Collective Bargaining Agreement

BETWEEN


OFFICE AND DISTRIBUTION EMPLOYEES' UNION
LOCAL 99, U.N.I.T.E.


AND


LECHTERS, INC. (EMPLOYER)


*


MARCH 16, 1996 - MARCH 15, 1999 2
TABLE OF CONTENTS


PAGE
----


UNION RECOGNITION...................................................... 1


SCOPE OF AGREEMENT..................................................... 1


HIRING OF EMPLOYEES.................................................... 2


UNION SECURITY......................................................... 3


TRIAL PERIOD .......................................................... 3


MANAGEMENT RIGHTS...................................................... 3


TEMPORARY EMPLOYEES.................................................... 4


SENIORITY AND LAYOFFS.................................................. 4


JOB OPENINGS........................................................... 5


HOURS OF WORK.......................................................... 6


OVERTIME PAY........................................................... 6


PAYMENT ON APPEARANCE FOR WORK......................................... 7


GENERAL WAGE INCREASE.................................................. 8


CHANGE IN SHIFT TIMES.................................................. 8


MINIMUM WAGE........................................................... 9


HOLIDAYS............................................................... 9


VACATIONS.............................................................. 12


AUTHORITY TO ACT FOR UNION............................................. 13


NO-STRIKE PROVISION.................................................... 14


NO LOCK-OUT PROVISION.................................................. 14


ARBITRATION............................................................ 15 3 CHECK OFF OF DUES...................................................... 17


BENEFIT FUNDS.......................................................... 17


SEVERANCE FUND-TERMINATION OR DISMISSAL OF BENEFITS.................... 21


DISCHARGE OF EMPLOYEES................................................. 24


SHOP STEWARD AND COMMITTEE............................................. 24


RIGHT OF VISITATION.................................................... 25


STRIKES OF U.N.I.T.E. AFFILIATES....................................... 25


EXAMINATION OF RECORDS................................................. 26


PENALTY UPON FAILURE TO PAY DUES AND CONTRIBUTIONS..................... 26


PENALTY UPON FAILURE TO PAY DUES AND CONTRIBUTIONS..................... 26


PRE-TICKETING AND OTHER PROCESSING OPERATIONS.......................... 26


UNION RECOGNITION IN ADDITIONAL FACILITIES............................. 27


REMOVAL OF FACILITIES.................................................. 27


CONTRACTING OUT........................................................ 27


REORGANIZATION......................................................... 28


SURVIVAL OF LIABILITY.................................................. 28


CONTINUING OBLIGATIONS IN THE EVENT OF SALE OR TRANSFER................ 28


INVALIDITY OF PART OF AGREEMENT........................................ 29


NO DISCRIMINATION...................................................... 29


EXISTING BENEFITS...................................................... 30


JURY DUTY.............................................................. 30


TIME OFF FOR UNION MEETINGS............................................ 30


FIRE DRILLS............................................................ 30


ii 4 NO MODIFICATION OR WAIVER.............................................. 31


DURATION OF AGREEMENT.................................................. 31


iii 5
AGREEMENT made and entered into the 16th of March, 1996, effective as March 16, 1996 by and between LECHTERS, INC. (Employer), located at 1 Cape May Street, Harrison, NJ 07029, herein referred to as the "Employer," and LOCAL 99, U.N.I.T.E. (formerly known as Local 99, I.L.G.W.U.), herein referred to as the "Union."


W I T N E S S E T H:


WHEREAS, the parties hereto desire to regulate mutual relations between the Employer and the Union with a view toward securing harmonious cooperation between them and averting disputes; and


WHEREAS, the Union represents the overwhelming majority of the workers in the job functions hereinafter set forth employed by the Employer;


NOW, THEREFORE, in consideration of the mutual promises set forth, the parties hereto agree with each other as follows:


UNION RECOGNITION


1. The Employer recognizes the Union as the sole and exclusive bargaining agent and representative of the employees covered by this Agreement for the purposes of collective bargaining with respect to all matters affecting such employees.


SCOPE OF AGREEMENT


2. This contract shall apply to and cover warehouse and distribution workers employed in the following job functions in the warehouse and distribution center at One Cape May Street, Harrison, New Jersey and any other warehouse and distribution center within 100 miles from its present location in Harrison, New Jersey to which this Agreement shall apply as set forth in paragraphs 32 and 33 hereof:


Shipping Clerks, including sorters, receiving clerks, packers,
order pickers, including full case pickers, drivers, hi-lo
drivers, fork lift drivers, porters, all warehouse clericals,
stock clerks, supply department employees, hi-lift drivers,
janitors, lead persons, cycle counters, replenishers and other
employees performing the same or similar type work employed by
Lechters warehouse and excluding, however, supervisory
personnel. 6
The above titles are not intended to define job functions or limit the combinations and overlap of duties, but are only listed for the purpose of determining which employees are covered by this Agreement.


The Employer agrees to employ at least two (2) truck drivers who will perform switching of trailers and local delivery duties as assigned by the Employer.


a. Current employees covered under the Agreement and trained for use of PDT and RF guns shall receive a bonus as provided for in Exhibit C.


b. The Employer will provide to the Union, at least weekly, a list of temporary and lumper employees who worked with a daily recap. Lumpers will perform work only as provided for in Exhibit D. No lumper shall be used both as a Lumper and as a temporary employee in the same work day, or vice versa. Lumpers may not be used until all employees in the receiving department who have been involuntarily laid off shall have been rehired or given the opportunity to return to work unless there is insufficient time to give notice to such laid off employees so that they may return to work. Receiving department employees shall be exempt from plant-wide seniority with respect to layoffs while the Employer is participating in the "lumper" program. Layoffs within the receiving department shall be based on plant-wide seniority within the Department.


HIRING OF EMPLOYEES


3. a. The Employer shall have the sole and exclusive right to select and hire its employees. Within forty-eight (48) hours from the time of hiring an employee covered by this Agreement, the Employer shall send a written notice to the Union on an appropriate form supplied by the Union, stating name, address, salary, starting date and job function of such new employee. The Employer agrees to notify the Union of job openings. If a request is made before 11:00 A.M. the Union will use its best efforts to supply workers, if available, on or before the end of the following work day, without regard to their Union membership. The Employer shall be under no obligation to hire such referrals.


b. All new employees shall be required to take a pre-placement physical examination at U.N.I.T.E. Health Center without loss of pay. All covered workers who have been employed for one (1) year, shall be given time off at least once during each contract year of this Agreement, without loss of pay, for the purpose of undergoing a physical check-up examination at the Union Health Center. All such examinations shall take place at a time mutually agreed upon and pursuant


2 7 to procedures between the Union and the Employer.


c. All eligible covered workers shall be entitled to receive three and one-half (3 1/2) hours with pay, during each contract year, for dental facility visits authorized by the Union, with a minimum allowance of one (1) hour for each visit.


UNION SECURITY


4. To the extent permitted by law, good standing membership in the Union shall be a condition of employment for all employees covered by this Agreement on or after the 30th day following the beginning of such employment or the execution or the effective date of this Agreement, whichever is the later, but not before completion of the worker's trial period. For the purpose of this provision, a member of the Union shall be deemed to be in good standing only if his initiation fees and periodic fixed dues are not in arrears for more than thirty (30) days, and notice to that effect has been stated to the Employer by the Union.


TRIAL PERIOD


5. A trial period of sixty (60) calendar days is hereby fixed for new employees covered by this Agreement. During such trial period, the Employer may discharge such new employees without cause, without notice to the employees or to the Union and without the consent of the Union. Thereafter, the new employees shall not be subject to discharge except as provided in this Agreement. The trial period shall not be abused by the Employer and any claim of abuse shall be the subject of arbitration hereunder.


MANAGEMENT RIGHTS


6. Subject only to the provisions of this Agreement and applicable law, management of the Employer's operations and direction of its working force including, but not limited to the right to schedule and assign work to be performed; hire or rehire employees; promote; layoff or recall employees who are laid off; suspend; discipline or discharge for proper cause; and transfer employees because of lack of work or other legitimate reasons, shall be vested exclusively with the Employer.


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TEMPORARY EMPLOYEES


7. a. The Employer may employ temporary employees who shall not be required to become members of the Union. Such temporary employees may be used by the Employer only to compensate for an absent full-time employee on a one-for-one basis.


b. The Employer may supplement the normal work force with no more than ten (10) temporary employees per day between the months of February through May and with no more than fifteen (15) temporary employees between June through January.


c. No temporary employee may work for more than sixty (60) calendar days in any six (6) month period. Should any temporary employee remain in the Employer's employ for a period in excess of sixty (60) calendar days in any six (6) month period, then such employees shall thereafter be required to become a member of the Union.


d. The Employer shall maintain a daily log of temporary employees who shall sign in and out recording the time of the commencement and termination of work. The log shall set forth that it is for temporary employees.


e. Except for temporary employees employed under subsection a. above, before temporary employees are hired, all regular workers must be recalled from layoff before any regular employees can be laid off, all temporaries must be laid off.


f. A list of temporary employees will be provided to the Labor-Management Committee on a weekly basis. A list of all Union associates who are absent from work will be provided on a daily basis.


g. The Employer shall not abuse the within provisions for temporary help.


SENIORITY AND LAYOFFS


8. a. All rehirings and layoffs shall be done in accordance with seniority, i.e. the last employee hired shall be the first employee laid off, and the last employee laid off shall be the first employee rehired. Layoffs and rehirings shall not be on a departmental basis, except where the employee in question is


4 9 unable to perform the required work. Regardless of seniority rights of part-time employees, they shall be the first to be laid off and the last to be rehired, except where a full-time employee is unable or unwilling to perform the required work and except where the part-time employees were formerly full-time employees. For workers employed less than one (1) year, notice of layoff shall be made available by the Employer during the day of such layoff. Workers employed for one (1) year or longer shall receive notice of layoff at least five (5) working days prior to such layoff or such workers shall be paid for said period in lieu of said notice. Part-timers shall be informed of layoff provisions at the time they are hired. Employees on layoff should advise the Personnel Department where they can be reached while on layoff or absent.


b. Leaves of absence in case of sickness, pregnancy, jury duty or Union business shall be granted for reasonable periods. Other leaves of absence for personal needs may be requested and shall not unreasonably be withheld. At least five (5) days leave of absence with pay shall be granted in case of death in a worker's immediate family which includes spouse, parent and grandparent, child and grandchild, sister and brother. At least two (2) days leave of absence with pay shall be granted in case of death of a worker's father-in-law or mother-in-law; two (2) days leave of absence with pay shall be granted to a covered male worker in connection with the birth of his child. Proof of such occurrences may be required.


c. For the purpose of adjusting any inequities, the Employer or the Union may request a review of a worker's continuing status of employment when an extended layoff period or an extended leave of absence exists.


JOB OPENINGS


9. Vacancies on classified jobs or other jobs in the plant shall be posted for no less than three (3) working days. Bidding shall be in writing and awarded to the most senior qualified employee. An employee may apply for a new opening only once in any twelve (12) consecutive month period.


The Employer will reassign associates from position to position based on seniority, provided the most junior person has the qualifications and skills to perform the temporary assignment.


5 10
HOURS OF WORK


10. a. The days of work shall be from Monday to Friday inclusive, and the hours of work from 8:00 A.M. to 4:15 P.M. daily, inclusive of one-half (1/2) hour for lunch. The Union shall not unreasonably withhold its consent to vary the start of the work day. Current starting time and lunch hour arrangements heretofore agreed between the Union and the Employer may be continued.


b. The Employer shall provide a time clock. All workers shall punch time cards before and after work periods.


OVERTIME PAY


11. Employees shall be paid at the rate of time and one-half for overtime after seven and three quarters (7 3/4) hours in a day and for all work performed in excess of thirty-eight and three quarters (38 3/4) hours per week. Overtime at the rate of time and one-half shall be paid for work performed before and after regularly scheduled hours.


a. When overtime is needed, employees shall be notified as far in advance as possible in order to allow them to make necessary preparations for working overtime and such notice shall be given no later than the employees' scheduled lunch break if overtime work that day is needed.


b. The Union agrees that it will, through its shop committee, cooperate in having employees perform overtime work when it is requested.


c. The Company will request volunteers from among the employees who are capable and qualified to perform the overtime work involved. When such overtime work is necessary and there are insufficient volunteers, the employee in the department with the least seniority shall be the first to be required to work. If requested to work overtime, the employee will be required to do so during the peak season between September 1 and December 31, unless he or she has a reasonable excuse for being unable to work. Overtime during the non-peak season shall be voluntary except in the case of an emergency.


d. Overtime will be allocated as equally as possible among employees consistent with Section (b). The overtime records shall be available for inspection at the request of the Union.


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e. Where there has been a reduction in working force in a department, no overtime shall be permitted in such department until all employees in that department who have been involuntarily laid off shall have been rehired or given the opportunity to return to work unless there is insufficient time to give notice to such laid off employees so that they may return to work.


f. The Company agrees that all disputes under this Article shall be subject to the grievance and arbitration procedures of the Agreement.


g. Except as hereinafter provided, during the entire period of this Agreement, Saturday work shall be paid at the rate of time and one-half and Sunday and legal holiday work at the rate of double time.


h. A worker who is required to work more than three (3) hours of overtime in any one day shall receive twenty (20) minutes time for supper, shall be paid for such time and, in addition, shall receive supper money of three ($3.00) dollars.


PAYMENT ON APPEARANCE FOR WORK


12. a. An employee called into work and who reports to work shall receive one full day's employment or one day's pay for such day. If an employee is called in on Saturday, Sunday and/or holiday, he shall receive at least a minimum of five (5) hours work or a minimum of five (5) hours pay at the applicable overtime rates.


b. The Employer shall post notice on its phone call-in system no less than ninety (90) minutes before an employee shift start time advising employees that the facility is closed and they should not appear for work. Employees shall use reasonable efforts, when conditions indicate that the facility may be closed, to call in. In the event notice fails, despite reasonable efforts by the employee, an employee appearing at the facility for work when the facility is closed shall be paid four (4) hours pay. In the event employees are told to leave before the conclusion of their shift because of such conditions, shall receive a full day's pay. Employees may continue to choose to use personal or accrued vacation time to receive payment for any day in which the facility is closed and they would not otherwise receive payment.


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GENERAL WAGE INCREASE


13. a. Employees in the bargaining unit will receive wage adjustments as follows (pro-rata for part-time employees):


- March 16, 1996 $15.00/week
- March 16, 1997 8.00/week
- September 16, 1997 7.00/week
- March 16, 1998 8.00/week
- September 16, 1998 7.00/week


b. Workers shall hereafter be paid their wages in cash not later than three (3) working days after the end of the work week, except by special arrangement with the Union. Payment of wages by check may be made upon mutual Agreement of the parties.


c. In the event of a rise in the cost of living the Union may, at any time during this Agreement, request an upward revision of wages for workers covered under this Agreement. In the event of disagreement between the parties, the matter shall be adjusted in the same manner as any other dispute under this Agreement.


CHANGE IN SHIFT TIMES


14. A change in permanent shift times shall occur on April 29, 1996 as follows:


- 7:00 a.m. to 3:15 p.m. Mezzanine and Replenishers


- 8:00 a.m. to 4:15 p.m. All other employees, however, the Employer may reassign twenty-five (25%) percent of the work force in shipping and twenty-five (25%) percent of full case for the 7:00 a.m. shift. In making such assignment, the Employer will first use volunteers and, if insufficient volunteers are obtained, the Employer will reassign employees based upon reverse shop seniority, with the least senior employee being reassigned. The Employer will provide to the Union a list identifying those employees who are in the Replenishing Department.


With respect to any shift commencing on or after 2:00 p.m., shift differentials shall be amended to provide that employees hired after the effective date of this Agreement shall receive a differential of fifty ($.50) cents per hour.


8 13 Current employees shall receive a differential of one dollar and fifty ($1.50) cents per hour (in lieu of the twenty (20%) percent differential provided for in the old agreement). The Company shall first offer current employees the right to change to fifty (50%) percent of the available positions on the other shift before hiring new employees.


MINIMUM WAGE


15. a. Employees covered by this Agreement shall receive, at the time of hiring, the minimum wage or salary provided by state law, which is now not less than $5.05 dollars per hour.


b. Each new employee regardless of his starting weekly wage, shall receive not less than a seven ($7.00) dollar increase in his weekly wage after the completion of his temporary or trial period. The seven ($7.00) dollar increase shall be retroactively paid to the 31st day of employment.


c. The Union reserves the right to request an upward adjustment of the wages prescribed herein to become effective at any time on or after March 16, 1996. In case of a dispute, the matter shall be referred to the Impartial Chairman for his determination in the same manner as any other dispute under this Agreement.


d. If, during the term of this Agreement, a new applicable minimum wage law is enacted and/or becomes effective which increases the present applicable minimum hourly rate of pay, then the minimum weekly wage set forth herein shall automatically be adjusted as required and the minimum wage hereunder shall be at no time less than fifteen (15%) percent per hour above such newly established applicable minimum wage.


HOLIDAYS


16.a. During the term of this Agreement all workers covered hereunder shall be entitled to receive a full day's pay for each of the following legal or religious holidays; each shall be observed, regardless of the day of the week in which each occurs:


9 14
New Year's Day
Martin Luther King Day
Washington's Birthday
Good Friday
Memorial Day
July 4th
Labor Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve (December 24th)
Christmas Day (December 25th)


All covered workers must work the scheduled day before the holiday and the scheduled day after the holiday in order to receive holiday pay; unless excused for bona-fide reasons. In addition to the above, all covered workers shall be entitled to receive four (4) additional guaranteed holidays to be designated by each worker during the calendar year, making a total of fifteen (15) guaranteed holidays. The personal days shall be scheduled subject to management approval based on reasonable staffing requirements, which approval will not be unreasonably withheld. The employee will be guaranteed such personal day during the year.


In the event a substantial number of the Employer's workers selects a common date, the Employer may adopt such date as an additional guaranteed holiday and close its business entirely on such date, which shall be binding on all employees. A worker employed after January 1st shall not have the right to select such additional holiday to occur within six (6) months from the start of his employment. However, such worker shall be entitled to holiday pay in the event of a complete shut down by the Employer as indicated above in lieu of the selected date.


b. If work is performed on a regular work day or a Saturday and a legal holiday is celebrated on such day, employees shall receive one day's holiday pay plus double time for the number of hours worked. If work is performed on a Sunday which is a legal holiday and it is celebrated on the following Monday, employees shall receive double time for the number of hours worked. If work is performed on a Monday, which is the day of celebration of a legal holiday which fell on the preceding Sunday, employees shall receive one full day's pay plus double time for the number of hours worked.


10 15
c. If a legal holiday falls on Saturday, the Employer may substitute therefore the preceding Friday or the following Monday in lieu of the legal holiday upon reasonable notice.


The date of observance of any of the foregoing holidays shall conform to applicable Federal policy regardless of the location of the Employer's offices, warehouses and/or its facilities.


An employee absent without just cause on the scheduled work day immediately preceding a holiday or the scheduled work day immediately succeeding a holiday shall not be entitled to receive holiday pay.


At the request of the Union, May 1st shall be designated as a holiday but without pay to the covered employees.


It is not intended that employees receive more than one day's holiday pay for any one holiday ...