1
Exhibit 10.10
THIS AGREEMENT DATED MAY 5, 1997, IS BETWEEN XXXXXXX INDUSTRIES INC., AND/OR ITS
SUCCESSORS, FOR ITS PLANT LOCATED AT FITCHBURG, MASSACHUSETTS (HEREINAFTER
REFERRED TO AS THE "COMPANY") AND UNITED STEELWORKERS OF AMERICA, AFL-CIO,
AND/OR ITS SUCCESSORS, ON BEHALF OF LOCAL 7896 (HEREINAFTER REFERRED TO AS THE
"UNION").
ARTICLE I
RECOGNITION
The Company recognizes the Union as the sole and exclusive collective-bargaining
representative for all production and maintenance employees in the bargaining
unit as determined by the National Labor Relations Board in case No. I-RC-11519
with respect to rates of pay, wages, hours of employment and other conditions of
employment.
ARTICLE II
PURPOSE AND INTENT
The purpose of the Company and the Union in entering into this Labor Agreement
is to set forth their agreement on rates of pay, wages, hours of work, and other
conditions of employment so as to promote orderly and peaceful relations with
the employees, to achieve uninterrupted operation in the plant, and to achieve
the highest level of employee performance consistent with safety, good health,
and sustained effort.
The Company and the Union encourage the highest possible degree of friendly,
cooperative relationships between their respective representatives at all levels
and with and between all employees. The officers of the Company and the Union
realize that this goal depends on more than words in a labor agreement, that it
depends primarily on attitudes between people in their respective organization
and at all levels of responsibility. They believe that proper attitudes must be
based on full understanding and regard for the respective rights and
responsibilities of both the company and the Union. They believe also that
proper attitudes are of major importance in the plant where day-to-day
operations and administration of this Agreement demand fairness and
understanding. They believe that these attitudes can be encouraged best when it
is made clear that the Company and Union officials, whose duties involved
negotiation of this Agreement, are not anti-union or anti-company but are
sincerely concerned with the best interests and well being of the business of
all employees.
ARTICLE III
MANAGEMENT RESPONSIBILITY
Subject to the provisions of this Labor Agreement, the Company retains the
exclusive rights to manage the business and the plant and to direct the working
forces. The Company, in the exercise of its rights, shall observe the provisions
of the Agreement.
The rights to manage the business and plant and to direct the working forces
include but are not limited to the right to hire, suspend or discharge for
proper cause, or to transfer, and the right to relieve employees from duty
because of lack of work or for other legitimate reasons.
2
ARTICLE IV
SUPERVISORS WORKING
A supervisor shall act in a supervisory capacity and shall not perform the work
regularly performed by bargaining unit employees. However, this provision shall
not be deemed to prohibit a supervisor from performing the work of bargaining
unit employees in emergency situations, in situations where an employee
encounters difficulty in the performance of his work, or in situations where he
is instructing employees in the use of tools or in the methods of performing
work. Nor shall a supervisor or engineering or laboratory personnel be
prohibited from performing experimental work, special mechanical work or other
research work considered necessary by the Company for the improvement of its
products or of its manufacturing methods.
ARTICLE V
UNION SECURITY
A. MEMBERSHIP IN UNION
(1) As a condition of employment, all employees covered by this Agreement,
as defined in Article I (in case of new employees, ninety (90) days
after the date of hiring and subsequent to the effective date of this
Agreement) shall become and remain members of the Union to the extent
of paying or tendering initiation fees and membership dues uniformly
levied against all members during the term of this Agreement.
(2) The Union may not discriminate against applicants for membership in
the Union and the requirements of membership in the Union as a
condition of employment shall be considered fulfilled by the payment
or tender of payment of initiation fees and membership dues uniformly
levied against all members.
(3) Any employee who fails to maintain his obligations under the
provisions of the Article shall not be retained in the employ of the
Company, provided that the Union shall have notified the Company and
the employee in writing of such default, and said employee shall have
failed to remedy the same within thirty (30) days after receipt of
such notice.
(4) The provisions of this Article shall not apply to any employee in the
bargaining unit to whom membership in the Union is denied or whose
membership therein has been terminated for reasons other than the
failure of such employee to tender the initiation fees and membership
dues uniformly levied against all members.
(5) Application for membership form shall be as agreed to in writing by
the Company and Union.
-2-
3
(6) The Union will furnish the Company with the names of all members
paying dues directly to the Union within sixty (60) days following the
effective date of this Agreement, and each thirty (30) days thereafter
during the term thereof.
(7) Any disputes arising as to an employee's membership in, or tender or
payment of membership dues to the Union shall be a subject for the
grievance procedure, including arbitration.
B. CHECKOFF
(1) The Company will check off monthly dues, assessments and initiation
fees each 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 in forms agreed to by the
Company and the Union. The monthly membership dues for each employee
who has provided a voluntary checkoff authorization card shall be an
amount equal to 1.3% of said members total earnings during the month
provided that monthly dues shall not be less than $5.00 and provided
further that monthly dues shall not be more than 2.5 times the
member's average hourly earnings.
(2) Deductions on the basis of authorization cards submitted to the
company shall commence with respect to dues for the month in which the
Company receives such authorization card or in which such card becomes
effective, whichever is later. Dues for a given month shall be
deducted from the second pay closed and calculated in the succeeding
month.
(3) In cases of earnings insufficient to cover deduction of dues, the dues
shall be deducted from the next pay in which there are sufficient
earnings, or a double deduction may be made from the second pay of the
following month, provided, however, that the accumulation of dues
shall be limited to two months. The International Treasurer of the
Union shall be provided with a list of those employees for whom double
deduction has been made.
(4) The Union will be notified of the reason for nontransmission of dues
in case of layoff, discharge, resignation, leave of absence, sick
leave, retirement, death, insufficient earnings.
(5) Unless the Company is otherwise notified, the only Union membership
dues to be deducted for payment to the Union from the pay of the
employee who has finished. an authorization shall be monthly Union
dues. With respect to check off authorization cards submitted directly
to the Company, the Company will deduct initiation fees unless
specifically requested not to do so by the International Treasurer of
the Union after such checkoff authorization cards have become
effective. The International Treasurer of the Union shall be provided
with a list of
-3-
4
those employees for whom initiation fees have been deducted under
this paragraph.
(6) Dues deducted by the Company in accordance with the foregoing shall be
remitted to the International Union Treasurer on a monthly basis.
C. SAVINGS CLAUSES
The provisions of this Section and of the cards for membership application and
dues checkoff shall be effective in accordance and consistent with applicable
provisions of Federal Law.
The Union shall indemnify and save 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 Section, or in reliance of any
list, notice or assignment furnished under any of such provisions.
ARTICLE VI
HOURS OF WORK
SECTION 1 - SCOPE
This section defines the normal hours of work and shall not be construed as a
guarantee of hours of work per day or per week, or days of work per week.
SECTION 2
(a) The normal work week for employees covered by this Agreement shall be
forty (40) hours per week eight (8) consecutive per day, not including
any unpaid meal, but including one 10 minute break and two 5 minute
wash-up periods (before lunch and before the end of the shifts), five
(5) days per week, Monday to Friday, inclusive. In the event of a
reduction of hours from the normal work week for (4) consecutive
weeks, then the junior employee in the classification will be laid off
from that affected position, so as to provide (40) hours of work for
the senior employee.
(b) The normal work day is the 24-hour period beginning with the regularly
assigned starting time of the work shift. The work week starts with
the regularly assigned work shift on Monday except for employees who
are assigned to the third shift, whose work week begins on Sunday
night.
(c) Determination of the starting times shall be made by the company and
schedules may be changed by the Company from time to time to suit
varying conditions of the business; provided however, that
indiscriminate changes shall not be made in such schedules and
provided further that changes deemed necessary by the
-4-
5
Company shall be discussed with the plant representatives of the Union
prior to the change and as far in advance of such changes as is
possible.
Notice of Saturday and Sunday overtime work shall be given before the work
period ends on Thursday. The third shift notification will be given when
feasible by 7:00 A.M. Thursday morning on a tentative basis.
SECTION 3
(a) All hours worked in excess of eight (8) in any one day and all hours
worked on Saturday shall be paid for at the rate of time and one-half
(1-1/2).
(b) All hours worked on Sunday will be paid for at the rate of double time
except for employees who are assigned to third shift, whose work week
begins at 10:30 P.M. or 11:00 P.M. on Sunday.
(c) All hours worked in excess of forty (40) in any work week will be paid
for at the rate of time and one-half (1-1/2).
(d) Time and one-half (1-1/2) shall be paid for hours worked on Company
paid holidays set forth in Article XVI of this Agreement plus holiday
pay.
(e) 1. Anyone called in prior to his scheduled starting time shall be
paid time and one-half (1-1/2) for hours worked prior to his
starting time.
2. An employee called in and who reports to work shall be guaranteed
four (4) hours pay at the applicable rate for that day.
3. Any employee who without prior notice from the Company not to do
so, reports for work and finds his regular work not available
shall be given not less than four (4) hours work and shall be
compensated at his standard hourly wage rate. If such work is not
available, he shall receive four (4) hours pay at his standard
hourly wage rate, provided, however, that this provision shall
not apply if:
(a) an employee has been absent and returns to work without
having notified his xxxxxxx at least twelve (12) hours prior
to his scheduled starting time as to when he will return to
work, or
(b) a breakdown or suspension of operations occurs because of
lack of power, act of God, fire, flood, or other cause
beyond the Company's control.
4. If an employee cannot report for his/her scheduled shift, the
Company must be notified at least ten (10) minutes prior to the
start of the shift
-5-
6
unless a legitimate reason exists preventing the employee from
giving such notification. Appropriate voice mail phone numbers
will be posted.
SECTION 4
There shall be no duplication or pyramiding of overtime or premium rates of pay
so that when the particular work falls within two or more overtime or other
premium classifications, either under this Agreement or as a matter of law, only
the single highest applicable overtime or other premium rate shall be paid.
SECTION 5
(a) The Company may require an employee to work a reasonable amount
of overtime in accordance with operational requirements.
Employees will be expected to meet overtime schedules when given
a reasonable notice.
(b) Consistent with operating requirements and efficiency, overtime
shall be distributed reasonably equitably among those employees
within the department in the job classification where the
overtime is involved, providing the employees are qualified to do
the work, and among those that do not have a high absentee
record. If there is an insufficient number of employees who
regularly hold the classification to fulfill overtime
requirements, then the overtime will be distributed reasonably
equitably among the other qualified employees in the department.
Records maintained by the Xxxxxxx on distribution of overtime
will be available to the area representative upon request. Line
supervisors will update overtime records on a weekly basis. This
record will show assigned job code and will be made available to
the area Union representative upon request.
The Company and the Union agree that when the Company determines that an
employee is absent to the extent where it will affect whether or not the
employee is scheduled for overtime, the Company will notify the employee that
the Company has determined that absenteeism is becoming excessive and that
further absences (whether full days or partial days and regardless of a doctor'
s excuse) in future weeks will cause the employee not to be scheduled for
overtime for which he would normally be scheduled.
Such notice shall be verbally given with a memo to the file. The Union and the
employee may obtain copy of this note upon request.
(c) The remedy for improper distribution of overtime shall be the
granting of future available overtime work and shall not be pay
for unworked time.
(d) Notice of Saturday and Sunday overtime work shall be given before
the work period ends on Thursday; the third shift notification
will be given at the beginning of the shift on Thursday night.
-6-
7
SECTION 6 - INVENTORY WORK
The Company shall have the right to assign as many employees from a particular
department to perform inventory work in that department.
Should employees be needed to perform inventory work in a particular department
in addition to those employees from that department, the Company will offer the
work to employees in departments other than the particular department in
accordance with seniority. If not enough employees are willing to perform such
work, the Company will have the right to assign employees to perform the work in
reverse order of seniority.
Employees performing inventory work will be paid at their current job rate.
SECTION 7 - TRAVEL TIME
In order to clarify the policy with regard to payment to Bargaining Unit
employees traveling on special assignment, we have prepared the rules shown
below.
1 Employees will be paid for travel time to and from the location of the
special assignment. Travel time will be measured from the residence or from
the normal work location should the employee leave from there.
2. Travel time which occurs during the employee's normal workday will be paid
at the appropriate CWS rate in each case.
3. Travel time which occurs during times other than the employee's normal
workday and between workdays (Saturday and Sunday) will be paid at base
rate. The usual provisions for time and one-half and double time will apply
to travel time outside the normal workday.
4. Travel time will only be paid when other than the normal work day is
involved or when the assignment and travel time combined exceed eight hours
during the normal work day.
ARTICLE VII
SENIORITY
The parties recognize that promotional opportunity and job security in event of
promotions, decrease in forces, and recalls after layoffs should increase in
proportion of length of continuous service, and that in the administration of
this Article the intent will be that wherever practical full consideration shall
be given continuous service in such cases.
1. It is understood and agreed that in all cases of:
-7-
8
(A) Promotion, the following factors as listed below shall be considered;
however, only where factors 1 and 2 are relatively equal shall length
of continuous service be the determining factor:
1. Ability to perform the work,
2. Physical fitness,
3. Continuous service.
(B) Decrease in forces or recalls after layoffs the following factors as
listed below shall be considered; however, only where both factors 1
and 2 are relatively equal shall continuous service be the determining
factor:
1. Ability to perform the work,
2. Physical fitness,
3. Continuous service.
(C) Seniority is defined as the length of an employee's continuous service
at Xxxxxxx Industries Inc., Fitchburg, Massachusetts, from his latest
effective date of employment or re employment as measured in years,
months, and days. However, it is understood by both parties that any
employee who, prior to this Agreement transferred to Fitchburg from
another location of the Company, has been credited with continuous
service for the time worked at such other Company location from his
latest effective date or employment or re-employment. In those
instances where two or more employees have the same date of hire,
seniority will be determined by clock number, the lower number having
the greater length of service. The Company agrees that for the purpose
of bidding, bumping, and vacation accrual, service with Xxxxxxx
Cutting Tools shall be recognized for those Xxxxxxx Cutting Tools
employees who were hired at the time of the transfer of assets to
Xxxxxxx Industries.
(D) Seniority shall be applied in individual departments which are listed
in Exhibit B. Revision of such list of departments, which is for
seniority purposes only, shall be subject to the grievance procedure.
(E) There is a 90-day probationary period for all new employees. There is
no seniority during the probation period. A new employee who is
retained in employment after the end of his probationary period will
have seniority effective as of his first day of work. Absences for any
reason considered to be excessive, will be added to the 90-day
probationary period. The Company has sole discretion to dismiss a
probationary employee and such dismissal shall not be subject to the
grievance procedure.
II. When a reduction of forces is made the following applies:
-8-
9
(A) On jobs which traditionally are plant-wide in nature such as anvil
men, maintenance trades, etc. and on special skill jobs as listed
below, employees shall be removed from the job classification in
reverse order of seniority. The least senior employee in the
classification may, if he had previously been qualified in another
classification, bump into that classification provided he has the
seniority and provided he can requalify with minimal training (1 week
or less), or he may displace an employee in the list of designated
pool jobs. (Exhibit F).
Special Skill Jobs: E.D.M. Operator
Anvil Man - Specialty
Anvil Man - Metal Saws
X.X. Xxxxxx
Q.C. Technician
(B) In the case of a reduction in work force, an employee being laid off
from his incumbent job will have, in addition to his/her normal
bumping rights, under Section (C), the option to displace the least
senior active employee in the same grade within his/her group as
stipulated below. If that employee does not exercise this option, only
the employee he bumps will have this additional option. If an employee
exercises this option, the company will provide the normal training
time for he/she to learn the new job. Skilled craft and special skill
jobs are exempt from bump under this paragraph.
Lines will be grouped as follows for the purpose of implementing this
option.
Line 8
Lines 4, 10, 11, 12, 13, 16, 18, 19, 26 & 39
Lines 42, 43, 45, 46, 47, 48, 49, 56 & 80
(C) Employees working on jobs in departments shown in Exhibit B shall be
removed from the department in the reverse order of seniority. An
employee who is laid off from his department may exercise his
seniority as follows. Under the following options numbered 1, 2, and
4, the laid off employee will always displace the least senior
employee. However, if an 11-7 shift is operating for the bumped
position, the laid off employee will be allowed to exercise shift
seniority. If this results in the displacement of any employee, said
employee will be assigned by supervision to another shift.
1. He may displace a less senior employee whose job he previously
performed, provided he can requalify with minimal training (one
week or less), or
2. He may displace a less senior employee occupying a job which is
related in management's opinion, provided he can qualify with
minimal training of one week or less, or
-9-
10
3. He may displace the least senior employee in his department
provided he can qualify with minimal training in one week or
less, or:
4. He may displace an employee in the list of designated pool jobs.
(Exhibit F).
5. In lieu of lay-off employees having ten (10) or more years of
service, may displace the least senior employee in the plant.
However, in the event of a permanent elimination of a bargaining
unit job or the phase out of a job within the Fitchburg facility,
subsequent to the decision to eliminate a manufacturing line, an
affected employee will not be required to meet the ten (10) year
provision. This section will only be used as a final option and
excludes displacing skilled trades or special skilled jobs as
defined in the agreement.
6. Employees can be given an extension of training time up to a
maximum of five (5) days if reasonable progress is being shown on
the new job.
7. Junior employees who cannot exercise any of the above options
will be given five days notice of layoff whenever practical.
8. Any employee who is affected by a reduction in force may elect
lay-off status rather than exercise his seniority to displace
another employee. An employee making such election shall have
recall rights limited to the job from which he was laid off,
provided, that he may reinstate his general recall rights by so
notifying the Personnel Department in writing, in which case he
must await his turn for recall in order of seniority.
9. A non-probationary employee who has been placed on lay-off from
their incumbent job and who has exercised his/her seniority
rights, will not lose recall rights to their incumbent job if
they refuse recall to a job held after their lay-off from their
incumbent position. However, recall rights will be lost to
specific job he/she was recalled to.
10. It is understood that most employees when faced with exercising
bumping rights will select their options immediately. Those
employees who cannot decide immediately will be given 48 hours to
do so; they will be notified after the first 24 hours that they
must decide within the remaining 24 hour period.
11. An employee must promptly report any change of address in writing
to the Personnel Office and the Company shall be entitled to use
the last address shown on its records in sending notices or
letters.
-10-
11
12. Temporary lay-offs for a period of not more than five (5) working
days shall not be subject to the provisions of this article.
13. Any employee promoted to a position outside of the bargaining
unit as defined in Article I shall have a period of twelve (12)
months during which he may return to the bargaining unit with
full credit for his seniority. Thereafter he would start as a new
employee if returned to the bargaining unit.
14. Seniority is terminated by any one of the following occurrences:
(A) Quitting
Note: Voluntary termination shall be in writing no later
than 24 hours of such action. Employees agreeing to this
will sign and date with the Union President or agreed
designee as a signed witness. Employees who fail to report
for their next scheduled shift or 24 hours, whichever is
longer, after having voluntarily left their job shall be
deemed voluntary quits.
(B) Discharge
(C) Failure to report to work following expiration of vacation
or leave of absence unless such failure to report is for a
legitimate reason.
(D) Failure to report to work after a layoff within 72 hours of
his being notified by a registered letter or telegram sent
to the employee's last address of record unless prevented by
sickness or some other legitimate reason. In the event the
employee is working elsewhere at the time of recall, he must
give notice to the Company within 72 hours of his intention
to return to work and must report for work within ten (10)
days of his notice of recall.
(E) When an individual on lay off is recalled to a temporary
position the following procedure will apply:
1. An individual may refuse recall to a temporary position
without jeopardizing seniority if there is a valid
reason involved.
2. When an individual is recalled to a temporary position,
said employee must remain on the temporary position
until the assignment is completed. If a less senior
employee is recalled to a permanent position that would
have been offered to the employee holding the temporary
position, upon completion, may exercise his/her normal
bumping
-11-
12
rights. If said employee who was temporarily recalled
has no options under the normal bumping procedure he or
she may bump the most junior permanently recalled
employee whose job said temporary employee would have
been offered if not temporarily recalled.
3. As a last alternative a senior employee may bump a
junior employee recalled to a temporary position
provided he/she can perform the job in five days or
less.
This condition will be explained to employees recalled to
temporary positions.
(F) Absence because of sickness for a period exceeding two (2)
years. Absence due to compensable disability incurred during
the course of employment shall not terminate seniority
provided such individual returns to work within ten (10)
calendar days following the judgment of a one time
compensation settlement. Said employee must be medically
cleared to return to their incumbent job.
(G) Lay-off for a period as shown below (upon completion of the
probationary period):
Up to 1 Year Service 12 months
1 - 2 Years of Service 24 months
2 Years and Over 30 months
Note: (Employees of record as of the date of this labor
agreement will retain (30) months of recall rights.)
15. When there is a decrease of forces, top seniority shall be
recognized to employees then holding the following Union offices:
President
Vice-President
Recording Secretary
Financial Secretary
Treasurer
-12-
13
and four (4) Grievance Committeemen, provided however, they have
completed two (2) or more years of continuous service with the
Company and provided further they are competent to perform the
remaining work to be done in their Department or area of
representation. The Union will keep the Company continuously
informed of the names of individuals occupying the above Union
positions.
III. The Company will recall employees to permanent job openings with preference
to the most senior employee who held the position as his/her last job prior
to bump or lay-off or his/her incumbent job. This procedure will continue
by seniority until the recall list is exhausted.
ARTICLE VIII
JOB POSTING
VACANCIES
(1) In the event a permanent job vacancy arises within a department or line (as
defined in Exhibit B), the Company will post notice thereof for bid within
that department or line and plant wide simultaneously. Employees
permanently assigned to the line or department where the opening occurs, as
well as those laid off employees assigned to the line from more than one
(1) year who bid for the position, will be given preference over those
employees who submit plant wide bids. In both instances, senior employees
shall be given preference.
(2) In the event a permanent job vacancy arises on a job not covered by Exhibit
B, the Company shall post notice thereof for bid provided the vacancy was
not caused by a bid for another job.
(3) Permanent vacancies other than the above mentioned shall be filled through
the pre-bid procedure.
(4) New employees will not be eligible to participate in the Job posting
procedure for a period of six (6) months.
Nothing in this Article shall require the Company to fill a vacancy which
it does not desire to fill.
BIDDING
Subject to the provisions set forth in Article VII, an employee may bid on a
posted job by submitting a written request to the Personnel Department within
forty-eight (48) hours from the time of posting, exclusive of Saturdays,
Sundays, and paid holidays. If an employee applies for a job in accordance with
pre-bid procedure and that job is subsequently posted, the employee's pre-bid
application will be the equivalent of a bid and the employee will automatically
be
-13-
14
considered for the job. Should a period in excess of thirty (30) days elapse
from the date the original bid was first posted and having failed to select a
successful bidder, the position will be re-posted.
PRE-BIDDING
Employees may pre-bid for any job in the bargaining unit by completing an
application. A copy will be retained by the Company, the employee, and the
Union. Each month or at such longer intervals as the Company and Union may
mutually agree upon the Company will publish an up-to-date list with a copy to
the Union showing the names of all prebidders for each job in the plant.
The Company will select the successful bidder, or pre bidder, in accordance with
Section I (A) - Seniority (Article VII) and post the name of such employee on
the bulletin board, with a copy to the Union on the first of each month for the
previous month.
If a dispute arises as to whether an employee has the ability to perform the
job, he shall be given a trial period of not more than ten (10) work days
provided, however, that this period may be extended by mutual agreement between
the Company and the Union. A successful bidder who fails to demonstrate the
ability to perform the job will first be given five (5) days prior consultation
that he/she may be disqualified. If disqualified, he/she shall be returned to
their former job and shift as held prior to the bid, provided he/she is more
senior than the employee now in this position. All subsequently displaced
employees will exercise this option.
If an employee does not have the seniority to exercise the above option, he/she
shall first be assigned to an open available job. If there is no available job
to which the employee may be assigned, said employee will displace the least
senior employee in the plant holding a job other than those in the skilled
crafts, trades, Exhibit E, or those mutually agreed upon as being special skills
jobs.
If there are no qualified eligible bidders or pre-bidders for the posted job or
if an employee has failed to demonstrate the ability to perform the job, the
Company shall undertake to train the senior employee for the position to be
filled provided, however, that this obligation shall not extend to a Skilled
Trades Classification, as listed in Article X of this Agreement. In such cases,
the Company may hire from the outside at its discretion.
A successful bidder or pre-bidder shall not be permitted to transfer to another
job as a result of a bid or pre-bid for a period of six (6) months, plus
training time, unless the job vacancy is in the employees regular line of
progression. However, during the term Of this Agreement, employees will only be
allowed one successful lateral bid. Employees who successfully bid or pre-bid
into a job designated as "Special Skill Jobs" shall not be permitted to transfer
to another job as a result of a bid or pre-bid for a period of twelve (12)
months (See Exhibit E for "Special Skill Jobs" listing). However, a successful
bidder or pre-bidder will be allowed one additional successful bid during the
normal instruction period (which usually is eight weeks time) connected with
training
-14-
15
a replacement and prior to physically transferring to the new position. (Unless
an unusual circumstance arises which extends the period of time).
Should an employee elect to bid again during the instruction period, prior to
transfer, and is successful, he or she must accept the second successfully bid
position. (The next senior bidder will automatically be in line for
consideration regarding the original posting provided that a period in excess of
30 days has not elapsed.)
The pre-bid of an employee who refuses promotion to a job under this Section
will be removed from the pre-bid file for such job. An employee to be again
eligible must resubmit his pre-bid application.
When it is necessary to fill a temporary vacancy, such a vacancy shall to the
greatest degree consistent with the efficiency of the operation, availability of
replacement, and the safety of employees, be filled on the basis of departmental
upgrading procedures, which provide that senior employees shall be given
preference. However, in case of a permanent vacancy on a job, prior assignment
of a junior employee to a temporary vacancy on such job shall not be used as a
presumption of greater ability in favor of such junior employee if such
temporary vacancy was not made available to the senior employee.
Temporary transfers, for reasons other than illness/injury, will be no longer
than ninety (90) consecutive calendar days.
In making a temporary transfer for more than one full shift, the Company will
first consider the senior active incumbent job holder who presently is in a
lower graded position.
Nothing in this Article will require the Company to keep an employee on a job
for which he is not qualified. The Company will review applications for lateral
or downward bids where physical hardship is involved and may award such bids
after review.
When a job becomes temporarily vacant due to the critical illness of an
employee, and it is questionable as to whether the employee will return to that
specific job, the Company will post the job as though it were a permanent
position. It is also understood that should the ill employee recover and return
to work, physically able to perform said job, he will displace the operator that
replaced him via the job posting regardless of seniority. The successful bidder
will be entitled to the usual rights connected with a job bid award with the
exception of the return of the recovered employee and the displacement aspect
mentioned above. The successful bidder cannot be displaced during a reduction of
the work force except by an employee who has previously held the position or who
currently occupies a position that in Management's opinion is job related. If
this employee is the least senior in the plant, he/she will be displaced prior
to a more senior employee becoming unemployed unless the employee occupies a
skilled trades or special skills job as defined in the agreement.
Bidding Rights
-15-
16
- If ill/injured employee returns and displaces said employee, the bid
lock-in will not exceed six months regardless of job level.
- If ill/injured employee does not return to the position the bidding
restriction will be per contract 6 mos., 12 mos., etc.
The conditions of this agreement will be made known to the successful bidder in
such cases.
When an employee is medically cleared to return to work after extended illness
and cannot perform his own job because of physical limitations, the following
may apply:
A. He will displace the less senior employee to him holding a job
classification that the company feels he can perform satisfactorily which
complies with his medical clearance.
B. If satisfactory performance is attained, this position will then become the
employee's permanent Job classification.
This understanding is intended to apply primarily to employees covered under the
Accident and Sickness Program. The same will apply to employees receiving
medical clearance from industrial injury who have the capability of performing
satisfactorily on a consistent basis.
The displaced employee will then exercise his options as set forth in the
reduction of work force section of Article VII, (Seniority).
C. The Company and the Union agree that the Company may, at it's discretion,
establish and fill temporary light duty jobs for the purpose of providing
such work for employees who are on Xxxxxxx'x Compensation, and have medical
restrictions. Such temporary positions will not be available as an option
in the normal bidding and bumping procedures, since these are not permanent
positions. The company agrees to discuss the creation of such jobs with the
Union prior to filling the positions. Nothing in this agreement is intended
to displace an active employee from his regular job. These jobs will be
graded according to the C.W.S. Job Evaluation System and paid according to
the contractual wage agreement. In the case of a reduction in work force,
the Company will attempt to relocate temporary light duty employees where
possible in order to retain active employees.
ARTICLE IX
WAGES
1. The following hourly wage rates will remain in effect from May 5, 1997
through May 3, 1998, for all employees on the hourly payroll.
Grade 1 $10.90
Grade 2 $11.85
-16-
17
Grade 3 $12.85
Grade 4 $13.90
Grade 5 $15.00
Effective May 4, 1998, all rates will increase by $.35/hr. Effective May 3,
1999, all rates will increase by an additional $.45/hr.
2. If a bargaining unit employee is overpaid due to a mechanical or systems
error, over which he/she has no control, and it is determined that the
overpayment was not significantly obvious so as to alert the employee to
the problem, the Company will limit the moneys to be recovered to that
amount overpaid to the employee during the twelve months preceding the date
the error was discovered.
3. It is mutually agreed that temporary transfer situations shall be paid as
follows:
a. Company convenience - employees transferred will be paid the rate of
his own job or the rate to which transferred, whichever is higher.
b. Lack of work placements - employees transferred will be paid the grade
of the job to which transferred.
c. The higher rate will apply only to transfers which are for a period of
one hour or longer.
d. When overtime is not available in an employee's classification and the
employees voluntarily agrees to work in a different classification,
he/she will be paid the rate of the job. Company will consider all
qualified volunteers on an equitable basis.
ARTICLE X
JOB EVALUATION
PRINCIPLES OF THE C.W.S. EVALUATION PLAN
A. STANDARD HOURLY WAGE SCALE
1. The standard hourly wage scales of rates for the respective job
classes and the effective dates thereof shall be those set forth in
Exhibit A of this Agreement.
2. The (5) pay grades shall relate to the (21) C.W.S. job grades as
follows:
PAY GRADE C.W.S. JOB GRADE
1 1-4
2 5-8
3 9-12
-17-
18
4 13-16
5 17-21
B. NEW AND CHANGED JOBS
1. All Bargaining Unit jobs that have been described and evaluated by the
Job Evaluation Committee in accordance with the provisions of the
C.W.S. Manual for Job Classification of Production and Maintenance
Jobs (Updated as of 1/l/63).
2. The job descriptions and classifications will become effective with
respect to an employee when that employee's job is covered by the CWS
Job Evaluation Plan and shall continue in effect unless:
(a) The Company changes the job content (requirements of the job as
to the training, skill, responsibility, effort, and working
conditions) to the extent of one full job class or more;
(b) The job is terminated or not occupied during a period of one
year;
or:
(c) The description and classification are changed in accordance with
mutual agreement of officially designated representatives of the
Company and the Union.
3. When and if from time to time the Company, at its discretion,
establishes a new job or changes the job content (requirements of the
job as to training, skill, responsibility, effort, and working
conditions) of an existing job to the extent of one full job class or
more, a new job description and classification for the new or changed
job shall be established in accordance with the following procedure:
(a) The Company Job Evaluation Committee will develop a description
and classification of the job in accordance with provisions of
the Manual.
(b) The proposed description and classification will be submitted to
the Grievance Committee for approval, and the standard hourly
wage scale rate for the job class to which the job is thus
assigned shall apply in accordance with the provisions of the
Manual.
(c) If the Company and the Union are unable to agree upon the
description and classification, the Company shall install the
proposed classification and the standard hourly wage scale rate
for the job class to which the job is thus assigned shall apply.
The employee or employees affected may at any time within thirty
(30) days from date of installation file a grievance
-18-
19
alleging that the job is improperly classified under the job
description and classification of the Manual.
Thereupon the Grievance Committee shall prepare and mutually sign a stipulation
setting forth the factors and factor coding which are in dispute. Such grievance
shall be entered in the 2nd step of the Grievance Procedure and settled in
accordance with the Job Description provisions of the Manual. If the grievance
is submitted to the Arbitration Procedure, the decision shall be effective as of
the date when the new job was established or the change or changes installed but
in no event earlier than thirty (30) days prior to the date on which the
grievance was filed.
(d) In the event the Company does not develop a new job description
and classification, the employee or employees affected or the
Grievance Committee may, if filed promptly, process a grievance
under the grievance procedure of this Agreement requesting that a
job description and classification be developed and installed in
accordance with applicable provisions of the Manual.
C. CHANGED JOBS OF LESS THEN ONE JOB CLASS
1. When Management changes a job, but the job content change is less than one
full job class, a supplementary record shall be established to maintain the
job description and classification on a current basis and to enable
subsequent adjustment of the job description and classification for an
accumulation of small job content changes as follows:
(a) Management shall prepare, on the form set forth, a record of the
change involved, such record to become a supplement to the job
description and classification and be transmitted to the appropriate
Union representative through the procedure of this manual. This record
shall contain statement of the additions to or deletions from the job
description, the factor classifications in effect before the job was
changed, the proposed new factor classifications and the net total
change.
(b) When and if an accumulation of such fractional job content changes
equals one full job class or more, a new job description and
classification for the job shall be established in accordance with
this manual.
2. When Management terminates a job, or a job is not occupied during a period
of one year, a record as to cancellation of the applicable job description
and classification shall be established as follows:
(a) Management shall prepare, on the form set forth in this manual, a
record of the canceled job description and classification. This record
shall contain identification of the job, and statement of causes for
cancellation of the job description and classification, such as: job
terminated, job not occupied during period of one year; etc.
-19-
20
(b) Such record shall be transmitted to the appropriate Union
representative through the procedure of this manual.
3. When Management changes the identification details relative to a given job,
such as name of the department or sub-division, or plant title or code of
the job, a record as to such change shall be established as follows:
(a) Management shall prepare, in the form set forth in this manual, a
record of the identification change. The heading of the record shall
show the identification details of the job prior to change, and the
changes to be made shall be enumerated under the caption of
"Description Change."
(b) Such record shall be transmitted to the appropriate Union
representative of the employees affected through the procedure of this
manual.
D. SKILLED TRADES CLASSIFICATIONS AND TRAINEES
Skilled Trades Classifications will be considered to be:
Tool and Die Maker
Toolmaker
Machinist
Electrician - Electronic Electrician - Shop
Electrician - Instrument Technician
Millwright
Machinist Welder
Die Sinker
ARTICLE XI
PRODUCTIVITY IMPROVEMENT PLAN
The Company and Union recognize the need to encourage and reward productivity.
The procedure for recognizing and rewarding improvements in productivity shall
be the Productivity Gainsharing Plan.
The productivity gainsharing plan shall be a plant wide bonus plan based on the
productivity of the direct labor bargaining unit employees.
The clock hours of new hires will not be included in the calculation of the
productivity index for their first four (4) weeks of employment.
-20-
21
The clock hours of non-probationary employees who, because of a bump or bid,
require training by a trainer will not be included in the calculation of the
productivity index for up to five (5) days of training.
The measure of productivity shall be an index equal to the amount of earned
direct labor hours divided by the total clock hours of direct labor employees.
Earned direct labor hours shall be defined as the standard hours assigned to the
productive labor operations. These operations are assigned to labor account 000.
Other operations such as setups, book allowances, etc., are not considered as
earned direct labor even though they have a labor standard.
Total clock hours shall be defined as all the clock hours of those employees
classified as direct, regardless of whom time was spent.
The productivity index shall be computed for each calendar quarter.
Bonus computation will be based on a comparison of the quarterly index to the
base index. The base index shall be .830 effective 5/2/94.
The bonus plan shall be a 90% Gainsharing Plan. For each 1% change in the index,
a .9% payment will be awarded.
If the productivity index for a quarter is higher than the base index a bonus
payment shall be issued.
FORMULA: Quarterly Index - 1 x .9 + Bonus %
---------------
Base Index
EXAMPLE: 1.00 = (1.25) - 1 = 18.4%
---- ----------
.830
All bargaining unit employees will receive a bonus payment equal to their
straight time earnings during Bonus Quarter times bonus %.
If the quarterly index is lower than the base index, a pay deduction shall be
computed using the same procedure.
In order to encourage true productivity gains the following practices shall
apply.
1. Labor standards will be frozen at base levels. Any improvements in
productivity, regardless of the source, shall enhance the bonus
opportunity. Methods changes that are detrimental to quality, safety or
machine operation will not be allowed.
-21-
22
2. New standards will be established for new products and new equipment.
Previously established Industrial Engineering practices shall be employed.
The clock hours spent on new equipment or new products shall not be used in
the bonus computation until such time as standards are issued. Operators on
new equipment or new products shall receive bonus payments.
3. Direct Earned Hours for unacceptable quality work due to operator error
will not be used in the computation.
The productivity gainsharing plan described above shall become effective on the
effective date of the labor agreement between the Union and Xxxxxxx Industries
Inc.
Xxxxxxx Industries Inc. and the Union mutually encourages ongoing productivity
gains. The Company will endeavor to work with the Union to refine, modify or
improve this plan and/or devise alternate plans which promote productivity
gains.
ARTICLE XII
GRIEVANCE AND ARBITRATION PROCEDURE
SECTION 1. SETTLEMENT OF GRIEVANCES
A. An employee having a request or complaint shall first present it to his
xxxxxxx. The employee may ask his Union Representative to accompany him in
his discussion with the xxxxxxx.
B. A grievance is defined as any dispute between the Company and the Union, or
between the Company and any of its employees, arising during the term of
this Agreement and involving an alleged violation of the terms of this
Agreement or an alleged failure to comply with the Agreement, or a dispute
as to its interpretation or application.
C. Any grievance, as above defined, shall be processed in the following
manner:
STEP 1 The employee, or the Union Representative, shall first verbally
present the grievance to his xxxxxxx within five (5) working days
after occurrence of the event or the date on which the employee knew
or could have known of the event and the xxxxxxx shall give his answer
within five (5) working days. If the grievance cannot be resolved
orally, the employee or his Union Representative shall submit the
grievance to his xxxxxxx promptly in writing on a form agreed to by
the parties and provided by the Company for this purpose. The
grievance form shall be dated and signed by the employee or his union
representative. The xxxxxxx shall provide an answer to the employee or
his union representative in writing within five (5) working days of
his receipt of the grievance form.
STEP 2 If the Union wishes to appeal the grievance further, the designated
management representative shall be notified by the grievance
committeeperson within five (5)
-22-
23
working days after receipt of the xxxxxxx'x answer. The designated
management representative shall meet with the appropriate grievance
committeeperson within five (5) working days after receipt of notice
from the Union. The Company's answer shall be given in writing within
five (5) working days after the meeting with the committeeperson.
STEP 3 The grievance, to be considered further, must appear on the agenda
for the next scheduled third step grievance meeting. If not, the
grievance shall. be considered settled on the basis of the Company's
Step 2 answer. Agendas shall be exchanged three (3) working days prior
to the monthly grievance meeting. The Director of Industrial
Relations, or his representative, shall meet with the Grievance
Committee, including the President of the Local Union, as an
ex-official member of such Committee, and the Staff Representative, at
the next scheduled grievance meeting. The Company's answer shall be
given in writing within seven (7) working days after the meeting on
the grievance.
SECTION 2. ARBITRATION
A. If either the Union or the Company wishes to appeal the grievance further,
it shall notify the other party in writing on its desire to submit the
matter to arbitration. Such notice must be received within fifteen (15)
working days after receipt by the Union of the Company's answer at Step 3.
If the parties are unable to agree on an Arbitrator within five (5) working
days after notice to the Company, the matter shall be referred to the
American Arbitration Association.
B. The Arbitrator shall be without authority to change, alter or amend the
terms of this Agreement. In no event shall any disposition or award upon
any grievance be made retroactive for any period longer than thirty (30)
calendar days prior to the date the grievance was filed in writing in Step
1. The fees and expenses of the Arbitrator shall be shared equally by the
parties and the decision of the Arbitrator shall be final and binding upon
both parties, including the grievance. The voluntary labor arbitration
rules of the American Arbitration Association shall govern the selection of
an Arbitrator and all proceedings.
ARTICLE XIII
REPRESENTATION
SECTION 1
The company will carry on all Union relations through the accredited Staff
Representative, Grievance Committee, and accredited Representatives of the
Union.
-23-
24
SECTION 2
The Company agrees to recognize Union representation. Defined areas and the
number of Representatives recognized may be changed upon prior written mutual
agreement of the Company and the Union. Areas of representation will be posted
on the Union bulletin board.
SECTION 3
The Local Union will notify the Company in writing of the name and status of any
Union officials referred to herein and notify the Company in writing of any
revisions in such.
The Company will give the Local Union President a similar notice on changes in
supervision and area supervised.
SECTION 4
The Company will recognize a Union grievance committee consisting of four (4)
members. The Union shall furnish the Company, in writing, with the names of such
members.
SECTION 5
The Company agrees to recognize alternate members of the Grievance Committee and
alternate representatives, providing such individuals are replacing absent
accredited committee members or representatives for a period of five working
days or more and providing advance written notice is given by the Union of the
name of the individual.
SECTION 6
Grievance Committeepersons, with the permission of the foremen, shall be
afforded reasonable time off without pay to investigate or process grievances.
It is understood that such activities shall not interfere with production.
SECTION 7
Requested quarterly meetings between the Grievance Committee and the Company
will be at a time and place designated by the Company.
ARTICLE XIV
DISCIPLINE
SECTION 1
The Company shall have the right, at any time, to adopt reasonable rules and
regulations. All employees shall be subject to such rules and regulations.
-24-
25
In enforcing such rules and regulations, or other accepted standards of
industrial behavior, the Company has the right to discharge, suspend, or
otherwise discipline for just cause.
In determining the appropriate discipline in case of a violation, the Company
shall exercise its discretion subject to the provisions of this Agreement and
shall advise the Union of any formal disciplinary action taken against an
employee. Such action shall be subject to the grievance and arbitration
procedure except in the case of a probationary employee. When disciplinary
hearings involve a Company Department Head, the Union will be given reasonable
notice of said hearing. if said hearing is for an 11 - 7 shift employee, the
Union will be notified of said hearing by 2 PM on the day before the hearing.
SECTION 2
Where the Company decides to discharge or suspend an employee with seniority,
the employee and the Union shall be so notified and the reasons therefor. In no
case will the employee be peremptorily discharged, but shall first be suspended
for five (5) working days, during which time there shall be a hearing attended
by the employee and representatives of the Company and the Union. Before the end
of the five (5) working day period the Company shall decide whether the
suspension is to be revoked, extended, or converted into a discharge. The
employee may challenge the Company's action through the grievance procedure,
commencing at Step 2, by submitting a written grievance in the usual form to the
Management representative.
ARTICLE XV
VACATION
SECTION 1
The vacation year will be the period from June 1 to May 31 of the following
year. The vacation qualifying period will be the 12 months (June 1 - May 31)
preceding the vacation year.
SECTION 2
To be eligible for a vacation in any vacation year during the term of this
Agreement, the employee must:
(a) have one year or more of continuous service,
(b) have performed work in at least 50% of the pay periods in the vacation
qualifying period, except that in the case of an employee who completes one
year of continuous service in the vacation year, he shall have performed
work in at least 50% of the pay periods during the twelve (12) months
following the date of hire of his last continuous employment. An employee
who qualifies for the first year anniversary vacation week in the month of
May, will be allowed to take vacation during the anniversary week provided
there is no scheduling problem. However, should vacation scheduling
problems arise during the month of May, said employee(s) may receive
vacation pay in their anniversary week, and
-25-
26
schedule the vacation time during Plant Shutdown or take both vacation pay
and time during Plant Shutdown. Time an employee spends on vacation or on
an injury compensable under Xxxxxxx'x Compensation shall be considered as
time worked except to the extent provided in Section 11.
In the event of an employee's vacation is scheduled during a period when he or
she is out on a bona fide A & S claim or industrial accident, if the employee so
requests, the company will endeavor to schedule time off, if possible,
consistent with production needs and at the approval of supervision. It is
agreed that there will be no duplication of pay in such instances.
An employee with more than one year of continuous service who is ineligible for
a vacation because of failure to perform work in at least 50% of the pay periods
in the vacation qualifying period due to layoff or sickness shall be entitled to
one week's vacation, if he has performed work in at least 50% of the pay periods
in the twelve (12) months preceding January of the vacation year. An elected
Union Official may count time off work on Union business towards said 50% of pay
periods.
Days lost as a result of a bona fide injury or illness compensable under
workers' compensation or A and S, will count toward fulfilling the eligibility
requirements for vacation pay only for the vacation year in which the original
precipitating event occurred. Such pay will be paid upon the return to work of
said employee. Employees returning to work following such an occurrence, will
be required to work fifty percent (50%) of the then current remaining
eligibility period in order to qualify for vacation for the current year.
SECTION 3
An eligible employee who has attained the years of continuous service indicated
in the following schedule in any vacation year shall receive a vacation
corresponding to such years of continuous service as shown in the following
schedule:
1 or more years continuous service 1 Week
3 or more years continuous service 2 Weeks
7 or more years continuous service 3 Weeks
15 or more years continuous service 4 Weeks
25 or more years continuous service 5 Weeks
The Company will allow "patch time", for vacation only, for those active
employees who originally took the "window" in 1988.
SECTION 4
There shall be no duplication of either vacation eligibility or vacation payment
for any employee in any vacation year. No vacation time may be accumulated from
one year to the next.
-26-
27
SECTION 5
The Company shall have the option to schedule vacation shutdowns according to
the needs of the business. In the event of one or more scheduled plant vacation
shutdowns within the vacation year, employees other than those employees
scheduled to work may have in the case of a second shutdown, their vacation time
scheduled during such shutdown period. Employees entitled to additional vacation
beyond the period of plant vacation shutdowns will have their vacations
scheduled at other times during the vacation year, consistent with the
preference of longer service employees and consistent with operating
requirements.
The Company will give notice in January of any vacation shutdown to be scheduled
in June, July, or August. Such shut-down shall be considered vacation for all
eligible employees not scheduled to work during this period. A planned program
of scheduling all additional vacation time available will then be undertaken and
completed in the first quarter of each calendar year. The company will consider
an employee's request to work a double shift so as to prepare for a Holiday or
scheduled vacation. Should a request of this nature be approved by supervision
it is understood that all premium pay normally associated with working these
additional hours would be waived. A request of this nature may be considered in
emergency situations if approved by supervision. In all such requests safety and
health aspects will be a factor. Any such request will be brought to the
attention of the area union representative.
Those employees scheduled to work production during shutdown will be given the
option to take vacation or work with the general maintenance crew, if in fact
production work is not available. It is understood that general maintenance work
will be paid as stipulated in the contract.
SECTION 6
A. Extra maintenance crew help will be recruited using a voluntary
sign-up sheet. Selection will be based on seniority and future
production requirements. After exhausting the voluntary list, a
mandatory crew, assignments will be made using reverse seniority.
Volunteers will be allowed to schedule their vacation at a later date.
This procedure does not apply to employees with less than two (2)
weeks of earned vacation.
B. It is agreed that general maintenance (Shutdown), grade 6, will be
included as a permanent job in the CWS structure.
This job will only include those employees performing the general
maintenance duties during the vacation shutdown period. This job will
not include those employees working their regular job during the
vacation shutdown period.
SECTION 7
A. The vacation pay will be based on 40 hours. Beginning with the
vacation year 6/1/95, vacation pay will be calculated using average
hours for the preceding
-27-
28
vacation qualifying period (June - May). Said pay will be based on 40
hours minimum, 44 hours maximum.
B. The vacation pay will be at the individual employee's average earned
straight time hourly rate, including shift premiums, based on the
period between January 1 and May 31 preceding the vacation year.
SECTION 8
When a paid holiday falls within the vacation week, the employee affected shall
have the option of receiving the Holiday Pay with no additional time off or
taking an additional day's vacation. Should the employee elect to take the
additional day, one week's prior notice must be given to supervision, and the
additional day must be either the scheduled work day immediately preceding the
vacation week or the scheduled work day immediately following the vacation week.
SECTION 9
Persons having military obligations are not obligated to schedule their
vacations to coincide with training periods. Should a plant vacation shutdown
happen to coincide with such a training period, the vacation may be taken at
some later date, or he may receive vacation pay in lieu if he chooses.
SECTION 10
The Company and the Union intend that to the greatest extent possible, eligible
employees shall receive the benefit of vacation from work. However, it is
recognized that operating requirements may make it necessary to require that
some employees postpone their vacation to a later date or to request that some
employees work and receive a vacation allowance in lieu of actual vacation time.
The Company and an individual employee may mutually agree that vacation payment
will be made in lieu of actual time off from work.
SECTION 11
In the event of termination for any reason, an employee will be paid for any
unpaid vacation for which he is eligible.
In the event of termination due to retirement for any reason, a retiring
employee will not be eligible for vacation or vacation pay unless he qualifies
under Section 2 using the full 52 pay periods qualifying period; provided,
however, that only for employees retiring between January 1 and May 31, they may
be eligible for vacation as follows:
-28-
29
(1) If the employee's retirement is due to normal retirement at age 65, he will
be eligible for vacation if he actively performs work in 50% of the pay
periods between June 1 and the date of his normal retirement; or
(2) If the employee's retirement is for any reason, prior to normal retirement
at age 65, he will be eligible for vacation on a pro-rata basis (using the
number of pay periods considered as time worked as the numerator and 52 as
the denominator of the fraction) but the time such an employee spends on
vacation between June 1 and the date of his retirement will not be
considered as time worked.
ARTICLE XVI
HOLIDAYS
SECTION 1
The days on which the following holidays are observed shall be paid holidays for
employees who meet the eligibility requirements:
New Year's Day
Washington's Birthday
Good Friday
Memorial Day
July 4th
Labor Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
1 Personal Floating Holiday
Employee's Birthday
An eligible employee shall receive average straight time hourly rate for the ten
(10) weeks preceding the holiday. This average does include shift differential,
if applicable.
SECTION 2
In order to be eligible for holiday pay, an employee must meet the following
requirements:
(a) Be a full-time employee
(b) Work his scheduled work day before and his scheduled work day after the
holiday, unless excused by the Company for a legitimate reason.
(c) He must have performed work sometime during the calendar week in which the
holiday is observed, or the calendar week prior thereto unless his failure
to meet this requirement is caused by absence because of (1) a continuous
period of verified personal illness in which
-29-
30
case he shall be eligible for payment for the paid holidays set forth above
which fall during such period, but only up to a maximum of 52 weeks from
the last day worked, (2) jury duty, (3) military encampment, (4) paid
vacation.
(d) Should the Company schedule work for the 3-11 shift on Christmas or New
Year's Eve, it will be optional.
SECTION 3
An employee working on a holiday shall receive holiday pay and in addition shall
be paid one and one-half times his average earned straight time hourly rate for
hours worked on the holiday. An employee who works on a scheduled holiday and
who requests another day off at no pay in place of that holiday, at the time of
the scheduled holiday work, the Company wherever possible will endeavor to
provide that time off consistent with production needs. If this request is
granted, the day off will be scheduled within the next three month period. An
employee's birthday holiday may be scheduled from the Friday before to the
Monday following if the employees xxxxxxx agrees but, in that event, the
employee shall not be entitled to time and one-half under this section if he
works on his birthday.
SECTION 4
Should an employee scheduled to work on a holiday fail to report for work
without reasonable excuse, he will forfeit his right to holiday pay as herein
above provided.
SECTION 5
Probationary employees will receive holiday pay for those holidays occurring
during their probationary period only after successfully completing their
probation.
SECTION 6
Employees receiving a workers' compensation payment for a Company paid holiday,
will not be eligible to receive a duplicate payment from the Company.
ARTICLE XVII
HEALTH AND SAFETY
SECTION 1
The Company will continue to make systematic safety inspections, and to provide
safety devices, guards, and medical service to minimize accidents and health
hazards on its premises.
-30-
31
SECTION 2
The Union will cooperate with the Company in the continuing objective to
eliminate accident and health hazards. To this end, an advisory joint health and
safety committee will be established consisting of (3) members appointed by the
Union and at least (3) by the Company. This group shall meet at least monthly to
review ways of meeting the stated objective. The agenda for the meeting will be
prepared by the Company and will include subjects proposed by the Union
representatives. It is understood that with respect to the addition of the 11:00
P.M. - 7:00 A.M. Safety Committee person, the following method of pay will apply
when this individual is required to make a special off-shift trip to the plant
so as to attend the monthly safety meeting.
The 11:00 P.M. - 7:00 A.M. Safety Committee Person will receive his/her base
rate for the time spent in attendance at the safety meeting.
This understanding pertains to the 11:00 P.M. - 7:00 A.M. shift Safety Committee
Person only, and will not set a precedent with respect to any committee or
individual.
ARTICLE XVIII
JURY DUTY
A non-probationary employee, who is called for jury service or - who is
subpoenaed as a witness shall be excused from work for the days on which he is
required to report for jury duty or serve as a witness. Service, as used herein,
includes required reporting for jury duty or witness service when summoned,
whether or not he is used. Such employee shall receive, for each such day of
service, on which he otherwise would have been scheduled to work the difference
between the rate of his regularly assigned classification for the period worked
prior to such service and the payment he receives for such service (not
including travel pay). 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
the pay, if any, received therefor. An employee will be expected to report for
scheduled work on days he is not required to report for jury or witness service.
ARTICLE XIX
LEAVE OF ABSENCE
SECTION 1
A leave of absence for personal reasons may be granted an employee by the
Company in its discretion. A leave of absence may be granted for any period up
to six (6) months, and provided written application is made and approved before
a previous leave has expired, may be extended for further six (6) months or
shorter periods. The Union will be notified of any such leave.
SECTION 2
Seniority will accumulate during an approved leave of absence.
-31-
32
SECTION 3
An employee on leave of absence shall have life insurance, group hospital and
medical insurance coverage to the end of the month in which his leave commenced.
The employee shall be permitted to continue his life insurance, group hospital
and medical insurance for the balance of his leave provided he pays the
appropriate premium.
SECTION 4
Employees receiving workers' compensation or sickness and accident benefits,
will have twelve (12) months of medical coverage from the date of the original
qualifying event with appropriate co-pay required. This continuation coverage
shall run coterminously with the first twelve (12) months of the company's
obligations under COBRA; however, no additional premiums beyond those paid by
active employees shall be assessed until the 13th month of the continuation
period, as permitted by COBRA.
ARTICLE XX
MILITARY SERVICE
SECTION 1
A non-probationary employee who is required to attend an encampment of the
Reserve of the Armed Forces or the National Guard shall be paid, for a period
not to exceed two weeks in any calendar year, the difference between the amount
paid by the Government (not including travel, subsistence and quarters
allowance) and the amount calculated by the Company according to the following
formula: such pay shall be based on the number of days such employee would have
worked had he not been attending such encampment during such two weeks (plus any
Holiday in such two weeks which he would not have worked) and the pay for each
such day shall be eight (8) times his average straight time hourly (including
shift premium) rate during the last payroll period worked prior to the
encampment. If the period of such encampment exceeds two weeks in any calendar
year, the period on which such pay shall be based will be the first two weeks he
would have worked during such period.
SECTION 2
A non-probationary employee who is placed on leave of absence for the purpose of
entering the Armed Forces for active duty voluntarily or involuntarily, shall
accumulate seniority while fulfilling this obligation.
In order to retain this accumulated seniority, the employee must report to the
Personnel Department within ninety days of his discharge with a certificate to
the effect that he has satisfactorily completed his active duty. The employee
will then be returned to work in line with his seniority.
-32-
33
SECTION 3
An employee who, after being honorably discharged from the Armed Services of the
United States is reinstated in employment pursuant to applicable statute, shall
be entitled to vacation pay or allowance in and for the vacation year of
reinstatement based upon his continuous service eligibility, without regard to
any other requirement.
ARTICLE XXI
ALLOWANCE FOR FUNERAL LEAVE
When a non-probationary employee is absent due to the death and funeral of his
or her legal spouse, mother, father, mother-in-law, father-in-law, son,
daughter, brother or sister (including stepfather, stepmother, stepchildren,
stepbrother, stepsister when they have lived with the employee in an immediate
family relationship), an employee, upon request, will be excused and paid for up
to a maximum of three (3) shifts for which he was scheduled (or for such fewer
scheduled shifts as the employee may be absent) which fall within a three (3)
consecutive work day period, provided, however, that one such funeral leave day
shall be the day of the funeral and it is established that the employee attended
the funeral. When a non-probationary employee is absent due to the death of his
sister-in-law, brother-in-law, the employee, upon request, will be excused and
paid for up to a maximum of one (1) shift (Grandparents, two (2) shifts); for
which he/she was scheduled, provided, however, that the day shall be the day of
the funeral and it is established that the employee attended the funeral. If
there is no funeral service at the time of death, attendance at a Memorial
Service conducted within six months of the death may be substituted.
Payment shall be eight times his average straight-time hourly earnings. An
employee will not receive funeral pay when it duplicates pay received for time
not worked for any other reason.
ARTICLE XXII
DISCRIMINATION
It is the continuing policy of the Company and the Union that there shall be no
discrimination with regard to race, color, religious belief, national origin,
age or sex.
ARTICLE XXIII
BULLETIN BOARDS
The Union shall have the right to post notices on specific bulletin boards
provided for that purpose. Copies of all such notices shall be submitted to a
designated representative of Management prior to posting and shall be restricted
to: (1) notices of meetings of the Union, (2) notices of its election, (3)
notices of its appointments to office and the results of election, and (4)
notices of its social, educational or recreational affairs.
ARTICLE XXIV
STRIKES AND LOCKOUTS
-33-
34
SECTION 1
During the term of this Agreement there shall be no strike walkout, slowdown or
picketing or any concerted action, by the Union or any employee or group of
employees, which may interfere with operations.
Any employee participating in such violation shall be subject to immediate
discharge or other disciplinary action.
If any of the acts prohibited by the first paragraph occur, the Union promptly
after the beginning of such violation shall disavow any part in such action and
its officers shall take reasonably positive steps to have employees cease such
action immediately.
SECTION 2
There shall be no lockout by the Company during the term of this Agreement.
ARTICLE XXV
PRIOR GRIEVANCE
No grievance alleged because of conditions existing prior to the date of this
contract shall be presented for adjustment in the Grievance Procedure except
insofar as the conditions upon which said grievance is based continue in effect
and are the proper subject of a grievance under this Agreement.
ARTICLE XXVI
INSURANCE
An exhibit setting forth agreements relating to Non-Occupational Disability
Insurance, Life Insurance and Hospital and Surgical Insurance attached hereto as
Exhibit C is hereby incorporated by reference and made part of this Agreement.
ARTICLE XXVII
PENSIONS
An agreement relating to pensions attached hereto as Exhibit D is hereby
incorporated by reference and made part of this Agreement.
-34-
35
ARTICLE XXVIII
MISCELLANEOUS
SALE OF COMPANY
The Company shall require, as a condition of the sale of the Company or of the
Fitchburg Facility, any successor employer to recognize the Union as the
collective bargaining representative of its employees, rehire all employees, and
abide by all the terms and conditions of this Agreement.
ARTICLE XXIX
SUB-CONTRACTING
In the event the Company finds it necessary to sub-contract work out which is
customarily performed by the bargaining unit at the Fitchburg facility, it will
give notice to the Union prior to subcontracting the work. Further, the Company
will discuss the economic and business reasons of the decisions to sub-contract
with the Union and make a good faith effort to have the work to be
sub-contracted done by active bargaining unit employees. The Company, however,
reserves the right to sub-contract bargaining unit work if business and economic
reasons deem it appropriate to do so.
ARTICLE XXX
TERMINATION
This Agreement shall be effective for the period from May 5 1997, to 11:59 P.M.
of April 30, 2000 and from year to year thereafter unless either party gives at
least 60 days notice in writing to the other party prior to April 30, 2000 or 60
days notice in writing prior to any subsequent anniversary date of this
Agreement of the desire of such party to terminate or modify this Agreement.
In witness whereof the parties by their respective representatives thereunto
duly authorized have caused this Agreement to be executed on the day and year
first above written, at Fitchburg, Massachusetts.
STEELWORKERS COMPANY
Xxxxxxx XxXxxxxxxx Xxxxxx Xxxxxxxx
Xxxxxx Xxxxxxx Xxxxx Xxxxxxxxx
Xxxxxx Xxxxxxxx Xxxxxx Xxxxxx
Xxxxxxx Xxxxx Xxxx Xxxxx
Xxxxxx Xxxxx Xxxx Xxxxxx
Xxxxxxx Xxxxxxx Xxxxx Xxxxxxxxxx
Xxxxxxx Xxxxxxxx
-35-
36
EXHIBIT A
STANDARD HOURLY WAGE SCALE
The following hourly wage rates will remain in effect from May 5, 1997 through
May 3, 1998.
C.W.S. RATE PAY GRADE RATE
1-4 1 $10.90
5-8 2 $11.85
9-12 3 $12.85
13-16 4 $13.90
17-21 5 $15.00
An adder will be paid to 2nd and 3rd shift employees.
2nd shift $.25 per hour
3rd shift .35 per hour
Effective May 4, 1998, all rates will increased by $.35/hr. Effective May 3,
1999, all rates will increase by an additional $.45/per hour.
37
EXHIBIT B
SENIORITY DEPARTMENTS
Line 4 Customer Products
Line 8 Bits and Xxxxxx
Line 10 Hand Hacksaws
Line 11 Heat Treat
Line 12 Power Hacksaws
Line 13 Steel Rule
Line 16 Inserted Tooth
Metal Saws
Line 18 Carbon Band
Line 19 Weld Edge Band
Line 25 Toothing Department
Line 26 Carbide Tip Bandsaws
Line 39 Eastern Sales
Line 42 Tool Crib
Line 43 Tool Department
Line 45 Machine Shop
Line 46 Electrical Shop
Line 47 Millwrights
Line 48 Yard
Line 49 Housekeeping
Line 56 Raw Stock/
Receiving/Wheel
Storage/Rotoclone
Line 80 Shipping
38
EXHIBIT C
INSURANCE
This shall confirm that insurance coverages are in place for medical, dental,
ortho, A & S, Life, AD & D, and Retiree Medical. There will be no employee
co-pay for medical insurance premiums through 12/31/97 and no employee co-pay
for dental insurance premiums through 12/31/98.
Also, the Company will increase its monetary contribution to cover any increases
in the Fallon HMO effective January 1, 1998 and January 1, 1999 and January 1,
2000. Any monetary increase required on these dates will not exceed six percent
(6%) of the premium then in effect. Additionally, the Company will make a
similar monetary contribution, with a like restriction, for premium increases
experienced with Delta Dental on January 1, 1999 and January 1, 2000. Any
increases over and above the said six percent (6%) shall be absorbed by the
employee.
In the event that a monetary increase does not reach the said six percent (6%)
level in a particular insurance plan year, the excess dollar amount for that
particular year is carried forward to offset any monetary increases over and
above the six percent (6%) level of the ensuing plan years during the life of
this Labor Agreement. Under no circumstances will any carry over extend beyond
the termination date of this Agreement.
It is also mutually agreed that all non-probationary employees at the time of
lay off will be covered under the group medical plan for two months from the end
of the month of lay off.
This understanding will provide all laid off employees while unemployed the same
amount of coverage, and will no longer involve the 10th of the month billing
cycle as a determining factor.
Highlights of the benefits provided are as follows:
Fallon - HMO (See Company provided Handbook).
Dental - Delta
Effective 1/1/98 -
$50.00 Deductible x 3
$1,500 Dental Coverage per person/per calendar year
$1,000 Ortho Lifetime Maximum
Employees opting not to participate in the Xxxxxxx Industries Inc. medical
and/or dental program will receive 25% of any premium savings.
A&S
$300 Weekly Indemnity for up to 26 weeks. Beginning l/l/98, Weekly
Indemnity is increased to $320. Beginning 1/l/99, Weekly Indemnity is
increased to $340. Beginning 1/l/2000, Weekly Indemnity is increased
to $350.
39
Eligibility is from the first day of accident, provided employee is
absent from work seven (7) days, and 8th day of illness.
Life Insurance
Effective May 5, 1997 $14,000 Member
Effective May 5, 1998 $18,000 Member
Effective May 5, 1999 $20,000 Member
AD & D - 2 times the benefit
A bargaining unit employee shall have the option to purchase additional life
insurance coverage over and above the basic life insurance benefit by
contributing an amount equal to the Company premium required to be paid to the
carrier on a monthly cost per thousand basis. An employee shall be able to
exercise this option up to a maximum of $12,000.00 additional life insurance
coverage.
New employees must enroll for coverage at time of hire.
Retiree Medical Insurance - for employees retiring between ages 62-65.
The Company will contribute $100 per month towards medical insurance
until the retiree reaches the age of 65.
The above listing does not describe all of the terms and benefits. Those are
described in the summary plan description booklets and are subject to the terms
of the supplemental agreement.
-39-
40
EXHIBIT D-PENSIONS
U.1.U. PENSION CONTRACT
This shall confirm that there exists a supplementary agreement between Xxxxxxx
Industries Inc. and the U.1.U Pension Trust. This agreement outlines the
company's obligation to the trust as follows:
1. Effective May 2, 1994, the company shall contribute 6% of base pay for all
employees completing 10 years of service with Xxxxxxx Cutting Tools/Xxxxxxx
Industries Inc.
2. The company shall contribute 5% of base pay for all other employees.
The parties agree that base pay shall be defined as total gross wages, including
overtime, holidays, vacation, but excluding suggestion or safety awards, and
productivity gainsharing bonuses.
The U.1.U. Pension Trust defines normal retirement at 65 years of age with 5
years of covered service and defines early retirement at 60 years of age again
with 5 years of covered service.
41
EXHIBIT E
SPECIAL SKILL JOBS REQUIRING
EXTENDED TRAINING PERIODS
JOB TITLE CODE
Grinder, Form, Surface, Bevel 04-02
Filler, Specialty & Fitter - Circular Saws 04-09
Heat Treater, B & S 08-03
Drop Forge Operator 08-11
Group Leader Drop Xxxx 08-21
Group Leader In-Line and Inspect 08-24
Q.C. Technician - Wood 08-30
Grinder - Bevel - Six Head 13-03
E.D.M. Operator 13-21
Broacher - Vertical 18-01
X.X. Xxxxxx #2 19-02
Shot Peen & Temper 19-08
Xxxx Rolling Machine 19-12
Key Man Composite Bandsaw Area 19-15
Milling Machine Operator Toothing 19-17
Setting Push Type and Deburr 19-18
Key Man Bandsaw Milling Area 19-20
Q.C. Technician - Metal 19-30
CNC Grinder Operator 19-31
Weld and Fit CTMB 26-01
Leadman Carbide Tipped Metal Band 26-02
Group Leader Cutter Grind 43-16
Utility Shipper 80-07
NOTE: JOB 18-08, SETTER ROTARY WILL BE DESIGNATED AS SPECIAL SKILLS WHEN
ELECTRONIC NON-CONTACT GAUGING SYSTEM IS OPERATIONAL.
It is agreed that future jobs requiring extended training period will be
evaluated, and by mutual agreement will be added to this category if they
qualify as "Special Skill Jobs".
42
EXHIBIT F
(POOL JOBS)
Grinder, Finish Bits 08-04
Milling Machine Operator - Butts 08-10
Boxer Bandsaw 18-16
Deburr Operator 18-18
Boxer, Wrapper 39-03
Janitor 49-01
EXHIBIT G
This shall confirm that there will exist a 401K Savings Plan which will be
established as soon as practical following Contract ratification. Features of
the plan will include:
- Participation by Fitchburg Bargaining Unit employees of record as of
5/5/97. All new bargaining unit employees may participate following
probation.
- The Plan is non-contributory by the Company.
- The Plan will be administered by the currently established Corporate
Plan Administration Committee.
- Maximum contributions by employees will be as legally allowed.
- Plan will have specific loan provisions.
- Participants will be allowed to direct their contributions into
various investment vehicles.
- Participants will be fully vested.
- Once established, a complete plan description will be available as
legally required.
LETTER OF UNDERSTANDING
The Company and the Union agree to form a joint committee for the purpose of
monitoring dental and health insurance cost containment. Any new plans
investigated shall mirror all existing coverages. No changes in existing
coverages will be made without the written authorization of the Company and the
Union.
43
LETTER OF UNDERSTANDING
The Company will undertake to direct supervisors that "performing the work of
bargaining unit employees in emergency situations" must be invoked only in the
case of a bona fide emergency where the safety of employees or the potential
loss of production capability is eminent.
LETTER OF UNDERSTANDING
The clock hours of employees in Job Codes 19-15, Keyman Composite Bandsaw Area
and 19-20, Keyman Milling Area, will be classified as Direct for purposes of
Productivity Index calculation.
-43-
