AGREEMENT
Between
ROLLER BEARING COMPANY OF AMERICA
and
INTERNATIONAL UNION U.A.W.
LOCAL 502
DECEMBER 1, 1996
ARTICLE 1
PARTIES TO THE AGREEMENT
This Agreement is entered into between ROLLER BEARING COMPANY OF AMERICA
("RBC" or the "Company" or the "Employer") and the INTERNATIONAL UNION U.A.W.
and its Local 502 (the "Union").
ARTICLE 2
PHILOSOPHY STATEMENT
This Agreement recognizes the need for a new approach to Union/Management
relations and the more effective use of human resources in the manufacture of
bearings worldwide. It further recognizes the competitiveness in the bearing
industry and the potential for increased global competitive pressures with our
current and future customers. Both parties recognize the need to develop and
maintain an atmosphere of cooperative problem solving to accomplish our mutual
objectives. We understand that our job security depends upon our success in
making quality bearings, in a cost-effective manner, and in satisfying our
customer expectations and commitments.
3
We believe that people want to be involved in decisions that affect them, care
about their jobs and each other, take pride in themselves and in their
contributions and want to share in the success of their efforts.
Making progress toward these mutually agreed upon goals will require a
relationship of mutual respect, open communication, shared success, mutual aid,
innovative problem solving, and shared decision-making. The parties agree that
in order for the Union to effectively represent its members, the Union must have
a role in the decision-making process that affects its members. It is the intent
of the UAW and RBC to create a workplace that recognizes the need for people to
be treated with respect and dignity and recognizes that collective bargaining
can be an essential and constructive force in our plant. All parties in this
Agreement will strive to make the West Trenton plant of RBC the best of its kind
in the marketplace; making the highest quality product; a cost effective,
profitable operation; a coveted place to work, and a responsible member of the
community.
It is in this renewed spirit of mutual respect and recognition of each other's
stakes and equities that this Agreement is entered into and agreed upon.
ARTICLE 3
UNION RECOGNITION
The Company recognizes the Union as the exclusive collective bargaining
agent for all the Company's production and maintenance employees at its plant in
West Trenton, New Jersey, in respect to rates of pay, wages, hours of employment
and other conditions of employment, excluding, however, office employees,
supervisors, plant protection employees, crib workers,
4
laboratory employees, and time study personnel, pursuant and subject to the
provisions of the Labor-Management Relations Act-1947 and amendments thereto.
ARTICLE 4
UNION SECURITY AND CHECK-OFF
To the extent permitted by law, all bargaining unit members shall be
required, as a condition of employment, to become and remain members in good
standing of the Union on and after the thirtieth (30th) day following the
beginning of their employment or the effective date of this Agreement, whichever
is the later, to the extent of paying an initiation fee and membership dues
specified by the Union. No employee shall be discharged by the Company for
failure to maintain good standing in the Union until such employee has received
a written notice from the Union that he is not in good standing, and has at
least seven (7) days thereafter in which to put himself in good standing. For
the purposes of this Article, "good standing with the Union" means that the
employee's dues for any month must be tendered by the last day of the month
following such month.
RBC will provide for check-off of union dues and initiation fees on behalf
of employees who request such a service in accordance with prevailing law. The
Union shall indemnify and save RBC harmless with respect to any claims or
expenses arising out of any action taken as or not taken by RBC for the purpose
of complying with this Article.
ARTICLE 5
NON-DISCRIMINATION
The philosophy and mission of RBC are designed to be in full and complete
compliance with the legal and moral principles of equal opportunity in
employment. Accordingly,
5
the Company and the Union pledge, on behalf of themselves, as well as their
officers, members and representatives to treat all persons equally without
regard to their race, color, religion, age, sex, national origin, disability, or
veteran's status. Although the term "he" is used throughout this Agreement, it
is used to represent both male and female employees and is not intended to be
discriminatory or exclusive in any way, but rather to simplify the language for
understanding.
The Company agrees that neither it nor any of its representatives will
intimidate, coerce, interfere with or discriminate against any employee because
of proper activity in behalf of the Union. The Union agrees that it nor any of
its officers or members will threaten, intimidate, coerce or interfere in any
manner with any employee.
ARTICLE 6
STRUCTURE AND DECISION-MAKING PROCESS
The intent of the parties is to create an evolutionary process towards a
goal in which employees will be part of the decision-making process with respect
to producing to schedule, producing a quality product, performing to budget,
housekeeping, health, safety, environmental conformance, maintenance of
equipment, material and inventory control, training, job assignment, repairs,
scrap control, and scheduling time off. It is anticipated that the transition
towards this goal will extend over much, if not all, of the term of this
Agreement. The anticipated transition is outlined in the Memorandum of
Understanding No. 1, attached to this Agreement. This transition may be
accelerated or extended by mutual agreement of the parties.
The parties' goal envisions an organization structured as spelled out
below. It is understood that the transition
6
process will be limited to one Work Group sharing the decision-making authority
and the participation management described in the Article, unless mutually
agreed by the Company and the Union. The remainder of the bargaining unit will
also be assigned to product line Work Groups with the work flexibility
associated with that as described in the Memorandum of Understanding No. 1, but
will be managed on more traditional terms.
WORK GROUP MEMBER:
The individual RBC employee.
WORK GROUP:
An integrated group of not more than 20 Work Group Members with a common
manufacturing and support purpose related to a product or products.
The Work Group will have the responsibility and authority to produce
quality products to schedule at competitive costs. It will have responsibility
for both direct and indirect work and, as such, will hold meetings, obtain
supplies, keep records, seek resources as needed, and be responsible for job
preparation and attainment of its own materials and supplies. It will constantly
seek improvement in quality, cost and work environment. The Work Group will also
be responsible for the planning and scheduling of the work and communications
within and outside the group.
WORK GROUP REPRESENTATIVE:
An employee elected by the Work Group to participate with management in
coordinating the administrative functions of the Work Group and report at least
monthly on Work Group progress to the Plant Council. The Plant Council may
recall a Work Group Representative upon petition of at least two-thirds of the
members of the Work Group.
7
WORK GROUP SUPERVISOR:
A member of management who will coordinate the activities of the Work
Group. In addition, Work Group Supervisors will be responsible for employment,
termination, and coordination of job transfers, and will do advanced planning
for resources both short and long term, and will determine and plan resources
needed by the Work Groups, including administration, engineering, materials,
financial, etc.
UNION PLANT COMMITTEE:
The Union Plant Committee is elected by the union members according to the
Union bylaws. Membership will consist of a President and one additional member
for every forty (40) employees, with a minimum of no less than three members,
provided, however, that the current five committee members will continue in
office for the balance of their term or until they resign or are removed by the
Union, whichever occurs first. Union Plant Committee members will have top
seniority for layoffs and recall purposes. They will be assigned to serve on the
Plant Council and the other committees created by this Agreement as the Union
sees fit. The Union President or his designee will be afforded up to twenty (20)
hours per week for the purpose of conducting Union business.
PLANT COUNCIL:
A consultative employee group, consisting of three (3) members of the
Union Plant Committee and an equal number of representatives from the Company,
including the Plant Manager or his designee, who participate in decision-making
processes addressing issues affecting the entire plant or which have not been
resolved in the Work Group. Additional members may be added by mutual agreement
of the parties on an ad hoc basis while resolving specific issues. The Plant
Council will meet as often as necessary, but at least weekly.
8
In connection with the foregoing and with other issues affecting the
plant, the parties recognize that all functions of management are reserved
exclusively to the Company, except insofar as they are delegated or shared
pursuant to the terms of this Agreement. These functions include the management
of the business, the determination of the products, methods, processes and means
of manufacturing, the establishment of the size and direction of the work force,
the setting of working schedules, the rights to hire, promote, demote, lay off,
transfer, discipline, discharge for proper cause and establishing fair
efficiencies and Shop Rules. The Company will perform these functions in the
spirit of the Philosophy Statement of this Agreement.
Within the Work Groups, decisions on matters within the Groups' authority
which are not otherwise provided for in this Agreement will be made through the
consensus decision-making process outlined below:
a) Such decisions shall be made in the context of the Philosophy Statement and
within the Structure and Decision-Making framework.
b) Decisions should be achieved through the joint efforts of all to discover the
best solution.
c) Decisions must be arrived at promptly.
d) A decision must provide a high level of acceptance for all parties.
e) Once a decision is reached, all parties must be totally committed to the
decision.
f) Any party may object to a proposed decision, in which event the objecting
party must propose concrete alternatives.
9
g) In the event an alternative solution is not forthcoming, the objecting party
must re-evaluate its position in the context of the Philosophy Statement.
h) In the event a decision acceptable to all parties is not promptly attainable,
the matter will be referred to the Plant Council.
The Plant Council will also seek to reach decisions on matters within its
authority under this Agreement by means of the consensus decision-making process
outlined above, provided that, if such a decision is not promptly attainable,
the Company shall have the right to take action, subject to the Union's right to
grieve under the Agreement.
ARTICLE 7
WORK PERFORMED OUTSIDE THE BARGAINING UNIT
1. The parties shall conform to the principle that non-bargaining unit employees
shall not perform any operation which would deprive employees of their regular
work. This is not to be interpreted to prevent their necessary function of
instruction and demonstration and of engaging in productive activities where
required in order to handle incidents which affect efficient operation.
2. Non-bargaining unit employees may be used to perform experimental work, with
or without the assistance of employees in the bargaining unit, as management
determines. Experimental work is defined to mean all work involved in the
development of new, different or modified products, parts, tools or equipment.
3. When experimental work is to be performed on a production basis, it will be
assigned to bargaining unit
10
employees. Experimental work on a production basis is defined to mean production
of products, parts, tools or equipment after design and testing have been
completed and production for inventory or orders has commenced, and will be
assigned to bargaining unit employees.
ARTICLE 8
TRAINING
Both the Union and the Company recognize that training will be required to
prepare Work Group and Plant Council Members to perform these functions and that
this transformation will require a gradual cultural change, but agree to work
together over the life of this Agreement to obtain the skills necessary to meet
the levels of authority and responsibility described here.
A Training and Education Committee will be established to develop,
schedule and manage the training and education process. Two (2) employees
selected by the UAW N.J. Area Director and two (2) employees selected by the RBC
Plant Manager will constitute the Training and Education Committee. A minimum of
two (2) hours training and/or education will be provided for each employee per
month when averaged on a yearly basis. This minimum training and education
requirement will include either on-the-job training to learn to perform specific
skills and/or classroom training on subjects necessary to conform with the
Philosophy Statement of this Agreement. The Training and Education Committee
will work with the members of the Work Groups to develop, schedule, and
implement training and education programs.
The Training and Education Committee will develop a training and education
plan that will include necessary skills and education for the implementation of
this Agreement.
11
This plan will include a schedule of training for all employees in coordination
with the principles of the pay for knowledge and skills process. A skills
assessment of all employees and the requirements for all levels of each
classification will be included in the plan. The Training and Education
Committee will submit its initial plan for six months training and education to
the Plant Council for approval within ninety (90) days of the ratification of
this Agreement. The training and education plan will include the utilization of
a qualified trainer or trainers selected by the Plant Council, whose duties may
also include helping the parties to facilitate the transition process. Expenses
for training and education will be borne by the Company or through grants where
available. After the initial training and education plan, the Committee will
submit a plan every six (6) months for approval. Training will begin within
thirty (30) days of the approval of the initial plan which must be finalized
within two (2) weeks of its submission. In the event the members of the
Committee shall fail to reach consensus on any aspect of the plan, the opposing
views shall be submitted to the Plant Council for determination.
Each Training and Education Plan will include (but will not be limited
to):
* technical skills
* problem-solving
* consensus decision-making
* business basics and philosophy
* trade unionism
* team building
* English as a second language.
Any Skilled Trades components of the training and education plan will be
developed with the assistance of the UAW Skilled Trades Department.
12
Each member of the Union Plant Committee will be given a minimum of 60
hours of training in business and economics related studies each year of this
labor agreement, at Company expense. Such training may include visits to other
manufacturing facilities, classroom training, or on-site training, etc. and will
be determined by joint union and management agreement.
Unless deemed otherwise, all training and education approved by the Plant
Council as part of the Training and Education Plan will be mandatory and costs
will be borne by the Company.
ARTICLE 9
PROBATIONARY PERIOD
1. Any new or rehired employee shall be considered on probation with no
seniority for a period of sixty (60) scheduled work days, not including absence
days for any reason. Once the probationary period is satisfactorily completed,
the employee will receive seniority credit dated back to the first day of his
current hiring.
2. The Company may, at any time, transfer, layoff, or discharge a probationary
employee for any reason whatsoever and no claim may be made by the Union or any
of its members that the transfer or discharge of such employee was improper.
Bargaining unit employees will not be asked to pass judgment on the performance
of the probationer.
13
ARTICLE 10
SENIORITY
1. Computing Seniority
A. The seniority standing of an employee shall be computed on the basis of
the length of his service, from the date of his last employment with the
Company, subject to the provisions of this Agreement. When more than one
employee is hired on the same date, to establish their seniority position, their
names will be placed on the seniority lists in alphabetical order by last name
(at the time of hire), first name, and middle name.
B. An employee who is transferred to a position not within the Bargaining
Unit and then returned to the Bargaining Unit within six (6) months after
transfer, shall return with full seniority.
C. Service will accumulate during an approved personal leave of absence,
Union leave, family and medical leave, maternity leave, sick leave, military
leave, funeral leave, or jury duty.
2. An employee's length of service and seniority shall be considered ended, and
the employee will have no further recall or other rights as an employee of any
kind or nature, except the right to vacation pay, and insurance continuation, if
such an employee:
A. Voluntarily quits his employment (if rehired by the Company within
three (3) working days after quitting, seniority shall not be affected), or
B. Is discharged for proper cause, or
14
C. Is absent for three (3) working days without properly notifying the
Company, unless a satisfactory explanation is given for failure to call. (NOTE:
this does not remove the obligation of calling in on the first day of absence),
or
D. Fails to return to work from layoff within five (5) working days after
proper notification by certified mail, return receipt requested or an accepted
method of overnight delivery by the Company at the last know address as it
appears on the Company records, unless a satisfactory reason is given, or
E. Fails to return to work at the end of an approved leave of absence or
gives a false reason for obtaining a leave of absence, or
F. Passes the time limit for recall from layoffs, or
G. Requests and receives severance pay as a result of a qualified layoff.
ARTICLE 11
LAYOFFS AND RECALL TO WORK
1. Layoff Provisions
A. The Company will give at least seventy-two (72) hours notice prior to
layoff to the employees affected, even if only one employee is affected.
B. When a job is eliminated within a classification in a Work Group, the
least senior employee in that classification in the Work Group will be
displaced.
C. An employee displaced from a classification within a Work Group may
bump on the basis of plant seniority the
15
least senior employee in the same or a lower rated classification in another
Work Group. The employee will designate a job choice within 48 hours from the
end of the shift on which he was displaced. Employees can only bump into a
Skilled Trades jobs if they previously held the job.
2. Recall Provisions
A. Recall will be offered to employees on the recall list in reverse order
of layoff when there are no successful bidders for an open job.
B. If an employee on the recall list is offered regular, full-time
re-employment of 60 working days or more on the same job and shift as previously
held, and he refuses to accept it, he will be dropped from the recall list and
no longer have any rights under this Agreement, except the right to any unpaid
vacation and any rights under the benefits plans.
C. If an employee on the recall list is offered regular, full-time
re-employment of 60 working days or more on a different job or shift lower than
his regular job, and he refuses to accept it, he will remain on the recall list
until such time as he is offered another opportunity to return to work. A third
refusal to return to work will cause such employee to be removed from the recall
list and no longer have any rights under this Agreement, except the right to any
unpaid vacation and any rights under the benefits plans.
D. Employees on the recall list are responsible for keeping the Company
notified of any change of address or phone. If the Company cannot contact a
previous employee at the last known address, he will be dropped from the recall
list.
16
E. A laid off employee will remain on the recall list according to the
following time limits:
SENIORITY TIME LIMIT
Probationers No Recall
2 years or less 2 years
2 years to 5 years equivalent of seniority
5 years and over 5 years
ARTICLE 12
OPEN JOBS
1. Filling Open Jobs
A. Whenever the Company determines that an open job exists in the
Bargaining Unit (other than a Skilled Trades job):
1) The Company will post notice of such opening for forty-eight (48)
hours. Employees who wish to apply for the opening must do so by putting a job
bid form in the Bid Box during the posting period. Only those employees who
apply during such 48-hour period will be considered for the job and will have a
right to grieve the final selection.
2) Any employee may submit a bid under the provisions of paragraph
1) above on behalf of an employee who is on vacation or leave of absence during
the posting period. Employees on leave of absence will be considered, provided
they will be returning from leave in a reasonable period of time.
3) Applicants will be awarded the open job on the basis of
seniority.
17
4) A successful bidder will be transferred to the open job within
forty-five (45) calendar days after he is designated. If he is not so
transferred within thirty (30) calendar days after designation, the employee
will be paid at least the minimum rate of the job.
B. When an open job exists in one of the Skilled Trades classifications,
the posting and bidding procedure outlined in Subsection A above shall apply.
The job will be awarded on the basis of seniority. However, employees who have
previously held the job in the Skilled Trades classification in which the open
job exists, will be given priority. Those employees bidding for the job who have
not previously held the open Skilled Trades job will be required to take a
standard skills assessment test to verify qualification and aptitude for
successful performance. Where no applicant possesses the requisite
qualifications, the Company may determine whether to train or hire on the
outside.
2. Successful applicants will receive a rate of pay commensurate with previous
experience, qualifications, and training.
3. Successful applicants will be trained on the shift where suitable training
conditions exist, and will be moved to the posted shift as soon as practical
after sufficient skill levels are reached.
4. Situations where successful applicants either change their mind about a job
or receive a job failure will be reviewed by the Plant Council and appropriate
actions taken as agreed.
5. If an unqualified candidate is selected for a Skilled Trades position, the
Training and Education Committee will
18
develop a two-year apprenticeship program, including classroom and on-the-job
assignments, that will provide comprehensive exposure to all required skills for
successful performance of the job. The program will be submitted to the Plant
Council for review and approval.
ARTICLE 13
SEVERANCE PAY
1. In the event that the Company transfers any equipment or jobs or any part
thereof to another location established by it beyond a twenty-five mile radius
from the center of West Trenton, NJ, and, in the future event, that such
transfer is the immediate cause of, or that such transfer directly or indirectly
results in a layoff of employees, any employee thus laid off shall have the
option to elect to take severance pay in lieu of such layoff subject to the
provisions below:
A. In the event that such transfer as described above, results in a
bumping of employees without a layoff, any such bumped employee who is entitled
under the provisions of this Agreement to another job covered by this Agreement,
which would result in a loss of less than $1.00 per hour in wages below the job
from which he is being bumped or from which he was originally bumped because of
a transfer within the time limit, shall not be entitled to severance pay.
Any such employee thus bumped who is not entitled under the provisions of
this Agreement to another job covered by this Agreement which would result in a
loss of less than $1.00 per hour in wages below the job from which he is being
bumped, or from which he was originally bumped because of a transfer within the
time limit, shall have the option to elect to take severance pay in lieu of the
19
job to which he is entitled under the provisions of this Agreement.
B. When a layoff or bumping as a result of a transfer occurs between the
date of the transfer and within the following two years, employees in such
layoffs or bumping with more than one year seniority shall have a claim on
severance pay.
C. When a layoff or bumping, as a result of a transfer, occurs two years
after the date of the transfer, but within five years of the transfer, employees
in such layoff or bumping shall have a claim to severance pay, when the length
of their seniority is more than the time period between the date of the transfer
and the date of the layoff or bumping.
D. When the layoff or bumping as a result of the transfer occurs five
years or more after the date of the transfer, there shall be no claims for
severance pay.
X. Xxxxxxxxx Pay
1) To elect to take such severance pay in lieu of layoff or bumping,
the employee must advise the Company of his election in writing, delivered to it
within 90 days after the commencement of the layoff or incident of bumping.
Severance pay shall be computed on the basis of forty hours pay at the
employee's regular straight time hourly rate, at the date of the commencement of
the layoff or incident of bumping, for each year of seniority since the date of
the last hire.
2) The Company will increase the severance pay from 1 week to 2
weeks per year of service whenever productivity increases an average of 1% a
month. Otherwise, severance pay of 1 week will apply.
20
Formula:
+ West Trenton Plant Sales Dollars
+ Transfers to Hartsville and Warehouse in Sales Dollars
+/- Change in WIP + Finished Goods Inventory
----------------------------------------------------------
= Output
Hours = Total straight time + overtime hours
Output = Productivity Measure Hours
X. Xxxxxxxxx pay hereunder shall be paid to an electing employee within
one year after the receipt by the Company of the notice of election and, upon
payment of severance pay in a lump sum, the employee shall thereafter have no
further seniority, recall or other rights as an employee of any kind or nature,
except the right to Vacation pay due to him under Article 22 and the right which
his credited service may have entitled him under the Pension Plan.
G. Seniority employees on extended sick leave have no claim under the
above provisions.
2. Until such a time as the Plant Closing Notification laws go into effect, the
Company will give the employees 45 days advance notice of an imminent plant
closing as the laws' language pertains. When the law goes into effect, it will
comply fully with the language of the law.
21
ARTICLE 14
LEAVE OF ABSENCE
1. Types and Conditions of Leave
A. Personal Leave
Upon written application, a leave of absence for a specified purpose, and a
specified period of time may be granted to employees with the mutual consent of
the Company and the Union. A copy of such leave is to be given to the Union.
B. Union Leave
Members of the Union, not to exceed one (1) for every forty (40)
represented employees at any one time, elected or appointed by the Union to
assignments which take them away from their employment with the Company, shall
be given a leave of absence for the period of such Union assignment, and upon
return to work for the Company shall be re-employed on the same job which they
performed at time of leave and at the rate of pay prevailing for that job.
Duly elected Union representatives, not to exceed one (1) for every forty
(40) represented employees at any one time, shall be granted leaves of absence
for short periods to attend Union Conventions and similar Union functions.
The Union will give the Company as much notice as possible whenever more
than two Union representatives will be out of the plant simultaneously.
C. Sick Leave
An employee, who may become ill or injured and qualify for
non-occupational state disability, and has supported his absence with
satisfactory evidence similar to
22
that required under the Company's Family and Medical Leave policy, shall, upon
application, be granted an unpaid leave of absence. The employee must provide
medical evidence of continued disability as required.
In all instances, upon returning to work, a statement must be presented
from a qualified physician stating the employee is physically capable of
performing his regular job assignment. The Company reserves the right to obtain
a second opinion from a qualified physician designated by the Company and at the
Company's expense. The employee will return to his previous job provided work is
available and he has the seniority to do so. If the leave was an approved FMLA
Leave for personal disability, he will return to his previous job or a
comparable job. Otherwise, he will be eligible to bump another job, subject to
the seniority provisions of this Agreement, and provided he has the skill and
ability to perform the work.
D. Family and Medical Leave
It is understood that all of the leave provisions herein shall be
administered in a manner consistent with an employee's rights, if any, under
applicable family and medical leave statutes. Likewise, it is the parties'
intent that the Company shall have the right to exercise any rights of an
employer under such applicable statutes.
E. Maternity Leave
Employees absent from work due to pregnancy shall be granted Sick Leave as
described above, provided the required application, approvals, procedures and
proof of medical disability are followed as outlined in the Company's FMLA
Policy and conform to current applicable laws concerning maternity absences. A
leave of absence for pregnancy may be extended up to three (3) months
23
following delivery, without loss of seniority or service. In all instances, upon
returning to work following a delivery, a statement must be presented from the
family physician stating the employee is physically capable of performing her
regular job assignment.
F. Funeral Leave
A seniority employee who has a death occur in his immediate family
(father, step-father, mother, step-mother, husband, wife, brother, step-brother,
sister, step-sister, child, father-in-law, mother-in-law) will be excused from
work up to three days. A seniority employee whose grandparent(s) or whose
spouse's grandparent(s) pass away, will be excused from work for one day.
For each such day of absence on which he otherwise would have worked and
does not work, he shall be paid eight times his regular straight time hourly
rate, provided the employee attends the funeral and submits proof of death. In
the case of death in foreign residence, a death certificate is required.
G. Jury Duty
A seniority employee who is called to and reports for jury duty shall be
excused from work on the days on which he serves or where jury duty was canceled
after he reported to serve. In addition, he shall receive for each day of jury
service on which he otherwise would have worked and does not work, eight times
his regular straight time hourly rate.
Such payments shall not exceed a total of twenty (20) days in any calendar
year. Such compensation shall be payable only if the employee gives the Company
prior
24
notice of such jury duty call; and presents proper evidence as to the jury duty
performed.
H. Military Leave
The Company will conform to the requirements of any applicable provisions of law
with respect to military training or service.
2. Leave Provisions
A. Any employee on leave may return to work in line with his seniority,
before the expiration of the leave, providing not less than seven (7) calendar
days notice is given to Management.
B. Employees who are approved for Personal Leave will be required to apply
any remaining vacation days to the beginning of the leave period commencing with
the first day of the leave.
C. Employees who are approved for Personal Leave, Union Leave, Sick Leave,
Military Leave (except for yearly two-week encampments), Family and Medical
Leave and Maternity Leave will be granted such leave without pay.
ARTICLE 15
OVERTIME
The regular work week will be scheduled as eight (8) hours a day, forty
(40) hours per week, as long as, in the Plant Council's judgment, it is
practicable and consistent with the efficient operation of the plant.
Overtime opportunities will be substantially equalized within a Production
Work Group, between those employees with the appropriate skill level for the
required work. Work
25
Groups will develop and administer their own plans for a fair and consistent
scheduling and regulation of overtime opportunities within the group. The Plant
Council will develop plans for a fair and consistent scheduling and regulation
of overtime opportunities between Work Groups, which will be administered by the
Work Groups.
In the case of Saturday work, announcement prior to 9:00 a.m. on the
previous Thursday will be considered as sufficient. In the event that this work
is canceled after that time, the Company will compensate the affected employee
at the rate of four (4) hours overtime pay.
Employees will be paid time and one-half for:
a) Time worked in excess of eight hours in any continuous twenty-four
hours, beginning with the starting time of the employee's regularly assigned
shift.
b) All work performed in excess of forty (40) hours in any normal work
week
c) All time worked on any shift which starts on Saturday.
Double time shall be paid for:
a) All work performed on Sundays and holidays, except the 1st hour of the
normal night (third) shift and as provided under Article 23.
ARTICLE 16
WAGES AND OTHER COMPENSATION
1. Effective December 1, 1996, a general increase of two percent (2%) will be
applied to all individual rates of pay of each member of the bargaining unit.
Employees who are
26
not on the active roll at the time of the general increase will receive the
increase adjustment at the time they return to the active roll.
2. Effective March 3, 1997, a flexibility increase in the amount of thirty-six
cents ($.36) per hour will be applied to the individual rates of pay of each
member of the bargaining unit. Employees who are not on the active roll at the
time of the flexibility increase will receive the increase at the time they
return to the active roll.
3. Effective December 1, 1997, a general increase of three percent (3%) will be
applied to the individual rates of pay of each member of the bargaining unit and
to each rate in Appendix A. Employees who are not on the active roll at the time
of the general increase will receive the increase adjustment at the time they
return to the active roll.
4. Effective December 1, 1998, a general increase of one and one-half percent (1
1/2%) will be applied to the individual rates of pay of each member of the
bargaining unit and to each rate in Appendix A (after including the December 1,
1997, adjustment). Employees who are not on the active roll at the time of the
general increase will receive the increase adjustment at the time they return to
the active roll.
5. Classifications and Pay for Knowledge and Skills
a) The current classification system will remain in effect until such time
that the Plant Council institutes a three-classification and pay for knowledge
and skills system, at which time Appendix A will go into effect.
b) The Training and Education Committee will consult with all interested
parties and will prepare a written
27
report, surveying the skills and knowledge currently possessed by the employees
in the bargaining unit.
c) The new system will consist of three classifications:
Production
Skilled Trades (Maintenance)
Skilled Trades (Tool Room)
Furthermore, within each classification, there will be four levels of knowledge
and skills:
Basic
Core
Intermediate
Advanced
Training will be provided in each level, as necessary and as determined by the
Education and Training Committee in consultation with the Work Groups and with
final approval by the Plant Council.
d) Each employee assigned to a Work Group will be required to complete the
Basic and Core levels of training for that group. Intermediate and Advanced
level training shall be voluntary. However, if management of the Work Group
determines that insufficient intermediate and advanced levels of training are
available within the Group, it may resort to necessary measures which may
include transfers.
e) The three-classification and pay for knowledge and skills system is
designed to create greater flexibility and efficiency, and is not designed to
reduce the work force. Therefore, during the term of this Agreement, there will
be no layoffs of bargaining unit employees as a direct result of the institution
of this system. However, it is mutually agreed that
28
the Company retains the right to adjust the size of the work force due to
business, market or other such conditions. Moreover, management of the Work
Groups will be free to assign employees in accordance with the knowledge and
skill levels they have attained.
6. Employees who have perfect attendance by working all regularly scheduled
hours (not including overtime) in any specified quarter will earn a $150.00
Perfect Attendance Award for that period. For purposes of this award, perfect
attendance is defined as no available hours missed for unexcused absences,
illness or injury, discipline, leave of absence, or strike.
7. Employees actively at work on March 31 with more than five (5) years
seniority will receive $9 a year for each year of service as a Service Time
Award. Service time will be calculated each year on March 31 and the award will
be paid on April 30.
ARTICLE 17
NEW PRODUCTS
1. When and if, from time to time, the Company, at its discretion, decides to
manufacture a different product, new to the plant, it may create a new Work
Group or otherwise staff the production of such product by means of recalling or
rehiring experienced employees or by means of new hires. If the Company believes
that the skills and/or knowledge needed to produce such product on an efficient
and profitable basis are substantially different than the skills and knowledge
in the existing Work Groups:
a) the Company will install a wage range for the positions;
29
b) the wage range will be explained in the Plant Council with the object
of obtaining a consensus agreement. The wage program may be installed by the
Company without a consensus agreement in the Plant Council subject to adjustment
as provided below;
c) when a wage range is installed, the Union may process the issue in
accordance with Article 26 below, including submission to arbitration of a
grievance alleging that such does not bear a fair relationship to the wage
structure in the plant. The decision of the arbitrator, if any, shall be
effective as of the date when the employee(s) commenced manufacturing such
different product.
ARTICLE 18
SHIFT PREMIUM
1. A shift premium of 10% of the regular hourly rate will be paid to all
employees whenever they are assigned to and working on the afternoon and night
shifts for the life of the contract.
2. Where scheduled variations from the regularly scheduled shifts occur, the
jobs involved will be considered as falling on the shift on which a major part
of the job is worked.
3. Any employee who is called in to perform work in the shift preceding or
succeeding his regularly assigned shift, or who holds over beyond his regularly
assigned shift, will be paid the shift premium, if any, applicable to the shift
on which a major portion of his regular scheduled hours are worked. However,
when an employee on the Day Shift or the Afternoon Shift works twelve or more
continuous hours per day, including paid lunch period, he shall be paid the
applicable shift premium for all hours worked over eight.
30
4. Shifts shall be identified as follows:
(a) Day Shift - (1st Shift)
When the majority of hours on an employee's regularly assigned shift shall fall
between 7:00 a.m. and 3:00 p.m., inclusive, he shall be considered as working on
the Day Shift.
(b) Afternoon Shift - (2nd Shift)
When the majority of hours on an employee's regularly assigned shift shall fall
between 3:00 p.m. and 11:00 p.m., inclusive, he shall be considered as working
on the Afternoon Shift.
(c) Night Shift - (3rd Shift)
When the majority of hours on an employee's regularly assigned shift shall fall
between 11:00 p.m. and 7:00 a.m., inclusive, he shall be considered as working
on the Night Shift.
5. An employee on 2nd or 3rd shift, who has been awarded a new job on either 2nd
or 3rd shift, and who, for the Company's convenience has been temporarily
transferred to day shift for training, shall receive shift premium during the
period of such training. New employees will only be paid shift premium, when
transferred to the applicable shift(s). Day shift personnel will be paid under
other applicable provisions of the Contract.
ARTICLE 19
PAID BREAK AND LUNCH PERIODS
All employees will receive two (2) Company-paid, twenty (20)-minute paid
breaks each shift. The Work Groups will be responsible for scheduling break
times for the group.
31
Employees are encouraged to remain on Company property for the break
times. Those who remain on Company property are not required to clock out,
whereas those who leave the grounds, must clock out and back in upon their
return to the plant.
Employees who remain on Company property must take their breaks only in
the cafeteria, rest rooms, or on the Company grounds and parking lots. They may
not be taken on the manufacturing floor.
All vending machines will be located in the cafeteria and all profits
generated will go to the Union's activity fund to be expended as they decide.
ARTICLE 20
REPORTING PAY
1. Any employee who has not been notified when there is lack of work, and
therefore reports to work as scheduled, shall receive four (4) hours pay at his
regular hourly rate, unless the lack of work is caused by circumstances beyond
the control of the Company, or resulted from a labor dispute, or alternative
work was made available, or the employee could not be reached because of an
outdated phone number.
2. If an employee is asked to return to work after completing his shift and
leaving the plant or he is asked to come in to work when he was not already
scheduled, he will be paid the applicable overtime rate for the work. If the
call back time is less than three hours, he will receive his regular rate of pay
for the difference between the hours worked and three hours.
32
ARTICLE 21
TEMPORARY TRANSFERS
Employees may be temporarily transferred to other jobs, within the Work Group
and outside the Work Group, as required to meet production needs. Employees will
not be temporarily transferred between classifications except with the
employee's consent or in order to deal with the production needs of the business
on the last three work days of the production month.
ARTICLE 22
VACATIONS
1. Current Vacation Year is defined as the current twelve months between June 1
and May 31.
2. Vacation pay will be based on the straight time hourly rate and night shift
premium in effect on June 1 of the current vacation year. Vacation pay will be
calculated by multiplying the applicable percentage in the vacation pay schedule
below by the factor for computed clock hour listed below by the straight time
hourly rate and night shift premium in effect on June 1 of the current vacation
year.
A. Vacation Pay Schedule
Eligible Time Off Applicable %
6 mos. less than 1 year 1 week 2
1 year less than 2 years 1 week 2 days 2.8
2 years less than 3 years l week 4 days 3.6
3 years less than 5 years 2 weeks 2 days 4.8
5 years less than 7 years 2 weeks 3 days 5.2
7 years less than 9 years 2 weeks 4 days 5.6
9 years less than 11 years 3 weeks 6.0
11 years less than 13 years 3 weeks 1 day 6.4
33
13 years less than 15 years 3 weeks 2 days 6.8
15 years less than 17 years 3 weeks 3 days 7.2
17 years less than 19 years 3 weeks 4 days 7.6
19 years less than 21 years 4 weeks 8.0
21 years less than 23 years 4 weeks 1 day 8.4
23 years and over 4 weeks 2 days 8.8
B. Factor for Computed Clock Hours Calculation
1) Calculation
a) an employee who clocks between 1500 hours and 2000 hours shall be
paid his applicable percentage of 2000 hours times the total of his June 1
regular straight time hourly rate, and applicable shift premium.
b) an employee who clocks more than 2000 hours of work in any of the
above periods, for each such period he shall be paid an applicable percentage of
wages earned during the earnings period.
c) When an employee clocks less than 1500 hours of work in any of
the above periods, for each such period he shall be paid an applicable
percentage of wages earned during the earnings period.
2) For the purpose of computing clocked hours, any hours lost because of a
work week scheduled under forty (40) hours (except as listed i Paragraph 3.a.)
or hours paid for negotiating time and Grievance Meeting Time which fall in the
earnings period shall be counted as clocked hours.
3) Clocked hours shall be computed in full calendar weeks, starting with
the Monday before June 1, (or applicable date in 2A above) or June 1, if it
falls on a Sunday or Monday of the previous vacation year.
34
a) Time lost, during the earnings period, in any work week under
forty (40) hours because of a shutdown due to holiday, vacation, power failure,
storm, strike, fire or cause beyond the power of the Company, shall not be
considered clocked hours.
b) Earnings Period covers from June 1 to May 31 of the preceding
vacation year, except as noted in 2A above. Earnings Period shall be computed in
full calendar weeks, in the same manner as clocked hours in 2C.
c) Regular straight time hourly rate is the employee's individual
rate and does not include overtime and night shift premium.
3. Vacation schedules may be canceled in the event of a National Emergency.
Employees affected shall receive vacation pay on the same basis as outlined in
the Vacation Pay Schedule.
4. Whenever advertisement for extra work is posted for the Vacation Period,
those employees who do not have vacation pay due them, will be given preference
to the work. Work will be assigned on a weekly basis in as equitable a means as
practicable. If an employee requests to work in lieu of taking vacation time to
which he is entitled, the Company may agree to pay the appropriate monetary
amount in lieu of time off.
5. Vacation Payment after Separation
A. Employees who die, or go on leave or lay off, on or before May 31 (or
the applicable date in 2A above) of the preceding vacation year shall be issued
the Vacation Pay for which they qualify under the above Sections.
35
B. Employees who leave before December 31 of the preceding vacation year
for any reason other than those listed in 5.A above, are not eligible for
Vacation Pay.
C. Anyone leaving the employ of the Company between December 31st of the
preceding vacation year, and the following May 31 (or the applicable date in 2A
above), who qualified for Vacation Pay under Section 1 above, shall receive that
pay based on the applicable percentage of their wages earned between the
previous June 1st and their date of leaving.
D. Anyone retiring between December 31st of the preceding vacation year,
and the following May 31, who qualified for vacation pay under Section 1 above,
shall be issued the vacation pay for which they qualify under the above
sections.
6. An employee who returns to work from a Military Leave and who has not been
back at work for a full year on June 1 of the current vacation year will be paid
his applicable percentage of 2000 hours, times the total of his June 1 regular
straight time hourly rate and applicable shift premium.
7. The summer shutdown will consist of the second and third full weeks of July.
8. Vacation Time:
A. All employees will be expected to take the first two weeks of any
vacation time to which they are entitled during the shutdown period.
B. Employees may take vacation time in excess of the first two weeks anytime
during the year subject to the following provisions:
36
1) All full weeks to which an employee is entitled must be taken in
full weekly increments. Individual days may be taken separately. Requests for
full weeks will get priority over requests for individual days.
2) Vacation requests must be submitted through the employee's
Supervisor to Personnel.
a) Requests for full weeks must be submitted at least one full
month in advance.
b) Requests for individual days must be submitted at least one
full week in advance.
3) Any employee who is entitled to more than two weeks vacation may
submit his choice of time off for the upcoming year prior to April 1st of each
year. The Company will notify employees of such vacation approvals by April
15th. Vacation time will be granted up to 20% (or major fraction thereof) for
each class and work group by seniority, unless the Plant Council determines that
a larger percentage may be granted vacation. Any requests received after April
1st will be granted as per above on a first-submitted, first-granted basis.
Vacation requests submitted on the same day will be granted on a seniority
basis.
9. Employees who are scheduled for vacation during a week in which a paid
holiday falls, shall take the day off for the holiday at the end of the
scheduled vacation period. A listed paid holiday which falls during such week
will be paid.
ARTICLE 23
HOLIDAYS
1. Hourly rated employees shall be paid for the following Holidays without work
being performed, provided they meet the
37
eligibility requirements described below:
New Year's Day December 24
Good Friday Christmas Day
Memorial Day Three (3) weekdays
Independence Day between Christmas
Labor Day Day and December 31
Thanksgiving Day December 31
Friday after Thanksgiving Day
In applying this procedure, when any of the above enumerated holidays
falls on Sunday and the day following is observed as the holiday by the State or
Federal Government, it shall be paid as such holiday. When any of the above
enumerated holidays falls on Saturday and the previous day is observed as the
holiday by the State or Federal Government, it shall be paid as such holiday.
2. To be eligible for Holiday Pay, an employee must have completed his
probationary period and have worked the last scheduled work day before and the
next scheduled work day after the holiday within the same work week or have an
acceptable explanation for not doing so.
3. Eligible employees shall receive eight (8) hours' pay at their regular
straight time hourly rate exclusive of night shift and overtime premium for each
of the paid holidays.
4. If work is performed on these holidays, employees shall, in addition to the
regular holiday payment, receive twice their regular hourly rate for hours
actually worked, exclusive of night shift and overtime premium. Employees who
have accepted such holiday work assignment and then fail to report for and
perform such work without reasonable explanation, shall not receive pay for the
holiday.
38
ARTICLE 24
SAFETY AND HEALTH
1. Return to work from injury and/or illness - Not Work Related
A. An employee who has been incapacitated by injury or by sickness, so
that he is no longer able to do his regular job, and is subsequently able to
return to work with the approval of his personal physician, will be given
preference to a job, provided:
1) Work is available.
2) The selection is subject to the seniority provisions of the
contract, unless, by agreement between the parties, the seniority rules are
waived in such case.
3) He has the current skill and ability to do the job.
4) The rate received will be the rate of the job selected.
B. An employee who has been temporarily incapacitated by injury, or by
sickness may be employed in other work, at the Company's discretion, under the
following conditions:
1) Work is available.
2) He has the current skill and ability to do the job.
3) His personal rate applies for ninety calendar days after which
the rate of the job will apply. If, after 120 calendar days, the employee
continues to be incapacitated, the Company may then otherwise post the job on a
permanent basis.
39
C. The Company's discretion in employing incapacitated employees will be
even handed.
2. Procedures for Handling On-the-Job Injuries
A. When injured on the job, employees must use the medical facilities made
available by the Company for all services in connection with the injury. Any
employee who bypasses the Company facilities will act on his own responsibility
insofar as the expense involved.
B. Employees who, while at home, require emergency medical attention for
injuries sustained at work, will report to the Xxxxxx Xxxx Medical Center
Emergency Room for services.
C. Employees who are injured at their work in the plant and sent to the
hospital, shall, if they are sent home from the hospital, receive pay at their
regular rate for the balance of their shift or time in the hospital, whichever
is less. This applies to the first time they are sent home for such injury.
1) Injuries in plant will be handled efficiently in either hospital
or doctor cases.
2) Doctor visits on day shift will be scheduled to finish not later
than normal quitting time.
3. The Company may elect to provide work for ill or injured employees that meets
the physical restrictions outlined by the Attending Physician. If the decision
of the Attending Physician is disputed, the employee shall submit to an
examination by a physician selected by agreement of the parties. That
physician's decision will settle the issue.
40
4. The Company agrees that it will continue to provide sanitary and safety
devices within the plant. The Union agrees that the employees will take proper
care of such equipment.
5. Company Representative and Union President, or his designee, will tour the
shop once per month during working hours to review matters for safety and
health.
6. Safety and Environmental Committee
A. The Company and Union will expand its Safety Committee to include
responsibility for analyzing and correcting unsafe and unhealthful working
conditions inside the plant, insuring that the plant does not pose a threat to
the outside environment, and overseeing training on health, safety, and
environmental issues.
B. The Committee will consist of two (2) persons appointed by the Local
Union President and two (2) persons appointed by the RBC Plant Manager.
C. The Committee will meet at least once per month or as often as
necessary.
D. The Committee will conduct regular inspections of the different areas
of the plant to ensure that conditions are not hazardous. Reports of these
inspections will be given to the Work Groups that were inspected and to the
Plant Council.
E. Employee training required by law regarding Health and Safety will be
separate from the minimum time for training required in the Training and
Education Section of this Agreement. Such training, however, will be part of the
Training and Education Committee's regular plan.
41
7. Safety Glasses
A. The Company will provide up to $110 ($25 credit for exam and $85 for
glasses) for each employee purchasing prescription safety glasses once per
contract year. Employees select the doctor of their choice and request a
purchase order. All doctor's and lab visits will be made on the employee's time.
B. The Company will supply non-prescription Safety Glasses.
C. On both types of glasses, employees are responsible for the care of
their safety glasses. The Company will replace any glasses that were broken
during the course of work.
D. Safety glasses are required on the shop floor.
8. Work Shoes - Under the shoe policy, one pair of work shoes per year will be
provided. Payments will be made in accordance with current safety shoe policy.
ARTICLE 25
UNION FACILITIES
The Company agrees to provide the Union with a suitable Bulletin Board on
which it may post notices, provided such Union notices deal with meetings,
election of officers, appointment of committees and other non-controversial
matters concerning the affairs of Local 502, U.A.W.
As soon as practicable after ratification of this Agreement, the Company
will provide the Union officials with access to office space, as well as
telephone and
42
computer services, for use in conjunction with performance of their duties under
the terms of the Agreement
ARTICLE 26
DISPUTE RESOLUTION
It is recognized that, from time to time, disputes will arise, and that,
although every effort will be made to resolve issues at the source, resolution
will not always be reached without intervention from others.
Disputes on the shop floor will first be discussed with the affected
employees and supervisors, as appropriate, in an attempt to settle the issue. If
the matter cannot be resolved, the aggrieved employee may request that the
Supervisor call a member of the Union Plant Committee to discuss the issue.
Other disputes will be handled at the level that they arise. All disputes
involving discipline or affecting employment will be reviewed by the Plant
Council.
If the dispute cannot be resolved at the first level, a member of the
Union Plant Committee may submit the dispute as a written grievance, along with
all the facts, to the Plant Council, not more than ten (10) days after the
dispute arose. A meeting will be scheduled within one (1) week of such
submission to review the issues with the Plant Council and the appropriate
parties.
If the Plant Council cannot find resolution of the issue acceptable to the
affected employee, the issue will be discussed in a meeting with the Plant
Council and the UAW International Representative and Division Human Resources
Manager. If the issue cannot be satisfactorily resolved at this meeting, the
Company will respond in writing to the issue within five (5) days after the
meeting. At that time, the party who raised the issue may demand final and
binding
43
arbitration. In order to demand arbitration, the party must submit its demand,
in writing, within thirty (30) days after the dispute was submitted as a written
grievance. This thirty (30)-day time limit can only be extended by consensus of
the Plant Council, and then only for thirty (30) additional days. A log will be
kept of all written grievances in order to comply with the timeliness
provisions.
Arbitration will be in accordance with the Rules of Voluntary Labor
Arbitration of the American Arbitration Association and a dispute may be
submitted to arbitration by filing a Demand for Arbitration in accordance with
such rules within thirty (30) days of the submission of the grievance to
arbitration. If made within the scope of the authority of the Arbitrator, the
decision of the Arbitrator upon the issues submitted shall be final and binding
upon the parties to the Agreement.
The compensation and expense of the Arbitrator and the Arbitration
proceedings shall be borne equally by the parties.
ARTICLE 27
LIVING AGREEMENT
In keeping with our Philosophy Statement, this is a "Living Agreement". As a
"Living Agreement," both the Union and Management understand that there may be
issues that arise during the implementation of this Agreement that have not been
addressed or discussed during bargaining. However, it may only be modified
through consensus of the Parties.
44
ARTICLE 28
INSURANCE
1. Insurance Benefits - Active Employees
A. Subject to the provisions of this Agreement, the following Insurance
Plans will be procured by the Company to cover all regular employees as long as
this contract is in effect.
1) Group Life Insurance Policy - valued at $15,500 as of December 1,
1996. Coverage will increase to $20,000, effective June 1, 1997.
2) Accidental Death and Dismemberment Benefits - a maximum of
$31,000 as of December 1, 1996, (including the Group Life Insurance coverage
above). Such maximum will increase to $40,000 effective June 1, 1997.
3) HMO (Health maintenance Organization) coverage will be provided
to eligible employees and dependents through US Healthcare or equivalent.
Effective as soon as practicable after ratification of this Agreement, on the
first day of a calendar month, the plan will change to the Patriot V plan.
4) The Company will continue the dental care plan. Such plan shall
be evidenced by a written agreement conforming to the requirements of law and
satisfactory to the parties.
5) The Company will continue a prescription drug plan. Effective as
soon as practicable after ratification of this Agreement, on the first day of a
calendar month, the plan will provide for a $5.00 copayment by employees towards
the cost of a prescription and for exclusion of
45
Berrocca Plus and Imitrex injections from coverage. The Plan will provide that
employees may obtain prescriptions for qualified maintenance drugs by mail
without copayment. The Company will select the carrier, but will insure that the
services and the selection of participating druggists will be substantially the
same as previously provided.
B. Employees hired on or after the effective date of this Agreement shall
be eligible for the above Plan after they complete their probationary period.
C. The Company shall receive and retain any divisible surplus, credits or
refunds or reimbursements under whatever name made on any insurance contracts.
D. All administrative expense shall be borne by the Company and the
Company shall determine all administrative procedures which may be required to
execute such a program.
E. A $15.00 per employee per week co-pay for the current medical plan,
including HMO medical insurance benefits, dental benefits and the prescription
drug plan will remain in effect for all active employees and those on the
disability roll or an approved leave of absence. Employees who are on layoff and
eligible to receive benefit continuation will receive that coverage at no cost.
Employees who enroll in the plan will be covered for individual or family
coverage as applicable. The co-pay will be made on a pre-tax basis and will be
automatically deducted from the weekly pay of employees who are enrolled in the
medical benefits plan. Employees will receive Accidental Death and Dismemberment
coverage and the Group Life Insurance coverage at no cost.
46
2. Insurance Benefits - Retirees
A. The following identifies requirements for retirement from the Company
with respect to benefit continuation eligibility, benefit coverage, and required
contribution rates:
1) Retirees are defined as employees who terminate their employment
with the Company, and are, at the time of termination, at least age sixty-five
(65) or are eligible for Medicare benefits, and have at least ten (10) years of
service with the Company.
2) Early Retirees are defined as employees who terminate their
employment with the Company, and are, at the time of termination, at least sixty
(60) years of age, and who have at least ten (10) years of service, but are not
yet eligible as Retirees. Early Retirees who leave the Company, but who later
meet the eligibility requirements as Retirees will be considered thereafter to
be eligible for benefit continuation and coverage for Retirees.
B. Early Retirees may continue on the active employee's medical plan
described above, including the dental and prescription drug plans, until age 65
or until such time as they are eligible for Medicare. Such coverage will also
apply to spouses of Retirees where the Retiree is over age sixty-five (65) or is
Medicare eligible and the spouse is under age sixty-five (65) and is not
Medicare eligible. Coverage then ceases when the spouse reaches age 65. Such
continuation of active employee's coverage will be subject to the following
conditions:
(1) A monthly co-pay of $125 per household, payable in advance, for
all employees who retire prior to age 65, or
47
(2) Where an Early Retiree is totally disabled, such continuation is
available by paying the active employee's weekly co-pay of $15.00. Such
continuation will be available for a period of up to two (2) years provided the
Early Retiree does not reach age 65 or become eligible for Medicare. After two
years, if the Early Retiree wants to remain in the active employee's plan, he
must pay $125 per month per household in advance. After reaching age 65 or
becoming eligible for Medicare, Retirees will no longer remain in the active
employee's plan, but will be eligible for coverage under the Benefit Plan for
Retirees described below.
C. Retirees over age 65 or who become Medicare eligible are no longer
eligible for coverage under the active employee benefit plans described above
but are eligible for the following coverages:
(1) The Company will procure for eligible Retirees $6,500 group life
insurance coverage.
(2) Retirees and eligible dependents may enroll in the US Healthcare
Patriot V Medicare Supplement Plan (or an equivalent plan).
(3) Provided retirees have enrolled in the HMO Medicare supplement
plan, retirees and eligible dependents are eligible for prescription coverage up
to $1,500 per year, provided that, as soon as practicable after ratification of
this Agreement, on the first day of a calendar month, such $1,500 will be
eliminated.
The medical and prescription drug coverage described above will be provided to
Retirees and eligible dependents at no cost. However, the Company's premium cost
obligation is limited to the rates effective on December 1,
48
1996. Therefore, any premium increases over and above such current rates must be
paid by Retirees to be eligible for continued coverage.
D. When HMO Medicare Supplement coverage is not available where a retiree
resides, retirees and eligible dependents will be provided coverage through an
approved AARP or equivalent plan available in the retiree's area of residence.
The Company will pay up to the equivalent amount for the HMO coverage.
Additional costs for the AARP plan beyond the rates for HMO coverage must be
paid by the retiree to continue coverage.
3. Insurance Plans - General Information
A. All insurance as specified above and otherwise will be placed at the
discretion of the Company, including an option to place Temporary Disability
with New Jersey State.
B. The terms of any contract issued by an insurance company shall be
controlling in all matters pertaining to benefits thereunder and it is
understood that the grievance procedure of any collective bargaining agreement
between the parties hereto shall not apply to this plan of insurance or any
insurance plan in connection therewith.
C. All insurance is term insurance without cash, loan or paid up values.
D. All of the benefits provided under the HMO contract to an employee or
his dependents, if any, are subject to the coordination of benefits provisions
of the HMO contract.
E. Where employees with US Healthcare, or equivalent, Family Contract,
have no children under nineteen, the contracts may be converted by the Company
to individual single contracts.
49
The Commune will assume responsibility for the coverage which exists under a
current Family Contract, and which is not covered by a single contract.
4. Insurance Plans - Termination of Employment
A. TERMINATION SCHEDULE
Life AD&D/Medical/Dental/
Prescription Drugs
Quit Same day Same day
Discharge Same day Same day
Layoff Six months Six months - Medical
Same day-AD&D
* Leave of Absence
Personal Six months Sixty days
Union Six months Six months
Sick or Injury One year One year
(Non-occupational)
Maternity Six months Nine months from date of
leaving or upon completion of
pregnancy whichever occurs
first.
Sick or Injury Six months Until seniority acquired on
(Occupational) last day worked is equaled by
the period of time involved in
the disability.
Retirement Same day for AD&D only
Strike Suspended Suspended
* Following the applicable period of subsidized coverage by the Company,
employees may pick up Life Insurance premiums through the Company to continue
coverage for the duration of the Leave of Absence.
50
B. Employees who are receiving company-subsidized medical and dental
insurance coverage as specified above will be expected to pay the applicable
employee contribution to maintain that coverage. The employee contribution for
the first 30 days will be automatically deducted from pay upon return to work,
by doubling the employee contribution until full payment is made. After the
first month, employees who qualify for more than one month coverage may continue
medical and dental benefits each month by paying the applicable employee monthly
contribution in advance. Once Company-subsidized coverage is ended, employees
may continue coverage under COBRA.
C. Employees who request and receive severance pay in a lump sum as
outlined in this Agreement will thereafter have no further rights to
company-paid benefit continuation as described in this Article, but may continue
coverage under COBRA as outlined in Paragraph 5 below.
D. Employees who are recalled from layoff and are subsequently laid off
again within one month of the recall date, will not be eligible for insurance
continuation as described above, but rather, all insurance will be terminated as
of the last day of work.
E. In no event will Company-paid insurance coverage continue for longer
than the initial six-month period if an employee on the layoff list refuses
recall or is recalled but fails the job to which he is called.
5. Insurance Coverage - Surviving Dependents
The Company will maintain HMO (or equivalent) and Prescription Drug
coverage for surviving spouses of deceased retirees for a period of six months
from the death of the retiree. Current surviving spouses of deceased retirees of
record on December 1, 1994, will retain their
51
entitlement to six years' coverage as described in the prior Agreement. The
Company will also maintain HMO (or equivalent) and Prescription Drug coverage
for surviving spouses and eligible dependent children of deceased seniority
employees for a period of six months from the death of the employee.
ARTICLE 29
WAIVER OF ANY CLAUSE
A waiver of any clause in this contract does not mean a permanent waiver.
ARTICLE 30
NO STRIKE-NO LOCKOUT
The Company agrees that there shall be no lockout, and the Union agrees
that there shall be no strike, walk-out, slow-down, stoppage of or other
interference with work, during the term of this Agreement.
ARTICLE 31
DURATION OF AGREEMENT
This Agreement shall remain in full force and effect until midnight, May
31, 1999, and thereafter shall continue from year to year until either party
gives the other ninety (90) days prior written notice of a desire to change,
modify or terminate same. If neither party gives notice to terminate this
Agreement, but one or both of the parties gives notice as aforesaid of an
intention to change or modify any of the terms or provisions of this Agreement,
then within ten (10) days after such notice or not less than thirty (30) days
prior to the expiration of this Agreement, representatives of the Company, and
the Union shall meet to discuss, negotiate, and, if possible, agree upon such
changes. In the event
52
such Agreement continue beyond the expiration date of this Agreement, then the
terms and conditions of this Agreement, shall remain in full force and effect
until such time as said negotiations have terminated, either by reason of the
inability of the parties to finally conclude a new Agreement, or because a new
Agreement between the parties has been concluded.
This Agreement shall be binding on the parties hereto, their executors,
administrators, and successors.
IN WITNESS WHEREOF, the duly chosen representatives of the parties hereto
affix their hands and seals this 4th day of April, 1997.
FOR THE UNION: FOR THE COMPANY:
// Xxxxxxx Xxxx // // Xxxxxx Xxxxxxx //
// Xxxxxx Xxxx // // Xxxxx Xxxxxxx //
// Xxxxxxx Large // // Xxxxxxx Xxxxxxxx //
// Xxxxxxx Xxxxxx //
// Xxxxxxx Xxxx //
// Xxxxxx Xxxxxx III //
53
Appendix A
Pay for Knowledge and Skills
PRODUCTION JOBS
LEVEL TRAINING PERIOD PAY RATE
(eff. 12/1/96)
Advanced $ 14.50
Intermediate 12 months $ 13.25
Core 12 months $ 12.00
Basic 12 months $ 10.50
Starting Rate 12 months $ 9.00
Hiring Rate 2 months $ 7.50
SKILLED TRADES JOBS
LEVEL TRAINING PERIOD PAY RATE
(eff. 12/1/96)
Advanced $ 16.50
Intermediate 12 months $ 15.37
Core 12 months $ 14.00
Basic 12 months $ 13.00
Starting Rate 12 months $ 12.00
Hiring Rate 2 months $ 10.00
INDEX
ARTICLE PAGE
1 Parties to the Agreement 3
2 Philosophy Statement 3
3 Union Recognition 4
4 Union Security and Check-off 5
5 Non-Discrimination 5
6 Structure and Decision-Making Process 6
7 Work Performed Outside the Bargaining Unit 10
8 Training 11
9 Probation Period 13
10 Seniority 14
11 Layoffs and Recall to Work 15
12 Open Jobs 17
13 Severance Pay 19
14 Leave of Absence 21
15 Overtime 25
16 Wages and Other Compensation 26
17 New Products 29
18 Shift Premium 30
19 Paid Break and Lunch Periods 31
20 Reporting Pay 32
21 Temporary Transfers 32
22 Vacations 32
23 Holidays 37
24 Safety and Health 38
25 Union Facilities 42
26 Dispute Resolution 42
27 Living Agreement 44
28 Insurance 44
29 Waiver of Any Clause 51
30 No Strike-No Lockout 51
31 Duration of Agreement 52
APPENDIX A
