Collective Bargaining Agreement

between


AUTO-AIR COMPOSITES, INC.
OF LANSING, MICHIGAN


and


LODGE NO. 2184
INTERNATIONAL ASSOCIATION
OF MACHINISTS


March 15, 1995 3
INDEX ARTICLE TITLE PAGE - -------------------------------------------------------------------------------
Preamble . . . . . . . . . . . . . . . . . . . 1
Equal Employment Opportunity . . . . . . . . . 1


Management Rights . . . . . . . . . . . . . . 1


I Appropriate Bargaining Unit . . . . . . . . . 2


II Recognition and Union Shop . . . . . . . . . . 2


III Coverage . . . . . . . . . . . . . . . . . . . 4


IV Check-Off . . . . . . . . . . . . . . . . . . 4


V Representative . . . . . . . . . . . . . . . . 5


VI Grievance Procedure . . . . . . . . . . . . . 7
Policy Grievances . . . . . . . . . . . . . . 8


VII Seniority . . . . . . . . . . . . . . . . . . 9
Job Bid Procedure . . . . . . . . . . . . . . 12
Training Procedure . . . . . . . . . . . . . . 14
Shift Preference . . . . . . . . . . . . . . . 16
Part Time, Temporary and Student Employees . . 16


VIII Leaves of Absence . . . . . . . . . . . . . . 17


IX Work Day, Work Week, Overtime Pay and
Shift Premium . . . . . . . . . . . . . . . 19


X Reporting Time and Call Back Time . . . . . . 22


XI Paid Holidays . . . . . . . . . . . . . . . . 23


XII Group Insurance, Hospital and Welfare Plan . . 24


XIII Classification and Minimum Rates of Pay . . . 27


XIV Vacations . . . . . . . . . . . . . . . . . . 28


XV Safety and Sanitation . . . . . . . . . . . . 30


XVI Funeral Leave . . . . . . . . . . . . . . . . 31


4
INDEX ARTICLE TITLE PAGE - ------------------------------------------------------------------------------- XVII General Provisions . . . . . . . . . . . . . . 32


XVIII Leadman and Leadwoman . . . . . . . . . . . . 35


XIX Alteration of Agreement . . . . . . . . . . . 35


XX Obligation for Continuation of Service . . . . 36


XXI Employment Pension Plan . . . . . . . . . . . 36


XXII Profit Sharing Plan . . . . . . . . . . . . . 38


XXIII Cost of Living Allowance . . . . . . . . . . . 40


Classification and Rates of Pay . . . . . . . 42
Exhibit "B" . . . . . . . . . . . . . . . . . 46
Progression Rates of Pay . . . . . . . . . . . 47
Merit Progression . . . . . . . . . . . . . . 47


XXIV Duration and Term of Agreement . . . . . . . . 50


Letters of Understanding . . . . . . . . . . . 51


Attachment #1 . . . . . . . . . . . . . . . . 54


Exhibit "C" . . . . . . . . . . . . . . . . . 56
5
AGREEMENT
PREAMBLE


This Agreement made and entered into this 15th day of March, 1995. By and between the AUTO-AIR COMPOSITES, INC., OF LANSING, MICHIGAN, hereinafter referred to as the "Company" and Lodge No. 2184 of the INTERNATIONAL ASSOCIATION OF MACHINISTS, AFL-CIO, hereinafter referred to as the "Union".


The purpose and intent of the Agreement is to promote harmonious industrial labor relations between the Company and the Union, in all matters pertaining to wages, hours, rates of pay, working conditions and other conditions of employment and the handling and adjustment of grievances.


EQUAL EMPLOYMENT OPPORTUNITY


The Company shall provide equal employment opportunity without regard to race, color, religion, sex, national origin, height, weight, handicap unrelated to employment, or marital status. Equal employment opportunities shall relate to all phases of employment, including, but not limited to, recruitment, hiring, placement, promotion, demotion or transfer, layoff, recall, discipline and discharge, rates of pay benefits, selection for training, and use of facilities. Affirmative action shall be taken to ensure the fulfillment of equal employment opportunity, consistent with the requirements and objectives set forth by Presidential Executive Order 11246, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Equal Pay Act of 1963, the Vocational Rehabilitation Act of 1973, the Elliot-Larsen Civil Rights Act, and the Michigan Handicappers, Civil Rights Act.


MANAGEMENT RIGHTS


Subject to the terms and provisions of this Agreement the Company reserves and retains all rights to manage and operate the Company's operations and business affairs.


The Company hereby retains and reserves onto itself, all powers, rights, duties, and responsibilities conferred upon and vested in it the laws and the constitutions of the State of Michigan and of the United States.


The Company hereby agrees that in exercising any of the above rights it will not violate this Agreement and/or any addendum that may attach thereto.


-1- 6
ARTICLE I


APPROPRIATE BARGAINING UNIT


1.1


The appropriate unit for the purpose of collective bargaining under the Agreement shall be "all full time, and part-time, production and maintenance employees of the Company, but excluding office clerical employees, plant executives, engineering department employees, students employed a maximum of fifteen (15) hours per week or less, supervisors, foremen and guards as defined in the Act". The Company shall not employ more than three (3) such students and shall not allow them to work overtime and they shall be laid off before any bargaining unit employees are laid off.


Moreover, the students' rate of pay shall not exceed the minimum rate as provided in Exhibit A of this Agreement and their work will be confined to non-production areas.


1.2


The Company will bargain collectively with the Union in respect to wages, hours, rates of pay and all other conditions pertaining to employment for all the employees in the appropriate unit hereinafter set forth.


1.3


The bargaining unit described above, shall include among others, all employees engaged in the making, assembling, erecting, dismantling and repairing of all machinery, tools, fixtures and equipment and/or parts thereof, of all descriptions by the Company, on or off its premises.


ARTICLE II


RECOGNITION AND UNION SHOP


2.1


The Company recognized the Union as the sole and exclusive bargaining representative of all the employees in the "appropriate unit" described above for the purpose of collective bargaining under the terms and conditions of this Agreement.


2.2


All present employees covered by this Agreement who are members of the Union on the effective date of this Agreement shall remain members in good standing as a condition of continued employment; and, all present employees covered by this


-2- 7 Agreement who are not members of the Union on the effective date of this Agreement and all employees who are hired hereafter shall become and remain members of the Union in good standing as a condition of continued employment on the sixtieth (60) day worked following the beginning of their employment, or on the sixtieth (60) day worked following the effective date of this Agreement, whichever the case may be. Membership in the Union for the purpose of the above provision is defined to mean the payment of the Union initiation fee, reinstatement fee if applicable, and periodic membership dues uniformly required of all members.


2.3


The Company will, within five (5) working days, after receipt of notice from the Union, discharge any employee who is not in good standing in the Union, as required by the preceding paragraph.


2.4


When new employees are hired, the Company shall furnish the Union, within five (5) days the name of the new employees, the starting rate of pay, classification and shift on which the new employee will work and the job to be performed by the new employee.


2.5


The Union shall indemnify and save the Employer harmless against any and all claims, demands, suits, costs or other forms of liability of any kind or nature that may arise out of or by reason of action by the Employer taken for purposes of complying with this or any other Article related to Union security, expressly excluding, however, any damages, suits, or other forms of liability which are the proximate result of the Employer's own negligence and/or fault.


In consideration for this "save harmless" and/or indemnification clause, the Company agrees that the Union shall maintain the exclusive right to defend, settle, mitigate damages, litigate and/or take whatever action is necessary or it deems proper with respect to a person who sues the Company under the National Labor Relations Act through attorneys of its own choosing and at its own discretion, but, in any event, if the Company unilaterally determines that it desires attorneys to represent it in defense of such actions, it shall do so at its own cost and not at the cost of the Union. It is further agreed that the Company shall promptly notify the Union of any such action when and if filed and the Union shall, at its own option, defend such actions and/or settle under the circumstances above described.


-3- 8
ARTICLE III


COVERAGE


3.1


The provision of this Agreement shall be binding upon the Company and its successors and assigns and all of the terms and obligations herein contained shall not be affected or changed in any respect by the consolidation, merger, sale, transfer or assignment of the Company of any, or all, of its property, or affected or changed in any respect by any change in the legal status, ownership or management of the Company.


3.2


This Agreement shall cover all future plants which the Company may operate during the terms of this Agreement or any extension thereof, including all plants operated as the result of expansion or change.


ARTICLE IV


CHECK-OFF


4.1


At the time of hire the Company will have the employees sign check-off forms and applications for membership in the Union, and be given a copy of the current labor Agreement. Upon receipt of the signed authorization card of the employee involved, the Company shall deduct from the employee's paycheck, on the first day after receipt of such authorization, the established Union initiation fee and/or a reinstatement fee, and thereafter on the first regular payday in each month, the regular established current monthly dues and assessments payable by the employee to the Union, during the period provided for in said authorization. The sums thus deducted shall be remitted to the Financial Secretary-Treasurer of the Union not later than the fifteenth (15) of the month in which such dues were deducted. The Company will furnish the Financial Secretary-Treasurer of the Union monthly with an alphabetical record of those employees for whom deductions have been made and the amounts of the deductions.


4.2


If any such employee shall have insufficient earnings or no earnings during the stipulated pay period when the regular deduction would otherwise be made, then a make-up deduction shall be made on the next succeeding pay period in which the employee shall have earned fifty (50) percent or more of his/her normal weekly wage.


-4- 9
ARTICLE V REPRESENTATIVE


5.1


The Union shall be represented in the following manner:


(a) A Bargaining Committee person or persons, as provided in Article VI,
shall represent employees on all shifts, except that if no Committee
person is working on a second or third shift, a Steward shall represent
those employees.


(b) Bargaining Committee composed of five (5) employees, one (1) of whom
shall be designated as chairman.


(c) International Representatives.


5.2


It is understood that Stewards and Committeemen have a job of work to do, therefore, except of time spent on legitimate Union business concerning this Agreement, it is expected they will perform their regular work. This shall not be construed to deny employees Union representation at any time.


(a) When leaving their department for the purpose of discussing or handling
grievances or other Union matters, Union Representatives and other
employees will first notify their respective immediate supervisor or
another supervisor or the Plant Manager, if the foregoing are
immediately available. Upon entering another area, they will also
notify (when immediately available) the immediate supervisor of the
area they are entering.


It shall be the responsibility of the person leaving his or her
department pursuant to this Article to advise the supervisor of the
general nature of the Union business involved, if known. This, however,
shall not require the disclosure of the complete or specific details. A
person who is engaged in a "Hot Job" that requires their continued
attention shall attempt to conclude the job. However, this shall not
apply in the event of urgent Union business, such as meetings and phone
calls to and from the International Representative, nor shall it be the
rule, but rather the exception. The term "Hot Job" as used hereinabove
shall be defined as a critical job of work necessitating continued
performance in order to meet an emergency time schedule.


(b) Union Representatives and any employees who leave their departments for
Union Business shall punch out on a Union Business Time Card while
attending to Union Business and shall punch in upon returning to their
job.


-5- 10 (c) It is agreed that nothing contained in this Article will operate to
interfere with the rights of Union Representatives to legitimately
represent its members.


(d) All representatives and aggrieved employees will be paid their
applicable rate of pay for all time spent resolving grievances or
attending any meetings relating to the administration or enforcement of
this Contract.


5.3


A Committeeperson shall handle grievances at step one (1), except that in the absence of a Committeeperson on a second or third shift, a Steward shall handle grievances at step one (1). The Bargaining Committee shall handle grievances at steps two (2), three (3) and four (4) of the grievance procedure provided for in Article VI, and any other special meetings which may be called by the Company or the Union for the purpose of discussing those compelling urgent matters effecting either party. In such cases, the parties agree to meet, if possible, within one (1) hour after the time either party calls such a meeting. If, however, such meeting cannot be held in the above prescribed time, then the meeting will be held as soon as possible but in no event exceed two (2) regular scheduled work days.


5.4


All information pertaining to Union employees for the purpose of collective bargaining or handling of grievances shall be made available to the Union Representative requesting such information immediately or as soon as possible after request is made.


5.5


The Union will give the Company a list of Stewards and Committeemen kept currently up to date.


5.6


The Company agrees that any accredited Representatives of the Union have the right to communication and/or enter the premises of the plant during working hours for the purpose of representation and consultation concerning this Agreement upon presenting themselves at the office, or with prior notice. Phone calls to the appropriate on duty employee(s) will be expedited.


-6- 11
ARTICLE VI


GRIEVANCE PROCEDURE


6.1


Should disputes or grievances arise between the Company and the Union or between the Company and any employee covered by this Agreement, concerning the affect, interpretation, application, claim or breach or violation of any of the provisions of this Agreement, or should any other dispute arise hereunder, negotiations for the settlement of the dispute or grievances shall be held in accordance with the following grievance procedure:


Step 1: The dispute or grievance shall be taken up verbally between the
employee involved and his/her Union Representative and the immediate
supervisor within ten (10) working days after the occurrence of the
event upon which it is based or the employee has knowledge thereof. If
a satisfactory settlement is not reached within one (1) working day at
this step, then the dispute or grievance shall be reduced to writing,
on a grievance form, over the signature of the aggrieved employee and
shall then be submitted to the supervisor. The supervisor shall answer
in writing within four (4) working days from receipt of the written
grievance and shall return the grievance to the Union Committee.


Step 2: If a satisfactory agreement is not reached in Step #1, the Union
Committee may within five (5) working days from receipt of the
supervisor's answer submit the grievance to the Personnel Director for
settlement. A meeting shall be held within three (3) working days
following the submission of the grievance to this step of the
procedure. If a satisfactory settlement is not reached at this Step #2
meeting, then the grievance may be referred to Step #3 below.


Step 3: The Committee shall call in its outside representatives of the Union,
who shall meet with the authorized representatives of the Company and
the committee to effect a satisfactory settlement of the dispute or
grievance within twenty (20) working days.


Step 4: In the event the grievance is not satisfactorily settled in the third
step, the Union may within the next thirty (30) regular scheduled
working days submit the matter to arbitration by the American
Arbitration Association in accordance with its voluntary Labor
Arbitration rules, then obtaining, or the matter shall be deemed to be
resolved. The Arbitrator shall have no authority to add to, subtract
from, change or modify any provisions of the Agreement or any
supplement thereto between the parties. The decision of the Arbitrator
shall be final and binding upon both parties. Nothing contained herein
shall be construed to limit the authority of the


-7- 12
Arbitrator in his/her own judgment, to sustain, revise or modify any
alleged unjust discharge or discipline that may reach this stage of
grievance procedure. At the request of either party the Arbitrator,
under appropriate circumstances to be determined by the Arbitrator,
shall retain jurisdiction over his/her Arbitration Award. The expenses
and fees of the American Arbitration Association shall be shared
equally by the parties hereto. The expenses and fees of the Arbitrator
shall be paid by the party failing to obtain the remedy sought. In the
event neither party shall obtain the remedy sought, then the expenses
and fees of the Arbitrator shall be shared equally.


6.2


Grievance Time Limits. The time limits at any step of the grievance procedure may be extended by mutual agreement in writing and signed by both parties. In the event the Union does not appeal a grievance from one step to another within the time limits specified in the various steps, the grievance shall be considered as having been withdrawn without precedent. In the event a grievance is not heard and/or answered by the Company within the stipulated time limits established for same, the Union shall give the Personnel Director and the applicable Plant Manager written notice that such time limit has not been met. The Company shall have one (1) work day from receipt of this written notice to hear and/or answer the grievance. If such hearing and/or answer is not provided within this period, the grievance shall be considered granted, except if such failure is due to reasons proven beyond the control of the Company.


POLICY GRIEVANCES


A policy grievance filed on behalf of or affecting three (3) or more employees or the entire plant by the Union Shop Committee shall be referred directly to the second step of the grievance procedure.


The Company agrees not to discharge or discipline any employee without sufficient and just cause. If an employee is discharged, the Company shall state the cause for discharge in writing to the employee, and shall also notify the Chairman of the Committee and furnish him with a copy of the reason for discharge. The discharged employee shall, if he so requests, be granted an interview with the Chairman of the Committee before leaving the Plant, and the employee shall have five (5) days excluding Saturdays, Sundays and listed holidays within which to request a hearing or file an appeal on this case. The Company shall grant such hearing within seventy-two (72) hours. If a satisfactory settlement is not reached at such hearing, then the matter shall proceed to step three (3) of the grievance procedure as outlined-in paragraph 6.1.


-8- 13
ARTICLE VII


SENIORITY


7.1


(a) Seniority. Seniority is defined as total continuous length of employment with the Company and shall be determined from the last date of hire, and shall be applied as set forth in this Agreement. Seniority used herein is further defined as the relationship between the employees in the bargaining unit, and to protect and secure an employee's rights in relation to the rights of other employees. Plant wide seniority in the unit shall prevail and the principal of seniority shall govern and control all cases of promotion within the unit, transfers, shift preference, preferred vacation periods, filling of vacancies or newly created jobs and the decrease in the work force, providing the senior employee can perform the available work in the average or normal manner after a fair and reasonable trial period with assistance and instruction.


(b) When there is a reduction in the work force, senior employees may volunteer to accept a layoff pursuant to the following rules: 1) A notice shall be posted on the shop bulletin board indicating the estimated number of voluntary layoff positions available and the expected duration thereof. 2) From among those employees responding to the notice the most senior of such employees, subject to retention of necessary skills, shall be laid off. 3) At the end of the layoff period, such employee(s) may elect (subject to necessary skill requirements) to remain on layoff status if need be or exercise their seniority by returning to their respective classification, seniority permitting, if not, then to a different classification. 4) After the process referred to in 3) immediately above is completed, additional voluntary layoffs may be offered following the same procedure, and so on.


(c) Entering Skilled Classifications. To enter any skilled classification as defined in subparagraph 7.8(h) by bumping on layoff or recall from layoff, an employee must pass the applicable test referred to in subparagraph 7.8(h). After passing the test such employee shall be subject to the trial period as provided under subparagraph 7.8(9).


(d) Retention/Training. A junior employee involved in a work force reduction who has started a job or program or has been working on that job for a minimum of three (3) weeks, may be retained for an additional two (2) weeks to either complete the job or train for an adequate replacement.


(e) Notice. Except for reasons beyond the Company's control, the Company shall give five (5) working days notice to the Committee of all layoffs. The Company shall give as much advance notice as possible to the Committee of all recalls, transfers and rate changes.


(f) In recalling voluntarily laid-off employees back to work from layoff, or those employees back to their classifications from transfer as the result of layoff or lack of


-9- 14 work as provided under paragraph 13.3, the more senior of such employee(s) may elect (subject to necessary skill requirements) to waive recall back to work or back to their classification, and thus remain on layoff or remain in the classification to which transferred whichever the case may be. Employees on voluntary layoffs must return to work or to their respective classifications, whichever the case may be, when all less senior employees have returned and a further recall need arises.


(g) Except for employees on voluntary layoffs, recalled employees or employees temporarily transferred due to layoffs must return to work from layoff or to their respective classification when recalled. The recalled employee shall have five (5) work days in which to report for work following layoff after having received notification from the Company. If such laid-off employee fails to report within this period, the employee shall lose all rights of seniority, unless the employee is temporarily incapacitated, preventing the employee from responding, in which case the employee shall be recalled to work as soon as the employee's health will permit.


(h) Rate. An employee transferred to a job classification under this article shall be paid in accordance with paragraph 13.3 temporary transfer rate of pay, or the rate level achieved in the classification by prior on the job experience (provided such experience occurred within the last twenty-four (24) ...