Document:

Exhibit 10.18

 

December 12,
2007

 

Mr. Dennis Hanson

Senior
Executive Vice President

Steinway
Musical Instruments, Inc.

800
South Street, Suite 305

Waltham,
MA  02453-1439

 

Re:                             Loan and Security Documents
(collectively, the “Loan Documents”) among Conn-Selmer, Inc. (“Conn-Selmer”),
Steinway, Inc. (“Steinway” and together with Conn-Selmer, the “Borrowers”),
the guarantors party thereto (“Guarantors”), the lenders party thereto (“Lenders”)
and GMAC Commercial Finance LLC, as administrative agent (the “Administrative
Agent”).

 

Dear
Mr. Hanson:

 

This
letter will constitute an amendment to the Third Amended and Restated Credit
Agreement, dated as of September 29, 2006 (as the same may be amended,
restated or modified from time to time, the “Credit Agreement”), among
the Borrowers, the Guarantors, the Lenders and Administrative Agent.  Unless defined in this letter, capitalized
terms shall have the meanings set forth in the Credit Agreement and references
to Sections are to Sections of the Credit Agreement.

 

Borrowers
have advised Lenders that they desire to repurchase stock in excess of the
amount currently allowed under the Credit Agreement and have requested that the
Lenders amend the Credit Agreement to increase the dividend and stock
repurchase basket by $10 million in order to allow such action.  Accordingly, Section 9.9(c) of
the Credit Agreement is amended and restated in its entirety to read as
follows:

 

“(c) Redeem, repurchase, retire or otherwise
acquire or distribute dividends in respect of the stock of any Loan Party in an
aggregate amount not to exceed (A) $35,000,000 plus (B) fifty
percent (50%) of the cumulative consolidated SMI net income earned after January 1, 2006
through the Termination Date (the “Allowed Investment Amount”); provided
that, immediately after giving effect to any such transaction, Excess
Availability shall not be less than $25,000,000.”

 

Each
Borrower (a) reaffirms, ratifies and confirms its obligations under the
Loan Documents as amended hereby and acknowledges that all of the terms and
conditions in the Loan Documents remain in full force and effect, and (b) acknowledges
that no further approvals or authorizations are needed to execute this letter
amendment.

 

 

By
execution of this letter amendment by the Required Lenders, Borrowers and
Guarantors in the spaces provided below, the Credit Agreement is amended as
provided above.

 

2

 

This
letter amendment, may be executed in any number of counterparts, (including by
facsimile transmission of signature pages hereto) and all of said
counterparts taken together shall be deemed to constitute one and the same
letter.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL FINANCE LLC,

  
	
   

  	
  as Administrative Agent and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Joseph Skaferowsky

  
	
   

  	
   

  	
  Name: 

  	
  Joseph Skaferowsky

  
	
   

  	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christopher M. O’Halloran

  
	
   

  	
   

  	
  Name: 

  	
  Christopher M. O’Halloran

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Kim Nguyen

  
	
   

  	
   

  	
  Name: 

  	
  Kim Nguyen

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  TD BANKNORTH, N.A.,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Matthew Leighton

  
	
   

  	
   

  	
  Name: 

  	
  Matthew Leighton

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BUSINESS CREDIT, LLC,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christopher M. O’Halloran

  
	
   

  	
   

  	
  Name: 

  	
  Christopher M. O’Halloran

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Officer

  
					

 

3

 

	
   

  	
  ISRAEL DISCOUNT BANK OF NEW YORK,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ James M. Morton

  
	
   

  	
   

  	
  Name: 

  	
  James M. Morton

  
	
   

  	
   

  	
  Title: 

  	
  First Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Ronald Bongiovanni

  
	
   

  	
   

  	
  Name: 

  	
  Ronald Bongiovanni

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President I

  
						

 

 

	
  Agreed
  to and accepted by:

  	
   

  
	
   

  	
   

  
	
  CONN-SELMER,
  INC., as Borrower

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Dennis M. Hanson

  	
   

  
	
   

  	
  Name:
  

  	
  Dennis
  M. Hanson

  	
   

  
	
   

  	
  Title:
  

  	
  Executive
  Vice President

  	
   

  
	
   

  	
   

  
	
  STEINWAY,
  INC., as Borrower

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Dennis M. Hanson

  	
   

  
	
   

  	
  Name:
  

  	
  Dennis
  M. Hanson

  	
   

  
	
   

  	
  Title:
  

  	
  Executive
  Vice President

  	
   

  
	
   

  	
   

  
	
  Consented
  to by:

  	
   

  
	
   

  	
   

  
	
  STEINWAY
  MUSICAL INSTRUMENTS, INC.,

  	
   

  
	
  as  Guarantor

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Dennis M. Hanson

  	
   

  
	
   

  	
  Name:
  

  	
  Dennis
  M. Hanson

  	
   

  
	
   

  	
  Title:
  

  	
  Senior
  Executive V.P. and CFO

  	
   

  
	
   

  	
   

  
	
  THE
  O.S. KELLY COMPANY, as Guarantor

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Dennis M. Hanson

  	
   

  
	
   

  	
  Name:
  

  	
  Dennis
  M. Hanson

  	
   

  
	
   

  	
  Title:
  

  	
  Executive
  Vice President

  	
   

  
								

 

4EXHIBIT
10.20

 

 

AGREEMENT

 

 

between

 

 

CONN-SELMER,  INC.

 

 

and

 

 

U.A.W. LOCAL
2359

 

 

February 15,
2008

 

Thru

 

February 15,
2011

 

1

 

TABLE OF
CONTENTS

 

	
  A

  
	
   

  
	
  Absence 

  	
   

  
	
  Attendance Policies

  	
   

  
	
   

  	
   

  
	
  B

  
	
   

  
	
  Benefits

  	
   

  
	
  Dental
  Plan

  	
   

  
	
  Flexible
  Spending Account

  	
   

  
	
  Hospitalization
  Plan

  	
   

  
	
  Life
  Insurance and AD&D

  	
   

  
	
  Pension

  	
   

  
	
  Sickness &
  Accident

  	
   

  
	
  Vision
  Plan

  	
   

  
	
  Benefits Waiting Period

  	
   

  
	
  Bereavement Pay

  	
   

  
	
  Bulletin Boards

  	
   

  
	
   

  	
   

  
	
  C

  
	
   

  
	
  Call Back

  	
   

  
	
  Claims Processing

  	
   

  
	
  COBRA

  	
   

  
	
  Committee Changes

  	
   

  
	
  Company Rules,
  Regulations & Policies

  	
   

  
	
   

  	
   

  
	
  D

  
	
   

  
	
  Dental Plan

  	
   

  
	
  Departmental Stewards

  	
   

  
	
  Discharge Procedures &
  Grievances

  	
   

  
	
  Disciplinary Action Shop
  Committee & Stewards

  	
   

  
	
  Double Time

  	
   

  

 

2

 

	
  Duration of Agreement

  	
   

  
	
   

  	
   

  
	
  F

  
	
   

  
	
  Family & Medical Leave

  	
   

  
	
  Flexible Spending Accounts

  	
   

  
	
  Fringes & Scope of the
  Agreement

  	
   

  
	
   

  	
   

  
	
  G

  
	
   

  
	
  General Provisions

  	
   

  
	
  Grievance Procedure

  	
   

  
	
  Group Leader Pay

  	
   

  
	
   

  	
   

  
	
  H

  
	
   

  
	
  Holiday Pay Qualifications

  	
   

  
	
  Holidays

  	
   

  
	
  Hospitalization Plans

  	
   

  
	
   

  	
   

  
	
  I

  
	
   

  
	
  Injury Reporting

  	
   

  
	
  Instructor Pay

  	
   

  
	
  Intent of Dispute Adjustments

  	
   

  
	
   

  	
   

  
	
  J

  
	
   

  
	
  Job Posting and Bidding

  	
   

  
	
  Job Classifications and Hourly
  Rates

  	
   

  
	
  Judy Duty

  	
   

  
	
   

  	
   

  
	
  L

  
	
   

  
	
  Lateness

  	
   

  
	
  Lay-Off Procedure

  	
   

  
	
  Lay-Off Clause

  	
   

  
	
  Leave of Absence

  	
   

  
	
  Letters of Understanding(s)

  	
   

  
	
  Life Insurance and AD&D

  	
   

  
	
  Lost Time – Injury

  	
   

  
	
   

  	
   

  
	
  M

  
	
   

  
	
  Major Attendance Policy

  	
   

  

 

3

 

	
  Management

  	
   

  
	
  Medical Disqualifications

  	
   

  
	
  Medical Examination

  	
   

  
	
  Medicare Insurance Premium

  	
   

  
	
  Memorandum of Agreement(s)

  	
   

  
	
  Minor Attendance Policy

  	
   

  
	
   

  	
   

  
	
  N

  
	
   

  
	
  New Employee Classification

  	
   

  
	
  Nondiscrimination

  	
   

  
	
  Normal Work Week

  	
   

  
	
  Nortification of Address Changes

  	
   

  
	
  Notification of Job Status

  	
   

  
	
  No Strike/No Lockout

  	
   

  
	
  No Work

  	
   

  
	
   

  	
   

  
	
  O

  
	
   

  
	
  Out Early

  	
   

  
	
  Opt-Out Program

  	
   

  
	
  Overtime

  	
   

  
	
   

  	
   

  
	
  P

  
	
   

  
	
  Pension

  	
   

  
	
  Personal Holiday

  	
   

  
	
  Probationary Period.

  	
   

  
	
   

  	
   

  
	
  Q

  
	
   

  
	
  Quality, Cost, Delivery and Safety

  	
   

  
	
   

  	
   

  
	
  R

  
	
   

  
	
  Reassignment to Bargaining Unit

  	
   

  
	
  Recall Procedure

  	
   

  
	
  Recognition

  	
   

  
	
  Re-Negotiation

  	
   

  
	
  Representation

  	
   

  
	
  Rest Periods

  	
   

  

 

4

 

	
  Retirement Agreement

  	
   

  
	
  Retiree Insurance Premium

  	
   

  
	
   

  	
   

  
	
  S

  
	
   

  
	
  Seniority

  	
   

  
	
  Seniority Forfeiture

  	
   

  
	
  Seniority Grievances

  	
   

  
	
  Seniority Rolls

  	
   

  
	
  Shift Differentials

  	
   

  
	
  Sickness & Accident Weekly
  Benefit

  	
   

  
	
  Special Rates

  	
   

  
	
  Superseniority Status

  	
   

  
	
  Supervisors Working

  	
   

  
	
   

  	
   

  
	
  T

  
	
   

  
	
  Telephone Usage

  	
   

  
	
  Temporary Employee

  	
   

  
	
  Temporary Reductions

  	
   

  
	
  Temporary Transfers

  	
   

  
	
  Time and One-Half

  	
   

  
	
  Time and Attendance, Labor
  Reporting

  	
   

  
	
  Traditional Hourly Rates

  	
   

  
	
  Transfer into Bargaining Unit

  	
   

  
	
  Transportation to Company Doctor

  	
   

  
	
   

  	
   

  
	
  U

  
	
   

  
	
  Union Activities

  	
   

  
	
  Union Security

  	
   

  
	
  Union Shop Committee

  	
   

  
	
   

  	
   

  
	
  V

  
	
   

  
	
  Vacation

  	
   

  
	
  “Call-In”
  Vacation

  	
   

  
	
  Lost
  Time Allowances

  	
   

  
	
  Lost
  Time Qualifications

  	
   

  

 

5

 

	
  Vacation
  Pay

  	
   

  
	
  Vacation
  Requirements

  	
   

  
	
  Vacation
  Period

  	
   

  
	
  Vision
  Plan

  	
   

  
	
   

  	
   

  
	
  W

  
	
   

  
	
  Wage
  Rates

  	
   

  
	
  Work
  Schedule

  	
   

  
	
  Workers’
  Compensation

  	
   

  

 

6

 

COLLECTIVE BARGAINING AGREEMENT

 

THE
AGREEMENT, made and entered into as of the 15th  day of February, 2008 through February 15, 2011 by and between
CONN-SELMER, INC., whose office is located at 34199 Curtis Boulevard, Eastlake,
Ohio, (hereinafter designated as the Company) and U.A.W. Local 2359
(hereinafter designated as the Union).

 

NONDISCRIMINATION.  The company and the
union are committed to the optimum utilization of human resources and equal
opportunity.  Job applicants and
employees are evaluated on the basis of job qualifications – not age,
disability, gender, national origin, race, religion, or any other legally
protected group characteristic.  The
company and the union are committed to maintaining a place of employment that
is safe, productive, and free from any form of harassment or violence.  The company and the union each agree that
they shall not discriminate against any employee who exercises any legally
protected rights.  The company will not
discriminate against any employee because of membership in the union.

 

ARTICLE I –
MANAGEMENT

 

Section A. Subject to the provision of this Agreement, it is
expressly understood and agreed that the right to manage the Plant and direct
the work force is vested exclusively in Management. and that all rights not
specifically modified in the Agreement are retained by the Company including
the rights to hire, suspend, or discharge for proper cause, or transfer, and
the right to relieve employee from duty because of lack of work, or for any
other legitimate reason are vested exclusively in the Company, provided that this will not be used for purpose of
discrimination against any member of the Union.

 

ARTICLE II –
RECOGNITION

 

The
Company recognizes the Union as the sole and exclusive bargaining agency for
all its employees (except supervision, plant protection, and office workers)
with respect to rates of pay, working conditions and hours or days of work.

 

7

 

ARTICLE III –
REPRESENTATION

 

Section A.
UNION SHOP COMMITTEE. The
Union shall be represented by a Shop Committee of not more than five (5) members
nor less than three (3) members, all of whom shall be employees of the
Company, shall have completed their probationary period with the Company as
herein provided, and shall be chosen by members of the Union.

 

The
Union Shop Committee shall negotiate in the manner as hereinafter provided with
the Company on grievances that may arise in the Plant.  International Union Officials may be called
in by the Shop Committee to assist in these negotiations.

 

Section B.
DEPARTMENTAL STEWARDS. The
Union, in addition to the Shop Committee, shall be represented by Departmental
Stewards who shall be employees of the Company, having completed their
probationary period, and shall be chosen by and from members of the Union on a
basis of one (1) Steward for each Supervisor, with the assurance of a
minimum of one (1) Steward for each work shift scheduled by the Company.

 

In the
application of the above, it is agreed, the Union shall be entitled to a
Steward for each designated Department or group of Departments.

 

Section C.
COMMITTEE CHANGES. The Union
agrees to keep the Company informed at all times of who constitutes the Shop
Committee and the Stewards’ Committee, also when changes in said Committees are
made.

 

Section D. DISCIPLINARY ACTION: SHOP COMMITTEE AND STEWARDS. A twenty-four hour grace
period will be given to the Shop Committee and Department Stewards when they
are personally involved in disciplinary action that warrants suspension or
discharge, the Chairman will be advised of disciplinary action for
investigation before disciplinary action takes effect.

 

ARTICLE IV -  HOURS AND OVERTIME

 

Section A. NORMAL WORK WEEK. For all hourly employees,
the normal work week shall consist of five (5) days, Monday through
Friday, of eight (8) hours each. 
The work schedule for 

 

8

 

certain employees, because of the nature of their duties may
deviate from the normal work week schedule – as needed for business purposes.

 

The normal work week is as follows:

 

	
  1st Shift

  	
   

  	
  6:15 – 2:45

  
	
  2nd Shift

  	
   

  	
  2:45 –  11:15

  
	
  3rd Shift

  	
   

  	
  10:15 – 6:45

  

 

Section B. TIME AND ONE-HALF. All work performed in
excess of eight (8) hours during any regular working day or work performed
on Saturday, outside of the week as above defined,  work week, shall be paid for at the rate of
time and one-half their hourly rate of pay. Employees shall receive time and
one-half for all overtime worked.  The
pay to be computed on the average  hourly earnings for the week the
overtime is worked.

 

Section C. OVERTIME. Employees shall be paid time and one-half for all
time worked prior to their scheduled starting time or after their scheduled
quitting time, once they have completed eight (8) hours.

 

An employee’s scheduled starting and quitting time as
scheduled on Monday for the week shall be considered the employee’s scheduled
starting and quitting times for the remainder of the work week unless mutually
agreed upon between the Company and the Union.

 

The
Company agrees to seek volunteers for available overtime by priority of
classification, qualification, and overall seniority. For the purpose of
maintaining efficient operations and complying with customer requirements, the
Company shall have the right to institute daily overtime or to extend the work
week.  Lacking enough volunteers,
it shall assign as many junior qualified employees as needed in that
classification or department to perform the work.  In the application of this
provision, no employee shall be required to work in excess of ten (10) overtime
hours per week and not for more than three (3) consecutive weeks.  A list of employees scheduled for Saturday
overtime will be solicited by Thursday, 11:15 a.m. (when feasible) , and
will be posted by 2:45 p.m.

 

9

 

Thursday,
and any disputes arising from the posted list must be communicated before 2:45 p.m.
Friday,
otherwise a grievance for a seniority claim may not be submitted.

 

Section D.
DOUBLE TIME - Work performed
on Sundays shall be paid for at the rate of double time.  Work performed on the thirteen (13) Holidays
in 2008, and the thirteen (13) Holidays in 2009, and the thirteen (13) Holidays
in 2010, shall be paid for at the rate of double time in addition to Holiday
Pay.

 

Section E.
NO WORK - When employees
report for work, not having been properly notified in advance that there will
be no work, and prevented from performing their jobs that day through no fault
of their own, they shall be guaranteed four (4) hours work or four (4) hours
pay at their hourly rate, if no other work is available for assignments; in no
event shall they be paid for less than four (4) hours.

 

However,
this section shall not apply if the Company is unable to operate its plant or
any portion thereof due to an act of Nature, utility failure, mechanical
breakdown, government restriction, fire, flood, riot, civil commotion, or labor
dispute. , unless the mechanical breakdown or fire is caused by the company’s
negligence.

 

Section F.
ABSENCE and ATTENDANCE POLICY

 

LATENESS.  It has been
established that if an employee is going to be late for work, he/she must call
his/her Supervisor or leave a detailed message on the voice message system and
advise him/her at what time he/she will arrive. 
This must be done within two (2) hours from starting time.

 

This is necessary in order for the Supervisor to organize the
work load in his/her department so production is not lost for the day.

 

Should he/she not call in and advise the Supervisor that
he/she is going to be late, he/she will not be allowed in the Plant two (2) hours
from starting and will be marked absent for the day.

 

This rule shall not apply if the weather is a factor in
preventing the employee from arriving on schedule.

 

10

 

OUT EARLY:

 

Employees will not be permitted to leave work early, and will
be charged with lost time except for the following reasons:

 

a)     Lack of work.

b)    Obviously ill and unable to continue to work.

c)     Emergency call from family, requiring employee to leave.  Verification may be requested.

d)    Workers’ Compensation injury or illness.

 

ABSENCE.  It has been
established that if an employee is going to be absent from work, they must call
their Supervisor, Human Resources Resources, or leave a detailed message on the
voice message system and advise them that they will be absent.  This should be done within two (2) hours
from starting time.

 

1.        One day sickness will not be excused, unless:

 

a)     Physician’s slip is presented by employee upon return to work.

b)    Employee was sent home the day before because of obvious illness, and
return on following day doubtful.

 

2.        Two day sicknesses will not be excused, unless physician’s
slip is presented by employee upon return to work.

 

3.        Employees returning to work after missing three (3) or
more days because of illness will not be permitted to work without physician’s
slip stating employee is able to perform regular duties.  Physician’s slip must be presented by
employee upon return to work.

 

4.        Absence from work for reason other than illness will not be
excused unless employee received permission from the Human Resources Manager or
the Plant Manager (or their alternate as needed) prior to absence.  Court and legal appointments that are related
to an employee’s infraction of the law are not excused “whole day”
absences.  All court and legal
appointments, handled on a reporting late or an out early basis, will be
excused (with advance notification, provided documentation is submitted upon
return to work).  “Whole day” absence,
for court and legal appointments that are not related to an employee’s
infraction of the law,

 

11

 

will be excused (with advance notification, provided documentation
is submitted upon return to work).

 

5.        Death in family, jury duty, etc. will be excused absences
once verification is presented.

 

6.        “Emergencies” that occur between work shifts will be handled
on an individual basis.  The Human
Resource Manager must be consulted before excusing absence.

 

7.        Previously scheduled overtime for a Saturday and/or Sunday
(hereinafter called “weekend overtime”) will be assigned in accordance with the
established procedure, however, any unexcused absence will fall under the
following guideline:

 

a.     All unexcused weekend
overtime missed will be charged at scheduled time.  (i.e., 5 hrs. o.t. =  5 hrs missed.)

 

8.        Any jail time preventing an employee’s ability to report to
work will not be viewed as an excused absence. 
The Company will not issue any leaves of absence towards time spent in
jail.  Each consecutive day in jail will
be charged against the 16 Hour Policy (Infractions of a Minor Nature, #1).  The number of days permitted will depend upon
the number of warnings the employee’s personnel record can support, to a
maximum of nine (9) days.  Any time
in jail beyond what the employee’s record can support will lead to
dismissal.  Should the employee not be
convicted, all jail time will not be charged against the 10 Hour Policy or the
40 Hour Policy.

 

MINOR ATTENDANCE POLICY

 

10-Hour Policy - Accumulated
10 hours or more unexcused absence during a four (4) week period

 

Corrective Action:

 

·      1st offense – file note

·      2nd offense – written warning

·      3rd offense - written warning with
counseling

·      4th offense – termination

 

OR

 

12

 

Lateness – four (4) latenesses
in a four (4) week period.

 

Corrective Action:

 

·      1st offense – file note

·      2nd offense – written warning

·      3rd offense - written warning with
counseling

·      4th offense – termination

 

OR

 

Corrective Action total for above:

 

·      Four (4) total Minor Attendance warnings =
termination

 

MAJOR ATTENDANCE POLICY

 

Excessive Absenteeism - Includes the following missed work time:

 

·          40 hours accumulated lost time per three (3) months includes:

 

·      Out Early, excused and unexcused

·      Absences, excused and unexcused

·      All latenesses

·      Leave of absences, personal/medical/FMLA, if approved
will not count toward hours included under the Excessive Absentee Policy.

 

Corrective Action:

 

·      1st Offense – File Note

·      2nd Offense – Written warning with counseling

·      3rd Offense – Termination

 

All
warnings will remain in effect twelve (12) months from time of infraction.

 

Section G.
LEAVE OF ABSENCE:

 

1.            An employee may be granted a leave of absence, by the
company, upon written request to a Supervisor for a period not to exceed two (2) calendar
weeks in any one year, for a minimum of two (2) days (single days will
only be approved when combined with remaining vacation days, or with a personal
holiday request), but will not be granted a leave to work at any other job or
business. Earned but unused Vacation days must be used first.

 

13

 

Insurance and Hospitalization benefits will
continue.  Any grievance arising out of
the application of the provision shall be subject to negotiation between the
Company and Union.

 

Examples of such absences are personal business,
family matters, etc.  Company may request
verification.

 

2.             By agreement between the Company and the Union Shop
Committee, employees may be granted a leave of absence for a definite period of
time not to exceed one-half (1/2) their seniority length and in no event to
exceed one (1) year without prejudice to seniority for one or more of the
following reasons:

 

a)             Death or serious illness in family.

 

b)            Personal affairs involving legal settlement.

 

During such leave of absence, the employee shall only
accumulate seniority and all benefits are temporarily withheld until employee
returns, at which time the benefits will be reinstated.

 

3.             Employees shall be granted a leave of absence, not to
exceed 3 years,  for illness or injury
causing confinement to a Hospital or at home under physician’s care - provided
a physician’s certificate is presented and proof of continued disability is
supplied as requested.

 

4.             This could also include outpatient treatment as
prescribed by an attending physician which qualifies under the medical plan.

 

5.             See Contract for Benefit schedule of Sickness and
Accident Weekly Benefits.

 

6.              “S & A Benefit Medical” forms may be
obtained from the Human Resources office.

 

7.             Leave of absences, personal/medical, if approved, will
not count toward hours included under the Excessive Absentee Policy.

 

8.             A “Leave of Absence” form may be obtained from
Supervisor or the Human Resources office.

 

14

 

9.             During such leave of absence due to personal injury or
illness, the employee shall accumulate seniority and all Sickness and Accident
payments (based upon the direction of the third party administrator) and Life
Insurance benefits (based upon successful filing of a waiver of premium)  shall continue for their defined term.  During such leave for Workers’ Compensation, Life Insurance
benefits shall continue for their defined term (based upon successful filing of
a waiver of premium).   Coverage of Hospitalization/Dental Benefits,
for Sickness and Accident Leaves, are paid for a period of six (6) months.  COBRA will be effective after the initial six
(6) months at a subsidized rate equal to the normal payroll amount for an
additional six (6) months. 
Employees, for both Sickness and Accident and Workers’ Compensation
Leaves, are responsible for Hospitalization/Dental Contribution amount during
leave period.  Benefit levels and
contributions will be consistent with the current collective bargaining
agreement.  Contributions must be paid to
the designated third party administrator on a monthly basis, prior to the next
effective month due, otherwise benefits will be cancelled (continuation could
otherwise be made available through the terms defined by COBRA).

 

10.           Family and Medical Leave Act (FMLA) -

 

An employee, under the terms specified for Family and Medical
Leave, with twelve (12) months of service and at least 1,250 hours worked, may
be granted up to twelve (12) weeks of unpaid leave based on a twelve month
rolling calendar for the following reasons:

 

1.         The birth or placement for adoption or foster care of a child.
Leave taken for the birth of a child or the placement of a child for adoption
or foster care must be a consecutive twelve (12) week period completed within
twelve (12) months after the date of birth or placement.

 

2.         The need for the employee to care for a spouse, parent, child
with a serious health condition.

 

15

 

3.         The employee’s own serious health condition.

 

Additionally, medical certification and continued
documentation for intermittent absences will be required for such absence in
accordance with the Act, and the regulations promulgated thereunder.

 

A.        Status of Accrued Paid Time

 

Although FMLA leave is generally unpaid, employees on FMLA
leave may receive workers’ compensaton benefits or disability benefits (for
non-occupational conditions), if the employee qualifies for either of those
benefits.  These benefits will run
concurrent.

 

If the leave is for the care of a spouse, parent and/or
child, the employee may be required to take any remaining vacation days at the
beginning of the FMLA leave.

 

If the
need for FMLA is foreseeable (such as planned surgeries or normal births),
thirty (30) day notice is requested.  If
the need for FMLA is unforeseeable (such as serious injury or illness, or a
premature birth), you must notify the company as soon as possible, and in no
event, more than two (2) days after knowing of the need for a leave.  Formal notice is further accomplished by
submitting a FMLA Application Form.  FMLA
Application Forms must be submitted within fifteen (15) calendar days of a
return from an unforeseeable serious health condition for either the employee,
or a defined family member, or the absence will not be regarded as FMLA and
will be subject to the terms of the attendance rules.

 

16

 

B.         Status of Benefits

 

Health
care coverages (as defined by COBRA) will continue under the same terms and
conditions as while actively at work. 
Employee will be responsible for continuing to make contributions to
these plans while on leave.

 

FMLA leave will not constitute a break in the employee’s
record of continuous service and the period of such leave of absence shall be
included in the records as continuous service. 
Employees, following FMLA leave, will be restored to their original job
and pay rate.  The only exception would
be changes that would have affected the employee if he / she had not gone on
leave.

 

These
terms are subject to review if the corresponding FMLA regulations are revised
or changed.

 

Section H.
WORK SCHEDULE - The employee
is to be notified on Thursday, by 12:00 p.m. if the work schedule for the
coming week is going to be changed, so that the employee has enough time to
make arrangements if necessary.

 

If a
department is advised ahead of time as required about the schedule change, they
must work eight (8) hours before overtime is paid.

 

Only
when the Company changes the schedule out of order does an employee receive
overtime for the time worked prior to set schedule or time after set schedule
no matter how many hours they work that day.

 

Section I.
CALL BACK. Any employee being
called back to perform a task shall be paid four (4) hours at straight
time pay or which ever is higher, their hourly rate, in the event of overtime
or a Holiday.

 

Section J.
NOTIFICATION OF ADDRESS CHANGE.
It is the responsibility of each employee to keep the Human Resources
Department informed of current address and telephone number.  

 

17

 

Attempts
to reach the employee at the telephone number currently listed in the Human
Resources Department’s files shall constitute proper notice.

 

Section K.
TIME AND ATTENDANCE, LABOR REPORTING. Each employee shall be required to enter his or her own attendance and
labor transactions into the data collection system.  Employee shall be responsible for the
accuracy of the count and time entered for all transactions.  Employees should be at their appointed place
of work when signal is given for work to begin and should remain at their work
until signal is given to quit.

 

ARTICLE V -
SENIORITY

 

Section A.
SENIORITY.  Will commence on the first day worked
regardless of when employment was first offered by any Company representative.

 

Section B.
PROBATIONARY PERIOD.   All new employees shall be considered as on
probation for a period of 6 months.  The
performance of any new employee will be evaluated each month for the first 3
months and will then follow the increase minimum/maximum guidelines as stated
in the contract.   At 2 months, they are
entitled to Holiday Pay.  At 3 months,
they are entitled to Personal Holiday and Benefits.

 

All
probationary employees having over 13 weeks of service with the company, and
are being discharged for inability to perform job duties may take the matter up
with their department steward and apply the discharge procedures as outlined in
the CBA.  Employees who may be discharged
for Minor Infractions related to absenteeism; and who may be discharged for any
Major Infractions will not have consideration under the discharge and grievance
procedures.

 

Section C.
SUPERSENIORITY STATUS. The
Chairman of the Shop Committee and all members of the Shop Committee handling
all matters concerning the Grievance Procedure shall head the plant-wide
seniority list during their terms of office. 
Any member of the shop committee who at the time of election is on
second or third shift will be assigned to the first shift within their
respective classification.  Such shop
committee member transferred from other than first shift will 

 

18

 

replace
the employee within their classification, with the lowest plant-wide seniority,
unless they can be otherwise absorbed into their classification.  This would not apply to temporary transfers
between shifts for up to thirty (30) days. 
If there is a reduction in the work force during the term of office of
the Grievance Committeeperson, they will remain at work in their respective
departments regardless of seniority unless the entire department is laid off.

 

The
Committee must be able to do the job in accordance with the bumping
procedure.  This superseniority status is
applicable to layoffs only, and employees will return to their original
positions on the seniority list at the termination of their terms in
office.  The Department Stewards shall
head the seniority list in their respective departments during their term of
office.  This superseniority status is
applicable to layoffs only, and employees will return to their original
positions at the termination of their terms of office.

 

Section D.
MEDICAL DISQUALIFICATIONS.
Medical conditions that create a permanent inability for an employee to perform
their present job will result in:

 

a.             return to job they have previously satisfactorily
performed, providing there is an opening, providing they have seniority.

 

b.             seniority prevailing, accept an open job that meets
the stipulated work restrictions (failure to accept an open job will be construed
as a voluntary quit).

 

c.             a lay-off.

 

Section E.
LAY-OFF PROCEDURE.  When it becomes necessary to reduce the work
force for an indefinite period in a department or within a work cell, the
reduction will be made according to job classifications, and employees will be
notified three (3) normal working days in advance.  It is understood and agreed that in all cases
of reduction in workforce, seniority shall be the determining factor so long as
those employees remaining in affected job classifications have the skills and abilities to ensure continued efficient operations of the
Company.

 

19

 

When a reduction in
workforce is implemented in a department, the following procedure will govern,
seniority prevailing, provided that affected employees have the skills and
abilities to perform available jobs:

 

1.                                   Probationary employees
in the department shall be laid off before any employee having seniority in
that department is affected.

 

a.             Employees on inactive status for
sickness and accident, workers’ compensation, FMLA, or personal leave, while
other senior employees within their classification are moved to lay-off status,
will be moved to layoff status.

 

2.                                   If further reduction is
necessary, employees having seniority shall be entitled to displace other
employees within the department in accordance with the following:

 

a.                                       Displace the employee
having the least seniority in an occupation he/she had previously
satisfactorily performed while in the employ of the Company.

 

b.                                      If employees cannot
displace employees in jobs previously satisfactorily performed, they shall be
entitled to displace the employee having the least seniority in an occupation
he/she is able to perform without further training.

 

c.                                       Bumping rights for those
inactive at the time of lay off, may be invoked at the time said employee is
scheduled to return, or is released to return to work.  Bumping rights under these circumstances,
expire the working day following the scheduled return date.  Recall rights will be extended for the normal
defined term (one-half seniority to a maximum of three (3) years)
effective with the date of lay off; however, recall rights will not be extended
until the employee is scheduled to return or is released to return to work.

 

3.                                   Any employee having
seniority displaced from a department in accordance with the above procedure
shall be entitled to displace employees in other departments in accordance with
the following:

 

20

 

a.                                       Displace the employee
having the least seniority in an occupation he/she had previously
satisfactorily performed while in the employ of the Company.

 

b.                                      If employee cannot
displace employees in jobs previously satisfactorily performed, they shall be
entitled to displace the employee having the least seniority in an occupation
he/she is able to perform without further training.

 

c.                                       If employee is displaced
from original bump by a senior employee with more seniority who can perform the
job without training, the employee may again exercise his/her bumping
privileges.  Only the senior employee
will be considered for each multi-bump situation.

 

4.                                   In recognition of the
Company’s responsibility to maintain efficient operations, it is understood and
agreed that the following criteria shall apply to employees displacing other
employees in accordance with the above procedure:

 

a.                                       Employee will have five (5) working
days (employee with fifteen (15) years seniority will be offered up to ten (10) working
days) during which to demonstrate ability to satisfactorily perform the work
with the opportunity for familiarization of equipment and work area, without
training.  At the end of this period,
employee must be performing at the established production standard.

 

5.                                   If an employee fails to
displace another employee, due to lack of skills or abilities, he/she shall be
placed on layoff status, with the right to recall only to:

 

a.                                       His/her regular job; or

 

b.                                      A job he/she previously
satisfactorily performed; or

 

c.                                       Bottom of lay-off list.

 

6.                                   Should an employee
choose not to exercise his/her seniority rights under this Section, he/she
shall be placed on layoff status, relative to seniority.

 

21

 

Employees
accepting jobs in accordance with the above procedures shall be paid at the
current rate for the job.  Employees
accepting jobs in accordance with the above procedures may, with seniority
prevailing, exercise shift preference.

 

Section F.
RECALL PROCEDURE. When it becomes necessary to recall employees from layoff,
or to re-man a department after a reduction, the following procedure shall be
applied:

 

1.                                       The Company shall
determine with seniority prevailing whether there are displaced employees
working elsewhere in the plant or on the layoff list who previously performed
in the job classification.  Employee will
be reassigned to an open job in accordance to the following procedure:

 

a.               performed job within the past ten (10) 
years.

 

b.              satisfactorily performed the job for
a minimum of a two (2) year period.

 

c.               employee will have five (5) days
for familiarization and minimal training during which to demonstrate ability to
satisfactorily perform the work.  At the
end of this period, employee must be performing at the established production
standard.

 

d.              if an employee fails to
satisfactorily perform the work as required above due to lack of skills or
abilities under this Section, the employee shall be placed on layoff status,
with the right to recall only to his/her original job.

 

e.               employees accepting jobs in
accordance with the above procedures shall be paid at the current rate for the
job.

 

f.                 employees bypassed shall retain their
relative positions on the lay-off list.

 

2.                                       Should open jobs become
available and the employee was unable to qualify for the above, employee will
be recalled from the layoff list in accordance with their seniority, provided
that employee has the skills and abilities to perform the available jobs.  Displaced employee taking available job shall
not be reassigned to their original job once they have chosen to sign a Job
Bid, or 

 

22

 

have
completed one (1) year in their new job classification.  Employees bypassed shall retain their
relative positions on the lay-off list.

 

3.                                       Should employees be
unable to qualify for the above, they will be recalled to available jobs
denoted by an asterisk on the Job Classification list, by using plant wide
seniority of those employees on the lay-off list.  If the employee’s original job should
re-open, the employee must return to that original job.  Employees bypassed shall retain their
relative positions on the lay-off list.

 

4.                                       Employees recalled from
the layoff list to their original jobs refusing to return to such jobs, shall
be considered having quit, forfeiting all accumulated seniority.

 

5.                                       Employees recalled from
the layoff list to available work refusing such job shall be placed at the
bottom of the layoff list.  However, upon
second refusal of recall to available work, employees shall be considered on
layoff until original job becomes available, or Article V, Section F.,
#2., becomes applicable.

 

6.                                       It is understood and
agreed that the recall and re-manning procedures contained in this Agreement
will be invoked only when full time, permanent jobs become available.  Should temporary jobs become available, the
Company shall exercise its prerogative to fill those vacancies, within the
limitations of this Agreement, after having first advised the Union.

 

Section G.
TEMPORARY REDUCTIONS. The work week shall not be less than thirty-two (32)
hours, consisting of four (4) eight (8) hour days, for a period of
not longer than six (6) weeks and then the Company and the Union shall
meet to consider the advisability of continuing the thirty-two (32) hour week
or reducing the number of employees according to seniority.  This clause does not apply to a temporary
reduction in a certain department or work cell due to lack of work, shortage of
material, overstock or temporary setback of production.  A temporary reduction in a department will be
of definite duration, not to exceed one (1) week, in which case employees
will be placed on layoff status, without invoking Article V, Section E.  Should the temporary reduction exceed one (1) week,
the Company and Union shall meet to discuss the advisability of reducing the
work force according to Article V, Section E.

 

23

 

Section H.
SENIORITY FORFEITURE. Employees shall forfeit seniority if:

 

	
  1.

  	
   

  	
  They
  quit or retire.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Leave
  of Absence in excess of 3 years

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  The
  employee is laid off for a period in excess of one-half (1/2) of his/her
  seniority but in no event shall he/she 

  
	
  retain
  his/her seniority after three (3) years continuous lay-off.

  
	
   

  
	
  4.

  	
   

  	
  They
  are discharged for just cause.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  They
  are absent for three (3) consecutive working days without reasonable
  cause. Questionable cause shall be 

  
	
  negotiated
  between the Company and the Union.

  
	
   

  
	
  6.

  	
   

  	
  They
  fail to report for work within five (5) days, after receiving notice to
  report where such failure to report 

  
	
  does
  not arise from good causes, such as employment elsewhere (for a period not to
  exceed two (2) weeks), illness, death in the immediate family, absence
  from the city or military service, provided, however, in such cases that they
  give the Company notice of the good cause preventing them from returning to
  work within three (3) days of receipt of notice.

  
	
   

  
	
  7.

  	
   

  	
  While
  on leave of absence, they accept employment. with another concern without
  approval of the Shop 

  
	
  Committee
  and the Company.

  

 

Section I.
SENIORITY ROLLS. The Company shall furnish an accurate seniority roll showing
the status of all employees covered by this Agreement, a copy of said roll
shall be given to the Shop Committee on request.  The Company will also notify the Union in
writing of hiring, discharging, rehiring, furloughing, and transferring of each
and every employee, in order to keep the above mentioned seniority roll up to
date.

 

Section J.
JOB POSTING & BIDDING. Notices of vacancies or new jobs
created will be posted on the job posting bulletin boards for a period of three
(3) working days during which employees shall have the opportunity to
advance their status by filing an application for transfer to such jobs with
the Human Resources Manager.  If posted
jobs are not filled in thirty (30) days, a one-day posting will be made before
a new employee is hired.

 

24

 

Work
cells, once developed, will be initially staffed with active employees from the
traditional job classifications that were merged by the given work cell.  Job openings, within a given work cell, will
not be posted until the staffing requirements within the work cell exceeds the
available active employees that were merged from the traditional job
classifications.  The traditional job
classification will be the basis for posting an available work cell
position.  The existing job posting and
bidding rules, contained within this section, will govern the evaluation of any
subsequent job vacancy or bid into a work cell.

 

Requests
for transfer will be considered in accordance to the employee’s seniority,
qualifications and curtailment of production, before any new employee is hired
for such a job.  Before the job is
awarded to a bidder, the lay-off list will be referred to for qualified senior
employees (See Article V., Section F.).  If a laid off employee accepts the job, the
job bid must be signed. 
If an employee on the lay-off list refuses the job, refer to Article V,
Section F., #5 .  If there is
reasonable doubt as to the employee’s qualifications, a reasonable trial period
shall be granted.  Should any employee
disqualify themself during the five (5) day trial period, they shall have
return rights to their previous job. 
Once the employee is accepted for the job, and once the employee
completes the five (5) day trial period, he/she relinquishes the rights to
the job he/she left.  Any employee who
fails to successfully hire or transfer into a new job will be placed on layoff
status, with no bumping rights.  Layoff
status will be automatically invoked upon the issuance of the third infraction
of a minor nature for failing to meet a reasonable measure of efficiency
(Infraction of a Minor Nature #10). 
Employees who are disqualified in this manner will relinquish recall
rights to any previously disqualified job, and all warnings on record will
continue for the remainder of their terms once the employee returns from
layoff.

 

Employees
interested in being considered for rough assembly should first bid into the
rough assembly training classification.  The horn slide training classification will be comprised of two (2) separate
tiers; Trainee B - Grade 2, and Trainee A - Grade 5.  Available positions will be posted as Trainee
B - Grade 2.  Existing employees who
transfer into this classification will have the customary five (5) day
trial period.  Employees in Trainee B will be evaluated on a monthly basis, and transfer to Trainee A will only occur after the employee has reached a skill level
equivalent to the established standards for horn
slide
assembly.  Transfer
from Trainee B to Trainee A must be

 

25

 

accomplished within six (6) months, if not, Article V.,
Section J., would apply.  Existing
horn slide assemblers will retain their current classification, and employees
within the Trainee A will be considered part of the horn slide assembly
capacity.  Under this program, the training
classifications may not be considered a permanent position.  Any employee within Trainee A can bid on
Rough Assembly jobs within departments 35 and 38, and will not be required to
complete one year of service.   However,
any subsequent transfer to rough assembly (either by bid or placement) will
require employees to complete one year of service.

 

Any
subsequent job openings in rough assembly will be filled predominantly by
employees from this training classification. 
This, however, is not intended to prevent any of the current rough
assemblers from bidding into a new rough assembly opening.  Providing no eligible bids are received from
current rough assemblers, the Trainee A can bid with seniority prevailing.  If no eligible bids are received from Trainee
A, then placement of a Trainee A will be done at the discretion of the
company.  Plantwide seniority rules will
apply to layoff within this training classification (e.g. a senior Trainee A
will remain over a junior horn slide assembler, or a junior Trainee A can be
bumped by a senior rough assembler).

 

An
employee transferred from one department to another shall immediately be
credited with his/her total seniority in the new department.  The Maximum dayrate will replace “Traditional”
hourly rates for all downward job transfers and lateral job transfers (outside
of their department only).  Employees
with a “Traditional” hourly rate, who are approved for an upward transfer
request, or a lateral transfer request (within their department), or are laid
off for lack of work or for medical disqualification (excluding job
disqualifications), will preserve their “Traditional” hourly rate or the
Maximum dayrate (whichever is higher). 
The most senior employee may exercise shift preference from one shift to
another, within a work cell, within a job classification, within a department,
provided a vacancy exists.  The company
reserves the right to temporarily postpone shift preference, to a maximum of one
(1) year, within classifications that require extended training or
supervision (specifically 5A41 – Polisher, 5A42
– Buffer, and 5A35 – Color Buffer). 
All transfer requests shall be answered if rejected for seniority,
qualifications, or curtailment of production.

 

26

 

In the
application of this provision, requests for transfer to another job, in the
department wherein the vacancies occur or the new job is created, shall be
considered before any such requests made by employees from other departments.

 

Once an
employee accepts a transfer, or once an employee disqualifies themself during a
trial period and returns to their previous job, that employee will not be
allowed to submit another request for transfer for for a period of six (6) months.  This applies to intra-departmental, as well
as inter-departmental transfers.

 

Requests
for transfers submitted by employees in Labor Grades 1 and 2, with less than
one (1) year seniority or probationary employees, will be considered and
possibly accepted, providing that an employee with one (1) year or more
seniority did not bid the job.

 

Employees
in Labor Grades 3 and above with less than one (1) year seniority shall
not be entitled to place transfer requests.

 

It is understood that requests for transfer will be
considered on an individual basis, taking in account all the factors presented
at the time the request for transfer is submitted.

 

When an
abnormal condition exists that may result in the curtailing of production in
other parts of the Plant, Management reserves the right to hire experienced
individuals in preference to present employees who do not have previous
experience.

 

Union
and the bidders will be notified within five (5) working days of the final
posting date.

 

Section K.
SENIORITY GRIEVANCES. Any grievances arising out of seniority shall be
subject to negotiations between the Union and the Company.

 

27

 

Section L.
NOTIFICATION OF JOB STATUS. In laying off, furloughing, or
transferring any employee, the Company Representative shall notify the Chairman
of the Shop Committee and the employee in such layoff, furlough or transfer as
soon as practical.

 

Section M.
TRANSFER INTO BARGAINING UNIT. Employees who were not employed in
the bargaining unit at any time during their period of employment with the
Company and who are transferred into the bargaining unit shall be credited with
seniority from the date of transfer into the bargaining unit after having
served their probationary period.

 

Section N.
REASSIGNMENT TO BARGAINING UNIT. Employees who were, or may be
transferred or promoted from jobs within the bargaining unit to jobs outside
the bargaining unit shall retain their seniority but shall not accumulate
seniority while working on such jobs.  In
the event such employees are transferred into the bargaining unit, they shall
be placed on available jobs where they are best qualified in line with their
seniority, but shall not be entitled to exercise their seniority to displace
any regular full-time employee within the bargaining unit for a period of
ninety (90) days from the date of transfer.

 

Section O.
DISCHARGE PROCEDURE AND GRIEVANCES. Should an employee be subject to
discharge, he/she shall be advised of the reason for such action.  The Company shall then request the presence
of the Chairman of the Shop Committee to discuss the cause with him/her before
he/she is required to leave the Plant.

 

Should
the employee or his/her representative consider the action to be improper, a
written protest must be presented to the Company within five (5) working
days after the action was taken, or the action taken will be considered as
accepted.  Such protest will be handled
in accordance with the established grievance procedure.  If it is determined that the discharge was
unjustified, the employee shall be reinstated to his/her former position and to
his/her former standing on the seniority list, without any loss of pay.

 

28

 

ARTICLE VI -
GRIEVANCE PROCEDURE

 

Section A. INTENT OF DISPUTE ADJUSTMENTS. It is the intent of the
parties to this Agreement that the procedure herein set forth serve as a
peaceful means for the adjustment of all disputes that may arise between them.

 

Section B. NO STRIKE / NO LOCKOUT.  The union agrees that
it will not encourage, sanction, or approve any strike, handbilling, sympathy
strike, or other interruption of work growing out of any dispute.  On the contrary, the union will actively
discourage and endeavor to prevent or terminate any strike, stoppage, slowdown,
or other interruption of work.

 

The
company agrees that neither it nor its representatives will put into effect any
lockout during the term of this agreement.

 

Section C. Any grievance relating
to the issuance of a warning must be submitted to the following grievance
procedure within fourteen (14) calendar days following the issuance of said
warning to the employee(s), otherwise the action is regarded as accepted.  The union, whenever a warning is issued, will
be immediately furnished a copy of the written warning upon issuance to the
employee.  Whenever a grievance arises,
the following steps shall be taken to ensure proper and timely handling, except
in the case of a termination, which will go directly to Step 4.:

 

Step 1.

 

An
employee with a problem, complaint or question will discuss the details of the
complaint with the Supervisor and the Department Steward.  Who, after investigating complaint or
problem, will determine if there is cause. 
The Supervisor, within a 24 hour period, will give a formal answer to
the employee in the presence of the Department Steward.

 

Step 2.

 

Failing
satisfactory settlement with the Supervisor, a grievance shall be written, at
which time employee and Department Steward shall present the written grievance
to the Supervisor who will submit the grievance to a Company Representative
selected by the Company, who will within 10 working days, conduct a meeting of
all parties involved in an attempt to resolve the issue.

 

29

 

Step 3.

 

If the
issue is still not resolved, the written grievance will be taken up in a
meeting with the Grievance Committee and a Representative of the Company within
ten (10) working days of the notice of rejection to settlement in Step 2.

 

Step 4.

 

In the event satisfactory settlement is not made, and after
the above procedure has been exhausted, the grievance shall be referred to the
Plant Manager or his/her representative and the Union’s International Representative
and the Company Legal Advisor.  Should
such a meeting be necessary, it will be held at 2:00 p.m. within two (2) weeks
notice of rejection in step three or on a date agreed upon by both. The Step 4
meeting may be delayed beyond the above mentioned timetable by mutual consent
of the Company representative and the Union. 
If (a) the company fails to meet, or (b) the union fails to
submit written rejection to the 3rd step outcome, within the
specified time limits in the 4th step of the grievance procedure,
then the grievance shall be considered settled on the basis of the last
position – in favor of the union in situation (a), or in favor of the company
in situation (b).

 

Step 5.

 

If the
grievance is not settled pursuant to the steps in the grievance provisions of
this agreement, then either party shall, within thirty (30) calendar days after
any Step 4 grievance answer submit the grievance to arbitration.  Both the company and the union agree to
utilize expedited arbitration as a preferred method.  Post hearing briefs will be permitted only by
agreement of the parties or by direction of the arbitrator if one party so
requests.

 

If
parties are not available, written notification will be presented to the other
party within the time frames as indicated above.

 

If the
union fails to meet the above listed time tables, the grievance will be
considered null and void without the opportunity to file another grievance for
that action for that employee.  If  the company fails to meet the above listed
time tables, the grievance will be considered as closed with the the action
requested on the grievance going into effect.

 

30

 

The employer and the union shall agree upon a list of three (3) arbitrators
to serve for the duration of this agreement. 
When either party requests arbitration pursuant to Section C., Step
5., the parties shall meet within seven (7) working days to select an
individual from this panel to hear said matter. 
The arbitrator will be selected by process of rotation.  As soon as the parties select the arbitrator,
they shall jointly request a hearing date be set as soon as possible subject to
the availability of the parties.  If the
parties and the arbitrator are unable to agree upon a date within thirty (30)
days of contact with the arbitrator, then the parties, by mutual agreement, may
immediately select another arbitrator. 
No more than thirty (30) days after submission of the case to the
arbitrator, the arbitrator will issue his / her award.  The parties agree to accept the arbitrator’s
award as final and binding upon them; however, the arbitrator shall have no
power to add to, subtract from, or modify any of the terms of this agreement.

 

The cost of the arbitrator, and
meeting room shall be shared equally by the parties.  Any other expense (such as attorney,
transcript, or witness or advocate fees) must be paid by the party incurring
such expense.

 

No
aggrieved party shall have any right to invoke the grievance procedure provided
above, or the arbitration procedure provided above, unless the matter of such
grievance has been presented as provided above.

 

ARTICLE VII -
WAGES

 

Section A.
NEW EMPLOYEE CLASSIFICATION.
Any new employee may be employed in any bracket or classification to be
determined by their past experience.

 

Section B.  “TRADITIONAL” HOURLY RATES.  All existing
union hourly employees (with a hire date on or before February 21, 2005
will preserve the higher of their overall hourly average, or their current
Dayrate (for the period between 02/16/04 and 02/18/05) as their straight-time
hourly rate for all hours worked. (excluding the stated exceptions See Article VII.,
Section D.).  Employees already established
with an interim work cell hourly rate will receive the higher of their current
work cell rate, their overall hourly average, or their current Dayrate (for the
period between

 

31

 

02/16/04
and 02/18/05) as their straight-time hourly rate for all hours worked
(excluding the stated exceptions See Article VII., Section D.).

 

Section C.
SPECIAL RATES.

 

a.                                       INSTRUCTOR PAY. The Company may appoint new
instructors to train one or more employees for the job.  For the time spent instructing, they will
receive will receive twenty five cents ($.25) per hour over their hourly rate.

 

b.                                      GROUP LEADER PAY. The company may appoint group leaders in a particular
area of the plant.  For the time spent in
a group leader role, group leaders will receive a minimum of twenty five cents
($.25) per hour over their hourly rate.

 

c.                                       TEMPORARY TRANSFERS. When an employee’s work is in two (2) or more
Labor Grades, he/she shall carry the higher rate.  Temporary transfers can be made as an interim
work assignment during temporary periods of no work, for up to six (6) weeks,
leaving the affected employee an opportunity to return to their normal job.
Temporary transfers, under these circumstances, will be further extended if
mutually agreed by the company and the union.

 

d.                                      SHIFT DIFFERENTIALS. Employees working on the second shift shall receive
additional compensation of fifty cents ($.50) per hour.  Employees working on the third shift shall
receive additional compensation of seventy-five ($.75) per hour.

 

ARTICLE VIII –
QUALITY, COST, DELIVERY, AND SAFETY

 

Employees
are expected to safely produce quality instruments in the most efficient
manner.  Conforming to safety
requirements, improving quality standards, and improving manufacturing
efficiencies is every employee’s responsibility.

 

Manufacturing
operations, not contained within a work cell, must meet or exceed 110% of the
job standard.  Any voids in quality,
efficiency, or safety will be subject to the established warning system.

 

32

 

Safety standards, quality standards, and manufacturing
efficiencies (compared to the standards established by the former individual
incentive system), must be maintained or improved with each subsequent work
cell that is developed.  Work cells will
be organized according to established lean manufacturing principles, and will
be based upon standard time observations. 
Work cell cycle times, following the removal of all non-value added
operations, will be determined to be the combination of the lowest repeatable
times for each remaining job element. 
The resulting job elements, given the customer TAKT time, will be
divided between the employees that are assigned to each given work cell.  Job elements, depending on the customer TAKT
time, may be changed or altered, and employees assigned to each given work cell
will be required to assume the most leveled and balanced combination of job
elements.  Quality, cost, delivery, and
safety deficiencies, identified within a work cell, will be handled on an
individual basis, and may be subject to the established warning system.

 

ARTICLE IX -
WAGE RATES

 

All
employees hired after February 15, 2005 through February 18, 2008,
will receive a one time $.15 adjustment to their wages.

 

Effective
February 18, 2008, all employees will receive $.30 increase to their
hourly rate.

Effective
February 17, 2009, all employees will receive $.30 increase to their
hourly rate.

Effective
February 16, 2010, all employees will receive $.30 increase to their
hourly rate.

 

JOB CLASSIFICATIONS AND HOURLY RATES:

 

#1 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate 

  	
   

  	
  $

  	
  13.116

  	
   

  	
  $

  	
  13.416

  	
   

  	
  $

  	
  13.716

  	
   

  
	
  Minimum Hourly
  Rate 

  	
   

  	
  $

  	
  11.216

  	
   

  	
  $

  	
  11.516

  	
   

  	
  $

  	
  11.816

  	
   

  

 

*Sweepers

 

#2 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.245

  	
   

  	
  $

  	
  13.545

  	
   

  	
  $

  	
  13.845

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.326

  	
   

  	
  $

  	
  11.626

  	
   

  	
  $

  	
  11.926

  	
   

  

 

33

 

*Case
Sizing Boring Machine Operator

*Degreaser
/ Parts Cleaner

*Harperizer &
Tumbling Machine Operator

*Laborer

*Laborer
- Air/Water Check Horns

*Vibratory &
Tumbling Machine Operator

*Operator
- Cut and Shrink

*Operator
- Drill Press & Milling

*Trucker
- Stock Handler

*Trainee
B

*Laborer
- Rinse Tank

 

#3 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.365

  	
   

  	
  $

  	
  13.665

  	
   

  	
  $

  	
  13.965

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.428

  	
   

  	
  $

  	
  11.728

  	
   

  	
  $

  	
  12.028

  	
   

  

 

Bender
- Crooks

Lead
and Silver Solderer

Furnace
Operator

Braze/Paste
Applicator

Operator
- Punch Press

Packers

Pantograph/Schmidt
Engraver Set-Up Oper.

 

 

*Pickling
Tank Operator

*Shippers

Straighten
Trombone Slide Tubes

Aqueous
System Set-Up Operator

Lead
Pot Operator

 

#4 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.514

  	
   

  	
  $

  	
  13.814

  	
   

  	
  $

  	
  14.114

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.555

  	
   

  	
  $

  	
  11.855

  	
   

  	
  $

  	
  12.155

  	
   

  

 

34

 

Automatic
Tube Buffing Mch.

Brazer

CNC
Automatic Spinning Machine Operator

CNC
Drill Operator

CNC
Laser Operator

Draw
Bench Operator

Engine
Lathe Operator

Final
Assembly Horns

Honer
- Trombone Slides

Maintenance
Helper

Operator
Turret Lathe, Hand Screw

Set-Up
Opr. Vertical Draw Mch.

 

 

*Stock
Clerk

Rotary
Valve Finisher

Auto.
Buff. Mach. Set-up Opr.

Cell
Technician

 

#5 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.580

  	
   

  	
  $

  	
  13.880

  	
   

  	
  $

  	
  14.180

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.610

  	
   

  	
  $

  	
  11.910

  	
   

  	
  $

  	
  12.210

  	
   

  

 

Assembler
Valves & Crooks

Bender

Operator
Automatic Screw Mch.

Piston/Valve
Finisher

Plater
C

Rough
Assembly - Cornets, Trumpets

Rough
Assembly - Horn Slides and Trombone Bells

Rough
Assembly - Large Horns & Rotary Valves

Rough
Assembly - Trombone Slides

Rough
Assembler

Waste
Water Pretreatment Operator

 

35

 

Trainee
A

 

Annealing
Furnace Operator

 

#5A Grade

 

	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.774

  	
   

  	
  $

  	
  14.074

  	
   

  	
  $

  	
  14.374

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.888

  	
   

  	
  $

  	
  12.188

  	
   

  	
  $

  	
  12.488

  	
   

  

 

Rotary
Valve Maker

Set-Up
Operator – Punch Press

 

Color
Buff and Color Rag

Polisher/Buffer

Polisher

Buffer

Lacquer
Sprayers

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  2/16/10

  	
   

  
	
  TU/SU

  	
   

  	
  $

  	
  18.404

  	
   

  	
  $

  	
  18.704

  	
   

  	
  $

  	
  19.004

  	
   

  
	
  FG/FTM/MI/FH

  	
   

  	
  $

  	
  17.031

  	
   

  	
  $

  	
  17.331

  	
   

  	
  $

  	
  17.631

  	
   

  
	
  BA/EU/Pro ST
  TM/Pro TR

  	
   

  	
  $

  	
  15.657

  	
   

  	
  $

  	
  15.957

  	
   

  	
  $

  	
  16.257

  	
   

  
	
  St TR/CR/TM

  	
   

  	
  $

  	
  14.284

  	
   

  	
  $

  	
  14.584

  	
   

  	
  $

  	
  14.884

  	
   

  
	
  Components

  	
   

  	
  $

  	
  12.911

  	
   

  	
  $

  	
  13.211

  	
   

  	
  $

  	
  13.511

  	
   

  

 

#6 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.794

  	
   

  	
  $

  	
  14.094

  	
   

  	
  $

  	
  14.394

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.793

  	
   

  	
  $

  	
  12.093

  	
   

  	
  $

  	
  12.393

  	
   

  

 

Automatic
Hydraulic Spinning Machine Operator

Bender
Skilled

Inspector
B

Sheet
Brass Workers

Plasma
Arc Welder

Piston
Liner, Assembler, and Ball-Out

 

36

 

#6B Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  $13.850

  	
   

  	
  $

  	
  14.150

  	
   

  	
  $

  	
  14.450

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.840

  	
   

  	
  $

  	
  12.140

  	
   

  	
  $

  	
  12.440

  	
   

  

 

Spinner
- Metal

 

#6A Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  13.966

  	
   

  	
  $

  	
  14.266

  	
   

  	
  $

  	
  14.566

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  11.939

  	
   

  	
  $

  	
  12.239

  	
   

  	
  $

  	
  12.539

  	
   

  

 

Maintenance B

 

#6A-1 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  14.095

  	
   

  	
  $

  	
  14.395

  	
   

  	
  $

  	
  14.695

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  12.048

  	
   

  	
  $

  	
  12.348

  	
   

  	
  $

  	
  12.648

  	
   

  

 

Maintenance &
Welder A

Plater B

 

#6A-2 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  14.278

  	
   

  	
  $

  	
  14.578

  	
   

  	
  $

  	
  14.878

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  12.204

  	
   

  	
  $

  	
  12.504

  	
   

  	
  $

  	
  12.804

  	
   

  

 

Operator
Centerless Grinder

Turret
Lathe & Hand Screw - Set-Up Oper.

CNC Turning Center
Set-Up Operator

 

#7 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  14.633

  	
   

  	
  $

  	
  14.933

  	
   

  	
  $

  	
  15.233

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  12.505

  	
   

  	
  $

  	
  12.805

  	
   

  	
  $

  	
  13.105

  	
   

  

 

Tool Maker Trainee

Plater A

Horn Tester

 

#7B Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  14.976

  	
   

  	
  $

  	
  15.276

  	
   

  	
  $

  	
  15.576

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  12.797

  	
   

  	
  $

  	
  13.097

  	
   

  	
  $

  	
  13.397

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Horn Repair

 

37

 

#8 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  15.719

  	
   

  	
  $

  	
  16.019

  	
   

  	
  $

  	
  16.319

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  13.428

  	
   

  	
  $

  	
  13.728

  	
   

  	
  $

  	
  14.028

  	
   

  

 

Tool
Room Machinist B

 

#9 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly Rate

  	
   

  	
  $

  	
  16.372

  	
   

  	
  $

  	
  16.672

  	
   

  	
  $

  	
  16.972

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  13.984

  	
   

  	
  $

  	
  14.284

  	
   

  	
  $

  	
  14.584

  	
   

  

 

Maintenance A

Tool
Room Machinist A

 

#9A Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  16.688

  	
   

  	
  $

  	
  16.988

  	
   

  	
  $

  	
  17.288

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  14.253

  	
   

  	
  $

  	
  14.553

  	
   

  	
  $

  	
  14.853

  	
   

  

 

Tool &
Die Maker

 

#10 Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  17.265

  	
   

  	
  $

  	
  17.565

  	
   

  	
  $

  	
  17.865

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  14.743

  	
   

  	
  $

  	
  15.043

  	
   

  	
  $

  	
  15.343

  	
   

  

 

Maintenance &
Electrician

 

#10A Grade

 

	
   

  	
   

  	
  2/18/08

  	
   

  	
  2/17/09

  	
   

  	
  02/16/10

  	
   

  
	
  Maximum Hourly
  Rate

  	
   

  	
  $

  	
  17.452

  	
   

  	
  $

  	
  17.752

  	
   

  	
  $

  	
  18.052

  	
   

  
	
  Minimum Hourly
  Rate

  	
   

  	
  $

  	
  14.902

  	
   

  	
  $

  	
  15.202

  	
   

  	
  $

  	
  15.502

  	
   

  

 

CNC Programmer,
Complex

Tool &
Die Maker Complex

 

38

 

All
new hires will be eligible for wage increases (up to the maximum contract rate
for that grade), once time/skill/ performance based thresholds have been
achieved.

 

ARTICLE X – VACATIONS

 

The Union and the
Company agree that the purpose of vacations is that of relaxation of the individual
from the requirements of his/her work and that such relaxation is earned by
total years of service and hours worked. 
Total years of service will include any former years of service with the
former King Musical, United Musical Instruments, or Conn-Selmer, Inc. in
addition to current continuous years of service.

 

Section A. VACATION PERIOD. Effective June 1, 2008, employees will be
earning 1/12th of their vacation per month of the current year for
the current year.  Employees are able to
use their entire vacation time, per vacation schedule below, even though it may
not have been earned when taken.  If an
employee has taken this vacation time prior to it being earned – and then leave
the company, for any reason, this vacation pay (taken but not yet earned) would
be required to be reimbursed to the company.

 

The
Plant will be closed for a one-week vacation period the week of the July 4th
holiday starting

(
4 vacation days plus 1 holiday ):

 

·       Monday, June 30, 2008

·       Monday, June 29, 2009

·       Monday, July 5, 2010

 

The
employee’s seniority status for the purpose of vacations will be determined as
of May 31st of the vacation year. 
New vacation time becomes available each subsequent June 1st.

 

The
designated Shutdown period will be staffed as follows:

 

a.                           For plant-wide maintenance, a Volunteer Sign-Up Sheet
for employees required during the shutdown will be posted two months  prior to the shutdown for a period of ten (10) working
days.

 

39

 

b.                          Those junior employees who cannot entirely cover the
vacation period will be the first volunteers selected for the above posted
position(s).  However, these junior
employees may only volunteer for the time not covered by vacation.

 

c.                           Should there be a need for additional manpower,
seniority prevailing, all other employees may volunteer

 

d.                          The list of employees scheduled to work the shutdown
will be posted five (5) days after the posting period is completed.  Those scheduled to work during the shutdown
period will be subject to the same Company Rules that govern any regular
workday.

 

Section B. VACATION PAY. Shall be the employees hourly rate when vacation is taken, based on the
following schedule:

 

	
  Length of Service

  	
   

  	
  Days of Vacation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Six
  (6) months to one (1) year seniority

  	
   

  	
  2

  	
   

  
	
  One
  (1) year to two (2) years seniority

  	
   

  	
  5

  	
   

  
	
  Two
  (2) years to five (5) years seniority

  	
   

  	
  10

  	
   

  
	
  Five
  (5) years and up to ten (10) years seniority

  	
   

  	
  12

  	
   

  
	
  Ten (10) years and up to fifteen (15) years seniority

  	
   

  	
  15

  	
   

  
	
  Fifteen
  (15) years to twenty (20) years seniority

  	
   

  	
  17

  	
   

  
	
  Twenty
  (20) years or more seniority

  	
   

  	
  20

  	
   

  

 

Vacation
pay shall be paid, in the normal payroll cycle, the week following when the
vacation time was taken.  Deductions for Medical
contribution to be deducted from vacation pay. 
Calculated the same as if employee was working.

 

Section C. SECOND, THIRD AND FOURTH WEEK VACATION REQUIREMENTS.

 

a.)           Employee must have either five, ten (10), fifteen (15) or twenty (20)
years of service prior to May 31st to qualify.

 

b.)          One (1) week notice must be submitted prior to the day(s) being
requested.

 

c.)           Vacation day(s) will be paid the following Friday of the workweek
requested.

 

d.)          Second, Third and Fourth week cannot be added to the following year’s
vacation.

 

40

 

e.)    Individual vacation requests,
outside of the determined shutdown period, when possible, will be awarded based
upon seniority.

 

f.)    “Call-in”vacation days, not
taken during the scheduled shutdown period, may be taken on a “call-in”
basis.  This option will be limited to
sixteen (16) hours in 1⁄2-day increments, and sixteen (16) hours in full-day
increments. Employees with twenty-five (25) years of service as of May 31st,
will have sixteen (16) hours in 1⁄2-day increments, and sixty-four (64) hours in full-day increments. These “call-in” days cannot be used consecutively,
cannot be used the day before or the day after a regularly scheduled holiday,
and cannot be applied retroactively. 
Exception: 1⁄2-day “call-ins” may be used, with 2-week notice, seniority
prevailing, when combined with other regularly scheduled holidays.

 

Section D. LOST TIME QUALIFICATIONS. Employees who are formally approved for retirement or
who are or have been on a sickness or personal leave of absence or have lost
time due to permanent lay-off, shall receive, at the time of separation, their
accumulated vacation pay for the regular hours actually paid with 1,700 hours
as the 100% basis.

 

a.         Employees must work no less than 1,700 hours to qualify for 100% vacation
time due.

 

b.         Employees who work less than 1,700 regular work hours will have vacation
time due pro-rated with 1,700 hours as the 100% qualifying figure against their
actual hours paid.

 

Section E. LOST TIME ALLOWANCES. Deductions will not be made for any approved FMLA,
military reserve duty, or union business within the vacation year.

 

When production is suspended because of fifty percent
(50%) or more of the Plant is shutdown due to lack of orders for instruments,
employees laid off because of the Plant shutdown will be allowed an additional
160 hours credit before deductions are made.

 

ARTICLE XI -
HOLIDAYS

 

The
Company shall pay all employees with seniority covered by this Agreement at
their hourly rate for the following Holidays, to be observed on designated
dates:

 

41

 

	
   

  	
  a.

  	
  2008:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, March 21 –
  Good Friday

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, May 26 - Memorial Day

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, July 4- Independence Day

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, September 1 - Labor Day

  	
   

  	
   

  
	
   

  	
   

  	
  Thursday/Friday, November 27 & 28 - Thanksgiving
  Holidays

  	
   

  	
   

  
	
   

  	
   

  	
  Wednesday/Thursday/Friday, December 24,25 &
  26 - Christmas Holiday

  	
   

  	
   

  
	
   

  	
   

  	
  Wednesday/Thursday/Friday, December 31,
  January 1 & 2

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  2009

  	
   

  	
  :

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, April 10 - Good Friday

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, May 25 - Memorial Day

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, July 3 - Independence Day

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, September 7 - Labor Day

  	
   

  	
   

  
	
   

  	
   

  	
  Thursday/Friday, November 26 & 27 -
  Thanksgiving Holidays

  	
   

  	
   

  
	
   

  	
   

  	
  Thursday/Friday, December 24, 25 - Christmas Holidays

  	
   

  	
   

  
	
   

  	
   

  	
  Tuesday, Wednesday, Thursday, December 29, 30, 31

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, January 1 - New Year’s Day

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  2010:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Friday, April 2 - Good Friday

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, May 31 - Memorial Day

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, July 5 - Independence Day

  	
   

  	
   

  
	
   

  	
   

  	
  Monday, September 6 - Labor Day

  	
   

  	
   

  
	
   

  	
   

  	
  Thursday/Friday, November 25 & 26 -
  Thanksgiving Holidays

  	
   

  	
   

  
	
   

  	
   

  	
  Friday/Monday, December 24 & 27 - Christmas
  Holidays

  	
   

  	
   

  
	
   

  	
   

  	
  Tuesday, Wednesday, Thursday, December 28,
  29 & 30

  	
   

  	
   

  
	
   

  	
   

  	
  Friday - December 31st – New Years Day (Observed)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Personal
  Holiday to be used as requested by employee:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  1.

  	
  Two
  weeks notice must be submitted prior to the day being requested, seniority
  prevailing, when combined with other regularly scheduled holidays.

  
							

 

42

 

	
   

  	
   

  	
   

  	
  2.

  	
  Must be approved by Human Resource Manager.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  3.

  	
  The Personal
  Holiday, if used at any other time, can be merely taken with advance or
  “call-in” notice. However, the Personal Holiday cannot be applied
  retroactively to a day already missed. The Personal Holiday, if arranged on a
  call-in basis, must be reported to your Supervisor or Human Resources within
  two (2)  hour of your scheduled starting time. This holiday must be
  taken by the end of each contract period. Employees who have not used their
  personal holiday shall be paid for the holiday at the end of the contract
  year.

  

 

Section A.
HOLIDAY PAY QUALIFICATIONS  Employees must have worked 6 hours on the last
regularly scheduled work day prior to and the next regularly scheduled work day
after such holiday.  Employees not
actively working (e.g. layoff, leave of absence, etc.) who are not in pay
status shall not be eligible for holiday pay, provided however, that an FMLA
covered absence on the day before or the day after a holiday shall not result
in an employee being ineligible for holiday pay.

 

Exceptions:

 

Excused
Absence as outlined in the Attendance Policies and Personal Emergencies. Emergencies
that occur the day before or the day after a holiday will be handled on an
individual basis.  The employee must
report the emergency to the Human Resource Manager, and the employee must
furnish documentation proving the legitimacy of such emergency upon return to
work.  Human Resources will determine if
payment for the holiday(s) is to be made under these conditions.

 

ARTICLE XII - UNION SECURITY

 

All
employees who are covered by the representation clause in the contract and are
present members of the Union, must as a condition of employment, remain members
in good financial standing except for assessments and fines during the life of
the contract.

 

43

 

All
employees hired into the bargaining unit described in the representation clause
of the contract must, as a condition of employment, join the Union within
thirty (30) days from their hiring date and remain members in good financial
standing throughout the life of the contract.

 

The
Company does agree, subject to applicable Federal and State Laws, to a
voluntary check-off of Union dues, provided such voluntary check-off
authorization meets with the approval of the Company.

 

This
check-off by the Company of monthly dues does not cover any assessment over and
above the mandatory monthly dues as determined by the National Administrative
Committee of the Union.

 

ARTICLE XIII - MEDICAL EXAMINATION

 

Section A. INJURY REPORTING. All employees must report all injuries when they
occur to their Supervisor, so it can be recorded and sent to the dispensary,
doctors or hospital.

 

Section B. TRANSPORTATION TO COMPANY DOCTOR. The Company will provide, transportation to and from
the Company recognized Medical Facility for those employees injured on the job
when necessary on the day of the injury only.

 

Section C. LOST TIME-INJURY. An employee will be compensated at their hourly rate
for lost time on the day of the injury when sent to Doctors or Hospital, but
will not exceed past the normal quitting time, providing a slip indicating the
is turned back to their Supervisor, who will forward it to Human Resources.

 

Section D. WORKERS’ COMPENSATION. If the treating physician for an established workers’
compensation claim requires the employee to visit his/her office or hospital
during working hours for follow-up treatment, he/she shall be compensated for
loss of time up to a maximum of two (2) hours for each visit at their
hourly rate.  However, this provision
only applies to appointments relating to treatment, or when the company
requires and schedules an independent medical exam during work hours.  Claims in excess of this amount shall be
determined between the Company and the Union Shop Committee

 

44

 

Should
an injury not be reported as per requirements, and a claim filed by employee,
the Company has no choice but to deny such claim at the hearing.

 

ARTICLE XIV - GENERAL PROVISIONS

 

Section A. UNION ACTIVITIES. The Company recognizes and will not interfere with
the right of its employees to become members of the Union.  The Union agrees that neither it nor any of
its officers or members will engage in any Union activity while such employees
are on Company time, unless it is mutually agreed by the Company.

 

The
Shop Steward, Departmental Stewards and Shop Committee shall be paid at their
hourly rate for all time spent in mutually agreed upon meetings with Management
during scheduled working hours.

 

In
addition to pay for time spent in mutually agreed upon meetings with Management
during scheduled working hours, the Chairman of the Shop Committee shall
receive pay for up to ten (10) hours per
week and the
Departmental Stewards shall receive pay for up to three (3) hours per week
for the time spent on problems arising under this Contract which affect the
mutual interest of the Union and the Company.

 

Section B. TELEPHONE USAGE. It is agreed that the President of the Union or the
Chairman of the Shop Committee shall have use of the Company’s telephone at any
time to consult with the UAW, or Government agencies’ representatives in regard
to matters covered by this Agreement.

 

Section C. BULLETIN BOARDS. Are to be used solely for the purpose of exhibiting
official announcements of the Union and the Company.  The dedicated bulletin board for the union is
to be used solely for the purpose of posting official union business, and may
not include any personal announcements or statements.

 

Section D. REST PERIODS. In effect during working hours and the wash-up period at quitting time
shall be continued (a constant allowance of 25 minutes per day for rest periods
and wash-up 

 

45

 

time,
except for the Polishing / Buffing / Color Buffing Departments, where an
additional 5 minutes wash-up time is allowed).

 

Section E. SUPERVISORS WORKING. No employee outside the bargaining unit shall perform
any work customarily performed by employees within the bargaining unit.  It is agreed, however, the Supervisors may
perform such work while acting as instructors or assisting in solving a
production problem.  It is further
recognized that it is part of the normal procedure of supervision to test and inspect.  During the period in which a shortage of
staffing exists due to absenteeism or assignment of personnel to other jobs,
the Shipping Department, Maintenance and Tool Room, Machine Shop, and Repair
Department Supervisors are excluded from this limitation.

 

Section F. TEMPORARY EMPLOYEE. Is one engaged by the Company for a definite period
of time, not in excess of ninety (90) days, to perform a specific type of work
that does not occur with regularity.  The
Company agrees not to call in temporary employees, if regular employees are
available to do the work.

 

ARTICLE XV - FRINGES AND SCOPE OF THE AGREEMENT

 

Section A. BENEFITS. The Company agrees to an insurance plan for its employees under a policy
or policies issued by an insurance company, association or medical group as
selected by the Company, subject to the right of the Company to amend, cancel
or reinsure the policies or change the underwriters thereof, provided the
benefits indicated herein are maintained for the life of this Agreement.

 

The Company shall afford
the employees an annual opportunity to enroll in the company sponsored
healthcare programs.

 

1.         HOSPITALIZATION PLANS.

 

Opt Out Program

Employees
may be eligible for a quarterly payment during the period of coverage provided
they remain covered under an alternative health care plan.  This quarterly payment of $400 will be made 

 

46

 

at
the end of each quarter.  If an employee
is married to another Conn-Selmer employee, it is considered a family unit and
thus not eligible to participate in the opt out program.  Employees must have been a prior participant
in a Conn-Selmer Health Plan to qualify.

 

Employees
will be eligible as of the 1st of the quarter following enrollment
in the opt out program and must be actively employed with Conn-Selmer on the
last day of the quarter in order to receive the quarterly opt out payment.  All payments made will be less required tax
withholding.

 

Employees
under a court order to provide healthcare coverage for their dependents are
ineligible to participate under this plan.

 

If
an employee opts out of Conn-Selmer Health Care Plans and wishes to re-enter
the plan, they may only do so during open enrollment or upon a change in status
as defined by ERISA.  Once employee
re-enters the Plan, all quarterly payments will end.  Employee will not receive a quarterly opt out
payment if they enter the Health Insurance Plan during the middle of a quarter.

 

Self-Insured or Kaiser HMO Medical Insurance.  Effective May 1, (or the first pay cycle
for each subsequent calendar year). 
Spousal carve-out to apply on all plans.

 

	
  Contribution: (Per Week)

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  
	
  Kaiser
  HMO:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  29.00

  	
   

  	
  $

  	
  32.00

  	
   

  	
  $

  	
  34.00

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  39.00

  	
   

  	
  $

  	
  44.00

  	
   

  	
  $

  	
  49.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base
  Plan:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  20.00

  	
   

  	
  $

  	
  22.00

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  37.00

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  42.00

  	
   

  

 

47

 

2.         FLEXIBLE SPENDING ACCOUNTS:

 

Healthcare: 
Allows you to use before-tax dollars to pay
for typical out-of-pocket health care expenses such as deductibles, copayments,
and non-covered expenses.

 

Up to $2,500.00

 

Dependent Care:  Allows you to use before-tax dollars to pay
for child care or for an elderly or disabled family member.

 

Up to $5,000.00 can be contributed if married, or up to $2,500.00 can be
contributed if single.

 

3.         VISION PLAN:

 

Eye
exam and glasses or contacts every 24 months:

 

	
  Exam:

  	
   

  	
  $

  	
  35.00

  	
   

  
	
  Frames:

  	
   

  	
  $

  	
  55.00

  	
   

  
	
  Lenses:

  	
   

  	
   

  	
   

  
	
  Single:

  	
   

  	
  $

  	
  40.00

  	
   

  
	
  Bifocal:

  	
   

  	
  $

  	
  50.00

  	
   

  
	
  Trifocal:

  	
   

  	
  $

  	
  70.00

  	
   

  
	
  Lenticular:

  	
   

  	
  $

  	
  80.00

  	
   

  
	
  Contacts:

  	
   

  	
   

  	
   

  
	
  Cosmetic:

  	
   

  	
  $

  	
  105.00

  	
   

  
	
  Medical:

  	
   

  	
  $

  	
  210.00

  	
   

  

 

	
   

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  
	
  Contribution: (Per Week)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  1.25

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  3.75

  	
   

  	
  $

  	
  3.75

  	
   

  	
  $

  	
  3.75

  	
   

  

 

4.         DENTAL PLAN.

 

$1,000
Annual Maximum Benefits

 

	
  Preventative Services:

  	
   

  	
  100%, no deductible

  
	
  Basic Restorative:

  	
   

  	
  85%, $50 deductible

  
	
  Major Restorative:

  	
   

  	
  50%, $50 deductible

  
	
  Orthodontia:

  	
   

  	
  50%, $50 deductible, $1000 lifetime limit per child.

  

 

48

 

	
   

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  
	
  Contribution: (Per Week)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee only:

  	
   

  	
  $

  	
  2.50

  	
   

  	
  $

  	
  2.50

  	
   

  	
  $

  	
  2.50

  	
   

  
	
  Employee and
  Family:

  	
   

  	
  $

  	
  4.00

  	
   

  	
  $

  	
  4.00

  	
   

  	
  $

  	
  4.00

  	
   

  

 

5.         SICKNESS AND ACCIDENT WEEKLY BENEFITS. Beginning with the first day of an accident or
hospitalization or the eighth day of a sickness, benefits will be payable for a
maximum of 26 weeks for any one continuous period of disability in any one
year.  If a period of illness exceeds two
(2) weeks (14 days) for a non-occupational sickness, the initial two (2) week
(14 days) waiting period will be waived. 
The employee will be paid from the first day of illness according to the
following schedule:

 

	
  $360 per
  week effective February 16, 2008

  	
   

  
	
  $375 per week effective February 17, 2009

  	
   

  
	
  $375 per week effective February 16, 2010

  	
   

  

 

6.         LIFE INSURANCE and AD&D.  $35,000 effective February 15, 2008.  Effective February 16, 2010, increased
to $37,000.

 

7.         PENSION.  Employees who
retired after February 15, 2008 shall receive a monthly benefit increase
to $25.00 per service year.  Employees
who retired after February 17, 2009, shall receive a monthly benefit
increase to $26.00 per service year. 
Employees who retire after February 16, 2010, shall receive a
monthly benefit increase to $27.00 per service year.

 

Section B.  MEDICARE INSURANCE PREMIUM.  The Company will pay the
entire cost for those employees covered under Medicare Part B, reimbursing
those employees on a quarterly basis.

 

Section C. RETIREE INSURANCE PREMIUM. All payments of premium by the Company for insurance
or hospitalization for employees, retired under the provisions of the
Retirement Plan for 

 

49

 

Hourly
Employees because of disability or otherwise, shall terminate during the first
of the month following the month of retirement.

 

Section D. CLAIMS PROCESSING. The Company shall bear all necessary administrative
expenses and agrees that in the administration of the insurance plan, all
claims shall be processed as expediently as possible.  All matters concerning benefits provided under
the insurance plan shall be governed by the terms and conditions of the
insurance policy or policies purchased by the Company.

 

Section E. BENEFITS WAITING PERIOD. Employees shall become eligible for sickness and
accident insurance, life insurance and hospitalization/dental coverage after
they have completed three (3) months of accumulated service, provided they
are still actively at work and have enrolled.

 

Section F. ONE MONTH LAY-OFF CLAUSE. All insurance coverage of an employee shall be
cancelled one (1) month following the month after lay-off date.  The employee may exercise the COBRA privilege
as described in Section G of this Article.

 

Section G. COBRA.
If employment terminates for any reason other than gross misconduct, or if the
hours worked are reduced so that medical coverage terminates, the employee and
covered dependents may continue coverage under the Company plan as outlined in
the Summary Plan Description, provided the employee and dependents are not
covered under any other plan.  For the
purpose of this provision, “gross misconduct” means any violation of State or
Federal laws.  Any employee who elects to
continue coverage under the Plan must pay the full cost of the coverage.

 

If
an employee becomes divorced or legally separated, or if the employee’s  dependent child is no longer an eligible
dependent under the plan, the employee or another family member must notify the
Company within thirty (30) days.

 

Section H. PLAN 125. All employee contribution for Hospitalization/Dental Coverage are
deducted on a pre-tax basis toward their share of the cost of the
benefits.  The employee should refer to
the Summary Plan Description of the Benefit Plan for the Employees of
Conn-Selmer, Inc. for details regarding this program.

 

50

 

Section I. JURY DUTY.
An employee who has completed his/her probationary period and who serves as a
juror during his/her regular work week, Monday to Friday, inclusive, shall be
excused from work for the days required to serve, and will be paid eight (8) hours
at their hourly rate (excluding shift differential) for each day of jury
service.  The employee must present
satisfactory evidence.  If an employee
works his/her regular shift in addition to performing jury duty, he/she shall
not qualify for payment under the provisions of this paragraph.

 

In
order to qualify for Jury Duty pay, an employee must present the Company with
Notice to Report within two (2) working days following receipt of such
notice.

 

Section J. BEREAVEMENT PAY. An employee who is actively on payroll and has
completed their probationary period will be granted an excused absence,
following the death of an immediate family as follows:

 

·    4 working days
off with pay:  parent, spouse, child or
step-child

 

·    3 working days
off with pay:  sibling, in-law,
step-parent, grandparent, or grandparent in-law.

 

Bereavement
days occuring during an employees vacation will displace vacation days (Example:  Employee is on a two (2) week vacation
and a death occurs in the immediate family, employee returning to work as
scheduled will only be charged with seven (7) vacation days.  Bereavement days occuring during a holiday
will be taken immediately after the holiday.

 

Section K. RE-NEGOTIATION. It is understood and agreed between the parties
hereto that all economic issues, including, but not limited to wages and
so-called fringe benefits have been fully negotiated between the parties and
shall not be subject to further negotiation during the life of this Agreement
but all other matters not specifically set forth in this Agreement shall be
subject to negotiation during the term of the Agreement.

 

51

 

ARTICLE XVI - COMPANY RULES, REGULATIONS

 

In
every business where many people work together, some specific rules and
regulations are necessary to define acceptable conduct and to promote the
smooth functioning of the business as a whole.

 

The purpose of the following rules is to insure all
employees safety and fairness in their cooperative effort, rather than to place
restrictions on any one individual.

 

The
Company feels that a great majority of its employees want to play the game
fairly and will abide by the rules where they are known.  For this reason, we have set forth acts of
misconduct which, if committed, will result in appropriate disciplinary action.

 

When
an employee is being counseled in line with a discipline problem, the steward
will be involved at the department level and the Chairman of the Shop Committee
at the Human Resources level.

 

Section A. MINOR WORK RULES

 

1.         Loafing, neglect or failure to perform assigned duties.

 

2.         Improper use of Company property.

 

3.         Violation of safety rules.

 

4.         Failure to be in assigned area or at station at required time.

 

5.         Leaving Department or job prior to authorized time.

 

6.         Leaving Department to use phone without obtaining required pass.

 

7.         Creating or contributing to unhealthful or unsanitary condition, or
displaying signs, obscene pictures or literature or distributing them.

 

8.         Neglect of duty or failure to meet reasonable measure of efficiency or
productivity or negligence resulting in inferior work, scrap, or waste.

 

9.         Running or in any other way creating a condition hazardous to the
individual or fellow employee.

 

10.       Failure to wear assigned safety garments or use of assigned safety
equipment.

 

52

 

11.       Solicitation of employees for donations or memberships in outside
organizations, circulation of petitions or magazines in the Plant area without
specific approval of the Human Resources Department.

 

12.       Being in an area unauthorized in the Plant or on Plant property.

 

13.       Gambling of any type.

 

14.       Changing a certain phase of a set operating procedure without proper
authorization.

 

15.       Posting of notices or signs or writing in any form on official bulletin
boards or removal of approved notices without approval of the Human Resources
Department.

 

16.       Leaving the Plant at break or lunch period and not returning without
permission or notification.

 

17.       Entering or leaving the Plant by other than the authorized area assigned.

 

18.       Subtle forms of harassment, intimidation, or inappropriate language or
behavior.

 

19.       Failure to enter or improper entering of labor reporting.

 

19.       Leaving the grounds at lunch without clocking out/in.

 

Section B. MAJOR WORK RULES

 

1.         Insubordination (willful disobedience of authority).

 

2.         Theft.

 

3.         Bringing, having or consuming intoxicating beverages or narcotics in the
Plant or on Plant property.

 

4.         Smoking inside the walls of the facility.

 

5.         Willful damage to or unauthorized removal or appropriation of or defacing
property belonging to the Company or another employee.

 

6.         Walking off the job.

 

7.         Punching another employee’s time card in or out resulting in pay for time
not worked.

 

8.         Falsification of personnel records.

 

9.         Possession of firearms or any type of weapon on company property.

 

10.       Physical violence, aggressive retaliatory actions, verbal threats,
patterns of continued intentional harassment, sexual harassment, or any serious
violation of discrimination laws.

 

11.       Flagrant violation or reckless disregard of any safety rule or
policy which places the employee or others in danger.

 

53

 

12.       Being on company property while under the influence of alcohol, or any
other illegal or controlled substance.

 

Section C. PROGRESSIVE DISCIPLINE.  For all work
rules, with the exception of Rules of a Major nature, which may include
disciplinary measures up to and including termination.

 

·    1st
offense, Written Warning

 

·    2nd
offense, Final Written Warning

 

·    3rd
offense, 3 day suspension

 

·    4th
offense, termination

 

Section D. DURATION. All warnings will remain in effect until the one (1) year
anniversary date from the date of infraction.

 

ARTICLE XVII - DURATION OF AGREEMENT

 

Section A.  The Union and the Company mutually agree that
all of the provisions of the Agreement shall remain in full force and effect
without change up to and including February 15, 2011, unless changes by
mutual agreement and shall continue from year to year thereafter unless at
least sixty (60) days prior to February 15, 2011, or sixty (60) days prior
to any anniversary date thereafter, either party notifies the other, in writing
of its desire to terminate, modify, or change the Agreement.

 

Section B. RETIREMENT AGREEMENT. It is agreed that all the provisions of the
Retirement Agreement for Hourly Employees will be continued to February 15,
2008, in order to coincide with the expiration of that Contract.

 

IN
WITNESS WHEREOF, the parties have executed the foregoing Agreement this 15th
day of February, 2008.

 

U.A.W.
LOCAL 2359

Dwayne
Klier

Bryant
Harvey

 

54

 

Joe
Shoda

Randy
Lang

Bob
Madda

Rory
Krause

 

INTERNATIONAL
REPRESENTATIVE OF U.A.W.

Linda
K. Romanik

 

CONN-SELMER, INC.

Bob
Speed

John
Stifel

Bobbi
Imel

Linda
Iliano

 

Memorandum of Agreement

 

Effective
February 17, 1997, by mutual consent, the job classifications for Polisher
(5A41) and Buffer (5A42) will be recognized as separate jobs from this day
forward.  All previous related
memorandums of agreement will be considered null and void, and will not be
recognized from this day forward.  This
agreement does not change any portions of the current bargaining agreement, nor
does it change any other established employment practice not specifically
discussed.

 

Memorandum of Agreement

 

Effective
February 17, 1997, by mutual consent, the overtime hours for a five (5) hour
Saturday clean-up schedule, within departments 50 and 52, will be rotated
between those that volunteer for the available positions.  Only employees from departments 50, and 52
will be eligible to volunteer for the available positions.  The set positions on this clean-up crew will
be assigned by the company.

 

This
policy will not apply to a three (3) hour Saturday clean-up schedule
within departments 50, and 52, or to any other overtime schedule in other areas
of the shop.

 

This
agreement does not change any portions of the current bargaining agreement, nor
does it change any other established employment practice not specifically
discussed.

 

55

 

Letter of Understanding

 

If
“public authorities” declare a “State of Emergency” in Lake County, absent days
will be excused.

 

Letter of Understanding

 

An
employee with the job classification of buffing, polishing, color buffing and
sheet brass, that has reached 30 years or more of service in that job
classification will be able to submit a bid (downward, lateral or upward)  for an open position without loss of their
traditional pay rate.

 

Letter of Understanding

 

The
Union Committee and International Union Representative, if available, and
members of the management staff and Sr. V.P. of Operations, if available, will
meet every month to discuss issues related to the efficient operations of the
facility.

 

Letter of Understanding

 

The
Company will change from an accrued vacation period to a current vacation
period effective June 1, 2008.  In
order to bring employees current in this process, a one-time vacation payout
will be made by the end of June, 2008 for vacation that was earned from June 1,
2007 through May 31, 2008.  The
vacation rate will be the rate that was calculated on July 1, 2007.

 

Letter of Understanding:

 

In the event the company determines to outsource or subcontract work
performed at the facility, it will meet with the union to discuss the matter
further.  While the company will endeavor
to preserve work at the facility, all outsourcing or subcontracting options
will only be used to improve the competitiveness of student trumpets, student
cornets, and student trombones, and also specifically the 3⁄4 Baritone (Model
623).  Other instruments may be added
with mutual agreement with the company and the union.

 

Letter of Understanding:

 

The
cost of “emergency” medical treatment, for what was considered to be a “certified”
work related incident, that was later denied payment by the OBWC and the
employee’s medical 

 

56

 

insurance,
will be reimbursed by the company.  “Non-emergency”
injuries or illnesses, that may not be work related, or that will not be
granted “certification” by the company, will be referred to the employee’s
physician; and, if denied will not be eligible for reimbursement.

 

Letter of Understanding:

 

In
the event the company determines to insource production operations normally
performed at other manufacturing facilities, or develop and refine production
operations for other manufacturing facilities, these same operations will not
be construed as permanently assigned to this manufacturing facility.  This understanding, under these terms,
permits the company to restore, implement, or move these same production
operations to other alternative manufacturing facilities.

 

Letter of Understanding:

 

An
employee promoted to a supervisory or managerial position, or appointed or
elected to an assignment with the international union, shall be granted such
leave, and shall be guaranteed reemployment in the same or like position, in
line with his or her seniority at the prevailing rate of pay.  Seniority shall accumulate during such leaves;
however, all benefits provided under the terms of this collective bargaining
agreement shall terminate effective with the commencement of the said leave,
and shall reinstate upon return from said leave (based upon the benefit levels,
plans, and contributions in effect at that time).  Return rights, for either assignment, will be
limited to one occurrence per individual for future leave requests.  Any current leaves will not be accommodated
under these defined terms.

 

Letter of Understanding:

 

The
company agrees to maintain the payroll cycle on a weekly basis, and to provide
continued access to direct deposit. 
Voluntary, after-tax deductions may be combined with the normal union
dues deduction (when processed each month). 
Any additional, voluntary after tax deductions must be summarized and
submitted with the monthly union dues check-off list.

 

Letter of Understanding:

 

Employees, asked to perform work on regularly scheduled
holidays, will postpone holiday pay to an equivalent number of additional
personal holiday(s).  Any additional
personal holidays, 

 

57

 

accumulated in this manner, will be subject to the same
defined terms as identified under Article VII., Section C., d., #3.

 

Letter of Understanding:

 

Employees
that were previously disqualified from the job being recalled, will be
bypassed, and will retain their relative position on the recall list.  Internal job bids will only be compared to
the relative seniority, qualifications, and job factors that are presented by
the next employee eligible for recall from the layoff list.

 

Letter of Understanding:

 

During
the term of this agreement, if the company should permanently close the
Eastlake Facility or if the company should take action resulting in the
permanent displacement of at least 25% of the employees actively working as of February 15,
2005, upon request by the union the company will engage in negotiations with
the union over the effects of permanent closure or permanent displacement on
those affected employees.

 

Letter of Understanding:

 

The
company has reviewed the feasibility of installing showers for the polishing,
buffing, and color buffing departments and has agreed to install three (3) showers
within one (1) of the existing restrooms.

 

Letter of Understanding:

 

To
better facilitate lean manufacturing in the rough assembly departments the
company and union have agreed to combine Departments 35 and 38.

 

Letter of Understanding:

 

The
company has agreed to conduct periodic air quality monitoring of the Eastlake
facility.

 

Letter of Understanding:

 

In an endeavor to improve quality, the company and the union
have agreed to develop a response team(s) to address issues impacting /
impeding the facility in meeting production requirements.

 

58

 

U.A.W.
LOCAL 2359

 

 

	
  /s/
  Bryant Harvey

  	
   

  	
  /s/
  Dwayne Klier

  
	
  Bryant
  Harvey

  	
   

  	
  Dwayne
  Klier

  
	
   

  	
   

  	
   

  
	
  /s/
  Rory Krause

  	
   

  	
  /s/
  Randol Lang

  
	
  Rory
  Krause

  	
   

  	
  Randol
  Lang

  
	
   

  	
   

  	
   

  
	
  /s/
  Bob Madda

  	
   

  	
  /s/
  Joe Shoda

  
	
  Bob
  Madda

  	
   

  	
  Joe
  Shoda

  

 

 

INTERNATIONAL
REPRESENTATIVE OF U.A.W.

 

 

	
  /s/
  Linda Romanik

  	
   

  
	
  Linda
  Romanik

  	
   

  

 

 

CONN-SELMER,
INC.

 

 

	
  /s/
  Bob Speed

  	
   

  	
  /s/
  John Stifel

  
	
  Bob
  Speed

  	
   

  	
  John
  Stifel

  
	
   

  	
   

  	
   

  
	
  /s/
  Bobbi Imel

  	
   

  	
  /s/
  Linda Iliano

  
	
  Bobbi
  Imel

  	
   

  	
  Linda
  Iliano

  

 

59

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