Exhibit 10.7

     Exhibit 10.7











Exhibit 10.7 



ARTICLE I
1.1    This Agreement has been made and entered into by and between
Bayou Steel Corporation and its successors, if any, hereinafter referred to as
the “Company”, and the United Steelworkers of America,
AFL-CIO-CLC, hereinafter referred to as the “Union”. 

1.2    This Agreement covers those employees of the Company as
defined in Article III of this Agreement represented by the Union. 

1.3   This Agreement shall be dated October 18, 1999 and effective
October 18, 1999. 

 1.4    The provisions of this Agreement constitute the sole
procedure for the processing and settlement of any claim by an employee or the
Union of a violation by the Company of this Agreement. As the representative of
the employees, the Union may process, adjust, or settle grievances through the
grievance procedure, including arbitration, in accordance with this Agreement. 

1.5    The purpose of the Company and the Union entering into this
labor agreement is to set forth their agreement on rates of pay, hours of work,
and other conditions of employment so as to promote orderly and peaceful
relations with employees, to achieve uninterrupted operations in the plants, and
to achieve the highest level of employee performance consistent with safety,
good health, and sustained effort. 


ARTICLE II



RESPONSIBILITY OF THE PARTIES


2.1    Each of the parties hereto acknowledges the rights and
responsibilities of the other party and agrees to discharge its responsibilities
under this Agreement. 

2.2   In addition to the responsibilities that may be provided
elsewhere in this Agreement, the following shall be observed:








A.

There will be no union activity on
company time which will interfere with or impede production, maintenance, or
the operations of the Company.




B.

The policy of the Company, the Union and its local is not to discriminate
against any employee on account of race, creed, color, sex, age, national
origin, handicap, veteran status, or union membership or activity.




        All provisions
of this Agreement shall apply alike to male and female employees (masculine
pronouns or references in this Agreement shall be deemed to include feminine
pronouns or references). 













2.3    A Joint Committee on Civil Rights shall be established. The
Local Union President shall select no more than four (4) members of the Union as
representatives on the Committee. The Company will also select no more than four
(4) members as representatives. The Union members shall be certified to the
Company by the Union and the Company members shall be certified to the Local
Union President. 

        Meetings of the
Company and Union members of the Joint Committee shall be held no less than once
each month. The Joint Committee shall review matters involving Civil Rights and
sexual harassment and advise the Company and the Union concerning them, but
shall have no jurisdiction over the initiating or processing of existing right
to initiate a complaint or grievance pursuant to the Grievance Procedure. 

2.4    No Strike - No Lockout.






A.

The Union and the employees agree that during the term of this Agreement there
shall be no strikes, including wildcat and sympathy strikes, work stoppages,
interruptions or impeding of work. No officers or representatives of the Union
shall authorize, instigate, or conduct any such activities. No employees shall
participate in any such activities.




B.
There shall be no lockouts by the Company.





C.

Any claim for damages by either the Company or Union regarding an alleged
violation by the other party of paragraph 2.4 of this Agreement is neither
grievable nor arbitrable. Any claim as to any such alleged violation may be
brought directly in a court of law possessing jurisdiction under Section 301 of
the Labor-Management Relations Act, 29 U.S.C. Section 185.




2.5    Americans With Disabilities Act. The Union and the Company
agree that the Company may take all actions necessary, notwithstanding any
provision of this Agreement, to comply with the Americans With Disabilities Act.
By agreement between the Company and the Union, employees who suffer a
disability for which the employee has been provided a reasonable accommodation
in the employee’s present job may be exempted from and protected
against the exercise of the provisions of the Seniority Article of this
Agreement. 


ARTICLE III



UNION RECOGNITION


3.1    The Company recognizes the United Steelworkers of America,
AFL-CIO-CLC as the sole and duly authorized agency for collective bargaining for
all of its production and maintenance employees employed at the LaPlace,
Louisiana plant, including maintenance shift leaders, plant clericals, plant
custodians, quality control employees, scalemen, truck drivers and dock workers,
and excluding office clericals, planner schedulers, office custodians,
draftpersons, professional employees, watchmen, guards, and supervisors as
defined in the National Labor Relations Act, as amended. 


3.2   Company employees whose jobs are not in the bargaining unit may work on any
bargaining unit job as follows:








A.

Bona fide training of employees;













B.

Protection of life and property under
emergency conditions;





C.

Development of new equipment and
production techniques;





D.

Training of management personnel for
managerial duties;





E.

Adjustment of machinery and equipment
in cases of emergency and quality control;





F.

To cover during brief periods for
employee’s relief, or to cover for absenteeism until a qualified
bargaining unit person is available. The Company must make a diligent effort to
find a replacement consisting of notifying the Call Out Service;





G.

In an effort to promote and support
teamwork management judges that working enhances productivity, operations or
efficiency.




3.3    The Company will, with the employee’s consent,
designate in writing a number of bargaining unit employees to be used as
temporary replacements for salaried personnel. Employees assigned as temporary
supervisors will have the responsibility and obligation to document and
communicate to the Company all instances of misconduct and performance problems.
They shall not have authority to discipline a member of the bargaining unit. No
employee will be called by either party in arbitration or a grievance hearing to
testify as a witness regarding any events involving discipline which occurred
while the employee was assigned as a temporary supervisor. 

3.4    Employees assigned as leadmen will have the responsibility
and obligation to document and communicate to the Company all instances of
misconduct and performance problems. They shall not have authority to discipline
a member of the bargaining unit. No employee will be called by either party in
arbitration or a grievance hearing to testify as a witness regarding any events
involving discipline which occurred while the employee was assigned as a
leadman. 



ARTICLE IV



MANAGEMENT


4.1    The management of its business and plant and the direction
of the working forces is vested exclusively in the Company and includes the
right to hire and determine the number of employees and xxxxxxx levels, to
promote and demote, to transfer, to discipline or discharge for just cause and
to relieve employees from duty because of lack of work or for other legitimate
reasons. The Company retains its entrepreneurial rights which do not affect
wages, hours, or other terms and conditions of employment. The Company, in
exercising its rights, will observe the provisions of this Agreement. These
rights include the following: 















A.

Facilities, Equipment and Methods. To
control, determine and change the manner and the extent to which the Company’s
equipment, facilities and properties shall be operated, increased,
discontinued, temporarily or permanently in whole or in part by sale or
otherwise, decreased or located, and to introduce, operate and change, improve
methods, equipment, facilities, techniques and/or processes including to
contract for the services of an independent contractor. When the Company
exercises its absolute and discretionary right to contract out work in order to
minimize or avoid overtime no notice to the Union is required.





B.

Products. To determine and change the
methods of production and operations, items to be produced, and the equipment
to be used.





C.

Rules. To establish, distribute, and
enforce reasonable rules of employee conduct and performance.





D.

Benefits. With prior notice to the
Union, to establish and change any form of employee benefits not covered by
this Agreement, or which are in excess of and/or in addition to those provided
in this Agreement.




4.2    Nonwaiver of Rights. The failure of either the Company or
Union to exercise any of its rights under this Agreement shall not be construed
as a waiver of those rights. 


ARTICLE V



CONTRACTING OUT OF WORK


5.1    The Company recognizes the employee’s concern to
earn good wages and to have steady work and job security during the term of this
Agreement. The Union recognizes the Company’s need to be competitive as
a low cost producer in the marketplace. In recognition of these mutual concerns,
the parties agree as follows concerning contracting out. 

5.2    Bargaining unit employees shall perform the production work
in the plant on equipment owned by the Company and maintain, repair and service
the Company owned production facilities within the plant, except for or where
the Company determines there is (a) lack of skills, (b) lack of equipment, (c)
lack of adequate forces, (d) warranty requirements, (e) a determination is made
not to replace, use, or purchase equipment, (f) by contracting out it would
avoid an economic disadvantage or move the Company towards the goal of being the
low cost producer, either at the time of the decision or in the foreseeable
future. 

5.3    The Company may contract out work for performance outside
the plant. The cessation by the Company of an operation, department or method of
production, service or maintenance shall not be considered to be contracting out
under this Article. 

5.4    Any employee who is directly displaced from his job as a
result of contracting out will use his seniority to bump into other positions
for which he is immediately qualified as defined in Article XIII of this
Agreement and be paid at the rate of the job to which he has bumped. The
employee bumped by the individual directly displaced due to contracting out will
exercise his bumping rights in accordance with Article XIII. This sequence of
bumping will conclude when there are no positions left to bump. That employee,
in lieu of being laid off, will then be assigned to a xxxxxxxx’x
position with no reduction of his straight-time wage rate. Article XIII controls
subsequent bidding and promotion rights for employees displaced to any position,
including xxxxxxxx, as a result of contracting out; however, if no employee bids
on an entry level position then the most xxxxxx xxxxxxxx will be forced to
accept the position. Only employees bumped to the xxxxxxxx position as a result of
contracting out will be protected from being laid off from the
xxxxxxxx’x position as a result of management’s right to
determine xxxxxxx levels in the xxxxxxxx classification. If the Company
subsequently determines that there is to be a general layoff, the layoff
procedures otherwise provided for in the contract will apply to all persons in
the xxxxxxxx position. 














5.5    Except in the case of emergency or as described below, the
Company will notify the Union of its decision to contract out work. Upon such
notification, the Union may propose alternatives for consideration by
management. The decision to contract out will be at the sole discretion of the
Company. The parties agree that notice is not needed in the following instances: 







a.

As described in Appendix A-6;





b.

Augmenting the workforce.




 ARTICLE VI
CHECKOFF AND UNION MEMBERSHIP
6.1   The Company will check off employees’ monthly dues,
initiation fee and assessments, as designated by the International Treasurer of
the Union, as membership dues in the Union, on the basis of individually signed
voluntary checkoff authorization cards on forms furnished by the Union.
Deductions on the basis of authorization cards shall become effective for the
month in which the Company receives the voluntarily signed authorization cards
from the employee directly or the Local Union. The dues for a given month shall
be deducted from the first pay closed and calculated in the succeeding month.
The Company will promptly remit these Union dues, assessments and initiation
fees to the International Treasurer of the Union, Xxxx Xxxxxxx Xxxxxx,
Xxxxxxxxxx, Xxxxxxxxxxxx 00000. All such checks shall be made payable to the
order of the “United Steelworkers of America, AFL-CIO-CLC”. 

6.2    In order to promote harmonious relations between the
parties, the Union shall be given ample time and opportunity to participate in
the orientation of new employees by conducting a meeting with any new hires
eligible to join the Union. At the completion of such meeting, all persons who
are hereafter employed by the Company and who are eligible for membership in the
Union shall be given by a Union representative: a copy of this Agreement, a
Union membership application, a checkoff authorization card and a letter over
the signature of an officer of the Company advising the new employees that the
Union is the recognized bargaining agent for the employees and that membership
in the union is encouraged by the Company. A copy of such completed
authorization care and membership application shall be processed by the parties
in accordance with established procedures. Unless the International Treasurer of
the Union makes specific request to the contrary, the Company will deduct
initiation fees for employees who directly submit authorization cards to the
Company. 

6.3    The provisions of the Article shall be applied in accordance
and consistent with applicable provisions of Federal and State Law. 

6.4    The Union agrees to indemnify, defend and hold the Company
harmless against any and all claims, demands, suits, or other forms of liability
that shall arise out of or by reason of action taken or not taken by the Company
for the purpose of complying with any of the provisions of this Article. 













 ARTICLE VII
POLITICAL ACTION FUND
7.1    The Company will annually check off and transmit to the
Treasurer of the United Steelworkers of America Political Action Fund
(“USWA PAF”) voluntary contributions to the USWA PAF from
these earnings of those employees who voluntarily authorize such contributions
on forms provided for that purpose by the USWA PAF. The amount of such annual
checkoff deduction and the transmittal of such voluntary contributions shall be
as specified in such forms and in conformance with any applicable Federal or
State statue. 

7.2    The signing of such USWA PAF checkoff form and the making of
such voluntary annual contributions are not conditions of membership in the
Union or of employment with Company. 

7.3    The Union shall indemnify, defend and hold the Company
harmless against any and all claims, demands, suits or other forms of liability
that shall arise out of or by reason of action taken or not taken by the company
for the purpose of complying with any of the provisions of this Article. 

7.4    The United Steelworkers of America Political Action Fund
supports various candidates for Federal and other elective office, is connected
with the United Steelworkers of America, a labor organization, and solicits and
accepts only voluntary contributions, which are deposited in an account separate
and segregated from the dues fund of the Union, in its own fund raising efforts
and in joint fund raising efforts with the AFL-CIO and its Committee on
Political Education. 

7.5    The Union shall reimburse the Company for the expenses
incurred in making any payroll deduction for the USWA PAF. 



ARTICLE VIII



WAGES


8.1   The straight time wage rates, effective October 18, 1999,
for employees covered by this Agreement are listed in Appendix A-1 hereto. 

8.2    A cost of living adjustment which consists of a lump sum
payment will be made March 31, 1998; March 31, 1999; March 31, 2000; March 31,
2001; and March 31, 2002, which, lump sum payment will not be added to or
included in any straight time bargaining unit wage rate as set forth in Appendix
A-1. Such lump sum payments shall not exceed eighteen cents ($0.18) per hour
paid in the preceding calendar year for any payment date and shall be calculated
according to the formula set forth in Appendix A-2. Each lump sum payment is
payable only to the extent that a group of bargaining unit employees as defined
by the Incentive Group description within the ICP Plan does not earn the
equivalent of the calculated payment from the Incentive and/or Profit Sharing
Plans in the preceding calendar COLA payout year. The calculated payment will be
made only to those bargaining unit employees within the eligible group who do
not earn from the total payments received from the Incentive and/or Profit Sharing Plans during
the preceding calendar year an amount equal to or greater than the adjustment
equivalent described in Appendix A-2. The amount of the lump sum payment payable
to an employee will be the difference between the calculated adjustment average
per group and the sum of the Profit Sharing and/or Incentive Plans paid to the
employee during the preceding calendar year.














8.3    If the Company creates a new job or combines jobs, it shall
establish a rate of pay for the job which is equitable in relation to rates of
other established jobs in the same department, considering the skills and
responsibilities of the jobs. The Company will then add this new rate of pay to
the straight time bargaining unit wage rates set forth in Appendix A-1. The
Company shall notify the Union of the creation of the new job and if desired by
the Union, discuss the new job with the Union. A dispute regarding the rate of
the new job will be subject to the Grievance Procedure. Should the Company
assign a newly created job to a twelve (12) hour shift, the conversion rate from
eight (8) hours is 0.97657. 

8.4    Except as specifically provided in this Agreement, the
Company is under no obligation whatsoever to compensate employees engaging in
union or union-related business. However, nothing herein shall prohibit the
Company from so compensating employees at its sole discretion when it deems it
appropriate. 


ARTICLE IX



HOURS OF WORK


9.1     Purpose.  This Article defines the hours of work and shall not be construed as a
guarantee of shifts or hours of work per day, per week, or per year.

9.2    Workday. The workday shall be a twenty-four (24) hour period
commencing with the start of the employee’s scheduled shift. The
workday shall be a shift of either eight (8) or twelve (12) consecutive hours of
work within a twenty-four (24) hour period. 

9.3     Payroll Week.  The payroll week shall be seven (7) consecutive days beginning at
6:00 a.m. each Sunday. Employees will be paid on a weekly basis.

9.4     Workweek:







A.

The workweek for an eight (8) hour
shift is a seven (7) day period beginning with the first shift on Sunday and
ending with the third shift on Saturday. The workweek starts and ends at or
between 6:00 a.m. and 8:00 a.m. on Sunday.





B.

The workweek for a twelve (12) hour
shift is a seven (7) day period beginning with the first shift on Sunday and
ending with the second shift on Saturday. The workweek begins at 6:00 a.m. on
Sunday.





9.5    Shift Definitions and Schedules. The determination of shifts
and daily and weekly work schedules shall be made by the Company; providing that
schedules be on the basis of the workweek except where (a) deviations from the
workweek are necessary because of breakdowns, shutdowns, reductions in the work
force, or matters beyond the control of Management, or (b) schedules deviating from the workweek are established by
agreement between plant management and the Grievance Committee. 














9.6     Definition of Shifts.  If an eight (8) hour shift, the shifts will be: 







A.

Day Shift - All hours worked on any
shift which begins between 6:00 a.m. and 12:00 p.m.





B.

Afternoon Shift - All hours worked on
any shift which begins between 12:01 p.m. and 10:00 p.m.





C.

Night Shift - All hours worked on any
shift which begins between 10:01 p.m. and 5:59 a.m.





        If a twelve (12)
hour shift, the shift will be: 








A.

Day Shift - All hours worked on any
shift which includes 12:00 noon.





B.

Night Shift - All hours worked on any
shift which includes 12:00 midnight.





9.7    Schedules. Daily and weekly hours to be worked by each
employee shall be posted, or otherwise be made known to the employee in
accordance with prevailing practice, and not later than Thursday of the week
preceding the calendar week in which the schedule and shift becomes effective. 

        Should the
Company deem it necessary to install a new schedule or shift, the Company and
the Grievance Committee will meet to discuss the change and to agree upon a
mutually satisfactory schedule, if possible. Should agreement not be reached,
the Company shall install its proposed schedule subject to the other provisions
of this Article. 

9.8     Meal Periods.  The Company will allow employees a meal period without loss of pay
consistent with operational needs and prevailing practice. 

9.9     Break Periods.  The Company will allow employees break period without loss of
pay consistent with operating conditions.

9.10    Call Out Pay.  An employee who is called out, on his regular scheduled day off, with
less than sixteen (16) hours notice, will be paid the greater of:








A.

Actual hours worked paid at straight
time hourly rate plus applicable premiums; or





B.

Six (6) hours pay at employee’s
straight time hourly rate exclusive of any premiums




        The day on which
time is worked on a call-out is considered as a day worked for the sixth (6th)
and seventh (7th) day pay computation. All hours worked immediately preceding or
following an employee’s regularly scheduled shift are not considered as
call-out time worked. These hours will be paid at the job rate plus pay
premiums. 













9.11    Report-in Pay. Should an employee begin work as scheduled
and then be released from duty (other than for personal reasons of the employee)
prior to the end of their scheduled shift, shall be paid for a minimum of six
(6) hours or for all hours worked, whichever is greater, at their straight time
hourly rate plus shift differential. 


ARTICLE X



HOLIDAYS


10.1    Days Observed.  The following days shall be observed as holidays: New Year’s Day,
Mardi Gras Day, Good Friday, Fourth of July, Labor Day, Thanksgiving Day, Day following
Thanksgiving Day, December 24, and Christmas Day.

10.2    Hours Worked on Holiday. Employees required to work on a
Company recognized holiday will be paid double time for all hours worked.
Holiday premium is computed on the straight hourly rate of pay as defined in
Article XI — Overtime, exclusive of shift differential. All such hours
worked on holidays will be used in computing overtime in Article XI —
Overtime. 

10.3     Pay For Holidays Not Worked.







A.

Employees on an eight (8) hours
schedule: An eligible employee who does not work on a Holiday listed in
Paragraph 10.1 above shall be paid eight (8) hours at his straight time hourly
rate.





B.

Employees on a twelve (12) hour
schedule:




1)

An eligible employee whose scheduled day off coincides with a holiday listed in
Paragraph 10.1 above and who does not work shall be paid eight (8) hours at his
straight time hourly rate.




2)

An eligible employee who normally would have been scheduled to work on a holiday
but does not work due to a shutdown will be paid twelve (12) hours at his
straight time hourly rate as holiday pay.





10.4    Eligibility. An employee is eligible for holiday pay if:
(1) he has completed his probationary period prior to the date of the holiday;
and (2) has worked in the payroll week prior to or the payroll week in which the
holiday occurs; and (3) has worked his last scheduled workday before the holiday
and his first scheduled workday following the holiday or if he is scheduled to
work on the holiday, has worked such holiday, except in the case of when he has
failed to report or perform work because of a confirmed sickness, or because of
death in the immediate family as defined in Article XXI. 

10.5     Observance.  Holidays will be observed on the dates as listed above. Holidays will
be observed during a twenty-four (24) hour period beginning 6:00 a.m. on the day of the holiday for
employees on a twelve (12) hour schedule. For employees on an eight (8) hour schedule the holiday
will be observed during a twenty-four (24) hour period beginning at or between 6:00 a.m. and 8:00
a.m. on the day of the holiday. These times are subject to change if the starting times of shifts are
altered.














10.6   Holiday During A Vacation. When a holiday occurs during an
eligible employee’s scheduled vacation, he shall be paid for the
unworked holiday, eight (8) hours at his straight time hourly rate (without
regard to the provisions of Paragraph 10.3) in addition to his vacation pay. 


ARTICLE XI



OVERTIME


11.1     Purpose.  This Article is intended to provide a basis for computing overtime and shall
not be construed as a guarantee of hours per day, per week or per year.

11.2    Overtime work may be required of employees from time to
time. Employees required to work overtime beyond the scheduled daily shift shall
be notified at least four (4) hours prior to the end of his shift except in
cases of emergency involving absent employees, bodily injury, loss and/or damage
to material or equipment, or immediate loss of production. 

11.3    The regular rate of pay, as the term is used in this
section, shall mean the applicable straight time hourly wage rate for the job
performed as set forth in Article VIII of this Agreement and shift differential
where applicable (hereinafter referred to as “the job rate”). 

11.4     Overtime Pay.







A.

Daily and Weekly Overtime:





Time
and one-half (1-1/2) the regular rate of pay will be paid for hours worked in
excess of eight (8) hours in a workday for eight (8) hour shift employees, or in
excess of twelve (12) hours in a workday for twelve (12) hour shift employees.





Time
and one-half (1-1/2) the regular rate of pay will be paid for hours worked in
excess of forty (40) hours in a workweek.





B.

Sixth Day:






Employees
working six (6) days in a payroll week will be paid time and one-half (1- 1/2)
the regular rate of pay for all hours worked on the sixth (6th) day. To include
a day for the sixth (6th) day pay computation, a twelve (12) hour shift employee
must work six (6) or more consecutive hours or an eight (8) hour shift employee
must work four (4) or more consecutive hours in each of the five (5) preceding
days, unless any of such days include hours considered as worked as referred to
in Paragraphs 9.10, 9.11.





C.

Seventh Day:






Employees
working seven (7) consecutive days in a payroll week will be paid double (2)
times the regular rate of pay for all hours worked on the seventh (7th) day. To
include a day for the seventh (7th) day pay computation, a twelve (12) hour
shift employee must work six (6) or more consecutive hours or and eight (8) hour
shift employee must work four (4) or more consecutive hours in each of the six
(6) preceding days, unless any of such days include hours considered as worked
as referred to in Paragraphs 9.10, 9.11.











11.5     Meal Allowance.  The Company will pay a meal allowance of ten (10) dollars to each
employee held over without prior notice for four (4) hours or more.

11.6    Distribution Of Overtime. It is the intent of both parties
that overtime should be distributed equitably among the employees involved. The
Company and the Local Union Grievance Committee shall agree on providing for the
most equitable distribution of voluntary and involuntary overtime consistent
with the efficient operation of each department. 

11.7    Nonduplication. There will be no more than one (1) premium
paid for the same hours worked. There will be no pyramiding of pay premiums.
When more than one (1) premium or overtime rate applies to the same hours of
work, the higher rate shall be paid. 


ARTICLE XII



SHIFT DIFFERENTIAL PAY


12.1      Shift Differential Amount.









A.

Eight (8) Hour Shift:





For
hours worked on the day shift no shift differential will be paid. For hours
worked on the afternoon shift twenty-five cents ($0.25) per hour shift
differential will be paid. For hours worked on the night shift, forty cents
($0.40) per hour shift differential will be paid.





B.

Twelve (12) Hour Shift:






For
hours worked on the day shift no shift differential will be paid. For hours
worked on the night shift forty-five cents ($0.45) per hour shift differential
will be paid.




12.2    Applicable Shift Differential. If an employee works during
hours which extend over more than one (1) shift, the appropriate shift
differential will be paid for the hours actually worked on each shift. 

12.3    When Paid. Shift differential shall be included in the
calculation of overtime compensation. Shift differential shall be paid for
reporting pay, call-out pay or allowed time when the hours for which payment is
made would have called for a shift differential if worked. 











 ARTICLE XIII
SENIORITY
13.0    Seniority Defined.  Seniority means the length of uninterrupted plant service since
the employee’s last date of hire. 

13.1     Definitions: 







a)

A “promotion” is where an
employee moves to another job within their line of progression paying a higher
rate than the employee’s present job. 





b)

A “lateral move” is where an
employee moves to another job paying the same rate within a line of
progression. 





c)

A “transfer” is a move into
another line of progression.





d)

Job “canvassing” is the
process of screening employees within a line of progression to fill open jobs
in place of bidding. 





e)

A “waiver” is an employee’s
written notification of their intent not to advance to a permanent job within
their line of progression. 




13.1.A.     Bid On Open Job Classifications.






1)

Posting. A job identified as a bid job on the lines of progression, shall be
posted on the plant wide bulletin boards and placed on a telephone answering
machine from Tuesday through the following Monday. The posting will state the
rate of pay and the qualifications needed to be awarded the job. A job bid
status report will be posted on the bulletin boards every Friday.




2)

The employer may fill an open job classification on a temporary basis not to
exceed fourteen (14) calendar days during the bidding process.




3)

Frequency. An employee may receive a job award as a result of bidding not more
than once every six (6) months unless the employee is the only eligible bidder.
When an eligible employee bids and is awarded a Xxxxxxxx’x position,
the employee may bid for a position for which he has the qualifications within
that department regardless of the 6 month bid restriction.




4)

New employees hired into a department cannot bid out of that department for 12
months from their date of hire. This provision supercedes any provisions to the
contrary. People bidding out of shipping after 12 months must meet the minimum
requirements for the job plus have a high school diploma/G.E.D. and successfully
pass the selection tests utilized for screening external hires for entry into
that department. They will be given the opportunity to take these selection
tests before completion of their first 12 months of employment.












5)   Selection. 







a)

The most senior employee bidding among
other bidding employees having relative equal ability and qualification to
perform the open job shall be awarded the job within twenty one (21) calendar
days, except those jobs which require testing and additional time. Departmental
preference will be given to job awards; bids from outside of the department
will only be considered if no employee from within the department bids. The
employee will receive the rate of pay of the awarded job when they are awarded
the job. 





b)

Employees within a job may bid to
change their shift along with other bidding employees. Employees seeking to
change their shift will have preference over employees seeking promotion,
transfer or a lateral move. It is recognized that management must retain a
sufficient number of trained employees on any given shift, regardless of
seniority, to assure the efficient and orderly operation of the plant. If an
employee is refused a bid to change shift due to insufficient numbers of
trained employees on any given shift and within six (6) months trained
employees are available he will be allowed to change shift.






c)

After an employee is awarded the open
job, the employee may not be retained on their former job for more than thirty
(30) days during which time they shall receive the pay of the awarded job if
that rate is higher. 





d)

An employee who takes a job as a result
of a successful bid may choose to return to their previous job within fourteen
(14) calendar days of beginning work on the awarded job. The employee will be
restricted from being awarded another bid job for six months unless the
employee is the only eligible bidder. If an employee returns to their job
classification within fourteen (14) calendar days, the least senior of the
employees who has bid into that classification within the same fourteen (14)
calendar days will be displaced. 





e)

An employee who has accepted a position
as a result of a job bid may refuse the job and remain in their current job.
The employee will be restricted from being awarded another bid job for six
months unless the employee is the only eligible bidder.






f)

Awarding of a job to an employee
nullifies all outstanding job bids of that employee.





g)
 If
during a ninety (90) calendar day evaluation period an employee has not
displayed the aptitude for the job, the employee will be returned to their
previous job and shift.




13.1.B.     Canvassing Open Job Classifications.  Jobs identified as canvassed jobs on the
                  lines of progression will be filled in the following manner:















1)

Canvassing will take place first within
the open job classification for shift preference. It is recognized that
management must retain a sufficient number of trained employees on any given
shift, regardless of seniority, to assure the efficient and orderly operation
of the plant. If an employee is refused a bid to change shift due to
insufficient numbers of trained employees on any given shift and within six (6)
months trained employees are available he will be allowed to change shift.





2)

Secondly, canvassing within the line of
progression will be done for lateral moves.





3)

Canvassing will then take place in the
next lower job within the line of progression.




4)

The most senior employee canvassed among other canvassed employees having
relative equal ability and qualification to perform the open job shall be
awarded the job.




5)

After an employee is awarded the open job, the employee may not be retained on
their former job for more than thirty (30) calendar days during which time they
shall receive the pay of the awarded job if that rate is higher.





13.1.C.   Waiver. Employees who intend not to advance to a permanent job within their
                  line of progression may sign a notification and present it to the Human Resources
                  Department under the following conditions:







1)

Waivers submitted between July 1 and December 31 will be effective January 1.
Waivers submitted between January 1 and June 30 will be effective July 1.




2)

The number of waivers cannot exceed 50% of the employees within a job
classification. (The Company has removed this waiver restriction effective
9/26/99, however with 90 days advance notice, it may reinstate this restriction
should it determine that it has created a succession planning problem.)




3)

The least senior qualified employee in the next lower job who does not have an
effective waiver to progress will be forced to accept the open job if the job
has not been filled through canvassing.




4)

A waiver will remain in effect until the employee gives written notification to
the Human Resources Department. The waiver will be revoked thirty (30) calendar
days after this notification is submitted.





13.2    Reduction In Work Force and Recall.

A.   Layoff.






1)

STEP One — Identification of Affected Employees. Management will identify
the jobs to be affected by a layoff. Layoffs of personnel shall be in the
inverse order of seniority in a job within a line of progression.













2)

STEP Two  — An Employee’s Right to
Displace Other Employees.







a)

An employee who is identified on the
layoff list as being subject to layoff may exercise their seniority against a
less senior employee in the same job, a lateral job or a lower rated job in the
same line of progression for which the employee has the ability and
qualification as follows: 





1)

The exercise of seniority shall first
be against the least senior employee in the same job.





2)

The exercise of seniority shall next be
against the least senior employee in all jobs lateral to the affected employee’s
job in the same line of progression.







3)

The third step in exercising seniority
shall be against the least senior employee in the next lower rated job or jobs.
If this lower level has lateral jobs then the third step is against the least
senior employee in all the lateral jobs.





b)

Should there be no employee junior in
the employee’s line of progression, the affected employee may displace the
least senior employee in any job in any line of progression in the same
department which the employee has previously been awarded and performed or had
performed the job on a temporary basis for sixty (60) workdays. The employee
must demonstrate within a two day reorientation period that they have the
qualifications and ability to satisfactorily perform the job.






c)

Should there be no employee junior in
the employee’s department whom the employee may displace, the affected
employee may displace the least senior employee in any job in any line of
progression in any department in which the employee has previously been awarded
and performed or had performed the job on a temporary basis for sixty (60)
workdays. The employee must demonstrate within a two day reorientation period
that they have the qualifications and ability to satisfactorily perform the
job. 





d)

Should there be no employee junior in
any department which the employee had previously worked whom they can displace,
the employee to be laid off may displace the least senior employee in the
bumpable jobs as identified in Appendix A-1 of this Agreement.






3)

STEP Three — Right of Displaced
Employees. 






 An
employee who is displaced by a more senior employee during a layoff shall have
the identical right to displace another less senior employee as described in
this section.












B.

Recall and Return of Laid Off Employees.







1)

When a group or an entire shift of laid off employees are recalled as a result
of a change in the mode of operation, they shall be returned to openings that
occur (after canvassing and bidding have taken place in the department from
which the employees were laid off) providing they have the ability to perform the job. The Company
shall not be required to train laid off employees or employees bidding to fill
such openings. An employee will be entitled to a reorientation period of up to
two (2) days during which the employee must demonstrate that they have the
qualifications and ability to satisfactorily perform the job.






2)

In circumstances other than a change in the mode of operation, laid off
employees having the ability to perform an open job shall be returned to the
open job in the order of seniority after canvassing and bidding among employees
in the department in which the opening occurs. Should a maintenance position
open, the most senior laid off maintenance employee with the requisite skills
will be returned to the open job.





13.3    Temporary Reduction in Force and Transfers. To avoid
confusion and interference with efficient plant operation, the provisions of
this Article with respect to a reduction in force, will not be applicable where
the reduction in force lasts fourteen (14) calendar days or less. 

13.4   Break in Continuous Service.







A.

An employee will lose continuous
service under the terms of this Agreement if they:





1)

Fail to contact the Company within five
(5) days (excluding holidays and weekends) after receiving notice of their
recall to work by registered mail, “Restricted Delivery, Return Receipt
Requested” to their last known address and arrange to return to work
within fourteen (14) days (excluding holidays and weekends) of the recall or if
this notice is returned undeliverable;





2)

Are discharged for cause;





3)

Resigns;





4)

Are working on another job while on
leave of absence from the Company except as provided in Article XIV, Sections
14.4 and 14.5;





5)

Are laid off and their recall rights
expire. The individual’s recall rights will be considered for two (2)
years or their length of plant service, up to a maximum of five (5) years;







B.

Absence due to a compensable disability incurred during the course of employment
shall not break continuous service, provided such individual is returned to work
within thirty (30) days after final payment of statutory compensation for such
disability, or after the end of the period used in calculating a lump-sum
payment.




13.5    Probationary Period. An employee’s seniority shall
commence with the employee’s most recent date of hire, provided the
employee is retained beyond a ninety (90) day probationary period. New employees
shall not be regarded as regular employees for the first ninety (90) days of
their employment, during which probationary period of ninety (90) days the
Company may discharge any such new employee and such discharge shall be in the
sole discretion of the Company and not subject to the Grievance and Arbitration Procedure set forth in
this Agreement. All employees who have been employed for a period of less than
ninety (90) days shall have no seniority rights. 



















13.6     Notice to Union. The Company shall notify the Union of all
dismissals, layoffs and recalls of employees. 

13.7    Seniority List. The Company shall prepare for the Union a
seniority list including first and last name of employee, job classification,
seniority date, department and employee number once per year. The list will be
posted on all designated bulletin boards by March 1 of each calendar year. A
copy of this list will be provided to the Union President prior to posting. 

        Each employee
will verify in writing to the Human Resources Department at least once per year
his or her seniority date. 



13.8     Temporary Assignments 








A.

A temporary assignment is defined as
duties assigned to an employee on any given shift which are not typical of
their normal job classifications.





B.

A temporary assignment does not include
the filling of a vacant position.





C.

In those cases when a supervisor knows
prior to the beginning of a shift that a temporary assignment will be necessary
and no employee volunteers for such assignment, the least senior employee among
those employees available will be temporarily assigned.





D.

In those cases when a temporary
assignment is required during the course of a shift the supervisor will
identify the employee within a job classification that is available and assign
the work. If there is more than one available employee within the job
classification, the least senior employee will be forced.







E.

Whenever an employee is temporarily
assigned for management’s convenience to a lower rated job, they shall get
paid the rate of their regular job if that rate is higher. Whenever an employee
is temporarily assigned for management’s convenience to a higher rated
job, they shall be paid the higher rate.




13.9    Promotion Out Of The Bargaining Unit. When a bargaining
unit employee is promoted out of the bargaining unit into a
supervisory/management position, the individual shall continue to accrue
seniority for six (6) months. Thereafter, further continuous service with the
Company in a supervisory/management position will not be credited for seniority
under this Agreement. 

        Should the
Company, in its discretion, return the employee to the bargaining unit the
employee’s seniority at the time of return will consist of the
employee’s accrued seniority up to the time of promotion and up to six
(6) months as a supervisor/manager. 














13.10    Temporary Vacancy 









A.

Definitions:





1)

Long Term Temporary Vacancy — A vacancy which extends beyond thirty (30)
calendar days due to the absence of a presently active status employee.




2)

Short Term Temporary Vacancy — A vacancy which is of a duration less than
thirty (30) calendar days due to the absence of a presently active status
employee.





B.

Long Term Temporary Vacancy




1)

Once it is determined that a vacancy will extend beyond thirty (30) calendar
days, the open job may be filled through canvassing and bidding as described in
section 13.1.




2)

If the absent employee returns, all employees affected by the canvassing and
bidding of the temporary vacancy will return to their previous positions. They
will also return to their previous shift as soon as is practical.




3)

At the time that the Company determines to fill the position of the absent
employee, the employee temporarily filling the position and all other employees
affected by the canvassing and bidding will be awarded the positions on a
permanent basis which they had been temporarily filling.




4)

If a position opens in the same job classification to which another employee is
temporarily assigned, canvassing will take place both within the classification
and in the lower classification at the same time to determine to whom the job
will be awarded.





C.

Short Term Temporary Vacancy





1)

A short term temporary vacancy may be filled by stepping up within the line of
progression to the next higher rated position by shift and qualification.




2)

Whenever an employee steps up within the line of progression to a higher rated
job, the employee will receive the higher rate of pay.




3)

The entry level position may be filled utilizing a xxxxxxxx. If the position is
not filled by utilization of a xxxxxxxx, voluntary overtime will be posted
within the department. Among those qualified employees volunteering for such
overtime, equitable distribution of overtime will be utilized. Should no
employee volunteer, an employee with the least amount of overtime worked and
refused will be assigned.




4)

Whenever an employee is temporarily assigned for management’s
convenience to a lower rated job, they shall get paid the rate of their regular
job if that rate is higher. Whenever an employee is temporarily assigned for
management’s convenience to a higher rated job, they shall get paid the
higher rate.















5)

Whenever an employee volunteers for a
lower rated job, the employee shall be paid the hourly rate of the job worked.
If such hours worked should result in overtime for the employee, the overtime
premium will be one half the
employee’s total straight time wages divided by the total hours worked
in that week.





13.11    Non Bargaining Unit Employees. As of the effect date of
this Agreement, any non- bargaining unit employee who enters into the unit, will
have this entry date into the bargaining unit become their seniority date for
the purpose of but not limited to the following: vacation scheduling,
canvassing, bidding and reduction in force. 

        For all other
purposes, including but not limited to: vacation eligibility and calculations
for benefits, etc., the seniority date of this individual will be their length
of uninterrupted continuous service since the employee’s last date of
hire. 


ARTICLE XIV



LEAVE OF ABSENCE




14.1    The provisions of this Article are for the purpose of
maintaining an employee’s uninterrupted seniority during authorized
periods of leave of absence and for no other purpose. 

14.2    Leave of absence may be granted to a non-probationary
employee by the Company, in its discretion, for an initial period not to exceed
thirty (30) calendar days without prejudice to his seniority rights, provided
the employee applied for such leave, in writing, and gives valid reasons for
such request. Extensions may be granted at the Company’s discretion in
increments not to exceed thirty (30) days each. 

14.3    No consecutive leave of absence may be longer in the
aggregate than an employees length of continuous service at the time of his
initial leave or for more than one (1) year, and no leave will be extended
beyond a period of one (1) continuous year. 


14.4    Exceptions to Paragraphs 14.2 and 14.3 above are as
follows: 









A.

An employee who engages in employment
elsewhere during an approved leave of absence shall be considered as having
voluntarily quit.





B.

An employee elected or appointed to a full-time Union position shall be granted
a leave of absence during the duration of such service in elected or appointed
position and shall retain recall rights to the bargaining unit with accrued
seniority during the term of such leave of absence. Not more than two (2)
employees from the plant may at one time be on a leave of absence granted under
the provisions of this subsection, however, upon mutual agreement, additional
such leaves may be granted.





14.5    Management will confirm in writing all leaves of absence
granted or denied and will give copies to the Local Union. 
















14.6    If an employee fails to report for work upon the
expiration of an authorized leave of absence and does not give a satisfactory
explanation for not reporting, he shall be considered as having voluntarily
quit as of the expiration of the leave of absence.  



14.7    The Company may, at any time, require verification of the
reason and necessity for a leave of absence. 

14.8    Leaves will normally be without pay except that continuous
service will accrue during such leave. 

14.9    Nothing herein shall restrict or prohibit the Company from complying
with or exercising its rights under the Family and Medical Leave Act or
regulations. 



ARTICLE XV



VACATIONS




15.1    Employees are entitled to a paid vacation on the following
basis: 













Years ofEmployment
     
Amount of Vacation
More than One (1)
     
Eighty (80) hours if on (8) hour shift; Eighty-four (84) hours if on a twelve hour shift
     
 More than Five (5)
     
One hundred twenty (120) hours if on an eight (8) hour shift;
One hundred twenty-six (126) hours if on a twelve (12) hour shift
     
 









15.2 










A.

Vacation eligibility and use is based
on the calendar year.





B.

The amount of vacation to which an
employee is entitled is determined by the employee’s length of service in
the calendar year during which the vacation is taken.




C.

In the calendar year during which an employee celebrates his first employment
anniversary, an employee may take vacation prior to completing one (1) year of
employment. An employee with less than one (1) year of employment may receive
one (1) week of vacation after nine (9) months of continuous employment, and may
receive a second one (1) week of vacation after eleven (11) months of continuous
employment.




D.

Effective 1/1/2000 employees with 20 or more years seniority who are eligible to
receive a vacation in a calendar year will be provided a one week vacation bonus
to be paid with the first week of scheduled vacation that year. The amount of
that bonus will be as provided in Article 15.5.




15.3     To be eligible to receive a vacation in a calendar year,
the employee must have been actively at work at least eight hundred (800) hours,
including vacations and holidays, during the preceding calendar year and one (1)
day during the calendar year in which the vacation is taken. 


15.4    Employees may not accumulate or carry over unused vacation
into future years. 



15.5    Vacation Pay. Vacation pay is at the employee’s
straight time hourly rate and does not include any premium or differentials. 


15.6    Scheduling. 








A.

Vacation will be scheduled by
management on the basis of a workweek.




B.

Vacation may be taken a week at a time except as follows: Employees on an eight
(8) hour shift may take forty (40) hours of vacation one day at a time; twelve
(12) hour shift employees may take three (3) days off paid at fourteen (14)
hours per day one day at a time subject to departmental and scheduling
requirements.





C.

Vacation will be scheduled on a
departmental basis.





D.

Vacation requests for a specific week
must be made by December 1, prior to the calendar year during which the
vacation is to be taken.





E.

In the event management determines to
shut down part or all of the plant, vacation may be scheduled during the
shutdown.





















F.

Conflicts between or among employees
within a department regarding vacation requests will be resolved on the basis
of plant-wide seniority.





G.

Should a holiday occur during an employee’s vacation, the employee
(regardless of the shift to which the employee is assigned) will receive an
additional eight (8) hours pay at the employee’s straight time hourly
rate.




H.

All rotating shift employees may elect to sell any earned and unused vacation
back to the Company. If the Company does not receive requests to buy back
vacation weeks by June 1 of every year equal to the number of rotating shift
employees whom have earned three weeks vacation then the Company will force the
least senior rotating shift employees to sell one week of vacation as follows:





Rotating
shift employees entitled to one hundred twenty (120) hours if on an eight (8)
hour shift and one hundred twenty six (126) hours if on a twelve (12) hour shift
will be required to sell forty (40) or forty two (42) hours, respectively, of
vacation back to the Company.





15.7    Termination. Upon termination, an employee will be paid an
amount equal to the vacation to which he is entitled in that calendar year, less
any vacation taken during that calendar year. 


ARTICLE XVI



GRIEVANCE PROCEDURE



16.1    Definition of Grievance. The term
“Grievance”, as used in this Agreement, is limited to a
complaint or request of an employee which involves the interpretation, or
application of, or compliance with the provisions of this Agreement. 


16.2    Procedure. Grievances are to be processed in the following
manner: 









Problem Resolution:






Any employee who believes that he has a complaint or request shall discuss the
matter with his supervisor in an attempt to settle the matter within twenty
(20) calendar days of the event giving rise to the matter being presented to
the supervisor. During the discussion with his supervisor, the employee may
elect to have his Grievance Committeeperson or his designee present.





Step 1.

If the employee’s request or
complaint is not resolved by the end of the twentieth day the Grievance
Committeeperson or his designee, in his discretion, may elect to reduce the
complaint or request to a written grievance on the form attached to this
Agreement as Appendix B and will fully complete such form. If the matter is not
reduced to writing and submitted to the Supervisor by the twentieth day from
the event giving rise to the matter it will be considered closed and not
subject to the grievance procedure. Such grievance will be submitted to the
employee’s supervisor and within ten (10) calendar days the supervisor
will give his written reply to the Grievance Committeeperson or his designee.














Step 2.

Should the complaint or request fail
to be settled in Step 1, the Chairperson of the Grievance Committee or his
designee, in his discretion, may elect to appeal the grievance to Step 2 within
seven (7) calendar days of the receipt of the Step 1 answer. Within fourteen
(14) calendar days of the receipt of the written appeal a written reply will be
provided to the Chairperson of the Grievance Committee or his designee. During
the fourteen (14) calendar days a meeting will be held between the Chairperson
and the Department Superintendent, or their designees, up to two (2) Grievance
Committeepersons and any witnesses when needed. At the option of the
Chairperson of the Grievance Committee, a grievance affecting employees in more
than one (1) department may be filed directly at Step 3.






Step 3.

If the grievance is not settled in
Step 2, the Chairperson or his designee, in his discretion, may appeal the
grievance to Step 3 within seven (7) calendar days of receipt of the Step 2
answer. Within thirty (30) calendar days of the appeal, a meeting shall be held
between the International Union Staff Representative or his designee, the
Chairperson of the Grievance Committee, up to two (2) other members of the
Committee, any witness when needed and the Vice President of Plant Operations
and/or his designated Company representatives to consider the grievance. The
Company will reply in writing within seven (7) calendar days of the Step 3
meeting. The reply will include a summary of the Company’s position and
the reason therefore. 





STEP 4.

Regular Arbitration. If a grievance
cannot be settled in Step 3, such grievance, at the discretion of the
International Union Staff Representative, may be appealed to arbitration within
ten (10) calendar days from the receipt of the decision rendered inStep 3. A
neutral arbitrator satisfactory to both sides shall be selected by the parties.
In the event that the Union and the Company cannot agree upon an arbitrator
within ten (10) calendar days after the Staff Representative of the
International Union has appealed the case to arbitration, then the Staff
Representative of the International Union shall, within ten (10) calendar days,
request the Federal Mediation and Conciliation Service to submit a panel of
five (5) qualified arbitrators.








 Within
ten (10) calendar days of receipt of the panel, a representative of the Company
and the Representative of the International Union shall alternatively strike
names from the panel until one (1) remains who may be the arbitrator. If either
Union or Company rejects the first panel or the final arbitrator, the rejecting
party shall within ten (10) calendar days request the Federal Mediation and
Conciliation Service to submit one additional panel. Within ten (10) calendar
days of receipt of the second panel, a representative of the Company and the
Representative of the International Union shall alternatively strike names from
the panel until one (1) remains who shall be the arbitrator.







 The
arbitrator to which any grievance shall be submitted in accordance with the
provisions of this Article shall only have jurisdiction and authority to
interpret, apply or determine compliance with the provisions relating to wages,
hours of work, and other conditions of employment, as set forth in this
Agreement, insofar as shall be necessary to the determination of such
grievance, but he shall not have jurisdiction or authority to add to, subtract
from, or alter in any way the provisions of this Agreement.


















Said
arbitrator so appointed shall decide the dispute and the decision shall be
final and binding upon the Union and the Company and any employee affected. The
parties shall equally share the expense of the Arbitrator.




16.3     Time Limits. Time limits are considered by the parties to
be a matter that is of the essence of this Agreement. Failure of the Company to
answer within the time limits provided, may result in the grievance being moved
to Expedited Arbitration at the sole discretion of the International Union Staff
Representative or his designee. Failure of the Union to meet any time limits
will cause the grievance to be considered closed and not subject to the
grievance procedure. Time limits in any and all steps of the Grievance Procedure
may be extended by mutual agreement and will be reduced to writing. 

16.4    Settlement. In all steps of the Grievance Procedure, the
Company representative shall have authority and responsibility to settle the
complaint, request or grievance. The Union representative shall have authority
to settle, withdraw or refer the complaint, request or grievance as provided in
each step. A settlement is Step 1 or Step 2 is without precedent or prejudice to
the positions of the parties, and a settlement at any other step may be without
prejudice or precedent by mutual agreement of the parties. A withdrawal of a
grievance at any step is without prejudice or precedent. 


16.5     Grievance Handling. Not withstanding any other provisions
of this Agreement, the Grievance Committee members and Local Union President
may visit departments other than their own, at all reasonable times, for the
purpose of transacting the legitimate business of the committee after receiving permission from the department to be visited,
from their own Department Head or designated representative. Permission shall
not be unreasonably withheld. 




16.6    Plant Visitation. A representative of the International
Union shall have access to the plant, subject to the established plant rules,
at reasonable time to investigate grievances with which he is concerned. 


16.7   Union Grievance Committee. The Grievance Committee shall
consist of six (6) Zone Grievance persons and the Chairman of the Grievance
Committee. The Union shall designate the geographical area or departments
comprising each zone. 

        Grievance
Committee members and grievants shall be afforded such time off with pay as may
be required in order to attend scheduled grievance meetings. 

        Officers and
Grievance Committee members will be designated in writing by the Local Union to
the Company. 


16.8    Expedited Arbitration. 








A.

Grievances which have been processed through Step 3 and appealed to Step 4,
except grievances involving significant or complex contractual interpretations
or any issues affecting a group of employees, may be submitted to Expedited
Arbitration by agreement of the International Union Staff Representative and the
Company 4th Step representative.
















B.

A permanent panel of six (6) arbitrators and rules for operation of such panel
and issuing of such awards shall be designated by the International and
corporate office of the parties. Arbitrators on the panel will be listed in the
alphabetical order of their last names. Arbitrators will be selected from the
panel on a rotating basis in the order in which they appear on the alphabetical
list. If the next arbitrator is not available to conduct a hearing within thirty
(30) days of appointment, the next arbitrator on the list shall be appointed.




C.

All grievances eligible for Expedited Arbitration, pending on the day of the
Expedited Arbitration hearing, will be heard by the Arbitrator in the order of
the dates of their filing. Expedited Arbitration of an eligible grievance will
be held no later than thirty (30) days after completion of Step 3. By agreement
of the Parties, this time can be extended to a mutually agreed time.




D.

Hearing procedures shall be informal. The Arbitrator is required to ensure
fairness for all parties. The Employer has the burden to show just cause. Briefs
shall not be filed. Transcripts will not be made. The parties will not be
represented by attorneys or outside representatives. The Arbitrator will issue a
written award. The award will be issued no later than twenty-four (24) hours
after the hearing or may be in the form of a “bench award”. An
expedited award shall not constitute a precedent for any other grievance, nor
shall an expedited award be referred to in any other grievance proceeding. The
parties shall equally share the expense of the Arbitrator. An expedited award is
final and binding on the parties.





16.9    Review. The parties agree that at the end of one (1) year
they will review the operation of the Grievance and Arbitration Procedures and
will implement any mutually agreeable changes to improve the functioning of such
procedure. 


ARTICLE XVII



SUSPENSION AND DISCHARGE


17.1    Suspension and Discharge. In cases in which the Company may
conclude that an employee’s conduct may justify a suspension and/or
discharge, they shall be suspended initially for up to five (5) calendar days,
and given written notice of such action. Whenever practical, prior notification
of a suspension will be given to the Union and a preliminary hearing will be
held. 

        If an employee
is suspended, and if the employee believes they have been dealt with unjustly,
either the individual or the Union may request, and shall be granted, a formal
hearing and a statement of the offense before a designated Company
representative with or without a Grievance Committeeperson present as the
employee may choose. At this hearing the facts concerning the case shall be made
available to both parties. After such hearing, or if no such hearing is
requested, the Company may conclude whether the suspension shall be affirmed,
modified, extended, revoked, or converted into a discharge. In the event the
suspension is affirmed, modified, extended, or converted into a discharge, the
employee may within ten (10) calendar days of such action, file a grievance.
Grievances concerning disciplinary action will be at the Second Step for
suspension, or at the Third Step of the Grievance Procedure if the disciplinary
action imposed is a discharge. 














        All grievances
relating to discharges shall be heard at Step Three (3) within ten (10) calendar
days of the filing of the grievance. Such grievances, in the discretion of the
International Union Staff Representative or their designee, may be appealed to
arbitration. Grievances relating to discharge shall be heard in arbitration with
precedence over any other pending arbitration cases. 


17.2    Notice to Union. In all cases of discharge and suspension,
a copy of the discharge or suspension notice shall be promptly furnished to the
Union. 

17.3    Grievances relating to suspensions or discharges may be
processed pursuant to the Expedited Arbitration Procedure set forth in Section
16.7 of this Agreement when mutually agreed upon. 

17.4     The Arbitrator, in his discretion, may modify the penalty
of discharge to a lesser disciplinary penalty and may award full or partial
backpay. Any award of backpay shall be subject only to applicable statutory
offsets. 

17.5     An employee who is summoned to meet in an office with a
supervisor other than their own immediate supervisor for the purpose of
discussing possible disciplinary action against that employee, shall be entitled
to be accompanied by their Grievance Committeeperson if they request such
representation, provided such representative is then available, and provided
further that, if such representative is not then available, the
employee’s required attendance at such meeting shall be deferred only
for such time during that shift as is necessary to provide opportunity for them
to secure the attendance of such representative. 




ARTICLE XVIII



SAFETY AND HEALTH




18.1     Objective and Obligations of the Parties. The Company and
Union will cooperate in the continuing objective to eliminate accidents and
health hazards. The Company shall continue to make provisions for the safety and
health of its employees at the plant during the hours of their employment. 

18.2     Safety Committee. A joint safety committee shall continue
to function in the plant. The joint safety committee shall consist of the Union
and Company Co-Chairpersons, six (6) Company representatives, six (6) Union
representatives, and any other persons agreed upon by the Co-Chairpersons. The
purpose of this advisory committee shall be to review safety practices,
procedures, and conditions in the plant and to recommend changes where such
changes are deemed advisable. The Union and the Company shall designate their
respective Co-Chairperson and shall certify to each other in writing such
Co-Chairpersons and Committee members. The Committee shall hold monthly meetings
on the second Wednesday of each month at 10:00 a.m. unless both parties mutually
agree otherwise. The Co-Chairpersons may also agree to hold special meetings,
preferably outside of regular working hours. Each Co-Chairperson shall submit a
proposed agenda to the other at least five (5) days prior to the monthly
meeting. 

        The Company
Co-Chairperson shall provide each member of the Committee with minutes of the
monthly meeting. 

















        A departmental
safety inspection will be held each month by the department Superintendent and
the Union Safety Representative or their designees. 


18.3     Protective Devices. Protective devices, wearing apparel
and other equipment necessary to properly protect employees from injury shall
be provided by the Company on the following basis: 






A.

The Company will provide each employee with the required protective clothing and
equipment. Employees will be required to turn in to the Company their worn-out
protective clothing and equipment as a prerequisite for receiving replacements.
Such exchanges will be approved by the employee’s supervisor. If
clothing or equipment is lost or abused, employees will be required to purchase
the protective item.






B.

Employees will be required to wear at
all times designated protective clothing and equipment.




C.

Each employee shall be responsible for maintaining and laundering his green
clothing unless working in a controlled area. The Company may assess an employee
a fair charge to cover loss or willful destruction of safety equipment which has
been issued to the employee at Company expense.




18.4     Working Alone. Employees will not be required to work alone
or beyond the call or observation of other persons employed by the Company where
to do so would expose employees to greater hazards than those normally inherent
in the job. 



18.5     Unsafe Conditions. An employee who believes that he is
working under conditions which are unsafe or unhealthy beyond the normal hazards
inherent to his job shall notify his Supervisor who shall make an immediate
investigation. If the Supervisor agrees that an unsafe condition exists, the
Supervisor will either correct the condition or grant the employee relief from
the job. If the Supervisor does not find that an unsafe condition exists, he
shall so inform the employee and give him the reasons for his decision. If the
employee is not satisfied with the results of the investigation, an immediate
meeting will be arranged with the Department Superintendent, or his designated
alternate, and the Union and Company Safety Committee Co-chairpersons, or their
designated alternates. If the matter cannot be resolved to the mutual
satisfaction of the parties, the Union will file a grievance in step 3
contending the existence of an unsafe condition and requesting that if an unsafe
condition exists, that the matter be corrected. The Step 3 meeting and answer
will be expedited. If the Union elects to arbitrate the grievance, both parties
will make every effort to bring about a quick settlement. 

        In reference to
the above, an employee has the right to relief from the job without loss of his
right to return to such job, and at Management’s discretion assignment
to such other employment as may be available in the plant, provided however,
that no employee other than communicating the facts relative to the safety of
the job shall take any steps to prevent another employee from working on the
job. Should either the Management or the Arbitrator conclude that an unsafe
condition within the meaning of this Section existed and should the employee not
have been assigned to other available equal or higher rated work, he shall be
paid for the earnings he otherwise would have received. An employee contesting
an unsafe condition will not suffer any loss of earnings until the completion of
the meeting with his Superintendent and Safety Committee Co- Chairperson. 















18.6 







A.

In the event of accidents which resulted in disabling injury or death or
accidents which could have resulted in disabling injury or death require a
fact-finding investigation, the Company will, after making its investigation, at
the request of the Union Co-Chairperson of the Safety Committee, supply to him a
statement of the nature of the injury, the circumstances of the accident, and
any recommendations available at that time, and will consider any
recommendations available he may wish to make regarding the report. In such
cases, when requested by the Union Co-Chairperson, the Company Co-Chairpersons
of the Safety Committee or his designated representative, when requested by the
Union Co-Chairperson, will visit the scene of the accident with the Union
Co-Chairperson or in his absence, his designated substitute.





B.

Once each year the Company will provide
to the International Union Safety and Health Department a copy of the completed
OSHA Form 200.




18.7    First Aid. The Company will provide first aid facilities at
the plant to the extent necessary to provide adequate first aid for all
employees. A registered nurse or licensed practical nurse or emergency medical
technician will be provided by the Company. 

18.8    It is intended that consistent with the foregoing functions
of the Safety and Health Committee, the International Union, Local Union, Union
Safety Committee and its officers, employees and agents and individual employees
and managers of the employer shall not be liable for any work-connected
injuries, disabilities, or diseases which may be incurred by employees. 


18.9     All employees shall be instructed on the lock-out
procedure; any and all violations shall be reported on and “Unsafe
Practice and Condition Report” to the Safety Committee Co- Chairpersons
and the Department Superintendent. 

18.10     The Policy on Drugs, Alcohol and Controlled Substances
dated August 15, 1990 shall remain in effect throughout the term of this
Agreement. 


ARTICLE XIX



BULLETIN BOARDS



19.1    The Company and the Union will utilize bulletin boards
located in the following areas: 







Melt Shop Furnace Pulpit
     
Maintenance Building Break Room
     
Melt Shop Casting Break Room
Change House
Melt Shop Maintenance
Employee parking Lot
Rolling Mill Floor
Human Resources
Roll Shop
Administrative Building
 




        The Company will
utilize these bulletin boards as one of the official means of communicating
corporate policy and announcements. The Union will utilize the bulletin boards
for notices of its recreational and social affairs, Union elections and results
thereof, appointments to Union office, announcements of Local Union meetings and
copies of this Agreement. All Union communications must be posted only upon
authority of officially designated representatives of the Union. Union notices
reflecting adversely on the Company or any of its employees, customers,
suppliers or contractors will not be posted. 















 ARTICLE XX
MILITARY SERVICE
20.1     Re-employment Rights. The Company shall accord to each
employee who applies for re-employment after conclusion of his military service
with the United States such re- employment rights as he shall be entitled to
under the then existing statutes. 

20.2    Training. Reasonable programs of training shall be employed
in the event employees do not qualify to perform the work on the job which they
might have attained except for absence in such service. 

20.3    Special Leave of Absence. Any employee so applying for
reinstatement shall be granted upon request a leave of absence without pay not
to exceed sixty (60) days before he shall be required to return to work. 

20.4     Educational Leave of Absence. Any employee entitled to
reinstatement under this section who applies for re-employment and who desires
to pursue a course of study in accordance with the Federal Law granting him such
opportunity before or after returning to his employment with the Company shall
be granted a leave of absence for such purpose; provided that an employee who desires such a leave of absence after returning to his
employment with the Company shall have it granted only if he notifies the
Company in writing, within one year from the date he is re-employed, of his
intention to pursue such a course of study. Such leave of absence shall not
constitute a break in the record of continuous service of such employee but
shall be included therein provided the employee reports for re-employment after
the completion or termination of such course of study. Any such employee must
notify the Company and the Union in writing at least once a year of his
continued interest to resume active employment with the Company upon completing
or terminating such course of study. 




20.5     Disabled Returning Veterans. Any employee entitled to
reinstatement under this Section who returns with service-connected disability
incurred during the course of his service shall be assigned to any vacancy which
shall be suitable to such impaired condition during the continuance of such
disability, irrespective of seniority, provided however, that such impairment is
of such a nature as to render the veteran’s returning to his own job or
department onerous or impossible, and provided further that the veteran meets
the minimum physical requirements for the job available, or for the job as
Management may be able to adjust it to accommodate the veteran’s
impairment. 

20.6    Special Vacation Provisions. An employee who at the time of
leaving active employment to enter military service of the United States has
qualified for a vacation in the year of such entrance and who has not received a
vacation or vacation allowance shall then be granted such allowance, provided
however, that a volunteer shall have given fourteen (14) days notice of
intention to enlist. 

        An employee, who
after being honorable discharged from the military service of the United States
is reinstated pursuant to this Section ninety (90) days prior to the end of the
vacation year shall be entitled to a vacation with pay or, in lieu thereof, to
vacation allowance in and for the vacation year in which he is reinstated. 















20.7     Military Encampment Allowance. An employee who is required
to attend an annual training encampment or cruises of the Reserve of the Armed
Forces or the National Guard shall be paid, for a period not to exceed two (2)
weeks in any calendar year, the difference between the amount paid by the
Government and the amount of straight time pay he would have earned for the days
he would have worked had he not been attending such encampment during such two
(2) weeks (plus any holidays in such two (2) weeks which he would not have
worked plus any scheduled overtime he would have worked). If the period of such
encampment exceeds two (2) weeks in any calendar year, the period on which such
pay shall be based shall be the first two (2) weeks he would have worked during
such period. The employee will be reimbursed after presentation of a military
pay voucher. 



ARTICLE XXI



FUNERAL PAY


21.1     When death occurs to an employee’s spouse, mother,
father, grandparent, mother-in- law, father-in-law, son, daughter, grandchild,
brother, or sister (including stepfather, stepmother, stepchildren, stepbrother
or stepsister) of an employee, upon request to Departmental Supervision, will be
excused and paid to a maximum of three (3) scheduled shifts, or for such fewer
shifts as the employee may be absent, which fall within a three (3)
consecutive calendar day period; provided however, that one such calendar day
shall be the day of the funeral or memorial service and it is established that
the employee attended the funeral or memorial service. Unpaid funeral leave for
any other relationship may be granted at the discretion of Departmental
Supervision in coordination with the Human Resources Department. 



21.2    Employees shall be paid for each day lost from work under
the terms of this Article at eight (8) times the employee’s hourly rate
or twelve (12) times the employee’s hourly rate for each day the
employee is scheduled to work a twelve (12) hour shift. An employee will not
receive funeral pay when it duplicates pay received for time not worked for any
other reason. Days lost in accordance with the provisions of this Article will
be counted as days worked for purposes of calculating overtime. 


ARTICLE XXII



ALLOWANCE FOR JURY OR WITNESS SERVICE


22.1    An employee who is called for jury service or subpoenaed as
a witness shall be excused from work for the days on which he serves. Service,
as used herein, includes required reporting for jury or witness duty when
summoned, whether or not he is used. When subpoenaed by other than the Company,
the employee will not be reimbursed if the employee, the Company, or the Union
is a party in the case, or the employee has any direct interest or financial
interest in the case. 

22.2     Such employee shall receive, for each day of service on
which he otherwise would have worked, the difference between the payment he
receives for such service and his regular straight-time pay, exclusive of any
premiums. 













22.3    The employee will present proof that he did serve or report
as a juror, or was subpoenaed and reported as a witness, and the amount of pay,
if any, received therefore. 



ARTICLE XXIII



EMPLOYEE PARTICIPATION AND TEAMWORK



23.1    The Company and the Union recognize the need to be
competitive in the marketplace. In recognition of this need, the parties agree
to utilize the principles of employee participation and teamwork to identify
potential areas for cost reduction/containment, productivity improvements and
other matters which are not directly covered by this Agreement. 


ARTICLE XXIV



APPRENTICESHIP PROGRAM


24.1    If the Company decides to institute an apprenticeship
program for electrician, mechanical-millwright, welder, machinists craft jobs
(electronic technicians, maintenance technicians, hydraulic technicians,
mechanics) the Company will meet with the International Union at the time of deciding to institute the program for the purpose of developing the apprenticeship
program. 



ARTICLE XXV



PENSION AND RETIREMENT SAVINGS PROGRAMS




25.1    The Company agrees to maintain for the duration of this
Agreement the benefits provided in the Bayou Steel Corporation Pension Plan for
Bargained Employees effective October 1, 1991 and will endeavor to promptly
provide a Summary Plan Description in conformity with the terms of this
Agreement and any applicable Federal and State laws. Such Summary Plan
Description shall contain a claims procedure in compliance with applicable
Federal and State laws, which procedure is incorporated by reference herein. The
amount of retirement benefit payable at normal retirement age will be based upon
the years of service multiplied by twelve dollars ($12.00) per month for each
year of service. Effective October 2, 1996, this amount shall be increased to
thirteen dollars ($13.00) per month, and effective October 2, 1998, to fourteen
dollars ($14.00), and effective October 2, 2000, to fifteen dollars ($15.00) for
employees retiring on or after each respective date. 

25.2    Effective within the first year of this Agreement, the
Company will establish a Retirement Savings Plan under Internal Revenue Code
Section 401(k). 

25.3    Effective 1/1/2002 the Company will establish a supplement
to the existing 401(k) plan whereby the Company will contribute an amount of
money into each employee’s 401(k) account. This contribution will be
made no later than January 15th of each year. Employees must be actively
employed on January 1st of each contribution year. The contribution will be
based on a percent of the employee’s prior calendar year total base pay
earnings. The percent will be based on the employees age and years seniority on
January 1st. The Company will request that the Internal Revenue Service issue a
favorable determination letter on this supplement to the 401(k) plan. If the
Internal Revenue Service does not approve this supplement to the 401(k) plan,
the Company and the Union will meet to establish a different supplement to the
401(k) plan to be provided in lieu of this benefit. 


If Age + Service is:                  The “Percent Contribution” will be:
--------------------                  ---------------------------------------------

      30 to 49                                     1%
      50 to 59                                     2%
      60 to 69                                     3%
      70 to 79                                     4%
         80+                                       5%



ARTICLE XXVI



INSURANCE PROGRAM



26.1    Company Will Provide Group Coverage. The Company agrees to
maintain for the duration of this Agreement a group insurance program and will
endeavor to promptly provide a new Summary Plan Description in conformity with
the terms of this Agreement and any applicable Federal and State Laws. Such
Summary Plan Description shall contain a claims procedure in compliance with
applicable Federal and State Laws, which procedure is incorporated by reference
herein. 

        The
Company’s health care proposal presented to the Union herewith will be
the basis for the group health care coverage referenced in 26.1. The life, A D
& D, dental and short term disability insurance plans in effect as of
the effective date of this Agreement will be maintained. Effective January 1,
2000, the employee life insurance will be increased from one time (1x) the
employee’s annual base pay to one and one-half times (1.5x) the
employee’s annual base pay. 


26.2    Company Will Select Provider. The Company reserves the
unilateral right to retain the insurance provider or providers of its choice,
to self-insure or to self-fund any benefit plan, providing benefits are
equivalent to those in effect. 


ARTICLE XXVII



SAVINGS CLAUSE


27.1    It is assumed by the parties hereto that each provision of
this contract is in conformity with all applicable laws of the United States and
of the State of Louisiana. Should it later be determined that it would be a
violation of any legally effective Federal or State Order or Statue to comply
with any provision of this Agreement or should any benefit negotiated and
described in this Agreement be modified, altered, eliminated, or otherwise
affected by any statute or regulation promulgated or issued by the federal or
state government or federal or state agency or department, the parties hereto
agree to renegotiate any such provision or provisions of this Agreement for the
purpose of compliance to such Federal or State Order or Statute so long as they
shall remain legally effective, and the other provisions of this Agreement shall
not be affected thereby. 













 ARTICLE XXVIII
TERMINATION DATE
28.1    This Agreement shall continue in effect from October 18,
1999 , to and including October 18, 2006 , and unless either party notifies the
other party in writing, of its desire to amend or terminate the said Agreement,
it will continue in effect from year to year thereafter. 

28.2    The parties will meet within thirty (30) days after the
giving of notice by either party for the purpose of entering into negotiations. 


APPENDIX A-1 STRAIGHT-TIME BARGAINING UNIT WAGE
RATES




DEPARTMENT     JOB TITLE                           8-HR RATE   12-HR RATE
----------     ---------                           ---------   ----------
MELT SHOP      Leadman A (MS)                       18.8107     18.3700
               Leadman B (MS)                       17.3157     16.9100
               Leadman C (MS)                       15.5340     15.1700
               Leadman D (MS)                       14.4690     14.1300
               1st Helper A                         17.9199     17.5000
               1st Helper B                         16.8959     16.5000
               1st Helper C                         15.8719     15.5000
               1st Helper D                         14.7557     14.4100
               1st Operator A                       17.9199     17.5000
               1st Operator B                       16.8959     16.5000
               1st Operator C                       15.8719     15.5000
               1st Operator D                       14.7557     14.4100
               L.M.F. Ladle Furnace Operator A      16.8959     16.5000
               L.M.F. Ladle Furnace Operator B      15.8719     15.5000
               L.M.F. Ladle Furnace Operator C      14.7557     14.4100
               2nd Helper A                         14.7557     14.4100
               2nd Helper B                         14.1823     13.8500
               2nd Helper C                         13.5372     13.2200
               2nd Helper D                         13.2197     12.9100
               2nd Operator A                       14.7557     14.4100
               2nd Operator B                       14.1823     13.8500
               2nd Operator C                       13.5372     13.2200
               2nd Operator D                       13.2197     12.9100
               Ladle Operator A                     14.7557     14.4100
               Ladle Operator B                     14.1823     13.8500
               Ladle Operator C                     13.5372     13.2200
               Ladle Operator D                     13.2197     12.9100
               Xxxxx A                              14.5304     14.1900
               Xxxxx B                              13.7625     13.4400
               Xxxxx C                              12.9945     12.6900
               Xxxxx D                              12.2879     12.0000
               Mold Setup A                         14.5304     14.1900
               Mold Setup B                         13.7625     13.4400
               Mold Setup C                         12.9945     12.6900
               Mold Setup D                         12.2879     12.0000






















DEPARTMENT               JOB TITLE                                           8-HR RATE   12-HR RATE
----------               ---------                                           ---------   ----------
                         Crane Operator I (Charging)                          13.5400     13.2228
                         Crane Operator II (Teeming)                          13.0000     12.6954
                         Crane Operator III (Scrap)                           11.9200     11.6407
                         Torchman A                                           13.2197     12.9100
                         Torchman B                                           12.5337     12.2400
                         Torchman C                                           11.9193     11.6400
                         Torchman D                                           10.6290     10.3800
                         Steel Pourer                                         11.9200     11.6407
                         Xxxxxxx                                              10.9500     10.6934
                         Xxxxxxxx I                                           10.9500     10.6934
                         Xxxxxxxx II                                          10.6300     10.3809
                         Janitor                                               6.5400      6.3868


MS MATERIAL HANDLING     Mechanic "A"                                         14.8888     14.5400
& EQUIPMENT              Mechanic "B"                                         14.3768     14.0400
                         Mechanic "C"                                         13.8649     13.5400
                         Mechanic "D"                                         13.3119     13.0000
                         Locomotive Operator                                  12.5700     12.2755
                         Crane Operator III (Scrap Yard)                      11.9200     11.6407
                         Heavy Equipment Operator                             11.9200     11.6407

MS MAINTENANCE           Electrical/Instrumentation Leadman "A"               21.2600     20.7619
                         Electrical/Instrumentation Leadman "B"               19.4300     18.9748
                         Electrical/Instrumentation Leadman "C"               17.5800     17.1681
                         Electrical/Instrumentation Leadman "D"               16.2000     15.8204
                         Electrical/Instrumentation Technician "A"            21.2600     20.7619
                         Electrical/Instrumentation Technician "B"            19.4300     18.9748
                         Electrical/Instrumentation Technician "C"            17.5800     17.1681
                         Electrical/Instrumentation Technician "D"            16.2000     15.8204
                         Electrical/Instrumentation Technician Trainee I      14.8100     14.4630
                         Leadman A (MTC)                                      18.3700     17.9396
                         Leadman B (MTC)                                      16.9070     16.5109
                         Leadman C (MTC)                                      15.2570     14.8995
                         Leadman D (MTC)                                      14.5420     14.2013
                         Maintenance Technician "A"                           17.9199     17.5000
                         Maintenance Technician "B"                           15.3700     15.0099
                         Maintenance Technician "C"                           13.8700     13.5450
                         Maintenance Technician "D"                           13.2200     12.9103
                         Maintenance Technician Trainee I                     12.5700     12.2755

ROLLING MILL             Leadman A (Rolling Mill)                             18.8107     18.3700
                         Leadman B (Rolling Mill)                             17.3157     16.9100
                         Leadman C (Rolling Mill)                             15.5340     15.1700
                         Leadman D (Rolling Mill)                             14.4690     14.1300
                         Leadman A (Roll Shop)                                17.0700     16.6700
                         Leadman B (Roll Shop)                                16.6604     16.2700
                         Leadman C (Roll Shop)                                15.5340     15.1700
                         Leadman D (Roll Shop)                                14.4690     14.1300
                         P-2 Operator A                                       17.9199     17.5000
                         P-2 Operator B                                       16.8959     16.5000
                         P-2 Operator C                                       15.6671     15.3000
                         P-2 Operator D                                       14.7557     14.4100
                         P-1 Operator A                                       16.8959     16.5000























DEPARTMENT          JOB TITLE                                             8-HR RATE   12-HR RATE
----------          ---------                                             ---------   ----------
                    P-1 Operator B                                         15.8719     15.5000
                    P-1 Operator C                                         14.7557     14.4100
                    P-1 Operator D                                         14.0185     13.6900
                    Machine Operator A                                     14.8880     14.5392
                    Machine Operator B                                     14.3766     14.0398
                    Machine Operator C                                     13.8649     13.5400
                    Machine Operator D                                     12.9945     12.6900
                    Mill Watch A                                           14.5612     14.2200
                    Mill Watch B                                           14.0492     13.7200
                    Mill Watch C                                           13.5372     13.2200
                    Mill Watch D                                           13.0047     12.7000
                    P-3 Operator A                                         14.0185     13.6900
                    P-3 Operator B                                         13.6089     13.2900
                    P-3 Operator C                                         12.9945     12.6900
                    P-3 Operator D                                         12.7999     12.5000
                    P-4 Operator A                                         14.0185     13.6900
                    P-4 Operator B                                         13.6089     13.2900
                    P-4 Operator C                                         12.9945     12.6900
                    P-4 Operator D                                         12.7999     12.5000
                    Mill Builder & Changer A                               13.8649     13.5400
                    Mill Builder & Changer B                               13.2197     12.9100
                    Mill Builder & Changer C                               12.2469     11.9600
                    Mill Builder & Changer D                               10.9465     10.6900
                    Mill Support A                                         12.7999     12.5000
                    Mill Support B                                         12.5439     12.2500
                    Mill Support C                                         11.9193     11.6400
                    Mill Support D                                         11.6530     11.3800
                    Crane Operator IV (Mill)                               11.9200     11.6407
                    P-7 Operator/Tagger I                                  11.6000     11.3282
                    Xxxxxxxx I                                             10.9500     10.6934
                    Xxxxxxxx II                                            10.6300     10.3809
                    Utility Operator I                                     10.9500     10.6934
                    Janitor                                                 6.5400        --

RM MAINTENANCE      Electrical/Instrumentation Leadman “A”                 21.2600     20.7619
                    Electrical/Instrumentation Leadman “B”                 19.4300     18.9748
                    Electrical/Instrumentation Leadman “C”                 17.5800     17.1681
                    Electrical/Instrumentation Leadman “D”                 16.2000     15.8204
                    Electrical/Instrumentation Technician “A”              21.2600     20.7619
                    Electrical/Instrumentation Technician “B”              19.4300     18.9748
                    Electrical/Instrumentation Technician “C”              17.5800     17.1681
                    Electrical/Instrumentation Technician “D”              16.2000     15.8204
                    Electrical/Instrumentation Technician Trainee I        14.8100     14.4630
                    Leadman A (MTC)                                        18.3700     17.9396
                    Leadman B (MTC)                                        16.9070     16.5109
                    Leadman C (MTC)                                        15.2570     14.8995
                    Leadman D (MTC)                                        14.5420     14.2013
                    Maintenance Technician “A”                             17.9199     17.5000
                    Maintenance Technician “B”                             15.3700     15.0099
                    Maintenance Technician “C”                             13.8700     13.5450
                    Maintenance Technician “D”                             13.2200     12.9103
                    Maintenance Technician Trainee I                       12.5700     12.2755
                    Maintenance Technician Trainee II                      11.9200     11.6407


















DEPARTMENT             JOB TITLE                                            8-HR RATE   12-HR RATE
----------             ---------                                            ---------   ----------
SUPPORT SERVICES       Electrical/Instrumentation Leadman “A”                21.2600     20.7619
                       Electrical/Instrumentation Leadman “B”                19.4300     18.9748
                       Electrical/Instrumentation Leadman “C”                17.5800     17.1681
                       Electrical/Instrumentation Leadman “D”                16.2000     15.8204
                       Electrical/Instrumentation Technician “A”             21.2600     20.7619
                       Electrical/Instrumentation Technician “B”             19.4300     18.9748
                       Electrical/Instrumentation Technician “C”             17.5800     17.1681
                       Electrical/Instrumentation Technician “D”             16.2000     15.8204
                       Electrical/Instrumentation Technician Trainee I       14.8100     14.4630
                       Leadman A (MTC)                                       18.3700     17.9396
                       Leadman B (MTC)                                       16.9070     16.5109
                       Leadman C (MTC)                                       15.2570     14.8995
                       Leadman D (MTC)                                       14.5420     14.2013
                       Maintenance Technician “A”                            17.9199     17.5000
                       Maintenance Technician “B”                            15.3700     15.0099
                       Maintenance Technician “C”                            13.8700     13.5450
                       Maintenance Technician “D”                            13.2200     12.9103
                       Maintenance Technician Trainee I                      12.5700     12.2755
                       A/C Maintenance Technician A                          17.9199     17.5000
                       A/C Maintenance Technician B                          15.3700     15.0099
                       A/C Maintenance Technician C                          13.8700     13.5450
                       A/C Maintenance Technician D                          13.2200     12.9103
                       A/C Maintenance Technician Trainee                    12.5700     12.2755
                       Machinist “A”                                         16.7000     16.3087
                       Machinist “B”                                         15.3700     15.0099
                       Machinist “C”                                         13.8700     13.5450
                       Machinist “D”                                         13.2200     12.9103
                       Machinist Trainee                                     12.5700     12.2755
                       Janitor                                                6.5400        --

SHIPPING               Leadman A (ST)                                        15.2370     14.8800
                       Leadman B (ST)                                        14.9810     14.6300
                       Leadman C (ST)                                        14.7250     14.3800
                       Leadman D (ST)                                        14.4690     14.1300
                       Customer Service Rep. A                               12.5439     12.2500
                       Customer Service Rep. B                               12.4927     12.2000
                       Material Handler A                                    12.0319     11.7500
                       Material Handler B                                    11.7759     11.5000
                       Material Handler C                                    11.2639     11.0000
                       Material Handler D                                    10.9465     10.6900
                       Crane Operator III (Dock)                             11.9200     11.6407
                       Xxxxxxxx I                                            10.9500     10.6934
                       Scale Operator                                         9.1038      8.8905
                       Barge Expediter                                        8.1903      7.9984
                       Janitor                                                6.5400        --

QUALITY ASSURANCE      Billet Inspector (Rework)                             11.6000     11.3282
                       Crane Operator A (Billet Yard)                        12.9945     12.6900
                       Crane Operator B (Billet Yard)                        11.9193     11.6400
                       Crane Operator C (Billet Yard)                        11.2700     11.0059
                       Lab Technician A                                      15.8719     15.5000
                       Lab Technician B                                      14.7557     14.4100






















DEPARTMENT               JOB TITLE                                        8-HR RATE   12-HR RATE
----------               ---------                                        ---------   ----------
                         Lab Technician C                                  13.1890     12.8800
                         Lab Technician D                                  12.0524     11.7700
                         Rework                                             9.0600      8.8477

COMMERCIAL OPERATIONS    Warehouse Attendant “A”                           10.6300     10.3809
                         Warehouse Attendant “B”                           10.3000     10.0587
                         Warehouse Attendant “C”                            9.9800      9.7462




APPENDIX X-0
 
X-0

Adjustment For Calculation of the Lump
Sum Payment in Paragraph 8.2





A.   1)

 Consumer Price Index refers to the
Consumer Price Index for Urban Wage Earners and Clerical Workers United States
- All items (CPI-W) (1967-100) published by the Bureau of Labor Statistics,
U.S. Department of Labor.







2)

If payable, the Consumer Price
Adjustment Dates and Index Base Dates are:





a)

Adjustment dates are March 31, 1998;
March 31, 1999; March 31, 2000; March 31, 2001 and March 31, 2002.






b)

The base for the March, 1998 adjustment
will be the CPI for January 1997, and the adjustment will be based on the
January 1998, CPI.





c)

The base for the March, 1999 adjustment
will be the CPI for January 1998, adjusted, if necessary, to insure full credit
for a rise in the index, and the adjustment will be based on the January 1999,
CPI. 





d)

The base for March, 2000 adjustment
will be the CPI for January 1999, adjusted, if necessary, to insure full credit
for a rise in the index, and the adjustment will be based on the January 2000,
CPI. 





e)

The base for March 2001, adjustment
will be the CPI for January 2000, adjusted, if necessary, to insure full credit
for a rise in the index, and the adjustment will be based on the January 2001,
CPI. 





f)

The base for March 2002, adjustment
will be the CPI for January 2001, adjusted, if necessary, to insure full credit
for a rise in the index, and the adjustment will be based on the January 2002,
CPI.





g)

With respect to the adjustments
referred to in (c) through (f) above, the base shall be adjusted to insure
credit for a rise in the CPI in the prior year of less than .3 point, provided
that such prior rise did not exceed 10.8 points.










B.

Effective on each adjustment date an adjustment equal to one cent (1(cent)) per
hour for each full three tenths (0.3) of a point change in the Consumer Price
Index, if payable, will be in lump sum form for total hours paid in the
preceding calendar year and will not be added to or included in any straight
time bargaining unit wage rate set forth in Appendix A-1. Change in the Consumer
Price Index is defined as the difference between the Consumer Price Index base
and the Consumer Price Index used for the adjustment as detailed in Sections b)
through f) above. The maximum payment on any adjustment date will be eighteen
cents (18(cent)) per hour, which payment will not be added to or included in any
straight time bargaining unit wage rate set forth in Appendix A-1.











APPENDIX A-2 (CONTINUED)
C.

Should the Consumer Price Index, in its present form and on the same basis
(including composition of the “Market Basket” and
“Consumer Sample”) as the last index published prior to
September 23, 1996, become unavailable, the parties shall attempt to adjust this
Paragraph or, if agreement is not reached, request the Bureau of Labor
Statistics to provide an appropriate conversion or adjustment which shall be
applicable as of the appropriated adjustment date and thereafter.






D.

If the Consumer Price Index for any
adjustment date falls below the Consumer Price Index base, there shall be no
adjustment.




APPENDIX A-3
        Differences,
disputes of any nature whatsoever and grievances involving the determination of
increases in the rates of pay for job classifications in Appendix A-1, the
provisions and determination thereof or changes in the content and provisions of
incentive plans, profit sharing plans, retirement plans, section 125 IRC Plan,
and in 401(k) plans are expressly excluded from the provisions of Article 16 of
this Agreement, Grievance and Arbitration Procedures. With regard to the subject
of the Incentive Plan, the Incentive Plan in effect during the commencement of the fourth year of the Agreement and through the remaining
term will be subject to grievance and arbitration only to the extent that the
Company makes a change that is not otherwise provided for in the Incentive Plan.
If an arbitration is held it will be reviewed by a special tri-partite committee
of three business professors selected one each by the Xxxx of each of the
following Schools of Business: Tulane, UNO and one from LSU. Nothing herein
shall prevent the parties from mutually agreeing to any other persons. The
parties will share equally in the cost of said arbitrators.  



APPENDIX A-4


        The Company will
formulate and institute an incentive pay plan and a profit sharing plan and will
thereafter during the term of this Agreement, maintain an incentive pay plan and
profit sharing plan in effect, subject to Appendix A-3. 


PAY FOR KNOWLEDGE


        The Union and
Company mutually recognize that our goal of developing a High Performance
Organization culture at Bayou Steel requires all employees to work at their
maximum potential. For any employee to work at maximum potential, it is
imperative that the employee has the appropriate skills and abilities. 

        In pursuit of
this goal, the Union and the Company will meet to discuss a pay for knowledge
system and a joint interdepartmental TAPS team shall be formed to evaluate the
best approaches for developing a pay for knowledge system. As with all joint
interdepartmental TAPS teams, the scope of authority shall be to investigate and
make recommendations. The implementation of any recommendation which would
require modification of the Agreement will require mutual agreement between the
parties. 

This plan
provides the Bargaining Unit: 










•

Excellent health care benefits at
reduced contribution levels





•

Benefits which provide for quality
health care for employees 





•

Protection against catastrophic illness
and injury 





•

An improved competitive position for
the company










        The Company
continues to offer to attempt to obtain on the open market a point of service
health care plan as close to that described which it can obtain, following
execution of an agreement, for a cost not to exceed a weighted average cost of
$4,000 per employee, before initial employee contributions of $3.75 per
week/individual and $12.25 per week/family. 


Managed Care and Other Options 








Point
of Service is a system where the employee chooses a specific primary care
physician from the network list of approved primary care physicians. The
insured would go first to the primary care physician who approves other
services, for example; visits to specialists. Point of Service is designed to
save both employees and the company money. A Point of Service care system is
designed to provide an option to employees where in-network benefits are
substantially better than non-network benefits in order to reduce total medical
care costs and continue to provide quality health care coverage.






A.

Point of Service





1.

In-Network with Primary Care Physician





a.

$20 physician office visits/no
deductible





b.

$50 Calendar year deductible for
prescription drugs





c.

Coinsurance: 80% plan/20% employee for
hospital confinement and prescription drugs, after appropriate deductibles, and
physician services related to hospital confinement and all other non-physician
services





d.

Coinsurance Out-of-pocket Maximum





i.

$1,500 per individual per year





ii.

$4,500 per family per year





e.

Emergency medical care, out of town
medical care and some sub-specialties are considered in-network








2.

Out-of-Network








Should
an employee choose doctors and hospitals that are not within the network and/or
does not use designated primary care physician, then the following benefits
will apply:






a.

Calendar year deductibles





i.

$1,000 per individual





b.

Coinsurance: 60% plan/40% employee





c.

Coinsurance Out-of-pocket Maximum















i.

$ 6,000 per individual





ii.

$10,000 per family







d.

Reduce Reasonable & Customary limit
to 80%





B.

Other Health Care Plan Changes





1.

Cap Mental Health/Substance Abuse
benefits





a.

$25,000 per year with $75,000 lifetime
maximum per individual





b.

$5,000 sublimit per year with $10,000
lifetime maximum per individual for outpatient benefits





2.

Areas of 100% coverage will be covered
as other illness/injury





3.

Year-end deductible carryover is
eliminated





4.

Chiropractic benefits













a.

Limit of twelve (12) visits per
calendar year per individual





b.

Maximum of $600 total benefits per
calendar year per individual





c.

If exclusive provider may be arranged
without fee forgiveness, agree to revisit benefit levels





5.

Plan benefits subject to
non-duplication under the coordination of benefits provision





6.

Adult orthodontia coverage eliminated
from dental care plan





7.

Contributions





a.

Medical Plan contributions shall begin
January 1, 1997




i.

$3.75 per week/individual and $12.25
per week/family effective upon plan implementation





ii.

The contribution levels in i. above are
subject to the increase due to future plan cost sharing





 b.

Dental Plan contributions shall begin
on January 1, 1997





i.

$1.15 per week/individual and $2.30 per
week/family effective upon plan implementation





c.

Future cost increases or decreases
(other than government mandated changes) will be at two-thirds (2/3) by the
Company and one-third (1/3) by the employees for all health care plans. Cost
sharing is on the basis of projected plan cost of $4,000 per participant.








d.

Contributions on pre-tax basis

















8.

Other plan provisions






a.

Retain pre-certification/utilization
program with $300 penalty for non-conformance





b.

Add maintenance drug program





c.

Agree to joint review of yearly
administrative costs





d.

The Company will implement this Plan as
soon as it determines that it can.




The Company agrees to add twelve (12) months of service to the
years of service for each active participant who becomes eligible for a
disability retirement benefit. 



OVERTIME


        The Company and
the Union will meet to mutually agree upon an equitable distribution of overtime
policy for the Rolling Mill within ninety (90) days of the date of this
Agreement. 



Employee Evaluations



        The abilities
and aptitude of the employee will be assessed during the ninety (90) day
probationary period through performance reviews. Following this period, every
six (6) months reviews will take place to assess performance on the job. Such
reviews will be documented through written appraisals detailing strengths and
weaknesses with plans to build upon or improve such strengths and weaknesses. 

         
Report In Pay
 

It
is understood by the parties that the language in paragraph 9.11, “...begin
work as scheduled and then be released from duty...” shall not be
construed to mean reporting to work or arriving on the plant site.







Paragraph 17.4 states “Any award of backpay shall be subject only to applicable
statutory offsets.” It is understood by the parties that this sentence
means and includes the agreement that an arbitrator may utilize his/her
arbitrable judgement to offset any income received by the grievant against the
award issued by the arbitrator.




Safety and Health







1.

The Company will expedite efforts to
remedy any unsafe or unhealthful condition which may arise as defined by
appropriate statute, regulation or standard.




2.

The Company will implement a telephone/radio contact procedure between Security
and the instrumentation technicians and warehouse personnel to address the
Union’s concerns about working alone.




3.

A restricted duty program will be implemented by the Company. The program will
be administered by the Health and Safety Department in cooperation with the
Company’s occupational physician, nurse and/or specialist, Human
Resources and the employee’s supervisor for those employees whose work
related injuries are appropriate for restricted duty status.












Safety & Health


        The Company will
within ninety (90) days of the signing of this Agreement identify what remedy
may be required by the appropriate statute, regulation or standard concerning
lead contaminants in the showerhouse. 

        The Company and
the Union will continue to work together through the Joint Safety Committee to
improve barge access. 

Reduction in Force










In
the event that the Company decides during the term of the Agreement to reduce
the work force covered under the Agreement by the layoff of employees, the
Company, upon request, will meet with the Union on the question of possible
benefit alternatives to ease the impact of the layoff on the employees to be
laid-off or to avert such layoff.








The
Company and the Union at that time will review the option of a shorter workweek
than forty (40) hours as an alternative to a layoff. Such agreements will be by
mutual agreement between the Company and the Union.





Employee Participation and Teamwork









In
recognition of the fact that our employees are our greatest single source of
knowledge and experience with regard to our operation, the parties jointly agree
to adopt the concept of Employee Participation and Teamwork in solving matters
unrelated to the Agreement.






The
formation of joint interdepartmental teams will take place as follows:






1.

The Company will identify the matter to
be addressed by a team.





The Company will select a Sponsor. The Company and Union will
agree upon a Facilitator. 



3.

The size of the joint team will be
determined and shall be comprised of both bargaining unit and non-bargaining
unit employees.





4.

The Company will prepare a list of
potential joint team members; the Union President will prepare a list of
potential joint team members. The parties will exchange these lists for the
purpose of discussing the selection of team members.






5.

The President of the Union will be an
ex-officio member of each joint team formed.






A
team will have as its sole purpose the ability to make recommendations to the
Company on possible solutions to the matter(s) which were assigned and
unrelated to the Agreement.




Should the Company deem it necessary to revise the Lines of
Progression, the Company and the Grievance Committee will meet to discuss the
change(s) and to agree upon a mutually satisfactory revision to the Lines of
Progression. The Company shall discuss with the Union the economic impact, cost
effectiveness or improved operational efficiency that revising the Line of
Progression would have on the Company. Should agreement not be reached, the
Company shall install its proposed revision subject to the provisions of the
Grievance and Arbitration article of this Agreement. 













Line of Progression
A.

A sequence of steps in which the
principle is to position the employee for advancement within a job
classification and to progress to the highest position within that line of
progression.






B.

Employees in a given line of
progression are considered to be in position to advance in sequence from the
entry level position to the highest position within the same line of
progression.





C.

Open job positions within a line of
progression shall be filled sequentially from the next lower positions and so
on according to seniority when qualifications and ability are relatively equal.





D.

It is the intent of both the Union and the Company for employees to acquire
additional skills and knowledge in order to move into higher rated jobs within
the employee’s chosen line of progression.






        ARTICLE XIII,
SENIORITY, Paragraph 13.1.A.4.c states: 


“After
an employee is awarded the open job, the employee may not be retained on their
former job for more than thirty (30) days during which time they shall receive
the pay of the awarded job.”




The Company recognizes the Union’s concern that
employees not be retained on their former jobs for unreasonable lengths of time,
in excess of thirty (30) days. In cases where employees are being retained past
thirty (30) days the Company will meet with the Union to explain the rationale.
The Company will investigate any instances where employees claim they are being
retained for no legitimate reason. 

Within six (6) months of the signing of this Agreement either
the Company or the Union may elect to change the method that arbitrators are
selected from the Federal Mediation and Conciliation Service to the following:

Within ten (10) calendar days of receipt of the panel, a
representative of the Company and the Representative of the International Union
shall alternatively strike names from the panel until one (1) remains who shall
be the arbitrator. If either Union or Company rejects the first panel, the
rejecting party shall within ten (10) calendar days request the Federal
Mediation and Conciliation Service to submit one additional panel. Within ten
(10) calendar days of receipt of the second panel, a representative of the
Company and the Representative of the International Union shall alternatively
strike names from the panel until one (1) remains who shall be the arbitrator.


 Xxxxxxxx Rates


Xxxxxxxx hired into the Shipping Department shall enter at the
Xxxxxxxx I rate. Melt Shop and Rolling Mill departments shall utilize the
Xxxxxxxx II entry rate. 

 Progression of Job Rates




An employee may move up the progression of the job
classifications listed below having learned and demonstrated the qualifications
established for each classification. It is not intended to infer that an opening
has to be available in order for the employee to advance to the next level. 










Warehouse
Attendant C, B, A Lab Tech to Sr. Lab Tech Torchman C, B, A Furnace Helper 3, 2
Mill Watchman 3, 2, 1 Machine Operator 3, 2, 1 Material Handler 3, 2, 1
Mechanic D, C, B, A Leadman D, C, B, A












Selection of Leadmen 



        In an effort to
assure the most able and qualified candidates are awarded the Leadmen positions,
the following will take place: 








A.

Selection of Candidates -





1.

The Company will solicit employees
interested in becoming leadmen through the posting of notices on bulletin
boards.





2.

The Company will then assess interested
candidates for skills in the following areas:





A.

Leadership





B.

Technical skills





C.

Communication skills





D.

Interpersonal skills





E.

Overall job performance






Where applicable in sections A through D
above, the Company may identify outside resources to assist the Company and
Union in the development of standard criteria to assess skill levels of the
interested candidates.







3.

All candidates and the Union will be
provided the opportunity for feedback on the employee’s assessment.
Candidates who demonstrate the aptitude and potential to be effective Leadmen
will be provided training opportunities to obtain the skills and qualifications
to become Leadmen.








B.

Selection of Leadmen — The
selection of leadmen will be done by first canvassing within the department. If
there are no employees within the department selected then canvassing will be
done on a plant wide basis. It is understood that the determination of the
aptitude and potential as well as the designation of an individual as a leadman
is within the exclusive responsibilities of the Company.




APPENDIX A-6
A3M Scale Removal
Air Compressor Repairs  










Xxxxx Spectrometer (Calibration and Repairs) Barge Switching In
and Out of Fleets Bearing Heater Repairs Building, General Repairs and
Fabrication Burner Repairs Charpy V-Notch Impact Test Chroming Cleaning out
Ditches and Culverts Come-A-Longs Computer Service Copper Welding Copy Machines
and Typewriters Cutting Grass and Weeds Electrode Covers Electrode Cooling Rings Elevator (Melt Shop)
Engine and Transmission Rebuilding
Engine and Traction Motor Repair on Locomotive Equipment
(Balancing – Rotating Equipment) Fence Work Flume Cleaning Forklift Repairs
Generators Grading and Wetting Roads Hydro-Blasting Leco Analytical Machines
Lifting Chain Repairs Magnets Maintaining Main Office Building Manlifts

Motor Repairs Pesticide Control Pinch Roll Resurfacing (Caster)
Pipe Cleaning (Acid, Caustic or Mechanical) Pumping of Sewer Tank on Dock Radio
Repairs Rail Work or Repair Refractory Repair in Reheat Furnace Reheat Furnace
Rolls Roof Lift Extension Rod (Resurfacing) Satec Tensile Machine Sensor
Brushes Shear Knives, Hot and Cold Shear — Build Up, Dress, Heat Treat
Shunt Cable Repairs Spread Bars and Slings














Spring Motors Surveying Barges Surveys — Infrared
(Electrical Equipment) Testing Equipment (Repair or Calibration) Testing — Mechanical
and Chemistry Transformer Oil Test (Routine) Ultra-Sonic Testing Vacuuming
Services Waste Oil Removal Waste Transportation (Hazardous and Non-Hazardous)
Window Repairs & Replacement X-Raying  


APPENDIX A-7





All bargaining unit salaried non-exempt employees covered under
this Agreement will be subject only to the same benefits provisions as all other
bargaining unit employees of Bayou Steel Corporation. 

The Company shall establish a Pay for Knowledge progression for
the following positions no latter than February 1, 2000. 







Lab
Tech D, C, B, A Billet Yard Crane C, B, A 1st Helper D, C, B, A L.M.F. Ladle
Furnace Operator C, B, A 2nd Helper D, C, B, A 1st Operator D, C, B, A 2nd
Operator D, C, B, A Ladle Operator D, C, B, A Torchman D, C, B, A Mechanic (EQP)
D, C, B, A Xxxxx D, C, B, A Mold Setup D, C, B, A X-0 X, X, X, X X-0 X, X, X, A
X-0 X, X, X, X X-0 X, X, X, A Mill Watch D, C, B, A Machine Operator 3, 2, 1
Mill Builder & Changer D, C, B, A Mill Support D, C, B, A Customer
Service Representative B, A Material Handler D, C, B, A A/C Maintenance
Technician D, C, B, A Leadman D, C, B, A




The Company shall increase the base hourly rate of the following
positions as follows: 



















                                                      CURRENT
POSITION                           DEPT                RATE          INCREASE    1/1/2000    1/1/2002    1/1/2004     1/1/2006
--------                          ------              -------        --------    --------    --------    --------     --------
Barge Expediter                   ST-DOK               $8.19          $0.25        $8.44       $8.69       $8.94        $9.19
Dock Crane                        ST-DOK              $11.64          $0.30       $11.94      $12.24      $12.54       $12.84
Scale Operator                    ST-SHP               $8.89          $0.25        $9.14       $9.39       $9.64        $9.89
Mill Operator                     RM-HRM              $11.64          $0.30       $11.94      $12.24      $12.54       $12.84
Janitor                            ALL                 $6.54          $0.25        $6.79       $7.04       $7.29        $7.54
Tagger                            RM-HRM              $11.32          $0.25       $11.57      $11.82      $12.07       $12.32
Utility Operator                  RM-HRM              $10.69          $0.25       $10.94      $11.19      $11.44       $11.69
Xxxxxxx                           MS-HRM              $10.69          $0.25       $10.94      $11.19      $11.44       $11.69
Charging Crane                    MS-CHC              $13.22          $0.30       $13.52      $13.82      $14.12       $14.42
Heavy Equipment Operator          MS-EQP              $11.92          $0.25       $12.17      $12.42      $12.67       $12.92
Steel Pourer                      MS-LDP              $11.67          $0.30       $11.97      $12.27      $12.57       $12.87
Scrap Crane                       MS-SHD              $11.64          $0.25       $11.89      $12.14      $12.39       $12.64
ScrapYard Crane                   MS-SYD              $11.64          $0.25       $11.89      $12.14      $12.39       $12.64
Locomotive Operator               MS-SYD              $12.27          $0.25       $12.52      $12.77      $13.02       $13.27
Teeming Crane                     MS-TMC              $12.69          $0.30       $12.99      $13.29      $13.59       $13.89
Warehouse Attendant               CO-STR              $10.38          $0.25       $10.63      $10.88      $11.13       $11.38


Notwithstanding or amending the prevision of Appendix A-3 of the current
Labor Agreement, the Company will implement the following Melt Shop incentive
pay structure. 





       Tons             Hourly Incentive
        Per                  Current              Hourly Incentive        Effect of
       Hour               Budgeted Plan             Proposed Plan          Proosal
       ----               -------------             -------------          -------
        72                     0                       .06                   +.06
        73                     0                       .22                   +.22
        74                     0                       .37                   +.37
        75                     0                       .52                   +.52
        76                     0                       .68                   +.68
        77                     0                       .83                   +.83
        77.07                  0                       .84                   +.84
        78                     0                      1.00                  +1.00
        79                     0                      1.17                  +1.17
        80                     0                      1.33                  +1.33
        80.66                  0                      1.45                  +1.45
        81                   .05                      1.50                  +1.45
        82                   .22                      1.67                  +1.45
        83                   .38                      1.84                  +1.46
        84                   .54                      2.01                  +1.47
        85                   .70                      2.18                  +1.48
        86                   .86                      2.35                  +1.49
        87                  1.02                      2.51                  +1.49
        88                  1.18                      2.68                  +1.50
        88.9                1.28                      2.78                  +1.50
        89                  1.34                      2.85                  +1.51
        90                  1.51                      3.02                  +1.51
        91                  1.67                      3.19                  +1.52
        92                  1.83                      3.36                  +1.53



Notwithstanding or amending the provisions of Appendix A-3 of
the current Labor Agreement, the Company will reduce the Rolling Mill incentive
standard on specific products that have paid no incentive or little incentive. 













AGREED AND SIGNED BY: 



For the Company BAYOU STEEL CORPORATION 






---------------------------------------
Xxxxx X. Xxxxx
President & Chief Operating Officer 





--------------------------------------- 
Xxxxx X. Xxxxxxx 
Vice President Human Resources 







---------------------------------------
Xxxxxxx X. Xxxxxxxxxx
Vice President Operations 







For the Union UNITED STEELWORKERS OF AMERICA, AFL-CIO-CLC 








---------------------------------------
Xxxxxx X. Xxxxxx
President 








---------------------------------------
 Xxx X. Xxxxxx
Secretary/Treasurer 







---------------------------------------
Xxxxxxx Xxxxx 
Vice President (Administration) 







---------------------------------------
Xxxx Xxxxx 
Vice President (Human Affairs) 







---------------------------------------
Xxxxx Xxxxxx Director,
District 36 





---------------------------------------
Xxxxxxx Xxxxxxxx
Sub-District Director, USWA 






--------------------------------------- Xxx Xxxx President,
Local 9121 









--------------------------------------- Xxxxxx Xxxxxx Vice
President, Local 9121