Collective Bargaining Agreement

COLLECTIVE BARGAINING AGREEMENT


BETWEEN


GENEVA STEEL COMPANY


AND THE


UNITED STEELWORKERS OF AMERICA


MARCH 1, 1995 2


TABLE OF CONTENTS


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ARTICLE 1: APPLICATION OF AGREEMENT . . . . . . . . . . . . . . . . . 1 ARTICLE 2: RECOGNITION AND UNION MEMBERSHIP . . . . . . . . . . . . . 3 ARTICLE 3: RATES OF PAY . . . . . . . . . . . . . . . . . . . . . . . 4 ARTICLE 4: HOURS OF WORK AND OVERTIME . . . . . . . . . . . . . . . . 6 ARTICLE 5: HOLIDAYS . . . . . . . . . . . . . . . . . . . . . . . . . 11 ARTICLE 6: VACATIONS . . . . . . . . . . . . . . . . . . . . . . . . 13 ARTICLE 7: PRIOR USS SERVICE . . . . . . . . . . . . . . . . . . . . 15 ARTICLE 8: SENIORITY . . . . . . . . . . . . . . . . . . . . . . . . . 15 ARTICLE 9: PROBATIONARY PERIOD . . . . . . . . . . . . . . . . . . 23 ARTICLE 10: JURY AND WITNESS SERVICE . . . . . . . . . . . . . . . . 23 ARTICLE 11: BEREAVEMENT PAY . . . . . . . . . . . . . . . . . . . . . . 23 ARTICLE 12: MILITARY SERVICE . . . . . . . . . . . . . . . . . . . . . 24 ARTICLE 13: SAFETY AND HEALTH . . . . . . . . . . . . . . . . . . . . 25 ARTICLE 14: PENSIONS AND PROFIT SHARING . . . . . . . . . . . . . . . . 31 ARTICLE 15: INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . 32 ARTICLE 16: ADJUSTMENT OF GRIEVANCES . . . . . . . . . . . . . . . . 32 ARTICLE 17: DISCHARGE AND DISCIPLINE OF EMPLOYEES . . . . . . . . . . . 36 ARTICLE 18: PROHIBITION OF STRIKES OR LOCKOUTS . . . . . . . . . . . . 37 ARTICLE 19: MANAGEMENT RIGHT . . . . . . . . . . . . . . . . . . . . . 38 ARTICLE 20: SCOPE OF AGREEMENT . . . . . . . . . . . . . . . . . . . . 38 ARTICLE 21: LOCAL WORKING CONDITIONS, PAST
PRACTICES, WORK RULES AND PRIOR
AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . 39


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ARTICLE 22: SHORT WORK WEEK FUND . . . . . . . . . . . . . . . . . . 39 ARTICLE 23: MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . 40


APPENDICES


APPENDIX A: HOURLY WAGE SCALE . . . . . . . . . . . . . . . . . . . . 43 APPENDIX B: INSURANCE BENEFITS . . . . . . . . . . . . . . . . . . . . 44 APPENDIX C: COVERED SALARIED CLERICAL AND
TECHNICAL EMPLOYEES . . . . . . . . . . . . . . . . . . . . 47 APPENDIX D: PROFIT SHARING PLAN . . . . . . . . . . . . . . . . . . . 48 APPENDIX E: TURN COORDINATORS . . . . . . . . . . . . . . . . . . . . . 51 APPENDIX F: SUCCESSORSHIP LANGUAGE . . . . . . . . . . . . . . . . . 52 APPENDIX G: DRUG AND ALCOHOL TESTING . . . . . . . . . . . . . . . . . 53 APPENDIX H: PERFORMANCE DIVIDEND PLAN . . . . . . . . . . . . . . . . 60 APPENDIX I: 401(K) PLAN . . . . . . . . . . . . . . . . . . . . . . . . 69 APPENDIX J: VEBA TRUST . . . . . . . . . . . . . . . . . . . . . . . . 70 APPENDIX K: LETTER AGREEMENT - RIGHT TO MAKE OFFER
ON SALE OF FACILITIES . . . . . . . . . . . . . . . . . . . 71


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AGREEMENT


AGREEMENT dated March 1, 1995 between GENEVA STEEL (the "Company") and UNITED STEELWORKERS OF AMERICA, on behalf of Local Union 2701 hereinafter referred to as the "Union", providing for industrial relations at the Company's Geneva, Utah steel operations (the "Geneva Plant").


ARTICLE I


APPLICATION OF AGREEMENT


SECTION 1 - PURPOSE AND INTENT OF THE PARTIES.


A. Matters of Employment: It is the intent and purpose of the parties hereto to set forth herein the agreement between them in respect to rates of pay, hours of work, and other conditions of employment in the Geneva Plant.


B. Basis of Claims: The provisions of this Agreement constitute the sole procedure for the processing and settlement of any claim by an Employee (as defined below) or the Union of the violation by the Company of this Agreement. As the representative of the Employees, the Union may process grievances through the grievance procedure, including arbitration, in accordance with this Agreement, or adjust or settle the same.


C. Administration: The representatives of the Company and the Union shall continue to provide each other with such advance notice as is reasonable under the circumstances on all matters of importance in the administration of the terms of the Agreement, including changes or innovations affecting relations between the parties.


D. Nondiscrimination: It is and shall be the policy of the Company and the Union that the provisions of this Agreement shall be applied to all Employees and applicants without regard to race, color, religious creed, national origin, sex, age, disability, Veteran or special disabled Veteran status, or membership in the Union.


SECTION 2 - UNIT COVERAGE.


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A. Membership: The bargaining unit at the Geneva Plant, and the term "Employee(s)" as used herein, shall include all production, maintenance, pipe mill, quarry and certain salaried clerical and technical employees of the Company for whom the Union is currently certified by the National Labor Relations Board as the exclusive collective-bargaining representative, and shall exclude all executives, office employees, managers, division managers, area managers, foremen, shift managers, supervisors, draftsmen, timekeepers, watchmen and guards, full-time first-aid and safety employees, and all similar or other jobs not currently included in the bargaining unit. The term "Geneva Plant" shall not include the 40" blooming mill, and the structural mill which have been shut down.


B. Dispute of Coverage: Any difference which shall arise between the Company and the Union as to whether or not any individual Employee is or is not included within the bargaining unit shall be handled as a grievance in accordance with the procedures set forth in Article 16 hereof.


C. Contracting Out: The Company will not bring contractors into the Geneva Plant to perform work normally performed by Employees, unless the work requires special skills, special equipment or time considerations. This provision shall not be used to erode the work performed by the Employees.


D. Supervision: Supervisors at the plant shall not perform work on a job normally performed by an Employee; provided, however, this provision shall not be construed to prohibit supervisors from performing the following types of work:


1. Experimental work.


2. Demonstration work performed for the purpose of
instructing and training employees.


3. Work required of the supervisors by emergency
conditions which if not performed might result in
interference with operations, bodily injury, or loss
or damage to material or equipment; and


4. Work which under the circumstances then existing,
would be unreasonable to assign to an Employee.


Work which is incidental to supervisory duties on the job normally performed by a supervisor, even though similar to duties found in jobs in the bargaining unit, shall not be affected by this provision.


If a supervisor performs work in violation of this Subsection D. and the Employee


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who otherwise would have performed this work can reasonably be identified, the Company shall pay such Employee the applicable Regular Hourly Wage for the time involved or for four (4) hours, whichever is greater.


ARTICLE 2


RECOGNITION AND UNION MEMBERSHIP


SECTION 1 - EXCLUSIVE BARGAINING AGENT.


Subject to the provisions of the National Labor Relations Act, the Company recognizes the Union as the exclusive representative of all of the bargaining unit Employees for the purposes of collective bargaining with respect to rates of pay, hours of employment, or other conditions of employment.


SECTION 2 - UNION MEMBERSHIP AND CHECKOFF.


A. The Company will checkoff monthly dues, assessments and initiation fees each as designated by the International Treasurer of the Union, as initiation or membership dues in the Union, on the basis of individually signed voluntary checkoff authorization cards on forms agreed to by the Company and the Union.


B. At the time of employment, new Employees will be provided the opportunity to voluntarily execute an authorization for the checkoff of Union dues, as they may or may not elect, on the form agreed upon. A copy of such authorization card for the checkoff of Union dues shall be forwarded to the Financial Secretary of the Local Union along with the membership application of such employee.


C. New checkoff authorization cards other than those provided for by Paragraph B above will be submitted to the Company on summary lists through the Financial Secretary of the Local Union as executed by new employees.


D. Deductions on the basis of authorization cards submitted to the Company


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shall commence with respect to dues for the month in which the Company receives such authorization card or in which such card becomes effective, whichever is later. Dues for a given month shall be deducted from the first pay closed and calculated in the succeeding month.


E. In cases of earnings insufficient to cover deduction of dues, the dues shall be deducted from the next pay in which there are sufficient earnings, or a double deduction may be made from the first pay of the following month, provided, however, that the accumulation of dues shall be limited to two months. The International Treasurer of the Union shall be provided with a list of those employees for whom a double deduction has been made.


F. The Union will be notified of the reason for non-transmission of dues in case of layoff, discharge, resignation, leave of absence, sick leave, retirement, death, or insufficient earnings.


Unless the Company is otherwise notified, the only Union membership dues to be deducted for payment to the Union from the pay of the employee who has furnished an authorization shall be the monthly Union dues. The Company will deduct initiation fees when notified by notation on the lists referred to in Paragraph C of this Section, and assessments as designated by the International Treasurer.


G. The Company will implement the dues checkoff provisions of this collective bargaining agreement in accordance with the Constitution of the International Union pursuant to reasonable instructions to be supplied by the Union.


H. The Union shall indemnify and save the Company harmless against any and all claims, demands, suits or other forms of liability that shall arise out of or by reason of action taken or not taken by the Company for the purpose of complying with any of the provisions of this Section, or in reliance on any list, notice or assignment furnished under any of such provisions.


ARTICLE 3


RATES OF PAY


SECTION 1 - STANDARD HOURLY WAGE SCALE.


A. Wage Rates: The standard hourly wage scale rate for each job shall be as set forth in Appendix A of this Agreement and is recognized as the established regular


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rate of pay for all hours of work. As used in this Agreement, the term "Regular Hourly Wage" shall mean the regular hourly wage rates set forth in Appendix A, without adjustment for overtime, premiums or shift differentials.


B. Apprentice Training: At such time as all trade and craft job descriptions are agreed to and installed, a joint committee not to exceed four members, two each from the Company and the Union, shall be formed to develop an apprentice training program. The committee will be responsible for such things as composing the course curriculum, defining training periods, and coordinating with educational institutions. Apprentice vacancies will be posted at the step 3 level and awarded consistent with Article 8, Seniority.


C. Job Classifications: All jobs shall be described and classified by Management. The job description and classification for each job in effect shall continue in effect unless (1) Management changes the job content (requirements of the job as to the training, skill, responsibility, effort and working conditions) to the extent of one full job class or more; (2) the job is terminated or not occupied during a period of one year; or (3) the description and classification are changed by the mutual agreement of the officially designated representative of the Company and the Union. The Local Union Rate Committee will be involved in the development and implementation of all new job classifications and job descriptions. The Plant Union Committee and Management shall discuss and determine the accuracy of all job descriptions. The Union shall be responsible for the filing of grievances in a timely fashion (30 days).


SECTION 2 - SHIFT DIFFERENTIALS.


A. Wage Differential: For hours worked on the afternoon shift, there shall be paid a premium rate of $.18 per hour. For hours worked on the night shift, there shall be paid a premium rate of $.27 per hour.


B. Applicable Hours: For purposes of applying the aforesaid shift differentials, all hours worked by an Employee during the workday shall be considered as worked on the shift on which he is regularly scheduled to start work.


1. An employee regularly scheduled for the day or
afternoon shift who completes his regular eight-hour
turn and continues to work into the afternoon or
night shift in excess of four hours shall be paid the
afternoon or night shift differential (as the case
may be) for all hours worked in excess of four on
the afternoon shift.


2. An Employee regularly scheduled for the day or
afternoon


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shift who completes his regular eight-hour turn and
after leaving the Company's premises is called out
for the afternoon or night shift within the same
workday shall be paid the applicable shift
differential for the hours worked on the afternoon or
night shift (as the case may be).


3. Shift differential shall be paid for allowed time or
reporting time when the hours for which payment is
made would have called for a shift differential if
worked.


4. An Employee who is scheduled for a shift which
commences outside the starting times as described in
Paragraph C below shall be paid the shift
differential for those hours which are worked on the
afternoon shift at the afternoon shift differential
rate or the night shift at the night shift
differential rate (as the case may be).


C. Shifts: Shifts shall be identified in accordance with the
following:


1. Day Shift includes all turns regularly scheduled to
commence between 6:00 a.m. and 8:00 a.m., inclusive.


2. Afternoon Shift includes all turns regularly
scheduled to commence between 2:00 p.m. and 4:00
p.m., inclusive.


3. Night Shift includes all turns regularly scheduled to
commence between 10:00 p.m. and 12:00 midnight,
inclusive.


SECTION 3 - SUNDAY PREMIUM.


An Employee shall be paid a premium of 1 1/4 times his Regular Hourly Wage as defined in Paragraph 1A. above for all hours worked on Sunday which are not paid for on an overtime basis. For the purpose of this provision, Sunday shall be deemed to be the 24 hours beginning with the shift-changing hour nearest to 12:01 a.m. Sunday.


ARTICLE 4


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HOURS OF WORK AND OVERTIME


SECTION 1 - NORMAL HOURS OF WORK.


A. The normal workday shall be 8 hours of work in a 24-hour period. The hours of work shall be consecutive. The normal work pattern shall be 5 consecutive workdays beginning on the first day of any 7-consecutive-day period. The 7-consecutive-day period is a period of 168 consecutive hours and may begin on any day of the calendar week and extend into the next calendar week. On shift changes, the 168 consecutive hours may become 152 consecutive hours depending upon the change in the shift. A work pattern of less or more than 5 workdays in the 7-consecutive-day period shall not be considered as deviating from the normal work pattern provided the workdays are consecutive. The Company and the Union may agree to a regular work schedule which is not in accordance with this Paragraph 1A, however, any such schedule shall be deemed as normal hours of work.


B. Schedules: All employees shall be scheduled on the basis of the normal work pattern except where; (a) such schedules regularly would require the payment of overtime; (b) deviations from the normal work pattern are necessary because of breakdowns or other matters beyond the control of Management; or (c) schedules deviating from the normal work pattern are established by agreement between plant management and the grievance committee. Schedules showing employees' workdays shall be posted or otherwise made known to employees in accordance with prevailing practices but not later than Thursday of the week preceding the calendar week in which the schedule becomes effective unless otherwise provided by local agreement. Management will establish a procedure, where such does not already exist, affording any employee whose last scheduled turn ends prior to the posting of his schedule for the following week, an opportunity to obtain information relating to his next scheduled turn. This procedure will also be applicable with respect to employees returning from vacation. Schedules may be changed by Management at any time provided, however, that any changes made after Thursday of the week preceding the calendar week in which the changes are to be effective shall be explained at the earliest practicable time to the grievance committeeman of the employee affected; and provided further that, with respect to any such schedules, no changes shall be made after Thursday except for breakdowns or other matters beyond the control of Management. Should changes be made in schedules contrary to this paragraph so that an Employee is laid off and does not work on a day that he was scheduled to work, he shall be deemed to have reported for work on such day and shall be eligible for reporting allowance in accordance with the provisions of Section 5 of this Article 4.


C. Definition of Terms: The payroll week shall consist of 7 consecutive days beginning at 12:01 a.m. Sunday or at the turn-changing hour nearest to that time. The


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workday for the purposes of this Section is the 24-hour period beginning with the time the employee begins work, except that a tardy employee's workday shall begin at the time it would have begun had he not been tardy. The regular rate of pay shall mean the hourly rate which the employee would have received for the work had it been performed during nonovertime hours.


D. Guarantee of Hours: The above provisions of this Section shall not be construed as guaranteeing to any Employee any number of hours of work per day or per week. Employees shall not be guaranteed any number of hours of work except to the extent provided in Section 5 of this Article 4.


SECTION 2 - STARTING TIME.


The starting time of regular turns at the Geneva Plant shall be determined from time to time by Management, and Management shall make a positive effort to give notice of any change in any such starting time.


SECTION 3 - CONDITIONS UNDER WHICH OVERTIME RATES SHALL APPLY.


Overtime at the rate of one and one-half times the regular rate of pay shall be paid for in the following order:


A. Hours worked in excess of 8 hours in a workday except as provided in "E" below.


B. Hours worked in excess of 40 hours in a payroll week.


C. Hours worked on the sixth or seventh workday in a payroll week during which work was performed on 5 other workdays.


D. Hours worked on the sixth or seventh workday of a 7-consecutive-day period during which the first five days were worked, whether or not all of such days fall within the same payroll week, except when worked pursuant to schedules mutually agreed to as provided for in Subsection A; provided, however, that no overtime will be due under such circumstances unless the employee notifies his foreman of a claim for overtime within a period of one week after such sixth or seventh day is worked and provided further that on shift changes the 7-consecutive-day period of 168 consecutive hours may become 152


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consecutive hours depending upon the change in the shift. Payment of overtime rates shall not be duplicated for the same hours worked, but the higher of the applicable rates shall be used. Hours compensated for at overtime rates shall not be counted further for any purpose in determining overtime liability.


E. Employees may be provided with an opportunity to work a nontraditional schedule of four twelve-hour days on and four twelve-hour days off or four ten-hour days on and four ten-hour days off (or such other nontraditional schedule as the Company and Union may mutually agree to). In such cases, employees who are to be covered by such a schedule may request a vote to determine whether the schedule proposed by Management is to be implemented. Should two-thirds of employees vote to approve the schedule, it will be implemented, subject to thirty days written notice of cancellation by the Union. Nothing in this Section 3E. shall be construed as restricting Management's right at any time to replace these schedules with a schedule based on the normal work pattern.


The following rules shall apply to the payment of overtime, holiday and premium pay to Employees:


1. Overtime compensation at the rate of one and one-half
times the regular rate of the job worked shall be
paid for hours worked in excess of the agreed to
hours scheduled on any work day, but in any event
overtime shall be paid for hours worked over forty in
a payroll week.


2. Shift differential shall be paid based on the shift
where the majority of the hours were actually worked.


3. Funeral and jury/witness pay shall be paid according
to the hours of work scheduled on the eligible days.


4. An unworked Holiday that falls on one of the
Employee's regularly scheduled days shall generate
the equivalent number of hours of pay as was
scheduled on the Holiday. An unworked Holiday that
falls on an unscheduled day shall generate eight (8)
hours of pay at the Regular Hourly Wage Rate. All
hours actually worked on a Holiday shall be
compensated in accordance with Article 5, Section 2B
of the Agreement.


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5. Employees working a nontraditional schedule will not
be required to work more than sixteen (16) hours in a
24-hour period. To aid in this commitment, covered
employees will make every effort to cover vacancies
created by sickness or absenteeism.


6. Covered employees will be permitted to schedule their
vacations from days off to days off rather than on a
calendar week basis.


Except as expressly provided for above, all other rules and procedures relating to the payment of overtime, holiday and premium pay, as contained in this Agreement shall apply regardless of whether an Employee is working an eight (8) hour shift or more than eight (8) hours.


SECTION 4 - HOLIDAY LIABILITY.


Hours compensated at overtime rates shall not be counted further for any purpose in determining overtime liability under the same or any other provision of this Agreement; provided, however, that a holiday whether worked or not, shall be counted for purposes of computing overtime liability under this Article.


SECTION 5 - REPORTING PAY.


If an Employee shall be required by Management to report for regularly-scheduled or call-out work on any day and he shall report at the time and place he was required to report, he shall be paid a minimum of four (4) hours pay at the Regular Hourly Wage which would have been applicable had he worked such four (4) hours in the assignment for which he was required to report. If there is no work available on the job for which the Employee was scheduled or called out, the Employee shall be paid at such Regular Hourly Wage for which the Employee was scheduled or called out, provided such Employee shall accept other job assignments for which he is qualified or forfeit the reporting pay provided herein.


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