TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION
Transcription
TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION
AGREEMENT between TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION A Triumph Group Company NASHVILLE, TENNESSEE and the INTERNATIONAL ASSOCIATION of MACHINISTS and AEROSPACE WORKERS Aero Lodge #735 AFL-CIO EFFECTIVE February 5, 2012 CONTENTS FOREWORD........................................................................................................................................................................... 1 AGREEMENT......................................................................................................................................................................... 2 ARTICLE I RECOGNITION ................................................................................................................................................ 3 ARTICLE II UNION SECURITY AND MACHINIST NON-PARTISAN POLITICAL LEAGUE.................................... 4 Section 1. Voluntary Check Off........................................................................................................................................ 4 Section 2. Machinist Non-Partisan Political League......................................................................................................... 5 ARTICLE III HOURLY WAGE RATES AND OCCUPATIONS ....................................................................................... 7 Section 1. Hourly Wage Rates.......................................................................................................................................... 7 Section 2. Occupations ..................................................................................................................................................... 7 Section 3. Job Descriptions .............................................................................................................................................. 7 Section 4. Work Assignments........................................................................................................................................... 8 Section 5. Creation of Occupations .................................................................................................................................. 9 Section 6. Limitation on Arbitrator................................................................................................................................. 10 Section 7. Automatic Progression................................................................................................................................... 10 Section 8. Improper Occupational Assignment .............................................................................................................. 11 Section 9. Cost-of-Living Adjustment ............................................................................................................................ 11 ARTICLE IV SHIFT DIFFERENTIAL .............................................................................................................................. 12 Section 1. Second Shift................................................................................................................................................... 12 Section 2. Third Shift ..................................................................................................................................................... 12 Section 3. Employees Working Alternative Work Weeks.............................................................................................. 12 ARTICLE V HOURS OF WORK AND OVERTIME ........................................................................................................ 13 Section 1. Normal Work Week....................................................................................................................................... 13 Section 2. Overtime ........................................................................................................................................................ 14 Section 3. Assignment of Overtime ................................................................................................................................ 15 Section 4. Weekend Overtime ........................................................................................................................................ 20 Section 5. Call Time ....................................................................................................................................................... 21 Section 6. Reporting Time.............................................................................................................................................. 21 Section 7. Pay Day.......................................................................................................................................................... 21 ARTICLE VI HOLIDAYS .................................................................................................................................................. 22 Section 1. Holidays and Days Off with Pay.................................................................................................................... 22 Section 2. Eligibility ....................................................................................................................................................... 22 Section 3. Working on a Holiday ................................................................................................................................... 23 Section 4. Holiday Pay Computation.............................................................................................................................. 23 Section 5. Changing the Holiday .................................................................................................................................... 24 ARTICLE VII VACATIONS .............................................................................................................................................. 25 Section 1. Vacation Shutdown and Season..................................................................................................................... 25 Section 2. Vacation Eligibility........................................................................................................................................ 26 Section 3. Vacation Scheduling ...................................................................................................................................... 26 Section 4. Vacation Pay.................................................................................................................................................. 27 Section 5. Holidays During Vacation ............................................................................................................................. 27 Section 6. Vacation and Military Obligations................................................................................................................. 27 Section 7. Vacation, Laid Off and Terminated Employees............................................................................................. 27 Section 8. Special Provision for Determining Employees Required to Work During Vacation Shutdowns................... 28 ARTICLE VIII ADJUSTMENT OF GRIEVANCES ......................................................................................................... 29 Section 1. Grievances Defined ....................................................................................................................................... 29 Section 2. Grievance Procedure...................................................................................................................................... 29 Section 3. Mediation Process.......................................................................................................................................... 30 Section 4. Arbitration ..................................................................................................................................................... 31 Section 5. Grievances Involving Suspension or Discharge............................................................................................. 32 Section 6. Union Representation .................................................................................................................................... 33 Section 7. Procedure for Committeeperson .................................................................................................................... 34 Section 8. Time Limits ................................................................................................................................................... 34 Section 9. Directed Grievance Settlements..................................................................................................................... 35 ARTICLE IX SENIORITY ................................................................................................................................................. 36 Section 1. Definition....................................................................................................................................................... 36 Section 2. Probationary Period ....................................................................................................................................... 36 Section 3. Return to Bargaining Unit.............................................................................................................................. 36 Section 4. Seniority List ................................................................................................................................................. 37 i Section 5. Loss of Seniority ............................................................................................................................................37 Section 6. Employee Responsibility for Change of Address...........................................................................................37 Section 7. Reduction in Force.........................................................................................................................................38 Section 8. Notice to Union..............................................................................................................................................39 Section 9. Recall to Work ...............................................................................................................................................40 Section 10. General Recall..............................................................................................................................................40 Section 11. Promotions ...................................................................................................................................................40 Section 12. Seniority During Illness or Accident............................................................................................................43 Section 13. Top Seniority for Committeepersons ...........................................................................................................43 Section 14. Notice to Employees ....................................................................................................................................44 Section 15. Temporary Loans .........................................................................................................................................44 Section 16. Temporary Lay Off ......................................................................................................................................44 Section 17. Same Hire Date ............................................................................................................................................45 Section 18. Secret or Top Secret Work Assignments .....................................................................................................45 ARTICLE X LEAVE OF ABSENCE..................................................................................................................................46 Section 1. Personal Leave ...............................................................................................................................................46 Section 2. Union Leave...................................................................................................................................................46 Section 3. Armed Forces Leave ......................................................................................................................................46 Section 4. Military Leave................................................................................................................................................46 Section 5. Funeral Leave.................................................................................................................................................47 Section 6. Jury Leave......................................................................................................................................................48 Section 7. Sick Leave......................................................................................................................................................48 Section 8. Seniority During Leave ..................................................................................................................................49 Section 9. Paid Personal Leave.......................................................................................................................................49 ARTICLE XI RIGHTS OF MANAGEMENT.....................................................................................................................51 ARTICLE XII STRIKES AND LOCKOUTS .....................................................................................................................52 Section 1. Union Responsibility and Company Responsibility.......................................................................................52 Section 2. Union Cooperation and Non-Liability ...........................................................................................................52 Section 3. Discipline for Violation .................................................................................................................................52 Section 4. Productivity and Ability to Compete..............................................................................................................52 ARTICLE XIII GENERAL .................................................................................................................................................53 Section 1. Personal Report..............................................................................................................................................53 Section 2. Posting Notices ..............................................................................................................................................53 Section 3. Clean-Up Period ............................................................................................................................................53 Section 4. Sabotage.........................................................................................................................................................53 Section 5. Educational Facilities.....................................................................................................................................54 Section 6. Foremen, Lead Persons and the Improvement of Productivity ......................................................................54 Section 7. Business Representative.................................................................................................................................55 Section 8. Copy of Agreement to New Employees .........................................................................................................55 Section 9. Rules ...............................................................................................................................................................55 Section 10. Subcontracting .............................................................................................................................................55 Section 11. Employees of Subcontractors.......................................................................................................................57 Section 12. Field Service ................................................................................................................................................57 Section 13. Nondiscrimination........................................................................................................................................58 Section 14. Rest Periods .................................................................................................................................................59 Section 15. Drug Free Workplace...................................................................................................................................59 ARTICLE XIV SAFETY AND FIRST AID .......................................................................................................................67 Section 1. Health and Sanitation .....................................................................................................................................67 Section 2. Safety Committee...........................................................................................................................................67 Section 3. Nurses, First Aid Stations ..............................................................................................................................68 Section 4. Accident Report .............................................................................................................................................68 ARTICLE XV BENEFITS ..................................................................................................................................................69 ARTICLE XVI PENSIONS.................................................................................................................................................70 ARTICLE XVII ASSIGNMENT.........................................................................................................................................71 ARTICLE XVIII DURATION OF AGREEMENT.............................................................................................................72 Section 1. Duration, Amendment, and Termination........................................................................................................72 Section 2. All Inclusive Agreement ................................................................................................................................72 EXHIBIT “A” MINIMUM / MAXIMUM WAGE RATES ................................................................................................74 EXHIBIT “B” OCCUPATIONAL LISTINGS....................................................................................................................75 EXHIBIT “C” JOB RECALL AGREEMENT.....................................................................................................................76 ii EXHIBIT “D” LETTERS OF UNDERSTANDING........................................................................................................... 77 Letter #1 Shop Dispatchers........................................................................................................................................... 77 Letter #2 Cordex Measuring Machine .......................................................................................................................... 77 Letter #3 Inspector-Tooling, Precision Gauge & Blueprint Use of Optics ................................................................... 77 Letter #4 Transportation of Master Gauges.................................................................................................................. 78 Letter #5 Structural Work Completion ......................................................................................................................... 78 Letter #6 Loader, Truck Driver and Locomotive Operator .......................................................................................... 78 Letter #7 Blue Tags ...................................................................................................................................................... 78 Letter #8 Production & Maintenance Items to be Loaded by Shipping Department .................................................... 79 Letter #9 Illness of Four (4) Days or Less .................................................................................................................... 79 Letter #10 Seniority - Permanent Total Disability.......................................................................................................... 79 Letter #11 Training on Electronic Data Equipment........................................................................................................ 80 Letter #12 Right to Work vs. Union Shop ...................................................................................................................... 80 Letter #13 Pay Checks - Jury Leave ............................................................................................................................... 80 Letter #14 Tool Acceptance / Rejection Policy .............................................................................................................. 80 Letter #15 Tooling Craft Job Occupations Overtime Scheduling Process...................................................................... 81 Letter #16 Productivity Improvement............................................................................................................................. 82 Letter #17 Kaizen / Lean Events..................................................................................................................................... 82 Letter #18 New Hire Orientation .................................................................................................................................... 82 Letter #19 IAM National 401(k) Plan ............................................................................................................................ 83 Letter #20 Medical Restrictions...................................................................................................................................... 84 Letter #21 Inspector Bonding & Ultrasoncis (K-07) ...................................................................................................... 85 Letter #22 Tool & Die Maker Openings......................................................................................................................... 86 HOURLY PENSION PLAN*................................................................................................................................................ 87 ACTIVE HEALTHCARE ..................................................................................................................................................... 90 SAFETY HABIT INITIATIVE............................................................................................................................................. 97 SUPPLEMENTAL AGREEMENT COVERING NEW TECHNOLOGY ........................................................................... 98 2012 Calendar........................................................................................................................................................................ 99 2013 Calendar...................................................................................................................................................................... 100 2014 Calendar...................................................................................................................................................................... 101 2015 Calendar...................................................................................................................................................................... 102 2016 Calendar (January & February)................................................................................................................................... 103 iii FOREWORD Since January 15, 1941, AERO LODGE NO. 735 OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS and AEROSPACE WORKERS, affiliated with the AFL-CIO, has been the sole representative of the production and maintenance employees of TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION, a Triumph Group Company, NASHVILLE, TENNESSEE, and its predecessor companies on matters pertaining to wages, hours, and conditions of employment. The relationship between the Union and the management has been continuous and harmonious. In order to affirm their sincere belief in the principle of collective bargaining, the Company and the Union have negotiated this collective bargaining agreement. This agreement sets forth the mutual understanding of the Company and the Union with respect to wages, hours and working conditions enjoyed by all employees represented by the Union. 1 AGREEMENT This agreement made and entered into this February 5, 2012, by and between TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION, a Triumph Group Company, NASHVILLE, TENNESSEE, (hereinafter called the “Company”) and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, affiliated with the AFL-CIO, and its AERO LODGE NO. 735 (hereinafter called the “Union”): In consideration of the common interest hereinafter set forth, IT IS MUTUALLY AGREED by and between the Company and the Union as follows: 1. Both the Company and the Union are desirous of maintaining uniform wage scales, working conditions and hours of the bargaining unit employees and of facilitating peaceful adjustment of grievances which may arise under the terms of this Agreement from time to time between Company and the bargaining unit employees and of promoting and improving peaceful employee and economic relations between the parties. 2. The general purpose of this agreement is to promote the mutual interest of the Company and the bargaining unit employees and the parties’ desire for the operation of the Company’s Nashville, Tennessee, facilities under methods which will further, to the fullest extent possible, the safety and welfare of the employees, cleanliness of the plant and premises. 2 ARTICLE I RECOGNITION The Company recognizes the Union as the sole collective bargaining agency for all production control dispatchers, inspectors, tool and die makers, machinist-precision, production and maintenance employees and such employees located at Nashville, Tennessee, will be governed by the terms of this agreement. This is exclusive of all salaried employees, office employees, all clerks not specifically included herein, fire fighters, medical employees, cafeteria employees, timekeeping employees and guards, professional employees, and supervisors as defined in the Labor Management Relations Act of 1947, as amended. The term “he” or “his” as used hereinafter in this agreement is understood to include both men and women employees. The term “employee” or “employees” whenever used in this agreement shall exclude all employees employed in the above excluded classifications. 3 ARTICLE II UNION SECURITY AND MACHINIST NON-PARTISAN POLITICAL LEAGUE Section 1. Voluntary Check Off The company agrees to deduct, if possible, an initiation fee, or portion thereof, and current regular monthly Union dues from pay of any employee in the bargaining unit who has fully executed and furnished the Company with an authorization form as shown below: AUTHORIZATION FOR DEDUCTION OF UNION DUES OF MEMBERS OF AERO LODGE NO. 735 of the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, affiliated with the AFL-CIO. I hereby authorize Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee, to deduct an initiation fee, or a portion thereof, and the current regular monthly Union dues from my wages earned by me while in the bargaining unit represented by Aero Lodge No. 735 of the International Association of Machinists and Aerospace Workers, affiliated with the AFL-CIO, in accordance with the provisions of the agreement effective February 5, 2012, between the Company and the Union. I understand such deductions are to be made from the first full pay period after receipt of the authorization and weekly therafter. This Authorization may not be revoked by me before the end of one (1) year from the effective date of said Agreement. I also understand I may revoke this authorization during the ten (10) day period following the said effective date or during any ten (10) day period that follows an anniversary of the said effective date by notice sent by certified mail, return receipt requested, to the Union at its office, Nashville, Tennessee. In the event I do not revoke this authorization to deduct Union dues within any said ten (10) day period, this Dues Deduction Authorization shall be effective for an additional year. I also understand that if my seniority is broken, or if I enter the Military Service of the United States, this Authorization shall be revoked. It is the opinion of Local Lodge 735 of the International Association of Machinists and Aerospace Workers that contributions or gifts to Local Lodge 735 of the International Association of Machinists and Aerospace Workers are not tax deductible as charitable contributions for Federal income tax purposes. However, they may be tax deductible under other provisions of the Internal Revenue Code. Date: Name: Dept.: Clock No.: _________________________________ _________________________________ (Please Print) __________________________________ __________________________________ Employee Signature: _______________________________ WITNESS: ________________________________ 4 The Company agrees to forward the amount of Union dues deducted from each weekly paycheck to the Financial Secretary of the Union within a reasonable time after such deduction. A list of those from whom deductions were made and the amounts of such deductions will be furnished the Union at the same time. The Union agrees to indemnify and save the Company harmless against any and all claims, demands, suits or other forms of liability that may arise out of, or by reason of, actions taken or not taken by the Company in complying with the provisions of this Article, in reliance upon the DUES DEDUCTION AUTHORIZATIONS which have been furnished to it. Section 2. Machinist Non-Partisan Political League A. Upon receipt of a Union supplied and Management agreed to authorization for assignment and check off of contributions to the Machinist Non-Partisan Political League (MNPL), Federal Election Commission regulatory number C0002469, which is properly executed by an employee of the Company who is a member of the bargaining unit, the Company shall deduct the sum so designated by the employee from the pay of that employee for each payroll period in each month, provided: 1. The employee maintains his/her authorization for assignment and check off to MNPL in effect during that month; and 2. The employee receives a paycheck for earned wages from the Company for the week(s) designated to have MNPL contributions withheld. Such paycheck must be of a sufficient amount to allow for the full amount of such MNPL deduction after other required deductions have been made. The Company shall within thirty (30) days after the last deduction of each month transmit monies withheld on behalf of the MNPL to an address designated by the Union as the office of the MNPL authorized to review contributions withheld on behalf of the MNPL, as well as a list of the names and addresses of the employees for which deductions have been made and the total amount of the deduction for each such employee. B. An employee’s participation in the Machinist Non-Partisan Political League shall terminate if: 1. The employee terminates employment, or 2. The employee transfers out of the Bargaining Unit, or 3. The employee revokes in writing his/her authorization for assignment and check off of contributions to MNPL provided the revocation to the Company is received by the Company at least twenty (20) days prior to the beginning of the month when revocation is requested to be made effective. C. The Union shall reimburse the Company for the Company’s actual expenses which it incurs in the initial start up, administration, and the processing of those deductions to MNPL or cancellations of those deductions. The MNPL director or his designee shall be allowed to audit the costs submitted by the Company for reimbursement if, in the judgment of the MNPL director, the expenses appear unreasonable. 5 D. The Union agrees that it will hold the Company harmless and indemnify the Company for any and all claims made with respect to the provisions of Section 2 of Article II. E. The Company’s obligation shall remain in effect as long as the Company has an obligation to provide such a procedure under the Federal Election Campaign Act. 6 ARTICLE III HOURLY WAGE RATES AND OCCUPATIONS Section 1. Hourly Wage Rates A. Effective as of February 5, 2012, the hourly wage rates applicable to labor grades shall be as specified in Exhibit “A”, attached hereto and made a part hereof, and said rates shall remain in effect and shall be implemented as outlined therein. B. Effective as of February 5, 2012, incentive rates shall be set forth in Exhibit “B”, attached hereto and made a part hereof, and shall be implemented as outlined therein. Section 2. Occupations Employees within the bargaining unit shall be assigned and classified by occupations. Occupations and other labor grades applicable therein shall be set forth in Exhibit “C”, attached herein and made a part hereof, effective on and after February 5, 2012. Section 3. Job Descriptions A. The occupational summary in each job description shall be construed to be a brief description of the occupation as a whole and is intended to distinguish that occupation from other occupations. The statement of the operation, i.e., work requirements in each job description, is intended to establish levels of difficulty and provides the basis for determining the appropriate labor grade for the occupation when interpreted and applied as hereinafter provided. B. Where work assignments are not adequately or specifically described, such work assignments shall be appraised and accordingly classified under the most appropriate occupation by considering the relative degree of complexity or the level of difficulty of such work assignments. See paragraph F of this Section 3. C. Unless otherwise expressly stated in the job description, an employee shall not be required to perform all of the work operations described in the job description in order to be eligible for classification thereunder. However, an employee shall not be eligible for classification under a job description by reason of performing a few isolated or singular duties which are included in such job description. D. An employee is required to perform the work operations, duties and other distinguishing functions described in a job description under that degree or amount of supervision or instruction which is considered usual and normal in order to qualify for classification thereunder. E. Any employee who is assigned to job duties which are normally performed by higher rated employees shall be upgraded to the appropriate higher-rated job provided he has sufficient seniority. If not, then the most senior employee shall be promoted in accordance with Article IX of this agreement. Whenever possible, work in a higher-rated occupation shall be assigned to the most senior available employee capable of performing such work. 7 F. The Union and Company will establish a committee made up of a like number of management employees and bargaining unit employees to evaluate all job descriptions to reflect the jobs that are actually being performed. No job will be downgraded as a result of this committees’ actions. The Company and the Union shall also establish a committee consisting of two (2) appointees each to function as a job qualification committee. This committee shall be empowered to review and establish the requirements and qualifications necessary for an individual to be deemed qualified to begin a reasonable qualification period to demonstrate his ability to perform the duties of the occupation. Section 4. Work Assignments A. Departmental Transfers – When the Company transfers individual employees or groups of employees from one department to another, consideration will be given to seniority. Should an employee believe proper consideration has not been given, the supervisor will meet with the Union and the employee to explain the reason(s) for the transfer. Nothing herein, however, will prevent the Company from transferring employees to another department for production reasons when such transfers do not entail a change in classification, job family or rate of pay. B. Shift Transfers - An employee may give written notice of his desire to transfer to another shift in the same job classification and department at any time following the expiration of his first six (6) months on such occupation, job assignment or shift. If the employee has sufficient seniority, the Company shall, within fifteen (15) working days, effect such transfer by displacement, if necessary, of the least senior employee in the occupation. Any employee who is promoted or transferred to a new department shall be entitled to make a written request, within the first five (5) consecutive working days on his new assignment, for reassignment within the same occupation and department to a different shift or his preference on which such occupation is in use. If the employee has sufficient seniority, the Company shall effect such desired transfer within ten (10) working days after receipt of such request, by displacement of the least senior employee in the same occupation and department on the shift desired. C. Employees who desire to transfer to any other shift, when an opening and/or vacancy occurs in the same occupation within the department, may give written notice no later than fifteen (15) working days prior to the transfer. An employee can terminate his/her written notice no later than five (5) working days prior to the transfer date. Employees being added or replaced within a department and shift will constitute an opening/vacancy. Senior qualified employees requesting transfer will be granted transfer as openings/vacancies occur. D. The Company may transfer employees to other shifts within their respective occupations and departments whenever it becomes necessary to build up or properly balance an adequate working force. However, any such employee may return to his former shift as soon as a qualified employee is available to replace him provided he possesses sufficient seniority within his department and occupation. E. When it becomes necessary to assign an employee to another shift, because of special ability, such assignment shall be considered as temporary, and the employee shall have the right to return to his former shift when conditions justifying his temporary assignment cease to exist. 8 Section 5. Creation of Occupations A. New or Revised Existing Occupations It is recognized that changing conditions and circumstances resulting from the introduction of new products, or changes in equipment or tooling, or in the method of processing, or in the materials processed, or in standards of quality may require the determination of the proper occupation to be applied or established. Under such circumstances, the Company will describe the work performed in the new or changed occupation, and by the application of the existing job evaluation plan in effect for such purpose, will establish a new or revised occupation, sufficient copies of which shall be furnished to the Union for distribution to the committeepersons requiring them in their departments. The new or revised occupation so developed, together with the applicable hourly wage rate, may be put into effect by the Company and the employees assigned to such occupation shall be paid accordingly. When hourly wage rates are so established and made effective for such new or different occupation, the employee or employees affected shall be notified in writing or by bulletin board announcement. Any employee so affected, or the Union, may within thirty (30) days from the date of notification, file a grievance alleging that the hourly wage rate assigned to such new or different occupation does not bear a fair relationship to hourly wage rates for other occupations in effect by operation of the Job Evaluation Committee referred to in Section 3-F of this Article. If no grievance is filed with the Company within the time limit specified above, hourly wage rates so established shall be considered to be fair and equitable, and such hourly wage rates for such occupation shall remain in effect except as otherwise provided in this agreement. B. Combination of Occupations If two or more existing occupations are combined or consolidated, the resulting newly-created occupation shall not be considered to create an increase in the working force or to present an opportunity for recall or promotion under the provisions of Article IX of this agreement, unless and until employees are required for openings in the newly-created occupation in addition to the incumbents of the combined occupations. No such incumbent of one of the combined occupations shall be subject to displacement from the newly-created occupation by senior laid-off employees who held equity or enjoyed recall rights to any other combined occupation prior to the combination. Should the above occur and two (2) or more occupations are combined or consolidated, the higher rate of the existing occupations will apply for the new occupation. When openings occur in the newly-created occupation after the combination, employees on layoff from each of the combined occupations shall be eligible for occupational recall to such openings in accordance with seniority, in accordance with Article IX, Section 9, of this agreement. Incumbent employees of existing occupations which are combined and employees recalled to a newlycreated occupation under the occupational recall provisions of Article IX, Section 9, shall be afforded reasonable training in those duties and functions of the newly-created occupation which were not included within the scope of the combined occupation to which they were previously assigned, and no such employee shall be disqualified without an opportunity to acquire the knowledge and familiarity necessary to perform such duties and functions, with a reasonable instruction/training period to demonstrate he can perform the work at an efficient level under normal supervision and instruction. 9 All currently outstanding bids filed under Article IX, Section 11, of the labor agreement on any existing occupation which is combined or consolidated shall be null and void, effective immediately. Employees who continue to desire to express an interest in the duties or functions in question may file a job preference card for the applicable newly-created occupation, subject to the conditions of Article IX, Section 11. Section 6. Limitation on Arbitrator If any grievance under Section 5 hereof is submitted to arbitration in accordance with Article VIII, the decision of the arbitrator shall be governed by the principle that the new rate shall bear a fair relationship to rates for other occupations’ duties covered by existing job descriptions in effect in the plant by operation of Job Evaluation Committee referred to in Section 3-F of this Article. Section 7. Automatic Progression A. Effective as of February 5, 2012, employees in all occupations shall be compensated in accordance with the progression schedules set forth in Exhibit “A” attached. Progression within the schedule shall be automatic at the intervals and in the amounts set forth therein. B. An employee who is recalled from layoff shall be placed on the progression schedule for the occupation to which he/she is recalled, at the step having the rate closest to the rate received when last on permanent assignment; or the rate of the occupation currently held, whichever is higher. If the recalled employee has never previously held such occupation, he/she shall be placed on the progression schedule at the maximum rate for such occupation recalled to or at the rate closest to the rate which he/she was paid in the occupation he/she last held when last on the active payroll prior to being laid off, whichever shall be lower. Whenever used in this paragraph B, the term “rate” shall be interpreted to include the cost-of-living adjustment payable at the time of recall or at the time of layoff, whichever shall be applicable. C. An employee who is promoted shall be placed on the progression schedule for the newly-received occupation either at: • • the rate which he/she was paid in the job from which promoted plus twenty cents ($.20) for each increase in labor grade not to exceed the rate of one progression step from the maximum of the newly-received occupation or at the minimum rate for the newly-received occupation, whichever shall be higher. Employees will receive a minimum of sixty cents ($.60) per hour rate increase for a promotion provided the increase does not exceed the maximum rate for the newly-received occupation. Employees with at least fifteen years seniority will receive the maximum rate of the newly-received occupation. D. Any employee who displaces another employee by the exercise of seniority bumping rights under this agreement shall be placed on the progression schedule for the occupation so acquired either at the step having a rate closest to the rate he/she was paid in the occupation from which he/she exercised such seniority rights, or at a maximum rate of the occupation which he/she so acquires, whichever is lower. 10 Section 8. Improper Occupational Assignment Any claim of improper occupational assignment shall be subject to the provisions of this Section. If such a claim is not filed with the company within six (6) working days after such assignment becomes effective and the employee is notified in writing thereof, the employee shall not receive retroactive pay for any period prior to the date of filing such claim. If such claim is filed with the company within six (6) working days after such assignment becomes effective and the employee is notified in writing thereof, and if it is determined either by the Company or by arbitration in accordance with the established grievance procedure that the employee should have been in a higher occupation, the employee shall be paid a retroactive adjustment based upon the difference between the wages actually paid and the amount, determined as stated above, the employee should have been paid, from the date when the reclassification shall have been made effective. Section 9. Cost-of-Living Adjustment A. A cost-of-living adjustment shall be provided for all employees covered by this agreement in the manner specified in Paragraph B of this Section 9, based upon changes, if any, in the Consumer Price Index (January 1987 Revision) for Urban Wage Earners and Clerical Workers (1982-1984 = 100) (CPI-W) United States City Average, all items published by the Bureau of Labor Statistics of the U. S. Department of Labor, and based upon the 1982-1984 consumer expenditure survey, hereinafter called the “index”. B. A total of sixteen (16) cost-of-living adjustments shall be determined and made effective the start of the first pay period of each of the following months: February 2012; May 2012; August 2012; November 2012; February 2013; May 2013; August 2013; November 2013; February 2014; May 2014; August 2014; November 2014; Feburary 2015; May 2015; August 2015, and November 2015. Such adjustments shall provide one cent ($0.01) per hour for each full three-tenths (.3) point change in the Index on a quarterly cumulative basis, measured by the change in the Index from the base month. The base month for all adjustment dates shall be September 2011 (the September 2011 Index as published in October 2011). The calculation for the initial adjustment shall commence beginning on or after February 1, 2012. The amount payable shall be calculated by measuring the change in the December 2011 Index (which is published in January 2012) against the September 2011 base month, as defined above and as calculated above on a quarterly cumulative basis. C. No adjustment, retroactive or otherwise, shall be made because of any revision which hereafter may be made in the published figures for the Index for any month or in the present form of the Index or on the basis upon which the same is now calculated. However, if the Index in its present form should be discontinued, or the basis of its calculations should be revised, the parties shall attempt to agree upon a revision of the formula for computing the amount of the cost-of-living adjustment, as set forth in Paragraph B of this Section. Failing agreement thereon, they shall request the Bureau of Labor Statistics to provide a conversion or adjustment of the data upon which such formula is based, which upon receipt shall be applied as of the relevant effective date hereunder. D. The cost-of-living adjustment, if any, shall be paid to employees as an add-on amount, and shall not be considered to be a part of the hourly wage rate structure. 11 ARTICLE IV SHIFT DIFFERENTIAL Section 1. Second Shift All employees on the second shift shall receive a seventy-five cents ($0.75) per hour night differential. Section 2. Third Shift All employees on the third shift shall receive a ten cents ($0.10) per hour night differential for eight (8) hours, and shall work only six (6) hours and thirty (30) minutes for eight (8) hours pay. Section 3. Employees Working Alternative Work Weeks Employees assigned to an alternative workweek under Article V, Section 1B, of this agreement shall receive a second shift premium of seventy-five cents ($.75) per hour provided that their shift commences at or after 4:00 p.m. and prior to 8:00 p.m. No alternative work week shift shall be considered as a third shift. 12 ARTICLE V HOURS OF WORK AND OVERTIME Section 1. Normal Work Week A. The normal work week shall consist of forty (40) hours of five (5) consecutive days, Monday through Friday. B. The Company may elect to schedule any employee or group of employees, or any shift(s), department or group of departments on an alternative work week consisting of either (i) forty (40) hours of four (4) consecutive ten (10)-hour days, or (ii) thirty-six (36) hours of three (3) twelve (12)-hour days. Should some but less than all of the employees in a job classification, department or shift be needed on either such schedule, assignments shall be made in the order of seniority within the affected classification, department or shift. The company will not schedule a 4/10 and a 5/8 work week in the same department and occupation. C. On any shift, eight (8) hours shall be worked within eight and one-half (8½) consecutive hours. D. The standard day shall be from the beginning of the established regular shift to the beginning of the same shift next day. The Company will not change an employee’s regular shift starting time without changing the starting time for all other employees within the department and shift. Exceptions to individual employee’s starting times within a department can be made on mutual agreement between the director of employee relations, union president and union business representative. Whenever the Company deems it necessary to change the shift’s starting time without changing the starting time for all other extended work days, employees not desiring to work the extended schedule shall maintain the regular shift starting time. E. The present established shifts will not be changed without prior consultation with the Union and ten (10) working days’ notice shall be given to the Union and employees prior to the effective date of any shift change. F. This Section shall not be construed as a guarantee of hours of work per day or per week. G. Straight Time Before Overtime Rule Should an employee have an absence during the normal scheduled work week, the following matrix shall be used to determine whether said time not worked will be credited toward the 40 hours (for employees working the 5x8 and 4x10 work weeks) or 36 hours (for employees working the 3x12 work week) necessary for an employee to be paid overtime in accordance with the other provisions of Article V: 13 Reason for Absence Overtime rule Employee Returns from Department 251/S&A Employee returns from treatment due to Workers Compensation related injury New Hire/Recalls Reports During Week Military Leave Reinstatement Employee Initiated F.M.L.A. Funeral Leave Jury Duty Vacation and/or Vacation Shut Down Paid Personal Days Company Convenience No Pay - Excused or Unexcused (Code 1, 5, 12, 13, 24) Approved Union Business No Credit Given Credit Given No Credit Given Credit Given Credit Given Credit Given Credit Given Credit Given Credit Given Credit Given No Credit Given Credit Given Section 2. Overtime A. Employees Assigned to 5 x 8 Work Week (a) Time and one-half of the regular rate of pay for all time worked in excess of eight (8) hours on a regularly scheduled work day, except for employees regularly assigned to the third shift, who shall receive time and one-half for hours worked in excess of six and one-half (6½) hours in any one (1) day; (b) Time and one-half of the regular rate of pay shall be paid for the first eight (8) hours worked on Saturday, provided the employee has worked the requisite number of hours as set forth in Section 1, G above. (c) Two (2) times the regular rate of pay shall be paid for all hours worked in excess of twelve (12) on a regularly scheduled work day. (d) Two (2) times the regular rate of pay shall be paid for all hours worked on Sunday and all hours in excess of eight (8) hours on Saturday, provided the employee has worked the requisite number of straight time hours as set forth in Section 1, G above. B. Employees Assigned to 4 x 10 Work Week (a) Two (2) times the regular rate of pay shall be paid for all hours worked in excess of ten (10) hours on a regularly scheduled work day within the alternative workweek. (b) Time and one-half of the regular rate of pay shall be paid for the first eight (8) hours worked on the fifth and sixth consecutive work days in the alternative work week, provided the employee has worked the requisite number of hours as set forth in Section 1, G above. (c) Two (2) times the regular rate of pay shall be paid for all hours worked the seventh consecutive work day and all hours in excess of eight (8) hours on the fifth and sixth consecutive work day within the alternative work week, provided the employee has worked the requisite number of straight time hours as set forth in Section 1, G above. 14 C. Employees Assigned to 3 x 12 Work Week (a) Time and one-half of the regular rate of pay for the ninth and tenth hours worked on a regularly scheduled work day. (b) Time and one-half of the regular rate of pay shall be paid for the first eight (8) hours worked on the fourth, fifth and sixth consecutive work days in the alternative work week, provided the employee has worked the requisite number of hours as set forth in Section 1, G above. (c) Two (2) times the regular rate of pay shall be paid for all hours worked in excess of ten (10) hours on a regularly scheduled work day within the alternative work week. (d) Two (2) times the regular rate of pay shall be paid for all hours worked the seventh consecutive work day and all hours in excess of eight (8) hours on the fourth, fifth and sixth consecutive work day within the alternative work week, provided the employee has worked the requisite number of straight time hours as set forth in Section 1, G above. D. Nothing contained in this agreement shall be construed as requiring the payment of more than double time. Section 3. Assignment of Overtime The assignment of overtime shall be subject to the following provisions. A. Records of paid overtime hours worked or refused shall be kept by occupation by shift within departments for the purpose of distributing overtime work as equitable as possible by occupation on each shift within the department. For such recording purposes, actual hours worked or refused on overtime and holidays shall be multiplied by one and one-half (1½) or, with respect to overtime hours only, any appropriate higher overtime rate. These records will be kept on the departmental supervisor’s desk and will be made available to all departmental employees. B. Employees who are transferred to a job in the same occupation on a different shift or in a different department, shall be credited, for record purposes only, with an amount of overtime equal to the average recorded overtime at the time he is transferred to his new department and occupation. All transfers shall become effective on Mondays with the exception of shift transfers or employees assigned to occupations in departments established by Section 1-B of Article V, unless otherwise mutually agreed to by management and the Union. Employees who are transferred to a job in a different occupation and all newly-hired employees shall be credited, for record purposes only, with an amount of overtime equal to that of the employee with the highest recorded overtime in the same department, occupation and shift as the transferred or newly-hired employee at the time he is transferred. In the case of a new hire, he shall assume the overtime hours of the employee with high recorded overtime in his occupation, department and shift, at the time he actually starts to work. Employees returning to work after a period of illness or layoff (including disciplinary layoff), or disqualification exceeding nine (9) working days or being returned to his/her last held occupation following a disqualification shall be credited, for record purposes only, with an amount of overtime equal to that of the employees with the lowest recorded overtime in the same occupation and department on their 15 shift, on the day the employee returns. However, in no event shall an employee returning from layoff or illness acquire fewer hours than he had recorded prior thereto. C. The company will prorate overtime as equally as possible between 1st , 2nd and 3rd shifts on the 5x8 work week; between 1st and 2nd shift on the 4x10 work week; and between 1st and 2nd shift on the 3x12 work week. The Company shall work with the Union to insure that employees of a department, regardless of shift, shall have similar overtime opportunities. Whenever the Union feels that overtime opportunities between the various shifts of a department are dissimilar, they shall notify the Manager of Human Resources of the Union’s concern. When it is determined that an imbalance does exist, the Company shall institute a plan to insure that the imbalance is corrected as soon as possible. No employee from a shift, department and occupation shall be allowed to work more than sixteen (16) hours in any twenty-four (24)-hour period. D. Assignment of overtime will be made in such a manner that the employee with the least amount of recorded overtime and who has the necessary ability and is capable of performing the work shall be given preference of overtime assignment. Should such available employee refuse to work overtime, he shall be recorded with the number of hours for which he would have been paid. The next available employee will then be offered such overtime. If the required number of employees do not accept to work the overtime in question, the necessary employees will be required to work. The following provisions will apply to required overtime: (a) Employees may be required to work overtime assignments Monday through Saturday, but no employee will be required to work more than two (2) consecutive Saturdays. Employees will not be required to work a Sunday overtime assignment. (b) Employees shall not be required to work more than two (2) hours overtime on any regularly scheduled work day, or eight (8) hours overtime on Saturday. (c) Employees required to work on a regularly scheduled day off shall be notified of said requirement at least 36 hours in advance. (d) Employees required to work overtime at the end of the current shift shall be notified of said overtime at least 4 hours prior to the end of the shift. E. In determining overtime assignments for the 5 x 8 work week, the following steps are to be followed: Step 1 - Employees with the least amount of recorded overtime hours in the department, occupation and shift where the overtime work is needed will be asked. If additional need still exists, employees assigned to the occupation, department and shift, who are absent for reasons other than vacation, long-term sick leave, paid funeral leave or pre-approved paid personal leave day shall be called and given the opportunity to work overtime before proceeding to Step 2. Employees who are asked to work overtime within their occupation, department and shift, shall be charged with the overtime opportunity regardless of their decision to work or not to work. Employees who are called at home and cannot be reached shall not be charged for the overtime opportunity. 16 Step 2 - Employees with the least amount of recorded overtime hours in the same department and occupation from the preceding shifts, who have not been asked to work on their assigned shift, will be offered the overtime in question. It is understood that eligible employees from the preceding shift shall be exhausted prior to asking eligible employees in the next preceding shift. Step 3 - Employees in the same occupation and shift from any different department assigned to the same project or program that the company considers to have the necessary ability to perform the work needed, who have not been asked to work in his assigned department and shift, will be called upon to work. Step 4 - Once the above steps have been exhausted and the Company deems a need still exists for additional employees to work overtime, the Company may select any other employee on that shift and in that occupation for which the overtime need exists. Step 5 – If the required number of employees needed for overtime are not available after exhausting Steps 1 through 4, the Company may exercise the provisions in Section D above. F. In determining overtime assignments for the 3 x 12 work week, the following steps are to be followed: Step 1 – If an overtime need of more than four (4) hours exists during a 3 x 12 work week, employees in the same occupation, department, on an equivalent 4 x 10 work week with the least amount of recorded overtime hours will be given the entire overtime assignment with the exception of employees on long term sick leave, vacation, paid funeral leave or pre-approved paid personal leave. Employees who are asked to work overtime within their occupation and department shall be charged with the overtime opportunity regardless of their decision to work or not to work. Employees who are called at home and cannot be reached shall not be charged for the overtime opportunity. Step 2 – Employees in the same occupation and department on the other 4 x 10 work week with the least amount of recorded overtime hours will be given the opportunity, with the exception of those employees on long term sick leave, vacation, paid funeral leave or pre-approved paid personal leave. Employees who are asked to work overtime within their occupation and department shall be charged with the overtime opportunity regardless of their decision to work or not to work. Employees who are called at home and cannot be reached shall not be charged for the overtime opportunity. Step 3 – Employees with the least amount of recorded overtime hours in the same department and occupation from the other 3 x 12 work week will be offered the overtime in question. Step 4 – Once the above steps have been exhausted and the company deems a need still exists for additional employees to work overtime, the Company may select any other employee on that shift and in that occupation for which the overtime need exists. Step 5 – If the required number of employees needed for overtime are not available after exhausting Steps 1 through 4, the Company may exercise the provisions in Section D above. 17 G. In determining overtime assignments for the 4 x 10 work week, the following steps are to be followed: Step 1 – If an overtime need of more than four (4) hours exists during a 4 x 10 work week, employees in the same occupation, department, on an equivalent 3 x 12 work week with the least amount of recorded overtime hours will be given the entire overtime assignment with the exception of employees on long term sick leave, vacation, paid funeral leave or pre-approved paid personal leave. Employees who are asked to work overtime within their occupation and department shall be charged with the overtime opportunity regardless of their decision to work or not to work. Employees who are called at home and cannot be reached shall not be charged for the overtime opportunity. Step 2 – Employees in the same occupation and department on the other 3 x 12 work week with the least amount of recorded overtime hours will be given the opportunity, with the exception of those employees on long term sick leave, vacation, paid funeral leave or pre-approved paid personal leave. Employees who are asked to work overtime within their occupation and department shall be charged with the overtime opportunity regardless of their decision to work or not to work. Employees who are called at home and cannot be reached shall not be charged for the overtime opportunity. Step 3 – Employees with the least amount of recorded overtime hours in the same department and occupation from the other 4 x 10 work week will be offered the overtime in question. Step 4 – Once the above steps have been exhausted and the Company deems a need still exists for additional employees to work overtime, the Company may select any other employee on that shift and in that occupation for which the overtime need exists. Step 5 – If the required number of employees needed for overtime are not available after exhausting Steps 1 through 4, the Company may exercise the provisions in Section D above. Overtime will be distributed as called for in the labor agreement. In the event the spread of overtime hours is eight (8) hours and above as of the time of the assignment, the error will be corrected by the employee being offered the next overtime assignment until the number of hours worked is equal to the number of hours missed. In the event the spread in overtime hours is less than eight (8) hours as of the time of the assignment and an honest error has been made in the assignment, the subject will not be the matter of an arbitration. In the event the overtime hours are equal, the company will ask by seniority and this eight (8)-hour rule will apply. In the event that the assigning supervisor is advised of an error in the assignment of overtime at least one (1) hour prior to end of shift and no steps are taken to correct same, then the error in assignment will be corrected by payment. The eight (8)-hour spread as mentioned above is not to be used as a basis on which to assign overtime. Where there is an unmanned shift in a department, if overtime is to be worked, it will be prorated between the two (2) operating shifts. 18 If management is required to attempt to contact an employee at home for purposes of determining his interest in working overtime, it is understood that the employee himself must accept or reject the overtime and that only one (1) call shall be made. If an employee is asked to work overtime on his regularly-assigned shift and occupation, and turns the overtime opportunity down, that employee shall not be asked for any other overtime opportunity on any other shift, department or occupation during the day in which he turned the overtime down. Employees who are asked to work overtime outside their department and/or occupation and refuse the overtime, will not be charged. Employees who accept overtime outside their department and/or occupation will be charged in their home department for the overtime hours worked. Employees who are scheduled for vacation will be offered overtime prior to their vacation time off in accordance with and subject to all overtime provisions of the labor agreement. If they accept the overtime assignment, they will be charged with the overtime hours accepted. If they reject the overtime assignment, they will not be charged as having rejected it. Employees will not be offered future overtime assignments until they actually return to work following their vacation. After offering an employee the opportunity to work overtime, the supervisor will have the employee sign the form 8996 in the employee signature column. If an employee refuses to sign the hourly overtime form, the departmental committeeperson will initial the form as such and this will be considered as the employee rejecting the overtime. All overtime worked will be charged to the employee’s occupation, department and shift. An employee who is solicited for overtime shall not be able to change his mind after 30 minutes before the end of his shift. H. Employees who accept overtime assignments and who do not report shall be considered absent for the purposes of absenteeism control and shall be subject to the same disciplinary consequences applicable to absences during regularly scheduled hours of work. Employees who are on Military Leave or Jury Leave will not be charged for such weekend overtime assignments if they were not aware of such Military or Jury Duty obligations at time of accepting overtime; if known in advance by the Company that employees will be on Military or Jury Duty assignment, the Company will be under no obligation or incur any penalty for failure to ask such employee to work such available overtime as they might otherwise be entitled under this Article V. I. When it becomes necessary for employees covered by this Agreement to work overtime, they shall not be laid off during regular working hours to equalize the time. J. When an employee is asked to work overtime and the employee accepts the assignment, he shall work in the department and occupation for which he accepted the overtime. In the event there is a mechanical failure, absenteeism unknown to the Company, parts delay, as a result of the above circumstances or acts of God, the Company may loan employees, by first seeking a volunteer, if none, then selecting the least senior qualified employee at work, in the department and occupation from where the loan is being made. The loan out of the employee outside his occupation on overtime shall not exceed the time necessary to call an employee in to work and for him to report for such assignment. The call-in process shall begin at the time the loan is made. 19 Section 4. Weekend Overtime A. Assignment of Weekend Overtime 1. When it is necessary to work Saturday overtime, but Sunday work is in doubt, employees with the lowest number of overtime hours who have the necessary ability and are qualified to perform the work are to be given preference to work the Saturday overtime. If it is determined on such Saturday that Sunday overtime is required, the employees with the lowest number of recorded overtime hours who are working on Saturday, in their department, shift and occupation, will be offered the opportunity to work. If additional employees are needed, employees from the department, shift and occupation will be called. Thereafter, employees working on Saturday in the department and occupation but from a different shift will be asked. If additional employees are still required, employees from the preceding shifts, department and occupation who have not been asked to work overtime, will be asked in accordance with accumulated overtime hours. After all employees from the department and occupation have been asked, then any qualified employee in the occupation at work will be offered the overtime opportunity before going outside the occupation. 2. When it is known that both Saturday and Sunday weekend overtime is to be worked, management shall provide the opportunity to work both days of the weekend overtime assignment to the low-hour overtime employees as of the day the overtime opportunity is being asked, within the occupation, department and shift that the work is to be performed on. Such employee shall have the right to elect to accept or reject the overtime opportunity in part or in whole. Remaining weekend overtime opportunities shall continue to be asked in accordance with the provisions of Section 4 of this Article. This provision does not apply to holiday or mini-vacation overtime opportunities. B. Charging of Weekend Overtime Employees who refuse Saturday overtime when asked to work on Saturday only will be charged for Saturday only. However, such an employee shall be charged for Sunday if he works or refuses such overtime after being asked on Saturday to work Sunday. C. Variations In Overtime Assignments And Mini-Vacation Overtime The manner of assigning overtime as spelled out in Article V, Section 4, may be altered by agreement between the company and the union covering a particular department and/or group. Such variations as approved by two-thirds majority of employees in the occupation and department on the shift to be valid must be signed by the departmental superintendent and the manager of Human Resources and the union president and/or business representative, the plant grievance committeeperson and the departmental committeeperson. Such agreements shall remain in effect until disapproved by either party to the agreement. If it becomes necessary to ask for additional overtime after the start of the mini-vacation period, employees will be asked based on the lowest overtime hours which exist at the end of the period. No recasting of hours will be done during this period. 20 Section 5. Call Time In the event an employee is called back to work at any time outside his regular shift hours during the normal work week, as defined in Section 1, Paragraph A of this Article V, after he has completed his scheduled hours and after leaving the plant, or in the event that he is called to report for work on Saturday at a time which is inconsistent with the beginning of his established regular shift, as defined in Section 1, Paragraph D, Article V, he shall be guaranteed at least two (2) hours work at double time, or pay in lieu thereof, and shall be paid the designated overtime rate for all such work after the first two (2) hours on the same such standard day, if any. When the Company finds it necessary to call an employee for overtime or call back an employee who has left the plant, the Company representative attempting to contact the employee will utilize the departmental committeeperson first; if he isn’t available, they will utilize the alternate departmental committeeperson; if he isn’t available, they will utilize another hourly employee. The departmental committeeperson or another employee so utilized will verify the call in writing on a sheet provided by the Company. A departmental committeeperson or alternate departmental committeeperson shall be considered available if he is at work within his department. Section 6. Reporting Time In the event an employee appears for work, unless he was previously notified not to report, he shall receive at least four (4) hours work or pay at the appropriate rate of the day reporting in lieu thereof. This will not apply where an employee was absent from work the previous working day, provided the Company makes a reasonable effort to communicate with the absent employee, or in case of emergency shutdown arising out of conditions over which the Company has no control. Section 7. Pay Day Through the pay day on June 1, 2012, the pay day shall normally be on Friday of each week and paychecks will be distributed during working hours to those employees at work, at which time the employee shall be paid through the preceding Sunday. However, employees working the second shift shall be paid on Thursday night sometime during the shift unless the employee(s) was absent from work the preceding Friday; if so absent, such employee(s) shall be paid on Friday sometime during the second shift working hours. Employees absent on payday may pick up their paycheck on pay day at the Human Resources Office. Paychecks shall be available in the Human Resources Office from 8:00 a.m. until 11:30 a.m., and from 12:30 p.m. until 3:30 p.m. on Friday. Paychecks shall be available from 12:30 p.m. until 3:30 p.m. on Thursday for employees who have excused absences authorized for the remainder of the work week. However, if employees abuse this right, the parties shall discuss the matter with the intent of reaching further understandings which will correct the abuse. Effective as of the pay day on June 8, 2012, payments made to employees for hours worked (wages), vacation, paid personal days, etc., will be made by direct deposit into an account designated by the individual employees. 21 ARTICLE VI HOLIDAYS Section 1. Holidays and Days Off with Pay The following shall be recognized holidays under this Agreement: Holiday New Year’s Day Martin Luther King Jr. Day Good Friday Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Year End Holiday 2012 2013 2014 2015 2016 1-Jan 20-Jan 18-Apr 26-May 4-Jul 1-Sept 27-Nov 28-Nov 24-Dec 25-Dec 26-Dec 29-Dec 30-Dec 31-Dec 1-Jan 19-Jan 3-Apr 25-May 3-Jul 7-Sep 26-Nov 27-Nov 24-Dec 25-Dec 28-Dec 29-Dec 30-Dec 31-Dec 1-Jan 18-Jan 6-Apr 28-May 4-Jul 3-Sept 22-Nov 23-Nov 24-Dec 25-Dec 26-Dec 27-Dec 28-Dec 31-Dec 1-Jan 21-Jan 29-Mar 27-May 4-Jul 2-Sept 28-Nov 29-Nov 24-Dec 25-Dec 26-Dec 27-Dec 30-Dec 31-Dec Section 2. Eligibility In order to be eligible for holiday pay for any recognized holiday hereunder, an employee must meet the following requirements: A. The employee must have at least six (6) weeks of seniority as of the date of the holiday. B. The employee must have worked the last scheduled work day prior to the holiday and the next scheduled work day after the holiday unless he is on vacation, pre-approved personal day or a required absence of short duration for a definite period due to lack of work. If absent for either of these reasons, he will be paid for the holiday provided he worked the last day he was scheduled to work prior to the holiday and the first day he was scheduled to work following the holiday. In the event an otherwise eligible employee’s first day of layoff or first day of work following recall falls within the period of five (5) scheduled work days immediately preceding or immediately following a holiday, he will be paid for the holiday, notwithstanding the foregoing. Notwithstanding the requirements set forth above in this Paragraph B, if an employee reports but fails, without Company permission, to complete the full schedule of hours on either the last scheduled work day before the holiday or the first scheduled work day after the holiday, he/she shall, if otherwise eligible, 22 receive pay for the holiday less a deduction equal to the employee’s rate of pay (including COLA) multiplied by the scheduled time (to the nearest tenth of an hour) which the employee failed to work. C. The employee shall receive holiday pay if he was absent from work on the last scheduled work day prior to, or the next scheduled work day after the holiday, or both, due to a compensable injury or due to a death in his immediate family, provided he has the necessary seniority and has worked at least one (1) day in the week in which the holiday occurred. His immediate family shall consist of a husband, wife, child, parent, brother, sister, grandparents, grandchildren, mother-in-law, father-in-law, son-in-law, daughter-inlaw, brother-in-law or sister-in-law. D. The employee shall receive holiday pay if he is absent due to personal illness supported by a medical certificate acceptable to the Company, provided, however, the employee has not been on sick leave more than thirty (30) days prior to the holiday. E. The employee shall receive holiday pay if he is absent from work on the last scheduled work day prior to or the next scheduled work day after the holiday, or both, for reasons other than those stated in Paragraphs C and D above, provided he has a reason acceptable to the Human Resources Department. Section 3. Working on a Holiday A. Employees who may be requested to and do work on any of the above holidays shall be compensated at the rate of double time for hours worked on the holiday. In addition thereto, they shall receive holiday pay providing they are otherwise eligible under the provisions of Section 1 of this Article. B. Employees who have accepted holiday assignments and then fail to report for and perform such work without reasonable and proper cause, including compensable injury, death in the immediate family, and personal illness supported by a medical certificate, shall not receive any pay for the holiday. An employee who is scheduled and reports for work on a holiday but who fails to complete the hours so scheduled shall be subject to a deduction from the holiday pay otherwise payable to him/her in an amount equal to the employee’s straight-time rate of pay (including COLA) multiplied by the scheduled time (to the nearest tenth of an hour) which the employee failed to work. Section 4. Holiday Pay Computation A. Holiday pay for a hourly employee shall be computed by multiplying his applicable hourly rate by eight (8); provided, that in the case of employees assigned to an alternative work week under Article V, Section 1, Paragraph B, of this Agreement, the hourly rate shall be multiplied by the number of regularlyscheduled daily hours worked by such employees if the holiday falls on one of their regularly-scheduled work days. B. Overtime premiums shall be excluded from all holiday pay computations. C. Night shift differentials, if any, shall be included in all holiday pay computations. Shift differentials for holiday pay computations will be determined by the shift that the employee last worked on during the week of the holiday. 23 Section 5. Changing the Holiday The Company and the Union may, by mutual agreement, change the day that will be observed as the holiday. 24 ARTICLE VII VACATIONS Section 1. Vacation Shutdown and Season Annual vacations will be granted employees by the Company in accordance with the following regulations: A. Plant vacation shutdown will occur during the term of this agreement as follows. The company will declare no more than ten (10) working days shutdown in any contract year. Employees eligible for vacations, except those required to work, shall be required to take their vacations during such shutdown period. Notification of a shutdown or the requirement to work during the shutdown periods set forth below shall be given at least thirty (30) days prior to the shutdown period. CONTRACT YEAR DATES OF SHUTDOWN TOTAL NUMBER OF DAYS January 2012 – December 2012 July 2, 3, 5, 6 November 19, 20, 21 7 January 2013 – December 2013 July 1, 2, 3, 5 November 25, 26, 27 December 23 8 January 2014 – December 2014 June 30 July 1, 2, 3 November 24, 25, 26 7 January 2015 – December 2015 January 2 June 29, 30 July 1, 2 November 23, 24, 25 8 B. The normal “vacation season” in which vacations will be granted, if no plant shutdown has been scheduled by the Company as outlined in subsection A, above, shall be from the first pay period commencing after June 1, to the last full pay period prior to May 31. If no vacation shutdown period is scheduled by the Company during a current year, vacations will, as far as possible, be granted at times most desired by the employees. The right to schedule an employee’s vacation period is reserved by the Company in order to insure the orderly and efficient operation of the plant or any department or section thereof. Plant-wide seniority shall govern as far as possible in the selection of dates and thirty (30) days’ notice will be given whenever possible. Employees who are eligible for vacation will be guaranteed time off if they so desire. 25 Section 2. Vacation Eligibility A. Each employee who was on the company’s payroll register at the end of his regular shift on May 31, 2012 (succeeding years likewise) and who has established at least six (6) months and not more than ten (10) years of seniority by having been employed on or before June 1, or the first Monday in June in the event May 31 falls on Friday or Saturday, and who was an active employee for at least 6 months in the year prior to June 1, shall receive eighty (80) hours of vacation during the following vacation season. B. Each employee who was on the company’s payroll register at the end of his regular shift on May 31, 2012 (succeeding years likewise) and who has established at least ten (10) years and not more than twenty (20) years of seniority by having been employed on or before June 1, or the first Monday in June in the event May 31 falls on Friday or Saturday, and who was an active employee for at least 6 months in the year prior to June 1, shall receive one hundred and twenty (120) hours of vacation during the following vacation season. C. Each employee who was on the company’s payroll register at the end of his regular shift on May 31, 2012 (succeeding years likewise) and who has established at least twenty (20) or more years of seniority by having been employed on or before June 1, or the first Monday in June in the event May 31 falls on Friday or Saturday, and who was an active employee for at least 6 months in the year prior to June 1, shall receive one hundred and sixty (160) hours of vacation during the following vacation season. D. The vacation pay allowances will be computed at the employee’s regular base hourly rate of pay, including shift differential, but exclusive of all premiums or overtime allowances. Section 3. Vacation Scheduling A. Up to forty (40) hours of vacation may be carried over into the next vacation year. At the end of the vacation year an employee will receive pay for their remaining hours of unused vacation above the maximum carry-over amount. Vacations can be taken in full calendar weeks and in successive weeks or taken one day at a time. Up to forty (40) hours of vacation may be taken in four (4)-hour increments in any one vacation year. Approval of vacation requests is subject to operational requirements and advance notice satisfactory to the company under the circumstances in each case. However, the company reserves the right to approve individual vacations for only one (1) full calendar week at a time upon request when an employee is eligible for eighty (80) hours of vacation and for only two (2) full calendar weeks at a time upon request where an employee is eligible for one hundred and twenty (120) hours or one hundred and sixty (160) hours of vacation. Where an employee is eligible for one hundred and twenty (120) hours or one hundred and sixty (160) hours of vacation, the company will endeavor to approve, whenever possible, such vacation at one time where the employee requires it for reasons of distant travel or other needs. B. During the period May 1st through May 31st of each year, individual employees eligible for vacation, after taking into consideration scheduled vacation shutdown periods, may begin to schedule vacations for the upcoming vacation season. Preference in granting vacation time off shall be given the most senior employee within a particular department and occupation on each shift who requests vacation during this period. All vacation requests must be submitted in writing, on a form to be provided by the 26 Company, and acknowledged by the employee’s immediate supervisor. Once a vacation request has been approved, the vacation time off shall be retained by the employee regardless of his department, shift or occupational assignment changes during the vacation season. After the May 1st through May 31st period, individual vacations may be scheduled by submitting a vacation request in writing, on a form provided by the Company, and acknowledged by the employee’s immediate supervisor at least one (1) week before the requested effective date of the vacation. Individual vacations of one (1) day or four (4)-hour increments may be scheduled by following the same procedure no later than one (1) full shift before the requested day of vacation. Employees assigned to a 4x10 work week who work four (4) hours and are approved for four (4) hours vacation or are approved for eight (8) hours of vacation shall be excused for the final two hours of that day. Employees requesting vacation after May 31 during the current vacation season shall not be able to displace a less senior employee who has been granted approval for vacation time off during the May 1st through May 31st vacation scheduling period. Section 4. Vacation Pay Employees will be paid for their vacation on the pay day for the week in which the vacation was taken. Section 5. Holidays During Vacation Holidays occurring during an employee’s vacation period shall be counted as part of vacation time and employees shall receive holiday pay in accordance with the provisions of Article VI. An employee, however, may, at the time he makes formal vacation application, elect to observe such holidays occurring during his vacation on his next normally scheduled work day following his vacation. Holiday pay issued during a vacation shutdown period for employees on layoff during the shutdown period will be paid so not to interfere with the employees’ unemployment. Section 6. Vacation and Military Obligations A. Any employee who is a member of the National Guard, State Guard, or Reserve Forces of the United States, shall not lose his vacation pay because of time away from the plant when ordered into active duty for a short duration of time. B. Any employee who has at least one (1) year of seniority as of the date of his termination for entry into the Armed Services of the United States, shall, upon submission of proof of his entry, receive vacation pay in accordance with Section 2 of this Article. Section 7. Vacation, Laid Off and Terminated Employees A. If an employee was in a laid off status on May 31, 2012 (succeeding years likewise) and has established six (6) months or more of seniority and who was an active employee for at least six (6) months in the year prior to June 1, he will be paid vacation benefits as outlined in Article VII, Section 2, upon his recall to work. Employees recalled from layoff who have worked less than six (6) months in the previous 27 vacation period shall receive prorated vacation at 1/12th for each full month worked in the previous vacation period. B. If an employee is terminated for any reason after May 31st of any year and prior to his taking his vacation or being paid therefor, he will be paid all vacation rights which he had earned during the preceding “vacation year” at the time of termination or as soon thereafter as practicable. C. An employee who had at least six (6) months of seniority on the preceding May 31st shall receive a prorated vacation pay benefit in the event of his termination based upon the amount of actual days on the active payroll in the June 1 - May 31 period during which he was terminated. Section 8. Special Provision for Determining Employees Required to Work During Vacation Shutdowns A. If work is required during the vacation shutdown on a program or in a departmental/ functional area, the individual who is the most senior within each affected department and occupation, without regard to shift, shall be given the first opportunity to work. If the most senior person elects to take vacation and not work, the process shall be repeated until sufficient volunteers within the department and occupation are obtained. If insufficient volunteers are obtained, the least senior employees within the department and occupation shall be required to work until the required level of manpower is obtained. Plant-wide seniority shall be the basis for determining seniority ranking. Super-seniority shall have no bearing upon vacation selection. B. An employee assigned to a program or in a departmental/functional area who is not asked to work and has no vacation eligibility, shall observe the vacation shutdown period by taking excused absence days. An employee who has no vacation eligibility and is asked to work will not be allowed to exercise the option of not working even if a less senior employee on the shift, in the department and occupation, has not been asked to work. C. Shift selection, in cases where multiple shift operations are to be conducted, shall be on the basis of plant-wide seniority from among those employees within the department and occupation required to work while the remainder of the department observes the vacation shutdown. The most senior people shall retain their regularly-assigned shift to the greatest extent possible. No shift differential will be paid to any employee unless he is actually assigned to the second or third shift during the shutdown. D. If overtime is required during the vacation shutdown period in an area observing the shutdown, the first overtime opportunity in the department and occupation shall be offered on the basis of seniority to the most senior employee who is working during the shutdown on the shift in the department and the occupation where the overtime opportunity exists. Subsequent overtime opportunities during the vacation shutdown period within the same shift, department and occupation, shall be made in accordance with overtime opportunity hours recorded during the shutdown period. The employee with the low accumulated overtime opportunity hours shall be given the first opportunity to work. At the conclusion of the vacation shutdown period, overtime opportunity hours, if any, shall be added on to the overtime roster applicable to the employee’s regular shift, department and occupation. 28 ARTICLE VIII ADJUSTMENT OF GRIEVANCES Section 1. Grievances Defined Grievances are herewith defined as any alleged violation of the terms of this Agreement or any difference of opinion arising as to its interpretation or application. Section 2. Grievance Procedure Should any grievance, as defined herein, arise, there shall be no suspension of work and an earnest effort shall be made to settle such difficulties promptly in the manner hereinafter outlined. Any employee having a complaint may discuss the same with his/her immediate supervisor and/or his/her departmental committeeperson. Step 1. The agreement endorses the concept of settling grievances at the lowest possible level. Accordingly, any employee alleging a complaint will, within six (6) working days after he/she knowing of the facts giving rise thereto of the alleged violation, meet with his/her immediate supervisor and departmental committeeperson and attempt to resolve the complaint. This oral step is mandatory prior to any grievance being reduced to writing. If the employee’s complaint cannot be resolved as a result of the discussion, the employee may present the alleged grievance in writing to his/her departmental committeeperson, who will present the grievance in triplicate within an additional six (6) working day period to the employee’s supervisor and/or the manager responsible for alleged violation. The employee’s immediate supervisor and/or the manager responsible for alleged violation will record on the grievance the date the grievance was submitted to him/her. This step will be between the grievant, his/her supervisor and/or the manager responsible for alleged violation, and the departmental committeeperson of the Union. The supervisor and/or the manager responsible for alleged violation will return two (2) copies of the grievance to the Union with his/her written disposition not later than two (2) working days from the date of which he/she received the written grievance. Step 2. The grievance, if not settled in Step 1, may be referred within three (3) working days following the date on which the Company’s answer was given in Step 1 to the appropriate project manager or designee. This meeting will be held within three (3) working days following the receipt of the grievance by the project manager. This meeting will be between the grievant, his supervisor and/or the manager responsible for alleged violation, his departmental committeeperson, plant grievance committeeperson, and the manager or his designated representative, and a representative of the Human Resources Department if so desired by the Company. The manager or his designated representative will make a reply within three (3) working days after the grievance is discussed in formal meeting. Should the occasion arise wherein five (5) or more grievances identical in substance are filed in any one department, then the second step hearing will be granted to the senior employee grieving, who will be representative of the remainder of such grievants, and no additional Step 2 hearing will be necessary. 29 Step 3. The grievance, if not settled in Step 2, may be referred within three (3) working days following the date on which the Company’s written answer was given in Step 2 for consideration at the next meeting to be held between the president of the local Union or his designated representative, together with the plant wide committeeperson from the area and shift where the grievance was filed, a member of the Company’s Human Resources Department, the manager or his designated representative for the area from which the grievance was filed. The Union business representative of the Local may also attend the Step 3 discussion. Such meeting shall be held on the second and fourth Tuesday of each month (unless changed by mutual agreement). A grievance properly referred to this step shall be discussed at the next meeting provided notice of referral shall be submitted to the office of the Manager of Human Resources not less than three (3) working days prior to the date of the scheduled meeting. Grievances which are filed within three (3) working days of such meeting shall be discussed at the next meeting or at some other time as mutually agreed upon. Grievances which are discussed in any such meeting shall be answered in writing by the Manager of Human Resources or his representative within five (5) working days following the date of such meeting. Written grievances relating to matters of general in character may be submitted by the Union to the office of the Manager of Human Resources not later than three (3) working days prior to the date of the next scheduled meeting. Grievances pertaining to disqualification must be filed directly into Step 3 of the procedure. The Manager of Human Resources’ designated representative will record on the grievance the date the grievance was submitted to Step 3, will retain the white copy and return the other copies to the Union representative referring the grievance to Step 3. Grievances which are resolved at Step 1 of the grievance procedure are done so without precedent or prejudice to the respective position of either management or the Union. Section 3. Mediation Process During the course of negotiations the parties agreed to amend Article VIII, Section 2, so as to permit mediation, upon mutual agreement, during the prearbitration step of the grievance procedure. The primary purpose of the mediator is to assist the parties in settling grievances in a mutually satisfactory fashion. In attempting to achieve a settlement, the mediator is free to use all of the techniques customarily associated with mediation, including private conferences with only one party. If settlement is not reached during the mediation, and the matter is arbitrated, the mediator shall not serve as the arbitrator and shall not be called as a witness by either party. Nothing said or done by the parties or the mediator during the mediation may be introduced by either party during arbitration. The parties shall mutually select the mediator. Prior to each case, the parties will mutually agree if the mediator’s decision is to be binding and not subject to arbitration. If the parties are unable to reach agreement on a mediator, the matter shall be submitted to arbitration. Each party shall bear one-half of the fees and expenses of the mediator. 30 Section 4. Arbitration A. Either party may refer a grievance to arbitration within five (5) working days after a written answer is received in Step 3, above, by notifying the other party that it desires the grievance to be arbitrated. The party referring the grievance to arbitration shall, within five (5) additional working days, request the Director of the Federal Mediation and Conciliation Service to submit arbitration panels and/or appoint an arbitrator in accordance with the procedures set forth in Paragraph B, below. B. The Director of the Federal Mediation and Conciliation Service shall submit to both parties a panel of seven (7) qualified individuals. Either party may, on a one time per case basis only, reject the entire panel of names submitted and request Director of the Federal Mediation and Conciliation Service to furnish an additional panel. Any such request must be made prior to the meeting provided for herein for the purpose of striking names. If neither party seeks to set aside the entire panel, the parties shall meet within ten (10) days after receipt of such panel and shall strike from such panel, on an alternate basis, the names of individuals thereon until only one name remains. The parties shall jointly, or either party may separately, notify the arbitrator so selected, who will forthwith advise both parties of available dates. The parties shall then forthwith mutually select a hearing date. If the parties so elect, they may jointly also advise Director of the Federal Mediation and Conciliation Service of their choice. If the selected arbitrator cannot schedule a hearing within a reasonable period of time, the parties shall request another panel of seven (7) qualified individuals from Director of the Federal Mediation and Conciliation Service, and subsequent panels, as necessary, and proceed to strike as provided above. If either party refuses to strike a name from a panel, the other party may select an individual from such panel and so notify said arbitrator and/or Director of the Federal Mediation and Conciliation Service who shall forthwith appoint that individual to arbitrate the referred grievance. The parties shall rotate as to who strikes first with respect to each panel. If the arbitrator selected from a panel cannot serve because of availability as provided for in this Section 4-B, the party who struck first shall also strike first on the second or other subsequent panels, if necessary, until an available arbitrator is selected as provided for in this Section 4-B. C. The arbitrator, when appointed, shall proceed to consider the grievance without delay and shall render his decision within thirty (30) days following the conclusion of his taking of evidence in the case unless extended by mutual consent of the parties. The decision of the arbitrator shall be final and binding upon the Company and the Union. D. The jurisdiction of the arbitrator shall be limited to determining questions involving the interpretation, application or alleged violation of the terms of this Agreement, or of any Agreement supplementary hereto. The arbitrator shall have no authority to add to, or subtract from or to change any of the terms of this Agreement, or of any Agreement supplementary hereto. In the award of back pay to an employee under this Article VIII, no payment shall be made in excess of thirty (30) calendar days prior to the actual filing of the grievance, provided the employee is on the active payroll on the inception date. This is not to be construed as cutting off monetary liability, if any, after the filing of a grievance as outlined under Article VIII, Section 2, Step 1. E. Grievances which have been referred to arbitration shall not be grouped or combined for decision of an arbitrator. Not more than one (1) grievance shall be heard by one (1) arbitrator at any one time, unless otherwise mutually agreed to by the Company and the Union. However, grievances identical to any one arbitrated shall be settled on the basis of such arbitration decision. 31 F. The fees and expenses of the arbitrator, together with such other expenses as may be necessary and ordered by him, shall be shared equally by the Company and the Union. However, if either party offers to provide the arbitrator with a transcript of the proceedings and the arbitrator accepts such transcript, the other party may receive a copy at copy cost. Either or both parties may, at their individual discretion, file post-hearing briefs with the arbitrator. However, upon meeting agreement, post-hearing briefs may be waived and both parties, prior to the commencement of the hearing, may request the arbitrator to render a bench decision after closing the taking of evidence, argument, closing statements, if any, and the closing of the hearing but prior to leaving the place of hearing. G. Any grievance which has been properly referred to arbitration by written notification in the manner provided for by Paragraph A of this Section 4, may be submitted to pre-arbitration review upon the written request of either party hereto mailed to the other party within ten (10) working days after the date of notice of referral to arbitration. A regular scheduled meeting shall be held once every month for pre-arbitration review of such grievance and such other grievances as shall then be pending review. The representatives of the parties hereafter named shall have full authority to resolve any such grievance. The Union shall be represented at the pre-arbitration review meeting by the president and business agent or the person either of them may designate in his place and one other person and the Company shall be represented by two (2) managers, one (1) of which shall be the manager of the area wherein the grievance originated, or their designee, and one (1) member of the Human Resources Department. Each party shall appoint one of its three (3) representatives to present the facts of the grievance at the pre-arbitration review meeting and the other two (2) representatives shall have full authority to resolve the grievance. The pre-arbitration review meeting shall be held within thirty (30) days after the request for review is mailed unless mutually postponed to a later date by the Union president and the manager of Human Resources. Notwithstanding any other provisions of this grievance procedure, no grievance properly submitted to pre-arbitration review shall be considered or heard by an arbitrator pursuant to Paragraph C of this Section 4 unless and until the pre-arbitration review meeting shall have been held. If such a grievance remains unsettled after the pre-arbitration review meeting, arbitration shall thereupon proceed in accordance with the preceding provisions of this Section 4. Section 5. Grievances Involving Suspension or Discharge Grievances regarding unjust discriminatory or disciplinary dismissals or grievances concerning disciplinary layoffs of any nature may be filed in writing with the manager of Human Resources not later than six (6) working days after the dismissal or layoff. Such grievances shall be considered at the next regular Step 3 meeting. In the event it is agreed to reinstate an employee who filed a grievance under this Section, the determination of pay, if any, for time lost shall be subject to the grievance procedure. In no event shall such pay exceed six (6) working days prior to the filing of such grievance. Failure to file such written grievance by the Union or employee within the time specified shall exempt the Company from any obligation to reinstate any employee or reimburse him for lost time. Any employee who has been disciplined by either suspension or discharge will be granted, if so requested, a meeting with the departmental committeeperson and plant grievance committeeperson to discuss the case with him/her in a place designated by the manager of Human Resources or his designee before he is required to leave the plant unless, in the Company’s judgment, circumstances necessitate his/her immediate removal from the premises. The appropriate representative of the employee who is 32 being suspended or discharged shall be given an opportunity to review the facts relied upon by the Company giving rise to just cause for suspension or discharge. In any case involving suspension or discharge, a representative of the Human Resources Department shall provide the Union Business Agent and Local President as much advance notice as possible. Section 6. Union Representation The Union may select one (1) departmental committeeperson and one (1) alternate who shall be employees of the Company and members of the Union, for each one hundred (100) employees or fraction thereof for each shift in any department with the bargaining unit. Additional committeepersons to service sections of a department which are separated may be selected if the need for such is mutually agreed upon. Alternates can function only in the absence of the committeeperson. The Union may also be represented by a plant grievance committee not to exceed one (1) for each five hundred (500) employees on a shift, no two (2) alternate Union officials shall be from the same program/function. These members of the plant grievance committee must be employees of the Company and members of the Union. When the number of bargaining unit employees on any shift falls below two hundred (200), the time spent by the plant grievance committeeperson in the performance of the duties enumerated in Article VIII, Section 7B, of this Agreement shall be limited to straight-time hours. During those times when the plant grievance committeeperson representing a shift with less than two hundred (200) bargaining unit employees is not performing duties so enumerated, he shall perform only assigned bargaining unit work. The reduction of plant grievance committee persons by shift shall be accomplished in the reverse numerical order of the basis by which they were appointed under the provisions of Article VIII, Section 6, of this Agreement. Schedule for the ADDITION or REDUCTION of plant grievance committeeperson by shift. 1 - 200 employees 201 – 500 employees 501 - 1000 employees 1001 - 1500 employees 1501 - 2000 employees One plant grievance committeeperson; time not spent on representation responsibilities will be spent performing classified bargaining unit work one plant grievance committeeperson two plant grievance committeepersons three plant grievance committeepersons four plant grievance committeepersons, etc. NOTE: Plant-wide committeepersons shall be removed from the position based upon the reverse application of the numerical progression of employees assigned to the department and shift in jobs included in the bargaining unit. The Union shall furnish the Human Resources Department a list showing the names of the departmental committeepersons and their alternates, and the names of the plant grievance committee and shall continue to advise the Company as changes occur. 33 Section 7. Procedure for Committeeperson The Union will reduce to a minimum the actual time spent by departmental committeepersons in the performance of their duties. A. The duties of the departmental committeeperson shall be restricted to the investigation and handling of grievances as follows: 1. Their jurisdiction shall be limited to the handling of grievances within the geographical boundaries of their respective areas. 2. They shall be allowed to consult with employees in their respective departments who have a grievance, after they notify their foreman and punch out on Union time, as hereinafter provided. Upon completion of the departmental committeeperson’s investigation, he shall again punch off Union time and resume his regular work assignment. 3. If, after talking to the employee, the departmental committeeperson needs to consult with the plant grievance committeeperson, he will advise his supervisor, identifying the grievance and the general nature of the call he wishes to make. The supervisor will grant permission to use the telephone and the departmental committeeperson may call the appropriate number and ask that the plant grievance committeeperson call him as soon as he is available or talk with him at that time. B. The duties of the plant grievance committeepersons shall be restricted as follows: 1. Their jurisdiction shall be limited to the handling of grievances within the geographical boundaries of their respective areas. 2. When a plant grievance committeeperson is working on overtime, they shall be permitted to leave their assigned places of work to investigate and process grievances within their assigned areas after they notify their foreman and punch out on Union time, as hereinafter provided. Upon completion of their representation responsibilities, he shall punch off Union time and resume his work assignment. It is understood that representation activities on overtime will be limited to cases involving suspension, discharge or issues which cannot be handled on a straight time basis. 3. When they enter an outside department for the purpose of investigating a grievance within their assigned areas, they shall also report to the supervisor of such outside department and identify the grievance to be investigated before proceeding with such investigation. 4. They will not participate in Step 1 grievance meetings. C. All departmental committeepersons involved in the investigation or processing of grievances according to the provision of this Article VIII, shall punch out on Union time upon leaving their work and shall punch back in upon returning to work. Section 8. Time Limits A. In the event the Company does not answer a grievance within the time limits set forth in the grievance procedure, the grievance shall be considered settled on the basis of the Union’s written request. 34 Any grievance that is not instituted by the employee or referred by the Union to the next appropriate step within the time limit specified in the grievance procedure shall be considered settled in favor of the Company. B. The parties shall grant, on a case by case basis, prior to the expiration of the time limits, time limit extensions on all grievances appealed beyond Step 1 of the grievance procedure. Such extension of time limits must be made in writing and acknowledged by signature or initial by the other party. While the granting of this extension will be made without question, both parties affirm their conviction that the timely resolution of grievances is in the mutual best interest of all parties. C. In those instances when a grievance resolution is accomplished in Step 1, Step 2, Step 3 or Prearbitration resulting in a monetary settlement, the payment will be made within 30 days from the date of the settlement of the grievance. Section 9. Directed Grievance Settlements In instances where bargaining unit work has been found to have been improperly assigned, and a monetary payment is deemed by the parties to be appropriate yet no harmed employee is involved, the award amount will be retained in an escrow account. The money from that account will annually be donated to the Guide Dogs of America. 35 ARTICLE IX SENIORITY Section 1. Definition A. The term “seniority” whenever used in this Agreement is defined as length of service computed for each employee from his most recent date of employment and applied in accordance with the provisions of this Agreement. B. The term “occupation” whenever used in this Article is defined as including all occupational grades heretofore established thereunder. Section 2. Probationary Period All employees shall be regarded as probationary employees until they have completed ninety (90) calendar days on the payroll of the Company. There shall be no responsibility for the re-employment of probationary employees if they are discharged or laid off before the completion of their probationary period. In the event a probationary employee completes the period of ninety (90) calendar days on the payroll of the Company, he will be assigned a seniority date as of his date of hire. Probationary period employment during any six (6) month period, whether or not interrupted by termination or layoff, shall be considered for purposes of determining satisfaction of the probationary period requirement only. Section 3. Return to Bargaining Unit A. Employees who transferred from the bargaining unit to a salaried position prior to February 5, 2012, may elect (during the period of February 6, 2012 through May 4, 2012) to return to the bargaining unit provided he/she possesses sufficient seniority. Should an employee fail to elect by May 4, 2012 to return to the bargaining unit, he shall not be allowed to re-enter the bargaining unit at a later date for any reason. (1) An employee electing to return to the bargaining unit during the above window may return at the last held bargaining unit position. (2) An employee returning to the bargaining unit will return at the rate of pay he would have received if he had remained in the bargaining unit. (3) The date of return to the bargaining unit will be determined by management, but in no event will be later than August 6, 2012. B. An employee who elects to transfer from the bargaining unit to a salaried position after February 5, 2012, may return to the bargaining unit within the first ninety (90) working days of transferring to his salaried position, provided he/she possesses sufficient seniority. If the employee does not elect to return to the bargaining unit within the first ninety (90) working days of his transfer to a salaried position, he shall not be allowed to return to the bargaining unit thereafter. 36 Section 4. Seniority List The Company shall keep a seniority list for each department. Said seniority list shall be revised on a monthly basis during the life of this agreement, and a copy thereof will be furnished to the departmental committeeperson and Union each month following revision. All lists may be challenged by the Union at any time and errors corrected when found. Section 5. Loss of Seniority An employee will lose his seniority under any of the following conditions: A. If he resigns. B. If he is discharged for just cause. C. If he fails to register in person or by certified mail with the Human Resources Department during the month of January following his layoff and each succeeding January thereafter. When he registers in person, he shall be furnished a receipted copy of the registration by the Human Resources Department. D. If, after layoff, he fails to return to work or fails to notify the Human Resources Department of his availability for work within three (3) working days from the date of receiving a certified letter, addressed to the employee at his last address as shown on the Company records, notifying him to return to work. E. If an employee is laid off or absent due to illness for sixty (60) consecutive months, provided the employee has completed his/her probationary period as of the commencement of such period of absence. F. If he fails to report for work at the expiration of an authorized leave of absence. G. If he is absent for three (3) consecutive working days without permission or without notifying the Company, unless a satisfactory reason for not notifying is given. The employee must notify the Company no later than the end of his shift on the third day he has been absent. Such reports of absence must be made by calling the absentee reporting telephone number. When an employee reports his absence, he shall be issued a receipt number which will identify his call and shall be considered as the only form of proof of notification of absence. Section 6. Employee Responsibility for Change of Address Employee shall furnish written notice to their immediate supervisor of any change of address and telephone number, within one (1) calendar week after the change, and the Company shall be entitled to rely at all times upon the last address and telephone number furnished by the employee. 37 Section 7. Reduction in Force In the event of a reduction in force, the following procedure shall apply: A. Employees shall be retained according to seniority in the occupation, provided the senior employees are qualified to do the work remaining within their occupation at the time of such reduction in force. B. Employees excessed by a reduction in force in an occupation within a department shall be transferred in the same occupation to another department where such occupation is in use, and shall be selected in the following order: First: An employee may give written notice of his desire to transfer to another department in the same job classification at any time following the expiration of his first six (6) months in such occupation, job assignment or shift. Such written notice must be given at least fifteen (15) work days in advance of a transfer. An employee can terminate his written notice no later than five (5) work days prior to effective transfer date. The most senior employee(s) may exercise their request to transfer only in the event his/her department and occupation is experiencing a reduction in force and the last employee in the department and occupation who would be affected by such reduction in force is remaining in the occupation. All job openings will be filled prior to displacing the least senior employee. Second: If the number of qualified volunteers is insufficient, then junior employees able to perform the work required, in inverse order of seniority, shall fill all openings first; if no openings exist, he/she shall displace the least senior employee in the department to which transferred, provided he/she possesses sufficient seniority. C. If an employee cannot be so assigned, he/she shall be transferred to another occupation (other than his/her current occupation) most recently held by him/her in which he/she shall have previously completed at least four (4) weeks of satisfactory service, and in which he/she shall possess sufficient seniority at the time of such assignment, he/she shall fill all openings first; if no openings exist, he/she will displace the least senior incumbent employee, provided he/she is qualified to perform the work required therein. For the purposes of this Paragraph C, occupations previously held by such employee shall be considered in inverse order in which they were held by him/her. An employee who does not desire to be so assigned in accordance with the above may, upon written request to the Company, bypass a previously held occupation and be transferred to the occupation held prior to the bypassed occupation in which he/she shall have completed at least four (4) weeks of satisfactory service, provided he/she makes such request at least two (2) calendar weeks prior to being notified of his/her pending excessment from the occupation currently held. An employee may withdraw his/her request to bypass an occupation provided that he/she does so in writing in Human Resources no later than five (5) work days prior to effective date of the reduction in force; however, he/she will not be permitted to withdraw or resubmit a request to bypass more than three (3) times in any twelve (12)-month period. An employee who is offered transfer to an occupation and who declines transfer thereto shall lose equity in that occupation. He/she shall be transferred to another occupation (other than his/her current occupation) most recently held by him/her in which he/she shall have previously completed at least four (4) weeks of satisfactory service, and in which he/she shall possess sufficient seniority at the time of such assignment he/she shall fill all openings first; if no openings exist, he/she will displace the least senior incumbent employee, provided he/she is qualified to perform the work required therein. For the purposes of this Paragraph C, occupations previously held by such employee shall be considered in inverse order in which they were held by him/her. An employee transferred in 38 accordance with provisions of this Paragraph C shall displace, and shall assume the departmental assignment of the least senior employee in the occupation for which he/she is eligible herein. D. Employees with 10 years or more seniority excessed by a reduction in force from any labor grade 9 occupation, who have greater plant-wide seniority and have successfully completed a comprehensive qualification program for the Composite Utility occupation shall fill all openings first, if no openings exist, he/she will displace the least senior employee in the Composite Utility classification. Employees with 10 years or more seniority excessed by a reduction in force from any labor grade 9 occupation, who have greater plant-wide seniority and have successfully completed a comprehensive qualification program for the Aircraft Assembler/Installer occupation shall fill all openings first, if no openings exist, he/she will displace the least senior employee in the Aircraft Assembler/Installer classification. E. In the event such an excessed employee cannot be re-classified as provided above, he/she shall first be placed on any open job for which he/she is qualified, if any are available; if not, he/she shall then displace the least senior employee among all of those junior to him/her in a different and lower-rated occupation provided the employee meets the qualifications requirements for the job as outlined in the job description and provided the record at the time of layoff indicates he/she is qualified to perform the duties of the displaced employee. The employee must demonstrate he/she can perform the work at an efficient level under normal supervision and instruction within a reasonable instruction/training period. If, in the opinion of management, an employee cannot displace another employee as provided above and the employee disagrees, then the employee may request a hearing concerning the matter and such hearing will be held within seven (7) working days in order to resolve the matter. The meeting shall be attended by the employee, his/her plant grievance committeeperson, one other Union official and two (2) members of Company management, one of which will be a member of the Human Resources Department. If the matter cannot be resolved, the parties will proceed to expedited arbitration. F. An employee shall indicate at the time of layoff on a form to be provided by the Company (Exhibit “C”), the occupations to which he will accept recall, provided, however, he may on such form refuse recall to any occupation other than the highest occupation held prior to layoff without affecting his seniority. To insure an orderly replacement of employees in the event of a reduction in force, the Company shall have a maximum of five (5) working days from the date of the reduction in force to affect whatever employee transfers shall be required, except that when the reduction in force affects at least fifty (50) employees or a majority of the employees in an occupation within an affected department, whichever shall be less, the company shall have an additional five (5) working days within which to effect such transfers. Section 8. Notice to Union The Company will verbally notify the business representative and the president of the Union and the appropriate departmental committeeperson of all impending layoffs, promotions, transfers, leaves of absence, new hires and rehires with as much advance notice as possible except in cases of emergency over which the Company has no control. Such notification will contain the names of affected employees, if they are known at that time and shall be posted no later than Thursday of the week prior to the effective date. Notices of leaves of absence, names of employees losing seniority, and/or laid off, new hires and rehires shall be furnished in writing to the business representative and the Union president as soon as possible 39 after the action becomes effective. If employees are loaned out, written notice of the loan out will be given to the committeeperson of the affected departments. Section 9. Recall to Work In the event of recall following a reduction in force, the following procedure shall apply: A. Employee shall, in order of seniority, be offered recall or transfer to the occupation from which they were excessed or laid off. B. An employee excessed from an occupation who is subsequently promoted to or recalled to the same grade from which excessed or employees which have exercised their right to bid down to a lower rated or a lateral rated occupation, may, upon written request, return to the occupation from which excessed in line of seniority when an opening occurs. Such written request must be given at least five (5) regularly scheduled work days in advance of an opening. If the employee holds equity in two (2) or more occupations in the same labor grade from which the employee was excessed, the employee may file a written preference as to the occupation he/she desires assignment. The employee shall be transferred to such preferred occupation in order of seniority at the time an opening occurs. Prior to being offered transfer to the occupation indicated in his/her written request, an employee may withdraw his/her written request. Such withdrawal must be provided in writing in Human Resources and will become effective five (5) work days after the date received. An employee will be permitted to withdraw his/her written request no more than three (3) times in any twelve (12) month period. An employee who refuses transfer to a requested occupation in compliance with this Section 9-B shall lose equity in such occupation. C. Employees who refuse the offer of recall or transfer to the occupation from which they were excessed or laid off shall forfeit their seniority rights to further recall or transfer under Paragraph B of this Section. In the event the employee declines the recall, the Company will have a written request initiated by the employee showing his/her refusal, the written request will be filed in the employee’s personnel file and the employee will receive a copy of the written request. Section 10. General Recall Subject to all other recall provisions of this Article, an employee on layoff shall be recalled according to seniority when an opening exists in another department or occupation provided the employee has the necessary qualifications and ability to perform the work required. The Union shall be notified of employees whose notice of recall is undeliverable. The Union shall be given three (3) days from the date of notification to attempt to contact the employee whose recall notice is undeliverable prior to the employee’s seniority being broken in accordance with the provisions of Section 5(d) of this Article. Section 11. Promotions When an opening occurs within an occupation within a department, which is to be filled, the following procedure shall apply: 40 A. Employees holding equity in the occupation by operation of this Article shall first be given an opportunity to return to such occupation in order of seniority. B. In the event the opening cannot be filled by the application of Paragraph A of this Section 11, then the senior qualified employees requesting the promotions will be promoted. Such promotions will be subject to the following procedures: (a) Employees shall be entitled to indicate a desire to be promoted to openings in occupations in a higher labor grade, or which afford an opportunity for further promotion, for which they feel qualified, but which may exist outside the occupation in which they are currently assigned. In addition, employees with ten (10) years or more seniority will be entitled to indicate a desire to be transferred to openings in occupations in the same or a lower labor grade for which they feel qualified, one time during the lifetime of the Agreement. In order to indicate such a desire, an employee shall complete a Request for Occupation Change (form 8327) in duplicate, which shall be supplied by the Company to the employee at the Human Resources Department. Both copies of such form shall be countersigned and dated by a representative of the Human Resources Department, and one copy shall be returned to the employee. Each Request for Occupation Change shall provide for the statement of a preference for not more than one such occupation by an employee. An employee who files a Request for Occupation Change shall be given an interview by a representative of the Human Resources Department outside the employee’s scheduled working hours. Selection criteria representative of the work required and a review of the employee’s work history will be used for all applicants to determine qualifications. If the employee is determined not to be qualified, he shall be advised promptly after conclusion of his interview. When an employee is determined to be qualified, his name shall be placed on a list which shall be maintained by the Company for such occupation. The employee’s name shall remain on such list for a period of one year following the date of filing of the Request for Occupation Change. An employee may request the renewal of his placement on the list at the expiration of the period of one year by filing a new Request for Occupation Change specifying the same preference. (b) Request for Occupation Change forms may be filed by an employee specifying a preference for additional occupations at any time; provided, however, that no employee shall be placed on the job lists for more than six (6) occupations at the same time. (c) Any employee who is considered not to be qualified for an occupation which he has specified on a Request for Occupation Change shall be advised of the reason following his interview. (d) In the event openings occur in an occupation which cannot be filled by the application of Paragraph A of this Section 11, then before it shall hire a new employee, the Company shall promote any qualified employees in the order of seniority who either hold placement on the job list for the occupation in question or who shall file a bid (Request for Occupation Change) and are eligible for promotions under the “last minute” posting procedure in accordance with and subject to Sub-paragraph (e) of this Paragraph B. (e) Notice of each opening which cannot be filled by the application of Paragraph A of this Section 11 shall be posted on all plant bulletin boards for two (2) consecutive working days (herein called the “last minute posting”) to enable qualified employees to file bids at the Human Resources Department on a form to be supplied by the Company (Request for Occupation Change). However, any job posting not filled within a sixty (60) day period from closing date of “last minute posting” will be re-posted. 41 A laid off employee, who will be permitted to have up to six (6) Requests for Occupation Change on file at any one time, may file a bid on a last minute posting, subject to the provisions concerning notice of acceptance set forth below in this Sub-paragraph (e). At 4:00 p.m. on the second working day of the last minute posting, the opening shall be awarded to the most senior employee who either (i) holds placement on the job list for the occupation in question or (ii) possesses the necessary qualifications to perform the work required and has filed a bid in response to the last minute posting for that opening. If it should be determined that a laid off employee is eligible for an award of an opening hereunder, the Company will attempt to notify the laid off employee by telephone. If such employee cannot be reached, the Company will advise the Union president or business representative who will be given twenty-four (24) hours within which to both notify the employee and have him/her contact the designated Company representative in a manner prescribed by the Company. Such twenty-four (24) hour period may be extended by mutual agreement. If additional laid off employees are the senior qualified bidders, the Company will also attempt to contact them by telephone and advise them that they will be offered the job opening in the event a more senior qualified laid off employee cannot be notified or if he/she declines the job opening or he/she fails to reach the Company as prescribed above, providing their seniority prevails, namely, that the most senior qualified laid off employees cannot be notified or decline the job opening or fail to reach the Company as provided above. The most senior qualified laid off employee who accepts the job opening as provided above must be available to report to work promptly as required. (f) The Company will allow the employee a four (4) hour period to accept or refuse a promotion upon request of the employee. The company will notify the employee of department, shift and workweek of said opening. Once the employee has committed verbally to accept or decline a job offer, his/her decision will be final. If he/she declines an offer of promotion, written notification to that effect will be signed by the employee and sent to the Human Resources office. (g) Any employee who is offered promotion under the provisions of this Paragraph B shall be ineligible for any further consideration under this Paragraph B for a period of six (6) months following the effective date of such promotion or the date he/she declined the job offer. An employee who has been promoted and is excessed or bumped out of the occupation will, on the effective date of his/her transfer, or layoff, be eligible for promotion under the provisions of this Paragraph B. (h) If no timely notice of availability and acceptance of an award is received from a laid off employee as required by Sub-paragraph (e) of this Paragraph B, the opening shall then be awarded to the most senior employee on the active payroll who would otherwise be eligible for such opening under the provisions of that Sub-paragraph. C. An employee promoted under any provision of this Section 11 shall be given a reasonable probationary period to determine his qualifications to fill such position. Should the employee fail to qualify on this job, he shall be returned to his former position with his rights unimpaired, if he possesses sufficient seniority. D. Nothing in this Section 11 shall be interpreted to preclude the Company hiring a qualified new employee where an opening cannot be filled in accordance with Paragraphs A through C of this Section. 42 E. Any dispute between an employee and the Company concerning the interpretation or application of this Section 11 shall be resolved in accordance with and subject to the grievance procedure contained in Article VIII of this Agreement. F. In the event an employee is able to substantiate by medical evidence satisfactory to the Company Physician that his physical health would be substantially adversely affected if he is continued in his present occupation, that employee shall be permitted to complete a Request for Occupation Change for the occupation of the least senior employee in all lower labor grades in which a vacancy may occur and for which he is qualified and which would not adversely affect his health. The employee will be assigned to the next vacancy in the sought occupation by seniority. Should an employee, under this provision, be placed in layoff status in excess of two (2) consecutive weeks, such employee shall displace the least senior employee in that lower labor grade provided he is qualified and such work within that occupation would not adversely affect his health. Section 12. Seniority During Illness or Accident A. Employees shall not be dismissed because of illness or accident, and shall accumulate seniority, provided such period of illness does not exceed their maximum sick leave eligibility, as specified in Article X, Section 8. Any employee who returns to work within twenty-four (24) months following disability shall be reinstated in the same occupation held prior to his illness provided he is physically fit. If the same occupation no longer exists, he will be given work in the same Labor Grade provided he has sufficient seniority and is qualified to perform such work. The Company agrees to make every effort to provide employment to an employee who returns to work after an absence of more than twenty-four (24) months but less than sixty (60) months because of illness or accident, provided he is physically fit. An employee must notify the Company within seventy-two (72) hours of an illness or accident. The Company reserves the right to waive the seventy-two (72) hour requirement provided the employee can furnish evidence to the effect that compliance therewith was beyond the control of the employee. B. Any employee returning to work following an illness shall be subject to the provisions of Article X, Section 7, of this Agreement. The time absent on sick leave shall, to a maximum of two (2) consecutive weeks, be credited in computing automatic progression increases. Section 13. Top Seniority for Committeepersons Departmental committeepersons, plant grievance committeeperson, the Union president and vicepresident, who have one (1) year’s seniority with the Company, shall have top seniority except for promotions, vacation scheduling or determining overtime preference, in their occupation and shift in their department during such time as they officially remain in that capacity. Top seniority for departmental committeepersons shall not apply in instances where there are five (5) or less bargaining unit employees assigned to a department on a shift. When two (2) or more committeepersons (departmental, plant grievance, or both) are employed within the same department, shift and occupation, and it becomes necessary in a reduction of force to lay off one (1) of such committeepersons, actual seniority shall govern subject to the provisions of Section 5 of this Article. 43 The departmental committeeperson or plant grievance committeeperson shall not be transferred or loaned if there is work in his/her occupation, department and shift. In the event a committeeperson loses his/her status as a committeeperson, he/she shall lose all benefits resulting from the top seniority conferred by this provision. In the event a plant committeeperson is, as the result of a temporary layoff, excessed from his department, he shall have the right to bump the least senior employee in his occupation outside his department, provided he is qualified to perform the specific work. Section 14. Notice to Employees Employees shall receive at least twenty-four (24) hours advance notice of layoff or eight (8) hours’ pay at the straight time hourly rate in lieu thereof. However, in the event of an unforeseen emergency or circumstances over which the Company has no control, the required notice of layoff shall be eight (8) hours. A list of bargaining unit employee promotions, transfers, new hires, recalls and layoffs will be posted on all plant bulletin boards and all other video and electronic communication media the company may be using at the time, no later than 4:00 p.m. on Thursday as they occur. Section 15. Temporary Loans Temporary loans may be made where there is a temporary reduction of employees in a classification and/or department, or a temporary need for additional employees in an occupation or department. An employee may be loaned from one department to another department or from one classification to another for a period not to exceed twenty-one (21) calendar days, unless it is mutually agreed between the company and the union to extend the loan. At the end of the agreed to period, if the need still exists, an opening shall be created and filled per Article IX. However, employees will not receive equity nor will it qualify the employee for that particular occupation. If there are insufficient volunteers, the least senior employee within the occupation and department must accept the loan out if the loan out is within his/her occupation. Employees being loaned temporarily to a job in another classification will be selected based on volunteers by seniority within a selected department who have previously held the occupation. If no one who previously held the occupation accepts the loan out, the company has the option to continue in that department by seniority or seek volunteers in another department. Employees shall have the right to reject being loaned out of their occupation. If employees must be sent home due to a temporary reduction, selection of employees to be sent home will be in accordance with departmental and occupational seniority. Section 16. Temporary Lay Off In case of required absence due to lack of work of short duration for a definite period not to exceed five (5) working days, no notice or pay need be given; provided, that when the lack of work affects at least fifty (50) employees or a majority of the employees in the occupation within the department, whichever 44 shall be less, the above-mentioned period shall be extended by an additional five (5) days within which notice or pay need not be given. However, the rule will be that employees in each occupation in the department and on the shift will be sent home in accordance with seniority. Any exceptions to this rule must be approved by the Human Resources Department of the Company prior to such action. Section 17. Same Hire Date Employees with the same hiring date shall have their seniority established by reference to the last four (4) digits of their social security numbers, in accordance with the following procedure: (1) Effective as of February 5, 2012 , and ending on February 3, 2013, the employee having the lower number shall have the greater seniority; (2) Effective as of February 4, 2013 and ending on February 2, 2014, the employee having the higher number shall have the greater seniority; (3) Effective as of February 3, 2014 and ending on February 1, 2015, the employee having the lower number shall have the greater seniority. (4) Effective as of February 2, 2015 and ending on February 6, 2016, the employee having the higher number shall have the greater seniority. In the event that two (2) or more employees possess identical last four (4) digits, then the last five (5) digits of the social security numbers of such employees shall be referred to in establishing their respective seniority. Section 18. Secret or Top Secret Work Assignments Employees assigned to work for which the government of the United States has established a security clearance requirement shall be placed in accordance with this Article; provided, however, that the ability to obtain and retain the required security clearance shall be a requirement for obtaining and/or retaining a job assignment in a job which requires a security clearance. Employees will only be released from work requiring a security clearance when a qualified replacement is available to immediately assume the job responsibilities of the person replaced. Union representation maybe provided to bargaining unit employees by a Union official with the appropriate security clearance, or the employee shall be allowed to consult with an appropriate Union official who does not have the required security clearance at a location on the plant premises where a security clearance is not required. 45 ARTICLE X LEAVE OF ABSENCE Section 1. Personal Leave Employees requesting a leave of absence for personal reasons shall first make application in writing to their foreman. Such leave of absence without pay shall be granted to an employee for not more than ninety (90) days on final approval by the manager of human resources when the services of the employee are not immediately required and there are employees available in the plant capable of doing his work. Section 2. Union Leave Officers and special representatives of the union who are employees of the company and who have been selected by the union as its representatives, shall be granted indefinite leaves of absences without pay to take care of the union business, provided that reasonable notice is given to the company. Section 3. Armed Forces Leave Employees who have entered or who hereafter shall enter the Armed Forces of the United States shall accumulate seniority during such service, and, upon the completion of such service, shall be entitled to reinstatement to the extent and under the circumstances that reinstatement may be required under the applicable laws of the United States. Section 4. Military Leave An employee who is a member of the National Guard, Air National Guard or U.S. Armed Forces Reserve, and who is required to perform service during a summer training encampment or cruise, shall be granted a leave of absence for such purpose in accordance with the applicable laws of the United States. During such training encampment or cruise, an employee who has completed his probationary period shall be paid the difference between a normal day’s pay and the daily military pay and allowances earned by him for each day on which he would otherwise be regularly scheduled to work; provided, however, that the period for which encampment or cruise compensation shall be paid hereunder shall not exceed ten (10) working days in any calendar year, nor shall such compensation be payable for any service rendered during the employee’s vacation. A “normal day’s pay” for the purposes of this Section 4 shall mean eight (8) hours of pay, computed at the employee’s straight time hourly rate, including shift premium, if applicable; provided, however, that in the case of employees assigned to an alternative work week under Article V, Section 1, Paragraph B, of this agreement, a “normal day’s pay” shall be computed using the number of regularly-scheduled daily hours worked by such employees at the time of such leave instead of eight (8) hours. Before any such compensation shall be payable, the period of encampment or cruise performed by the employee shall be certified in writing to the company by the employee’s commanding officer. In the event any state or national emergency of a temporary nature occurs and the employee is ordered to report for duty, he shall be paid for an additional ten (10) days service on the same basis as above. 46 Section 5. Funeral Leave A. It is recognized that an employee may find it necessary to be absent from work in order to assist with funeral arrangements or other arrangements arising out of the death, and to attend the funeral, of a member of his immediate family. The members of the immediate family are defined below: Present Spouse’s Family Employee’s Family Spouse Father Brother Half-Brother Son-in-Law Grandmother Grandchildren Children Mother Sister Half-Sister Daughter-in-Law Grandfather Father Mother Brother Sister B. After an employee completes his probationary period, and it becomes necessary for him to be absent from work for the above specified reasons, he shall receive eight (8) hours of pay at his regular straight time rate, including shift premium, if applicable, for each day of absence on a regularly-scheduled working day which occurs in accordance with any of the following situations: 1. The funeral leave can start on the date of death and extend for three (3) consecutive days; 2. The funeral leave can start on the day after the date of death and extend for three (3) consecutive days; 3. The funeral leave can extend for three (3) consecutive days with the second of the three (3) days being the date of interment. In order to be entitled to receive such pay, the employee shall be required to present evidence satisfactory to the company that he, in fact, attended the funeral. C. An employee shall be entitled to receive eight (8) hours of pay at his regular straight time rate, including shift premium, if applicable, for one (1) day of absence on the date of burial on a regularlyscheduled working day, provided he has completed his probationary period, and it becomes necessary for him to be absent from work for the reasons specified in Paragraph “A” above, arising out of those defined below: Employee’s Family Step-Father Step-Brother Step-Mother Step-Sister Great Grandmother Step-Children Great Grandfather Great Grandchildren D. Written confirmation from the funeral director or an obituary notice establishing the relationship of the deceased and the date of the funeral shall be accepted as satisfactory evidence under this Section 5. 47 E. In the case of employees assigned to an alternative work week under Article V, Section 1, Paragraph B, of this agreement, the number of regularly-scheduled daily hours worked by such employees at the time of such an absence shall be used instead of eight (8) hours to compute a day’s pay for the purposes of this Section 5. Section 6. Jury Leave A. An employee on the active payroll who is summoned and reports for jury duty as prescribed by law after completion of his probationary period shall be paid as jury duty pay an amount equal to his regular straight time hourly rate, including shift differential, if applicable, multiplied by the number of hours of necessary absence from work for such purpose during each regularly-scheduled working day, but not to exceed eight (8) daily hours (not to exceed the number of regularly scheduled daily hours worked by the employee at the time of such leave in the case of employees assigned to an alternative work week under Article V, Section 1, Paragraph B, of this agreement), less any fees or allowances received by him on account of such jury duty. For the purposes of determining eligibility for jury duty pay hereunder, an employee’s absence from his scheduled shift on any regularly-scheduled working day on which jury duty is in fact performed by him shall be deemed to be necessary; provided that a third shift employee shall be deemed to be necessarily absent from his scheduled shift on any regularly-scheduled working day prior to a day on which jury duty is in fact performed by him. B. In order to be eligible for jury duty pay, an employee: 1. Must have been scheduled to work on that day; 2. Must notify the Human Resources Department as soon as possible after receipt of notice to report; 3. Shall cooperate with the company in requesting release from or delay of jury duty in those cases in which the company determines the employee’s absence will adversely affect the operations of his department; 4. Must furnish to the Human Resources Department within one week of the completion of jury duty a certificate of jury service, duly executed in accordance with court procedures, showing the time of reporting and the time of dismissal on each day for which jury duty pay is claimed and the amount of all fees received by him; and 5. Must not have volunteered for such duty. C. The provisions of this Section 6 shall be inapplicable to jury duty on the sixth or seventh consecutive day of an employee’s regularly-scheduled work week. Section 7. Sick Leave A. Sick leave will be granted to employees who have a recognized sickness or disabling personal injury and who make a request for sick leave to the Human Resources Department. Any qualifying employee will be granted leave for a period up to thirty (30) calendar days. Those employees who are confined to a hospital under emergency conditions will automatically be placed on sick leave after seven (7) days of absence. Additional extensions for a period up to thirty (30) days each may be granted upon 48 application to the Human Resources Department; provided that this does not apply to anyone physically or mentally unable to make such request, and in such cases, extension will be automatic, subject to the provisions of Paragraph C of this Section. Any employee returning to work following an illness shall be subject to examination by the company’s medical examiner, and must also present a medical certificate acceptable to the company from his/her personal physician. If, by reason of such an examination, the employee is rejected for employment, his/her personal physician will, upon the employee’s request, be furnished a report by the company’s medical examiner. If the employee’s personal physician certifies that he/she is able to return to work and resume his/her normal duties and the company’s medical examiner rejects such employee for medical reasons for employment, the employee’s personal physician and the company medical examiner shall jointly agree upon a third physician who will review the employee’s medical status and determine their capability to return to work. B. The length of allowable sick leave for those employees who secure the same under this Section 7 shall not exceed sixty (60) months. Section 8. Seniority During Leave Leaves of absence shall in no way jeopardize the standing or rights of employees. Seniority shall be accumulated during such leave, but the time absent shall be deducted in computing automatic increases. Upon his return to service, he/she shall be assigned to his/her former position providing he/she has sufficient seniority. If this is not possible, he/she shall be assigned to work comparable to the type of work which he/she did last prior to the leave of absence in accordance with seniority. This Section 8 shall not apply to sick leaves granted under Section 7 of this Article, which shall be subject to the provision of Article IX, Section 12, of this agreement. Section 9. Paid Personal Leave The provision for a maximum of six (6) non-cumulative paid personal leave days per contract year shall be subject to the following conditions of eligibility: Beginning as of the effective date of this agreement, employees who have at least one (1) year of seniority and who are on the active payroll as of such effective date [and each anniversary thereof] shall be granted personal leave with pay at the rate of eight (8) hours per day for a maximum of six (6) days of absence during each contract year due to (a) personal reasons approved by the company, (b) illness or (c) injury, in accordance with the following: A. Payment for prior approved individual days will be the first pay period following the period the personal day or days were taken. Employees will be paid eight (8) hours pay for personal days not taken at the end of the contract year. B. Pay shall be granted and computed at the applicable hourly rate plus, if any, the cost-of-living adjustment. C. Personal days may be taken in four (4) hour increments. 49 D. An employee who is otherwise eligible shall receive payment of personal leave pay hereunder on the basis of one (1) day of personal leave for five hundred (500) hours but less than one thousand (1,000) hours worked or credited as provided below during the twelve months preceding such effective date or anniversary thereof, or six (6) days of personal leave for one thousand (1,000) hours or more so worked or credited. Under no circumstances shall more than six (6) such days be granted or paid during the year commencing with such effective date, or any succeeding yearly period. An employee who is absent due to illness or injury, and who is eligible for Sickness and Accident benefits under this agreement or for Workers Compensation payments, will receive eight (8) hours credit towards the foregoing hours of work requirement for each regularly-scheduled full work day that the employee would have worked, but for the absence due to the illness or injury, but only if his/her absence is for a period of thirty (30) or more calendar days due to that illness or injury. The computation of credit hours after thirty (30) calendar days shall be at the rate of forty (40) hours per week. In order to be eligible for paid personal days in any yearly period following such effective date or any anniversary thereof, the employee must have actually worked the required hours during the period of twelve (12) months preceding such date, or must have been credited for those hours during that period in accordance with the above illness or injury provision. E. Paid personal leave days shall not be accumulated from one (1) contract year to another. F. Except for absence due to personal illness or injury, a paid personal leave day may not be used unless the employee reports the intention to do so in advance of the day to which it is applied and requests approval from the company, which shall not unreasonably be denied. It is understood that the company may decline approval for any such request if the employee’s absence would be inconsistent with workloads or requirements of production. G. A paid personal leave day may not be used for the purpose of evading an obligation or fulfilling a requirement of an employee which is otherwise imposed by the terms of this agreement or a reasonable company rule. Without limitation of the foregoing sentence, an employee shall not be entitled to use a credited paid personal leave day to avoid loss of seniority pursuant to Article IX, Section 5(g) of this agreement because of absence. Section 10. Reporting Unapproved Absences All unapproved absences must be reported through the Company absence reporting number (615-3612065) within the first hour of the employee’s shift. 50 ARTICLE XI RIGHTS OF MANAGEMENT The management of the plant and the direction of the working force, including the right to hire, classify, promote, demote, suspend or discharge for proper cause, to transfer or relieve employees from duty because of lack of work, or for other legitimate reasons, is vested exclusively in the company subject to all provisions of this agreement. 51 ARTICLE XII STRIKES AND LOCKOUTS Section 1. Union Responsibility and Company Responsibility During the life of this agreement, no work stoppages, strikes, or slow downs shall be caused or sanctioned by the union and no lockouts shall be made by the company. Section 2. Union Cooperation and Non-Liability The union shall not be liable to the company in any action at law for damages arising out of any interruption of the company’s operations which is in violation of any provision of this agreement, if such interruption is neither instigated, authorized, sanctioned, ratified, nor supported by the union; provided that it immediately takes all available steps to remedy the violation. Section 3. Discipline for Violation Any employee who engages in any violation shall be subject to immediate discharge or discipline by the Company. Section 4. Productivity and Ability to Compete Employees shall at all times give and exert their cooperative best efforts toward the fulfillment of production requirements and the improvement of productivity within the bargaining unit. The union will cooperate fully to insure that all employees understand, respect and comply with this principle. The concept of promoting the most productive and competitive work force within the industry is a recognized objective of both the company and the union. The parties shall study innovations which promote, as far as possible, the attainment of this objective. 52 ARTICLE XIII GENERAL Section 1. Personal Report In the event an employee is mentioned on any disciplinary action report intended for inclusion in the employee’s personnel record, the employee will be provided with one (1) copy of such report. The employee or his representative shall acknowledge receipt of the report by initialing the copy retained by the company. The acknowledgment of receipt of the report does not imply agreement with the merits of the action. Twelve (12) months following inclusion of a personal report in an employee’s personnel record it shall become void and shall be removed when noted thereafter, or upon the employee’s request made to the Human Resources Department. Disciplinary reports removed from the record on such request shall be given to the employee. Section 2. Posting Notices The company shall supply places on its bulletin boards, throughout the factory, for the posting of union notices. The union agrees to sign all of its notices and present them to the Manager of Human Resources. Such notices shall be confined to the following: (a) Notices of union recreation, social affairs and educational projects. (b) Notices of union elections. (c) Notices of union appointments and results of union elections. (d) Notices of union meetings. Section 3. Clean-Up Period Sufficient time will be permitted before the shift quitting time, when needed, for the cleaning of machinery, benches, etc., and/or for the returning of tools and equipment to the tool crib, storage areas and tool boxes. Employees shall be allowed a five (5)-minute personal wash-up period immediately before the lunch period. Section 4. Sabotage The union agrees to report to the company any acts of sabotage or damage to the property of the company, government, customer, other person or employee of which it is aware and the union further agrees, if any such acts occur, to use its best efforts to assist in apprehending the guilty person. 53 Section 5. Educational Facilities The company will, when it deems practical, make education facilities available to its employees in order that they may receive training to qualify them for work in more than one department in the plant if they so desire. Employees shall be selected for participation in accordance with the provisions of Article IX, Section 11. Aircraft assembly training and composite utility training will each be held once per year for those employees interested in attending school on their own time. There will be opportunities for both first and second shift employees for both courses. It is understood that if an insufficient number of employees are available for the school, the school shall be delayed until such time a sufficient number of employees are available to warrant the school. Employees transferring to a program requiring certification or bumped to a program through a reduction in force requiring certification shall be immediately enrolled in the certification program upon the effective date of assignment thereto and shall begin to certify immediately; participation in the certification program will be on company time. If such an employee fails to be certified as demonstrating the ability to perform to “standard”, he/she will be offered the option of reassignment or refresher training up to an additional amount of time equal to the time required for demonstration of certification. If the employee’s option is for the refresher training, the employee will then be given an additional opportunity to certify. If employee chooses the refresher training and fails to certify, a meeting between the company and union will be held to investigate the reason for failure and a possible solution. Following such, failure to certify will result in reassignment provided he/she possesses sufficient seniority to do so. If the employee’s option is for reassignment and provided he/she possesses sufficient seniority to do so, the employee will immediately be reassigned. Reassignment will return the employee to his/her former position provided he/she left it voluntarily; otherwise, such employee shall be assigned, by seniority, to an available position. Section 6. Foremen, Lead Persons and the Improvement of Productivity A. Foremen shall act in a supervisor capacity only, and they shall not perform production work or operations performed by a regular workman or operator at any time whatsoever. Research or special mechanical work may be performed by superintendents, foremen or other supervisors when necessary, or to properly instruct the employee, but they shall not displace any employee. An employee standing by idle and watching is not to be determined as a displaced employee. B. The word “lead person” does not designate a classification but merely describes a person leading a department on a specified shift. The selection of the lead person shall be based upon management’s assessment of ability, skill and need. Prior to the appointment of a lead person, employees will be provided a form to accept or reject the proposed selection. The reason for a rejection must be noted on the form. If the majority of the affected employees oppose the selection, then the reasons against the selection will be reviewed by management. If they agree with the reasons for rejection then management can submit another selection for consideration. Should management disagree with the reasons for rejection then the nomination will be submitted to Human Resources for resolution. The departmental committeeperson and supervisor will sign off on the final selection. Selection shall not be limited to a simple seniority selection process. The duties of the lead person will be to: (1) perform all tasks assigned to an individual within his 54 occupation; (2) provide administrative assistance to the supervisory employee responsible for the direction of a specific department and shift to which the lead person is assigned; (3) provide specific job instruction to employees assigned within the lead person’s department and shift (it being expressly understood that job instruction is not exclusively the responsibility of a lead person); (4) make job assignments to employees within the department and shift assigned; (5) perform all other ancillary tasks as instructed which are not involved with decisions to hire, discipline or discharge or promote or demote; (6) effective the date of this agreement and succeeding years likewise, this process will be repeated. The creation and selection of all lead persons will be subject to approval of Human Resources. No employee shall establish any job equity or priority in assignment as a lead person, and subsequent reassignment of a lead person to a specific department and shift shall not be prejudiced by prior assignment of another employee. A lead person shall be paid a rate of pay which is five percent (5%) higher than the lead person’s classified hourly rate of pay for all hours actually worked while designated lead person. A lead person must be performing lead person duties for someone other than him/her self. C. The concept of promoting the most productive and competitive work force within the industry is an objective of both the management and union. In order to realize this objective, the parties pledge their best efforts to study and adopt work place innovations which promote obtainment of that objective. It is understood that both parties are empowered to modify and/or alter the express terms and conditions of this agreement, provided the parties are in agreement to do so, in order to become more productive and/or competitive. Section 7. Business Representative The International or business representative of the union shall have access to the company plant during working hours. While in the plant, he will observe normal rules of conduct. Section 8. Copy of Agreement to New Employees The company agrees that when new employees enter into its employment, they shall be given a printed copy of this agreement and that every employee will be furnished one (1) copy of this agreement. Section 9. Rules No company rules shall be put into effect in violation of this agreement. Section 10. Subcontracting A. Subcontracting of Maintenance and Production Control The Company may subcontract, transfer or outsource maintenance and production control work without restriction. There will be no restrictions or obligations to bargain over the Company’s decision to subcontract, transfer or outsource, or the effects of subcontracting, transferring or outsourcing work. 55 B. Subcontracting of Tool Manufacture To the extent it will be consistent with efficient operations, the company agrees not to subcontract tool manufacture when tool-making occupations involved are on layoff from their occupation who are qualified to perform the specific assignment required. It is understood that completion schedule dates and the availability of facilities, equipment and personnel, as well as the quality thereof, will be among the factors considered controlling. This paragraph applies only to subcontracts of tool manufacture. C. Permanent Subcontracting In addition, for the purpose of preserving job opportunities for other employees covered by this agreement, the company agrees that work currently performed by the bargaining unit shall not be permanently subcontracted if it would result in a reduction of the work force, except in one or more of the following circumstances: (1) the company does not have the necessary equipment or tools to perform the work in question in an efficient and timely manner; or (2) the work in question cannot be finished within the scheduled time limits established to meet production goals; or (3) The unit cost of performing the work in question with bargaining unit employees would be five percent (5%) more than the cost of having the same work done by a subcontractor, as determined by the application of the company’s established cost accounting methods. Prior to the final decision to award a subcontract because of cost considerations under item (3) above, the company shall inform the president of Aero Lodge 735, in writing, of the subcontracting proposal under consideration, including the unit cost figures as above determined. The union shall thereupon have ten (10) days following the date of such notice to the Aero Lodge 735 president within which to make specific proposals to the company for the performance of such work by bargaining unit members at reduced costs. Should the union present a proposal which eliminates the cost differential referred to above, computed through the application of the company’s established cost accounting procedures, the subcontracting proposal shall be canceled and the work shall be performed within the bargaining unit. However, if no such proposal has been received by the company within the period of ten (10) days following notice to the Aero Lodge 735 president, the subcontract may be awarded by the company. The computation of unit costs by the company for the purposes of foregoing item (3) shall be subject to the grievance and arbitration provisions of this agreement, with any such grievance to be initiated at step 3 of the grievance procedure. If not resolved in the third step, any such grievance shall immediately proceed to expedited arbitration. D. Temporary Subcontracting In order to meet production requirements, the Company may, at its sole discretion, hire Contract Workers to perform bargaining unit work without limitation. No individual contract worker will be employed for more than twelve (12) consecutive months in an eighteen (18) month period. Contract Workers will not be considered employees covered by the Collective Bargaining Agreement. 56 Section 11. Employees of Subcontractors When work is subcontracted by the company, employees of the subcontractor who work on the premises of the company shall work solely on the subcontracted job, and no other, except in cases of emergencies. The departmental committeeperson will be advised by letter in advance of all subcontract work. Section 12. Field Service Employees who are assigned to field service away from the Nashville plant which requires them to remain away from home overnight for one or more nights shall receive an increase in their respective straight-time hourly wage rates of eight per cent (8%) for the period of such service. When required by the company to remain away overnight, such assigned employees will be reimbursed according to Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee, Vought Work Instruction (VWI) 1.4.010 H. Upon their return, the employees will be credited, for record purposes only, with an amount of overtime equal to the average number of overtime hours worked per employee in their respective department, classification and shifts during the period of such service. In the event an employee assigned to field service away from the Nashville plant finds it necessary to be absent from work in order to attend the funeral of a member of his immediate family as defined in Article X, Section 5, Funeral Leave, the company will provide round trip transportation to and from Nashville, and, where necessary, will also provide round trip transportation to and from Nashville for the employee’s spouse. As customer satisfaction must be considered an absolute priority in enhancing the company’s image/reputation within the marketplace, the following guidelines shall be used in the selection of field service personnel. 1. An assembly field service “pool” shall be established for each major program and/or customer. 2. Each assembly field service “pool” shall be staffed via the job bid procedure with qualified employees from required occupations assigned to a specified program and/or customer. 3. “Pool” selection shall not be limited strictly to seniority, but will include other critical factors such as previous experience, physical fitness, ability, skill, training, certification, qualifications and job knowledge, especially in the instance of program peculiarities. 4. Selected employees must have evidenced a history of compliance to work rules and acknowledge his/her responsibility to function as a representative of the company and the work force if selected for field service assignment. 5. Field service assignments will be made from the program-specific field service “pool” based on volunteers by seniority and ability to best perform the task. In the event there is an insufficient number of volunteers for the field assignment from the program-specific field service pool, the company will then evaluate other program “pools” to determine if qualified and/or experienced 57 personnel are available. In the event the required employees needed are not attained, any or all remaining requirements for qualified manpower shall be satisfied by non-bargaining unit personnel. Work performed by such non-bargaining unit personnel, which would otherwise customarily be performed by bargaining unit employees had sufficient field service “pool” employees volunteered for the assignment, does not constitute a violation of the terms of the labor agreement. In the event an employee is selected for his/her greater ability and/or job knowledge, the company agrees to review the reason(s) for such a decision with the union. 6. An employee who is assigned a field duty assignment must remain on the field service assignment until relieved, the employee receives approval from the company to return home or the employee has been assigned to the field duty location for sixty (60) days of work, whichever event occurs first. Any other occupation or craft which requires field service will be polled and selected by seniority, qualification and ability to perform the specific task. In the event the required employee needs are not attained, any or all remaining requirements for qualified manpower shall be satisfied by non-bargaining unit personnel. Anyone selected for field service will be placed in a field service department. A local offsite field service department will be established when needed. Section 13. Nondiscrimination Neither the company nor the union shall discriminate against any employee because of race, creed, color, sex, or national origin, handicapped, disabled veterans, veterans of U.S. military service, Vietnam Era veterans, or because of participation or nonparticipation in union activity. In as much as both parties recognize the desire to provide a work environment free from any form of discrimination or harassment based on any of the aforementioned, or other legally recognized protected classes, the parties agree to work collectively to provide a positive, respectful and productive workforce. As part of the parties’ collaborative effort to protect and value the diversity of all employees, both the Union and the company will engage in and support the education of employees on workplace diversity issues, including participating on Diversity Counsels and other similar means designed to further raise the awareness of workplace diversity/harassment issues. The company and the union recognize that it is needful for the company to maintain a current Affirmative Action Plan and to submit same to the Federal Compliance Agency having jurisdiction thereof. As in the past, the parties agree that the union shall have no voice in or control over actions of the company in employing new employees and no provision of this collective bargaining agreement shall restrain the company in selecting new employees; provided, however, that the bonafide seniority system agreed to by the parties shall be and remain in effect. The term “he” or “his” as used in this agreement is understood to include both men and women employees. 58 Section 14. Rest Periods A twenty-minute rest period at a time designated by the company at or near the mid-point between the regular starting time of first and second shifts and their designated lunch times shall be given to all employees assigned to such shifts. Employees working at least twelve (12) hours shall be allowed to observe an additional ten (10)minute rest period at a time designated by the company near the mid-point of the last third of the shift. Employees required to work at least two (2) hours of pre-shift overtime shall be allowed to observe an additional ten (10)-minute rest period at a time designated by the company near the beginning of their regular starting time. Exceptions may be made with respect to when such rest allowances will be observed where work operations including the handling and operation of equipment and machines, are of such a nature that the work needs to be continued without interruption. Section 15. Drug Free Workplace Both the company and the union wish to cooperate in making our work place a safe environment and our workforce a productive one for the benefit of all the Parties, our customers and our community. To that end the Company affirms that it will zealously administer and conduct its drug testing programs to ensure that: • • • The dignity and privacy of those tested will be safeguarded to the maximum extent possible. The program may not be used for any purpose except the achievement of a drug-free work place and workforce. It will continue to employ the rigorous controls, safety checks and quality control measures that are employed in testing other segments of the workforce. For its part, the Union agrees to support the Substance Abuse Testing Program described herein. All parties agree that their mutual interests will be best served in adopting this program to achieve the goal of a drug-free work place and workforce. 1. Purpose To define substance abuse testing practices to provide a drug-free work place/workforce for all employees. 2. Policy It is the policy of the Company to hire/employ only individuals who do not use illegal drugs or other controlled substances in any amount or frequency, unless properly prescribed for them by their physician. The term "illegal drugs" means controlled substances included in Schedules I through V as defined by Section 202 of the Controlled Substances Act (21 U.S.C. 812), the possession of which are unlawful, and include amphetamines, barbiturates, benzodiazepines, cannabinoids, cocaine, methadone, methaqualone, opiates, phencyclidine and propoxyphene. The Company will not arbitrarily change the current list of drugs 59 being tested. In the event the Company deems it appropriate to change the list of drugs being tested (Substance Abuse Panel-10), the Company will consult with the Union at least thirty (30) days prior to any change. In the event the parties do not agree on the proposed change, such change will not take effect until the issue can be resolved by a mutually satisfactory third party. The term "illegal drugs" does not include controlled substances obtained and used pursuant to a valid prescription or as otherwise authorized by law. Human Resources will administer the following "Substance Abuse Testing Program." The Substance Abuse Testing Program will apply to the following individuals: a) All IAM represented new hires, recalls, rehires, and reinstatements will be tested as part of the Company's pre-employment review requirements. If the employee has not been absent from the payroll for thirty (30) days or more, this provision will not apply. b) All IAM represented employees will be subject to systematic random testing without notice and after a positive test, accelerated testing under Section 4.c. c) All IAM represented employees will be tested for cause based upon a reasonable suspicion to believe that such persons are under the influence of illegal drugs, after involvement in accidents or potentially dangerous near-miss accidents which could be attributed to substance abuse or whose performance is impaired and who exhibit behavior consistent with substance abuse. 3. General Procedures a) Urinalysis drug screen tests consist of an initial Enzyme Multiplied Immunoassay Technique (EMIT) screen, confirmed by Gas Chromatography/Mass Spectrometry (GC/MS). Such testing will be conducted by a U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA) (formerly NIDA) certified laboratory. The screening parameters and cut-off levels for both test categories are published by SAMHSA b) Individuals to be tested will complete and sign an Authorization and Release Form (Attachment 1), listing prescribed and over-the-counter medications taken within the last thirty (30) days. Failure to sign an Authorization and Release Form or to provide a sample in accordance with the procedures set forth herein will be considered failure to successfully complete the substance abuse test and will be reason for disciplinary action up to and including discharge. c) The collection of individual urine samples and the testing of same will be supervised by Companydesignated medical personnel and collection/testing facilities in a manner consistent with the following standards: (1) Urine samples will be collected from individuals in such a manner as to ensure the integrity of the testing process. (2) Special containers will be provided for specimen collection. (3) Suitable, sanitary and private facilities will be provided for the collection of urine specimens. (4) Sample collection will be supervised, but not witnessed. An enclosed stall will be provided to ensure privacy of the individual. (5) The Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee clinic manager or approved designee will immediately review all situations where there is reasonable suspicion that an individual has submitted a suspicious or potentially adulterated sample. When the Medical Department or its approved designee determines an original sample to be suspicious, that sample shall immediately be set aside as unsuitable for testing and the individual must submit another sample before leaving the collection site. Samples may be considered suspicious or potentially substituted or adulterated if the urine temperature registers below 90° or above 60 100° within four minutes, and/or the sample imparts a suspicious odor or abnormal appearance. (6) Container will be sealed with tamper-evident tape in the presence of the individual tested. (7) Specimens will be labeled and checked to ensure that the name on the label matches the name on the Authorization & Release Form and the Chain of Custody Requisition Form. (8) The label will be signed by the individual. (9) The Chain of Custody Requisition Form and the Authorization and Release Form will be kept on file for one (1) year from the date of testing for a positive specimen and one (1) month from the date of testing for a negative specimen. (10) The lab will relay test results to the Medical Review Officer who will personally discuss lab tests reported positive with the individual. If the Medical Review Officer determines the positive test is the result of legal usage, the test will be reported as negative. Only results certified as positive by the Medical Review Officer will apply in Section 4, below. d) Test results will be handled as "Company Private" information and are not to be communicated outside the Company, except as required by contract or law. Currently, these requirements are clearance reporting requirements and court orders. e) Individuals who test positive may request, within thirty (30) days of being notified of their results, a re-confirmation test on the same biological specimen, to be conducted by a SAMHSA certified testing facility at the individual's expense. Such re-confirmation testing only uses the GC/MS method, and only tests for the presence of the drug(s) and/or drug metabolites in question. The presence of those drug(s) and/or drug metabolites at any detectable level by GC/MS, without regard to the previous screening and confirmation test cutoff levels, is considered a positive result. In the unlikely event the test results are negative, the Company will reimburse the employee for laboratory testing charges. f) If there is a reasonable suspicion of a faulty specimen or if the laboratory report shows evidence of an "abnormality" in the specimen, Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee Medical may request a retest. The Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee Medical Review Officer will provide the employee with an explanation for the retest. g) The following actions are considered major disciplinary offenses, and are equivalent to a positive test result for purposes of determining subsequent disciplinary actions and processing in accordance with Section 4 below: (1) repeated refusal to cooperate with the testing procedures, (2) laboratory documentation of substitution or adulteration of a test sample: (3) failure to report for testing within a reasonable amount of time after being notified of a random drug test. 4. Positive Test Results a) Positive test results are communicated to the employee in person by the Medical Review Officer and negative results are communicated via personal and confidential memo. b) If the Medical Review Officer is convinced the positive test results are the result of a one (1) time usage of a valid prescription issued to a member of the employee's immediate family, the test results will be pended and the employee will be subject to accelerated unannounced testing for the next ninety (90) day period c) Employees who test positive will be placed on unpaid suspension for five (5) working days and in addition, during the five (5) day period, will be required to seek help from a company-directed counseling and assistance program or a company-approved drug treatment program prior to being allowed to return to work. The employee will be required to read and sign a Return-To-Work Conditions Form (Attachment 2). 61 d) The employee will be subjected to regular random drug tests as well as an accelerated schedule of unscheduled and unannounced tests, for two (2) years following his or her return to work. For the purpose of calculating two (2) calendar years, any period of time spent on layoff or on vacation will count towards the satisfaction of the two (2) year testing period. Notwithstanding the foregoing, an employee will not be considered to be “subject to testing” during any period of time on layoff or in a leave of absence status in excess of thirty (30) consecutive days. Accordingly, the employee shall be subject to an additional period of accelerated unannounced testing equal to any such period(s) spent in a leave of absence status. The two (2) year period does not constitute an employment contract or other guarantee of employment during such period. e) The employee who tests positive again under d, above, will be discharged. 5. Recalled Employees a) All laid off employees with recall rights who have been absent from the payroll for at least thirty (30) days and who are offered employment in accordance with Collective Bargaining Agreement, shall report to the plant Medical Department for a drug test. b) A laid off employee who tests positive within a two (2) year period from the date of a previous positive test will be denied recall and lose all seniority. c) A laid off employee who tests positive beyond the two (2) year period of a previous positive test or an employee who tests positive who was not on accelerated drug screening at the time of layoff will be denied recall and bypassed for a thirty (30) day period beginning on the date the positive test results are communicated, during which time the individual should seek help from a drug counseling or treatment program. Upon the expiration of the thirty (30) day period, the individual shall again report to the plant Medical Department for a drug test. If the individual again tests positive, he/she will be denied recall and lose all seniority. If the individual tests negative, he/she will be returned to work but subjected to regular random drug tests as well as an accelerated schedule of unscheduled and unannounced tests for two (2) years following his/her return to work. 6. Testing For Cause a) When there is reasonable suspicion to believe an individual's behavior has been impaired by substance abuse or after involvement in an accident which caused a bodily injury or property damage, the employee will be subject to the above testing procedures. b) Prior to the authorization of a "reasonable cause" drug test, the Site Manager of Human Resources will notify the Union President before a drug test is to be administered on a "reasonable cause" basis. c) Nothing in this policy will preclude the Company from taking action against the employee warranted by other policies, procedures, rules of conduct, etc. 7. Testing Responsibility a) Medical informs supervision in a timely manner of employees selected for substance abuse testing. b) The supervisor has the employee read the instruction letter and fill out an Authorization and Release Form (Attachment 3). The employee is sent to Medical. c) Medical has the employee sign the Authorization and Release Form and collects a sample as specified in the General Procedures section. d) The Company’s Medical Review Officer receives test results, confirms test results, notifies employee(s), and communicates positive test results to the Site Manager of Human Resources or designee. 62 e) If a test result is a Medical Review Officer confirmed positive, Medical notifies the appropriate Labor Relations Representative for action as outlined in Section 4. f) Labor Relations notifies Security of positive results when the employee has a security clearance. g) Labor Relations notifies the EAP Coordinator of applicable positive test results so that coordination with the EAP provider can be established. h) The Company Medical Director is authorized to release individual employee test results to Security when the employee is being submitted for a security clearance. 63 SUBSTANCE ABUSE SCREENING AUTHORIZATION AND RELEASE FOR BARGAINING UNIT EMPLOYEES Name Employee Number I authorize _________________________________________ to collect a urine sample at the request of Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee (hereafter referred to as the “Company”) for the purpose of laboratory analysis to detect the presence of any illegal drugs and/or controlled substances. I agree to the release of any results to the Company, and I release and hold harmless the Company, its directors, officers, stockholders and employees, and the Union, its officers, representatives and agents for any internal use of this information relating to my employment with the Company; provided that nothing herein is intended or shall operate to waive or limit my right under the contract grievance and arbitration procedure, or otherwise under state or federal law. I understand that the results could affect my eligibility for future employment or continued employment at the Company. In order to assist in determining whether the presence of any drug or substance which may be found in the urine sample can be accounted for in accordance with a valid prescription issued by a physician or is an over-the-counter drug, please list any medications and prescription drugs (by medical or trade name, if known) and/or injections taken within the last thirty days. For example: Allergy medicine; asthma or wheezing medicine; cold, cough, sinus medicine; depression medicine, diet pills; heart medicine; tranquilizers or nerve medicine; mood elevators; muscle relaxer; nausea, vomiting or diarrhea medicine; pain medicine; seizure medicine; sleeping pills; stomach, colon or digestive medicine. Insert “NONE” if appropriate I have read or was read this Authorization and Release Form and fully understand its content. ________________________________________ NAME ____________________________ DATE Please take this form to medical and leave this form, completed and signed, with the attendant in medical. Your screening will not be valid unless accompanied by this form. 64 RETURN-TO-WORK CONDITIONS FOR BARGAINING UNIT EMPLOYEES NAME:_______________________________________________________________________ (Print Full Name) EMPLOYEE NO.:________________________ As a condition of employment, because I have tested positive for use of illegal drugs, and/or unauthorized controlled substances, I understand that I am required and I agree to enter a Company-directed approved rehabilitation program prior to being allowed to return to work. I agree that I will seek and receive counseling/treatment from a qualified provider approved by the Company and will continue to follow their recommendations. I understand that failure to comply with the treatment program and any future use of illegal drugs or an unauthorized controlled substance within the next two years will result in termination of my employment without recourse. I further understand that all expenses connected with my treatment of rehabilitation programs are subject to the provisions of the Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee, benefit plan by which I am currently covered, and that this may necessitate out-ofpocket expenses on my part. I hereby authorized the administrator of the Employee Assistance Program (EAP), to contact and exchange information regarding my progress with any treatment provider and the Company’s Human Resources Representatives and/or the PAP Representative. Further, I understand that I will be subject to scheduled drug tests, as well as unscheduled and unannounced drug tests, for two (2) years following my return to work. Nothing herein shall be construed as an employment contract or guarantee of employment during the aforesaid two-year period. For the purpose of calculating two (2) calendar years, any period of time spent on layoff or on vacation will count towards satisfaction of the two (2) year testing period. Notwithstanding the foregoing, I will not be considered to be “subject to testing” during any period of time in Leave of Absence status in excess of thirty (30) consecutive days. Accordingly, I shall be subject to an additional period of accelerated unannounced testing equal to any such period(s) spent in Leave of Absence status. I release and hold harmless Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee, its directors, officers, stockholders and employees, and the Union, its officers, representatives and agents for any internal use of this information relating to my employment with Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee; provided, that nothing herein is intended or shall operate to waive or limit my rights under the contract grievance and arbitration procedure, or otherwise under state or federal law. _________________________________________ Employee Signature __________________________ Date _________________________________________ Witness 65 Instruction Letter I understand that I have been selected to report to the Plant Medical Department today for Substance Abuse Testing per the provisions of the Collective Bargaining Agreement and the following will apply: ♦ I must report to Medical for testing at the time listed below. ♦ I am not permitted to leave the plant before reporting to Medical. ♦ I may be required to complete and sign additional testing, authorization and release forms while in Medical prior to testing. ♦ Once I have reported to Medical for testing I may not leave Medical before completing the testing process and have been released by Medical to return to my regular duties. ♦ Additionally, I understand the following contractual language applies: The following actions are considered major disciplinary offenses, and are equivalent to a positive test result for purposes of determining subsequent disciplinary actions and processing: (1) repeated refusal to cooperate with the testing procedures, (2) laboratory documentation of substitution or adulteration of a test sample; (3) failure to report for testing within a reasonable amount of time after being notified of a random drug test. Authorization and Release Form Name (Print): Employee Number: I have read, or was read the instruction letter and this Authorization and Release Form and fully understand its content. I authorize and release (Supervisor)________________________________________ to notify medical that I have been properly notified and that I have been instructed to report to Medical with this form, not later than:_______________________ a.m. / p.m. (circle one) on __________________ (date). Employee Signature Date: Supervisor Signature Date: Supervisor, Employee was Notified: Time: 66 a.m. / p.m. (circle one) ARTICLE XIV SAFETY AND FIRST AID Section 1. Health and Sanitation Both parties to this Agreement will maintain high standards of safety, health and sanitation in the plant in order to eliminate, as far as possible, accidents and illness. The company agrees to furnish good drinking water and sanitary fountains where necessary and further agrees to keep the floors of the toilets and wash rooms in a clean, dry and sanitary condition. Employees shall cooperate with the company in maintaining these conditions. Shops and wash rooms will be lighted and heated in the best manner possible consistent with the source of heat and light available. Lockers will be provided for the employees of the paint shop or where it is found necessary. Section 2. Safety Committee A Safety Committee is hereby created composed of three (3) members from the first shift, one (1) member from the second shift and one (1) member from the third shift, selected by the union and such representatives as the company may select, one (1) of whom shall be the company’s safety supervisor. The Committee shall be notified immediately of all major injuries. The duty of the Safety Committee shall be to see that all applicable state and municipal safety and sanitary regulations are complied with, as well as to make recommendations for the maintenance of proper safety standards. The Committee shall receive and investigate complaints regarding unsafe and unsanitary working conditions. If it becomes necessary to investigate an allegedly unsafe or unsanitary working condition, the shift safety committeeperson shall sign out, call the Safety Department, and give notice of the alleged problem. The safety committeeperson and safety supervisor, or his designee, will meet and jointly investigate the alleged problem. Should the safety supervisor or his designee with authority to resolve the problem be unable to accompany the safety committeeperson at the time notification is given, the shift safety committeeperson may proceed with the investigation of the alleged problem. Proper and modern safety devices shall be provided for all employees working on hazardous or unsanitary work, such devices shall be furnished by the company. The Safety Committee shall meet during the last week of each month, or more often if conditions warrant it, to receive and review any reports of unsafe or unsanitary conditions, and will thereafter make recommendations concerning same. Copies of the meetings’ minutes will be furnished to the general manager and the union. No employee shall be discharged, pending an investigation by the Safety Committee, for refusing to work on a job which he believes is not reasonably safe and/or sanitary for him or might unduly endanger his health. The Safety Committee will meet with the appropriate company official having directional responsibility for safety to discuss and resolve any safety problems. The meeting will take place the first week of every quarter or more often as needed. Employee exposure monitoring capability to identify and preclude potential employee overexposure to hazardous products and materials including, but not limited to, epoxies, formaldehydes, and carbon fiber materials, shall be furnished for use by the Safety Committee members. 67 The company shall not prohibit or discourage an employee from transmitting factual information to his/her physician. This information includes material safety data sheets and monitoring test results. As in the past, employees will not be harassed or threatened because of seeking medical help. The company will continue to furnish protective equipment where reasonably required. Employees are encouraged to cooperate with the union Safety Committee members and the company safety engineers in investigation of potential hazards prior to involving any outside agency. Although employees are not prohibited from contacting outside agencies, this should be done only after the normal in-house procedures fail to resolve the issue. Section 3. Nurses, First Aid Stations There shall be maintained on all shifts a registered nurse and a first aid station to administer to the needs of the employees in the case of accident or emergency illness except where regular full shifts are not operating, such as weekends, holidays, or where shifts have been discontinued, in which case adequate medical service will be provided. Whenever a shift operates for thirty (30) days at a level of at least seventy-five (75) employees, on a regular full-time basis of forty (40) hours per week, a registered nurse shall be assigned. Section 4. Accident Report Employees injured while at work will not be required to make out accident reports before being given medical attention. Medical attention will be given as quickly as possible. Employees will make out accident reports as early as practicable and will not be required to sign releases pending the settlement of their cases. Any employee shall be paid at the applicable hourly rate while receiving medical attention. Employees who are, in the opinion of the medical department, unable to return to work following injury shall be paid for the remainder of the day at their regular straight time hourly rate. If it is determined by the medical department that an employee can continue to work on the day of an accident, but it is determined by the medical department that the employee cannot continue to work on the following day, the employee will be paid for the remainder of the following day at the appropriate rate. However, no employee shall be eligible to be paid for time both not worked on the day the injury occurred and the next day. 68 ARTICLE XV BENEFITS A. The company will continue to provide group medical, dental, life insurance, and weekly sickness and accident benefits coverage for employees, as set forth in the attached group benefits schedule and in the summary plan descriptions of coverage which shall be issued to employees on the active payroll of the company who enroll for and make any required contribution for such coverage. B. Healthcare coverage in effect as of February 4, 2012 will remain in effect throughout 2012. Effective January 1, 2013, active employees will have the option of enrolling in one of two medical plans as described in the attached group benefits schedule. An annual open election period will be held to afford employees the opportunity to change their medical plan election. Each medical plan has a scheduled contribution rate and these contributions will be withheld from weekly pay on a pre-tax basis. C. Any active employee age 65 or older and/or their covered spouse age 65 or older who elects to receive primary coverage under Medicare (in lieu of primary coverage under a group medical plan provided pursuant to paragraph A of this Article) must provide the secondary medical coverage at their own expense; however, prescription drug, dental, life insurance and weekly sickness and accident benefits would continue under the group plans. D. The identity of the insurance carrier or claims administrators shall be determined, and may be changed by the company at any time; provided, that no such change shall cause a reduction in the level of benefits specified herein. E. Employees who retire on or after September 26, 1992, and/or surviving spouses of retirementeligible employees who are under age 65 and who were covered by the group medical program at the time of their retirement (or death) shall be provided medical benefits under the same medical plan of benefits that applies to active employees. Retirees under age 65 will also be given the opportunity to change medical plans during the annual open election period. Beginning January 1, 2010, retirees will be provided a healthcare credit of $20.00 per month times their pension credited service which will be applied to the cost of their selected medical plan. (See page 89, for additional Retiree Healthcare information.) Retirees will pay any difference between the cost of their selected plan and the value of their healthcare credit, if any. F. Employees who retire on or after October 2, 1989, their spouses or surviving spouses who attain age 65 or become eligible for Medicare coverage pursuant to applicable law, will no longer participate in the group medical plan of benefits and an individual Medicare Supplement Plan and a prescription drug plan will be offered. The company will pay $43.68 per person for this Medicare Supplement Plan coverage; any excess premium will be paid by the covered individual. The company will pay $425 per person for this prescription drug plan coverage; any excess premium will be paid by the covered individual. G. Employees who are laid off in a reduction in force shall continue to be covered by group medical, dental, and life insurance (excluding weekly sickness and accident benefits) to the end of the month of layoff. Medical and dental coverage may be extended through the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), Pub. L. 99-272. 69 ARTICLE XVI PENSIONS The company and the union have agreed upon certain amendments to the pension plan which shall be effective as of February 5, 2012. The entire agreement on the subject of pensions shall be contained in a separate Supplemental Agreement Covering Pensions. No controversy or dispute relating in any respect to the provisions of the above-mentioned Supplemental Agreement Covering Pensions shall be subject to the grievance and/or arbitration procedure contained in Article VIII of this agreement. 70 ARTICLE XVII ASSIGNMENT This agreement shall be binding upon the successors and assigns of the company, and no provisions, terms or obligations herein contained shall be affected or changed in any respect by the consolidation, merger, sale, transfer, or assignment of the company, or affected or changed in any respect by any change in the legal status, ownership, or management of the company, or by any change geographically or otherwise of the location of the company’s business in respect to the company’s Nashville, Tennessee plant. 71 ARTICLE XVIII DURATION OF AGREEMENT Section 1. Duration, Amendment, and Termination A. This agreement shall be effective as of February 5, 2012, and shall continue in full force and effect without change until 11:59 p.m. on February 6, 2016. If either party desires to terminate the aforesaid collective bargaining agreement, such party may terminate the same on February 6, 2016, or on the anniversary date of any annual renewal thereof, by giving a written notice to terminate to the other party at least sixty (60) days prior to the date involved. Negotiations with respect to a new agreement shall not commence prior to the beginning of the aforementioned sixty (60)-day period, but the parties shall meet promptly after the said date for such negotiations. B. If either party desires to amend the aforesaid collective bargaining agreement, such party shall give a written notice to the other party of its desire to amend at least sixty (60) days prior to February 6, 2016, or prior to the applicable anniversary date of any annual renewal thereof, as the case may be. Such notice shall set forth the proposed amendments. Negotiations with respect to the proposed amendments shall not commence prior to the beginning of the aforementioned sixty (60)-day period but the parties shall meet promptly after the said date for such negotiations. C. If negotiations for an agreement with respect to the proposed amendments should continue beyond February 6, 2016, or beyond the applicable anniversary date of any annual renewal, as the case may be, the said collective bargaining agreement, as hereby amended and supplemented, shall continue in full force and effect, provided, however, that either party then may terminate the same upon ten (10) days written notice to the other party. Section 2. All Inclusive Agreement This agreement, as supplemented by the Supplemental Agreement Covering Pensions referred to in Article XVI of this agreement, and the Supplemental Agreement Covering New Technology, and as further supplemented by the Addendum Agreements attached hereto and made a part hereof as Exhibit D, supersedes all previous agreements between the parties, whether written or oral, constitutes the entire contract between the parties, and settles all economic demands between the company and the union. The parties acknowledge that during the negotiations which resulted in this agreement each had the unlimited right to make demands and proposals of any nature whatsoever. Therefore, the company and the union, for the duration of this agreement, waive the right, and each agrees that the other shall not be obligated, to bargain collectively with respect to any subject or matter which is subject to collective bargaining, whether or not such subject or matter is specifically referred to herein. Any memoranda or supplemental agreements (except the Supplemental Agreement Covering Pensions and the Supplemental Agreement Covering New Technology mentioned above), any side agreements (except the Addendum Agreements attached hereto), are null, void and of no further force or effect. 72 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their duly authorized representatives as of the date first above written. TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION A TRIUMPH GROUP COMPANY NASHVILLE, TENNESSEE By: N. Wayne Martin Norm Porter Jack Schultz Danielle Garrett David J. Whitney INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS AFL-CIO, AND ITS AERO LODGE NO. 735 By: Bill Benson, Local Lodge President Ricky Wallace, Business Representative Bobby Wilson Kenneth McMahan Timmy Trapp Randall Albright Mark Lee James Skelton 73 EXHIBIT “A” MINIMUM / MAXIMUM WAGE RATES LABOR GRADE 03/05/12 MINIMUM 12 11 10 9 8 7 6 5 4 3 2 1 $14.75 $14.25 $13.75 $13.25 $12.75 $12.50 $12.25 $11.75 $11.50 $11.25 $11.00 $10.75 02/06/12 02/04/13 02/03/14 02/02/15 MAXIMUM MAXIMUM MAXIMUM MAXIMUM $26.46 $26.10 $25.73 $25.44 $25.25 $25.18 $25.08 $25.00 $24.85 $24.77 $22.04 $19.04 $26.96 $26.60 $26.23 $25.94 $25.75 $25.68 $25.58 $25.50 $25.35 $25.27 $22.54 $19.54 $27.46 $27.10 $26.73 $26.44 $26.25 $26.18 $26.08 $26.00 $25.85 $25.77 $23.04 $20.04 $27.96 $27.60 $27.23 $26.94 $26.75 $26.68 $26.58 $26.50 $26.35 $26.27 $23.54 $20.54 NOTE: Increase per progression is $0.20 every three (3) months in all labor grades. 74 EXHIBIT “B” OCCUPATIONAL LISTINGS JOB CODE I01 I02 L03 JO4 I05 J06 K07 J08 K09 J10 K11 I13 K15 I16 J17 G18 K19 G20 K22 H24 J25 H26 K27 K28 D29 B31 LABOR GRADE 09 09 12 10 09 10 11 10 11 10 11 09 11 09 10 07 11 07 11 08 10 08 11 11 04 02 OCCUPATION Aircraft Assembler/Installer Composite Utility Person Electrical Maintenance Final Structure Installer Form Operator Inspector Assembly Inspector Bonding & Ultrasonics Inspector Magnetic, Penetrant and Dye Check Inspector Material Review Inspector Parts Inspector Tooling, Precision Gauge and Blueprint Layout Machinist and Router Operator Maintenance Carpenter Metal Form Metal Prep and Welder Metal Sizing Numerical Control Machine Operator Part Processor Plant Maintenance Prep and Finisher Production Machinist Shop Dispatcher Tool and Die Maker Tool Maintenance Burr & Blend Machine Shop Utility 75 EXHIBIT “C” JOB RECALL AGREEMENT Name Department Employee Number Address Occupational Recall A. I will accept recall to: 1. _________________________________(The Occupation from which laid off) 2. _________________________________(Other Occupations in any department held prior to assignment in occupation from which laid off) General Recall B. I will accept recall to: 1. Any hourly paid occupation for which I am qualified. I understand I am obligated to accept job openings as indicted above to avoid affecting my seniority and that this agreement may be changed or revoked only by written notice to the company prior to a job offer. Signature Date 76 EXHIBIT “D” LETTERS OF UNDERSTANDING The following addenda are agreements reached during the course of the 1998 and prior negotiations and are considered part of this labor/management agreement. Letter #1 SHOP DISPATCHERS At least one (1) shop dispatcher will be assigned to each major program. Locating, expediting and delivering parts throughout the plant using a list or report furnished by the company are tasks to be performed by the shop dispatcher classification. Salaried employees will not perform shop dispatcher work. Letter #2 CORDEX MEASURING MACHINE When hard tools that were originally fabricated by the bargaining unit are transferred to the CAD/CAM system by obtaining the data from the hard tool by utilizing the cordex measuring machine, the cordex measuring machine will be operated by an hourly employee. When it becomes necessary to digitize soft tools (flat pattern mylars only) using the appropriate coordinate measuring system, the task will be performed by the proper bargaining unit occupation. Letter #3 INSPECTOR - TOOLING, PRECISION GAUGE AND BLUEPRINT USE OF OPTICS Without the assistance of another occupation, Inspector - Tooling, Precision Gauge and Blueprint job duties will include the use of optical equipment, theodolites and laser tracker for the investigation and/or rechecking of any suspected, known or reoccurring problem with parts, assemblies or tools that quality assurance has previously accepted. 77 Letter #4 TRANSPORTATION OF MASTER GAUGES Inspector - Tooling, Precision Gauge and Blueprint will witness the transportation of master gauges which are not stored in sealed containers. Those master gauges transported in sealed containers will not require such accompaniment as they will have been previously reviewed and approved for proper packaging by Inspector - Tooling, Precision Gauge and Blueprint. Inspector - Tooling, Precision Gauge and Blueprint will verify the method of handling/storage to be acceptable prior to removal of the master gauge from its container. The tooling occupation using the master gauge will transport master gauges. Letter #5 STRUCTURAL WORK COMPLETION The company will make a concentrated good faith effort to complete all structural work in the position in which the work is planned to be completed prior to moving the unit to the next department. To this end, the company will listen to and consider suggestions and input from departmental committeeperson. Also, the departmental committeeperson may discuss the status of the unit with the supervisor at the time of movement of that department’s work and the reason for such movement. Letter #6 LOADER, TRUCK DRIVER AND LOCOMOTIVE OPERATOR When it becomes necessary to pick up production, maintenance or tooling items not normally delivered by commercial carriers or vendors in the metropolitan area, the company agrees such assignments will be performed by the shop dispatchers. Letter #7 BLUE TAGS Blue tags, which are required for verification of completion of a major component for shipment, will not be removed unless a discrepancy is found by inspection which requires a squawk and/or a NMR tag to be written which requires rework. 78 Letter #8 PRODUCTION AND MAINTENANCE ITEMS TO BE LOADED BY SHIPPING DEPARTMENT All production items to be shipped will be loaded by the shipping department. Maintenance or tooling items to be shipped may be loaded by maintenance, tooling, or shipping. This excludes employeepurchased items and items to be shipped to non-aircraft commercial customers. Letter #9 ILLNESS OF FOUR (4) DAYS OR LESS It is agreed by the company and union that those employees who return to work after an illness whose duration is four (4) days or less shall not be required to present a medical certification to the company in order to be returned to work. An employee who has been absent from work for the period of more than four (4) days shall be required to present medical certification to the company medical department in order to be returned to work. In the event there is no one on duty in the medical department, the employee will report to his immediate supervisor in order to be cleared to return to work. Letter #10 SENIORITY - PERMANENT TOTAL DISABILITY Employees who are receiving benefits under the permanent and total disability provision of the Hourly Pension Plan shall accumulate seniority during such period as he is receiving benefits thereunder, but shall not receive credit for such time he was absent for purposes of computing automatic increases. In the event he recovers sufficiently to be able to return to active employment, he shall be permitted to do so as outlined under the provisions of Article IX, Section 12, of the labor agreement. However, the sixty (60)-month limitation provided under the aforesaid section shall not apply to the employee so affected by this understanding. 79 Letter #11 TRAINING ON ELECTRONIC DATA EQUIPMENT It is the intent of Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, that as the use of electronic data collection and display equipment becomes a part of any Triumph Aerostructures employee’s job, he/she will be given opportunity for training and use of this equipment. Letter #12 RIGHT TO WORK VS. UNION SHOP In the event the Federal and/or laws of the State of Tennessee shall hereinafter be amended or modified so as to permit and authorize the execution of collective bargaining agreements requiring union membership as a condition of employment, the company agrees to discuss the subject of a union shop with the representatives of the union upon request by them. It is understood that this agreement shall not be interpreted to authorize negotiations of any other terms or conditions of employment during the life of the labor agreement between the parties, nor shall it modify or limit in any way the provisions of Article XI of that agreement. Letter #13 PAY CHECKS - JURY LEAVE This confirms our mutual agreement that employees who serve on a jury and report the days served and the amount of outside compensation to be received to the Human Resources Department by 7:30 a.m. on Friday of the week served be entitled to receive a check for the amount to which they are entitled by Section 6A of Article X. Check will be released to the employee on the next pay day thereafter, provided he has submitted a statement from the clerk of the court to Human Resources. Letter #14 TOOL ACCEPTANCE / REJECTION POLICY Tooling Fabricated In-House The responsibility for acceptance or rejection of production tooling fabricated in-house at Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee is vested solely in the quality assurance organization. Only appropriate bargaining unit personnel assigned to the quality assurance organization or a management representative of the quality assurance organization who 80 has managerial responsibility for tool acceptance or rejection shall be authorized to accept tools fabricated in-house as being in compliance with engineering specifications or to reject such tools for non-compliance. Tooling Rework After initial acceptance of a tool, as reflected by the affixing of an inspection stamp, no rework of the tool shall be performed without quality assurance re-inspection and confirmation of discrepancy. Reworked tools shall be accepted or rejected by the quality assurance organization at the conclusion of the work. Quality assurance management shall be the responsible party in determining when reworked tools require inspection and when rework to a tool is authorized prior to re-inspection and confirmation of discrepancy. Tool Investigations All tool fabricators, users, operations supervisors, tool designers, and engineering support personnel are responsible to assure that tooling is properly fabricated and that it functions satisfactorily when used in production. Letter #15 TOOLING CRAFT JOB OCCUPATIONS OVERTIME SCHEDULING PRACTICES The job consolidation of maintenance and tooling craft job occupations has given cause for the parties to set aside as null and void all practices and/or expressed terms of agreement or oral supplemental agreements pertaining to the scheduling of overtime of maintenance and/or tooling craft employees when maintenance craft subcontractor’s and/or tooling craft contractor employees work overtime. The following shall apply: TOOLING CRAFT EMPLOYEES When a tooling craft contractor is performing work on an overtime basis within the plant on work which is customarily performed by Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee tooling craft job occupations, a like number of Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, Nashville, Tennessee tooling craft employees, assigned to the shift that the contractor is working overtime on and who would otherwise be assigned the task being performed by the contractor, shall be offered the opportunity to work the same overtime hours being worked by the contractor. For purposes of this understanding, tooling craft employees shall be defined as employees assigned to and actively working in the job occupations of: jig and fixture builder and tool and die maker. 81 Letter #16 PRODUCTIVITY IMPROVEMENT The concept of promoting productivity improvements and enhancing the division’s competitive status through active participation in the business planning process by all employees is endorsed and encouraged by both parties. The company and the union agreed to actively encourage participation in involvement programs and activities. In order that production and maintenance employees might share in the gains achieved by the process, the parties agree to establish a joint study committee composed of equal number of representatives not to exceed an overall total of six. The purpose of this committee will be to study and make recommendations to management and to the union as to the most effective and meaningful type of non-traditional work systems and employee compensations systems. Examples of non-traditional work systems and compensation systems which the committee shall study and formulate recommendations are: gainsharing and high-commitment work teams. Letter #17 KAIZEN / LEAN EVENTS Kaizen / Lean events are a means to improve safety, ergonomics, quality and efficiency in an area or department. The company will determine where and when a Kaizen / Lean event will occur. The company will provide the union with at least a ten (10)-day notice prior to a planned Kaizen / Lean event. During the event, employees in the department may perform whatever task necessary not requiring special skills or training to complete the event in their department. Maintenance workers will be provided for those tasks requiring special skills or training. Letter #18 NEW HIRE ORIENTATION The company agrees to make available a fifteen (15) minute time segment at the end of its current new employee orientation program for a self-contained IAM presentation to be presented by the Union President or his designee. The content of this presentation will be mutually agreed upon by the Company and the Union. 82 Letter #19 IAM NATIONAL 401(k) PLAN The Union has proposed that the defined contribution benefits agreed to by the parties be provided through the Company’s participation in the IAM National 401(k) Plan (the “Plan”), rather than through the Company’s Savings and Investment Plan. The Union acknowledges that, in order to permit such benefits in accordance with the parties’ agreement, certain amendments will be required to be made to the Plan documents governing the Plan. Should the Union ratify the attached agreement no later than midnight on January 16, 2009, the Company will agree that, provided that on or before April 1, 2009, the Union obtains all amendments to the Plan and other approvals necessary to permit the Company’s participation in the Plan in accordance with the parties’ agreement, the Company will become a Contribution Employer to the Plan effective July 1, 2009. Such amendments shall include those providing for: The participation of bargaining unit employees who do not participate in a defined benefit plan. The acceptance of matching contributions and non-elective retirement contribution account contributions as provided in the parties’ agreement. Defining “total and permanent disability” for the purposes of such distributions to employees who do not participate in a defined benefit plan. The parties agree that, if the Union obtains such amendments and approvals on or before April 1, 2009, the provisions set forth below shall become effective as of July 1, 2009: A. The Company will make authorized weekly/biweekly pre-tax and/or after tax deductions of a percentage of the employee’s current earnings for each pay period. All employees covered by the Agreement will be automatically enrolled at a fixed percentage of 3% from their pre-tax wages; and this percentage will be forwarded to the Fund by the Company unless the employee affirmatively elects not to have the automatic deduction or elects to have a different percentage deducted from his or her wages in accordance with the provisions of the Plan. B. All such deductions shall be remitted to the Plan two business days after the end of each pay period for which the deductions are made but in no event later than the tenth (10th) day of the month following the pay period for which the deductions are made. C. Such deductions are required to be remitted to the Plan by the Company and must be sent to: I.A.M. National Pension Fund, I.A.M. National 401(k) Plan P.O. Box 64341 Baltimore, MD 21264-4341 or such other address as the Trustees may require. D. Participation in the Plan for a new employee will not commence until the employee completes any probationary period, but not more than 1,000 hours of service from the date of hire. 83 E. The Company agrees to make further deductions from the employee’s wages of any monthly amount required by the Plan to pay back a loan taken from the Plan by the employee, if applicable. Such amounts will be deducted and remitted to the Plan in accordance with paragraphs A, B and C. F. The Company agrees to maintain and to timely abide by any deferral election form made by the employee in accordance with the terms of the Plan and provided to the Employer by the Plan and to provide the Trustees of the Fund with all compensation and other data needed for the Trustees to administer the Plan in accordance with the terms of the I.A.M. National 401(k) Plan and applicable law. G. The Company agrees to be bound by, and hereby assents to the terms of the I.A.M. National 401(k) Plan currently in effect and as the Trust and Plan may be amended from time to time. H. This Agreement contains the entire agreement between the Company and the I.A.M. National 401(k) Plan for the participation of this group of employees. No oral or written modification of this agreement shall be binding unless agreed to in writing. I. This Agreement shall become effective upon its acceptance by the Trustees of the I.A.M. National Pension Fund. No employee deductions shall be remitted until notification of acceptance by the Trustees of the I.A.M. National Pension Fund. J. The Company understands that the participation in the Plan of its employees is conditioned on the Company’s compliance with Sections 401(a)(4), 410(b) and 401(k) of the Internal Revenue Code. Participation in the I.A.M. National 401(k) Plan is further conditioned upon the Plan not being a top-heavy Plan under Section 416 of the Internal Revenue Code with respect to the Employer’s non-bargaining unit employees. The Employer agrees to provide the information and certifications required by the Trustees to monitor compliance with the Plan and the Internal Revenue Code, including compensation and other information regarding all Bargaining Unit employees of the Company. If the Company fails to comply with Sections 401(a)(4), 410(b) or 401(k) of the Internal Revenue Code, or if the Plan is top-heavy with respect to the Company’s employees, or if the Company fails to provide information, certifications or additional sums required by the Trustees, the participation of the Company’s employees shall terminate. Letter #20 MEDICAL RESTRICTIONS An employee returning to work from absence due to a work-related injury must report back to work through the Company's Medical Department. The Medical Department will review the release from the employee's attending physician and will determine what temporary restrictions, if any, the employee has. If there are temporary restrictions placed on the employee, Medical will contact the employee's immediate supervisor or designated operations management to determine if the employee can be accepted with the restrictions. If the employee is unable to perform the essential functions of his job classification, the following provisions will apply. 84 However, when an employee is unable to perform the essential functions of his job classification due to temporary medical restrictions, the employee may be assigned, at his current rate of pay including automatic progression raises, to other tasks outside his department within the restrictions of the employee’s functional capacity record. In determining other available jobs the parties shall first examine work within the employees occupation and then any other assignments the employee is capable of performing. The Company will make every effort to place the employee on his respective shift. Should it be necessary to move an employee between shifts, the move will be reviewed every ten (10) days for alternate placement or to place a less senior employee on restrictions in that position. The functions assigned will not be limited to duties covered by the Collective Bargaining Agreement. Such assignments will not result in those duties becoming bargaining unit work. Temporary medical assignments will not establish equity nor will it qualify the employee for that particular occupation. Employees performing such temporary medical assignments are not eligible for overtime. The Union will be provided a weekly list (by Name, Clock Number, Unit, Shift, and duties assigned) of employees assigned to such temporary medical assignments. Any concerns of placement will be immediately addressed upon request of the Union President. In the event a job cannot be found to accommodate the employee's restrictions, the employee will remain on workers’ compensation leave until he returns to work or eligible benefits are exhausted, whichever occurs first. Letter #21 INSPECTOR BONDING & ULTRASONICS (K-07) During the 2012 contract negotiations, the parties agreed to revise the Inspector Bonding & Ultrasonics (K-07) occupation job description. The revised job description will remain in effect provided the following conditions are met: Within ten (10) working days of the effective date of the agreement, the Company will post per the provisions of Article IX, Section 11a., a minimum of one (1) opening in the Inspector Bonding and Ultrasonics occupation utilizing the agreed to revised job description. If there are no qualified internal bidders, the company may fill the position(s) externally. Additionally, a joint committee composed of representatives from the union and the company will be chartered to outline a process that defines how employees can work toward being eligible to fill future openings in the Inspector Bonding and Ultrasonics occupation. In the event there is an additional need for Inspector Bonding and Ultrasonic occupation personnel subsequent to the actions above, provided the joint committee has not reached a recommendation, the Company will post the open position(s) per the provisions of Article IX, Section 11a. However, prior to attempting to fill the position(s) externally the parties will confer and reach agreement on the process used to fill the referenced opening(s). 85 The committee shall present their recommendations to managers from Operations, Quality, Human Resources and the union’s Business Agent, President, and Vice-President or their designees no later than August 31, 2012. Should the committee’s recommendations be acceptable to both parties, they will be reduced to writing and implemented and the revised job description will remain in place. Should there be no agreement reached to implement the committee’s recommendations, the job description that existed prior to February 5, 2012 will be reinstated. Letter #22 TOOL & DIE MAKER OPENINGS During the 2012 contract negotiations, the parties agreed to revise the job description for the Tool and Die Maker (K-27) occupation effective February 5, 2012. The Company further agreed to create two (2) openings for the Tool and Die Maker occupation no later than April 1, 2012. The initial two (2) openings shall be filled as follows: First initial opening: The first position shall be filled based upon the previous job description. If there are internal bidders the second opening will be filled by the most senior bidder deemed qualified because they have previously held the Tool and Die Maker occupation. If there are no internal bidders, the Company may fill the position externally. Second initial opening: The second initial opening shall be based upon the new (2/5/12) job description. Internal candidates will be allowed to bid on the opening via the process as described in Article IX, Section 11. Should there be a qualified internal candidate, said candidate will receive the position. Should there be more than one (1) internal qualified candidate, the most senior candidate shall receive the position. Should there not be any internal qualified candidate, the Company may fill the position externally. For all future openings, the Company may first promote or hire an employee based on the qualifications of the revised job description. The next opening that occurs will be filled by the most senior internal bidder deemed qualified because they have previously held the Tool and Die Maker occupation. The internal bidder’s employment must have been continuous in the bargaining unit since last holding the occupation. Subsequent openings will be filled by the same alternating basis between the new and old job descriptions. When there are no internal bidders who have previously held the Tool and Die Maker occupation or who meet the qualifications of the revised job description, the Company may hire Tool and Die Makers from outside the bargaining unit. 86 Same Automatic - age 55 & 5 years vesting service - no charge $7,000 V. PRE-RETIREMENT SPOUSE BENEFIT VI. DEATH BENEFIT Summary is for information ONLY and does not supersede any provisions of the Hourly Pension Plan as amended. Employees who have attained at least age 55 may apply for a Rule of 80 unreduced early pension. 1600 hours equals one (1) year of credited service. Upon return to work, reduced $1.00 for every $2.00 earned over $6,480. Same Same Same $58.00 x number of years of credited service*** $57.00 x number of years of credited service*** March 1, 2014 Same Same Same $59.00 x number of years of credited service*** $58.00 x number of years of credited service*** March 1, 2015 87 Note: Effective June 30, 2009 employees with less than sixteen (16) years of seniority per Article IX of the collective bargaining agreement as of June 30, 2009, will have their pension benefit frozen. • No further credited service will be counted toward benefit accrual for this plan after June 30, 2009. • Employees will retain what they earn under their plan before the freeze (retirement multiplier of $43) and continue to accrue credited service under the terms of the plan until June 30, 2009. • Effective March 1, 2012, the Company will cease to provide employees with contributions to a Retirement Contribution Account. * ** *** **** Same $500.00 per month IV. SUPPLEMENT TO RULE OF 80**** Same $56.00 x number of years of credited service*** $55.00 x number of years of credited service*** III. AMOUNT OF MONTHLY PENSION UNDER PERMANENT TOTAL DISABILITY RETIREMENT March 1, 2013 $55.00 x number of years of credited service*** March 1, 2012 $54.00 x number of years of credited service*** EFFECTIVE DATE OF RETIREMENT II. AMOUNT OF MONTHLY PENSION UNDER NORMAL OR EARLY DEFERRED RETIREMENT (SUBJECT TO REDUCTION, IF ANY, FOR EARLY IMMEDIATE RETIREMENT**) I. HOURLY PENSION PLAN* Retirement Contribution Account • Effective March 1, 2012, for employees with less than sixteen (16) years of seniority as established in Article IX of the collective bargaining agreement as of June 30, 2009, Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, will cease to provide employees with contributions to a Retirement Contributions Account. Employees hired on or after September 29, 2008 will not participate in the Aerostructures Heritage Pension Plan for Hourly-Rated Employees. 401(k) Plan Access for employees to contribute into a 401(k) plan will be offered to all active employees beginning 7/1/2009. Effective March 1, 2012, the Company 401k match contributions will cease for employees who have sixteen (16) years of seniority or more, as established in Article IX of the collective bargaining agreement, as of June 30, 2009. For employees who have sixteen (16) years of seniority or less, as established in Article IX of the collective bargaining agreement, as of June 30,2009, the company will match the employee’s deferral per the schedule below: Total Tax-deferred and After-tax Contributions by Employee Company Matching Percentage The first 2% 100% The next 4% 50% Contributions over 6% No match given Rule of 80 Supplement Addendum For an employee with less than sixteen years of Seniority as of June 30, 2009, the amount of the Rule of 80 Supplement is as calculated below: (Years of Credited Service as of 6/30/09 / Projected Years of Credited Service at First Retirement Eligibility) X $500/month Projected Years of Credited Service at First Retirement Eligibility is defined as the credited service the employee would have as of the date the Rule of 80 Benefit could first become payable, assuming the employee works full time in covered employment from June 30, 2009 until such date. 88 For example, if an employee has 10 years of credited service as of June 30, 2009 and has 30 years of credited service at age 55 (when first eligible for the Rule of 80 Benefit), the extra amount of the Rule of 80 Supplement would be (10/30) X $500 or $166.67. The Rule of 80 Supplement ends at age 62, or the date of your death, whichever comes first. Retiree Healthcare • • Effective January 1, 2010, the retiree healthcare credit will increase from $16 to $20, as described in Article XV “BENEFITS” subparagraph E (Company will continue to pay $43.68 towards medical coverage as described in subparagraph F). The company’s cost of coverage for prescription drugs will be capped at $425.00 per covered life per month as described in Article XV “BENEFITS” subparagraph F. 89 ACTIVE HEALTH CARE • The company will offer continuation of the plans in effect under the prior collective bargaining agreement from February 5, 2012 through December 31, 2012. • Effective 1/1/2013, the plan year will change to start on January 1 and end on December 31. • Effective July 1, 2009, spouses of employees that are employed at another company that provides a health care program for their employees, and said employer pays at least 50% of the cost, will not be allowed to be a dependent under the Health Care Plan unless they have elected health care through their employer. • Flexible Spending Account Subject to regulations and Plan rules, the Company will make available to employees a Flexible Spending Account (“FSA”) for eligible medical expenses. • Effective with the plan year beginning 7/1/2009, the Company will offer a three-tiered prescription drug program with co-pays as outlined in the Medical Benefit Summary. • Health Reimbursement Account (HRA) balances will not increase under the new medical plans that become effective on 7/1/2009. As noted previously, the HRA for the period between ratification and 6/30/2009 will be 50% of the twelve-month amount established under the prior contract. Participants, including retirees, may spend down their balances until 12/31/2012 on eligible expenses. Other Provisions • Long Term Disability For those active employees with less than 16 years of Seniority as of June 30, 2009 who are considered “actively at work” (for example, not on Leave of Absence or Disability) on July 1, 2009, the Company will provide Long Term Disability Insurance at 50% of the employee’s annual rate of pay as of January 1 of each year. The same benefit will be provided to all new hires and those returning to active duty with less than 16 years of Seniority as of June 30, 2009 after July 1, 2009. • Transition and Bridge Survivor Benefits/Additional Death Benefit o For employees not subject to the pension freeze, the benefit will be a $10,000 lump sum payment subject to the provisions listed on the Group Benefit Schedule on page 92 and in the Summary Plan Document. For employees subject to the freeze, no new entrants will be accepted into the Transition and Bridge Benefits/Additional Death Benefits after June 30, 2009. 90 • Triumph Aerostructures – Vought Aircraft Division, a Triumph Group Company, will not change the base life insurance and AD&D which is as follows: o Active- $50,000 (Note: Employee must be considered “actively at work” (for example, not on Leave of Absence or in Disability) as of July 1, 2009 to be eligible. Those active employees who return to active duty will receive the increase upon return to active duty. o Optional Employee Life Insurance: Effective July 1, 2012, the company will make available under the terms of a group insurance plan covering bargaining unit employees, optional life insurance that may be purchased by the employee in increments of 1 to 8 times the employee’s annual base pay in effect on January 1 of each year subject to the provisions of the insurer’s group plan. Note: Evidence of Insurability may be required under the group plan. 91 $50,000 Life Ins. $50,000 Surviving spouse was At least 48 but <60 years of age on date of employee’s death Not eligible to receive Mother’s Insurance Benefits under Federal Social Security Act Not eligible for payment of a benefit under any Triumph retirement plan other than a single lump sum death benefit $10,000 lump sum payment provided: Survivor Income Benefit (Only for Employees with 16+ Years of Seniority) Weeks 1 – 13 $375/week Weeks 14 – 26 $350/week Weeks 27 – 52 $300/week No benefit after 52 weeks but will remain on active health care for additional 12 months provided employee properly pays weekly premiums. After this additional 12month period, health care coverage will cease & employee will be eligible for COBRA benefits Weekly S & A Benefit 92 NOTE: Retirees covered by Medicare will be reimbursed $5 per month paid quarterly toward the cost of Medicare Part B. This Schedule is for information ONLY and does not supersede any provisions contained in any Master Contract for benefits. Benefits are payable for claims arising on and after effective date of 9/27/98. RETIREE MEDICAL: For employees, and their spouse, with seniority 10/2/89: Under age 65 - Same medical plan as active employees. (See Article XV) Age 65 & over - Medicare Supplement, same prescription plan as active employees in PPO medical plan. For employees hired after 10/2/89: No retiree medical coverage. Accidental Death & Dismemberment FOR EMPLOYEES ONLY GROUP BENEFIT SCHEDULE Refer to attached schedules Medical & Dental Plans FOR EMPLOYEES AND DEPENDENTS Medical Benefits Summary For Bargaining Unit Employees Effective January 1, 2013 Plan Year begins January 1 – December 31 Medical PPO 80/20 Network Non-Network BENEFIT PLAN YEAR DEDUCTIBLE Individual Family HSA $400 $1,200 $800 $2,000 Not applicable 20% After 50% after Co-Insurance Deductible deductible BENEFIT PLAN YEAR OUT-OF-POCKET MAXIMUM (Includes Benefit Plan Year Deductible and Coinsurance) Individual $3,000 $6,000 Family $6,000 $12,000 Medical HD HSA 80/20 Network Non-Network *All services subject to deductible $1,250* $2,500* $2,500* $5,000* $500 individual / $1000 family 20% After 50% After Deductible Deductible $5,000 $10,000 $10,000 $20,000 SERVICES PCP Office Visits $20 Co-Pay; Does Not Apply to Deductible 50% after deductible 20% after deductible 50% after deductible Specialist Office Visits $40 Co-Pay; Does Not Apply to Deductible 50% after deductible 20% after deductible 50% after deductible Wellness Physicals and Tests Covered 100%; Does Not Apply to Deductible 50% after deductible Covered 100%; Does Not Apply to Deductible 50% after deductible Eye Exam Covered 100%; Does Not Apply to Deductible Not covered Covered 100%; Does Not Apply to Deductible Not covered $250 per person Not covered $250 per person Not covered Covered 100%; Does Not Apply to Deductible Not covered Covered 100%; Does Not Apply to Deductible Not covered Vision Hardware Allowance Hearing Exam 93 Medical PPO 80/20 Medical HD HSA 80/20 Network Non-Network Network Non-Network Emergency Room $50 copay; 20% After Deductible Same as preferred; after deductible 20% after deductible 50% after deductible Non-Emergency care in an Emergency Room Not covered Not covered Not covered Not covered Hospital - Inpatient 20% After Deductible 50% after deductible 20% after deductible 50% after deductible Ambulance 20% After Deductible 50% after deductible 20% after deductible 50% after deductible Lab and X-rays 20% After Deductible 50% after deductible 20% After Deductible 50% After Deductible Same as Inpatient Hospital services; after deductible $20 copay; Does Not Apply to Deductible Same as Inpatient Hospital services; after deductible $20 copay; Does Not Apply to Deductible Same as Inpatient Hospital services; after deductible 20% After Deductible 50% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Same as Inpatient Hospital services; after deductible 20% After Deductible 50% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Convalesant Facility *60-day maximum per condition 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Home Health Care 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Private Duty Nursing Monthly max benefit: $1,000 per person 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Hospice Care 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Mental Health Inpatient Mental Health Outpatient Substance Abuse Inpatient Substance Abuse Outpatient 94 Medical PPO 80/20 Medical HD HSA 80/20 Network Non-Network Network Non-Network $20 Copay after deductible 50% After Deductible 20% After Deductible 50% After Deductible Allergy Serum 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Durable Medical Equipment & Supplies 20% After Deductible 50% After Deductible 20% After Deductible 50% After Deductible Chiropractic Care $1,000 max per year Retail Pharmacy Benefits (up to 30 days) Generic - $7 copay Brand Formulary- $35 copay Brand Non-Formulary- $70 copay Mail Pharmacy Benefits (31 to 90 days) Generic - $14 copay Brand Formulary- $70 copay Brand Ø-Formulary - $140 copay Premiums Effective 1/1/13 Premiums Effective 1/1/15 Single $20 Family $45 Single $25 Family $50 **Generic - 25% ($10 max) ** Brand Formulary - 35% ($20 min/$50 max) **Brand Non-Formulary- 50% ($60 min/$100 max) **Generic - 25% ($25 max) **Brand Formulary - 35% ($50 min/$125 max) **Brand Ø-Formulary- 50% ($150 min/$250 max) Single $12 Family $33 Single $12 Family $33 ** The employee must first meet the plan deductible, including full costs of retail and mail order prescription drugs, prior to prescription drug co-pay maximums being applied. 95 Dental Benefits Summary For Bargaining Unit Employees Effective January 1, 2013 Plan Year begins January 1 – December 31 Delta Dental Type of Service Deductibles Benefit Max Preventative - Oral exams, routine cleanings, x-rays, fluoride treatments DPO without Orthodontics No Deductible $2000 per person per plan year DPO with Orthodontics $50 per person, $100 per family, per plan year $2000 per person per plan year 100% (x-rays at 75%*) 100% Basic Benefits - Fillings, Sealants, Denture Repairs Crowns & Cast Restorations 75%* 50%* Endodontics (Root Canals) Periodontics (Gum Treatment) Oral Surgery - Incisions, Excisions, Surgical Removal of Tooth Prosthodontic - Bridges, Full & Partial Dentures Orthondontic - Adults and Dep Children Premiums Effective 1/1/13 Premiums Effective 1/1/15 50%* 50%* 50%* 50%* Not Covered Single $0 Family $0 Single $2 Family $5 *Coverage paid up to benefit maximum 96 80%* After Deductible 80%* After Deductible 80%* After Deductible 80%* After Deductible 80%* After Deductible 50%* After Deductible 50%* After Deductible; $2000 lifetime max per person Single $3 Family $6 Single $5 Family $8 SAFETY HABIT INITIATIVE 1-1-96 $1,000 Separate medical plan deductible per incident on charges arising from accidents occurring: - While driving under the influence of illegal drugs or alcohol - While riding on or operating a motorcycle, ATV, etc., without proper head gear - While driving or riding without wearing a seat belt The $1,000 separate deductible will not apply to the plan’s out-of-pocket maximum. 97 SUPPLEMENTAL AGREEMENT COVERING NEW TECHNOLOGY This Supplemental Agreement Covering New Technology, made and entered into this February 5, 2012, by and between TRIUMPH AEROSTRUCTURES – VOUGHT AIRCRAFT DIVISION, A TRIUMPH GROUP COMPANY, NASHVILLE, TENNESSEE, (hereinafter called the “Company”), and AERO LODGE NO. 735 of the INTERNATIONAL ASSOCIATION OF MACHINISTS and AEROSPACE WORKERS, affiliated with the AFL-CIO, (hereinafter called the “Union”). A. The company shall retain the right to make any changes in the manufacturing operation that it deems necessary in order to adopt the most efficient system to increase production, reduce costs and improve the company’s competitive position in the industry. B. Technological change shall be defined as change resulting from improvements in technical processes that increase productivity and makes manual operations or operations done by older machines obsolete. C. The company will advise the union of any proposed technological change which will result in the displacement of or reduction of the bargaining unit work force sixty (60) days prior to the time of the final decision for implementation of such change. The company will notify the local union president of such change and meet with the union to discuss the effects of the impact of such technological change upon the bargaining unit and the employees within the affected occupations. D. When, as a result of technological change, new and/or revised job occupations are introduced into the bargaining unit, the company shall insure that qualified employees will be given the opportunity to acquire the knowledge and skills necessary to qualify for these new and/or revised job occupations. Such employee shall be compensated in accordance with the appropriate provision of the collective bargaining agreement. E. If the job of any regular full-time employee with one or more years service is eliminated because of technological change and retraining for the new or revised job is not feasible, and such employee cannot be placed under other provisions of the collective bargaining agreement, the company will, where there are job openings available or anticipated in the near future, endeavor to train any such employee in the knowledge and skill required to perform an equal or lower rated job than the employee’s original job. F. Any employee participating in training under the provisions of paragraph “D” above, shall be compensated at the rate of pay he was receiving at the time of displacement from the active payroll due to the technological change. 98 2012 January Su 1 8 15 22 29 Mo 2 9 16 23 30 Tu 3 10 17 24 31 We 4 11 18 25 Th 5 12 19 26 February Fr 6 13 20 27 Sa 7 14 21 28 April Su 1 8 15 22 29 Mo 2 9 16 23 30 Tu 3 10 17 24 We 4 11 18 25 Th 5 12 19 26 Mo 2 9 16 23 30 Tu 3 10 17 24 31 We 4 11 18 25 Fr 6 13 20 27 Sa 7 14 21 28 Tu 2 9 16 23 30 We 3 10 17 24 31 Fr 3 10 17 24 Sa 4 11 18 25 Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 We 2 9 16 23 30 Th 5 12 19 26 Fr 6 13 20 27 Sa 7 14 21 28 Th 4 11 18 25 Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Th 3 10 17 24 31 Fr 4 11 18 25 Sa 5 12 19 26 Sa 6 13 20 27 Th 2 9 16 23 30 Su Mo Tu We Th 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 2013 99 Fr 2 9 16 23 30 Sa 3 10 17 24 31 Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 Sa 2 9 16 23 30 September Fr 3 10 17 24 31 Sa 4 11 18 25 November Fr 5 12 19 26 Su Mo Tu We Th 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 June August October Su Mo 1 7 8 14 15 21 22 28 29 Th 2 9 16 23 May July Su 1 8 15 22 29 Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 March Fr 2 9 16 23 30 Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 December Sa 3 10 17 24 Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 January Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 We 2 9 16 23 30 Th 3 10 17 24 31 February Fr 4 11 18 25 Sa 5 12 19 26 April Su Mo 1 7 8 14 15 21 22 28 29 Tu 2 9 16 23 30 Su Mo 1 7 8 14 15 21 22 28 29 Tu 2 9 16 23 30 We 3 10 17 24 We 2 9 16 23 30 Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 31 Fr 5 12 19 26 Sa 6 13 20 27 Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Th 4 11 18 25 Fr 5 12 19 26 Sa 6 13 20 27 Su Mo Tu We Th 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 Th 2 9 16 23 30 Fr 3 10 17 24 31 Sa 4 11 18 25 Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Fr 2 9 16 23 30 Sa 3 10 17 24 31 Su 1 8 15 22 29 August Th 3 10 17 24 31 September November Fr 4 11 18 25 Sa 5 12 19 26 Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 Mo 2 9 16 23 30 Tu 3 10 17 24 We 4 11 18 25 Th 5 12 19 26 February 100 Fr 6 13 20 27 Sa 7 14 21 28 December Sa 2 9 16 23 30 Su 1 8 15 22 29 Mo 2 9 16 23 30 Tu 3 10 17 24 31 We 4 11 18 25 Th 5 12 19 26 2014 January Sa 2 9 16 23 30 June Th 4 11 18 25 October Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 Sa 2 9 16 23 May July We 3 10 17 24 31 March Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 March Fr 6 13 20 27 Sa 7 14 21 28 Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Th 2 9 16 23 30 Fr 3 10 17 24 31 April Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 We 2 9 16 23 30 Th 3 10 17 24 We 2 9 16 23 30 Fr 4 11 18 25 Sa Su Mo Tu We 5 12 4 5 6 7 19 11 12 13 14 26 18 19 20 21 25 26 27 28 Th 3 10 17 24 31 Fr 4 11 18 25 Th 2 9 16 23 30 Sa Su Mo Tu We 5 12 3 4 5 6 19 10 11 12 13 26 17 18 19 20 24 25 26 27 31 Th 1 8 15 22 29 Fr 2 9 16 23 30 Th Fr 1 7 8 14 15 21 22 28 29 November Fr 3 10 17 24 31 Sa Su Mo Tu We 4 11 2 3 4 5 18 9 10 11 12 25 16 17 18 19 23 24 25 26 30 Sa Su Mo Tu We Th 3 1 2 3 4 5 10 8 9 10 11 12 17 15 16 17 18 19 24 22 23 24 25 26 31 29 30 Sa Su Mo Tu We 2 1 2 3 9 7 8 9 10 16 14 15 16 17 23 21 22 23 24 30 28 29 30 101 Sa 7 14 21 28 Th 4 11 18 25 Fr 5 12 19 26 Sa 6 13 20 27 December Th Fr Sa Su Mo Tu We 1 1 2 3 6 7 8 7 8 9 10 13 14 15 14 15 16 17 20 21 22 21 22 23 24 27 28 29 28 29 30 31 February Fr 6 13 20 27 September Th 4 11 18 25 2015 January Fr Sa 1 7 8 14 15 21 22 28 29 June August October Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Th Fr Sa Su Mo Tu We Th 1 6 7 8 2 3 4 5 6 13 14 15 9 10 11 12 13 20 21 22 16 17 18 19 20 27 28 23 24 25 26 27 30 31 May July Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 Sa Su Mo Tu We 4 11 2 3 4 5 18 9 10 11 12 25 16 17 18 19 23 24 25 26 March Fr 5 12 19 26 Sa 6 13 20 27 Su Mo Tu We Th 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 Fr 2 9 16 23 30 Sa 3 10 17 24 31 Su 1 8 15 22 Mo 2 9 16 23 April Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Th 2 9 16 23 30 We 4 11 18 25 Th 5 12 19 26 Fr 6 13 20 27 Sa 7 14 21 28 Fr 3 10 17 24 Sa 4 11 18 25 Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 31 Fr 3 10 17 24 31 Sa 4 11 18 25 Sa 2 9 16 23 30 November Fr 2 9 16 23 30 Sa 3 10 17 24 31 Su 1 8 15 22 29 Mo 2 9 16 23 30 Tu 3 10 17 24 We 4 11 18 25 102 Tu 3 10 17 24 31 We 4 11 18 25 Th 5 12 19 26 Fr 6 13 20 27 Sa 7 14 21 28 Th 5 12 19 26 Su Mo 1 7 8 14 15 21 22 28 29 Tu 2 9 16 23 30 We 3 10 17 24 Th 4 11 18 25 Fr 5 12 19 26 Sa 6 13 20 27 September Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 October Su Mo Tu We Th 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 Mo 2 9 16 23 30 June August Th 2 9 16 23 30 Su 1 8 15 22 29 May July Su Mo Tu We 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29 Tu 3 10 17 24 Fr 6 13 20 27 Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 We 2 9 16 23 30 Th 3 10 17 24 Fr 4 11 18 25 Sa 5 12 19 26 December Sa 7 14 21 28 Su Mo Tu 1 6 7 8 13 14 15 20 21 22 27 28 29 We 2 9 16 23 30 Th 3 10 17 24 31 Fr 4 11 18 25 Sa 5 12 19 26 2016 January Su Mo Tu We Th Fr 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 31 February Sa 2 9 16 23 30 Su Mo 1 7 8 14 15 21 22 28 29 103 Tu 2 9 16 23 We 3 10 17 24 Th 4 11 18 25 Fr 5 12 19 26 Sa 6 13 20 27