees are laid
off and subsequent thereto it becomes necessary to increase the working force
in any Work Group, rehiring shall begin with the most senior qualified
employee, regardless of which work group he was laid off from.  He will be paid according to the skill level
in the Work Group to which he has been recalled.

 

B)            If an employee on the
recall list is offered regular, full-time re-employment in the same Work Group
and shift as previously held, and he refuses to accept it, he will be dropped
from the recall list and no longer have any rights under this Agreement.

 

C)            If an employee on the
recall list is offered regular, full-time re-employment in a different Work
Group or shift, and he refuses to accept it, he will remain on the recall list
until such time as he is offered another opportunity to return to work.  A third refusal to return to work will cause
such employee to be removed from the recall list and no longer have any rights
under this Agreement.  In order to count
as a “refusal” for purposes of the preceding sentence, the offer which the
laid-off employee refuses must have been received at least one month subsequent
to the prior offered he refused.

 

D)           The Company shall
notify eligible employees by telephone, where possible, to report for work and
confirm it by “overnight” or certified mail to the last known address, and
shall give a copy of such notice to the Union at the same time.  If such employee does not report within five
(5) working days after being notified by telephone, he shall lose his seniority
unless he is prevented from returning due to sickness, injuries, or causes
beyond his control, and the Company is notified prior to the end of the fifth
working day.  In such event, he shall be
given a reasonable time in which to report for duty.  Such a condition shall not prevent employees next in service from
being employed during the interim.  In
instances where notification is by “overnight” or certified mail only, the five
(5) days commence with the receipt of the letter by the employee.  In any event, if there is no response within
two (2) weeks, the employee whom the Company is unable to reach will be terminated.

 

E)             A
laid off employee will remain on the recall list according to the following
time limits:

 

SENIORITY TIME LIMIT

 

	
  Probationers

  	
   

  	
  No Recall

  
	
  Non-probationers

  	
   

  	
  3 years (36 months)

  

 

 

3.                    The
Company agrees to notify the Union immediately, in writing, of all temporary
and permanent layoffs, resignations, discharges and transfers.

 

8

 

4.                    It
shall be the duty of the employees to advise Human Resources, in writing, of
their proper home addresses, and any notice sent by the Company by “overnight”
mail or certified mail to the last known address of record with the Company
shall be considered proper notice.  The
Company agrees to inform the Union of new or corrected addresses.

 

ARTICLE 13

OPEN
JOBS

 

1.                    Filling Open
Jobs

 

A)   Whenever the Company determines that an open
job exists in the Bargaining Unit (other than a Skilled Trades job):

 

1)              The
Company will post notice of such opening for seventy-two (72) hours.  Employees who wish to apply for the opening
must do so by submitting a completed Job Vacancy Application to their work
group facilitator during the posting period.

 

2)              If
a job is posted when an employee is on vacation, workers’ compensation or an
approved leave of absence for reasons named in Article 14, Section 1, that
employee will be given three (3) days in which to bid on the opening upon his
return, provided he will be returning from leave in a reasonable period of
time.  In the event that awarding of the
posted job is delayed as a result thereof, the employer shall have the right to
fill the position during the interim with the next most senior applicant who is
qualified under 3, below.

 

3)              Applicants
will be awarded the open job on the basis of seniority and possession of the
skill level required to perform the job. 
In the event that there are no applicants who currently possess the
required skill level, the job will be awarded on the basis of seniority and an
aptitude to perform the job.

 

4)              All
awards to open jobs will be posted within five (5) working days.  A successful bidder will be transferred to
the open job within thirty (30) calendar days after he is designated, unless
the Plant Council determines that his transfer within that time period would be
detrimental to his current Work Group.

 

B)            When
an open job exists in one of the Skilled Trades classifications, the Company
may determine whether to train or hire on the outside.  If the Company decides that the posting and
bidding procedure outlined in Subsection A above shall be utilized, the job
will be awarded on the basis of seniority and aptitude.  However, employees who have previously held
the job in the Skilled Trades classification in which the open job exists, will
be given priority.  Those employees
bidding for the job who have not previously held the open Skilled Trades job
will be required to take a standard skills assessment test to verify
qualification and aptitude for successful performance, and must hold any
applicable certifications.

 

2.       Successful
applicants will receive a rate of pay commensurate with their classification
and level of training.

 

3.       Successful
applicants will be trained on the shift where suitable training conditions
exist, and will be moved to the posted shift as soon as practical after
sufficient skill levels are reached.

 

4.       If the
employee is disqualified within a period of sixty (60) days, he shall return to
the original job classification he held at the time of the job award.  Such employee shall then be restricted from
bidding out of his classification for a period of six (6) months, except to
fill a position that would otherwise be sent out for hire.

 

5.       If an
employee disqualifies himself within a period of sixty (60) days, he shall
return to his original job classification he held at the time of the job
award.  Such employee shall then be restricted
from bidding out of his classification for a period of six (6) months, except
to fill a position that would otherwise be sent out for hire.

 

6.       In the
event work is transferred from one Work Group to another on a permanent basis,
the affected employees will be given the opportunity of moving with full
seniority to the new Work Group.

 

9

 

7.       Every
six (6) months, the Company shall place in each Work Group a plantwide
seniority list.

 

8.       The
Company agrees when a vacancy exists within the bargaining unit for a higher
position or skill level (to include all promotion, upgrading, transfers and
reassignments), present employees will be considered for these positions before
new employees are added to the workforce. 
The Company will carefully and impartially consider the ability,
experience, past performance, interest demonstrated and any other
qualifications of the candidates for these vacancies in order of seniority.  The Company will give the applicant accepted
an appropriate opportunity to demonstrate his proficiency.

 

A)  The following procedure shall apply for
posting of open positions:

 

Post as job opportunity
(post for three (3) days plantwide).

 

Procedure to be followed
in making awards (plantwide):

 

a)              seniority

b)             skill
and ability

c)              plantwide
recall

d)             outside
hire

 

B)  Any interested employee may make application
by filling out a Job Vacancy Form in triplicate.  One copy shall be given to the Union and one copy to the Human
Resources Manager.  If the Company posts
an open position and later decides to withdraw the open position, it is
understood that the Union will be notified of such withdrawal.

 

9.                    Any
proposed mechanical aptitude or other test deemed necessary by the Training and
Education Committee, and individual results, will be reviewed with the Union
President or his designated substitute. 
Employees who are applicants for the open positions will be entitled to
repeat tests previously taken.  Senior
employees who pass the test will not supplant junior employees who have passed
previous tests and are in training.

 

10.              When
an opening exists on any shift, the most senior employee who currently
possesses the required skills on another shift, and who requests such shift
assignment, may transfer into the vacancy. 
Application for such transfer must be made within three (3) working days
of posting of the opening.

 

ARTICLE 14

LEAVE OF
ABSENCE

 

1.       Types
and Conditions of Leave

 

A. Personal Leave

 

A personal leave of
absence shall be understood to mean an absence from work without pay, requested
by an employee and consented to by the Company, covering an agreed period of
time and for reasonable cause.  The
Union shall be notified of any such leave prior to commencement thereof and of
any extension thereto.  Personal leaves
of absence will not be granted for the purpose of allowing an employee to take
another position temporarily, try out new work, or venture into business for
himself.

 

B. 
Union Leave

 

Upon written request by
the District Director, United Steelworkers of America or his designated
representative, a leave of absence not to exceed two (2) years will be granted
to members of the Union selected to work full time for the Union in an official
capacity.  Such leave of absence will be
without loss of seniority, but no other benefits shall apply during the term of
such leave.

 

Employees selected and
appointed as delegates to any Union meeting, conference or convention
necessitating a temporary leave of absence shall be granted such leave of
absence without pay and without loss of seniority.

 

Employees elected to
public office or appointed to non-civil service positions shall be granted a
leave of absence not 

 

10

 

to exceed four (4)
years.  Neither seniority nor benefits
accumulate during the term of such leave.

 

Upon proper notification,
any two (2) employees assigned by the Union to engage in activity relevant to
political elections, will be excused from work on the day in question.

 

C. 
Sick Leave

 

An employee, who may
become ill or injured and qualify for non-occupational disability, and has
supported his absence with satisfactory evidence similar to that required under
the Company’s Family and Medical Leave policy, shall, upon application, be granted
an unpaid leave of absence.  The
employee must provide medical evidence of continued disability as required.

 

In all instances, upon
returning to work, a statement must be presented from a qualified physician
stating the employee is physically capable of performing his regular job
assignment.  The Company reserves the
right to obtain a second opinion from a qualified physician designated by the
Company and at the Company’s expense. 
The employee will return to his previous job provided work is available and
he has the seniority to do so.  If the
leave was an approved FMLA Leave for personal disability, he will return to his
previous job or a comparable job. 
Otherwise, he will be eligible to bump another job, subject to the
seniority provisions of this Agreement, and provided he has the skill and
ability to perform the work.

 

Employees on sick leave
will be removed from the active payroll. 
However, if an employee is not on the active payroll on 12/31 but
returns to work on or before 3/31 of the succeeding year and works at least
thirty (30) days in that year, that employee will be eligible for full vacation
benefits.

 

Employees on sick leave
for one (1) year or more will be taken off the payroll.  Those employees will not lose any rights to
life insurance or medical insurance, or any other accrued rights, and will be
reinstated at full accumulated seniority if and when they are able to return to
work.  However, for employees with less
than ten (10) years of service, all benefits will cease after one (1) year.

 

During the period in
which A&H benefits are paid, hospital coverage and life insurance will
continue.

 

D. 
Family and Medical Leave

 

It is understood that all
of the leave provisions herein shall be administered in a manner consistent
with an employee’s rights, if any, under applicable family and medical leave
statutes.  Likewise, it is the parties’
intent that the Company shall have the right to exercise any rights of an
employer under such applicable statutes.

 

E.             Maternity
Leave

 

Employees absent from
work due to pregnancy shall be granted sick leave as described above, provided
the required application, approvals, procedures and proof of medical disability
are followed as outlined in the Company’s FMLA Policy and conform to current
applicable laws concerning maternity absences. 
A leave of absence for pregnancy may be extended up to three (3) months
following delivery, without loss of seniority or service.  In all instances, upon returning to work
following a delivery, a statement must be presented from the family physician
stating the employee is physically capable of performing her regular job
assignment.

 

F.  Funeral Leave

 

An employee will be
granted three (3) days off with eight (8) hours straight time pay in the event
of a death in the immediate family for the purpose of arranging and attending
the funeral; the immediate family being mother, father, spouse, children,
brothers, sisters, half-brothers, half-sisters, sister-in-law, brother-in-law,
mother-in-law, father-in-law, son-in-law, daughter-in-law, step-parents,
step-children, grandparents and grandchildren. 
One (1) of these three (3) days may follow the funeral.

 

An employee will be given
one (1) day off with eight (8) hours straight time pay to attend the funeral of
a step-parent of a spouse.

 

If a death occurs in the
immediate family of an employee while he is on vacation, that employee will be
entitled to

 

11

 

three (3) consecutive
days off immediately upon conclusion of the vacation period.

 

G.  Jury Duty

 

In case of jury duty, the
Company will make up the difference in pay between jury duty pay and straight
time pay by the Company for forty (40) hours per week.  Such compensation shall be payable only if
the employee gives the Company prior notice of such jury duty call and presents
proper evidence as to the jury duty performed.

 

The Company will pay up
to eight (8) hours for employees who lose time from work due to necessity of
going to the Courthouse either to qualify for or to be excused from jury duty.

 

If an employee is on jury
duty and death occurs in the immediate family, the employee will be covered
under terms outlined in Section 1(F) above.

 

If an employee is on jury
duty and is released for any reason, he shall have the option of reporting to
work or having an excused absence.  This
option may be exercised only one (1) day in any one (1) week period and only
after notification to the Company.

 

If an employee is on jury
duty and “daily” overtime is scheduled in that period, the employee will not be
entitled to work such overtime. 
However, that employee will be entitled to work overtime if it is
scheduled on a weekend.

 

H.  Military Leave

 

Any employee who is
required to attend Military Reserve Training encampment shall be excused from
work for up to two (2) weeks and shall be paid up to two (2) weeks the
difference between his military pay and what he would have earned while working
for the Company, up to a maximum of eighty (80) hours.  The employee must present proof of his gross
military pay before any payment is made.

 

All veterans of World War
II, the Korean War, or Vietnam or situations arising therefrom, who previous to
induction were employed by the Company and who have returned within ninety (90)
days after their discharge from War Service shall be compensated for any lost
time for medical checkup for injuries received in World War II, the Korean War,
Vietnam, or situations arising therefrom, so long as the maximum compensation
shall not exceed eight (8) hours in any thirty (30) day period.  Regulation governmental procedure shall be
obtained in certification of a veteran’s incapacity; proper governmental
identification in the form of documentary evidence shall be submitted to the
Plant Manager in such cases.  In the
circumstances of Malaria, such veteran would be treated in accordance with
governmental regulations by a physician duly appointed by the government.  The Company will comply with all existing
Federal and State statutes pertaining to veteran’s rights and benefits.

 

2.  Leave Provisions

 

A)   All requests
for permission to take personal leave of one week (5 days) or more shall be
submitted to the Human Resources Manager. 
Requests for less than one week (up to a maximum of ten (10) days per
year in the aggregate) may be submitted to the Work Group Facilitator.  Approval of such requests is at the
discretion of the Human Resources Manager or the Work Group Facilitator, as the
case may be.

 

B)    Employees
who are approved for Personal Leave, Union Leave, Sick Leave, Military Leave
(except for yearly two-week encampments), Family and Medical Leave and
Maternity Leave will be granted such leave without pay.

 

ARTICLE
15

OVERTIME

 

1.               The
contracting parties hereby agree that the normal work day shall be eight (8)
hours and that the normal work week shall be five (5) consecutive days,
commencing Monday and ending Friday.  It
is agreed that the present working schedule shall remain in effect, and that
any change in established schedules shall be decided in the Plant Council.  This shall not be construed as a guarantee
of hours of work per day or per week.

 

2.               Starting
times and shifts will remain in effect for the length of this contract.  Any change must be decided in the

 

12

 

Plant Council.

 

3.               Curtailment
on a partial work group or plantwide basis will be as follows:

 

A)          The
Company representatives on the Plant Council will notify the Union
representatives on the Plant Council three (3) days prior to curtailment except
for circumstances beyond the control of the Company.

 

B)            On
a partial work group basis, work will be performed by immediately qualified
employees in line of seniority.

 

C)            If
curtailment exceeds five (5) consecutive days duration, the Company will then
revert to the layoff provisions of this contract.

 

D)           If
curtailment occurs for one (1) or more days in a work group, the Company will
attempt to place the affected employees in other work groups without
interfering with employees in those work groups.  An employee may also opt to take time off without pay or to use
vacation time.

 

4.               All
work in excess of eight (8) hours per day on any regular working shift or all
work in the work week in excess of forty (40) hours shall be paid for by the
Company at a rate of one and one-half (1 1⁄2) times the regular rate.

 

5.               All
work performed on Saturday shall be paid for at one and one-half (1 1⁄2) times
the employee’s regular hourly rate, and all work performed on Sunday shall be
paid for at two (2) times the regular hourly rate.  However, management will not be obligated to give Saturday and
Sunday work to any employee who has lost a scheduled day or more Monday through
Saturday of that week.  This shall apply
even though the employee may have worked less than forty (40) hours during the
regular work week.  Before an employee
is denied an overtime opportunity because of absence, the Work Group
Facilitator will contact the Human Resources Manager to prevent any unjust
application of this rule.

 

6.               A
holiday shall be counted as a day worked for purposes of overtime computation.

 

7.               When
in the judgement of management, overtime is required for a given work group,
the regular employees assigned to the work group shall be given preference over
other employees to accept such overtime, provided that they have the ability to
do the work available.  All reasonable
means will be employed to equalize overtime among shifts in a work group.  Any questions as to the qualifications or
capability of any employee or employees will be explained by the work group
facilitator to the work group representative. 
This paragraph does not apply to the skilled trades.

 

8.               It
shall be clearly understood that the responsibility for keeping the rotating
list up to date shall rest with the Union and further, that the Union will hold
the Company blameless for any grievance arising from the selection of workers
from the list, providing the selection of those persons whose turn it is to
work is according to the Union’s list. 
In the event of a mistake under this section, the employee affected
thereby shall be given an overtime makeup turn the next time overtime is
scheduled in this particular work group.

 

9.               The
Company agrees (overtime work not being compulsory) to schedule weekend
overtime by 11:00 AM on Thursday, except where an emergency makes such
scheduling impossible.  Whenever
possible, the list of employees to work weekend overtime shall be given to the
Company by the Union no later than 8:30 AM on the Friday immediately preceding
the scheduled overtime.

 

10.         Where
a work group or any employee in the work group has been on an overtime basis,
an employee will receive eight (8) hours notice, wherever practical, before
returning to his regular shift.

 

11.         Proper
notification of overtime will normally be four (4) hours after the start of the
shift unless the Plant Council agrees otherwise.

 

12.         When
overtime is to be worked within a work group, employees who possess the
required skills will be canvassed on a seniority basis.

 

13.         If
an employee is scheduled for overtime on Saturday or Sunday and reports for
duty, he shall receive pay for no

 

13

 

less than four (4)
hours work.  If the employee is
transferred to other work on overtime, he shall be guaranteed eight (8) hours
work at the appropriate rate of pay.

 

14.         Employees
who are called back to work after the end of their regularly scheduled shift
will be guaranteed a minimum of four (4) hours pay at the appropriate overtime
rate.  However, when any callback
results in consecutive hours worked just before the employee’s regularly
assigned shift those hours will be paid at the appropriate rate and hours after
the start of the scheduled shift will be paid on a straight time basis.

 

15.         When
an employee is transferred from one work group to another work group, he shall
be afforded the opportunity to work any scheduled overtime in the work group to
which he was transferred.  In the event
that no overtime is scheduled in that work group, he is eligible to accept
overtime in the work group from which he was transferred.

 

16.         The
parties also recognize the need in many cases for special exception overtime
agreements, which are to be entered into promptly in writing between the
members of the Plant Council.  The
present exception agreements shall remain in effect unless otherwise changed
within the Plant Council.

 

17.         Overtime
may be worked in a Work Group where layoffs exist.  If the overtime exceeds 50% of total hours worked in two (2)
consecutive weeks in such Work Group the Company will immediately recall at
least one (1) employee per week for the duration of the overtime.

 

ARTICLE 16

WAGES
AND OTHER COMPENSATION

 

1.               Effective October
25, 1999, a general increase of  $.60
will be applied to all individual rate of pay of each member of the bargaining
unit.  Employees who are not on the
active roll at the time of the general increase will receive the increase
adjustment at the time they return to the active roll.

 

2.               Effective October
23, 2000, a general increase of $.30 will be applied to the individual rate of
pay of each member of the bargaining unit. 
Employees who are not on the active roll at the time of the general
increase will receive the increase at the time they return to the active roll.

 

3.               Effective October
22, 2001, a general increase of $.15 will be applied to the individual rate of
pay of each member of the bargaining unit. 
Employees who are not on the active roll at the time of the general
increase will receive the increase adjustment at the time they return to the
active roll.

 

4.               Classifications and
Pay for Knowledge and Skills

 

A)          The current
classification system will remain in effect until such time that the Plant
Council institutes a pay for knowledge and skills system, at which time
Appendix A will go into effect.

 

B)            The Training and
Education Committee will consult with all interested parties and will prepare a
written report, surveying the skills and knowledge currently possessed by the
employees in the bargaining unit.

 

C)            The new system will
consist of four classifications:

 

Production

Skilled Trades
(Maintenance)

Skilled Trades (Tool
Room)

Skilled Trades
(Electronic Technician)

 

Furthermore, within each
classification, there will be four levels of training:

 

Basic

Core

Intermediate

Advanced

 

14

 

Training will be provided
in each level, as necessary and as determined by the Training and Education
Committee in consultation with the Work Groups and with final approval by the
Plant Council.

 

D)           Each employee assigned
to a Work Group will be required to complete the Basic and Core levels of
training for that group.  Intermediate
and Advanced level training shall be voluntary.  However, if management of the Work Group determines that
insufficient intermediate and advanced levels of training are available within
the Group, it may resort to necessary measures, which may include transfers.

 

E)             The
four-classification and pay for knowledge and skills system is designed to
create greater flexibility and efficiency, and is not designed to reduce the
work force.   Management of the Work
Groups will be free to assign employees in accordance with the knowledge and
skill levels they have attained.

 

ARTICLE 17

NEW
PRODUCTS

 

1.       The
Company has the discretion to manufacture different products, new to the plant,
and may create a new Work Group or otherwise staff the production of such
product by means of recalling or rehiring experienced employees or by means of
new hires.  If the Company believes that
the skills and/or knowledge needed to produce such product on an efficient and
profitable basis are substantially different than the skills and knowledge in
the existing Work Groups:

 

A)          The Company will install
a wage range for the positions;

 

B)            The wage range will be
explained in the Plant Council with the object of obtaining a consensus
agreement.  The wage program may be
installed by the Company without a consensus agreement in the Plant Council
subject to adjustment as provided below;

 

C)            When a wage range is
installed, the Union may process the issue in accordance with Article 24 below,
including submission to arbitration of a grievance alleging that such does not
bear a fair relationship to the wage structure in the plant.  The decision of the arbitrator, if any,
shall be effective as of the date when the employee(s) commenced manufacturing
such different product.

 

ARTICLE 18

SHIFT PREMIUM

 

1.       A shift
premium of 5% of the regular hourly rate will be paid to all employees whenever
they are assigned to and working on the afternoon and night shifts for the life
of the contract.  Employees are expected
to start on time and work until the end of their scheduled shift.

 

2.       Where
scheduled variations from the regularly scheduled shifts occur, the jobs
involved will be considered as falling on the shift on which a major part of
the job is worked.

 

3.       Shifts
shall be identified as follows:

 

A)   Day Shift -
(“A” Shift)

When the majority of
hours on an employee’s regularly assigned shift shall fall between 7:00 a.m.
and 3:00 p.m., inclusive, he shall be considered as working on the Day Shift.

 

B)    Afternoon
Shift - (“B” Shift)

When the majority of
hours on an employee’s regularly assigned shift shall fall between 3:00 p.m.
and 11:00 p.m., inclusive, he shall be considered as working on the Afternoon
Shift.

 

C)    Night Shift
- (“C” Shift)

When the majority of
hours on an employee’s regularly assigned shift shall fall between 11:00 p.m.
and 7:00 a.m., inclusive, he shall be considered as working on the Night Shift.

 

15

 

ARTICLE 19

TEMPORARY TRANSFERS

 

1.               An
employee may be transferred into another Work Group temporarily if there is a
greater need in that Work Group or if there is a lack of work in the other Work
Group.  If a disagreement arises between
the two Work Groups regarding the appropriateness of the transfer, the matter
will be referred to the Plant Council for immediate action.  The transferred employee shall receive the
rate of pay of the skill level which he has attained and will be given a
transfer slip.

 

2.               If
senior employees are involved, they may displace junior employees in the Work
Group, providing they possess the skill level required to perform the job, and
the junior employee will be transferred.

 

3.               Transfers
may be made for daily absenteeism within a Work Group and may continue for up
to five (5) working days.  If the
absence of any employee should exceed five (5) working days, the matter will be
referred to the Plant Council for action.

 

4.               When
layoffs are necessary, transfers may be made from one Work Group to another
providing no layoffs exist in the Work Group to which transfers are being
made.  However, such transfers are
permitted to cover temporary vacancies (a) due to vacation or disability, (b)
to respond to emergencies, or (c) where employees on layoff do not possess the
skills necessary to perform the work in question.  In the case of (a) or (b), the transfer shall not exceed one (1)
week unless the Plant Council gives its consent.

 

ARTICLE 20

VACATIONS

 

1.               The vacation year
shall begin on January 1 and end December 31. 
Each employee who is on the payroll on December 31 of any year shall be
entitled to receive his full vacation benefits in the ensuing year,
notwithstanding the fact that his services may have been terminated in the ensuing
year prior to the receipt of vacation pay.

 

2.               Employees not on
the active payroll as of December 31, but who become active after December 31,
due to recall or return from a Company approved leave of absence, will be
entitled to vacation benefits for each month of service in the current vacation
year.

 

A)          In cases of employees
with less than one year’s service, vacation benefits will be prorated as
mentioned above, except that employees with less than six (6) months’ service
will not be entitled to vacation benefits.

 

B)            If any employee elects
not to return to his work group in which he formerly worked when called by the
Company after a layoff, the employee loses the right to the vacation privilege,
unless he was on the active payroll the previous December 31, in which case he
will be paid his full vacation benefit.

 

C)            All employees
returning from layoff to a permanent job who have been paid vacation benefits
in the current year, will be entitled to take equivalent time off without pay,
except such employees must work at least one month immediately upon return from
layoff.

 

D)           When an employee is
laid off, he will receive all vacation benefits due at the time of such layoff.

 

3.                    Vacation
benefits for employees hired on or before October 22, 1999 shall be as follows:

 

	
  Accredited Service Prior to

  12/31 of Vacation Year

  	
   

  	
  Vacation

  
	
  1 year less than 3
  years

  	
   

  	
  1 week 1 day

  
	
  3 years less than 5
  years

  	
   

  	
  1 week 4 days

  
	
  5 years less than 7
  years

  	
   

  	
  2 weeks 1 day

  
	
  7 years less than 9
  years

  	
   

  	
  2 weeks 2 days

  
	
  9 years less than 11
  years

  	
   

  	
  2 weeks 4 days

  
	
  11 years less than 13
  years

  	
   

  	
  3 weeks

  

 

16

 

	
  13 years less than 15
  years

  	
   

  	
  3 weeks 1 day

  
	
  15 years less than 20
  years

  	
   

  	
  4 weeks

  
	
  20 years less than 25
  years

  	
   

  	
  5 weeks 1 day

  
	
  25 years and over

  	
   

  	
  5 weeks 3 days

  

 

A)          Employees
hired on or after October 23, 1999 will receive a maximum of four (4) weeks
vacation based on the accredited service schedule above.

 

4.                    Vacation
pay for each eligible employee will be computed on the basis of a forty (40)
hour week at straight time for the highest rate paid for the majority of the
time worked between January 1 and June 1. 
The vacation pay for an employee taking his vacation prior to June 1
will be based on his highest rate for the majority of time worked from January
1, until he applies for his vacation. 
Vacations taken after June 1 will be paid at the employee’s current
rate.

 

A)          The Company agrees to
pay the employee his vacation pay at the time the employee takes his vacation
between January 1 and December 31. 
It is provided, however, that the employee will receive his vacation pay
on a regular pay date and that one week’s notice be given in advance of such
pay date.

 

B)            The Company agrees to
pay employees only when the vacation is taken. 
Any employee who is scheduled for a vacation and works during that
scheduled vacation will receive their vacation pay in addition to pay for
actual time worked in lieu of additional time off.  This forfeiture will not apply if prior agreement has been made.  Any employee who is scheduled for vacation
may not change such vacation except by mutual agreement between the Company and
the Union.

 

C)            An employee will
receive vacation pay for each individual day he charges to vacation.

 

D)           An employee who desires
vacation by seniority must request such vacation by March 1.  If an employee does not follow the above
procedure, the Company will assign his vacation.

 

E)             Individual holidays
cannot be charged as vacation days.  The
only exception will be where the holiday, or holidays, fall within the
employee’s scheduled vacation week.  In
these instances, the employee will receive his holiday pay.

 

F)             Employees who honor
their military reserve commitments in conjunction with their vacation time are
not entitled to reserve make up pay.

 

G)            Between the dates of
January 1 and June 1, and September 15 and December 31, an employee may split
his vacation week into days.

 

5.                    Any
employee who shall have worked a full month or any fraction thereof shall be
given credit for the full month in computing earned vacation time on a prorated
basis.  An employee who returns from
layoff or is hired on or before the 15th of the month shall be given
full credit for that month.

 

6.                    Vacations
will be scheduled by the Work Group and approved by the Work Group Facilitator
in accordance with production requirements.

 

A)          Employees
with the greatest seniority within a Work Group will be given preference in
scheduling vacation.

 

B)            The
right of the Company to shut down for two (2) consecutive weeks of mandatory
vacation anytime from July 15 to August 15 is recognized by the Union.  In addition, the Company has the right to
schedule a vacation shutdown during the final week of the year (i.e. between
Christmas Eve and New Year).  The
Company will notify the Union of the three (3) weeks shutdown by February 1 of
the vacation year.  Any function
pertaining to inventory during that shutdown would be performed by individuals
in the Work Group where the inventory is to take place by seniority.

 

C)            If
there is work to be performed in a Work Group during the vacation shutdown,
employees in the Work Group without eligibility for the scheduled shutdown
weeks of vacation will be canvassed for the work 

 

17

 

on a seniority
basis.  If more employees are necessary,
the jobs will be filled by employees on a seniority basis in the Work Group
where the work is needed.  Should the
employee requirements remain unfilled, additional employees will be canvassed
from the master seniority list on a plantwide basis.  Employees who work during the vacation shutdown period may
request alternative vacation time off, by seniority and scheduled by the Work
Group, with Work Group Facilitator approval, in accordance with production
requirements, provided each such request is submitted during the vacation
shutdown period.  Thereafter, requests
for alternative vacation time off shall be acted upon in the order received.

 

7.                    The
vacation schedule shall be posted on or before January 15.  This schedule will give the amount of hours
the employee has for the vacation year.

 

A)          The
vacation schedule as to the employee’s choice of vacation shall be posted in
each Work Group by April 1.

 

B)            Each
Work Group shall be responsible for posting its own vacation schedule by April
1.

 

8.                    Any
employee who is on vacation for a full week shall not be eligible for overtime
assignment during any weekday or weekend falling within such vacation period.

 

9.                    In
the event of death of any employee who was eligible for a vacation but did not
use his vacation, the amount of vacation pay to which he would have been
entitled shall be paid to his surviving spouse or legal representative in
accordance with the laws of his state of domicile at the time of death.

 

10.              An
employee shall be permitted one instance per year of post dating a vacation day
if 24 hours notice is given, except in the case of an emergency, in which case
the 24 hour notice will be waived. 
Thereafter, for the remainder of the year, an employee shall only be permitted
to post date vacation days when approved by the Work Group and the Work Group
Facilitator.  No post dating will be
permitted in the period between June 1 and September 15.

 

11.              Any
employee who is absent from the Company due to sickness or personal leave of
absence may opt to take vacation money in lieu of time off.

 

12.              Any
exception to section 11 above must be agreed upon by the Company and the Union.

 

ARTICLE 21

HOLIDAYS

 

1.                    The
following holidays shall be recognized as paid holidays for all hourly
employees (such holiday time to be from 12:01 AM to 12:00 midnight of said
holiday):

 

	
  Good Friday

  	
   

  	
  Labor Day

  
	
  Easter Monday

  	
   

  	
  Thanksgiving Day

  
	
  Memorial Day

  	
   

  	
  Day after Thanksgiving

  
	
  Independence Day

  	
   

  	
  Three Holidays to be
  designated at Year’s End

  

 

2.                    Hourly
rate employees covered by this Agreement shall receive eight (8) hours pay at
their regular rate, including night shift bonus, for each of the above
holidays, no work being required.

 

3.                    When
any of the above holidays shall fall on Saturday, the preceding Friday shall be
observed in lieu thereof as a paid holiday. 
When any of the above holidays shall fall on Sunday, the Monday
following shall be observed in lieu thereof as a paid holiday.  When the Christmas holidays fall on Friday
and Saturday, Thursday and Friday will be observed as the holidays.  Should the Christmas holidays fall on Sunday
and Monday, Monday and Tuesday will be observed as holidays.

 

A)          An
employee who works on any one of the above mentioned holidays shall be paid at
double time the regular established rate for hours worked plus his holiday pay.

 

18

 

B)            A
holiday which occurs during an employee’s vacation shall not affect the period
of vacation and the employee in such cases will return to work at the beginning
of the regular work week rather than a day later.  When a paid holiday occurs while the employee is on vacation, he
will receive the holiday pay in addition to vacation pay.  If a holiday occurs during an employee’s
vacation week, the employee may have the privilege of taking the day at a later
time – the day to be agreed upon by the Company and the individual involved.

 

C)            A
holiday shall be counted as a day worked for purposes of overtime computations.

 

4.                    To
be eligible for holiday pay, an employee must work that first scheduled workday
after the holiday unless he has been excused by the Work Group Facilitator or
is absent for reasonable cause.  Any
employee who is absent forty-five (45) days or more prior to any of the above
holidays shall not be entitled to pay for such holiday.

 

5.                    Any
new employee or former employee of the Company who quits his job, or was
discharged must, if rehired, be on the payroll for sixty (60) days before
becoming eligible to receive holiday benefits.

 

ARTICLE 22

SAFETY
AND HEALTH

 

1.                    The
Company recognizes the importance of taking every reasonable precaution to
promote and protect the health and lives of its employees and hereby agrees:

 

A)          To
abide by and maintain to the best of its ability sanitation, safety, health and
satisfactory working conditions which comply with applicable Federal, State and
County and Municipal laws and regulations; to maintain a clean, properly
lighted, heated and ventilated factory with approved safety devices; first aid
and sanitation facilities as are necessary to promote the health, safety and
general welfare of its employees.

 

B)            That
no employee shall be required to perform any work which will seriously endanger
his personal safety or health, provided, however, that to be justified in
refusing to perform work, an employee must be able to show that he has a
reasonable basis for believing the work involved would seriously endanger his
personal safety or health.

 

2.                    If
an employee is injured while working on the job, his pay shall continue during
the normal scheduled work hours while he remains on the plant premises.  If an employee is sent from his job to a
physician to receive medical attention because of an injury on the job, he shall
be paid for all lost time, not to exceed eight (8) hours. If it becomes
necessary, the Company shall provide quick, comfortable transportation to the
doctor or hospital or home.

 

A)          When injured on the job,
employees must use the medical facilities made available by the Company for all
services in connection with the injury for a minimum of the first ninety (90)
days of treatment.  The initial
appointment must be scheduled by Human Resources, except in the event of an
emergency.  Any employee who bypasses
the Company facilities will act on his own responsibility insofar as the
expense involved.

 

B)            The Company may elect
to provide work for ill or injured employees that meets the physical
restrictions outlined by the Attending Physician.  If the decision of the Attending Physician is disputed, the
employee shall submit to an examination by a physician selected by agreement of
the parties.  That physician’s decision
will settle the issue.

 

C)            Light duty work as
provided for compensable injury employees is not limited to any specific
area.  This provision will not deprive
any active employee of a work opportunity, upgrade or promotion nor cause the
layoff of any active employee or block the recall of any employee on
layoff.  Where the Union can show
evidence that a light duty employee is used in violation of the above, such
employee will be removed.  The Plant
Council will be notified when a light duty person is assigned.

 

3.                    There
shall be a health and safety committee in the plant composed of one (1) member
to be appointed by 

 

19

 

Management and one
(1) member to be appointed by the Union. 
It shall be the duty of the committee to make a thorough and complete
survey of the plant weekly for the purpose of listening to any investigation of
complaints relating to health, safety and working conditions, ascertaining
whether conditions exist which are dangerous to the health and safety of the
employees.  There is to be no exception
to this rule unless it is agreed upon by the Plant Council.  Any such conditions shall be reported to the
Facilitator of the Work Group and Work Group Representative shall be advised so
he may check to see that correction is made as soon as possible.  If, in the opinion of the Work Group Representative,
proper remedial steps are not taken, then it shall be his duty to report such
condition to the Area Grievance Committeeman of the Union.

 

No discriminatory or
punitive action shall be taken by the Company or its representatives against a
Work Group Representative who performs his duties herein imposed in good
faith.  In case of any serious accident,
all members of the Plant Safety Committee will be immediately notified and
thorough examination shall be made by the full plant committee.  From time to time a representative of the
Workers’ Compensation Insurance Carrier shall attend the safety meeting.

 

A)                                  Safety
meetings shall be conducted on a monthly basis.

 

4.                    The
members of the Health and Safety Committee shall receive their regular hourly
wages for time away from their regular scheduled duties while on inspection
tours or meetings.

 

5.                    An
employee who is permanently unable to perform his regularly assigned job as a
result of a Company incurred disability may apply for permanent transfer
subject to the following conditions: 
The search by the Company for an appropriate job must begin by reviewing
jobs held by employees with less than three (3) years seniority and continuing
the search at yearly intervals.  In no
event may the applicant displace an employee with more Company seniority.  An employee transferred under this section
relinquishes recall rights to his former Work Group and he carries his full
Company seniority into the Work Group where he is placed.  The search will be conducted by the Work
Group, and failing successful placement, the search will be continued on a
plantwide basis.  The Workers’
Compensation Chairperson shall participate with the employee and the Company in
all compensable job searches and receive a copy of such results.

 

6.                    If
an employee is disabled as the result of a non-compensable accident, or suffers
a health problem that makes it impossible for him to perform his normal duties,
the Company will attempt to place him in another job within his capabilities
seniority permitting.  Whether the
employee’s disability is considered temporary or permanent will be determined
by the appropriate Union and Company representatives.

 

7.                    An
employee who has, as a result of a Company incurred injury, suffered the loss
of an eye or the equivalent of complete amputation of an essential body member,
may apply for preferred seniority on his regularly assigned job, as long as he
is physically able to perform the duties thereof.  If the injury prevents his efficient performance on his regularly
assigned jobs, he may request a transfer, whereupon the Company will attempt to
place him in a job commensurate with his skill and physical capability.  An application approved under this section
shall mean that the employee shall not be subject to displacement as long as he
is physically capable of efficiently performing the duties of that job.

 

ARTICLE 23

UNION
FACILITIES

 

No notices of Union
matters are to be posted on Work Group bulletin boards.  The Company shall install bulletin boards
within the plant for posting by the Union of announcements covering Union
matters.

 

ARTICLE 24

DISPUTE
RESOLUTION

 

1.                    If
any differences arise between the Company and the Union as to the meaning or
application of any provision of this Agreement, or as to its compliance by
either party with any of its obligations under this Agreement, such difference
shall be settled in the following manner:

 

STEP 1:

1.          An oral discussion of
the difference must take place between the employee and his Work Group
Facilitator 

 

20

 

with the Union
Representative.  The Work Group
Facilitator must give his answer within twenty-four (24) hours.

2.          If
the difference remains unsettled, the grievanceman or his substitute may be
called to discuss the matter further, and if no settlement is reached, then
within seven (7) days the employee may present the grievance in writing to his
Work Group Facilitator through his Union Representative.  A written answer must be given by the Work
Group Facilitator within seventy-two (72) hours.

 

STEP 2:

1.               Any
grievance not settled under Step 1 shall, within ten (10) days from the date of
the Work Group Facilitator’s answer, be heard by the Step 2 Grievance
Committee.

2.               The
Union Step 2 Committee shall consist of the Grievance Chairman, the Area
Grievanceman, and the Shop Steward involved. 
Designated substitutes for any of the above are permitted.  The Union may call upon the aggrieved and
any witnesses the Union deems advisable.

3.               The
Company Step 2 Committee shall consist of the Human Resources Manager and one
other member of management, or their designated substitute.

 

STEP 3:

1.               Any
grievance not settled under Step 2 shall, within ten (10) days from the date of
the Work Group Facilitator’s answer, be heard by the Plant Council.

2.               Either
party may call a reasonable number of witnesses.

3.               The
Union’s Area Staff Representative may attend.

4.               In
case of postponement of a third step meeting by either party, such meeting will
be rescheduled by mutual agreement of the parties.

 

STEP 4:

1.               Grievances
which have not been satisfactorily settled in Step 3 may be filed by the Union
for arbitration within ten (10) days following receipt of the Company’s Step 3
answer.

2.               If
the Union submits the matter to arbitration, it shall be referred to the
American Arbitration Association, and an arbitrator appointed according to the
procedure of that association.  The
decision of the arbitrator shall be final and binding on all parties.

3.               The
cost of arbitration shall be divided equally between the Union and the
Company.  No arbitrator shall have the
right to add to, subtract from, or in any way modify the provisions of this
Agreement.

 

2.       Except
for grievances involving seniority, all grievances must be filed in writing
within thirty (30) days of the event which led to the grievance.  In cases of grievances involving retroactive
pay, retroactivity shall in no case exceed a period of more than thirty (30)
days prior to the date of the filing of the grievance, except for arithmetical
errors in calculating pay.

 

3.       Any
Union member who is discharged or suspended for disciplinary reasons by the
Company may enter a complaint in writing within one (1) calendar week of the
date of discharge or suspension and shall take precedence over other issues
pending in the grievance procedure.  A
hearing for the discharged or suspended employee will be held within
twenty-four (24) hours of the Union’s request for such a hearing, and all
parties involved in Step 3 grievances will attend.

 

A)          If
disciplinary action is taken against an employee on the night shift and no
Union representative is present, the Company will notify the proper Union
representative on the following shift.

 

B)            Should
it be decided that an employee has been discharged or suspended without just
cause, such employee will be reinstated without loss of seniority and shall be
paid for all the hours he would have worked, less any deductions required by
law.

 

C)            If
the Company fails to hear a step 1 or step 2 grievance within the contractual
time limits, the grievance will move automatically to the next step of the
grievance procedure.

 

4.       The  Company agrees to continue
the past practice of paying for a reasonable amount of straight time lost in
the grievance procedure.

 

21

 

5.       Grievances pertaining to
safety and health will automatically be inserted in step 3 of the grievance
procedure.  Any such grievance will be
heard within one (1) week of submission.

 

6.       Second step grievances
will be scheduled as follows:

 

1st Shift –
any time during the shift.

2nd Shift –
2:00 PM or later.

3rd Shift –
initial grievance prior to 8:00 AM

 

7.       Union officials will
notify their Work Group Representatives when they leave their jobs to conduct
Union business. Further, they will provide their Work Group Representatives
with the approximate time needed.

 

ARTICLE 25

LIVING
AGREEMENT

 

In keeping with our
Philosophy Statement, this is a “Living Agreement.”  As a “Living Agreement,” both the Union and Management understand
that there may be issues that arise during the implementation of this Agreement
that have not been addressed or discussed during bargaining.   However, it may only be modified through
consensus of the Parties.

 

ARTICLE 26

INSURANCE

 

The Company agrees to
maintain the following Group Health and Welfare insurance plans which provide
eligible employees and dependents with non-occupational medical benefits,
dental benefits, life insurance, accidental death and dismemberment insurance
and disability income in the event of non-occupational accident or sickness, as
well as certain benefits for retirees.

 

1.                    Insurance
Benefits – Active Employees

 

A)          Group
Life Insurance and Accidental Death and Dismemberment Insurance in the amount
of $9,000 up to age 70.  Effective
December 1, 1999, each employee’s coverage shall be increased to $12,000 for
eligible active employees.

 

B)            Medical
coverage will be provided to active employees and their eligible dependents
through the current group medical insurance plans.  Effective January 1, 2000, all active employees and their
eligible dependents will be covered by the Aetna US Healthcare Patriot X Plan
or its equivalent.

 

C)            Dental
coverage shall be provided to employees and their eligible dependents through
the current Cigna Dental Plan or its equivalent.

 

D)           An
employee hired after October 26, 1996 will pay $9 per week toward medical
insurance for an individual and $15 per week for a family.

 

E)             The
medical insurance coverage described in section B above will be provided to
active employees and their eligible dependents and to retired employees under
age 65 and their eligible dependents under age 65 at no cost.  However, the Company’s premium cost
obligation is limited to the rates effective from January 1, 2000, through
December 31, 2000.  Thereafter, if the
Company receives a premium rate increase for the Aetna US Healthcare Patriot X
Plan, the parties will meet to discuss a modification of plan or alternative
plans which might avoid the increased cost. 
If no agreement is reached, any monthly premium increases over and above
the rates effective from January 1, 2000, through December 31, 2000, must be
paid by such active employee or retiree under age 65, by means of weekly
premium copayments not to exceed $5.00 per week for single coverage and $10.00
per week for family coverage, as the case may be, in order to be eligible for
continued coverage in the Patriot X Plan. 
In the case of active employees, payment shall be by payroll
deduction.  The obligation to make
weekly payments in this section shall not apply to employees hired after
October 26, 1996, whose copay obligations are spelled out in D above.

 

F)             For
disabilities commencing after December 1, 1999, $225 per week beginning with
the first day of 

 

22

 

accident, or the eighth day in the event of
sickness.  Benefits will be payable up
to a maximum of 52 weeks for each disability. 
Indemnity papers will be renewed monthly if no definite date of return
is given by the doctor.

 

2.                    Insurance
Benefits – Retirees

 

A)          Present
pension retired employees under age 65 and any employee who retires before age
65 under the provisions of the Pension Plan are eligible to continue coverage
under the HMO plan described in section 1B above for themselves and eligible
dependents under age 65.

 

B)            Any
employee who retires on or after the effective date of this Agreement, at age
65 and over with ten (10) years or more accredited service, shall be eligible
for coverage under an Aetna US Healthcare Medicare Risk HMO Plan.  Any such employee will have benefits capped
at whatever the cost of those benefits was on November 1, 1999, or $350 per
month, whichever is higher.

 

C)            Spouses
of retired employees are also eligible for coverage under the terms of section
2A above until they reach age 65 and under the terms of section 2B above after
they reach age 65.

 

D)           Employees
who retire on or after March 1, 1997 shall be provided with Group Life
Insurance in the amount of $2,000.

 

3.                    Insurance
Plans – General

 

A)          The
benefits listed above take effect on the dates indicated for active employees
and become applicable at the increased rates to employees on any leave of
absence only upon their return to active employment after the respective change
dates listed above.

 

B)            Should
a statute be enacted making mandatory benefits of the same or similar nature as
covered in any manner of this Plan, such statutory benefits shall not be
pyramided, but shall be offset against any benefits payable under this Plan,
and it may be necessary for us to adjust our Plan in accordance with such
statute or statutes.

 

C)            This
Plan is subject to the insurance industry’s coordination of benefits provision
(also referred to as a non-profit, non-duplication provision) as set forth in
the applicable master contracts.  The
purpose of this provision is to permit an individual who is insured under more
than one group insurance plan to receive from all plans no more than 100% of
his allowable medical expenses.

 

D)           More
complete details, including eligibility requirements, will be published in a
separate booklet which will be issued to each employee.

 

ARTICLE 27

PENSION
BENEFITS

 

1.                    A
pension plan has been provided in an agreement which is separate and apart from
this Agreement.

 

2.                    Employees
who retire shall be paid a lump sum retirement benefit of $1,500 provided that
they have had at least ten (10) years of Company service and reached age
sixty-five (65).  Employees with at
least ten (10) years of Company service who retire between the ages of fifty-five
(55) and sixty-five (65) under the 55/30, early, or disability retirement
provisions of the Pension Plan will receive a reduced lump sum benefit in
accordance with the following:

 

	
  At Least

  	
   

  	
  Attained Age Less Than

  	
   

  	
  Amount

  
	
  55

  	
   

  	
  56

  	
   

  	
  $

  	
  750

  
	
  56

  	
   

  	
  57

  	
   

  	
  $

  	
  800

  
	
  57

  	
   

  	
  58

  	
   

  	
  $

  	
  850

  
	
  58

  	
   

  	
  59

  	
   

  	
  $

  	
  900

  
	
  59

  	
   

  	
  60

  	
   

  	
  $

  	
  975

  
	
  60

  	
   

  	
  61

  	
   

  	
  $

  	
  1050

  
	
  61

  	
   

  	
  62

  	
   

  	
  $

  	
  1125

  
	
  62

  	
   

  	
  63

  	
   

  	
  $

  	
  1200

  
	
  63

  	
   

  	
  64

  	
   

  	
  $

  	
  1300

  
	
  64

  	
   

  	
  65

  	
   

  	
  $

  	
  1400

  

 

23

 

It is understood that the
lump sum retirement benefits shall be payable in addition to any vacation
payments that may be due an employee at the time of his retirement.

 

3.                    Employees
who retire with thirty (30) or more years of Company service will receive a
lump sum retirement benefit of $2000.

 

4.                    Employees
who retire on or after March 1, 1997 shall be provided with Group Life
Insurance in the amount of $2000.

 

5.                    Effective
December 1, 1979, an employee with thirty (30) years or more of accredited
service may retire, at any age, and receive a pension without actuarial
reduction.

 

6.                    The
present minimum pension formula shall be improved by increasing the pension per
month per year of service from $27 to $30 effective for retirements on or after
November 1, 1999.

 

7.                    The
35-year maximum service limitation used to compute the pension benefit will be
removed for those employees retiring on or after December 1, 1977.

 

8.                    A
monthly benefit will be paid to any eligible surviving spouse of any active
employee with at least 15 years of accredited service who dies on or after
December 1, 1977 at any age, and has not retired.

 

A)          A
person shall be considered a surviving spouse only if married one year, and
immediately after the employee’s death, such person is a widow or widower of
such employee within the provisions of the Social Security Act.

B)            Amount
of benefit – the amount payable to an eligible surviving spouse will be:

a.               50%
of the employee’s normal retirement pension or $100, whichever is higher, for
any month before the month in which the surviving spouse reaches age 60.

b.              50%
of the employee’s normal retirement pension less 50% of the widow’s (or
widower’s) Social Security benefit or $50, whichever is higher, for each month
after the surviving spouse reaches age 60.

c.               As
used above, normal retirement pension means the benefit calculated assuming the
employee had retired on the date of his death at age 65.

C)            The
first payment of any surviving benefit starts at the end of the month following
the month in which the active employee dies, provided proper and timely
application is made by the surviving spouse. 
If timely application is not made, retroactive payment of surviving
spouse’s benefit is limited to six (6) months.

D)           The
surviving benefit shall cease the last day of the calendar month in which the
surviving spouse shall die or the last day of the calendar month in which the
surviving spouse remarries.

 

9.                    More
complete details will be published in a separate booklet to be furnished to
each employee.

 

ARTICLE
28

WAIVER
OF ANY CLAUSE

 

A waiver of any clause in
this contract does not mean a permanent waiver.

 

ARTICLE 29

GOOD FAITH

 

1.                    This
Agreement has been entered into in good faith by the parties hereto and each
party agrees that it will carry out this Agreement to the best of its ability
so that harmony and cooperation between the Company and the Union and the
employees covered by this Agreement will prevail for the duration of the
Agreement.

 

24

 

2.                    The
Union agrees to maintain quality standards as established by the Company in the
attainment of full production and efficiency, and to that end, the Union agrees
to observe all rules of the Company not inconsistent with this Agreement.

 

3.                    It
is the expressed desire of the Company and the Union that the procedure
outlined in this Agreement for the settlement of disputes will serve the
purpose of effecting a peaceful settlement of all disputes that may arise
during the lifetime of this Agreement. 
To that end the Company agrees that so long as the Agreement is in
effect, it will not lock out any employees in connection with a labor dispute.

 

4.                    The
Union agrees that so long as this Agreement is in effect, it will not call,
cause or sanction any strike, slowdown or stoppage of work during the lifetime
of this contract.  The Union further
agrees that with respect to any strike, slowdown or stoppage of work during the
lifetime of this contract, the Company may discharge or otherwise discipline
any participating employees and such discharges or other forms of discipline
shall not be the subject of a grievance by the Union, except on the grounds
that the employee or employees did not participate in any activity prohibited
by this section.

 

5.                    It
is further understood that in the event of any prohibited activities on the
part of any employee which is not called, caused or sanctioned by the International
or Local Union, there shall be no liability on the part of the International or
Local Union, its officers or agents on account of such activity.

 

ARTICLE 30

GENERAL

 

A.           Effective
on all pay as heretofore, the City Payroll Tax will be deducted from the weekly
pay of each employee, and be paid by the Company to the Receiver of Taxes, of
the City of Philadelphia, in accordance with the City Payroll Tax Law at
present in effect.  The amount of this
deduction shall be shown on each employee’s pay envelope each week.

 

B.             If
an employee resigns after having been absent, his resignation will be
considered to have taken place the last day worked, without waiver of
intervening rights.

 

C.             The
Union agrees that during the life of this Agreement, it will not interfere with
production or permit any of its members to interfere with production or
production rates, providing such rates are reasonable, just and not detrimental
to the safety of the employee.

 

D.            The
Work Group Facilitator may perform such work normally under his jurisdiction
and direction as is necessary, (1) to maintain an uninterrupted flow of work
and normal Work Group efficiency, (2) to train employees, and (3) to relieve
bottlenecks in production.  This Article
shall not limit the Work Group Facilitator in performing other similar work
which is a part of his regular duty as Work Group Facilitator, so long as doing
such work does not affect the work opportunities of those employees under
him.  Members of the bargaining unit
will not perform salary jobs nor will salary people perform bargaining unit
jobs, except where bargaining unit employees are asked and refused.

 

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

 

F.              All
employees, who at the time of the signing of this Agreement, are volunteer
firemen, fire policemen and ambulance personnel, shall be paid for the time
lost at their straight time hourly rate while performing duties at a fire, if
such duties are performed during their regular scheduled working hours.  This paragraph applies when those duties are
the cause of an employee reporting late for work or leaving early.

 

G.             It
is the policy of the Company not to discriminate against any employee or
applicant for employment because of race, color, religion, national origin,
sex, age, handicap, veteran’s disability, or Vietnam era Veteran.

 

25

 

H.            The
Company will establish a program of retirement preparation classes to acquaint
employees nearing retirement age with their benefits and, in addition, they
shall have made available to them advice and counsel with respect to adjusting
their mode of living when they retire from active employment.

 

I.                 Any
employee who is asked to use his own vehicle for Company business shall receive
an allowance at the prevailing IRS rate for mileage.

 

J.                Special
written agreements in existence prior to the date of this Agreement which have
not been changed by the terms thereof shall remain in effect unless subsequently
modified by the mutual consent of the Union and the Company.

 

K.            Safety
glasses must be worn while on the shop floor.

 

L.              Employees
are expected to work their entire shift. 
Changing of clothing and/or showering is to be done after clocking out
at the end of the shift.

 

M.         The
Union’s Negotiating Committee shall consist of one representative per every 25
employees, rounded up to the next highest number, with a minimum of five (5)
representatives.

 

N.            If
an employee accepts overtime and fails to report without being excused by the
Work Group Facilitator, his absence shall be recorded as an unexcused absence
for purposes of tracking attendance.

 

O.            Those
employees laid off prior to October 23, 1984 will be credited for all layoff
time for vacation and pension eligibility.

 

P.              If
an employee is scheduled to report for duty and no work is available, or he is
given less than four (4) hours’ work he shall receive pay for not less than
four (4) hours’ at his regular rate. 
Except during overtime hours, if an employee is transferred to other
work, he shall be guaranteed eight (8) hours of work and be paid in accordance
with the provision governing transfers. 
This will not apply however:

 

1.               When
an employee is absent on the preceding scheduled work day and fails to make
necessary arrangements for his time off with his Work Group Facilitator.

2.               When
an employee is notified not to come to work at least four (4) hours before the
beginning of his shift by telephone or radio or other available means as listed
with the Human Resources Office.

3.               When
the plant or part of the plant is closed due to conditions beyond the control
of management.

4.               When
the above mentioned occurs, after two weeks, all medical and insurance benefits
will continue for the affected employees unless they are placed on layoff
status.

 

ARTICLE 31

PLANT
SHUTDOWN

 

1.                    In
the event of a temporary or permanent plant shutdown, the Company would
continue to provide all benefits but not wages for a period not to exceed four
(4) weeks to employees actively employed by the Company immediately prior to
the shutdown.

 

2.                    The
Company will notify the Union sixty (60) days prior to any temporary plant
shutdown, unless an emergency arises which makes such notice impossible.

 

3.                    Those
employees with vacation remaining are permitted to change such vacation to
correspond with the plant shutdown dates.

 

4.                    During
a temporary plant shutdown, any production work performed will be offered to
the most senior qualified employees within the Work Group.  If additional employees are needed from
outside the Work Group, they will be canvassed from the master seniority list.

 

26

 

ARTICLE 32

DURATION
OF AGREEMENT

 

This Agreement shall
remain in full force and effect until midnight, October 25, 2002, and
thereafter shall continue from year to year until either party gives the other
ninety (90) days prior written notice of a desire to change, modify or
terminate same.  If neither party gives
notice to terminate this Agreement, but one or both of the parties gives notice
as aforesaid of an intention to change or modify any of the terms or provisions
of this Agreement, representatives of the Company and the Union shall meet to
discuss, negotiate, and, if possible, agree upon such changes.  In the event such Agreement continues beyond
the expiration date of this Agreement, then the terms and conditions of this
Agreement shall remain in full force and effect until such time as said
negotiations have terminated, either by reason of the inability of the parties
to finally conclude a new Agreement, or because a new Agreement between the
parties has been concluded.

 

This Agreement shall be
binding on the parties hereto, their executors, administrators, and successors.

 

IN WITNESS WHEREOF, the
duly chosen representatives of the parties hereto affix their hands and seals
this 22nd day of October, 1999.

 

NICE BALL BEARINGS, INC.

 

	
  Michael Pfeiffenberger

  	
   

  	
  Plant Manager

  
	
   

  	
   

  	
   

  
	
  Michael Collins

  	
   

  	
  Engineering Manager

  
	
   

  	
   

  	
   

  
	
  Bonni Mauro

  	
   

  	
  Human Resources Manager

  

 

UNITED STEELWORKERS OF
AMERICA, AFL-CIO

 

	
  George F. Becker

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
  Leo W. Gerald

  	
   

  	
  Secretary/Treasurer

  
	
   

  	
   

  	
   

  
	
  Richard Davis

  	
   

  	
  Vice President -
  Administration

  
	
   

  	
   

  	
   

  
	
  L. Lynch

  	
   

  	
  Vice President - Human
  Affairs

  
	
   

  	
   

  	
   

  
	
  Andrew V. Palm

  	
   

  	
  District Director

  
	
   

  	
   

  	
   

  
	
  Norman Hayman

  	
   

  	
  Staff Representative

  
	
   

  	
   

  	
   

  
	
  John Haney

  	
   

  	
  President - Local Union
  6816-12

  
	
   

  	
   

  	
   

  
	
  Sharon Miller

  	
   

  	
  Vice President - Local
  Union 6816-12

  
	
   

  	
   

  	
   

  
	
  James Asher

  	
   

  	
  Chairman of Grievance
  Committee - Local Union 6816-12

  

 

27

 

Appendix
A

Pay for Knowledge and Skills

 

PRODUCTION

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  
	
  Hiring

  	
   

  	
  $

  	
  9.50

  	
   

  	
  $

  	
  9.50

  	
   

  	
  $

  	
  9.50

  	
   

  
	
  Starting

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  10.00

  	
   

  
	
  Basic

  	
   

  	
  $

  	
  10.65

  	
   

  	
  $

  	
  10.97

  	
   

  	
  $

  	
  11.30

  	
   

  
	
  Core

  	
   

  	
  $

  	
  13.65

  	
   

  	
  $

  	
  14.06

  	
   

  	
  $

  	
  14.48

  	
   

  
	
  Intermediate

  	
   

  	
  $

  	
  16.15

  	
   

  	
  $

  	
  16.63

  	
   

  	
  $

  	
  17.13

  	
   

  
	
  Advanced

  	
   

  	
  $

  	
  17.25

  	
   

  	
  $

  	
  17.77

  	
   

  	
  $

  	
  18.30

  	
   

  

 

 

SKILLED

 

Mechanics

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  
	
  Hiring

  	
   

  	
  $

  	
  10.50

  	
   

  	
  $

  	
  10.50

  	
   

  	
  $

  	
  10.50

  	
   

  
	
  Starting

  	
   

  	
  $

  	
  11.00

  	
   

  	
  $

  	
  11.00

  	
   

  	
  $

  	
  11.00

  	
   

  
	
  Basic

  	
   

  	
  $

  	
  11.45

  	
   

  	
  $

  	
  11.81

  	
   

  	
  $

  	
  12.18

  	
   

  
	
  Core

  	
   

  	
  $

  	
  14.45

  	
   

  	
  $

  	
  14.90

  	
   

  	
  $

  	
  15.36

  	
   

  
	
  Intermediate

  	
   

  	
  $

  	
  16.85

  	
   

  	
  $

  	
  17.47

  	
   

  	
  $

  	
  18.01

  	
   

  
	
  Advanced

  	
   

  	
  $

  	
  18.05

  	
   

  	
  $

  	
  18.60

  	
   

  	
  $

  	
  19.17

  	
   

  

 

 

Electronic
Technicians & Tool Makers

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  
	
  Hiring

  	
   

  	
  $

  	
  10.75

  	
   

  	
  $

  	
  10.75

  	
   

  	
  $

  	
  10.75

  	
   

  
	
  Starting

  	
   

  	
  $

  	
  11.25

  	
   

  	
  $

  	
  11.25

  	
   

  	
  $

  	
  11.25

  	
   

  
	
  Basic

  	
   

  	
  $

  	
  11.85

  	
   

  	
  $

  	
  12.21

  	
   

  	
  $

  	
  12.58

  	
   

  
	
  Core

  	
   

  	
  $

  	
  14.85

  	
   

  	
  $

  	
  15.30

  	
   

  	
  $

  	
  15.76

  	
   

  
	
  Intermediate

  	
   

  	
  $

  	
  17.35

  	
   

  	
  $

  	
  17.87

  	
   

  	
  $

  	
  18.41

  	
   

  
	
  Advanced

  	
   

  	
  $

  	
  18.45

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  19.57

  	
   

  

 

28

 

Appendix
B

Memorandum of Understanding

 

1.               All
memos of understanding will be printed in the contract booklet.

 

2.               New
pension benefits will be applicable to a ten (10) year employee on leave of
absence at the time the contract is executed and who retires prior to returning
from leave.

 

3.               All
Policy agreements now in effect will remain in effect unless changed through
negotiations or by the Union and Company Committees.

 

4.               Any
Agreement reached between the parties of a Policy Meeting must be reduced to
writing at the time of agreement. 
Without such written confirmation, there will be no agreement.

 

5.               An
employee will receive his vacation pay in weekly checks.  As an example, should an employee take three
(3) consecutive weeks of vacation he would receive three (3) separate weekly
checks.

 

6.               Prior
to the plant going out of business, the Company will notify the Union ninety
(90) days in advance.

 

7.               As
long as it is cost effective, janitorial responsibilities for the plant will be
performed by an outside janitorial service. 
Such duties shall include cleaning and maintaining lavatory facilities
and lockers, emptying dumpsters and cleaning water fountains.

 

8.               The
provisions agreed to in previous negotiations regarding the elimination of an
incentive system will remain in effect for the life of this Agreement,
including:

 

a)              Employees
affected by the elimination of the incentive system whose hourly rates were red
circled as a result of such shall continue to maintain their red circle rates.

b)             The
red circle will apply for any moves made within a Work Group including bidding
within a Work Group to a higher job; however, the red circle rate will not
apply to a downward move within a Work Group if there is more than $.20.

c)              The
foregoing is predicated on the red circle employee maintaining his
productivity, i.e. running the same number of machines, etc., which created the
average hourly earnings at which the employee was red circled.

d)             If
an employee is bumped from his job to another Work Group or is laid off from
the Company due to a reduction in force, the red circle rate will not apply.

e)              If
an employee bids off his job to another Work Group voluntarily, the red circle
rate will not apply.

f)                An
employee who is temporarily transferred for any reason will receive his red
circle rate of the job to which he is transferred, whichever is higher.

g)             If
an employee who has been bumped or laid off is recalled to the job from which
he was red circled, that employee’s red circle rate will be established.

h)             Red
circle rates are applicable only to incumbent incentive employees and may not
be transferred to others.

 

9.               The
Company shall continue the productivity gainsharing plan currently in effect.

 

10.         Overtime
hours scheduled prior to the beginning of a shift are not considered “as
such.”  An employee must work more than
8 hours in his 24-hour cycle in order to receive overtime, except on Saturday
and Sunday.

 

11.         The
Company will provide a payroll deduction for employees who live in Townships
requiring a 1% employment tax.

 

12.         Management
agrees to provide to the Union annual profit and loss statements for the
duration of this Agreement.

 

When
employees start the “C” shift on Sunday night at 11:00 PM, the first hour
worked (11:00 PM to 12:00 AM midnight) will be paid at double time.

 

29

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