Collective Bargaining Agreement Dated 02/19/97

AGREEMENT


BETWEEN


WELLS ELECTRONICS, INC.


AND


I.B.E.W. LOCAL 1392


FEBRUARY 19, 1997 -- FEBRUARY 18, 2000


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TABLE OF CONTENTS


AGREEMENT


BASIC PRINCIPLES
PAGE ARTICLE I - TERM-AMENDMENT-TERMINATION


Section 1. Terms .................................................... 1
Section 2. Amendment or Termination ................................. 1
Section 3. Amendment During Term .................................... 1


ARTICLE II - RIGHTS AND RESPONSIBILITIES OF PARTIES


Section 1. Union Recognition ........................................ 1
Section 2. Management Function Reserved ............................. 2
Section 3. No Strike - No Lockout ................................... 3
Section 4. Union Stewards ........................................... 3
Section 5. Shop Committee ........................................... 3
Section 6. Employee's Right When Disciplinary Action is Taken ....... 4
Section 7. Compensation Insurance ................................... 4
Section 8. Right of Visitation ...................................... 4
Section 9. Review of Wage and Hours Computation ..................... 4
Section 10. Union Security ........................................... 5
Section 11. Dues Deduction ........................................... 5
Section 12. Non-Discrimination ....................................... 5


ARTICLE III - GRIEVANCE PROCEDURE


Section 1. Processing a Grievance ................................... 6
Section 2. Arbitration .............................................. 7
Section 3. Waiver of Grievance ...................................... 8


ARTICLE IV - HOURS-OVERTIME-HOLIDAY


Section 1. Work Day - Work Week ..................................... 8
Section 2. Regular Working Hours .................................... 8
Section 3. Overtime Payment ......................................... 9
Section 4. Rest Periods ............................................. 9


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PAGE ARTICLE IV - HOURS-OVERTIME-HOLIDAY (CONTINUED)


Section 5. Distribution of Overtime ................................. 9
Section 6. Holidays and Holiday Pay ................................. 11
Section 7. Clean-up ................................................. 12
Section 8. Job Assignment ........................................... 12


ARTICLE V - WAGE PAYMENT-WORK CLASSIFICATIONS
Section 1. Wage Rates and Classification of Work .................... 12
Section 2. New Classifications of Work .............................. 13
Section 3. Shift Premium ............................................ 13
Section 4. Pay Day .................................................. 13
Section 5. Call-Back Payments ....................................... 13
Section 6. Minimum Call-In .......................................... 13
Section 7. Cost of Living Adjustment ................................ 13


ARTICLE VI - HOSPITALIZATION AND INSURANCE ................................ 15


ARTICLE VII - HEALTH AND SAFETY ........................................... 17


ARTICLE VIII - RETIREMENT INCOME PLAN ..................................... 17


ARTICLE IX - SENIORITY


Section 1. Determination of Seniority ............................... 18
Section 2. Seniority Rights ......................................... 18
Section 3. Acquisition of Seniority by New Employees ................ 19
Section 4. Seniority Lists and Loss of Seniority .................... 19
Section 5. Seniority Change Notices ................................. 20
Section 6. Transfers/Temporary ...................................... 20
Section 7. Temporary Layoff ......................................... 20
Section 8. General Layoff ........................................... 20
Section 9. Recall ................................................... 21
Section 10. Specially Skilled Employees .............................. 22
Section 11. Bid Provision - Upgrading and Horizontal ................. 22
Section 12. Transfer-Classification Rate ............................. 23
Section 13. Qualification Period When Changing Job Classifications ... 23
Section 14. Disqualification When Changing Classification ............ 24
Section 15. Layoff During Qualification Period ....................... 24


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PAGE ARTICLE IX - SENIORITY (CONTINUED)


Section 16. Shift Preference ......................................... 24
Section 17. Union Officer's Seniority ................................ 24
Section 18. Group Leader ............................................. 24


ARTICLE X - LEAVE OF ABSENCE


Section 1. Personal Leave ........................................... 25
Section 2. Sickness and Medical-Related Leave ....................... 25
Section 3. Injuries ................................................. 26
Section 4. Maternity Leave .......................................... 27
Section 5. Copy of Leave ............................................ 27
Section 6. Return From Leave ........................................ 27
Section 7. Employment Outside the Bargaining Unit ................... 28
Section 8. Absence Due to Death in the Immediate Family ............. 28
Section 9. Jury Duty ................................................ 28
Section 10. Absence - Union Business ................................. 29


ARTICLE XI - VACATION


Section 1. Vacations ................................................ 29
Section 2. Time of Vacation Payments ................................ 31
Section 3. Vacation Schedules ....................................... 31
Section 4. Holidays Within Vacation Periods ......................... 31


ARTICLE XII - GENERAL PROVISIONS


Section 1. Definition of Employees .................................. 32
Section 2. Definition of Part-time Employees ........................ 32
Section 3. Bulletin Boards .......................................... 32
Section 4. Effect of Law ............................................ 32
Section 5. Prior Written Agreements ................................. 32


EXHIBIT A - WAGE RATES .................................................... 33


EXHIBIT B - COMPREHENSIVE MEDICAL PLAN .................................... 36


EXHIBIT C - DEPARTMENT LISTING ............................................ 37


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AGREEMENT


This Agreement entered into this 19th day of February 1997, between WELLS ELECTRONICS, INC., 52940 Olive Road, South Bend, Indiana, or its successors or assigns, hereinafter called the "Company" and LOCAL UNION 1392, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, hereinafter called the "Union". The International Brotherhood of Electrical Workers being an affiliate of the AFL-CIO.


BASIC PRINCIPLES


The Company and the Union have a common and sympathetic interest in the electrical industry. Progress in this industry demands a mutuality of confidence between the Company and the Union. Therefore, a working system and harmonious relations are necessary between the Company, the Union, and the public, so that all will benefit by continuous peace and by adjusting any differences by rational, common-sense methods. To these ends, this Agreement is made and entered into. Now, therefore, in consideration of the mutual promises and agreements herein contained, the parties hereto agree as follows:


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ARTICLE I


TERM-AMENDMENT-TERMINATION


SECTION 1. TERMS: This Agreement shall take effect on February 19, 1997, and shall continue in full force and effect until and including February 18, 2000. It shall continue in effect from year to year thereafter, unless notice for amendment or termination is given in the way provided for in Section 2 and 3 below.


SECTION 2. AMENDMENT OR TERMINATION: Either party desiring to amend or terminate this Agreement must notify the other in writing at least sixty (60) days prior to the termination date. Whenever notice is given for amendment or termination, negotiations thereon shall commence not later than forty-five (45) days prior to the termination date.


SECTION 3. AMENDMENT DURING TERM: This Agreement shall be subject to amendment at any time by mutual consent of the parties hereto, but there shall be no obligation to bargain over any proposed amendment during the existence of this agreement or extension thereof.


ARTICLE II


RIGHTS AND RESPONSIBILITIES OF PARTIES


SECTION 1. UNION RECOGNITION: The Company recognizes the Union as the sole bargaining representative of a unit consisting of all employees of the various classifications listed in Exhibit "A" attached hereto, who are employed at the Company plants located in South Bend, Indiana. It is agreed that apprentices will be included in the bargaining unit if and when such a classification is established. Excluded from such bargaining unit are office clerical employees, supervisory employees, engineering and laboratory technicians, timekeepers, guards and professional employees. The non-bargaining maintenance technician unit will not be expanded beyond the three (3) positions that make up the unit. Any additional maintenance technicians positions will be recognized as part of the bargaining unit.


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SECTION 2. MANAGEMENT FUNCTION RESERVED:


(A) Except as expressly and specifically limited or restricted by a provision of this agreement, and to that extent only, the company reserves and retains any and all management rights, prerogatives and privileges previously vested in or exercised by the Company. Such rights of management include, among other things, but are not limited to, the right to plan, direct, control, increase or decrease the operations; to determine the products to be manufactured; to purchase materials and parts from any source, to shift or transfer location of products manufactured or types or methods of work within the Company; to establish and change the sequence of manufacturing processes; with full employment, to subcontract work; to change machinery, methods and facilities, or introduce new methods, techniques or machinery and products; to automate; to maintain and administer job evaluation programs and performance appraisal programs; to maintain discipline of employees; to warn, suspend, discipline, discharge or demote employees for just cause; to establish, change, add to or reduce the number of shifts, the schedules to be worked and the work force; to determine whom shall be hired, the number of employees to be employed at any time and the qualifications necessary for jobs; to transfer, relieve or lay off employees or to shorten or lengthen the work week to meet the needs of the Company; to establish, maintain and enforce and to rescind, amend or change reasonable rules, regulations, policies and disciplinary procedures; to adopt no smoking policies; to add, modify, combine or eliminate job classifications; to set qualifications for job classifications; to determine policies affecting the selection and training of employees; where reasonable suspicion exists and after discussion with the steward, to require an employee to submit to blood alcohol and/or drug testing and/or a medical examination by a doctor designated by the Company, once a program is implemented; to assign and schedule work duties; to schedule overtime hours and to assign employees to overtime work; to transfer employees, and set quality, quantity and work standards in accordance with its determination of the needs of the job and the operation.


(B) In every case under this agreement where a judgment is required to be made, except in cases relating to an employee's physical or mental fitness, such judgment shall be made by the Company whose determination shall not be reversed unless it is found that the Company acted in an arbitrary, capricious, discriminatory, unreasonable or unjust manner. If an employee's mental or physical fitness is in question, the Company may send said employee to a qualified physician of its choice at the Company's expense subject to the grievance procedure. The parties agree to utilize and be bound by the provisions of Article X.


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(C) It is understood and agreed that all rights exercised are retained by the Company unless they are contracted away through specific provisions in this agreement.


(D) The Company further specifically reserves the right to move, relocate, sell, close, liquidate or consolidate the plant in whole or in part.


(E) It is agreed that an arbitration award shall not impair the reserved management rights in this agreement.


(F) The Company and the Union acknowledge that employee involvement can improve morale, product quality, safety, productivity and the overall environment of the workplace. The parties agree that employees should be encouraged to actively participate in employee involvement.


SECTION 3. NO STRIKE - NO LOCKOUT: The Union agrees that it and its members will not engage in any strike, slow-down or stoppage of work or other interference with production during the term of this Agreement. The Company agrees that there will be no lockout of its employees, and all differences which may arise shall be settled in accordance with the provision of the Agreement.


SECTION 4. UNION STEWARDS: The Company agrees to recognize shop stewards who shall be employees of the Company and members of the Union. There shall be one (1) steward for each shift


SECTION 5. SHOP COMMITTEE: The Company recognizes one shop committee from the plant which shall consist of the steward from each shift. For the purpose of grievance discussions, a committee will be formed which shall consist of:


(A). The steward from the shift on which the aggrieved employee works.


(B). The Union Business Manager or designated representative.


Such sub-committee (Grievance Committee) shall operate as outlined in Article III, Grievance Procedure.


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SECTION 6. EMPLOYEE'S RIGHT WHEN DISCIPLINARY ACTION IS TAKEN:


(A). Rights at Suspension or Discharge: Any employee who has
established seniority with the Company and who is disciplined by
suspension or discharge, may request the presence of his shop
steward to discuss the matter with him for a period of time not to
exceed twenty (20) minutes in an office designated by the Company
for that purpose, before such employee is required to leave the
plant; and such shop steward will be called with reasonable
promptness and such opportunity of discussion afforded by the
Company.


(B). Limitation on Life of Warnings: When determining the need for
suspension or discharge, only warnings or violations occurring in
the immediate preceding twelve (12) month period will be taken
into consideration.


SECTION 7. COMPENSATION INSURANCE: For all employees covered by this Agreement, the Company shall carry Worker's Compensation Insurance with a company authorized to do business in the state, make proper social security payments and make proper contributions to the State of Indiana Unemployment Compensation Board, and provide such other protective insurance as may be required by the laws and regulations of the State of Indiana, and shall furnish satisfactory proof of such to the Union.


SECTION 8. RIGHT OF VISITATION: The Business Manager of the Union, or any of his designated assistants, when not an employee of the Company, shall be received by the Company at its office, on reasonable notification to the Company, and, where investigation of grievance is desired, shall be permitted to go into the factory (to be accompanied by a factory representative, if not an employee of the Company) subject to the same limitations and restrictions as may be imposed by the Company on regular employees of the Company.


SECTION 9. REVIEW OF WAGE AND HOURS COMPUTATION: Should a question arise regarding working hours worked or computation of pay of an employee, the Human Resources Department will review the payroll record with an employee. If a satisfactory agreement is not reached on the day the question is raised, the matter will be handled as outlined in Article III, "Grievance Procedure".


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SECTION 10. UNION SECURITY: All employees covered by the terms of this Agreement shall be required to become and remain members of the Union as a condition of employment from and after the ninetieth (90th) day following the date of employment or the effective date of this Agreement, whichever is later.


SECTION 11. DUES DEDUCTION: The Company agrees to deduct from the wages of each Union member, upon written authorization, an amount equal to the regular dues of the Union, such deduction to be made on the last payday of each calendar month. The total amount deducted is to be transmitted to the Financial Secretary of the Union together with a list of the names of the employees from whose pay deductions were made. The form of authorization to be used in this regard shall be made with the Agreement of both parties hereto. The Union agrees to hold the Company free from all liabilities in the matter of dues collection, except for ordinary diligence and care in the transmittal of such moneys.


SECTION 12. NON-DISCRIMINATION: The Union and the Company recognize the legal obligation to make reasonable accommodation for certain employees with disabilities as defined by the Americans With Disabilities Act of 1990, 42 U.S.C. SS12101 through 12203, effective July 26, 1992. The parties agree that each and every instance where a reasonable accommodation may be necessary will be treated on a case by case basis based on the facts of each particular employee's disability. The parties agree that the Union shall participate and be present in any meetings and/or discussions between the Company and disabled employees which involve a possible reasonable accommodation. The parties agree that the Union shall, upon request, have access to all information regarding disabled employees relevant to efforts to achieve a reasonable accommodation for said disabled employees. The parties agree that any action taken by the Company to achieve a reasonable accommodation is subject to the contractual grievance/arbitration procedure.


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ARTICLE III


GRIEVANCE PROCEDURE


A grievance is defined as an alleged violation of a specific article or section of this Agreement.


SECTION 1. PROCESSING A GRIEVANCE: If any such grievance arises there shall be no stoppage or suspension of work because of such grievance, but such grievance shall be submitted to the following grievance procedure:


STEP 1. Within five (5) working days of the time a grievance arises,
the employee or employees concerned, with the assistance of his
shop steward, or committee-person in the absence of their shop
steward, will present the grievance to their supervisor. Within
two (2) working days after presentation of grievance, the
supervisor shall give an answer orally to the employee and the
union steward involved.


STEP 2. If the grievance is not resolved at Step 1; within the two
(2) working days after receiving the company's oral answer, it
shall be reduced to writing, signed by the employee(s) involved,
and referred to the Shop Steward or committee-person for
presentation to the Company. The written grievance shall state
the facts giving rise to the grievance, identify all the
provisions of the agreement alleged to be violated, state the
contention of the union/employee and indicate the relief
requested. Within two (2) working days after presentation of the
grievance, the supervisor shall give a written answer to the
union steward involved.


STEP 3. If the grievance is not resolved at Step 2; within two (2)
working days after receiving the Company answer in Step 2; the
Union shall advise the Company of their desire to meet to
resolve the issue. The participants in this meeting shall be the
Grievance Committee, the Business Manager of the Union or his
designated representative and the Manager, Human Resources or
his designated representative. Within two (2) working days
following the meeting, the Company will give a written answer to
the union steward originating the grievance.


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STEP 4. If the grievance is not resolved at Step 3; within two (2)
working days after receiving the Company answer in Step 3; the
Union shall advise the Company of the desire to meet to resolve
the issue. The participants in this meeting shall be the
grievance committee, the Business Manager of the Union or his
designated representative, an International Representative of
the IBEW may be present only to assist the Local Union, and the
Manager, Human Resources of his designated representative.
Within two working days following the meeting, the Company will
give a written answer to the Union steward originating the
grievance.


Within ten (10) working days after the Step 4 answer is rendered by the Company, the Union may decide to submit the grievance to arbitration. If so it shall be handled as specified in Section 2, Arbitration.


Disposition of a grievance under any of the foregoing steps will be final unless the grievance is pursued to the next step in the time and manner provided above. The time limits provided for in the grievance procedure may be extended by mutual agreement.


SECTION 2. ARBITRATION: Arbitration will be handled by the American Arbitration Association in accordance with their rules and regulations. Each party will bear its own expenses in the arbitration except that the fee and expenses of the Arbitrator will be equally divided between the parties.


Within five (5) working days after the Union decides to submit a grievance to arbitration, the Union shall request the American Arbitration Association to furnish both parties with a list of the names of nine (9) duly accredited members of the Association. Within five (5) working days after receiving said list, unless a later date is mutually agreed upon, the parties shall meet and choose one (1) person from that list by alternately striking a name until one (1) name remains. That person shall be the Arbitrator for the case.


The Arbitrator will have no authority to alter, modify, eliminate, add or remove any part or parts of this Agreement. The Arbitrator shall consider only the matter which has been properly carried through the Grievance Procedure and which is subject to the Arbitration provisions hereof and shall deal only with the matter which occasioned his appointment. The Arbitrator shall not have the right to consider any matter not subject to the Grievance Procedure as set forth in this Agreement and his decision shall be based solely upon his interpretation or application of what the Agreement provides. The Company and the Union agree that they will accept as final and binding the decision of the Arbitrator.


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SECTION 3. WAIVER OF GRIEVANCE: (1). Unless mutually agreed to in writing, any grievance not originated and handled strictly within the time limits and in the manner provided in this Article, shall be considered to have been waived, and thereafter, that grievance may not be presented for further consideration. (2). The parties by mutual agreement may waive any step of the foregoing grievance procedure. In cases where the grievance involves wages, such may not be retroactive prior to the work week during which the written grievance was first presented.


ARTICLE IV


HOURS-OVERTIME-HOLIDAY


SECTION 1. WORK DAY - WORK WEEK: Eight (8) hours shall constitute a regular work day. Five (5) consecutive days, starting with Monday, shall constitute a regular work week, when operating a three (3) shift schedule, the first working shift of the week shall be first shift starting at 7:00 a.m. on Monday morning. Nothing herein shall be construed as a guarantee of hours per day or days per week.


SECTION 2. REGULAR WORKING HOURS: The regular working hours for the following classifications are:


Q.A. Auditors, Operators and Set-Up Assembly 1st shift 7:00 a.m. - 3:00 p.m. 2nd shift 3:00 p.m. - 11:00 p.m. 3rd shift 11:00 p.m. - 7:00 a.m.


A twenty-five (25) minute period will be given for lunch break as nearly as possible to 3 hours before the end of the shift.


The regular working hours for all other classifications are as follows:


1st shift 7:00 a.m. - 3:30 p.m. 2nd shift 3:00 p.m. - 11:30 p.m. 3rd shift 11:00 p.m. - 7:30 a.m.


A thirty (30) minute intermission will be given for lunch period as nearly as possible to 3 hours before the end of the shift.


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SECTION 3. OVERTIME PAYMENT:


(1) Overtime pay at the rate of one and one-half (1-1/2) times base rate will be
paid for:


(A). All hours worked in excess of eight (8) per day.


(B). All work performed on the sixth consecutive work day in a regular
work week, regardless of the day of the week on which the shift
started or ended.


(2) Overtime pay at the rate of two (2) times base rate will be paid for all
hours worked on the seventh consecutive day in a regular work week.


(3) Overtime pay at the rate of two (2) times base rate will be paid for all
hours worked on Holidays designated in Section 6 below, plus the employee
will receive eight (8) hours straight time pay as holiday pay.


SECTION 4. REST PERIODS: One rest break will be given in addition to the lunch break for those employees in the Operator, QA Auditor and Set-up Assembly classifications. The rest break(s) will be ten (10) minutes and will be given as ne ...