Collective Bargaining Agreement

EXHIBIT 10.2
---------------------


INDEPENDENT AGREEMENT


between


SIMPSON STRONG-TIE CO., INC.
(BREA BRANCH)


and


TOOL & DIE CRAFTSMEN ASSOCIATION


effective


JANUARY 1, 1996 through DECEMBER 31, 1998


TOOL & DIE CRAFTSMAN ASSOCIATION CONTRACT
TABLE OF CONTENTS


Article Page No. Description No. - - ----- ------------------------------------------------------ ------


I UNION RECOGNITION AND WORK JURISDICTION 1


Section 1. Employees Covered 1
Section 2. Employees Not Covered 1
Section 3. Union Retains Jurisdiction 1


II UNION SECURITY 2


Section 1. Union Membership 2
Section 2. Hiring of Employees 2
Section 3. No Discrimination 2


III MANAGEMENT SECURITY 3


Section 1. No Strike - No Lockout 3
Section 2. Employee Considered as Quit 3


IV WAGES AND CLASSIFICATIONS 4


Section 1. Wages 4
Section 2. Definition of Job Classifications 4
Section 3. New Work 4
Section 4. Deductions from Pay 4
Section 5. Weekly Pay Periods 4
Section 6. No Reduction in Pay 4


V JURY PAY - FUNERAL LEAVE 5


Section 1. Jury Service 5
Section 2. Funeral Leave 5


VI APPRENTICES 6
Section 1. Acceptance of Standards 6
Section 2. Pay for Apprentices 6
Section 3. Ratio and Rules 6
Section 4. Seniority for Apprentices 6
Section 5. Termination of Apprentices 7


VII HOURS AND SHIFTS 8


Section 1. Hours 8
Section 2. Shifts and Shift Differentials 8
Section 3. Transfer to Another Shift 8
Section 4. Overtime 9
Section 5. Call-in and Call-back Pay 9
Section 6. Travel Time 10


VIII HOLIDAYS 11


Section 1. Recognized Holidays 11
Section 2. Qualifying Conditions 11
Section 3. Holiday on Saturday and Sunday 11
Section 4. Holidays During Vacations 11
Section 5. Pay for Work on a Holiday 12
Section 6. The Day Before New Year's 12


Article Page No. Description No. - - ----- ------------------------------------------------------ ------


IX VACATIONS 13


Section 1. Qualifying Period 13
Section 2. Vacations Not Accumulative 14
Section 3. Scheduling of Vacations 14
Section 4. Vacation Pay as Severance Pay 14
Section 5. Employees' Vacation Option 14


X SENIORITY 15


Section 1. Seniority Rules 15
Section 2. Loss of Seniority 15
Section 3. Notice of Layoff 16
Section 4. Leaves of Absence 16
Section 5. Information Furnished the Union 16
Section 6. Promotions Outside the Bargaining 16


XI UNION REPRESENTATIVE 17


Section 1. Union Representative 17


XII GRIEVANCE PROCEDURE 18


Section 1. Grievance Defined 18
Section 2. Grievance Procedure 18
Section 3. General Rules 19


XIII WORKING CONDITIONS 20


Section 1. Industrial Accidents 20
Section 2. Safety Rules 20
Section 3. Physical Examinations 21
Section 4. No Age Limit 21
Section 5. Safety Equipment 21


XIV MISCELLANEOUS SUBJECTS 22


Section 1. Assignability 22
Section 2. Saving Clause 22
Section 3. Outside Work 22


XV GROUP INSURANCE, HOSPITALIZATION, SURGICAL AND
MEDICAL PROGRAM 23


XVI PENSION PLAN 26


XVII MANAGEMENT FUNCTIONS 27


XVIII PLAN RELOCATION AND SEVERANCE PAY 28


XIX LEADMEN 29


XX DURATION OF AGREEMENT 30


Article Page No. Description No. - - ----- ------------------------------------------------------ ------


APPENDIX


A WAGES 31


Section 1. Classification and Rates of Pay 31
Section 2. Red Circle Classification 31


B JOB CLASSIFICATIONS 32


D SICK LEAVE PLAN SUPPLEMENTING U.C.D. OR WORKERS'
COMPENSATION INSURANCE 33


Section 1. General Purposes 33
Section 2. Eligibility and Duration of Benefits 33
Section 3. Eligibility and Duration of Sick Leave 34
Section 4. General Provisions 34


OFFICIAL MINUTES NUMBER ONE 36


OFFICIAL MINUTES NUMBER TWO 36


(20) ATTENDANCE INCENTIVE PROGRAM 37


This Agreement is between SIMPSON STRONG-TIE COMPANY INC. (BREA BRANCH) Party of the first part, hereinafter referred to as "the Employer" and the TOOL AND DIE CRAFTSMAN ASSOCIATION, party of the second part, hereinafter referred to as "the Union".


GENERAL PURPOSE OF AGREEMENT


The general purpose of this Agreement is to set forth the hours of work, rates of pay, and conditions to be observed by the Employer and the Union; and to provide orderly and harmonious procedures between the Employer and the Union and to secure a prompt and fair disposition of grievances. It is the further purpose of the Agreement to prevent interruption of work and to promote the efficient operation of the business. The Union subscribes to the principles of a fair days work for a fair days pay, and the Employer subscribes to the principle of a fair days pay for a fair days work.


WITNESSETH: It is hereby mutually agreed to as follows:


ARTICLE I - UNION RECOGNITION AND WORK JURISDICTION


Section 1.. Employees Covered


This agreement shall cover, and the Employer recognized the Union as the sole bargaining agent for the employees working within the trade claims of the Union as set forth in their constitution in effect on the effective date of this Agreement, and further for employees covered by N.L.R.B. Case Number NONE. Such employees are set forth below:


All Tool and Die Makers, Tool and Die Apprentices, Tool and Die Machinists, Machine Repairmen, Maintenance Helpers, and Machine Repair Apprentices, their Leadmen and/or Working Foremen employed by the Employer signatory to this Agreement.


Any dispute concerning the intent or application of N.L.R.B. certification in N.L.R.B. Case Number NONE shall be resolved solely through appropriate N.L.R.B. procedures.


Section 2. Employees Not Covered


All employees presently represented by Collective Bargaining Agreements with other Unions, Clerical and Office Employees, Professional personnel, Office Janitors, Engineering personnel, Technical Personnel, Foremen, Supervisors, Watchmen and Guards as defined in the National Labor Relations Act of 1947, as amended.


Note: Supervisors, Foremen, Engineering personnel and Technical personnel, who do not use the tools of the trade except in a supervisory capacity are specifically excluded from coverage of this Agreement. It is not intended that the exclusion of Supervisors or Foremen would apply to Leadmen and/or Working Foremen.


Section 3. Union Retains Jurisdiction


The Union and the Employer agree that during the life of this Agreement, they will not surrender jurisdiction over any of the employees covered by this Agreement to any other union.


ARTICLE II - UNION SECURITY


Section 1. Union Membership


All employees covered by this Agreement shall become and remain members of the Union as a condition of employment on one of the following dates, whichever is later:


The 31st calendar day following the beginning of their employment
The 31st calendar day following the effective date of signing this
Agreement


Section 2. Hiring of Employees


a. The Employer shall notify the Union of all job openings within the bargaining unit covered by this Agreement. The Union may refer applicants for such openings. In interviewing and hiring for such job openings, the Employer will not discriminate against any applicant referred by the Union.


The Employer will notify the Union office and the Ship Steward of the name, address, social security number, classification and date of hire within three (3) days from the date of hire.


b. In the application of SECTION 1. above, when the Employer is notified by the Union in writing that an employee has failed to make application and tender the Union initiation fee or reinstatement fee, or is not a member in good standing by failing to tender the Union dues, the Employer shall, within two (2) working days terminate such employee. Such employee shall not be re-employed by the Employer during the life of this Agreement unless the employee becomes a member in good standing in the Union as defined by Law.


Section 3. No Discrimination


There shall be no discrimination against any member of the Union by the Employer and/or against the Employer by the Union.


There shall be no discrimination against any employee or applicant for employment based on his race, color, creed, national origin or sex.


The Employer and the Union mutually reaffirm their continued compliance with the requirements, purpose and intent of applicable Executive Orders, Federal, State and other legislation pertaining to fair employment practices and non-discrimination in employment.


ARTICLE III - MANAGEMENT SECURITY


Section 1. No Strike - No Lockout


a. During the life of this agreement the Union will not cause a strike or production stoppage of any kind, nor will any employees take part in a strike, intentionally slow down in the rate of production, or in any manner cause interference with or stoppage of the Employer's work, provided the Employer follows the Grievance Procedure for which provision is made herein. Likewise, the Employer agrees that there shall be no lockouts during the life of this Agreement provided the Union follows the Grievance Procedure for which provision is made herein.


b. It shall not considered a violation of this Agreement if employees of an individual company fail to report for work by reason of a legitimate, authorized picket line established by another union which has a collective bargaining agreement with the company, or the Central Labor Council having jurisdiction.


In exception to the above, unions signatory to this Agreement shall not observe a picket line, placed for organizational purposes unless proof is submitted that the Union placing the picket line represents the major of people in the unit claimed.


Section 2. Employee Considered as Quit


In the event an employee or group of employees violates the provisions of this Article, he or they shall be deemed to have quit the employment. If such an employee or group of employees are re-employed by the Employer, any restoration or benefits shall be by mutual agreement with the Union.


ARTICLE IV - WAGES AND CLASSIFICATIONS


Section 1. Wages


Minimum wages for classifications of employees covered by this Agreement are set forth in Appendix A which is a part of this Agreement. Premium wage rates over and above the minimum wage rates may be paid by the Employer.


Section 2. Definition of Job Classifications


Definition for job classifications contained in the wage structure (Appendix B which is a part of this Agreement.


Section 3. New Work


In the event the Employer introduces new Machinery or equipment resulting in a new method or work process properly coming within the jurisdiction of the Union, which the Union believes has been improperly assigned, the Employer and the Union shall, upon written request, enter into negotiations as to the proper assignment of the work within the existing classifications covered by this Agreement. If no agreement is reached, the dispute shall be referred to Arbitration as provided in Step 4 of the Grievance Procedure. Pending final settlement, the new work shall continue to be performed in the classification established by the Employer.


Section 4. Deductions from Pay


There shall be no deductions from employees pay covered by this Agreement except as provided in this Agreement or as required and in the manner prescribed by law.


Section 5. Weekly Pay Periods


Except where otherwise agreed to between an individual Company and the Union, wages shall be paid as follows:


Employees shall be paid weekly. There shall be no unreasonable delay in the payment of wages on pay day.


When pad day falls on a recognized holiday, the day preceding the holiday shall be considered as pay day.


In companies where pay day is on Friday, employees on second or third shift shall be paid not later than the termination of their shift preceding the Friday day shift.


Section 6. No Reduction in Pay


No Person shall suffer a reduction in his hourly rate of pay because of the adoption of the adoption of this Agreement.


ARTICLE V - JURY PAY - FUNERAL LEAVE


Section 1. Jury Service


a. Employees who are called for jury service will be granted the necessary time off once per year for the scheduled work days you are required to serve in court.


b. You will be entitled to compensation at your straight time hourly rate for eight hours pay less compensation you are entitled to receive for jury service.


c. You will expected to present proof of service, including time served and amount of pay received.


d. First shift employees, who are excused from jury service prior to 12:00 noon, are expected to return to work for the balance of their shift. Second and third shift employees who are excused prior to 12:00 noon are expected to report for their full, regular shift.


e. This Article shall not apply in any case where an employee voluntarily seeks jury service.


Section 2. Funeral Leave


An employee will be given three (3) day's funeral leave with pay, at his regular hourly, straight time rate for death in his immediate family. Immediate family shall be spouse, children, mother, father, brother, sister, mother-in-law, father-in-law, adopted child or stepchild, and grandparents. This provision does not apply if the employee is on leave of absence or lay off.


ARTICLE VI - APPRENTICES


Section 1. Acceptance of Standards


All Tool and Die and Machine Repair Apprentices shall be governed by the Joint Apprenticeship Committee.


Section 2. Pay for Apprentices


Apprentices shall be paid not less than the following percentages of the Journeyman Tool and Die Makers or Machine Repairman wage rates:


1st 6 months - 40% 7th 6 months - 70%
2nd 6 months - 45% 8th 6 months - 75%
3rd 6 months - 50% 9th 6 months - 80%
4th 6 months - 55% 10th 6 months - 85%
5th 6 months - 60% 11th 6 months - 90%
6th 6 months - 65% 12th 6 months - 95%
Thereafter - Journeyman Rate


Section 3. Ratio And Rules There shall be ones (1) Apprentice for each approved shop employing three (3) or more Journeyman Tool and Die Makers or Machine Repairmen and additional apprentices shall be allowed upon application to the approval from the Joint apprenticeship Committee, provided, however, that the total ratio shall not exceed one (1) apprentice for each three (3) Journeyman Tool and Die Makers or Machine Repairmen.


In exception to the above, a plant is not currently training Apprentices shall not indenture an Apprentice as required above while there are Journeyman Tool and Die Makers or Machine Repairmen on layoff and subject to recall to their plant.


Section 4. Seniority for Apprentices


When an Apprentice has completed has completed his formal indentured training program, the Employer at whose plant he completed his training program, reserves the right to terminate the Apprentice or retain him as a Journeyman. The Employer will notify the Apprentice two (2) calendar weeks prior to the actual date of termination. If the Employer elects to retain the employee as a Journeyman, such employee shall carry the seniority he acquired as an Apprentice to his Journeyman classification.


If the apprentice is terminated and rehired within one (1) year, he will be given full seniority credit for his time worked as an apprentice at that company.


Section 5. Termination of Apprentices


Following the probationary period set forth in the Joint Apprenticeship Standards, no apprentice shall be laid off or be permitted to leave his employment without the approval of the Joint Apprenticeship Committee provided, however, that nothing in this section shall prevent an Employer from discharging an Apprentice for just cause other than for failure to comply with the Joint Apprenticeship Standards which are within the jurisdiction of the committee. Any discharge shall be reported immediately to the Joint Apprenticeship Committee. Should the Joint Apprenticeship Committee or the Union desire to appeal this discharge, it shall be appealed to Step 3 of Article XII, Grievance Procedure, within three (3) working days following the date the Secretary of the Joint Apprenticeship Committee receives the report of the discharge.


ARTICLE VII - HOURS AND SHIFTS


Section 1. Hours


a. Except as provided in Section 5, Call-In Pay, this Article defines the normal hours of work and shall not be construed as a guarantee of hours of work per day or per week, or of days of work per week.


b. Except as provided in Section 2, eight (8) hours continuous employment exclusive of a lunch period shall constitute a day's work, between the hours of seven (7) A.M. and three-thirty (3:30) P.M.; forty (40) hours shall constitute a week's work from seven (7) A.M. Monday to three-thirty (3:30) P.M. Friday. The number of employees who can start prior to the regularly established shift time and regular work week may be changed by the Employer provided the Union is given forty-eight (48) hours advanced notice of such change.


c. If you are unable to work for any reason, you are required to call in and advise the Company within thirty (30) minutes or earlier of your starting time of the reason and when you anticipate returning to work.


d. Employees who leave the Company premises on personal business are required to clock out and clock back in at all times.


Section 2. Shifts and Shift Differentials


a. First or regular day shift - A consecutive eight (8) hour period, between the hours of 7:00 A.M. and 3:30 P.M., exclusive of a lunch period on the employee's time.


b. Where two shifts are worked - The second shift shall start not later than thirty (30) minutes after the first shift terminates and shall consist of eight (8) consecutive hours of work, exclusive of a thirty (30) minute lunch period on the employee's time.


c. Employees assigned to a second or third shift operation shall be paid the second shift hourly rate for the time worked. (See Appendix A).


d. Employees on third shift shall receive eight (8) hours pay provided they work a full shift.


Section 3. Transfer to Another Shift


a. Employees transferred from one shift to another shall be given twenty- four (24) hours notice or shall be paid overtime for the first shift so worked. Change of shift shall not result in any loss of time to an employee, and when the employee is transferred from one shift to another with the requisite twenty-four (24) hours notice and where the transfer if or more than one shift, no overtime pay shall be required. When an employee is transferred from one shift to another for one shift only, he shall be compensated at overtime rate. In all cases of transfer, the employee affected shall have a minimum rest period of seven (7) hours between shifts.


b. Shop Stewards or Acting Shop Stewards shall not be transferred from the shift to which they are assigned while work which they are capable of performing is available.


Section 4. Overtime


All work performed by employees covered by this Agreement outside of the standard straight time hours of work and shifts as set forth in Section 1 and 2 of this Article shall be paid for at time and one-half (1-1/2) for the 9th and 10th hours worked, Monday through Friday, and the first eight (8) hours worked on Saturday. All other overtime shall be at doubletime (2).


a. When overtime is necessary, it is agreed that over a period of time, individual companies will distribute this overtime in a fair and equitable manner by work group and by shift.


b. Employees refusing such overtime opportunity, or absent on such day, will be credited the overtime offered to them for purposes of equalizing overtime distribution only.


c. If an employee is offered and accepts to work overtime, then the overtime will be considered a normal work day for attendance purposes only.


d. The Union recognizes that a certain amount of overtime is required in the Employer's operations due to production needs and customer demands. The Employer recognizes the right of individual employees to accept or refuse overtime work. It is agreed however, that the concerted refusal of a group of employees to work overtime would be a violation of Article III.


e. New employees shall not receive overtime work credit for purposes of equalization until completion of their probationary period and then they shall be given an overtime worked credit to equal to that of the highest credited employee of the work group on this shift.


f. The Employer shall make available upon request by the Shop Steward records of overtime hours worked in the previous month.


Section 5. Call-in and Call-back Pay


a. Any employee called and/or reporting for work at the beginning of his regular shift shall receive either four (4) hours pay at the applicable rate, provided he does not leave sooner of his own accord. Any employee who works more than four (4) hours on his regular shift shall receive either work or pay at the applicable rate for the balance of such shift, provided he does not leave sooner of his own accord.


b. On Saturdays, Sundays and Holidays, any employee called and reporting for work shall receive not less than four (4) hours of work or four (4) hours of pay at the applicable rate, provided he does not leave sooner of his own accord. If such employee works more than four (4) hours on such shift, he shall be paid for the actual hours worked by him in excess of four (4) hours at the applicable rate.


c. The above provisions for call-in pay shall not apply when work is not available by reason of acts of God, fire, flood or any cause beyond the control of the Employer.


d. An employee shall be deemed as requested to report on his regular shift unless notified by an authorized Employer Representative to the contrary at the close of the previous day's work, or by actual notice not later than twelve (12) hours before the beginning of his next regular shift. In the event an employee has been absent for an reason, this section shall not apply unless he has first contacted his supervisor and is notified when to report to work.


e. An employee who has left the Employer's premises and is called back to work by the Employer after the termination of his regular shift shall receive not less than four (4) hours or four (4) hours pay the overtime rate.


f. An employee shall not be required to stand by for a call back to work after the termination of his regular shift.


Section 6. Travel Time


All time taken up in traveling to and from outside work, not to exceed eight (8) hours per day, computed from 8:00 A.M. to 8:00 A.M., shall be paid for at straight time, plus actual and necessary expenses until destination is reached and the employees have returned to their places of regular employment. If employees are required to travel on overtime days, they shall be paid travel time at overtime rates. First class transportation shall be provided or allowed. In the case of air travel, custom coach shall be considered first class transportation and shall be provided or allowed. In the case of air travel, custom coach shall be considered first class transportation and shall be provided wherever it is available. Otherwise regularly scheduled air coach may be used. Air travel accident insurance shall be provided by the Employer.


In no event shall an employee be paid under this provision less than amount required by the applicable provisions or interpretations of the Fair Labor Standards Act as amended.


ARTICLE VIII - HOLIDAYS

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