Collective Bargaining Agreement

BETWEEN


ARROWHEAD GRATING & METALWORKS
DIV OF KLEMP CORPORATION


AND


OPERATING ENGINEERS LOCAL NO. 101


EFFECTIVE FROM


DECEMBER 8, 1997


THRU


DECEMBER 7, 2001 20
TABLE OF CONTENTS


ARTICLE I - RECOGNITION 1


ARTICLE II - MANAGEMENT 3


ARTICLE III - UNION SECURITY 4


ARTICLE IV - WAGES 5


ARTICLE V - SENIORITY 8


ARTICLE VI - HOURS OF WORK 11


ARTICLE VII - HOLIDAYS 13


ARTICLE VIII - VACATIONS 14


ARTICLE IX - JURY DUTY 15


ARTICLE X - SICKNESS ABSENCE ALLOWANCE 16


ARTICLE XI - HEALTH INSURANCE 17


ARTICLE XII - NON DISCRIMINATION 17


ARTICLE XIII - BULLETIN BOARD 18


ARTICLE XIV - PENSION 18


ARTICLE XV - NO STRIKE - NO LOCKOUT 19


ARTICLE XVI - NOTIFICATION 19


ARTICLE XVII - LEAVE OF ABSENCE 19


ARTICLE XVIII - FUNERAL LEAVE 20


ARTICLE XIX - ATTENDANCE & TARDINESS 20


ARTICLE XX - GRIEVANCE AND ARBITRATION PROCEDURE 22


ARTICLE XXI - ON THE JOB INJURY 24


ARTICLE XXII - CREDIT UNION 24


ARTICLE XXIII - SAFETY AND HEALTH 24


ARTICLE XXIV - FEDERAL AND STATE LAW 26


ARTICLE XXV - DISCIPLINARY ACTION 26


ARTICLE XXVI - TERMS OF AGREEMENT 27 21
AGREEMENT


This agreement is made and entered into this ____ day of ______________, by and between ARROWHEAD GRATING & METALWORKS, DIV. OF KLEMP CORP. hereinafter called the "Company" and INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL NO. 101, hereinafter called the "Union".


ARTICLE I - RECOGNITION


Section 1. The Company recognizes the Union as the sole, exclusive representative of all full-time and regular part-time production and maintenance employees including welder/fabricators, welder operators, machine operators and material handlers employed by the Employer at its 1100 Brown Street, Liberty, Missouri facility EXCLUDING office clerical employees, professional employees and guards and supervisors as defined by the Labor- Management Relations Act of 1947, as amended.


Section 2. The Company agrees to notify the Union of its need for new employees within the bargaining unit at the time these needs develop. The Employer agrees to notify the Union on a monthly basis of all new hires and terminations as they apply to the bargaining unit if any.


Section 3. THE COMPANY AGREES NOT TO HIRE ANY TEMPORARY EMPLOYEES TO DO BARGAINING UNIT WORK, WHEN ANY REGULAR UNIT MEMBERS ARE ON LAYOFF.


Section 4. The purpose of this agreement is to provide orderly collective bargaining relations between the Company and the Union, to provide for peaceful adjustment of any differences which may arise between the parties, to eliminate interruptions of work and interference with efficient operation of the Company's business.


Section 5. The Company is obligated to negotiate with the Union on any substantive change of any present terms or conditions of employment. The Company agrees not to change any conditions of employment without first bargaining with the Union.


Section 6. The Company agrees that Business Representatives of the Union may visit the plant to check on complaints of the employees, with as little interference to the work as possible, provided that visits are prearranged and agreed to by the Company. Union meetings shall not be held on the Company's premises.


Section 7. Shop stewards will have the right to discuss Union-Management problems with union members during normal business hours so long as such activities do not interfere with the normal operation and efficiency of the Company and so long as each discussion is limited to one (1) union steward and one (1) employee with a duration of no more than five (5) minutes and no more than two (2) meetings per day per steward. The Company agrees to pay the shop steward his regular rate of pay for all meetings and discussions with management, when such discussions occur during the steward's regular working hours.


Section 8. An employee shall have a union representative present during any meeting with management in which disciplinary action(s) of the following nature are going to be implemented.


22
A. Tardy and/or attendance related discipline involving either suspension or termination as outlined in this agreement.


B. Discipline at level four (4) or level five (5) involving suspension or termination as outlined in the Policy For Administration of Discipline In The General Company Rules.


ARTICLE II - MANAGEMENT


Section 1. The management of the plant and the direction of the work force including the planning, direction and control of plant operations; the scheduling of work and the assignment of employees to such work; the right to promote; the control and regulation of all equipment and other property of the Company; to determine the means, methods, processes and schedules of production; the determination of the products to be handled or manufactured; to determine the location of the plants; the determination of ability on a fair and equitable basis; to establish production standards and to maintain operating efficiencies; the extent to which work required in the Company's business shall be performed by employees covered by this Agreement; the establishment and enforcement of reasonable rules of conduct and the right to maintain discipline and efficiency of all employees on a fair and equitable basis, are all rights vested with the Company. In addition, the determination and establishment of any new or improved methods or facilities, the extension, limitation, curtailment or cessation of operations, are rights vested with the Company but the Company acknowledges its obligation to notify the Union regarding any extension, limitation, curtailment or cessation of operations. It is further agreed that the listing of management prerogatives shall not be interpreted as excluding other prerogatives not listed, and the Company retains the right to exercise these and other prerogatives or functions of management, which is not abridged by specific provision of this Agreement and subject to the grievance and arbitration provision provided herein.


Section 2. The Company retains the right to hire, suspend, discharge, discipline for proper cause, transfer and the right to relieve employees from duty because of lack of work or other legitimate reasons, provided that in the exercise of these rights the Company will not violate any of the terms of this Agreement and subject to the grievance and arbitration provision provided herein.


ARTICLE III - UNION SECURITY


Section 1. All present employees who are members of the Union on the effective date of this Agreement shall remain members of the Union in good standing as a condition of employment. All present employees who are not members of the Union, and all employees who are hired thereafter, shall become and remain members in good standing of the Union as a condition of employment on or after the 91st day following the effective date of this Agreement, whichever is later.


Section 2. The Union agrees that any request for the discharge of an employee, for failure to comply with this Article, shall be in writing and shall specify the reason for such request and also the fact that Union membership was available to such employee on the same terms and conditions generally available to other members.


Section 3. The Employer agrees, upon receipt of proper written authorization from the individual employee, to deduct from the pay of the 23 employee, on the last payday of each month, the monthly Union dues for the following month, and to deduct initiation fees of a new employee upon receipt of written authorization from that employee to do so. These deductions shall be remitted to the Union on or before the 10th of each month. The Union agrees to indemnify and hold harmless the Employer, and its successors, from any and all loss, cost, and liability, damage or expense arising out of the Employer's compliance with this check-off provision.


ARTICLE IV - WAGES


Section 1. All current employees, effective with this Agreement shall earn hourly wages, plus applicable premiums, in accordance with the attached wage table based on classification and tenure.


Section 2. The following adjustments and/or premium apply to the rates in Section 1.


A. A premium of forty-five cents (.45) per hour for the second shift and sixty cents (.60) per hour for the third shift shall be paid for work performed on these respective shifts.


B. A premium of thirty-five cents (.35) per hour shall be paid to any company designated employee or employees within the bargaining unit who maintains a chauffeur's license at the Company's request for the purpose of driving Company vehicles at the Company's discretion.


C. A premium of twenty-five cents (.25) an hour shall be paid to employees who are qualified by the Company to serve as welder operators at the Company's discretion. Such employees will be paid full welder operator pay when they are, in fact, serving in said capacity.


Section 3. The above rates of pay are minimum. The Company, employee and the Union may negotiate higher wage rates for an individual because of the employee's skill, attitude, or ability to perform their duties. Any wage raise negotiated will be replied on within ten (10) calendar days.


Section 4. If, during the term of this agreement new job classifications are created, the Company may determine the rate of pay for the new classification for the purpose of implementing the classification but must notify and negotiate with the Union the rate of pay. If a higher rate of pay is negotiated then the differential will be retroactively due to subject employees to the date the new classification and rate of pay was implemented.


Section 5. In the event an employee is transferred, or assumes the duties of a higher paid classification for two (2) or more hours in any work day, he shall receive the rate of the higher classified job for the remainder of that day.


Section 6. The Company, at its sole discretion, can designate any employee to serve as a leadman at the Company's convenience. The Company will pay a premium of seventy-five cents (.75) an hour for the hours worked as a leadman.


Section 7. The Company will make good faith effort to have paychecks ready by 1:30 p.m. on the day following the end of the pay period. Second and third shifts will be allowed to pick up their checks at this time or any time 24 thereafter.


Section 8. All pay increases in this Article shall be in effect the day on which the increase falls.


Section 9. Any employee covered by this Agreement and now receiving more than the above scale of wages shall not suffer any reduction in said scale of wages.


Section 10. If any employee changes classifications to a higher rated job on a permanent basis, he or she shall be positioned on the wage schedule in the new classification at the first point he or she would receive a wage increase from the previous classification.


Effective 12/8/97 thru 12/7/98 Start 90 Day 1 Year 2 Year 3 Year - ----------------- ----- ------ ------ ------ ------ FORGEWELD 8.21 9.94 10.71 11.63 13.32 WELDER/FABRICATOR 7.65 9.34 10.14 11.01 12.74 MACHINE/OPERATOR 6.87 8.08 9.11 10.01 11.75 MATERIAL HANDLER 6.42 7.73 8.66 9.40 11.10


Effective 12/8/98 thru 12/7/99 Start 90 Day 1 Year 2 Year 3 Year - ----------------- ----- ------ ------ ------ ------ FORGEWELD 8.45 10.23 11.03 11.97 13.71 WELDER/FABRICATOR 7.87 9.62 10.44 11.34 13.12 MACHINE/OPERATOR 7.07 8.32 9.38 10.31 12.10 MATERIAL HANDLER 6.61 7.96 8.91 9.68 11.43


Effective 12/8/99 thru 12/7/2000 Start 90 Day 1 Year 2 Year 3 Year - ----------------- ----- ------ ------ ------ ------ FORGEWELD 8.70 10.53 11.36 12.32 14.12 WELDER/FABRICATOR 8.10 9.90 10.75 11.68 13.51 MACHINE/OPERATOR 7.28 8.56 9.66 10.61 12.46 MATERIAL HANDLER 6.80 8.19 9.17 9.97 11.77


Effective 12/8/2000 thru 12/7/2001 Start 90 Day 1 Year 2 Year 3 Year - ------------------- ----- ------ ------ ------ ------ FORGEWELD 8.87 10.74 11.58 12.56 14.40 WELDER/FABRICATOR 8.26 10.09 10.96 11.91 13.78 MACHINE/OPERATOR 7.42 8.73 9.85 10.84 12.70 MATERIAL HANDLER 6.93 8.35 9.35 10.16 12.00


ARTICLE V - SENIORITY


Section 1. For purposes of this Agreement, seniority shall be determined by the length of continuous time in the bargaining unit.


Section 2. In all matters of employee's selections, seniority shall prevail at all times. This provision shall not be inconsistent with any of the express terms of this agreement.


Section 3. Employees shall be in a probationary period for their first 25 ninety (90) days of employment, provided that the Company may extend the probationary period to one hundred twenty (120 days by written notice sent to the Union between an employee's sixtieth (60th) and ninetieth (90th) day of employment. Probationary employees may be discharged or disciplined without recourse to the grievance and arbitration provisions of this Agreement. All other provisions of the Agreement shall apply during their probationary period. Once a probationary employee successfully completes the probationary period, he shall be a regular employee for purposes of Article I, Section 3.


Section 4. When an opening occurs within the bargaining unit of the employees coming under the jurisdiction of the Union, the Employer will post the opening for a period of three (3) working days. Any employees within the bargaining unit desiring to bid on such opening shall write the employee's name and seniority status on the notice. The union shop steward may sign a job bid posting for an employee in the bargaining unit while such employee is on vacation. Within one (1) week thereafter, the opening will be awarded to the senior employee bidding. When the position opening is one for which there are not any prerequisite qualifications, the senior employee awarde ...