Collective Bargaining Agreement

AMALGAMATED WORKERS UNION LOCAL 88


RWDSU. AFL-CIO


COLLECTIVE BARGAINING AGREEMENT


This Agreement effective from the 1st day of September 1999, by and between Amalgamated Workers Union Local 88, RWDSU, AFL-CIO, located at 2366 Flatbush Avenue, Borough of Brooklyn, City and State of New York, (hereinafter referred to as "UNION") and BERNARD CHAUS, INC., with a principal place of business at 1410 Broadway, New York, New York (hereinafter referred to as the "COMPANY").


W I T N E S S E T H:


Whereas, it is the intent and purpose of the parties to promote and improve the industrial and economic relations between the Company, its employees and the Union, to establish a basic understanding relative to rates of pay, hours of work, and other conditions of employment and to provide means for the amicable adjustment of all disputes and grievances:


NOW, THEREFORE, the parties hereto agree as follows:


ARTICLE 1


RECOGNITION


The Company recognizes and acknowledges the Union as the sole and exclusive collective bargaining agent for all of its warehouse and distribution employees, van drivers, porters, messengers, maintenance employees, warehouse quality control employees, account payable, accounts receivable employees located at its production facility at 800 Secaucus Road, Secaucus, New Jersey 07094; excluding all salaried employees, confidential employees, computer department employees, allocation department employees, outlet store employees, security employees, working foremen, foremen, managers, designers, executives, all sales persons and supervisory employees. The Company further recognizes and acknowledges the Union as the sole and exclusive collective bargaining agent for all its sample room and maintenance employees located at its production facility at 520 Eighth Ave New York, New York 10018, excluding all salaried employees, pattern makers, Sketchers, fitters, drapers, computer department employees, scheduling department employees, working foremen, foremen, sales persons, confidential employees, supervisory employees, and textile studio employees.


ARTICLE 2


UNION SECURITY


2.1 It shall be a condition of employment that all employees of the Company covered by this Agreement who are members of the Union in good standing on the effective date of this Agreement shall remain members in good standing; and all employees covered by this Agreement who are not Union members and are hired on or after the execution date of this agreement shall on the first of the month following the thirtieth (30th) calendar day of such employment become and remain members in good standing with the Union. Good standing with the Union will be defined in accordance with applicable National Labor Relations Board and Federal case law.


2.2 The Company shall notify the Union of all new employees hired within one week following their first day of employment. New employees shall be employed on a probationary period until the first day of the month following the first sixty (60) calendar days of the individual's employment with the Company. During or at the end of the probationary period, the Employer may discharge such employee for any reason, at any time, which need not be stated by the Employer. Such discharge shall not be subject to the grievance/arbitration provisions of this Agreement. If an employee is discharged during his/her probationary period and is then subsequently hired again, such rehiring shall be considered a new hiring and no credit will be given for time worked during the previous probationary period. Upon successful completion of the probationary period, the employee will become a regular bargaining unit employee subject to the terms of this Agreement with his/her seniority measured back to the first day of employment. Employees are not eligible to receive any benefits during their probationary period except as otherwise indicated by any specific term of the Agreement.


2.3 The Union shall indemnify, defend and save the Employer harmless against any and all demands, suits or other forms of liability that shall arise out of or by reason of discharging any employee requested or required by the Union as a result of this Article.


ARTICLE 3


HOURS OF WORK AND WAGES


3.1 All bargaining unit employees will work a regular forty (40) hour work week divided into five (5) days Monday through Friday of eight hours per day plus a thirty (30) minute unpaid meal period. Time and one-half shall be paid after forty (40) hours of work in a week. Time and one-half shall be paid for work done on Saturdays. Double time shall be paid for work on Sundays if the employee works the day before and the day after. Time and one-half, plus holiday pay at regular pay, shall be paid for work on the paid holidays hereinafter listed.


3.2 Overtime may be offered to employees on a daily or weekend basis. Employees


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may be required to work overtime as needed. Continued failure to work overtime as required will result in disciplinary action. Employees will be offered available overtime based on qualification and seniority, especially in the Q.C. area. Employees will be offered training in specialized areas such as Q.C. so that they can be certified to work overtime there, even though it is not their regular work area.


In order to be eligible to work available overtime on weekends, the employee must have worked at least two (2) days of daily overtime in the work week until at least 8:00 p.m. each day. Failure to do so may disqualify the employee from working weekend overtime at the sole discretion of the employer. If there are more qualified employees than needed to work weekend overtime, employees will be offered weekend overtime work on a seniority basis (i.e. needed employees will then be drawn from a pool of employees, who worked at least two (2) days of overtime until 8:00 p.m., by seniority and ability to do the job.) Employees who are selected to work weekend overtime must work the full weekend shift unless they are excused from doing so by management on a case by case basis for exceptional reason or cause. Any excuse from working the full overtime shift may not be used as precedent in any future situations that may arise.


ARTICLE 4


HOLIDAYS


4.1 The following days shall be deemed holidays under this Agreement with pay for such day at the employee's average straight time hourly earnings for the week in which the holiday occurs, except when an employee is absent from work the day preceding or following the holiday without acceptable excuse, holiday pay will not be granted.


NEW YEAR'S DAY LABOR DAY


PRESIDENTS DAY THANKSGIVING DAY


MEMORIAL DAY DAY AFTER THANKSGIVING DAY


INDEPENDENCE DAY CHRISTMAS DAY


TWO FLOATING HOLIDAYS ANNUALLY - which can be taken after a two (2) weeks notice is given to the Company. These holidays may not be taken consecutively, or on a normal workday immediately preceding or following another Holiday.


EMPLOYEE'S OWN BIRTHDAY - it is agreed if it falls on a weekend or holiday that it may be taken at any time during the week in which it falls.


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4.2 Should any of the aforementioned holidays occur on Sunday, it shall be celebrated on the following Monday. Should any holiday listed above occur on a Saturday, it shall be celebrated on the preceding Friday.


4.3 Should any of the aforementioned holidays fall within the probation period referred to in Subsection 2.1 the employee shall receive pay for such holiday after the probationary period has been satisfactorily completed. All laid-off employees shall receive holiday pay for the aforementioned holidays if they have worked at any time within thirty (30) days preceding the holiday, except employees laid off for just cause.


ARTICLE 5


VACATION


5.1 The Company shall grant to all of its employees during each anniversary year vacations as follows:


AFTER 1 YEAR 2 Weeks *


*One (1) week shall be available after six (6) months of consecutive employment.


AFTER 3 YEARS of employment the employee shall begin accumulating vacation at the rate of 1 week every 4 months This accumulation occurs during the fourth (4th) year of employment.


AFTER 10 YEARS of employment the employee shall begin accumulating vacation at the rate of 1 week every 3 months. This accumulation occurs during the eleventh (11th) year of employment.


AFTER 15 YEARS of employment the employee shall begin accumulating vacation at the rate of 1 week every ten and one-half (10 1/2) weeks. This accumulation occurs during the sixteenth (16th) year of employment.


5.2 Vacation money shall be paid immediately before the employee leaves for his vacation period; the vacation period shall be designated by the Company at the Company's discretion, at least four (4) weeks prior to the time it commences. Holidays falling during the vacation period shall be paid for, in addition to the vacation pay. The Company may schedule a vacation shutdown period, and all employees will be required to take their vacation during such period.


5.3 Employees laid-off, discharged or quitting prior to the vacation period shall be paid vacation monies on a pro-rata basis at the time such employment is terminated. Should the laid-off employees be recalled, then, at the time of vacation period, they shall receive the balance of vacation pay due them. Lay-off time, up to a maximum of two (2) months in any anniversary


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year, shall be credited as time worked for vacation purposes. In event of the death of any employee covered by this Agreement, vacation monies due, on a pro-rata basis, shall be paid to the designated beneficiary. Vacation time may not be banked from year to year.


The Employer will provide eight (8) vacation slots per year where an employee could take three (3) consecutive weeks of vacation. Employees will not be able to select three (3) week vacations slots during the months of March, June, September and December. Employees will be offered this opportunity in descending order of seniority over the life of the contract among employees who are eligible to receive three (3) weeks of vacation. Once an employee is offered one of those special vacation slots and either refuses it or accepts it, he/she will be moved to the bottom of the seniority list.


It is the intention of the company to normally close the Distribution Center for the first week of July, and employees may take available vacation at that time. However, based on business and operational needs, the Company - at its sole discretion - may decide to remain open or to be open on a limited basis during that week. The company will try to give reasonable notice to the Union and employees if it decides NOT to close or to remain partially open during that week.


ARTICLE 6


WAGE INCREASE


All Bargaining Unit employees who have completed their probationary period at the time of an increase, shall receive increases based on the following schedule:


September 1, 1999 - Fifty (0.50) cents per hour increase.


January 1, 2000 - Fifty (0.50) cents per hour increase.


September 1, 2000 - Three (3%) percent per hour increase. S ...