Exhibit 10.28
COLLECTIVE BARGAINING AGREEMENT
Between
UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
and
UNITED STEELWORKERS OF AMERICA
ON BEHALF OF LOCAL UNION 3403-43
INDEX FOR
COLLECTIVE BARGAINING AGREEMENT
Between
UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
and
UNITED STEELWORKERS OF AMERICA
Page
--------
ARTICLE 1 PURPOSE AND INTENT OF THE PARTIES 2
ARTICLE 2 RECOGNITION 4
ARTICLE 3 UNION SECURITY AND CHECKOFF 4
A. Union Membership 4
B. Checkoff 5
C. USWA/PAC Contribution Checkoff 6
D. Indemnity Clause 6
ARTICLE 4 MANAGEMENT RIGHTS 7
ARTICLE 5 NO STRIKE/NO LOCKOUT 8
A. No Strike 8
B. No Lockout 8
ARTICLE 6 GRIEVANCE AND ARBITRATION 9
A. Purpose/Procedure 9
B. Definition of Grievance 9
C. Discussion of Request or Complaint 9
D. Grievance Procedure 9
E. Arbitration Procedure 10
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Page
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F. Suspension of Grievance Procedure 11
G. Union Grievance Committee 11
I. Access to Plant 12
ARTICLE 7 RATES OF PAY 12
A. STANDARD HOURLY WAGE RATES 12
B. INCENTIVES AND STANDARDS 12
ARTICLE 8 HOURS OF WORK 12
A. STRAIGHT TIME AND OVERTIME 12
B. BASIS OF PREMIUM PAY CALCULATION 13
C. OVERTIME DISTRIBUTION 13
D. SHIFT DIFFERENTIAL 13
E. REPORTING ALLOWANCE 14
F. ALLOWANCE FOR JURY DUTY 15
G. ALLOWANCE FOR FUNERAL LEAVE 15
ARTICLE 9 HOLIDAYS 16
ARTICLE 10 VACATIONS 17
A. ELIGIBILITY 17
B. LENGTH OF VACATION 18
C. VACATION PAY 19
ARTICLE 11 SENIORITY 19
ARTICLE 12 PROBATIONARY EMPLOYEES 26
ARTICLE 13 CONTRACTING OUT 27
ARTICLE 14 LEAVE OF ABSENCE 28
ARTICLE 15 SAFETY AND HEALTH 29
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Page
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A. OBJECTIVE AND OBLIGATIONS 29
B. SAFETY APPAREL AND EQUIPMENT 29
C. DRUG AND ALCOHOL 30
ARTICLE 16 HEALTH BENEFITS 30
ARTICLE 17 RETIREMENT PLAN 30
ARTICLE 18 PROFIT SHARING 31
ARTICLE 19 NON-DISCRIMINATION/EQUAL EMPLOYMENT OPPORTUNITY 31
ARTICLE 20 BULLETIN BOARD 32
ARTICLE 21 AGREEMENT COMPLETE 32
ARTICLE 22 EFFECT OF LAW 33
ARTICLE 23 TERMINATION 33
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APPENDICES
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Page
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APPENDIX A WAGE RATE ▇▇
▇▇▇▇▇▇▇▇ ▇ BENEFITS 38
APPENDIX C FORMER ARMCO EMPLOYEES 39
APPENDIX D PROFIT SHARING ▇▇
▇▇▇▇▇▇▇▇ ▇ PROFIT SHARING AUDIT PROCEDURES 42
APPENDIX F DRUG AND ALCOHOL TESTING POLICY 43
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COLLECTIVE BARGAINING AGREEMENT
-------------------------------
This Agreement dated as of the 1st day of September, 1997, is between
Universal Stainless & Alloy Products, Inc. (hereinafter referred to as the
"Company") and United Steelworkers of America (hereinafter referred to as the
"Union"). Except as otherwise expressly provided herein, the provisions of this
Agreement shall be effective until August 31, 2002.
The Union is hereby designated the exclusive collective bargaining
representative of the employees of the Company as defined in Article 2, and the
Company recognizes the Union as such exclusive representative. Accordingly, the
Union makes this Agreement in its capacity as the exclusive collective
bargaining representative of such employees. As the representative of the
employees, the Union may process grievances through the grievance procedure,
including arbitration, in accordance with this Agreement or adjust or settle the
same.
The Company retains the exclusive right to direct, manage and control the
business and the work forces, except to the extent this Agreement specifically
provides to the contrary.
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ARTICLE 1
---------
PURPOSE AND INTENT OF THE PARTIES
---------------------------------
1. The purpose of the Company and the Union in entering into this labor
Agreement is to set forth their agreement on rates of pay, hours of work,
and other conditions of employment so as to promote orderly and peaceful
relations with the employees, to achieve uninterrupted operations in the
plants, and to achieve the highest level of employee performance consistent
with safety, good health, and sustained effort.
2. The Company and the Union encourage the highest possible degree of friendly,
cooperative relationships between their respective representatives at all
levels and with and between all employees. The officers of the Company and
the Union realize that this goal depends on more than words in a labor
agreement, that it depends primarily on attitudes between people in their
respective organizations and at all levels of responsibility. They believe
that proper attitudes must be based on full understanding of and regard for
the respective rights and responsibilities of both the Company and the
Union. They believe also that proper attitudes are of major importance in
the plants where day-to-day operations and administration of this Agreement
demand fairness and understanding. They believe that these attitudes can be
encouraged best when it is made clear that Company and Union officials,
whose duties involve negotiation of this Agreement, are not anti-Union or
anti-Company but are sincerely concerned with the best interests and well-
being of the business and all employees.
3. The parties are concerned that the future of the industry in terms of
employment security and return on substantial capital expenditures will rest
heavily upon the ability of the parties to work cooperatively to achieve
significantly higher productivity trends. The parties are acutely aware of
the impact upon the industry and its employees of the sizable penetration of
the domestic steel market by foreign producers. The parties have joined
their efforts in seeking relief from the problem of massive importation of
foreign steel manufactured in low-wage countries. Thus, it is incumbent upon
the parties to work
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cooperatively to meet the challenge posed by principal foreign competitors.
It is also important that the parties cooperate in promoting the use of
American-made steel.
4. The representatives of the Company and the Union shall continue to provide
each other with such advance notice as is reasonable under the circumstances
on all matters of importance in the administration of the terms of the labor
agreement, including changes or innovations affecting the relations between
the parties.
5. To help in developing and maintaining a good relationship between the
parties, an Activities Committee (Committee) will be formed to plan and
organize activities, events or other common interest programs for all the
employees of the Universal Stainless & Alloy Products, Inc. Specialty Steel
Division, Bridgeville, PA.
The Committee will be comprised of three Union designated employees and two
salary designated employees. The funding of the activities, events, programs
or other items will be derived mainly from the commissions received from the
vending machine usage at the facility.
The Committee must act in a manner as to benefit or give an opportunity to
benefit the entire group of employees.
The Committee must maintain records of all activities, programs, etc. and an
accounting of all funds received and dispensed.
The Company will maintain the funds and administer such funds at the
discretion of the Committee.
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ARTICLE 2
---------
RECOGNITION
-----------
The Company recognizes the Union as the exclusive representative for purposes of
collective bargaining with respect to wages, hours of work, and all other terms
and conditions of employment for all employees as defined herein. The term
"employee" as used in this Agreement shall include all regular hourly rated
production and maintenance employees employed by the Company in its plants, but
excluding salaried employees, office clerical, confidential, professional
employee, guards and supervisors as defined by the National Labor Relations Act,
as amended.
ARTICLE 3
---------
UNION SECURITY AND CHECKOFF
---------------------------
A. UNION MEMBERSHIP
----------------
1. Any employee who is a member of the Union in good standing on the
effective date of this Agreement shall, as a condition of employment,
maintain membership in the Union to the extent of paying the periodic
membership dues uniformly required of all Union members.
2. Any employee who on the effective date of this Agreement is not a
member of the Union and any employee thereafter hired shall, as a
condition of employment, starting thirty (30) days after the effective
date of this Agreement or thirty days after hire date, whichever is
earlier, acquire and maintain membership in the Union to the extent of
paying or tendering the initiation fee and the periodic membership dues
uniformly required of all Union members.
3. The foregoing provisions shall be effective in accordance and
consistent with applicable provisions of federal and state law.
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B. CHECKOFF
--------
1. During the life of this Agreement, the Company will check off monthly
dues, assessments and initiation fees each as designated by the
International Treasurer of the Union, as membership dues in the Union
on the basis of individually signed voluntary checkoff authorization
cards in forms agreed to by the Company and the Union.
2. The following general conditions will be applicable:
a. New checkoff authorization cards will be submitted to the Company
through the Financial Secretary of the Local Union. Immediately
after the end of each month the Union shall submit to the Company a
summary list of cards submitted in each month.
b. Deductions on the basis of authorization cards submitted to the
Company shall commence with respect to dues for the month in which
the Company receives such authorization card or in which such card
becomes effective, whichever is later. Dues for a given pay period
shall be deducted from each pay.
c. The Union will be notified of the reason for non-transmission of
dues in case of layoff, discharge, resignation, leave of absence,
sick leave, retirement, death or insufficient earnings.
d. Unless the Company is otherwise notified, the only Union membership
dues to be deducted for payment to the Union from the pay of the
employee who has furnished an authorization shall be the monthly or
other periodic Union dues. The Company will deduct initiation fees
when notified by notation on the list referred to in (a) above, and
assessments as designated by the International Treasurer.
e. The provisions of this Subsection B shall be effective in
accordance and consistent with applicable provisions of state and
federal law.
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C. USWA/PAC CONTRIBUTION CHECKOFF
------------------------------
The Company agrees that it will checkoff and transmit to the Treasurer
of the United Steelworkers of America Political Action Committee (USWA/PAC),
voluntary contributions to the USWA Political Action Fund from the earnings of
those employees who voluntarily authorize such contributions on forms provided
for that purpose by the USWA/PAC.
It is understood that the parties acknowledged that the costs of
implementing and administering the USWA/PAC checkoff program would be an
obligation of the Union and that the estimated costs of such implementation and
administration of the program were incorporated by the Company in its valuation
of the September 1, 1997, collective bargaining negotiations settlement. The
Union, however, will be responsible for the cost of printing and distributing
voluntary USWA/PAC wage deduction authorization forms. It is specifically
agreed that the USWA/PAC checkoff plan will be implemented as follows:
The Company shall deduct from wages payable during each payroll period
in each month voluntary contributions to the USWA/PAC by those employees
represented by the United Steelworkers of America who voluntarily authorize such
deductions and contributions on forms provided for that purpose by the USWA/PAC.
The amount and timing of such USWA/PAC wage deductions and the transmittal of
such voluntary contributions to the USWA/PAC may be as specified in such forms
and in conformance with any applicable state or federal statute; provided
however, that if an employee revokes a deduction authorization, the employee
shall not be eligible for payroll deduction of USWA/PAC contributions for a
period of one year for the date of revocation.
D. INDEMNITY CLAUSE
----------------
The Union shall indemnify and save the Company harmless against any
and all claims, demands, suits or other forms of liability that shall arise out
of or by reason of action taken or not taken by the Company for the purpose of
complying with any of the provisions of this Section, or in reliance on any
list, notice, or assignment furnished under any of such provisions.
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ARTICLE 4
---------
MANAGEMENT RIGHTS
-----------------
A. The Company reserves and retains the right to direct, manage and control
the business and the work force, except to the extent that this Agreement
specifically provides to the contrary.
B. The rights reserved and retained by the Company include, but are not
limited to, the right to plan, direct and control operations; to determine
when work is to be performed; to determine, alter, revise, change or
eliminate any or all means, methods, processes, materials and schedules of
production; to determine the existence, number, composition and size of
crews; to determine or change the duties of jobs; to determine the location
or relocation of the plant, departments or operations; to establish
production and work standards; to transfer and assign orders for production
to determine whether and to what extent the work required in its business
shall be performed by employees covered by this Agreement; to transfer
employees between jobs, shifts and departments in order to maintain
efficient and/or economic operations; to hire; to discipline, suspend or
discharge for cause; to layoff, transfer, promote or demote; to make and
enforce reasonable rules (including rules relating to substance abuse and
requiring employees to submit to blood, urine, or other appropriate medical
testing on the basis of probable cause or routine screening at or prior to
initial employment or upon a return to work after an absence of thirty (30)
calendar days or longer, except to the extent that this Agreement
specifically provides to the contrary.
C. Should the Company fail to exercise any of its rights, or to exercise them
in a particular way, it shall not be deemed to have waived such rights or
to be precluded from exercising them in some way.
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ARTICLE 5
---------
NO STRIKE/NO LOCKOUT
--------------------
A. NO STRIKE
---------
1. There will be no strikes of any kind, including sympathetic strikes and
unfair labor practice strikes, during this Agreement. "Strikes" include
any work stoppage, slowdown, picketing, or any other concerted
activity, or attempt at concerted activity, which would interrupt or
limit the performance of services. Neither the Union or any employee
will encourage, authorize, participate in or condone any strike.
2. The Union will use its best efforts to prevent any violation of this
Article and to terminate any violation should one occur. If a violation
of this Article occurs, the Union will publicly denounce the strike,
and will provide the Company with written notice that the strike is not
authorized, is in violation of this Agreement, and is not to be
honored. If the Union carries out its obligations under this Article,
it shall have no financial liability for any such violation.
3. The Company shall have the right to discharge or suspend employees for
violation of this Article.
Employees so disciplined shall have recourse to the grievance and
arbitration procedure, but the discipline imposed shall not be
overturned unless the employee is found innocent of any violation, and
the arbitrator shall have no authority or jurisdiction to reduce or
modify discipline, except upon such a finding of innocence.
B. NO LOCKOUT
----------
1. The Company shall engage in no lockout during the term of this
Agreement.
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ARTICLE 6
---------
GRIEVANCE AND ARBITRATION
-------------------------
A. Purpose/Procedure
The purpose of this Section is to provide an orderly procedure for the
discussion of any request or complaint and to establish procedures for the
processing and settlement of grievances as hereinafter defined. The action
of the Company giving rise to any alleged grievances shall remain in effect
until the grievance is finally resolved.
B. Definition of Grievance
"Grievance" as used in this Agreement is limited to a complaint which has
not been settled as a result of the discussions required by Subsection C
and which involves the interpretation or application of, or compliance
with, the provisions of this Agreement, and such settlements shall not add
to, detract from, or alter in any way the provisions of this Agreement.
C. Discussion of Request or Complaint
Any employee who believes that he has a justifiable request or complaint
shall discuss the request or complaint with his ▇▇▇▇▇▇▇, with or without
the Grievance Committeeman being present, as he may elect, in an attempt to
settle the request or complaint.
D. Grievance Procedure
The Grievance procedure shall be as follows:
1. Step I - Within seven (7) working days upon the occurrence of the
incident, the employee or Union representative shall make a written
complaint to the appropriate supervisor. The supervisor shall answer
in writing within five (5) working days.
2. Step II - Within five (5) working days after receipt of the
supervisor's Step I response, the Union Chairperson, Vice President or
Committeeman shall submit a written grievance to the Department Manager
or Plant Manager. The Department Manager or Plant Manager shall answer
the grievance in writing within seven (7) working days.
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3. Step III - Within fifteen (15) days after receipt of the Company's
answer, the Union President or Vice President, the Union International
Representative and the Company Director of Employee Relations or Plant
Manager shall meet to discuss the grievance. The Company shall mail its
answer to the Union within fifteen (15) days after the Step III
meeting. With respect to time limits, Saturdays, Sundays and Holidays
are excluded for both the Company and the Union. The aforementioned
time limits also apply to Step IV - Arbitration.
4. Step IV - Arbitration
E. Arbitration Procedure
1. In the event the dispute shall not have been satisfactorily settled in
Step III, the grievance may be referred to an impartial arbitrator to
be mutually agreed upon by the parties hereto, such appeal to be taken
within fifteen (15) days after receipt by the Union of the Company's
answer in Step III. If, after fifteen (15) days following appeal, the
parties fail to agree upon an arbitrator the selection shall be made
from panels recommended by the F.M.C.S. Failing mutual agreement on an
arbitrator from such panels the F.M.C.S. shall appoint the impartial
arbitrator to serve in the dispute.
2. The conduct hearings and other procedures having to do with arbitration
of the dispute shall follow the procedures then in effect under the
voluntary labor arbitration rules of the F.M.C.S.
3. The arbitrator shall have jurisdiction and authority to interpret,
apply, or determine compliance with the provisions of this Agreement
relating to the wages, hours of work, and other conditions of
employment set forth in this Agreement, together with those agreements
which are, or may hereafter be, in effect in the plant insofar as shall
be necessary to the determination of such grievances arising hereunder;
but the arbitrator shall not have jurisdiction or authority to add to,
detract from, or alter in any way the provisions of this Agreement or
supplements thereunder.
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4. The arbitrator shall render a decision within thirty (30) working days
of the last hearing day unless otherwise extended by mutual agreement
of the parties. The decision of the arbitrator shall be final and
binding upon the Company, the Union, and the employees. All expenses
incurred as a result of the arbitration shall be borne equally by the
Company and the Union.
F. Suspension of Grievance Procedure
If this Agreement is violated by the occurrence of a strike, slowdown, work
stoppage, or interruption or impeding of work in any department or sub-
division, no grievance shall be discussed or processed for the employees
directly involved in the violation while such violation continues. The
Union will proceed immediately to get the concerned employees in compliance
with this Agreement.
G. Union Grievance Committee
1. General Grievance Committee
A General Grievance Committee shall be established not to exceed three
employees. The General Grievance Committee, as such is designated to
the Company, shall attend meetings to discuss grievances heard in the
Second Step of the grievance procedure and other appropriate labor-
management meetings called by the parties.
2. Grievancemen
Grievancemen may be designated to the Company to represent employees,
serving as the Union representative for any grievance. The Union shall
notify the Company of its designee to serve as Chairman of the
grievance committee to represent employees in the Second Step of the
grievance procedure. Grievancemen shall serve as the exclusive Union
representative for the processing of any grievance under their
jurisdiction in Step I of the grievance procedure. In addition, the
grievancemen may participate in other appropriate labor-management
meetings called by the parties.
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3. Grievance Activities
Grievance Committeemen will be afforded time off without pay as may be
required to transact the necessary and proper business of the Grievance
Committee, including the settlement of grievances, upon notice to and
with the permission of their supervisor.
H. Access to Plant
The representatives of the Union who customarily handle grievances in Step
II of the grievance procedure shall have access to the plant, subject to
the established rules of the plant, at reasonable times to investigate
grievances with which they are concerned.
ARTICLE 7
---------
RATES OF PAY
------------
A. STANDARD HOURLY WAGE RATES
--------------------------
The standard hourly wage rates and bonuses for the respective job
classifications shall be those set forth in Appendix A of this Agreement.
B. INCENTIVES AND STANDARDS
------------------------
The Company has the right solely at its discretion to establish reasonable
incentive standards on any or all of its operations or jobs. Prior to the
establishing of any such standards the Company and Union will meet and
attempt to agree on such standards. Upon agreement or failing to agree
with a thirty (30) day period, the Company will establish the standard.
The Union may grieve whether such standards are equitable.
ARTICLE 8
---------
HOURS OF WORK
-------------
A. STRAIGHT TIME AND OVERTIME
--------------------------
This Agreement does not constitute a guarantee of any number of hours per
day or days or hours per week. For the employees' advance notice, work
schedules shall be posted or otherwise made known to employees. Postings
will be made not later than Thursday at 2:00 p.m. of the week preceding the
calendar within which the schedule
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becomes effective. The local union representative will be notified if major
changes are made after posting. All work performed in excess of forty (40)
hours in any one work week or in excess of ten (10) hours in any work day
shall be paid at the rate of one and one-half (1-1/2) times regular rate.
All hours not worked but paid as contractual holidays, funeral leave, jury
pay, reporting pay, or vacation shall be considered as hours worked for the
purpose of computation of overtime; hours paid at overtime rates shall not
be counted further in determining overtime pay liability; overtime shall
not be pyramided for the purpose of computation of overtime pay.
B. BASIS OF PREMIUM PAY CALCULATION
--------------------------------
1. The following shall provide the basis for calculating overtime or
other premium compensation.
a. The payroll week shall start with the first shift nearest Midnight
Sunday and run for seven consecutive days, except as deviations
may be necessary for certain employees or groups of employees.
b. The workday for purposes of this Subsection is the 24-hour period
beginning with the time the employee begins work.
C. OVERTIME DISTRIBUTION
---------------------
Overtime within a work unit will be distributed in order of most senior
qualified employee, the senior qualified employee given a choice to work
the overtime before less senior employees are offered the overtime except
in the case where an employee is on the job, he shall remain on the job if
a continuation of work results in overtime. Least senior qualified
employees must work if more senior employees elect not to work. The
Company will determine the number and qualifications of employees needed to
work overtime.
D. SHIFT DIFFERENTIAL
------------------
In the event any hours in a shift are worked outside the interval from 5:00
a.m. to 6:00 p.m., shall be paid at a shift differential rate of 15 cents
per hour.
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E. REPORTING ALLOWANCE
-------------------
1. An employee who is scheduled or notified to report and who does report
for work shall be provided with and assigned to minimum of four (4)
hours of work on the job for which he was scheduled or notified to
report or, in the event such work is not available, shall be assigned
or reassigned to another job for which he is qualified. In the event,
when he reports for work, no work is available, he shall be released
from duty and credited with a reporting allowance of four (4) times the
standard hourly rate of the job for which he was scheduled or notified
to report. When an employee who starts to work is released from duty
before he works a minimum of four (4) hours, he shall be paid for the
hours worked and credited with a reporting allowance equal to the
standard hourly wage rate of the job for which he was scheduled or
notified to report multiplied by the unutilized portion of the four (4)
hour minimum.
2. The provisions of this Subsection E shall not apply in the event that:
a) Strikes, work stoppages in connection with labor disputes, failure
of utilities or acts of God.
b) An employee is not put to work or is laid off after having been put
to work, either at his own request or due to his own fault; or
c) An employee refuses to accept an assignment or reassignment within
the first four (4) hours as provided in Paragraph A above; or
d) Management gives reasonable advance notice of a change in scheduled
reporting time or that an employee need not report. Reasonable
notice is a minimum of two (2) hours prior to the start of the
scheduled reporting time. Employees shall be responsible for
providing the Company with a current telephone number for
utilization in providing notice not to report; a completed
notification call to such telephone number shall constitute the
equivalent of actual notice to the employee.
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F. ALLOWANCE FOR JURY SERVICE AND WITNESS DUTY
-------------------------------------------
1. An employee who is called for jury service or subpoenaed as a witness
shall be excused from work for the days on which he serves. Service, as
used herein, includes required reporting for jury duty when summoned,
whether or not actually seated as a juror or required to testify as a
witness. Such employee shall receive, for each such day of service on
which he otherwise would have worked, the difference between the
payment he receives for such service and the amount calculated by the
Company in accordance with the following formula. Such pay shall be
based on the number of days such employee would have worked had he not
been performing such service (plus any holiday in such period which he
would not have worked) and the pay for each such day shall be eight (8)
times his average straight-time hourly rate of earnings during the last
payroll period worked prior to such service. The employee will present
proof of service or reporting as a juror and the amount of pay, if any,
received therefor. No employee shall be paid more than forty (40) hours
pay under this provision in any contract year.
G. ALLOWANCE FOR FUNERAL LEAVE
---------------------------
1. When death occurs to an employee's legal spouse, mother, father, son,
daughter, brother or sister, an employee, upon request, will be excused
and paid for up to a maximum of three (3) scheduled shifts (or for such
fewer shifts as the employee may be absent) which fall within a three
(3) consecutive calendar day period; provided, however, that one (1)
such calendar day shall be the day of the funeral and it is established
that the employee attended the funeral. Payment for each day of absence
shall be (8) times the employee's average straight time hourly
earnings; and employee, upon request, will be excused and paid for a
maximum of one (1) scheduled shift during such period for the purpose
of attending the funeral of the employee's grandparents or
grandchildren, mother-in-law or father-in-law.
2. An employee will not receive funeral pay when it duplicates pay
received for time not worked for any other reason.
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ARTICLE 9
---------
HOLIDAYS
--------
A. An eligible employee who does not work on a holiday listed in this Article
shall be paid holiday pay of eight (8) times his average straight-time
hourly rate (excluding shift differential and overtime premiums) during the
payroll period preceding the payroll period in which the holiday occurs;
provided, however, that if an eligible employee who is scheduled to work on
any such holiday fails to report or perform his scheduled or assigned work,
the employee shall become ineligible to pay for the unworked holiday unless
excused for good cause.
B. For all hours worked by an employee on any of the holidays specified below,
hours worked shall be paid at the rate of two times his regular rate of
pay; this rate includes any holiday pay for which the employee would
otherwise be eligible. Hours worked shall count for the purposes of
overtime calculation.
C. The holidays specified are Memorial Day, July 4, Labor Day, Thanksgiving
Day, the day after Thanksgiving Day, the day before Christmas Day,
Christmas Day, and New Year's Day. The holiday shall be the twenty-four
(24) hour period beginning 12:01 a.m. of the holiday. The local Union and
the Company will meet in November of each year to set the date for
observance of holidays which are on a Saturday or Sunday.
D. As used in this Article, an eligible employee is one who:
1. has completed his probationary period;
2. performs work or is on vacation in the payroll period in which the
holiday occurs; or if he is laid off for such payroll period, performs
work or is on vacation in both the payroll period preceding and the
payroll period following the payroll period in which the holiday
occurs; and
3. works as scheduled or assigned both on his last scheduled workday prior
to and on his first scheduled workday following the holiday unless
excused for just cause.
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E. When a holiday occurs during an eligible employee's scheduled vacation,
he shall be paid for the unworked holiday in addition to his vacation pay,
but shall not receive any additional time off due to the occurrence of the
holiday, unless the employee schedules, with permission of his supervisor,
to have the holiday taken at another time. If the holiday pay is granted on
a day that was not previously scheduled, the holiday will not count toward
overtime calculations. Holidays must be taken in the calendar year.
ARTICLE 10
----------
VACATIONS
---------
A. ELIGIBILITY
-----------
To be eligible for a vacation in any calendar year during the term of this
Agreement, the employee must:
1. Work at least one day in the calendar year;
2. Have one (1) year or more of continuous service; and
3. Have performed 1400 hours of actual work during the prior calendar year
or, in the case of an employee in his first year of employment, during
such first year of employment. If this 1400 hour requirement has not
been satisfied, the employee, if otherwise eligible, shall receive a
prorated vacation payment based on the number of hours actually paid
during the applicable 12 calendar month period as a percentage of 2080
hours. Such percentage shall be that employee's prorated pay
entitlement.
4. An employee, even though otherwise eligible, forfeits the right to
receive vacation benefits if he is discharged under the provisions of
the Agreement. Full or prorated vacation benefits under this Article as
computed under Paragraph 3 of Section A shall be paid to an employee's
spouse or estate if the employee dies during the eligibility year.
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B. LENGTH OF VACATION
------------------
1. An eligible employee who has attained the years of continuous service
indicated in the following table in any calendar year during the
continuation of this Agreement shall receive a vacation corresponding
to such years of continuous service:
-----------------------------------------------------------
Years of Service Weeks of Vacation
-----------------------------------------------------------
1 but less than 3 1
-----------------------------------------------------------
3 but less than 7 2
-----------------------------------------------------------
7 or more 3
-----------------------------------------------------------
2. A week of vacation shall consist of seven (7) consecutive days, Sunday
through Saturday.
3. Vacations will, so far as practicable, be granted at times most desired
by employees (longer service employees being given preference as to
choice); but the final right to allot vacation periods and to change
such allotments is exclusively reserved to the Company in order to
insure the orderly operation of the plants.
4. In case Management desires to schedule vacations (two weeks maximum)
for employees eligible therefor during shutdown periods instead of in
accordance with the previously established vacation schedules for that
year, Management shall give affected employees forty-five (45) calendar
days' notice of such intent; in the absence of such notice, an affected
employee shall have the option to take vacation during the shut-down
periods or to be laid off during the shut-downs and to take vacation at
the previously scheduled time.
5. The employees listed on Appendix C will, if otherwise eligible, receive
a total of three (3) weeks vacation starting January 1, 1998. The
employees listed on Appendix C are credited three (3) years of service
in addition to their actual Universal Stainless service, toward
vacation eligibility only.
- 18 -
C. VACATION PAY
------------
1. Each employee granted a vacation under this Article will be paid the
average straight time pay for the prior calendar year.
2. Hours of vacation pay for each vacation week shall be 40 hours per
week.
ARTICLE 11
----------
SENIORITY
---------
A. The parties recognize that promotional opportunity and job security in
event of promotions, decreases of forces, and recalls after layoffs should
increase with increased length of continuous service and according to the
bidding procedure and lines of progression.
B. In recognition, however, of the responsibility of Management for the
efficient operation of the works, it is understood and agreed that in all
cases of:
1. Promotion (except promotions to positions excluded under the
definition of "employees" in Article 2). The following factors as
listed below shall be considered; however, only where factors "a." and
"b." are relatively equal shall length of continuous service be
considered and shall be the determining factor.
It is recognized by both parties to this Agreement that the job-
bidding program is intended to provide opportunity for employees to
bid on any non-line of progression job, regardless of job class, which
an employee may prefer. Subject to eligibility, employees may bid on
these jobs whether the job desired is a higher, equal, or lower paid
classification than the job classification they are currently
occupying.
All bids within a department are considered before any consideration
is given to bids from employees in other departments.
- 19 -
Senior employees possessing the necessary qualifications shall have
the preference in job bidding; however, seniority alone shall not
entitle any bidder to the job. The following factors as listed below
shall be considered; however, only when factors "(a)" and "(b)" below
are relatively equal, shall length of continuous service be the
determining factor:
(a) Ability to perform the work.
(b) Physical fitness.
(c) Continuous service.
When there are any jobs within the bargaining unit, which can be
filled from among the existing employees, the job bidding procedure in
the following subparagraphs shall apply. It is mutually understood;
however, that this bidding procedure shall not preclude the right of
the Company to hire new employees possessing the necessary skills for
jobs which existing employees are incapable of performing.
(a) The job openings shall be posted on all bulletin boards for five
(5) consecutive work days. This five (5) day period includes
Monday through Friday.
(b) No bids shall be accepted after the five (5) day posting period
has ended. Except in the case of an employee who is on vacation or
out sick, in which case those applicable employees will be
permitted up to ten (10) days after the first day of posting to
respond, but no longer than his first day back to work.
(c) Any employee bidding for a job will have the right to withdraw his
bid if it is withdrawn during the posting period. When a job
opening is posted, it will be identified by department.
Withdrawals must be signed by employee and administrator or
security guard.
- 20 -
Once a bid is filled, the bid sheet becomes void and in the event
of an opening within the 30-day probationary period, or if
additional employees are needed, the job will be reposted.
(d) It is agreed that job bidding under this paragraph shall consist
of signing an application and submitting such application, signed
by the employee and an administrator or security guard, to the
administrator or security guard.
(e) The employer shall notify the successful bidder and the Local
Union Chairperson within ten (10) days after the close of the
posting period at which time a notice of the successful bidder
will be posted on plant bulletin boards.
(f) Successful bidders are restricted from signing another bid slip
for a period of one (1) year.
(g) It is agreed that no more than two employees in one classification
within one department can be successful bidders within any two-
week period. More than two will be permitted to bid out so long as
these additional removals do not disrupt the operations of the
department.
(h) Unless previously experienced, the successful bidder shall receive
the starting rate of the new job or his current rate whichever is
higher
(i) When junior and senior employees are successful bidders on the
same job, and the senior employee has to be retained on his job
for replacement purposes while the junior employee is placed prior
to the senior man, the senior employee shall receive credit on the
new job.
- 21 -
(j) After a bidder has been selected on the basis of his seniority and
ability, he relinquishes all right to return to his former job. He
shall have thirty (30) working days to determine whether he wishes
to remain on the job upon which he bid. If he wishes not to remain
on the job, he will be transferred to a Utility job for a period
of fifteen(15) working days before he is eligible to be considered
for another job opening. The Company shall give the successful
bidder who has been selected on the basis of his seniority and
ability thirty (30) working days to prove his worth on the new
job. If he is removed from the job by the Company before his
thirty (30) working days have expired; he shall have the right to
return to his former job. The parties recognize that it is
possible for an employee to be qualified on his bid job upon the
conclusion of the 30-day evaluation.
Experience gained during the period of temporary assignment due to
temporary upgrade will be disregarded when determining the
relative ability of those who bid on a job. However, it is also
understood that employees who fill a temporary bid will have their
experience considered while on such bid if they subsequently bid
on the same job on a permanent basis and are the senior employee
bidding.
When employees are absent from work for any legitimate reason, at
times other than furlough or layoff, and it is anticipated that
such absence will be in excess of four (4) consecutive weeks, but
less than eighteen (18) consecutive weeks in duration, Management
shall, if required, fill such opening on a temporary basis. If it
is determined to
- 22 -
fill such an opening, a bid labeled "temporary" shall be posted on
the bulletin boards for forty-eight (48) consecutive work hours.
Only employees in lower labor grades are eligible to bid on such
openings and the bid will be awarded in accordance with this
provision. Employees who are awarded these temporary job openings
will be returned to their former job upon the return of the
regular employee whose absence caused such an opening.
An employee working in any classification on a temporary bid will
be the first to be laid off from the classification in case of
layoff and in such cases shall be returned to their former job
without bump rights.
Should the employee accepting the temporary bid remain on the job
for more than thirty (30) working days and the opening
subsequently is posted as being permanent, such employee's
temporary assignment will be considered in the awarding of the
bid if he is the senior employee bidding and, if selected.
It is understood that temporary transfers between departments can
be made for any reason relating to the efficient and economical
operation of the plan. Management shall initially effect such a
transfer in accordance with the efficient operation of the plant
by transferring a qualified and available employee within the
appropriate and/or affected classification who can perform the
needed work in another department. Such transferred employees
normally will be the least senior employee in accordance with the
above if circumstances
- 23 -
permit. Such temporary assignment shall not exceed four (4)
continuous weeks. When the purpose of this temporary transfer has
been accomplished within the four (4) week period mentioned
herein, the employee transferred will be returned to his former
department. If a temporary transfer in excess of one (1) week is
required during times of furlough or layoff, the senior employee
in such status will be recalled to fill the temporary opening
beginning with the second week. The Company will meet with
appropriate Union Officials prior to the transfer in question in
order to provide the Union with an explanation for the transfer.
The Company will not use this paragraph in assigning a series of
temporary transfers to avoid filling a job opening.
It is understood that all utility jobs are considered labor jobs
and as such, these openings are filled first through the bid
process and if no employee bids on the opening, it will be filled
at Management's discretion which includes the placement of new
hires at times when there are no active employees on layoff.
Employees receiving training will receive their normal rate of
pay, not the rate of pay associated with the job that they are
receiving training in.
The intent of the training period is to help the employee gain
the skills necessary to allow him to perform specific job
functions proficiently.
The employee may be trained as an extra man on the job and/or
actually perform the functions of the job until he has
demonstrated that he can perform all of the functions of the job
proficiently.
- 24 -
Management will, when utilizing a qualified employee at a higher
job Level than the regularly assigned job, pay the higher Level
starting rate pay or the employee's regular rate of pay whichever
is higher. The time during the temporary assignment will not
count toward increases at the higher Level.
If Management determines that a reduction in force or reduction
of specific positions are necessary, the affected employees will,
when possible, be put in a lower Level position at the rate on
the schedule that corresponds to the rate of the higher Level the
employee was earning just prior to the move.
C. An employee shall lose his seniority rights and standing, be removed from
the seniority list and cease to be employed for any of the following
reasons; the employee:
1. Quits.
2. Is discharged for cause.
3. Exceeds a leave of absence.
4. Fails to return to work within five (5) working days after being
recalled from layoff by registered mail.
5. Has less than one (1) year service and due to absence, layoff or leave
of absence a period of one (1) year has elapsed since he last worked
for the Company. If the employee has one (1) year or more of service
and due to absence, layoff or leave of absence a period equal to the
length of service with the Company but not exceeding twenty-four (24)
months has elapsed since he worked for the Company, seniority rights,
standing and employment shall similarly terminate; provided, however,
that seniority and employment rights shall be protected for a period
equal to length of service but not exceeding sixty (60) months since
the employee last worked for the Company if the employee continues to
be eligible during such period for disability benefits under applicable
workers' compensation statutes.
- 25 -
6. Unauthorized absence from scheduled work for three work shifts and
failure to show good cause for the absence and/or the failure to report
off shall be deemed a voluntary quit.
7. Retirees
In case of a permanent vacancy in a classification assigned to an
operation or activity staffed by more than one crew or, in the case of
non-rotating shifts, worked on more than one shift, the existing
incumbents of that classification who have not exercised seniority
preference in their classificaiton to change crews or shifts within the
lst twelve (12) month period shall, in order of seniority preference,
be given the opportunity to change crews or shifts. Following such
realignment the resulting vacancy in the classification, identified by
crew supervisor or shift, shall be posted for five (5) working days
excluding Saturdays, Sundays and holidays.
D. The Company will supply the International Representative an updated
seniority roster every six (6) months.
ARTICLE 12
----------
PROBATIONARY EMPLOYEES
----------------------
A. New employees or those hired after a break in continuity of service will be
regarded as probationary employees for the first seven hundred twenty (720)
hours of actual work and will receive no continuous service credit during
such period. Probationary employees may initiate grievances after thirty
(30) days under this Agreement in connection with matters other than
discipline or discharge, but may be laid off, disciplined or discharged as
exclusively determined by Management and such layoff, discipline or
discharge shall not be subject to arbitration; provided that this will not
be used for purposes of discrimination because of race, religion, national
origin, handicap, age, military service in the Vietnam era, or sex or
because of membership in the Union. Probationary employees continued in
the service of the Company subsequent to the first seven hundred twenty
(720) hours worked shall receive full continuous service credit from date
of most recent hiring.
- 26 -
B. In cases in which employees are hired or rehired after a break in
continuity of service on the same date, they will potentially have the same
continuous service date for seniority purposes. Seniority ranking will be
determined by comparing, the last two digits of each employee's social
security number. The lesser-value two-digit number will be more senior than
the higher number. If the last two digits are equal, a comparison will be
done on the third from the right digit of each employee's social security
number, with the lesser number being more senior. If a tie continues, the
comparison process will continue with the fourth digit from the right, and
so on.
ARTICLE 13
----------
CONTRACTING OUT
---------------
A. It is the Company's intention to use its employees for work on the
properties involved at the plants covered by this Agreement in cases where
in its reasonably exercised business judgment the assignment of particular
work to employees of the Company is appropriate. However, the business
determination by the Company as to the means and manpower to be used to
perform particular work shall be conclusive and shall not be deemed in
violation of this Agreement unless that determination is demonstrated to be
made in bad faith. In making its determination, the Company shall be
entitled to give consideration to any legitimate factor including but not
limited to the availability of personnel, tools and equipment; the time
required to complete the work; the necessary skills and expertise; the cost
of various alternatives to performance; whether the work is of a temporary
or ongoing nature; the relative importance of the project; the effective
utilization of resources; and other relevant considerations.
B. Except in cases where immediate action is required, the Company shall
notify the Union in advance when it intends to subcontract substantial work
for performance in the plant and shall, upon request, discuss the matter
with the Union before the subcontracting decision is implemented; provided,
however, that the implementation of subcontracting decisions shall not be
unduly delayed by the unavailability of a Union representative to promptly
discuss the matter.
- 27 -
C. Notwithstanding the above, the Company will not contract out work if
regular employees qualified to do the work are on layoff except by written
agreement with the Union, which agreement shall not be unreasonably
withheld giving consideration to the circumstances existing at the time of
the subcontracting; nor will the Company, in the absence of such agreement,
utilize subcontractors to perform regular day-to-day preventative and
operating maintenance on an ongoing basis.
D. Notwithstanding any provision to the contrary anywhere in this Agreement,
the Company may hire on a salary or contracted out basis, not subject to
the Union representation clause, the following work:
a) roll turning and grinding
b) billet grinding
c) janitorial
d) physical and mechanical testing
e) macro etching and computer services
f) grass cutting and snow removal
g) EMT and medical
h) processing of baghouse dust and mill scale
ARTICLE 14
----------
LEAVE OF ABSENCE
----------------
A. An employee upon written application and with Management's written
approval, may be given a personal leave of absence for a period not in
excess of the period specified in Article 11, Section C, without
interruption to his continuous service record. In no event shall a
personal leave of absence be granted to an employee for more than thirty
(30) days, except when there is a written agreement between the Management
and the Union. The failure of the employee to return to his job at the
expiration of the personal leave of absence will terminate any seniority
rights he may have at that time, except as such period of personal leave of
absence is extended by written agreement between the
- 28 -
Company and the Union. Nothing in this section is to be contrary or more
limiting than the leave as stated in the Family Medical Leave Act (FMLA)
when such act is applicable.
B. A sick leave of absence for a period not in excess of the period specified
in Article 11, Section C, will be given to any employee whose absence is
necessary as the result of sickness or injury and whose absence is
supported by a statement from the doctor who is treating him for such
sickness or injury. The employee will be responsible for periodically
providing continued medical evidence of his inability to work if the
Company so request. This provision shall apply to both occupational and
non-occupational disabilities.
C. Leaves of absence for the purpose of accepting positions with the
International Union shall be available to a reasonable number of employees.
Adequate notice of intent to apply for leave of shall be provided to the
Company to enable proper provision to be made to fill the job to be
vacated.
ARTICLE 15
----------
SAFETY AND HEALTH
-----------------
A. OBJECTIVE AND OBLIGATIONS
-------------------------
The Company and the Union will cooperate in the objective of eliminating
accidents and health hazards. The Company shall make reasonable provision
for the safety and health of its employees at the plants during the hours
of their employment. The Company, the Union and the employees recognize
their obligations and/or rights under existing federal and state laws with
respect to safety and health matters, and will cooperate with respect to
compliance; provided however, the Company agrees that the employees and the
Union function is advisory in nature only and the employees and the Union
are not liable for safety programs, procedures or acts of the Company.
B. SAFETY APPAREL AND EQUIPMENT
----------------------------
Protective devices, special wearing apparel and other special equipment
necessary to properly protect employees from injury and required by the
Company shall be provided
- 29 -
without cost to the employee, except that the cost of safety shoes will be
limited to $100.00 per contract year and must be purchased in compliance
with the Company's Safety Shoe Purchase Procedure. Prescription safety
glasses shall be provided through a Company-provided program once every two
years. Non-prescription safety glasses, goggles, gas masks; face ▇▇▇▇▇▇▇;
respirators; special purpose gloves; fire proof or acid proof protective
clothing when necessary and required by the Company shall be provided
without cost to the employee, except that the Company may assess a fair
charge to cover loss or willful destruction thereof by the employee. Proper
heating and ventilating systems shall be installed where needed and
maintained in good working condition.
C. DRUG AND ALCOHOL
----------------
The Company and Union agree to the Drug and Alcohol Testing Policy attached
hereto as Appendix F and incorporated by reference herein.
ARTICLE 16
----------
HEALTH BENEFITS
---------------
The Company will provide the health, sickness and accident and life insurance,
accidental death and dismemberment benefits (AD&D) identified in Appendix B, in
accordance with the terms of Appendix B which is incorporated by reference
herein.
ARTICLE 17
----------
RETIREMENT PLAN
---------------
A. In order to provide retirement benefits for its eligible hourly paid
employees, the Company has established and will maintain in effect in its
substantive provisions during the term of this Agreement, a qualified
profit sharing plan and trust as defined under Section 401K of the Internal
Revenue Code of 1986, to be identified as the USAP Hourly Employee 401(k)
Plan (the "Plan").
B. All questions concerning eligibility, coverage, contributions, time and
method of payment of benefits and interpretation shall be determined in
accordance with the terms of the plan document to be prepared, which may be
revised and amended in accordance
- 30 -
with its provisions. Any disputes or questions of interpretation relating
to entitlement to benefits under the Plan shall first be referred to and
considered through the internal dispute resolution procedures established
by the Plan before they can be processed as grievances under Article 6F of
this Agreement. The Company is authorized to make such revisions in the
terms of the plan and trust which may be reasonably necessary to comply
with the Employee Retirement Income Security Act of 1974 ("ERISA") and to
maintain the qualified tax exempt status of the Plan under the Internal
Revenue Code of 1986, as amended.
C. This Article summarizes and outlines the Plan's basic elements.
D. The Company shall contribute every six months to the Plan forty-five cents
($.45) during the first and second years of this Agreement, fifty cents
($.50) during the third and fourth year of this agreement and fifty-five
($.55) during the fifth year of this agreement, per credited hour paid for
each Bridgeville Employee. Participants in the Plan shall be 100% vested
after six months of employment, in the Company contribution, provided
however that no contribution shall be made for participants who are not
employees at least six months. Participants will be entitled to benefits
under the Plan in accordance with terms and provisions of the Plan.
ARTICLE 18
----------
PROFIT SHARING
--------------
Employees will be entitled to profit sharing as set forth in Appendix D, which
is incorporated by reference herein. In the event the Union chooses to review
any profit-sharing determinations and/or distributions by the Company, the
procedures set forth in Appendix E will be followed.
ARTICLE 19
----------
NON-DISCRIMINATION/EQUAL EMPLOYMENT OPPORTUNITY
-----------------------------------------------
It is the continuing policy of the Company and the Union that the provisions of
this Agreement shall be applied to all employees without regard to race,
religion, handicap, age, military service during the Vietnam era, national
origin, or sex. The representatives of the Union and the Company in all steps
of the grievance procedure and in all dealings between the parties
- 31 -
shall comply with this provision. In all cases in which this Agreement makes
reference to employees through the use of male gender pronouns, such reference
shall be deemed to refer equally to female employees in the same manner as if
female gender pronouns were substituted for male gender pronouns throughout the
Agreement.
ARTICLE 20
----------
BULLETIN BOARD
--------------
The Union shall have access to a bulletin board in each plant designated for its
exclusive use in posting notices and announcements relating to Union meetings,
Union elections and election results, Union social events and similar
administrative subjects. Notices of an adversary or derogatory character
directed towards the Company or its Management and notices of political,
controversial, disruptive or inflammatory character shall not be permitted.
There shall be no other postings or distribution of literature on Company
premises except as specifically authorized in writing by the Company.
ARTICLE 21
----------
AGREEMENT COMPLETE
------------------
A. The Company and the Union have had ample opportunity to present for
negotiations any subject desired. Each, therefore, clearly and
unmistakably waives for the remainder of the term of this Agreement the
right to request either party to negotiate on a subject whether or not
covered in this Agreement and whether or not mentioned during negotiations,
except with respect to the negotiation of a new contract under Article 22.
This shall not be considered "boiler-plate" or a routine "zipper clause."
B. This Agreement is complete in writing. It may be amended only by an
instrument in writing signed by the Company and appropriate Union
representatives. Such an amendment may be effective during the term of
this Agreement and may extend the term of this Agreement. This Agreement
does not operate to include, nor does it obligate the Company to continue
in effect any working condition, benefit or past practice which is not
covered or contained in this Agreement.
- 32 -
C. If either party suggests any amendment to this Agreement, the willingness
of the other party to discuss the request, or make any proposal, shall not
in any way negate the complete waiver set forth in Section A of this
Article, nor shall the making of any amendment in any way negate Section A.
ARTICLE 22
----------
EFFECT OF LAW
-------------
A. In the event that any provision of this Agreement is determined to be in
conflict with any applicable law or regulation, that provision shall no
longer be effective; but the remainder of this Agreement shall continue in
full force and effect.
B. The parties will, upon request, promptly meet and negotiate concerning
possible revisions resulting from the invalidation, but Article 5 (NO
STRIKE/NO LOCKOUT) shall remain in effect until termination of this
Agreement.
ARTICLE 23
----------
TERMINATION
-----------
This Agreement dated September 1, 1997, shall continue in full force and effect
until August 31, 2002, inclusive, and thereafter it shall be considered
automatically renewed for a successive period of twelve (12) months unless at
least sixty (60) days prior to the end of the initial five-year term or the
subsequent expiration of any twelve (12) month effective period either party
shall serve written notice upon the other that it desires cancellation, revision
or modification of any provision or provisions of this Agreement. In the event
that proper notice is given under this provision, the parties shall attempt to
reach an agreement with respect to the proposed change or changes, and at least
forty-five (45) days prior to the expiration date of the Agreement, meetings to
consider such changes shall be held by the parties. In the event the parties do
not reach a written agreement by the expiration date in the particular year, as
provided for herein, then this Agreement shall in all respects be deemed void
and terminated. The parties hereto by written
- 33 -
agreement may extend said period for the purpose of reaching a new Agreement.
WHEREFORE, the parties have caused this Agreement to be executed by their
duly authorized representatives this 12 day of September .
---- -----------
Universal Stainless & Alloy United Steelworkers of
Products, Inc. America AFL-CIO
/s/ ▇. ▇. ▇▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
--------------------------------- -----------------------------------
/s/ ▇. ▇▇▇▇▇▇ /s/ ▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------- -----------------------------------
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------- -----------------------------------
/s/ ▇▇▇▇ ▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇. Palm
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇ ▇▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, ▇▇.
-----------------------------------
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-----------------------------------
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
-----------------------------------
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
-----------------------------------
- 34 -
APPENDIX A
----------
WAGE RATES
----------
All hourly employees employed as of the date of this agreement is signed will
receive a one-time bonus of $500.00 paid on the first pay date following
September 1, 1997.
The standard hourly wage rates for the qualification levels established as
described below shall be as follows:
Increases will be given on March 1st and September 1st of each year
according to the schedule below.
In order to adjust the pay increase schedule from the current individual
seniority pay increase schedule to the March/September pay increase schedule,
the following adjustment will be effective September 1, 1997. Employees with
one (1) or more years of service who have been in their current pay rate
category for more than two (2) months will advance to the next pay rate
September 1, 1997. (Example, a Level II employee who is currently earning
$12.00 per hour and has been at that rate for more than two months will advance
to $12.25 on September 1, 1997).
Effective March 1, 1998, all non-probationary employees will advance to the
next rate on the pay schedule and all future increases will take place on March
1st or September 1st. Employees that have fulfilled their probationary
requirements, and have less than one (1) year of service, will receive $.25 on
the first pay raise date. On the next pay raise date, they will receive another
$.25 which will be equal to the one-year pay raise listed on Schedule A.
Probationary employees will remain at the start rate until such time that they
have fulfilled their probationary requirements and will then increase to the
next rate on the next regular increase day (March 1st or September 1st). Once an
employee has reached the top rate within his job Level, his future compensation
will be according to Pay Schedule B.
Pay Schedule A
6 mos. 6 mos. 6 mos. 6 mos.
Level Start 1 yr. thereafter thereafter thereafter thereafter
1 9.00 9.50 9.75 10.00 10.25 10.50
2 11.00 11.50 11.75 12.00 12.25 12.50
3 12.50 13.00 13.25 13.50 13.75 14.00
(Chart continued below)
6 mos. 6 mos.
Level thereafter thereafter
1 10.75 11.00
2 12.75 13.00
3 14.25 14.50
- 35 -
Pay Schedule B
-----------------------------------------------------------------------------------------
March 1, 1999 September 1, 1999 March 1, 2000 September 1, 2000
-----------------------------------------------------------------------------------------
$500.00 $.25/hour $600.00 $.25/hour
One-time payment Wage Increase One-time payment Wage Increase
-----------------------------------------------------------------------------------------
----------------------------------------------------------------
March 1, 2001 September 1, 2001 March 1, 2002
----------------------------------------------------------------
$700.00 $.25/hour $800.00
One-time payment Wage Increase One-time payment
----------------------------------------------------------------
All bonuses (one-time payments) will be paid on the next regular pay date
following the bonus date.
Provided however that each new employee starts at the start rate as of
the date of the employee's first hour of work, regardless of date of hire, and
progresses from the start point on the above chart.
New employees will be hired at the starting rate for the Level for which they
are hired. They will advance within their Level according to the specified
schedule. (Based on a September 1st and March 1st pay adjustment dates).
Employees who are promoted to a higher Level will:
A. If the employee has less than one year of service, the employee will start
at the starting rate of the job Level he has been promoted to.
B. If the employee has more than one year of service when he is promoted to
the new Level, he will start at the second rate at that Level (the one-year
Level). Future rate increases will apply according to the September 1st and
March 1st pay adjustment dates.
- 36 -
The time associated with the rate schedule is based on the date when the
employee starts working at a particular job Level.
Qualification Level 3 shall consist of the following duties:
a. Roller
b. E.A.F. Operator
c. A.O.D. Operator
d. E.S.R. Operator
e. Machinist
f. Mechanic
g. Electrician
▇. ▇▇▇▇▇
i. Ladleman
j. Ladle Craneman
Qualification Level 2 shall consist of the following duties:
a. Heater
b. Craneman
c. Melting Helper
d. Warehouseman (Finisher)
e. Conditioner
f. Lab Technician
g. Molders (after six months on the job training)
▇. ▇▇▇▇▇▇▇▇
i. Scrap Yard Receiver/Charger
Qualification Level 1 shall consist of:
a. Plant Utility (all other duties)
Employees are required to perform lower level jobs (Level 1 or 2) as assigned
without additional compensation.
Progression Timetable
---------------------
Upon hire, employees will be assigned to the beginning rate for their
qualification level. The qualification level shall be set by the Company
according to the Company's duty openings and employee qualification for these
openings. The Company is responsible for qualifying employees for additional
duties based upon Company needs and employee consideration.
- 37 -
APPENDIX B
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BENEFITS
--------
The following benefits will be provided to employees:
(1) Benefits as identified as, or similar to, Blue Shield Preferred Blue with
$15.00 co-pay on name brand drugs if generic brands are available.
(2) Benefits as identified as, or similar to, Blue Shield Opti-Choice Vision
coverage.
(3) Benefits as identified as, or similar to, Blue Shield Penn Dental coverage
Option III
The Company will pay health care benefit premiums up to $450.00 per employee per
month.
In the event of a layoff, the Company will provide health care coverage
according to the agreement for a period not to exceed three (3) months starting
with the first day of the month following that in which the employee was laid
off.
Four Hundred Fifty ($450.00) Dollars per month is established as the cap amount
for health care coverage (including single, husband & wife, parent & child, and
family coverage). All increases in health costs above the cap (and its
corresponding costs for other coverages) shall be shared 50/50, with the
employees contributing 50% of the cost increases.
The cap will increase to $475.00 starting in September, 1998.
The cap will increase to $500.00 starting with the September premium for the
year 2000.
The Company will provide reasonable notice to the Union, after receipt of same
from the carriers, of any increases requiring employee contributions, and the
Company may request a meeting to explore mutually agreeable alternatives.
Sickness and Accident -- $250/week, first day hospital, eighth day sickness
$275/week starting 9/1/99; $300/week starting 9/1/01.
Life Insurance and AD&D -- $15,000.00
$20,000.00 second year starting with 1st Anniversary of contract.
$25,000.00 fourth year starting with 3rd Anniversary of contract.
The Company has the sole right to choose claims administrators and insurance
carriers and shall have the right to self-insure.
- 38 -
APPENDIX C
----------
EMPLOYEES ELIGIBLE FOR THREE (3) WEEKS VACATION
STARTING IN YEAR 1998.
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Wengryn, Jr., ▇▇▇▇▇▇ ▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇
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▇▇▇▇▇ III, ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇
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▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇., ▇▇▇▇▇▇
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Broccoli, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇
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Demeolo, ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇
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▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
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▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇
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- 39 -
APPENDIX D
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PROFIT SHARING
--------------
(1) The Company shall implement and maintain a Profit Sharing Plan.
(2) Profit sharing shall occur, as explained below, for net income before tax,
reduced by scheduled debt principal payments, of the Bridgeville Specialty
Steel Division, in excess of an annual amount of one million dollars.
Income before tax will be determined in accordance with generally accepted
accounting principles.
(3) The profit sharing pool shall be 8.5% of the Bridgeville Specialty Steel
Division pre-tax profits which are in excess of the one million dollar
annual profit threshold identified in (2) above.
(4) The Profit Sharing general distribution amount will be divided by the total
hours of all Union-represented and probationary employees at the
Bridgeville Specialty Steel Division, and each such employee will receive a
payment equal to the resulting amount multiplied by his or her hours during
the period.
(5) For purposes of paragraph 4 above, "Hours" shall include the following but
shall not exceed 2,080 hours for any plan year for any Employee or 520
hours for any quarter: Hours worked (including straight time and overtime
hours), vacation, unworked holidays, jury duty, witness service, funeral
leave, at the rate of 8 hours for each such day, hours on Union business,
and hours at the rate of 8 hours a day or a maximum of 40 hours per week
while receiving workers' compensation or sickness and accident benefits
(based on the number of days absent from work while receiving such
benefits). Workers Compensation and Sickness and Accident credit hours are
only credited in the year in which the workers compensation or S&A Benefits
began.
(6) The Company will pay such Annual Profit Sharing Plan payout determined in
(2) above on the 15th day of April following the calendar year when such
profit sharing payment is earned. Eligible employees must be employed by
the Company on the date of distribution, except for employees 60 years of
age or older who have taken retirement, or employees collecting Social
Security Disability, regardless of age.
(7) Worker's Compensation Savings. To the extent, after the first year of this
Agreement, the Company obtains a savings from its first year's workers'
compensation rates due to the safe activities and safety consciousness of
the employees, as reflected by the State designated modifier and savings
resulting from safety committee certification by the State. 50% of this
savings will be paid to the Employees on the 15th day of April following
the calendar year when the savings occurred.
- 40 -
(8) The Company will make a partial payout for the period of January 1, 1997
through June 30, 1997 on the pay date closest to September 15, 1997. The
payout will consist of 75% of the 8.0% net income, reduced by $500,000,
during the period. Employees with credited hours during the period will
receive a portion equal to the total pool divided by total hours during the
period multiplied by his hours during the period not to exceed 1,040 hours
for any employee during the period.
(9) Starting with the third quarter of 1997, the Company will make partial
payments for the first, second, and third quarter of each calendar year.
The total payout for the period will be 75% of 8.5% net income beforetax
for the period reduced by $250,000.00. Payment will be made on the pay date
closest to the 15th day of the second month following the end of the
quarter.
Each eligible employee (an employee who has hours in the period) will
receive a portion of the total payout equal to the total payout divided by
the total number of hours for the period and multipled by his hours during
the period (not to exceed 520 hours for any one individual).
- 41 -
APPENDIX E
----------
PROFIT SHARING AUDIT PROCEDURES
-------------------------------
The Union recognizes the Company's need for confidentiality and commercial
sensitivity of financial information related to the Company's profitability.
The Company recognizes the Union's need for some access to Company records, upon
the Union's option, to verify profit-sharing in accordance with Appendix D.
In recognition of these basic principles, the Company and Union agree to the
following procedure, which is to be strictly complied with:
1) The Union may make a request to review financial information of the
Company within fifteen (15) days of the Company's declaration of a
profit-sharing distribution or notice to the Union that no
distribution will occur.
2) The Union will select a single certified public accountant ("Union
Auditor"), either from the USWA International or from a nationally
recognized accounting firm, to be paid out of the profit sharing
amounts.
3) The Company will provide this Union Auditor at the Company offices with
access to reasonably requested Company books and records, including
the work papers of the auditor who has prepared the Company's annual
statements. The Union shall have access to the auditor who has
prepared the Company's audit.
4) All information will be kept in strict confidence and only used for
internal purposes. The absolute confidentiality of all financial
information shall be maintained at all times. The Union Auditor,
Company representative, and arbitrator will sign appropriate
Confidentiality Agreements. Under no circumstances shall any financial
information obtained by the Union Auditor be used for any purpose, by
the auditor or the Union or any other entity, for any purpose other
than the verification and/or challenge of profit-sharing determination.
- 42 -
APPENDIX F
----------
DRUG AND ALCOHOL TESTING POLICY
-------------------------------
USAP is committed to the health and safety of its employees. Employees that are
dependent, under the influence or abusers of controlled substances, including
prescription drugs that are misused, or alcohol, significantly impair the safety
of themselves and others and reduce the effectiveness of their job performance.
It is USAP's policy, consistent with the mandates of the Federal Drug Free
Workplace Act, to assure that when there is probable cause to believe an
employee is dependent, under the influence of abusing controlled substances or
alcohol, by reason of demeanor, appearance, physical symptoms, possession, known
abuse or a combination thereof, or involvement in a serious workplace accident,
such employee will be removed from the work environment and tested for the
presence of controlled substances and/or alcohol. In addition, a screening for
the presence of controlled substances may be performed as a part of routine post
offer of employment physicals and when employees return to work following an
absence of thirty (30) calendar days or longer. Further, pre-employment
screening may be performed prior to an offer of employment or as a hiring
contingency.
When testing is required or requested, the employed will be transported to an
approved medical facility where proper chain of custody procedures as outlined
by the National Institute of Drug Abuse (NIDA) will be observed. The employer
representative will arrange to have the suspect employee observed by a second
employer representative or a Union representative (whenever or wherever
reasonably possible) prior to testing.
1. A refusal to submit to testing in accordance with this policy (Probable
Cause) will be subject to discipline up to and including discharge. An
employee (Probable Cause) who tests positive at or above the attached
listing (page 44) of drug and/or alcohol levels, which are and will
automatically be consistent with State/Federal Guidelines, will be
considered as having a drug abuse problem and/or as being intoxicated.
Said employee may be subject to discipline up to and including discharge
depending upon the probable cause (e.g., property damage, fighting, etc.).
Absent such extenuating circumstances, an employee may avoid discipline if
he/she seeks rehabilitative treatment. In order to maintain employment,
the employee must successfully complete an approved rehabilitation program.
Should the employee refuse rehabilitation and/or does not successfully
complete the program, such employee will be subject to discipline up to and
including discharge.
2. An individual who voluntarily admits to an alcohol and/or a drug problem
before a probable cause situation exists and who subsequently successfully
completes an approved rehabilitation program shall not be disciplined as a
result of said disclosure.
Further, it is understood that employee(s) in either Items 1 and 2 immediately
above will be given one (1) and only one (1) such opportunity to rehabilitate
themselves. An employee who tests positive after completing rehabilitation, as
required by this policy, will be discharged. Further, any employee who
successfully completes a rehabilitation program will be subject to random
testing within the next twenty-four month period. Should the employee test
positive (at or above the drug and alcohol levels attached), such employee will
be subject to immediate discharge.
- 43 -
CUTOFF VALUES
-------------
EMIT GC/MS
DRUG ng/▇▇ ▇▇/ml
-----------------------------------
Amphetamine/1/ 300 300
Barbituates 300 300
Benzodiazephines 300 300
Cannabinoids 20 15
Cocaine Metabolite 300 150
Methadone 300 150
Methaqualone 300 300
Opiates 300 300
Phencyclidine ▇▇ ▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇
-------------------------
/1/If Amphetamines screen at 1,000 ng/ml - confirmation cutoff will be
500 ng/ml.
Blood alcohol level of 0.1 gm/dl or greater is considered being intoxicated.
-44-