Collective Bargaining Agreement

COLLECTIVE BARGAINING AGREEMENT


between


SWISS-AMERICAN SAUSAGE COMPANY INC.


and


UNITED FOOD AND COMMERCIAL WORKERS
LOCAL 101


208 Miller Avenue, South San Francisco, CA 94080
(415) 871-5730


[LOGO OF UFCW APPEARS HERE]


covering


APRIL 1, 1998 THROUGH MARCH 31, 2002


SWISS-AMERICAN SAUSAGE COMPANY INC.
APRIL 1, 1998 THROUGH MARCH 31, 2002
TABLE OF CONTENTS
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SECTION PAGE - ------- ---- 1. RECOGNITION/JURISDICTION.......................................... 1 2. UNION SECURITY.................................................... 4 3. EMPLOYMENT........................................................ 5 4. DISCHARGE......................................................... 6 5. HOURS............................................................. 7 6. OVERTIME.......................................................... 8 7. HOLIDAYS.......................................................... 9 8. VACATIONS......................................................... 10 9. LEAVES OF ABSENCE................................................. 12 10. WAGES............................................................. 14 11. SUPERANNUATED EMPLOYEES........................................... 15 12. HEALTH AND WELFARE................................................ 16 13. SICK LEAVE........................................................ 17 14. PENSIONS.......................................................... 19 15. JURY DUTY......................................................... 19 16. GENERAL BENEFITS.................................................. 20 17. SENIORITY......................................................... 20 18. GRIEVANCE AND ARBITRATION......................................... 22 19. UNION AFFAIRS..................................................... 24 20. WORKING CONDITIONS AND SAFETY..................................... 24 21. JOB SECURITY...................................................... 25 22. SEPARABILITY...................................................... 26 23. TRANSFER OF OWNERSHIP............................................. 26 24. SAVINGS CLAUSE.................................................... 26 25. DRIVERS........................................................... 27 26. NO STRIKE OR LOCKOUT.............................................. 27 27. EXTENSION AND SCOPE............................................... 27
LETTER OF UNDERSTANDING........................................... 29


COLLECTIVE BARGAINING AGREEMENT


between


SWISS-AMERICAN SAUSAGE COMPANY INC.


and


UFCW LOCAL 101


APRIL 1, 1998 through MARCH 31, 2002


THIS AGREEMENT is made and entered into by and between SWISS-AMERICAN SAUSAGE COMPANY, INC., located at 35 Williams Avenue, San Francisco, hereinafter referred to as the "Employer" or "Company" and UNITED FOOD AND COMMERCIAL WORKERS UNION LOCAL 101, AFL-CIO, CLC hereinafter referred to as the "Union".


WITNESSETH
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In order to establish working conditions which are fair and equitable to all Employers and employees, the parties hereto agree to the following:


The parties to this Agreement recognize the competitive nature of the industry and further agree that no employee will be required to work hours in excess of the working hours established in this Agreement.


SECTION 1. RECOGNITION, JURISDICTION
------------------------------------


1.1 Union Recognition. The Employer recognizes the Union as the exclusive
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bargaining agent for all employees employed in the classification set forth
in Section 10 working in the plant of the Employer located in the City of
San Francisco, County of San Mateo and San Joaquin County.


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1.2 Classification Definitions. It is understood and agreed that the
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following groups of employees shall be recognized as:


1.2.1 Sausage Makers. This group shall consist of Journeymen and/or
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Apprentices engaged in processing and manufacturing of specialty
sausage items, smoked, cooked and cured meats and meat food products
involving trimming and boning, grinding, formulating, and other
preparation, chopping and mixing, hanging, tying and linking, stuffing
casings, loaves and table work, cooking, smokehouse, steam cabinet,
curing and other work incidental to the above. The parties agree that
all sausage makers or apprentices promoted before August 1, 1998,
shall be grandfathered into this classification and shall be credited
towards the required number of production specialists.


1.2.2 Production Specialist. This group shall consist of a minimum of ten
----------------------
(10) Production Workers engaged primarily in processing and
manufacturing of specialty sausage items, smoked, cooked and cured
meats and meat food products involving trimming and boning, grinding,
formulating, and other preparation, chopping and mixing, hanging,
tying and linking, stuffing casings, loaves and table work, cooking,
smokehouse, steam cabinet, curing and other work incidental to the
above. Production Specialists shall have seniority as Production
Specialists, but shall also have Production Worker seniority and can
displaced a less senior Production Worker in the event a layoff as a
Production Specialist.


It is agreed and understood that the use of Production Worker as
herein described shall not result in the displacement of any current
employees from his/her current classification of work. It is further
agreed that, in the event of a reduction in workforce involving or
affecting the kitchen, employees in the Production Worker
classification shall be the first removed from the kitchen.


1.2.3 Maintenance Workers. Employees engaged primarily in the maintenance
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and repair of the Employer's equipment.


1.2.4 Sanitation Workers. Employees engaged primarily in the sanitation and
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cleaning of the work place.


1.2.5 Rotation Workers. Employees engaged primarily in the rotation of the
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Employers hanging products throughout the plant. Rotation Workers
shall have seniority as a Rotation Worker, but shall also have
Production Worker seniority and can displace a less senior Production
Worker in the event a layoff as a Rotation Worker.


1.2.6 Working Foreperson. A Working Foreperson shall not be disciplined by
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the Union or discriminated against in any way for exercising
discretionary duties on behalf of Management or effectively
recommending courses of action to


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Management.


1.2.7 Supervisors. Supervisors will not be a part of the bargaining unit,
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will not be required to join the Union, and will be permitted to
perform whatever work the Company assigns; provided however that the
number of supervisors shall be limited to a number equal to ten
percent (10%) of the number of bargaining unit employees.


1.2.8 Owner's Family Members. It is agreed and understood that officers and
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their immediate family may, is assigned to perform bargaining unit
work, become members of the Union on the same terms and conditions
membership is made available to all other bargaining unit employees
provided that the officer is stationed in the jurisdiction of this
agreement and these family members do not cause the displacement of
any current employee.


1.3 Performance of Bargaining Unit Work. The Employer agrees that only
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employees included in the bargaining unit shall perform any of the
work coming within the jurisdiction of this Agreement, provided
however; that non-bargaining unit work may perform bargaining unit
work where necessary for: emergencies beyond the control of the
Employer, work in the instruction or training of employees, and
testing materials in production.


1.4 Employees Status:
-----------------


1.4.1 Regular Employees. A Regular Employee is one who has completed the
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probationary period for all new employees in accordance with Section
18 hereof.


1.4.2 Extra Employees. Any employee hired to either relieve a regular
----------------
employee or to supplement the existing work force. Extra Employee
shall not be employed to displace Regular Employees. An Extra Employee
who works forty-five (45) work days for the same Employer within a
twelve (12) month period shall become a Regular Employee for the
purposes of benefit eligibility. Extra Employees may be scheduled less
than forty (40) hours per week. Regular Employees on layoff shall be
hired first. No Extra Employees will be hired when Regular Employees
in the same classification are on layoff.


It is agreed and understood that assignment of employees to work less
than forty (40) hours per week within the meaning of this provision,
shall not operate to replace any existing employees and, further, the
hiring of employees to work less than forty (40) hours per week shall
not be done for the purpose of permanently replacing full-time
positions. In the event of a reduction in force, those employees
regularly scheduled to work less than forty (40) hours per week shall
be laid off prior to the layoff of any Regular Employees.


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1.4.3 Probationary Employees. A Probationary Employee is one who has not yet
-----------------------
completed the required forty-five (45) work days of trial employment
with the current Employer, as specified in Section 18 (Seniority)
herein. New employees to the industry hired on or after April 1, 1988,
shall not be entitled to health and welfare contributions, holidays,
funeral leave, sick pay and jury duty pay during the probationary
period.


1.5 Management Rights. The Employer shall have the right to the general
------------------
management of all operations and the direction of the workforce,
including but not limited to, the right to hire, transfer, promote,
maintain discipline and efficiency, layoff, establish new processes or
use new equipment, establish schedules of production, and to extend,
limit or curtail its operations. Nothing in this Agreement shall be
construed, by any manner or means, to preclude the subcontracting of
work by the Company or to require the Company to perform work at this
Plant rather than elsewhere so long as the rights specified herein are
not exercised in a manner inconsistent with this Agreement.


SECTION 2. UNION SECURITY
-------------------------


2.1 Local Union Membership. Every person performing work covered by this
-----------------------
Agreement who is a member of the Union on the effective date of this
Section shall, as a condition of employment or continued employment,
remain a member of the Union. Every person employed to perform work
covered by this Agreement shall, as a condition of employment, be a
member of the Union, or shall, within a period of thirty-one (31) days
after the effective or execution date of this Agreement, whichever is
later, become a member of the Union.


2.2 Maintenance of Membership. The Employer shall discharge every person
--------------------------
who has failed to comply with the provision of Section 2.1 at the end
of the work day during which notice of such noncompliance is received.
The Employer further agrees not to again employ or re-employ any
person(s) so discharged until he or she is a member of the Union;
provided, however, in the event that the Labor Management Relations
Act, as amended, is applicable to this Agreement, the provisions of
this sentence of this Section 2.2 shall not be applied until a final
administrative or judicial decision has been rendered which would
permit its application under the Act.


2.3 Applicants for Membership. Membership in the Union shall be available
--------------------------
to person employed in work covered by this Agreement upon terms and
qualifications not more burdensome than those applicable generally to
other applicants for such membership.


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SECTION 3. EMPLOYMENT
---------------------


3.1 No Discrimination. The Employer shall have sole responsibility for the
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full freedom in the selection and employment and discharge of persons
employed or to be employed in work covered by this Agreement, subject
to the provisions of this Agreement; provided, that there shall be
no discrimination because of membership or non-membership in or
participation or non-participation in the activities of the Union. The
Employer will not discharge or discriminate against any employee
upholding lawful Union principles such as serving as an officer or
other representative of the Union, soliciting membership in the Union,
wearing Union buttons, distributing Union literature or attending
Union meetings provided that such activity does not interfere with his
or her work. The Employer will not discharge or discriminate against
any employee for failing or refusing to purchase stock, bonds,
securities, or any other interest in any corporation, partnership or
company.


3.2 Hiring Notification. An Employer who desires to employ a person in
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work covered under this Agreement shall inform the Union of the number
and qualifications of persons desired, the location of the job site,
in advance of the time that such persons are required.


3.3 Hiring Consideration. In the hiring of new employees, the Employer
---------------------
agrees that it will give equal consideration to all applicants,
including those referred by the Union. The Employer and the Union will
not discriminate compensation, terms or conditions of employment
because of such individual's race, color, religion, sex, age (to the
extent provided by law), or national origin; nor will they limit,
segregate or classify employees in any way to deprive any individual
employee of employment opportunities because of their race, color,
religion, sex, age (to the extent provided by law), or national
origin. Any reference to the male gender in this Contract shall be in
the generic sense and it shall refer equally to either sex without
discrimination, as provided above.


3.4 Union Notification. The Employer shall notify the Union within one (1)
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week of the name, address, Social Security Account Number and
classification of every such person employed in work covered by this
Agreement, together with the date of such employment and location of
the place or prospective place of employment. Whenever a person is
rejected for or discharged for such work, the Employer shall, upon
request of the Union, notify the Union of the reason or reasons
therefor. The notice required by this Section shall be made in writing
within forty-eight (48) hours after such request. Any employees hired
shall report to the Union within one (1) week after the date of
employment to fill out and sign applications, forms and papers for
health and welfare, dental and pension purposes.


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SECTION 4. DISCHARGE
--------------------


4.1 Prohibition Against Discharge. No employee covered by this Agreement
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shall be suspended, demoted or discharged without just and sufficient
cause. Discharge for failure to comply with Section 2.2 of this
Agreement shall be deemed a discharge for cause. Before an employee is
suspended for more than three (3) days or discharged, he or she shall
receive written warning of unsatisfactory conduct and a copy of such
notice shall be sent to the Union. Such written warning shall not be
effective for suspension actions for more than nine (9) months. The
employee receiving such warning shall be given reasonable opportunity
to rectify or change such conduct. The notice and warning required by
this section need not be given to employees disciplined for, but not
limited to any gross violation of reasonably acceptable conduct.


4.2 Notice From Insurance Carrier. When an insurance carrier notifies the
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Employer that the Firm's vehicle insurance is being cancelled because
of a driver's record of on-the-job driving on file with the California
Department of Motor Vehicles, that driver may be transferred to
another job, if available, where he or she shall have seniority as a
new employee or, if no job is available, he or she may be laid-off
pending the results of the grievance procedure.


4.3 Right of Appeal. Any employee claiming unjust dismissal, demotion or
----------------
suspension shall make his or her claim therefor to the Union within
ten (10) working days of such dismissal, demotion or suspension and
the Union will that day notify the Employer by telephone and confirm
in writing, otherwise, no action shall be taken by the Union. If,
after proper investigation by the Union and the Employer, it has been
found that an employee has been disciplined unjustly, he or she shall
be reinstated with full rights and shall be paid his or her wages for
the period he or she was suspended, demoted or dismissed.
Investigation of any claims shall be made within ten (10) days of the
making of such complaint by the employee. Any dispute arising out of
such suspension, demotion, or discharge shall be processed under
Section 19 (Grievance and Arbitration) of this Agreement.


4.4 Notification of Discharge. When an employee is discharged, the
--------------------------
Employer must give written notice to the employee, stating the reasons
for such discharge, and the Union shall receive a copy of said
notice. Upon written notification by the Union of an employee holding
a second job, the Employer will either terminate the employment of the
employee or require that he or she resign his or her second job. Where
an employee is holding a full-time second job, the Employer, five (5)
working days after written notice to the employee requesting he or she
resign his or her second job, may terminate him or her if he or she
does not do so.


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SECTION 5. HOURS
----------------


5.1 Hours of Operation. The hours of operation of the Employer's facility
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shall be as hereunder provided and shall apply to all employees of the
Employer covered herein. Hours worked in excess of eight (8) straight-
time hours in a day or in excess of forty (40) straight-time hours in
any week shall be paid at one and one-half (1 1/2) times the straight-
time rate.


5.2 Posting Requirement. All regular employees shall have their schedule
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posted by Friday noon for the following work week. It shall not be
changed except by reason of an Act of God or other reason beyond the
reasonable control of the Employer. The schedule shall show the full
name of the employee, the starting times and the days scheduled for
him or her during the following week in ink or typewritten.


5.3 Schedule of Shift. All first shift hours shall be regularly scheduled
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to commence no earlier than 5:00 a.m., and no later than 10:00 a.m.
The second shift hours shall commence on or after 10:00 a.m., and no
later than 5:00 p.m. The third shift hours shall commence on or after
5:00 p.m., and before 5:00 a.m. All work commenced on or after 10:00
a.m., but no later than 5:00 p.m., shall be paid for at the rate of
the second shift premium for all hours worked. All work commenced on
or after 5:00 p.m., and before 5:00 a.m., shall be paid at the third
shift premium for all hours worked.


5.4 Guaranteed Work Week. Regular Employees shall be guaranteed payment
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for and expected to work eight (8) hours each day, forty (40) hours
for each week subject to the addition of all premium and overtime
provisions, unless such work ceases to be available by reason of an
Act of God, or other reason beyond the control of the Employer.
Employees unable to work eight (8) hours a day, forty (40) hours a
week shall provide a reasonable explanation and verification of the
reason of absence where appropriate and in compliance with the
provisions of this Agreement.


5.5 Extra Employees Work Week. Extra Employees may be scheduled to work
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less than forty (40) hours per week. Extra Employees shall be
scheduled to work in accordance with their seniority. Extra Employees
scheduled to work less than forty (40) hours shall be scheduled as
work is available.


5.6 Regular Work Week. The regular work day shall consist of eight (8)
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hours within nine (9) hours, Monday through Friday, inclusive,
provided however, it is agreed and understood that the Employer may,
during the course of this Agreement, with seven (7) calendar days
notice to the Union, institute a Tuesday through Saturday work week.
This work week shall be comprised of a regular


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crew and established only for the purpose of expanding production
capability. This work week shall be offered on a voluntary basis to
existing employees and shall not be used to reduce existing Saturday
overtime opportunities.


5.7 Minimums. Five (5) days consisting of eight (8) working hours per day,
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forty (40) hours, Monday through Friday, inclusive, except as
otherwise herein provided, shall constitute a work week for all
eligible employees except that during a week in which a holiday falls,
the work week shall consist of thirty-two (32) hours. Employees called
to work will be provided with a minimum of eight (8) hours work or pay
in lieu of work, such pay to start from the hour the employee is
required to report for work, except in case of matters beyond the
control of the Employer. Employees doing security inspection or
quality control shall be guaranteed a minimum of one (1) hour work or
pay in lieu thereof.


5.8 Bid on Job Shifts. Employees shall have the right to bid on job shift
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assignments in the order of their seniority except that no employee
shall have this opportunity more often than once in every six-month
period, except when a shift is reestablished within the six (6)
months. It is understood that this privilege shall not result in chain
bumping. When a shift is discontinued, the senior employee shall have
the right to bid on the job classification in the existing shift.


5.9 Call Back. An employee called back to work within twelve (12) hours
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from the end of his or her shift shall be paid one and one-half
(1 1/2) his or her applicable rate for the hours worked prior to the
expiration of such hours.


5.10 Meal Periods. All employees shall receive one (1) full uninterrupted
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hour for a meal period or by mutual agreement between the employees,
the Employer and the Union one-half (1/2) hour, approximately in the
middle of the working day, and in no event shall an employee work more
than five (5) hours before any meal period. In agreeing on lunch
periods, the parties will consider the requirement set by the USDA for
meat inspectors.


5.11 Rest Periods. All employees shall receive two (2), fifteen (15) minute
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rest periods in an eight (8) hour day. Employees working beyond nine
(9) hours in a day shall receive an additio ...