Collective Bargaining Agreement

1997 - 2003


AGREEMENT BETWEEN


DIAMOND
BRANDS
INCORPORATED
CLOQUET, MINNESOTA


AND


MATCHMAKERS LOCAL
NO. 970
UNITED PAPERWORKERS
INTERNATIONAL UNION
AFL-CIO


TABLE OF CONTENTS


ARTICLE 1 -- AGREEMENT 1


ARTICLE 2 -- NONDISCRIMINATION 1


ARTICLE 3 -- RECOGNITION AND UNION SECURITY 1


ARTICLE 4 -- CHECK-OFF 2


ARTICLE 5 -- HOURLY RATE INCREASES 3


ARTICLE 6 -- HOURS OF WORK AND OVERTIME PREMIUMS 4


ARTICLE 7 -- HOLIDAYS 7


ARTICLE 8 -- NEW JOBS AND JOB BULLETINING 8


ARTICLE 9 -- JOB TRANSFERS 12


ARTICLE 10 -- JOB PERFORMANCE REVIEW 13


ARTICLE 11 -- JOB SIGN-OFF 13


ARTICLE 12 -- TIME OFF FOR UNION ACTIVITY 13


ARTICLE 13 -- ABSENCE AND SENIORITY 14


ARTICLE 14 -- LAYOFFS AND REHIRING 17


ARTICLE 15 -- LONG SERVICE EMPLOYEES 17


ARTICLE 16 -- PAYDAYS 18


ARTICLE 17 -- ADJUSTMENT OF COMPLAINTS 18


ARTICLE 18 -- ARBITRATION 19


ARTICLE 19 -- NO STRIKE - NO LOCKOUT 20


ARTICLE 20 -- BULLETIN BOARDS 20


ARTICLE 21 -- REPORT AND CALL IN TIME 20


ARTICLE 22 -- EMPLOYMENT STABILIZATION 21


ARTICLE 23 -- SERVICES OF COMMITTEE MEMBERS 21


ARTICLE 24 -- PAID VACATION 21


ARTICLE 25 -- PENSION 24


ARTICLE 26 -- SUPERVISORS WORKING 24


ARTICLE 27 -- SAFETY 25


ARTICLE 28 -- CONTRAVENTION OF LAW 26


ARTICLE 29 -- TOOL ALLOWANCE 26


ARTICLE 30 -- CLOTHING ALLOWANCE 27


ARTICLE 31 -- SCOPE OF AGREEMENT 27


ARTICLE 32 -- REQUEST FOR MEETINGS 27


ARTICLE 33 -- UNION - MANAGEMENT COOPERATION 27


ARTICLE 34 -- SHIFT PREMIUM PAY 27


ARTICLE 35 -- COMMITMENT AND COOPERATION TASK FORCE 27


ARTICLE 36 -- CONTRACT PERIOD 29


EMPLOYEES JOB CLASSIFICATION AND WAGE RATES 30


GROUP INSURANCE BENEFITS ACTIVE EMPLOYEES AND ELIGIBLE DEPENDENTS 33


COMPANY CONTRIBUTION TO GROUP HEALTH INSURANCE PLAN PREMIUM 34


GENERAL RULES 35


ATTENDANCE 36


PERSONAL BUSINESS 37


SEXUAL HARASSMENT POLICY 38


LETTERS OF AGREEMENT AND OTHER INFORMATION 38


ARTICLE 1 -- AGREEMENT


This AGREEMENT made and entered into between DIAMOND BRANDS INCORPORATED hereinafter referred to as the Company, and the MATCHMAKERS' LOCAL 970, UNITED PAPERWORKERS INTERNATIONAL UNION AFL-CIO, hereinafter referred to as the Union, for the employees of the Cloquet Plant of the Company other than those covered by an agreement with the International Union of Operating Engineers, Local #36, covering Power House employees. This Agreement can be changed or amended only by mutual consent of the parties hereto. The term "Employees" as used in this Agreement shall not include Foreperson, Assistant Foreperson, or Supervisors (as defined in the Labor Relations Act of 1947, whether paid on a salary or hourly basis) or any salaried employee.


In the event of a strike or work stoppage, plant protection employees will carry on their usual duties at the plant without interference.


ARTICLE 2 -- NONDISCRIMINATION


The Company and the Union agree to abide by all of the applicable state and federal laws regarding discrimination against any employee, and to cooperate with each other in this regard. Masculine nouns and pronouns, when used in this Agreement are not meant to connotate sex, but rather are used to refer, without discrimination, to both male and female employees.


ARTICLE 3 -- RECOGNITION AND UNION SECURITY


The Company recognizes the Union as the sole bargaining agency on wages, hours and working conditions for all employees in its Cloquet, Minnesota plant, not excluded by Article 1 of this Agreement.


There shall be no solicitation of membership on the Company's time.


All employees who are members of the Union in good standing on the date of signature of this contract, shall as a condition of employment remain members of the Union in good standing; and all new employees shall as a condition of employment become and remain members of the Union after they have completed their probationary period of forty-five (45) active working days. These provisions shall take effect on the date of signature of this contract, but only to the extent that they may take effect in accordance and consist with provisions of Federal and State laws and shall not be construed to operate contrary to the National Labor-Management Act of 1947.


The Union shall promptly furnish to the Company a notarized list of members now in good


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standing. If any employee named on that list asserts that he or she is not a member and any dispute arises, the assertion or dispute shall be adjudicated by an Arbitration Board appointed in accordance with the provision of Article 18 of this Agreement, whose decision shall be final and binding upon the Union and the employees.


Should any Union member fail to be in good standing, and face suspension for any reason permitted by law, he or she shall be given not less than seven (7) calendar days advance notice thereof in writing (stating the suspension date) by the Union which shall also send a copy of such notice to the Company. If the member's good standing is not re-established, and such member is suspended, both the member and the Company will be notified to the effect in writing by the Union. His or her employment shall be terminated by the Company not later than seven (7) calendar days thereafter.


The Union agrees that neither it nor any of its officers or members will intimidate or coerce employees into membership in the Union. If any dispute arises (as to whether there has been any violation of the pledge or whether any employee affected by this clause has been deprived of good standing in any way contrary to the constitution and by-laws of the Union), the dispute shall be regarded as a grievance and submitted to the provision of Article 18 of this Agreement.


Each new employee will be given a copy of this Agreement by the Company at the time of their hiring. A copy will likewise be given to all present employees. The effective rates of pay for the respective jobs shall be set forth in a schedule and attached to the printed form of this contract.


ARTICLE 4 -- CHECK-OFF


For the convenience of its' employees in paying regular monthly Union dues, Union initiation fees, if any, and such assessments as may be generally levied, the Company will accept and honor requests made by the individual employees in the following form:


CHECK-OFF AUTHORIZATION


Paperworkers International Union from any wages earned or to be earned by me, the amount of my monthly membership dues in said Union. I authorize and direct my employer to deduct such amounts from my pay each month and to remit the same to the order of the Financial Secretary of my Local Union in accordance with the terms of this Agreement.


This assignment, authorization and direction shall be irrevocable for a period of one year from the effective date of the Agreement, or until the termination date of said Agreement, whichever occurs


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sooner; and I further agree and direct that this assignment, authorization and direction shall be automatically renewed and shall be irrevocable for successive periods of one year each, or for the period of each succeeding applicable collective bargaining agreement with the Union whichever shall be shorter, unless written notice is given by me to the Company and the Union not more than thirty (30) days or less than ten (10) days prior to the expiration of each period of one year or of each applicable collective bargaining Agreement, whichever occurs sooner.


Date: _______________ Signature of Employee: _____________________


Name (Print):_________________ UPIU Local No.:_____________________


Address:______________________ City and State:_____________________


Social Security No.:_______________________________________________


Employed by:__________________ Department:_________________________


The Union will give notice in writing to the Company of the person officially designated by the Union to whom such regular monthly Union dues, Union initiation fees, and assessments deducted from employees earned wages shall be transmitted. The Union agrees that transmission such dues, initiation fees, and assessments, to such person shall fully discharge the liability of the Company to the Union and to the individual employee in respect to such dues, initiation fees and assessments.


The Union agrees that the Company shall deduct from the wages of an employee the amount designated by the Union as regular monthly Union dues and, where required, the amount indicated in writing by the Financial Secretary of the Local Union as the proper amount for the Union initiation fee and assessments.


ARTICLE 5 -- HOURLY RATE INCREASES


Basic hourly rates in effect immediately prior to these dates shall be increased by the indicated percentage figure as of these dates for all employees covered by this Agreement:


5-1-97 Two and nine-tenths percent (2.90%)
5-1-98 Two and nine-tenths percent (2.90%)
5-1-99 Two and nine-tenths percent (2.90%)


The parties shall negotiate for a "gain sharing" plan to take effect on May 1, 2000. If agreement is reached by that date, basic hourly rates in effect immediately prior to these dates shall be increased by the indicated percentage figure and by the "gain sharing" amount, if any, as of these dates for all


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employees covered by this Agreement:


5-1-2000 Two and nine-tenths percent (2.90%)
plus whatever the "gain sharing" formula
yields, if anything


5-1-2001 Two and nine-tenths percent (2.90%)
plus whatever the "gain sharing" formula
yields, if anything
5-1-2002 Two and nine-tenths percent (2.90%)
plus whatever the "gain sharing" formula
yields, if anything


If agreement is not reached by May 1, 2000, basic hourly rates in effect immediately prior to these dates shall be increased by the indicated percentage figure as of these dates for all employees covered by this Agreement:


5-1-2000 Three and four-tenths percent (3.40%)
5-1-2001 Three and four-tenths percent (3.40%)
5-1-2002 Three and four-tenths percent (3.40%)


Each party shall nominate five (5) persons to sit on the "gain sharing" bargaining committee. Each party shall have the right to strike up to two (2) nominees from the other party's list.


The hourly rates as so increased shall remain in effect for the life of this Agreement. Inexperienced help may be hired at five (5) cents under the minimum rate for a period not to exceed forty-five (45) days of active work.


ARTICLE 6 -- HOURS OF WORK AND OVERTIME PREMIUMS


Eight (8) hours shall constitute a normal day's work and forty (40) hours shall constitute a normal week's work. Overtime at the rate of time and one-half shall be paid for time worked in excess of eight (8) consecutive hours, or in excess of eight (8) hours in any calendar day, or forty hours a week, whichever will result in the greater overtime payment, but there shall be no use of the same hours twice in the calculation of overtime.


For all hours worked in excess of twelve (12) consecutive hours the employee shall be paid at the rate of double time.


Except as otherwise mutually agreed, the normal work week shall begin on Monday.


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The payroll schedule begins at 11:00 p.m., Sunday night and ends at 11:00 p.m. the following Sunday night.


An employee shall not be required to take time off during his or her regular assigned work week to avoid payment of overtime.


The Company agrees to a sign-up procedure for overtime purposes. A daily sign-up sheet will be available for a sufficient time period in order that employees on all shifts have an opportunity to sign-up for overtime. Employees may sign up for all three daily weekend overtime shifts but will be scheduled to work only one shift per day. Overtime will be distributed in the following manner:


A. Unscheduled Overtime


1. Senior qualified employees on the sign-up sheet.


2. Employees on the job will be forced to work, this includes
employees reassigned during the shift.


B. Scheduled Overtime (Scheduled overtime is defined as overtime posted
on the weekly staffing list according to designated machine crew and
shift).


Any employee so scheduled and desires not to work will inform their foreperson which days they do not want to work. The Company will attempt to fill the request in the following manner:


1. Senior qualified employees on the unscheduled overtime sheet.
2. Any qualified employee wishing to work.
3. Employee scheduled as such will work.


In the event an employee indicates on the overtime sign-up sheet that he/she is available for less than a full shift and the position available requires an eight (8) hour shift be worked, that employee will not be considered to fill that position.


C. Weekends


All overtime work to be performed on a Saturday and/or Sunday shall be
according to the following procedure:


1. The Saturday and/or Sunday schedule shall be posted on the Wednesday
which is ten (10) days prior to the affected Saturday and/or Sunday.


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2. By 7:00 p.m. on the second full day (Friday) after the schedule is
posted, the scheduled employees may request release from the schedule by
signing a release sheet. By the same deadline other employees may sign up
to work the Saturday and/or Sunday by signing a weekend overtime sheet.


3. After that 7:00 p.m. deadline, any vacant shifts on the schedule shall
be filled by the unscheduled overtime procedure, using the weekend overtime
sheet.


4. On the Monday before the involved Saturday and/or Sunday the final
Saturday-Sunday schedule shall be posted.


5. Any employee requesting to be relieved of work after the final
schedule is posted on Monday shall notify his or her supervisor. The
supervisor shall fill the opening using the weekend overtime sheet. If no
qualified employee is on the weekend overtime sheet, the employee shall be
responsible for finding a qualified replacement on his or her own time. If
no replacement is found, the employee's request to be relieved shall be
denied and the employee shall work as scheduled.


6. In cases of emergencies which require a change to the final schedule,
the unscheduled overtime procedure shall be followed, using the weekend
overtime sheet.


Any employee who volunteers for overtime will receive the rate of the job worked for which they volunteer. All overtime work to be performed on a holiday will be according to the unscheduled overtime procedure.


If all employees in a maintenance craft who want to work are assigned to work weekend overtime, and additional employees are needed, the senior Employees who have signed the overtime sign up sheets and who are qualified for general work rather than specific tasks, will be scheduled for the overtime.


In the event an employee who would be forced to work a weekend overtime shift, signs up for another shift on the same day, the forced shift will take precedence and cancel the Employee's preference for the shift for which the Employee has signed.


If a majority of a crew which is working weekend overtime elects to work a different open shift on the same day, the crew decision will take precedence over the right of an employee on that crew to sign up for another shift.


All work performed on Sundays shall be paid at the rate of time and one-half.


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Employees are allowed two (2) fifteen (15) minute breaks per shift. A five minute bathroom relief break will be allowed. However, employees will replace each other at their work stations and the equipment will remain in operation.


In the event of a start-up of equipment or a call-in where no relief is present, the supervisor shall first attempt to fill the shift with an employee listed on the overtime sheet. In the event no qualified employee signed the overtime sheet, the least senior qualified employee in the involved department shall be forced to work.


Each Tuesday the Company shall update a rolling notice showing anticipated production for the next four (4) weeks.


If an employee is to work less than four (4) hours beyond the employee's regular eight (8) hour shift, the employee will be granted a five (5) minute break around the time of shift change. If an employee is to work four (4) or more hours beyond the employee's regular eight (8) hour shift, the employee will be granted a fifteen (15) minute break between the 7th and 9th consecutive hours.


Except for emergencies, employees shall not be interrupted while on break.


In the event maintenance personnel are scheduled on an ongoing project, that employee shall continue to work on that project on overtime if it would be impracticable to assign the project to another employee without or beyond a minimum amount of training.


ARTICLE 7 --HOLIDAYS


In order that employees may, so far as possible, not lose a day's pay, eight (8) hours at the employee's "Regular Rate" will be paid as a Holiday Bonus for the following eleven (11) named holidays if not worked; New Year's Eve Day, New Year's Day, Good Friday, Memorial Day, July 4th, Labor Day, Thanksgiving Day, day after Thanksgiving Day, December 24th, Christmas Day, and a floating holiday subject to the following conditions:


1. For employees on a normal five (5) day production schedule, if the
holiday falls on Sunday and it is celebrated on another day, such other
day will be considered as the holiday for all purposes.


2. For employees on a seven (7) day production schedule, a Sunday holiday
and it is celebrated on that Sunday.


3. An employee may schedule his or her floating holiday by giving notice
to the Company prior to the posting of the affected schedule, unless an
emergency


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forces a shorter notice. Floating holidays shall be scheduled on a
first come, first served basis. No more than two (2) floating holidays
(not in the same job classification or department) per day shall be
scheduled, unless circumstances permit otherwise. In the event of a
conflict between an employee's vacation and another employee's
floating holiday, the vacation shall take precedence. Any unused
floating holidays shall be paid at the end of the calendar year.


4. Regular rate specified above shall be the regular rate of the job the
employee would have been working on if the day had been worked,
excluding overtime, but including shift bonus.


5. If the active employee does not work or leaves early from his or her
last scheduled shift before the holiday, or does not work or is late
for his or her first scheduled shift after the holiday, he or she
shall lose one (1) and only one (1) day's holiday pay. The Manager of
Human Resources shall excuse (for holiday pay purposes) any such
absence, early departure, or tardiness for extenuating circumstances,
documented in writing if possible by the employee or supervisor. A
paid vacation day shall be construed as a day worked for purposes of
the holiday pay rule in this subsection five (5). An employee who has
been on layoff must perform some work in the 15 work days immediately
prior to the holiday in order to qualify for holiday pay.


6. The employee has established seniority status as provided in Article
13, Paragraph 2.


7. The Company will qualify for holiday pay employees absent from work by
reason of a disability caused by either illness or accident during the
first 30 work days of absence.


8. If a vacation is extended into the preceding or following week because
of a holiday, such day(s) in the preceding or following week will be
considered as day(s) worked for purposes of computing weekly overtime
provided the first scheduled work day thereafter is worked.


If one of the above named paid holidays (or day celebrated as such) is worked, the employee will be paid at time and one-half his or her regular rate for all hours actually worked on the calendar day of the holiday or the day celebrated as such, plus the holiday bonus of eight (8) hours pay as above provided. In lieu of the holiday bonus, maintenance employees who work a holiday may choose a day off with eight (8) hours pay at the regular rate. The exact day off shall be set by mutual agreement between the maintenance employee and his or her supervisor within two (2) weeks prior to the holiday. If the day to be taken off is in the succeeding calendar year it shall be paid at the regular rate in advance at the end of the calendar year in which the holiday occurred.


If one of the named holidays falls within an employee's vacation in such manner that it would have


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been paid for if not worked, he or she will be entitled to the Holiday Bonus for such holiday, provided he or she works as provided in article seven (7), subsection five (5).


When an employee is not scheduled to work on one of the above enumerated holidays, and consequently does not work, the holiday shall nevertheless count as eight (8) hours for the purpose of computing overtime for hours worked in excess of forty (40) hours, provided that the employee works the other days during the week for which he or she is scheduled to work.


ARTICLE 8 -- NEW JOBS AND JOB BULLETINING


All posted positions shall start as a spare position. The exception will be progression positions and craft positions already in the progression process.


When permanent vacancies occur in these positions the trained spare moves into the permanent position and the spare job is re-posted. On a day-to-day basis spares will be utilized if practical and possible. Spares will be utilized to fill vacancies of a week or more in duration.


All permanent vacancies and new jobs, except entry level operator positions, shall be posted on the regular bulletin board for three (3) working days. In the event a job posting is not removed from the bulletin board at the end of the three (3) day posting period, the posting shall be considered null and void and re-posted for the correct period. Where feasible, the Company will award the bid to the successful bidder within ten (10) working days thereafter. Any Employee must be able to accept and to start in the job awarded within twenty-one (21) calendar days of the posting date or the Employee will be considered disqualified on that posting. This twenty-one (21) day period will be extended to twenty-eight (28) days in the event an employee with work related job restrictions or injury desires to contact his or her physician in order to determine whether he or she may safely be allowed to try the posted job. The bulletin shall describe the job vacancy, including qualifications and rate. When filling posted positions, the most senior employee applying therefor shall be first considered for such job, if he or she is qualified to do the work and/or has the potential to advance to the higher job classifications within the department. Any further vacancies which develop within sixty (60) calendar days after the date of a specified job posting will be filled from those applications already filed provided the individual is qualified, otherwise a new bulletin will be posted.


The job of Lead Person will be bulletined by sign-up sheet. However, the Company reserves the right to conduct interviews and select candidates according to its own criteria within sixty (60) days. The Lead Person can direct the activities of others and perform bargaining unit work. The Company shall pay a Lead Person at least the minimum rates as per the wage schedule. The Company may pay a higher rate if it chooses, subject to a job review and determination by January first of each year.


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Any employee placed on a new job, or a created job, for the purpose of a trial period as to whether or not that job will become a regular job, will not have rights to that job. The employee will have to bid on the job when it is posted like everyone else. Their on-the-job qualifications will not give them super- seniority to the job. A trial period shall consist of a period of ninety (90) days, or less, and will not be extended without mutual agreement of the parties.


a. In the Woodenware Dep ...