EXHIBIT 10.1
AGREEMENT
BETWEEN
THE XXXXXXX MANUFACTURING COMPANY, LLC
AND
INTERNATIONAL UNION OF ELECTRONIC, ELECTRICAL,
SALARIED, MACHINE & FURNITURE WORKERS AND
COMMUNICATION WORKERS OF
AMERICA, AFL-CIO
LOCAL 89262 FW
APRIL 1, 2004
TO
APRIL 1, 2006
TABLE OF CONTENTS
ARTICLE I RECOGNITION AND UNION SECURITY..................................................................1
1.01 Purpose.........................................................................................1
1.02 Exclusive Bargaining Representative.............................................................1
1.03 UNION Security..................................................................................2
1.04 UNION Representative Seniority..................................................................3
1.05 Check Off.......................................................................................3
ARTICLE II GRIEVANCE AND ARBITRATION PROCEDURE.............................................................3
2.01 ................................................................................................3
2.02 ................................................................................................6
ARTICLE III GRIEVANCE COMMITTEE....................................................................7
3.01 ................................................................................................7
ARTICLE IV HOURS OF WORK AND PREMIUM PAY..........................................................8
4.01 Working Hours...................................................................................8
4.02 Lunch Periods...................................................................................8
4.03 Rest Periods....................................................................................9
4.04 Overtime........................................................................................9
ARTICLE V WAGES.................................................................................11
5.01 Hiring Rate and Progression....................................................................11
5.02 Wage Rates.....................................................................................12
5.03 Mechanics......................................................................................13
5.04 Inventory......................................................................................16
5.05 Shift Premium..................................................................................16
5.06 Report-In-Pay..................................................................................16
5.07 Cross Training Incentive.......................................................................16
5.08 Computation of Quarterly Average Hourly Earnings Rates.........................................17
5.09 ...............................................................................................18
5.10 ...............................................................................................18
5.11 Payment During Treatment of Work Related Accident..............................................19
ARTICLE VI STANDARD ALLOWED HOURS
(S.A.H.) SETTING FORMULA..............................................................20
6.01 ...............................................................................................20
6.02 Productivity...................................................................................21
6.03 ...............................................................................................22
ARTICLE VII SENIORITY......................................................................................23
7.01 Purpose........................................................................................23
7.02 Seniority......................................................................................23
7.03 Establishment of New Classification............................................................24
7.04 Associate Training.............................................................................25
7.05 Lay Offs.......................................................................................25
7.06 Furlough.......................................................................................27
7.07 Reduction of Hours.............................................................................28
7.08 Open Positions.................................................................................30
7.09 Personnel Action...............................................................................31
7.10 Classification Phase Out.......................................................................31
ARTICLE VIII ...............................................................................................32
8.01 Leave of Absence...............................................................................32
8.02 Jury Duty......................................................................................32
ARTICLE IX PAID VACATIONS........................................................................33
9.01 ...............................................................................................33
9.02 ...............................................................................................33
9.03 ...............................................................................................34
9.04 ...............................................................................................34
9.05 ...............................................................................................35
9.06 ...............................................................................................36
9.07 ...............................................................................................36
9.08 ...............................................................................................36
9.09 ...............................................................................................36
ARTICLE X PAID HOLIDAYS.........................................................................36
10.01 ...............................................................................................36
ARTICLE XI MILITARY CLAUSE.......................................................................38
11.01 ...............................................................................................38
ARTICLE XII INSURANCE PROGRAM.....................................................................38
12.01...................................................................................................38
ARTICLE XIII PENSION...............................................................................39
13.01 ...............................................................................................39
ARTICLE XIV MANAGEMENT RIGHTS CLAUSE..............................................................40
14.01 ...............................................................................................40
ARTICLE XV NO STRIKE -- NO LOCKOUT.............................................................41
ii
15.01 ...............................................................................................41
ARTICLE XVI BULLETIN BOARDS................................................................................43
16.01 ...............................................................................................43
ARTICLE XVII SAFETY AND SANITATION..........................................................................44
17.01 ...............................................................................................44
ARTICLE XVIII LEGAL CONFORMITY...............................................................................44
18.01 ...............................................................................................44
18.02 ...............................................................................................44
ARTICLE XIX MISCELLANEOUS..................................................................................45
19.01 Sick Days......................................................................................45
ARTICLE XX COMPLETE AGREEMENT
20.01 ..................................................................................................45
ARTICLE XXI TERMINATION, MODIFICATION AND RENEWAL..........................................................46
21.01 ...............................................................................................46
21.02 ...............................................................................................46
iii
This agreement, entered into this 1st day of April 2004, by and between
THE XXXXXXX MANUFACTURING COMPANY, LLC, a Delaware corporation, for and on
behalf of its plant in San Leandro, California, hereinafter referred to as the
COMPANY,
and
The INTERNATIONAL UNION OF ELECTRONIC, ELECTRICAL, SALARIED, MACHINE &
FURNITURE WORKERS AND COMMUNICATION WORKERS OF AMERICA, A.F.L.-C.I.O, on behalf
of the COMPANY's associates in the San Leandro facility, hereinafter referred to
as the UNION
WITNESSETH
NOW, THEREFORE, in consideration of the promises of mutual covenants
and agreements of the parties hereinafter set forth, the parties do hereby agree
as follows:
ARTICLE I RECOGNITION AND UNION SECURITY
1.01 Purpose The intent and purpose of the parties is to promote efficiency,
improve productivity and provide for the safety, health and well being of our
associates through a mutually beneficial working relationship. To that end the
parties express their intention to fully cooperate in fulfilling their mutual
obligations in this agreement covering wages, hours of work and other terms and
conditions of employment applicable to the associates covered by this collective
bargaining agreement.
A. The Company and the Union agree that neither party will
intentionally misuse the intent or Articles of this agreement
1.02 Exclusive Bargaining Representative
The COMPANY recognizes the UNION as the exclusive bargaining representative for
all production and maintenance associates working at its San Leandro, California
plant, covered by this agreement for the purpose of collective bargaining,
excluding executives, sales associates,
office associates and supervisors, In as much as practical in running the
business of the company, Supervisors will not perform any production or
maintenance work. However, this provision shall not be construed in such fashion
as to deny any associate the right to instruct, experiment, check or test
equipment to determine fitness or do critically necessary work when required to
meet customer demands limited to no more than sixty (60) minutes per day. This
clause applies to normal production work and does not apply to product
development, engineering projects or other activities associated with business
development.
1.03 UNION Security
A. It is further understood and agreed that all such associates
shall, after 30 days, become members of the UNION and, as a
condition of continued employment, maintain such membership in
good standing for the life of this agreement.
B. The Company shall have the sole and exclusive right to hire
its associates. The Company will determine the minimum
qualifications necessary to perform any function including but
not limited to education, training, experience and ability.
C. New associates shall be considered probationary associates
until they have completed the probationary period of sixty
(60) days. The parties agree that the Company may extend the
probationary period for no more than (30) additional days for
proper reason given to the union in writing. During the
probationary period, or any extension thereof, an associate
may be discharged at the sole discretion of the COMPANY with
or without cause. Such discharged associates shall not have
recourse through the grievance and arbitration provision of
this agreement.
D. The COMPANY may request assistance from the UNION in
recruiting Associates whenever needed.
1.04 UNION Representative Seniority
Any associate leaving their employment to accept elective or appointive
positions with the UNION lasting longer than twenty four (24), consecutive
weeks, other than elected offices in the local union, will continue to accrue
seniority and benefits as an associate of the COMPANY for
2
up to three (3) years. Should the associate not return after three (3) years
their seniority and employment with the COMPANY will terminate effective the
third anniversary of the date the associate left the company for the UNION
position.
1.05 Check Off
A. The COMPANY agrees to deduct (upon receipt of a properly
executed written authorization for such deductions) the
initiation fees of new members, the regular monthly dues of
all such members, and any assessment authorized by the UNION
in accordance with its by-laws. Such deductions shall be made
the first payday of each month and shall be remitted to the
Financial Secretary of the UNION not later than the fifteenth
(15th) day of the current month. In the event that an
individual is off and dues are not deducted for the month, the
COMPANY agrees upon written authorization from the member to
deduct the monthly dues the second month.
The COMPANY agrees to deduct (upon receipt of a properly
executed written authorization for such deduction) from the
associate's salary an annual deduction for C.O.P.E. The
COMPANY shall remit to the Financial Secretary of the UNION
within fifteen (15) days all monies collected.
ARTICLE II GRIEVANCE AND ARBITRATION PROCEDURE
2.01
A. Grievance Procedure
The Company shall have the right to discharge or assess
disciplinary action for just cause. It is the intent of the
parties to this Agreement that the grievance procedure within
the agreement will serve as a means for the prompt disposition
and amicable settlement of such grievances as may arise
between the Company and its associates or the Company and the
Union. The COMPANY recognizes that UNION stewards will conduct
investigations and have discussions concerning and
investigations of grievances and will not interfere by
unreasonably denying permission for such conduct
Article XV, Section A additionally provides for Expedited
Arbitration designed to ensure speedy resolution of certain
grievances, including discharge and suspension of associates.
3
B. Should any grievance arise between the Company and any of the
Company's associates involving work assignment, the associate
involved will continue to perform the assignment in question
while the grievance is being processed unless it will endanger
their life, limb, safety or that of other associates.
An associate shall have the right to have a UNION
representative present at a meeting with the COMPANY when the
associate reasonably believes such a meeting may result in
disciplinary action.
C. The UNION, as the exclusive bargaining representative of
associates in the bargaining unit, has the sole and exclusive
right to file, pursue, withdraw or resolve grievances at any
step of the procedure on behalf of any associate.
Verbal Discussions
1. The associate and/or the UNION xxxxxxx, if requested
by the associate, may discuss the matter with the
associate's immediate supervisor in an effort to
resolve the issue.
2. The parties may resolve at any step, including the
verbal discussion, of this procedure by mutual
written agreement to include retroactivity, if
applicable.
Step 1 If the grievance is not settled in verbal discussion described
above, the grievance shall be reduced to writing on forms to be made
available for such purpose by the union, with each form signed and
dated by the aggrieved associate and his designated Union
representative. The designated Union representative shall present the
grievance form to the associate's supervisor within five (5) working
days from the date of the occurrence or knowledge of the occurrence
giving rise to the grievance. The grievance shall specify the specific
incident involved, the date of the incident, any and all witnesses to
the incident, the facts or alleged facts relied upon to support the
allegation of the employee, the specific section(s) of this Agreement
allegedly violated and the specific remedy requested by the associate.
The supervisor has five (5) workdays to answer.
Step 2. If the answer given to the grievance in Step 1 is not
acceptable the aggrieved associate and their union representative will
specify the reasons for rejecting the answer and present the grievance
form to the Operations Manager and/or the Human Resource Manager within
five (5) work days from receipt of the Step 1 answer. The Operations
Manager and/or Human Resource Manager will within five (5) days meet
and discuss the matter with the associate and a Union representative.
The Operations Manager and/or Human Resource Manager shall then have
five (5) work days to answer the grievance from the date of this
meeting.
Step 3. If a resolution to the grievance is not reached in Step 2, the
aggrieved associate or the union representative will specify the
reasons for rejecting the answer and the grievance will be referred to
the Company's Director of Human Resources Employee & Labor Relations,
or their designated representative within five (5) working days from
the date of receipt of the answer from Step 2. The Secretary/Treasurer
of the local Union and the Company's Director or their designees
4
will meet on the grievance within a reasonable time (not to
exceed thirty (30) calendar days). A written answer by the
Company to the grievance considered at such meeting shall be
given to the Union within five (5) working days after the
meeting.
D. If an associate is needed as a witness in the process of Step
1, 2 or 3 by the Union, it is understood that any pay lost by
the witness or others resulting from their absence from work
will be reimbursed by the Union.
E. Resolution by Default. For discipline involving suspension
and/or discharge failure on the part of either party to
respond to any step within the grievance procedure within the
time limits established by this article will automatically
elevate the grievance to the next step. The time limits set
out in this Article, are understood to be work days exclusive
of Saturdays, Sundays and holidays recognized by this
Agreement. For all other grievances, failure on the part of
either party to respond to any step within the grievance
procedure within the time limits established by ths Article
will resolve the grievance against the party failing to
respond. Time limits may be extended by mutual written
agreement.
F. Arbitration of Disputes. If the grievance is subject to
arbitration as defined above, and all conditions above have
been satisfied, including the applicable time limits, then the
Union on behalf of the aggrieved associate or aggrieved
associates may, within ten (10) calendar days of the Company's
answer in Step 3, file a written request to the Operations
Manager or his designee that the grievance be submitted to
arbitration for determination pursuant to this Article.
G. Selection of Arbitrators. Within ten (10) calendar days after
the Union files its written request for arbitration the Union
may write either the Federal Mediation and Conciliation
Service or the American Arbitration Association to request
that it submit a panel of seven (7) arbitrators. The Union and
the Company shall alternately strike starting with the Company
and each party shall then alternately strike one name until
only one name remains who shall be designated as the impartial
arbitrator. Either party reserves the right to reject the
entire panel prior to any striking of arbitrators and to
request one additional panel of arbitrators per grievance.
H. Authority of Arbitrator. In interpreting and applying the
provisions of this Agreement and in making findings of fact,
the arbitrator's interpretation and application must be in
accord with the intent and letter of this Agreement and any
amendments thereto. No arbitrator shall have the jurisdiction
or authority to add to, take from, nullify, or modify any of
the terms of this Agreement or any amendments which may be
applicable. The arbitrator shall be bound by the facts and
evidence submitted to him/her in the hearing and may not go
beyond the terms of this Agreement in rendering their
decision. The decision of the arbitrator shall be in writing
and the decision shall be final and binding upon the parties.
I. All costs for the hearing and service of the arbitrator shall
be shared equally by the parties. Each party will bear the
expense of its representatives, witnesses and for the
presentation of its own case.
5
2.02 Grievance Procedure for Time Study disputes:
A. In the event the Union and the Company are unable to agree to
a base rate on a new classification the dispute may be
appealed to arbitration for determination by a qualified time
study arbitrator.
B. In the event that a time study dispute is not resolved at the
Operations Manager's level of the present grievance procedure,
the UNION shall have the right to retain, at UNION expense, an
outside time study engineer, whose credentials will be
approved by the COMPANY. Once the COMPANY has agreed upon the
credentials of the time study engineer hired by the UNION,
that person shall be permitted by the COMPANY to view or study
the operation in dispute for the purpose of advising the UNION
on the disputed standards. In order to facilitate appropriate
arrangements, the UNION shall notify the COMPANY of the date
on which its Time Study Engineer will appear at least two (2)
weeks in advance.
C. It is understood by the parties that following the receipt of
the report by the UNION from its Engineer; The UNION will
provide a copy of the report for the COMPANY'S Industrial
engineer to review. The UNION may request through local
management to meet with the COMPANY industrial enginer. The
UNION may then confer with COMPANY representatives, other than
the local management through the offices of the COMPANYS
Director of Human Resources Employee & Labor Relations, for
the purpose of attempting resolution at the pre-arbitration
level. If the time study dispute is not resolved, then the
matter may be appealed to an Arbitrator who must be a
qualified Time Study Engineer to be selected by mutual
Agreement.
D. Appeals under the Standard Allowed Hour Formula if warranted,
shall be carried to arbitration under the above-described
procedure; however, in this instance, the Arbitrator must be a
qualified time study engineer who shall be permitted by the
COMPANY to view or study the operation in question with the
COMPANY Industrial engineer, if necessary prior to the
arbitration hearing.
E. All steps of the Grievance and Arbitration Procedure must be
initiated (including selection of Arbitrator) within sixty
(60) days of the date the grievance is filed, or the grievance
will be considered resolved with the COMPANY's last answer.
F. The COMPANY has the right to file grievances against the UNION
following the procedures outlined in Article II, Section 2.01.
ARTICLE III GRIEVANCE COMMITTEE
3.01
A. The Grievance Committee for the plant shall consist of no more
than three associates appointed by the UNION.
6
1. Wednesday afternoons starting at 2:45 p.m. or any
other mutually agreeable time determined by the
COMPANY shall be designated as the time for the
regular grievance meetings with COMPANY
representatives. The COMPANY will not pay associates
for time spent in this meeting. If overtime is
scheduled and the meeting is concluded prior to the
scheduled overtime, the associates will return to
their jobs and finish the remainder of scheduled
overtime if required by the COMPANY.
2. If the above meeting is scheduled by the COMPANY
prior to 2:45 p.m., the associates will be paid at
average rate for the time spent in the meeting prior
to 2:45 p.m.
B. Any Union Xxxxxxx shall have the right to visit departments
other than their own for a maximum of twenty (20) minutes a
day after requesting and receiving permission from their
department supervisor. The visits shall only be for the
purpose of investigating or discussing legitimate grievances.
Any UNION official shall have the right to visit the plant at
all reasonable times and shall notify the COMPANY prior to
arriving. A representative of the COMPANY may accompany the
UNION official if the COMPANY so desires.
ARTICLE IV HOURS OF WORK AND PREMIUM PAY
4.01 Working Hours
A. The eight (8) hour day and the forty (40) hour week, Monday to
Friday inclusive, shall be established at the plant.
B. Normal first shift schedule will be from 6:15 a.m. to 2:45
p.m.
Normal second shift schedule will be from 2:45 p.m. to 11:15
p.m.
Normal third shift schedule will be from 10:15 p.m. to 6:15
a.m.
Associates may be required to start their normal shift up to
two (2) hours early.
7
C. These hours may be changed by mutual written Agreement between
the parties.
4.02 Lunch Periods
A. Lunch periods will be scheduled as follows:
1st Shift 11:00 a.m. to 11:30 a.m.
2nd Shift 7:45 p.m. to 8:15 p.m.
3rd Shift 2:15 a.m. to 2:45 a.m.
B. These hours may be changed by mutual written agreement.
Associates working not more than five hours (5) on any given
day will complete the day's work without a lunch period. The
meal period may be waived by mutual written consent of the
COMPANY and the UNION.
C. Flexible schedules for individuals or departments may be
established by the COMPANY based on production needs and by
mutual written agreement between the UNION and the COMPANY.
4.03 Rest Periods
A. There shall be a rest period of ten (10) minutes between the
second (2nd) and third (3rd) hours and the sixth (6th) and
seventh (7th) hours in each shift.
B. Associates working in excess of eight (8) hours on any given
shift shall be allowed an additional ten (10) minute rest
period.
C. The above rest periods may be changed by mutual written
agreement.
4.04 Overtime
A. 1. All work done on Saturday, up to eight (8) hours or
in excess of eight (8) hours in any one (1) day, and
in excess of forty (40) hours in any one week, shall
be paid at the rate of time- and-one-half (1-1/2).
8
2. Working hours will be based on an eight (8) hour time
period which is subject to starting up to 2 hours
prior to normal shift start times, as stated above.
3. Double time shall be paid for all hours over eight
(8) hours on Saturday, and for all work performed on
Sunday and Holidays.
B. Associates working in excess of ten (10) hours on one shift
shall be allowed twenty (20) minutes mealtime without
deduction in pay.
C. Associates required to work overtime will be so notified no
later than 1:15 pm on the working day before the day of
overtime except:
1. In cases of production emergency.
2. Quilt Machine Operators. Quilt Machine Operators
shall be notified in case of production emergency
before lunch on the day overtime is to occur. The
COMPANY shall first seek volunteers to work the
overtime. If there are not enough volunteers to
provide the necessary amount of work, associates
shall be required to work the overtime by rotating
the mandatory overtime, beginning with the least
senior qualified associates.
3. The Company will notify associates by 11:00 a.m. on
Friday if they are required to work on Saturday. If
asked after 11:00 a.m., it will be on a volunteer
basis.
D. The method for notifying associates of overtime hours will be
done in any of the following methods:
1. Designated COMPANY marquee
2. Verbal communication by a Supervisor or
Manager
1. If needed, associates will work ten (10) hours the
Friday before Labor Day holiday and eight hours at
double time on the Saturday before Labor Day holiday.
9
2. On all other Saturdays, except other contract holiday
weekends, only eight (8) hours will be mandatory even
if ten (10) hours are scheduled on the previous
Friday. Sunday and holiday work will not be
mandatory.
3. No overtime will be required the day before a
holiday.
4. An associate with a reasonable excuse for not working
on a particular Saturday, may have the Saturday off
with two (2) weeks advance written request to the
COMPANY provided that another associate is available
to perform the necessary work. It is agreed that no
more than two (2) associates per job classification
may exercise this option.
5. Rotation of overtime among qualified associates will
be discussed between the Shop Xxxxxxx and the
appropriate Supervisor prior to giving notice to the
affected associate.
6. Associates shall not be required to work more than
three (3) consecutive Saturdays. Associates may be
required to work all Saturdays during the month of
October.
7. If it is necessary to require an individual to start
early he/she will be selected on a voluntary basis.
If there are no volunteers, the least senior
associate will be assigned.
E. 1. If an associate is absent on any day, it is their
responsibility to call the designated number provided
by the COMPANY and determine their work hours for the
next scheduled work day. This includes Saturday work.
The COMPANY will not be liable for any lost pay as a
result of the associate not contacting the COMPANY
and the associate subjects themselves to any and all
impact under any applicable COMPANY policies.
10
ARTICLE V WAGES
5.01 Hiring Rate and Progression
Regardless of the job classification:
A. The hiring rate for new associates will be:
4/1/04 4/1/05
------ ------
$9.00 $9.00
B. Upon qualification on job for two (2) consecutive weeks, new
hires will be eligible for Pay Plus Bonus. Under no
circumstances is this section meant to shorten the established
probationary period for new hires.
5.02 Wage Rates
A. Job levels and pay ranges are as follows:
JOB LEVEL LISTING
PAY PLUS BONUS PLAN
XXXXX 0 XXXXX 0
------- -------
Panel Quilter #120 Bechik Operator #105
Cover Cage #120 Packer/Inspector #130
Closer #130 Frame Builder #165
Coiler #225 HMB Handler/Hogring #225
Coordinator Various Janitor #490
Handler Various
XXXXX 0 XXXXX 0
------- -------
Border Overlock #105 New Hires (see 5.01A)
Border Quilt #105 Light Duty (see 5.11)
Box Spring Sew #115
Flat Cut #115
Panel Overlock #120
11
Hog Ring #130 BASE RATE PAY RANGES
--------------------
Box Spring Xxxxxxxxxx #000 Xxxxx 0 $10.13 -- $13.67
Xxx-Xxx #000 Xxxxx 0 $ 9.11 -- $12.66
HMB Assembly #225 Level 3 $ 9.00 -- $10.13
Receiving #410*
Warehouse/Loader #500
B. Inventory Rate will be the Associates current base rate.
C. All associates will receive the following increases to their
base rate
4/1/04 4/1/05
------ ------
$0.10 $0.15
D. The COMPANY will use Performance Evaluations for the purpose
of reviewing new associates' progress or an existing associate
who is transferred to a new position. At any time the COMPANY
may perform a re-evaluation of an associates base rate An
associate has the right to submit a request for a performance
re-evaluation twice in a 12 month period.
E. The COMPANY may choose to perform more than two performance
re-evaluations for an associate in a 12 month period, but
reserves the right to reject re-evaluation requests that have
been submitted more than two times by the same associate in a
12 month period.
F. Associates receiving a pay rate adjustment as stated in 5.10
will be evaluated no later than 60 days, or sooner if
requested, for any rate increase. The results of the
evaluation may result in a pay increase, but will in no way
replace or reduce the negotiated annual pay increase.
G. All associates will be assigned a primary job function,
individual position and their corresponding base rate.
12
5.03 Mechanics
A. The COMPANY and the UNION agree to the establishment of four
mechanic job classifications:
1. Master Journeyman: Must possess all the skills and
knowledge of a journeyman, plus additional expertise
in electrical, mechanical, ability to train, lead
others, and communicate with management and outside
sources.
2. Journeyman
3. Technical
4. Entry Level
Each job classification will have its own wage rate. The
COMPANY will determine the mechanic job classification an
individual will be placed in and will meet and confer with the
union prior to the individual being placed in the position.
All associates presently holding a maintenance mechanic job
will receive their current rate of pay or their new job
classification rate which ever is higher.
The COMPANY agrees to provide maintenance mechanics a tuition
reimbursement plan of one hundred percent (100%) for
furthering their skills provided that the classes taken are
relevant to the mechanics current job function. The COMPANY
must approve the curriculum of the class and the mechanics
time off to attend the class. The COMPANY will pay the tuition
cost upon successful completion of the studies. The cost of
books, equipment and tools will be the responsibility of the
individual.
B. Each job classification will have its own wage rate as
defined in the table below. Journeymen and/or Master
Journeyman may receive performance reviews, which may enable
them to qualify for a higher-level skill. Should they qualify
for and be moved to a higher-level skill they will be paid in
accordance with the table of established rates below.
13
C. The wage rates for the mechanics job classifications are:
JOB CLASSIFICATIONS ANNIVERSARY DATES
------------------------------------
4/1/04 4/1/05
Entry Level 16.75 16.90
After completion of 6 months 16.96 17.11
After completion of 12 months 17.16 17.31
After completion of 18 months 17.37 17.52
After completion of 24 months 17.57 17.72
After completion of 30 months 17.78 17.93
After completion of 36 months 17.98 18.13
After completion of 42 months 18.199 18.34
After completion of 48 months 18.399 18.54
Technical 18.41 18.56
Fifth Year 18.83 18.98
Journeyman 19.25 19.40
To be classified under the technical job classification an individual
must possess (one of the following):
* twenty hours of college courses in machine shop technology,
electrician, electronics, welding; or any other trade
applicable to the COMPANY work environment.
* or a certified job skill applicable to the COMPANY work
environment.
* or 4 years of COMPANY approved work experience.
D. Awarding of Maintenance Mechanic jobs through the Job Bidding
Procedure will be limited to associates who pass proficiency
examinations which show the necessary aptitude and skills
needed as determined by the COMPANY.
14
5.04 Inventory
During physical inventory, the COMPANY will select, by seniority, the most
qualified associate to perform inventory duties. If asked, senior associates
must participate in the physical inventory unless they have previously scheduled
time off that falls under the governance of the COMPANY attendance policy (i.e.,
vacation). Associates asked to participate in the physical inventory will
receive their normal base rate. Working hours for the physical inventory will be
governed by Article IV of this contract.
5.05 Shift Premium
Twenty cents (20cents) per hour shall be paid for second shift work. Twenty
cents (20cents) per hour shall be paid for third shift. The third shift shall
receive a paid one-half (1/2) hour lunch.
5.06 Report-In-Pay
A. Associates who report for work, and who have not been
otherwise instructed, or a reasonable attempt made to contact,
on the previous day, shall be paid for a minimum of four (4)
hours for such day.
B. The COMPANY will not be responsible for wage payments for the
time not worked when production is interrupted because of
unforeseen emergencies arising from conditions outside of the
plant. In the event of such emergency, the COMPANY and the
UNION representatives shall meet immediately to determine any
necessary change of work schedule.
5.07 Cross-Training Incentive
Associates will be given the opportunity to cross-train in other skill areas.
The COMPANY reserves the right to cross-train any associate, in any skill area,
based on customer requirements. An associate who refuses the opportunity to be
cross-trained will not forego their future right to be cross-trained in any
other skill area.
Once an associate has refused the opportunity to be cross-trained, it is at the
discretion of the COMPANY as to whether or not to allow that associate to be
reconsidered for cross training in the same skill area. Any associate can make a
request to their immediate Supervisor, the
15
Production Manager, Operations Manager, or Human Resources Manager to be
cross-trained in a specific skill area in order to broaden their skills.
Cross-training schedules for associates will be determined by the COMPANY.
Incentive increases for associates who have successfully completed cross
training are as follows:
Direct functions: $.20 per hour per additional skill
Indirect functions: $.10 per hour per additional skill
Successful completion of cross training in a particular skill, for the purposes
of this agreement, is defined as being able to effectively maintain the required
productivity level per the Company's published productivity rates.
Direct functions, for the purposes of this agreement, are those functions that
are measured by COMPANY published productivity rates. Indirect functions, for
the purposes of this agreement, are those functions, which are not measured by
COMPANY, published productivity rates. If someone should become disqualified
from a skill by virtue of the COMPANY productivity requirements , their salary
will be adjusted down according to the scale shown above.
5.08 Computation of Quarterly Average Hourly Earnings Rates
A. Average quarterly hourly earnings rates shall be established
on a calendar quarter basis and shall change and become
effective one month after the close of each calendar quarter.
Such average will apply in all cases where quarterly work
average hourly earnings rates are referred to in this
Agreement. The four calendar quarters of the year shall be as
follows:
1st Quarter January, February, March
2nd Quarter April, May, June
3rd Quarter July, August, September
4th Quarter October, November, December
16
B. Quarterly work average hourly earnings rates will not be
established for associates who have worked less than eighty
(80) hours in the preceding quarter except that associates
transferred during the last eighty (80) hours of any quarter
shall receive a quarterly average rating. If an associate has
been legitimately away from work because of illness, accident,
or on a leave of absence, and has not been able to establish
an quarterly average hourly earnings rate, it is agreed that
their average hourly earnings rate for the quarter preceding
their absence will be carried forward until such time as
he/she is able to return to work.
C. Quarterly averages will be computed by using the average bonus
for the previous quarter and applying it to the base rate.
D. When an associate works without published quarterly average
hourly rate is assigned to a job without a work rate he/she
will be paid at the average of their hourly earnings rate for
the preceding four (4) weeks.
5.09 Associates shall not suffer any reduction in such wages or of benefits
specifically identified in this contract during the term of this
contract. The COMPANY will not honor any side agreement on wages or
benefits unless they are signed by the Sr. VP Human Resources and
attached to this contract.
5.10 In no case shall any associate be paid less than their established base
rate except when one or more of the following occur:
3. Associates bidding on or reclassified to another job
within the same level;
4. Associates bidding on or reclassified to a lower
level job;
5. An associate is disqualified or waives their right to
receive additional skill pay.
When making wage rate adjustments the COMPANY will look at previous
experience in the new job, their current base rate, and new job salary
range. All adjustments to salary will be documented and reviewed with
the associate before changes are enacted.
17
5.11 Payment During Treatment of Work Related Accident
A. In the event an associate suffers a work related injury and is
referred to the medical office, outside clinic, outside
hospital, or outside doctor for treatment during working
hours, the COMPANY shall pay for the time spent in treatment
of such injury at their base rate only. If the treating agency
certifies that such injured associate is unable to continue
work because of such injury the COMPANY will pay for the
balance of the eight (8) hours. Wage loss will be reported to
the COMPANY's Workers' Compensation carrier for possible
additional payment. Light duty will be paid at base rate only.
B. If the treating agency requests a subsequent visit for
treatment of this injury during working hours, and provided
the associate has returned to work, the COMPANY will pay for
the time spent in this treatment at his or her base rate only.
1. On the above date of this scheduled visit the
associate must notify the Supervisor at the beginning
of their shift as to the time the appointment is
scheduled.
2. The associate will be clocked out in sufficient time
to make the scheduled appointment.
3. When the associate leaves the treating agency's
office, he/she will receive a release form that will
show the completion time of the appointment.
4. Upon returning to their department the associate will
present this form to their Supervisor and will be
clocked back in for work.
C. None of the sections of this paragraph are to be so construed
that benefits will incur in addition to or pyramid on
disability payments under Workers' Compensation Law.
ARTICLE VI STANDARD ALLOWED HOURS (S.A.H.) SETTING FORMULA
6.01 When it becomes necessary to establish a standard on a new job or
variation of an old operation, the following procedure shall be followed:
18
A. If possible, normal production will be determined from
standard task times, if available, or a time study analysis
shall be made of the operation for the purpose of determining
the normal hourly or daily production.
1. A UNION representative may be present when the time
study of an operation is being made.
2. Prior notice of the time study of an operation shall
be given to the interested parties.
3. A time study shall not be made until such job is
properly set up and functioning.
B. A normal hour or daily production shall be defined as that
amount of production attained by a normal proficient operator
working at a normal pace which may be consistently followed
throughout the working period.
C. A written description of the operation, together with the time
study results and S.A.H., will then be submitted by the
COMPANY to the departmental Shop Xxxxxxx, the Operator or
Operators, and Bargaining Committee.
D. Such Standard Allowed Hours shall become effective immediately
upon submission as provided above in Paragraph (A) and (C) of
this Section.
E. Complaints arising as to the accuracy of any time studies
shall be handled as grievances in accordance with Article II
of this Agreement.
1. Complaints arising from the procedure must be
submitted within sixty (60) days on continuous
operations, or within thirty (30) production days on
broken or short run operations.
2. No grievance on a time study will be recognized until
the operation has been performed for forty (40) hours
on continuous operations or eight (8) hours on short
or intermittent runs.
19
6.02 Productivity
A. All associates who have completed the established training
period are expected to reach and maintain reasonable
productivity as established by the COMPANY for the associate's
respective job classification.
B. Associates who do not meet the reasonable productivity
requirements that have been established by the COMPANY shall
be subject to the following corrective disciplinary
procedures:
1. Verbal Reprimand
2. Written Reprimand
3. Final Written Warning
4. Discharge
C. Base rate is intended as pay for one hundred percent (100%)
effort.
1. If after investigation the COMPANY can show, through
a demonstration by Supervisors, Xxxxxxx Institute for
Technology and Education (S.I.T.E.) associates, or
operators from a sister plant that the COMPANY
standard is achievable the COMPANY will have proved
its case against the associate charged with not
meeting reasonable productivity requirements.
2. Prior to the time the demonstration takes place, the
UNION shall be afforded an opportunity to secure the
services of a qualified time study engineer with the
necessary background to check the productivity effort
of the operator to ensure the fairness of their
performance evaluation. The time study engineer
secured by the UNION will need to be approved by the
COMPANY before their services are utilized.
Associates who fail to meet the established base rate
may be removed from the operation at the discretion
of the COMPANY.
a. Such associates may be placed in a job at
which they can perform at an efficient level
consistent with Section 6.03 below.
20
6.03
A. Individuals who consistently fail to produce at one hundred
percent (100%) of the established base rate or more, within
the period of time provided by the COMPANY's Learning Curves
or thereafter, shall be removed from the job on which they are
failing to remain qualified. Such associates may then be
assigned to a job requiring less dexterity or skill so that
they may have an opportunity of being more successful in the
future assignments.
1. In making such assignments, the COMPANY will select
the position to which the removed associate will be
transferred. consistent with all applicable
provisions of this agreement and after meeting and
conferring with a UNION representative.
a. If no such job is available, the associate
shall be placed on layoff until an opening
exists.
2. Associates with more than one (1) year but less than
five (5) years of service shall be limited to one (1)
such transfer.
3. Associates with more than five (5) but less than ten
(10) years of service shall be limited to two (2)
such transfers.
4. Associates with more than ten (10) years of service
shall be limited to three (3) such transfers.
5. Subsequent disqualifications will subject the
associate involved to termination of employment.
21
ARTICLE VII SENIORITY
7.01 Purpose
This seniority provision has been developed to provide an equitable means of
enhancing the "Make To Order System," providing the COMPANY with trained
associates that are responsive to production schedule variations and to provide
job security for senior associates.
7.02 Seniority
A. Definition: An associate's unbroken service with the COMPANY
in years, months, and days, since the associate's most recent
date of hire. Seniority shall be established on a plant basis,
and separately, within Core and Skill Group areas.
B. If two associates have the same amount of unbroken service,
the associate with the earliest hire date, will have the
greatest seniority.
C. Seniority List: The COMPANY will furnish the UNION with a
seniority list monthly.
D. Seniority shall govern in the following areas:
1. Training (by department and by shift)
2. Vacations
3. Overtime, where the COMPANY has made a reasonable
attempt to contact qualified associates 4. Lay-offs
5. Job Bidding
6. Recall
7. Job Shift
8. Temporary Transfer
9. Reduction of Hours
22
10. Furlough
E. If there is a conflict in any of these areas, the COMPANY and
UNION must meet to seek a solution of the conflict.
7.03 Establishment of New Classification
A. In the event it becomes necessary to establish a new
classification for positions covered under this agreement
including part-time and/or temporary positions, the COMPANY
and the UNION shall meet for the purpose of discussing the
rate for such classification.
The COMPANY and the UNION, in an attempt to reach an
understanding shall take into consideration similar
classifications in the plant previously or presently in
existence. The COMPANY may also use a classification that is
currently being used by other XXXXXXX facilities.
The COMPANY will temporarily assign an associate at their base
rate, plus bonus until such time as a rate is developed. When
the rate of the classification is agreed upon or resolved as
provided above, the job will be filled in accordance with the
contract.
If the parties cannot agree using the above procedure, the
grievance and arbitration procedure in the contract will be
followed.
7.05 Associate Training
A. It is in the interest of the parties to provide training
opportunities to the most senior associates. In accordance
with Article VII, Section 7.02, D, 1.
23
In the event the most senior candidate or candidates refuse
selection they must sign a formal waiver form, indicating
such, whereby the COMPANY has no further obligation to again
offer the same job opportunity to the refusing candidates.
It is the intent of both the COMPANY and the UNION to train
associates so as not only to provide a bank of substitutes
when needed but also a bank of critical skills when the
production schedule increases.
B. Associates trained shall be selected by the COMPANY based on
its business need. Training shall be completed within six (6)
moths after selection. Training on individual jobs will be
consistent with established learning curves.
C. Once an employee has started training he/she shall not be laid
off due to the incomplete training, if the completion of that
training would allow him/her to displace a less senior
employee.
D. Cross training will be done as needed as time permits during
slow periods.
7.06 Lay Offs
A. In the event of a reduction in the work force, associates
shall be laid off by classification. Associates with the least
seniority within a classification shall be laid off first
provided that the remaining associates possess the job
knowledge and skills to perform the work required within the
classification. Senior associates not possessing the required
knowledge of the job function shall be subject to lay off.
B. Employees being laid off shall be notified two (2) working
days prior to the lay off.
C. Associates subject to lay off shall have the following rights:
1. Displace any associate with less seniority provided
he/she can do the job
without further training.
2. Elect to take a lay off instead of replacing a less
senior associate. The COMPANY will not contest the
associate filing for unemployment benefits if he/she
exercises the lay off option.
3. If an associate refuses recall to an open position or
is on layoff for 12 months or more, they will be
terminated by the COMPANY. If an
24
associate is in town they will be expected to return
within 24 hours of notification. If an associate does
not report within 24 hours of notification, they will
be terminated by the COMPANY. If going out of town
the associate must leave a number with the COMPANY
prior to leaving so they can be contacted. Associates
out of the area will be expected to return within 72
hours of notification. If an associate is out of the
area and is unable to report within 72 hours of
notification, they will be terminated by the COMPANY.
4. It is the responsibility of the associate on layoff
to notify the company of any change in their
employment status, address and/or telephone number.
D. In order to eliminate the shifting of more senior associates,
a new associate shall, for one (1) year, according to hiring
date, be available for transfer, to any classification needed
by changes in the production schedules.
E. The COMPANY will not break the continuity of service of any
associate who has been placed on furlough status. Associates
who have been laid off, will accrue seniority while on layoff
for a period not to exceed 12 months. their Associates who are
absent for illness or accident shall notify the COMPANY that
day, except under extenuating circumstances.
F. A maximum of six (6) recognized Shop Stewards with ten (10)
years of seniority, or more, shall have super seniority for
the purposes of this section. The UNION must periodically and
regularly provide the COMPANY with an up-to-date list of Shop
Stewards. Current stewards at the time of signing this
agreement with less than 10 years seniority will receive super
seniority.
X. Xxx offs shall be conducted in the presence of a UNION
Representative. It is the responsibility of the UNION
Representative to notify the UNION office as to the results of
the meeting.
7.07 Furlough In order to provide a more reasonable work schedule for senior
associates when hours are shortened due to lack of orders, the
Operations manager will
25
have the responsibility of placing on furlough by classification those
junior associates who are not needed to fill the daily production
schedule. The COMPANY will not break the continuity of service of any
associate who has been placed on furlough status. The furloughed
associates will be placed on surplus labor so as to make them eligible
for unemployment benefits during such furlough period, if otherwise
eligible. It is understood that a furlough may be for any length of
time provided such does not exceed four (4) continuous weeks at any
given time, unless the furlough occurs on the first work day of a given
month, in which case the furlough cannot exceed three (3) consecutive
weeks. For record keeping purposes, the business manager for Local
89262, AFL-CIO will be notified of such furlough by letter signed by
the Operations Manager.
In the event variation in customer demands requires associates to
return from furlough earlier than announced, such return shall be by
seniority unless the senior associates are unavailable. In such event,
the COMPANY liability shall be limited to notification to the UNION
that such associate either could not be reached by telephone or was
unavailable because of other commitments. Because State Unemployment
rules pay reduced benefits for partial unemployment, the plant or
operations manager will project furlough time in multiples of five (5)
working days. Any furlough can be triggered at any day of the week. For
example, if a holiday falls on Tuesday, the COMPANY will declare the
furlough to begin Wednesday and continue through for a continuous
minimum of five (5) working days.
7.08 Reduction of Hours
A. In order to retain qualified associates, the parties agree
that a reduction of hours may be more equitable rather than to
lay off associates.
B. When a reduction of hours is necessary, the reduction of hours
shall be within a department as outlined in 5.02. Hours within
the department shall be shared as equally as possible. Senior
associates shall have the first choice of either working or
reducing their hours. Should senior associates not volunteer,
the least senior associates shall be required to reduce their
hours first.
26
C. When further retrenchment necessitates a general reduction in
hours to a level between thirty (30) and forty (40) hours per
week, adjustment shall be made in such a manner that each and
every associate in their respective department receive a just
and equal share of work as long as reduction in work per
associate does not fall below a minimum of thirty (30) hours
per week.
1. The COMPANY retains the right at all times to do
necessary maintenance work regardless of the number
of hours worked.
D. If work falls below thirty (30) hours per week, the COMPANY
shall reduce the plant work force in accordance with Section
7.06, to maintain thirty (30) hours per week for the remaining
force.
E. In the event that there is an increase in work above the level
of thirty (30) hours per week, the COMPANY agrees to recall
associates, who are on furlough first, then recall associates
on layoff. Recall of associates from furlough or layoff will
be done by classification.
F. The parties agree that the above provisions shall not apply
under the following conditions:
1. A temporary reduction in hours to less than forty
(40) but more than thirty (30) may be made provided
that during the third (3rd) week of reduced hours it
is determined that such reduction is to continue and
steps are taken to adjust the number of hours and
associates. This adjustment is to be effective not
later than Monday of the fourth (4th) week.
2. When there is in effect a reduction in hours per week
and it becomes necessary to increase hours in certain
departments in order to provide prompt service to
customers, the hours may be temporarily increased to,
but no more than, forty (40) hours per week for a
period of not longer than three (3) consecutive
weeks.
27
3. In the event that the general level of hours worked
shall remain less than forty (40) hours per week for
more than two (2) continuous months the parties
hereto agree to renegotiate at the request of either
party the terms of Section 7.07.
4. It is also understood that where mutually agreed upon
between the COMPANY and the UNION, individuals may be
laid off without regard to their seniority rights or
rating.
G. Work Sharing Program
Production associates will be assigned to the following six
groups: Mattress, Box Springs, HMB, Mechanics, and General
(shipping, receiving and janitorial).
Administrators for this program will be the Human Resources
Manager and the UNION Chief Xxxxxxx.
H. In the case of a dispute pertaining to who should work on the
night shift or on the third shift, plant seniority shall be
the deciding factor.
I. Any associate assigned to an inspectors' job shall demonstrate
their capability to perform the work satisfactorily.
1. Seniority shall govern in the selection of inspectors
where there is equal ability.
2. Any dispute over who shall be assigned the job shall
be mutually resolved between the UNION Committee and
the COMPANY.
7.09 Open Positions When a vacancy occurs or a new position is created, the
position shall be filled in the following order:
28
A. Return to Previous Classification
1. The most senior associate who can perform the job
without further training shall be recalled from lay
off and placed in the position. The associate should
retain rights to their laid off position for one year
from the date of the original lay off. This placement
shall not be considered a job bid.
B. Job Bidding
1. In the event that there is not an associate on the
recall list who can perform the job without further
training, the COMPANY shall post the position on the
bulletin board for 48 hours.
2. The COMPANY will accept a bid by a UNION officer for
someone on vacation or lay off.
3. The COMPANY will review the applications from the
associates who have submitted their names for
consideration and fill the job opening by
transferring the applicants, if any, on the basis of
plant seniority (min. 1 yr.) and ability to perform
the job.
Because of the delays inherent in successive job
openings, the COMPANY may elect to fill, without
posting, job vacancies resulting from the assignment
of an applicant to the job originally posted.
4. Any associate transferred pursuant to the above
shall, if qualified, remain on that job for a period
of twelve (12) months before having the right to bid
on another job vacancy. In the event the job is
discontinued before the successful applicant
completes twelve (12) months on the job, he/she may
bid on another vacancy.
29
5. Any associate transferred pursuant to the above and
who fails to attain a satisfactory level of progress
on their new assignment within the normal limits of
the COMPANY's established experience factors, will be
given the opportunity to qualify for an open job
within the plant.
6. Except for the application of the job bidding
procedure, other applications of seniority, such as
new hiring's, lay offs, recalls, and job transfers in
one Job Skill Area will not affect or be affected by
those in another Job Skill Area unless otherwise
provided.
7.10 Personnel Action
A. The UNION shall receive written notice of all transfers,
disciplinary actions, new hires, terminations and lay offs.
7.11 Classification Phase Out It is further agreed that if any of the
classifications are phased out or closed down permanently, the
associates affected by such permanent closing will have the following
options:
1. In the event a classification is permanently phased
out, the associate so affected shall have the right
to replace any associate within the department with
less seniority provided he/she is qualified (without
further training) to perform the job.
2. In the event the affected associate cannot or does
not exercise the above options, such associate shall
have the right to choose an open job or exercise
their plant seniority over any associates in the
plant with less plant seniority, provided they may
perform the duties without further training.
30
ARTICLE VIII
8.01 Leave of Absence
A. Personal leaves of absence may be granted to associates for
personal reasons of an emergency nature not covered by other
leave provisions at the discretion of the COMPANY. The COMPANY
will require documentation for such leave.
B. This article is not to be used as a supplement to vacation or
other approved leaves.
C. Associates shall be granted leave without deductions from pay
for the purpose of voting on election day, in accordance with
the laws of the State of California if necessary.
D. Any associate who has been on the payroll one (1) year or more
will be entitled to receive three (3) days off with pay in the
case of death in their immediate family (husband, wife,
natural mother, father, brother, sister, children,
step-mother, step-father, step-children) upon presentation of
evidence of the above.
E. The COMPANY will grant emergency leave without pay for the
death of other relatives, or for attendance of a relative's
funeral. The associate must provide proof of attendance upon
returning to work. Otherwise, these days will be considered
unexcused.
8.02 Jury Duty
A. The COMPANY will make up differential in pay at their
quarterly average for those associates called for jury duty,
to their quarterly average; providing the associate was
scheduled for work on that day.
B. In no event will overtime be paid because of jury duty.
C. In order to qualify for jury duty pay the associate must give
advance notice of reporting to jury duty and bring in to the
COMPANY a signed statement from the Court Clerk showing the
amount of time spent on duty and the pay received.
31
D. Those reporting for jury duty and who are excused in time to
report for their regular work for a minimum of three (3) hours
shall do so or forfeit any pay for those hours.
ARTICLE IX PAID VACATIONS
9.01 The following vacations shall be granted annually during plant vacation
period for the duration of the Agreement to associates who are on the
active COMPANY payroll (active associates are defined as associates who
worked at least 1000 hours in the previous calendar year and who are
not currently Terminated, Retired or on Lay Off status) at the time the
vacation is granted:
A. Associates who have between one (1) and three (3) years of
service shall receive one (1) week of vacation.
B. Associates who have more than three (3) years but less than
eight (8) years shall receive two (2) weeks of vacation.
C. Associates who have more than eight (8) but less than eighteen
(18) years shall receive three (3) weeks of vacation.
D. Associates who have more than eighteen (18) years shall
receive four (4) weeks of vacation.
E. All associates who fall under the terms as stated in article
9.01 and who have twenty-five (25) years of service or more,
on the date they retire; will be entitled to their 5th week
vacation pay on retirement. All other Associates employed as
of November 30 of that year and who have twenty-five years of
service or more, will receive in December pay for a fifth week
of vacation.
9.02 The COMPANY retains the right to determine whether vacations will be
staggered on the basis of preference by seniority consistent with
operational needs during the period January 1 through December 31, or
on the basis of plant shutdown. In the event of plant shutdown, the
COMPANY has the right to continue operating the Shipping Department as
well as xxxxxxx those functions needed to maintain satisfactory
customer service.
32
9.03
A. Plant closing for remaining vacation purposes may be
determined by the COMPANY at any time during the calendar
year.
1. In determining crews during a plant closing the
COMPANY will ask for qualified volunteers.
2. Should there be an inadequate number of volunteers
the COMPANY will select its manpower from the least
senior qualified associates.
3. Those who work during a plant closing may select
vacations on a seniority basis.
9.04
A. Vacation schedules for the coming year will be determined
during the preceding November/December.
1. Vacations will be staggered throughout the year and
selections for specific time will be by job
classification and seniority within department, as
approved by the COMPANY.
2. Associates eligible for vacation will schedule all of
their earned vacation by seniority within a
department as indicated in Section 9.01 inclusive.
Associates may split their vacation into one (1) week
segments.
3. Associates shall indicate, in writing, on a form
provided by the COMPANY, their preference for
vacation. These forms will be distributed by the
COMPANY by November 1st. Associates will have until
the last working day in November to submit their
vacation schedule request form to their immediate
Supervisor. Any associate who submits their vacation
request form after the last working day in November
will forfeit their seniority for the purposes of
vacation scheduling. Said associates will be granted
vacation on an availability basis as determined by
the COMPANY. Once finalized, the COMPANY will post
the approved schedule by December 31.
33
4. Once the vacation schedule has been posted by the
COMPANY, associates have the right to request a
change in vacation no more than two times during the
course of that calendar year. Approval of these
requests are at the discretion of the COMPANY.
5. Up to five (5) days of vacation may be held and
scheduled one day at a time with two weeks notice and
approval.
6. Due to production needs, the COMPANY shall be able to
set certain restrictions on the number of associates
allowed off at one time.
9.05
A. Associates terminated for any reason, laid off, or out of work
on a personal leave of absence shall receive prorated vacation
based upon number of days worked divided by 260 provided that
they have worked at least 1000 hours in the previous calendar
year. Associates, employed less than one (1) year are not
eligible for pro-rated vacation.
B. Vacation hours of pay will be established on the basis of the
associates' average number of hours worked during the
preceding quarter.
1. It is understood and agreed that their weekly average
will not be less than forty (40) hours nor more than
forty eight (48) hours times their average straight
time hourly earnings rate.
2. Associates shall receive the shift premium in
computing vacation pay.
C. Vacation pay shall be payable on the Friday preceding the
vacation period of the individual.
9.06 Associates will not be required to work the Saturday immediately
preceding their vacation unless they volunteer to do so.
9.07 If the COMPANY forces early vacation selection, the associate will
receive full eligibility even though their anniversary date falls later
in the year.
34
9.08 The COMPANY agrees to pay all vacations and holidays at the associate's
previous quarter's average rate, even in the event of temporary
transfer.
9.09 In the event the COMPANY closes the plant for two (2) consecutive weeks
of vacation, those associates who are not eligible for two (2) weeks
vacation will be considered for work as part of the skeleton crew. If
they do not so work, the COMPANY will not contest their right to file
for unemployment.
ARTICLE X PAID HOLIDAYS
10.01
A. It is mutually agreed that twelve regular holidays with pay
shall be observed annually. All associates working shall
receive pay at their respective published average hourly
earning rate for eight (8) hours for the following holidays
when not worked:
New Year's Day President's Day
Good Friday Day After Easter
Memorial Day Independence Day
Labor Day Thanksgiving Day
Day After Thanksgiving Day Day Before Christmas
Christmas Day Day Before New Year's Day
* It is agreed that Veterans can take off Veteran's Day
without pay. The COMPANY must be notified by
September 1, if an associate wants that day off. It
is also agreed that an associate each year who worked
on November 11, (Veteran's Day) has earned holiday
pay for the Day before New Year's Day.
Associates who do not have a published rate will be paid the
base rate. Associates required to work on the above holidays
shall be paid double time in addition to the compensation
provided in this Section. Associates will receive the shift
premium in computing holiday pay if otherwise eligible.
B. When a holiday falls on a Saturday, it shall be celebrated on
either the preceding Friday, or the following Monday, or some
other day as mutually agreed upon by the COMPANY and the
UNION.
35
C. Any of the above holidays that fall on Sunday shall be
observed on Monday, which shall then be considered a holiday
under the terms of this Agreement.
All holidays prescribed in Article X will be observed in
conformance with the Federal Law.
D. If one or part of the above holidays occurs during a vacation
period, the associate shall be compensated in accordance with
Article X Section 10.01, in addition to their regular vacation
pay.
E. It is agreed that if an associate is absent from their regular
scheduled work day before and/or following a regular paid
holiday, without the COMPANY's permission, he/she shall not
receive pay for that holiday. In cases of illness or accident,
they must provide a doctor's note. Any doubtful cases are to
be settled according to Article II, of this Agreement. It is
further agreed that if an associate is laid off within the
preceding five working days before a regular paid holiday,
he/she shall receive pay for that holiday.
F. To be eligible for holiday pay associates must have been
employed by the COMPANY thirty (30) days..
G. Except for plant security, continuous shift operations,
emergency or maintenance, the COMPANY will not require
production associates to work on Saturday when the following
Monday is a paid holiday as listed under Section 10.01,
Paragraph A.
ARTICLE XI MILITARY CLAUSE
11.01 The COMPANY and the UNION agree to their mutual obligations under
USERRA (Uniformed Services Employment and Re-Employment Rights Act).
36
ARTICLE XII INSURANCE PROGRAM
12.01
A. The COMPANY agrees to the continuance of the insurance program
for the benefit of its associates covered by this Agreement,
such insurance to include group life insurance, group
accidental death and dismemberment, medical reimbursement
benefit, surgical benefit, hospitalization benefits, vision
and dental care.
1. Such insurance will be purchased through and
administered by the United Furniture Workers
Insurance Fund as established by an Agreement and
Declaration of Trust in the State of New York and
dated May 28, 1944.
2. The COMPANY will remit to the Insurance Fund a sum
equal to 84 1/2% of the total premium not to exceed
$550.00 per associate per month in the first year of
this agreement and 83% of the total premium not to
exceed $550.00 per associate per month in the second
year of this agreement.
In no event will the COMPANY contribution exceed
$550.00 per associate per month. Should premiums be
decreased during the life of this Agreement, the
parties will share in such decrease based on the
schedule contained herein. Associate's contribution
will be pre-tax in accordance with Section 125 of the
United States Internal Revenue Code.
B. It is further agreed that premium payments by the COMPANY for
its associates shall be made for the purpose and
administration of insurance for XXXXXXX associates who are
members of I.U.E./C.W.A./F.W. Local 89262, and in the event
that the contributions are not used for the benefit of said
associates, the COMPANY shall withhold any further payments
into the designated insurance fund and shall immediately
negotiate with the accredited representatives of Local 89262
as to the disposition of contributions of the EMPLOYER and the
continuance of insurance coverage. Any insurance plan effected
shall conform to all applicable State and Federal laws.
37
C. If an associate is off work for an industrial injury for a
period in excess of one (1) month and no contribution is owed
because of a lack of earned hours, the COMPANY will
nevertheless make one (1) monthly contribution in their behalf
based on their last working month's earnings.
D. If an associate is out on layoff over thirty one (31) days,
the COMPANY will make one (1) payment to the U.F.W.A.
Insurance Program on their behalf based on the associate's
previous month's earnings.
E. The Union agrees to have the Fund representative provide
current census and experience data to the Company and to meet
and confer with the company regarding the plan design of the
insurance program each year at least ninety (90) days prior to
establishing new premiums subject to any applicable federal,
state or local laws or regulations.
F. The Company reserves the right to evaluate other insurance
programs, which may have a lower cost and implement this new
plan provided the coverage in the new plan is comparable to
the existing plan.
ARTICLE XIII PENSION
13.01
A. Effective April 1, 2002 the COMPANY shall contribute to the
United Furniture Workers Pension Plan A, six percent (6%) of
the gross earnings excluding the Zero Waste Bonus of
associates covered by this Agreement for this contract period
for the purpose of pension benefits. The parties agree,
however, that the coverage of a newly employed associate
should not begin until the first day of the first calendar
month following the expiration of twelve (12) months from the
commencement of this employment. In calculating the
contribution due for the first twelve (12) months of coverage,
their total gross earnings for the entire preceding twelve
(12) months shall be considered. Thereafter, the employer will
make contributions each calendar month.
38
ARTICLE XIV MANAGEMENT RIGHTS CLAUSE
14.01
A. The UNION agrees that the MANAGEMENT of the COMPANY and the
direction of the work force shall be in the sole discretion
and is the sole responsibility of the COMPANY. It further
agrees that all rights, powers, authority, privileges and
prerogatives not expressly abridged or modified by the
Agreement including, but not limited to, those exercised
unilaterally by the COMPANY in the past, are reserved to
COMPANY to exercise unilaterally in its sole discretion
without regard to any effect upon the work force; however such
rights shall not be exercised arbitrarily or capriciously.
B. Prominent among management's rights but by no means wholly
inclusive are the right to decide: the number, location and/or
relocation of its plants, departments, divisions, and/or
subdivisions; the closing down of a plant, department,
division, and/or subdivision; the right to rearrange,
exchange, combine, transfer, assign, and/or cease any job or
service and the movement and interchange of work as a result
of such decision; the services to be rendered, the work to be
contracted out and/or purchased; the required machinery and
equipment; the methods, reasonable schedules, and quantities
of service; and the amount of supervision necessary.
C. It is further recognized that the management of the Company
has the sole responsibility for the selection and direction of
the working force, including the right to: hire; lay off;
assign; reassign; transfer; promote; determine the
qualifications necessary to do a job or jobs; for proper cause
discipline, suspend, and/or discharge; combine and/or
eliminate positions; determine the appropriate jobs and/or the
number of associates within a given job and/or pay level; set
shift schedules; set reasonable standards for quantity and
quality of work; determine where and when overtime should be
worked; establish working hours and work pace; establish,
evaluate and/or assess employee performance; and make and
enforce, after advance notice to the UNION and associates,
such reasonable rules and regulations and policies and
procedures as the COMPANY may from time to time deem
appropriate to maintain order, safety, and/or effective
operation of its facilities.
39
D. Management of the COMPANY shall also have the sole right to:
determine its suppliers and customers and the prices and terms
upon which its materials, equipment, and supplies will be
purchased and its products and services will be sold;
determine selection, retention, and/or substitution of any
vending service; establish and/or administer disability
criteria consistent with the Americans with Disabilities Act
of 1990; and/or determine need for and administration of
physical examinations, mental tests, and/or other tests for
the safety of associates and/or security of the premises or
property of the COMPANY consistent with the Americans with
Disabilities Act of 1990.
E. It is agreed that management maintains and retains all of its
above enumerated managerial rights and that they are vested
solely and exclusively in the COMPANY unless expressly and
specifically contracted away in this Agreement and further
that this enumeration of management rights shall not be deemed
to exclude any other managerial rights.
ARTICLE XV NO STRIKE - - NO LOCKOUT
----------
15.01 Neither the UNION nor any of the associates in the bargaining unit
covered by this Agreement will collectively, concertedly or
individually encourage, engage in or participate in, directly or
indirectly, any strike, deliberate slowdown, stoppage or other
interference with production of work during the term of this Agreement;
and the COMPANY during the term of this Agreement will not lockout any
of the associates covered by this Agreement.
A. In the event that there be such an occurrence or occurrences
as described in Article XV, Section 15.01, then either the
UNION or the COMPANY may invoke the Expedited Grievance
Procedure provided in this section as distinguished from the
ordinary Grievance -- Arbitration Procedure.
40
1. Such dispute or grievance shall be asserted by notice
in writing by registered mail, return receipt
requested, or Federal Express, given to the other
party.
2. A copy of such notice shall be sent simultaneously to
the person designated as the permanent Arbitrator, or
such other person designated as Arbitrator, as
hereinbefore set forth.
B. The COMPANY and the UNION shall attempt to have drawn up and
ready for selection a list of mutually acceptable Arbitrators
who may be contacted directly for the Expedited Arbitration.
1. Should this not have been done, or should no
Arbitrator on the list be available, and should the
parties within twenty-four (24) hours be unable to
agree upon an Arbitrator, they shall immediately
contact the local office of the American Arbitration
Association to request the first available Arbitrator
who can hear the case within forty-eight (48) hours.
C. In the event of death, disability, or subsequent
unavailability of the selected or designated Arbitrator within
the time limits prescribed in this provision, the parties
shall select another Arbitrator within twenty-four (24) hours,
and failing such mutual selection, either party may request
that the American Arbitration Association make a designation
of an available Arbitrator within forty-eight (48) hours of
the request.
D. The Arbitrator shall hold an arbitration hearing as
expeditiously as possible but in no event later than ten (10)
working days after receipt of said notice.
1. The decision of the Arbitrator shall issue forthwith
and in no event later than twenty-four (24) hours
after the conclusion of the hearing unless the
grieving party agrees to waive this time limitation
with respect to all or part of the relief requested.
2. The Arbitrator's WRITTEN opinion will follow within
thirty (30) days.
41
E. In those situations involving discipline of associates for
violation of any provision of this article. it is understood
that the Arbitrator will hold an arbitration hearing within
five (5) working days after receipt of said notice.
1. The decision of the Arbitrator shall issue forthwith
and in no event later than forty-eight (48) hours
after the conclusion of the hearing.
2. The Arbitrator's WRITTEN opinion will follow within
thirty (30) days.
F. The arbitration proceedings pursuant heretofore shall be held
in Alameda County, California, but not on the COMPANY's
premises.
G. All costs for the hearing and service of the Arbitrator
designated herein, or for any other person selected pursuant
to the aforementioned procedure shall be borne by the parties
jointly.
H. Each party will bear the expense of its representatives and
for the presentation of its own case.
ARTICLE XVI BULLETIN BOARDS
16.01 The COMPANY grants the UNION the right to place bulletin boards in
agreed upon places in the plant for the purpose of posting UNION
notices, copies of this Agreement, and other official papers. The UNION
must obtain COMPANY approval prior to posting anything on the bulletin
boards. The request will be granted unless the material is derogatory
or defamatory. All such matters must be posted only upon the authority
of officially designated representatives of the UNION.
ARTICLE XVII SAFETY AND SANITATION
17.01
A. The COMPANY shall continue to make reasonable provisions for
the safety and health of its associates at the plant during
the hours of their employment.
B. Protective devices and other equipment necessary to protect
its associates properly from injury shall be provided by the
COMPANY.
42
1. Associates shall cooperate with MANAGEMENT in the
proper maintenance and use of these provisions and
devices.
C. The COMPANY will carry out disciplinary action in accordance
with the Collective Bargaining Agreement, and Company Safety
Rules and Policies. The Associate's safety record, type and
nature of violations, plus endangerment of self and others
will be major factors in the determination of the corrective
action to be taken.
ARTICLE XVIII LEGAL CONFORMITY
18.01
A. It is the intention and desire of both the COMPANY and the
UNION to conform to all laws of the State and Federal
government and orders issued by the President of the United
States.
B. It is intended that such laws or regulations which now exist
or may later be enacted or issued shall supersede the
requirements of this Agreement while they are in effect, and
upon expiration of such laws and regulations, provisions of
the Agreement which have been modified shall come into full
force and effect.
18.02 It is agreed by the parties that in the employment practices
of the COMPANY and in the membership and practices of the
UNION, there shall be no discrimination against any person on
the basis of race, color, sex, age, religion, creed, national
origin, marital status, sexual orientation, disability,
veteran's status, or any other protected category.
ARTICLE XIX MISCELLANEOUS
19.01
A. Sick Days
1. Effective January 1, 2002 associates shall be
eligible for one (1) day of pay at $80.00 per day,
for lost time, per calendar quarters. Associates
cannot receive payment before the quarter begins.
2. Any days earned but unused shall be paid to the
associate on the last pay period of December of each
year.
B. The COMPANY and the UNION agree that the COMPANY will
administer its Substance Abuse policy in conformance with the
Drug Free Workplace Act and under the standards established by
SAMHSA (Substance Abuse and Mental Health Services
Administration.
C. The Company and the Union understand that from time to time
there will be issues of mutual concern to both parties. In
order to resolve these issues the Company and the Union agree
to form a Common Issues Committee. The committee will consist
of 6 members, 3 appointed by the Company and 3 appointed by
the Union. This committee will meet on an as needed basis by
the call of either party.
ARTICLE XX COMPLETE AGREEMENT
20.01 This Agreement constitutes the sole and complete agreement
between the parties and embodies all the terms and conditions
governing bargaining unit employees. The parties acknowledge
that they have had the opportunity to present and discuss
proposals on any subject for collective bargaining and that
each party for the life of this Agreement voluntarily waives
the right, and each agrees that the other shall
not be obligated, to bargain collectively with respect to any
subject or matter not specifically referred to or covered in
this Agreement unless mutually agreed to in writing.
ARTICLE XXI TERMINATION, MODIFICATION AND RENEWAL
21.01
A. This Agreement shall remain in full force and effect until
April 1, 2006, and thereafter annually; provided, however,
that either party may terminate this Agreement or give notice
of a desire to modify any portion thereof on the date of
expiration, or at the end of any subsequent yearly period, by
notifying the other party in writing to that effect no less
than sixty (60) days prior to the date of expiration, or at
the end of any subsequent yearly period.
B. Negotiations upon a new or modified Agreement shall commence
not later than twenty (20) days next following the receipt of
said written notice of termination or modification.
1. Not later than five (5) days after sending such
notice the sending party shall present in writing to
the other party the proposed new Agreement of
modification.
2. Ten (10) days after receipt of said proposals the
recipient party shall present in writing to the other
party its counter or other proposal.
3. Neither party shall be prevented from presenting any
other proposals during negotiations.
C. During negotiations this Agreement shall remain in full force
and effect.
20.02 In the event XXXXXXX COMPANY closes the plant and the COMPANY cannot
recognize the I.U.E./C.W.A./F.W., Local #89262 as the bargaining agent
in the new location, the COMPANY will be willing to sit with the UNION
to negotiate severance compensation.
SIGNED THIS _______ DAY OF ____________________, 19_______________.
FOR XXXXXXX COMPANY, FOR THE INTERNATIONAL UNION OF
ELECTRONIC, ELECTRICAL, SALARIED,
MACHINE & FURNITURE
WORKERS AND COMMUNICATION
WORKERS OF AMERICA, AFL-CIO,
LOCAL 89262 FW
------------------------------- ---------------------------------
Art Compton Xxxxxx Xxxxxxx
Operations Manager Secretary / Treasurer
IWE CWA Local #262
------------------------------- ---------------------------------
Xxxx Xxxxxxxxxx Xxxx Xxxxx
Human Resources Manager Chief Xxxxxxx
------------------------------- ---------------------------------
Xxxx Xxxx Xxxx Xxxxxxxx
Production Manager Assistant Chief Xxxxxxx
---------------------------------
------------------------------- Xxxxx Xxxxxxxx
Xxxx Xxxxx Bargaining Committee
Director of Human Resources
Employee & Labor Relations
---------------------------------
Xxx Xxxxx
International Representative
IUE-CWA