Collective Bargaining Agreement

between





CONN-SELMER, INC.





and





U.A.W. LOCAL 2359





May 5, 2003








COLLECTIVE BARGAINING AGREEMENT





THE AGREEMENT, made and entered into as of the 5th day of May, 2003 by and between CONN-SELMER, INC., whose office is located at 34199 Curtis Boulevard, Eastlake, Ohio, (hereinafter designated as the Company) and U.A.W. Local 2359 (hereinafter designated as the Union).



NONDISCRIMINATION. The company and the union are committed to the optimum utilization of human resources and equal opportunity. Job applicants and employees are evaluated on the basis of job qualifications 96 not age, disability, gender, national origin, race, religion, or any other legally protected group characteristic. The company and the union are committed to maintaining a place of employment that is safe, productive, and free from any form of harassment or violence. The company and the union each agree that they shall not discriminate against any employee who exercises any legally protected rights. The company will not discriminate against any employee because of membership in the union.





ARTICLE I - MANAGEMENT



Section A. Subject to the provision of this Agreement, it is expressly understood and agreed that the right to manage the Plant and direct the work force is vested exclusively in Management and that all rights not specifically modified in the Agreement are retained by the Company including the rights to hire, suspend, or discharge for proper cause, or transfer, and the right to relieve employee from duty because of lack of work, or for any other legitimate reason are vested exclusively in the Company, provided that this will not be used for purpose of discrimination against any member of the Union.



ARTICLE II - RECOGNITION



The Company recognizes the Union as the sole and exclusive bargaining agency for all its employees (except supervision, plant protection, office workers and casual employees) with respect to rates of pay, working conditions and hours or days of work.



ARTICLE III - REPRESENTATION



Section A. UNION SHOP COMMITTEE. The Union shall be represented by a Shop Committee of not more than five (5) members nor less than three (3) members, all of whom shall be employees of the Company, shall have completed their probationary period with the Company as herein provided, and shall be chosen by members of the Union.



The Union Shop Committee shall negotiate in the manner as hereinafter provided with the Company on grievances that may arise in the Plant. National Union Officials may be called in by the Shop Committee to assist in these negotiations.



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Section B. DEPARTMENTAL STEWARDS. The Union, in addition to the Shop Committee, shall be represented by Departmental Stewards who shall be employees of the Company, having completed their probationary period, and shall be chosen by and from members of the Union on a basis of one (1) Steward for each Supervisor, with the assurance of a minimum of one (1) Steward for each work shift scheduled by the Company.



In the application of the above, it is agreed, the Union shall be entitled to a Steward for each designated Department or group of Departments.





Section C. COMMITTEE CHANGES. The Union agrees to keep the Company informed at all times of who constitutes the Shop Committee and the Stewards92 Committee, also when changes in said Committees are made.



Section D. DISCIPLINARY ACTION: SHOP COMMITTEE AND STEWARDS. A twenty-four hour grace period will be given to the Shop Committee and Department Stewards when they are personally involved in disciplinary action that warrants suspension or discharge, the Chairman will be advised of disciplinary action for investigation before disciplinary action takes effect.



ARTICLE IV - NORMAL HOURS AND OVERTIME



Section A. NORMAL WORK WEEK. For shop employees which may be worked without payment of overtime, for all hourly rate employees shall consist of five (5) days, Monday through Friday, of eight (8) hours each.



Section B. TIME AND ONE-HALF. All work performed in excess of eight (8) hours during any regular working day or work performed on Saturday, outside of the week as above defined, shall be paid for at the rate of time and one-half.



Section C. OVERTIME. Employees shall be paid time and one-half for all time worked prior to their scheduled starting time or after their scheduled quitting time, once they have completed eight (8) hours.



An employee92s scheduled starting and quitting time as scheduled on Monday for the week shall be considered the employee92s scheduled starting and quitting times for the remainder of the work week unless mutually agreed upon between the Company and the Union.





Section D. LATENESS. It has been established that if an employee is going to be late for work, he/she must call his/her Supervisor or Guard and advise him/her at what time he/she will arrive. This must be done within two (2) hours from starting time.



This is necessary in order for the Supervisor to organize the work load in his/her department so production is not lost for the day.





Should he/she not call in and advise the Supervisor that he/she is going to be late, he/she will not be allowed in the Plant two (2) hours from starting and will be marked absent for the day.





This rule shall not apply if the weather is a factor in preventing the employee from arriving on schedule.



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Section E. ABSENCE. It has been established that if an employee is going to be absent from work, they must call their Supervisor or Human Resources and advise them that they will be absent. This should be done within two (2) hours from starting time.



1. One day sickness will not be excused, unless:





a) Physician92s slip is presented by employee upon return to work.





b) Employee was sent home the day before because of obvious illness, and return on following day doubtful.



2. Two day sicknesses will not be excused, unless physician92s slip is presented by employee upon return to work.



3. Employees returning to work after missing three (3) or more days because of illness will not be permitted to work without physician92s slip stating employee is able to perform regular duties. Physician92s slip must be presented by employee upon return to work.



4. Absence from work for reason other than illness will not be excused unless employee received permission from the Human Resources Manager or the Plant Manager (or their alternate as needed) prior to absence. See Section F. LEAVE OF ABSENCE. Court and legal appointments that are related to an employee92s infraction of the law are not excused "whole day" absences. All court and legal appointments, handled on a reporting late or an out early basis, will be excused (with advance notification, provided documentation is submitted upon return to work). "Whole day" absence, for court and legal appointments that are not related to an employee92s infraction of the law, will be excused (with advance notification, provided documentation is submitted upon return to work).



5. Death in family, jury duty, etc. will be excused absences once verification is presented.



6. "Emergencies" that occur between work shifts will be handled on an individual basis. The Human Resource Manager must be consulted before excusing absence.



7. Previously scheduled overtime for a Saturday and/or Sunday (hereinafter called "weekend overtime") will be assigned in accordance with the established procedure, however, any unexcused absence will fall under the following guideline:



a. All unexcused weekend overtime missed will be charged as hours paid. (i.e., 5 hrs. o.t. = 7 1/2 missed.)



8. Any jail time preventing an employee92s ability to report to work will not be viewed as an excused absence. The Company will not issue any leaves of absence towards time spent in jail. Each consecutive day in jail will be charged against the 16 Hour Policy (Infractions of a Minor Nature, #1). The number of days permitted will depend upon the number of warnings the employee92s personnel record can support, to a maximum of nine (9) days. Any time in jail beyond what



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the employee92s record can support will lead to dismissal. Should the employee not be convicted, all jail time will not be charged against the 16 Hour Policy.





Section F. LEAVE OF ABSENCE:



1. An employee may be granted a leave of absence, by the company, upon written request to a Supervisor for a period not to exceed two (2) calendar weeks in any one year, for a minimum of two (2) days (single days will only be approved when combined with remaining vacation days, or with a personal holiday request), but will not be granted a leave to work at any other job or business. Insurance and Hospitalization benefits will continue. Any grievance arising out of the application of the provision shall be subject to negotiation between the Company and Union.



Examples of such absences are personal business, court appearances, doctor92s appointments, family illness, etc. Company may request verification.



2. By agreement between the Company and the Union Shop Committee, employees may be granted a leave of absence for a definite period of time not to exceed one-half (1/2) their seniority length and in no event to exceed one (1) year without prejudice to seniority for one or more of the following reasons:



a) Death or serious illness in family.



b) Personal affairs involving legal settlement.



During such leave of absence, the employee shall only accumulate seniority and all benefits are temporarily withheld until employee returns, at which time the benefits will be reinstated.



3. Employees shall be granted a leave of absence for illness or injury causing confinement to a Hospital, Sanitarium, or at home under physician92s care. Provided a physician92s certificate is presented and proof of continued disability is supplied as requested, upon the basis of the following schedule:



a) Up to four (4) years seniority. A period of time equal to one-half (1/2) their seniority.



b) Four (4) or more years seniority. A period of time equal to their seniority.



4. This could also include outpatient treatment as prescribed by an attending physician which qualifies under the medical plan.



5. As per Contract Article XIII, Section A., #3: See Contract for Benefit schedule of Sickness and Accident Weekly Benefits.



6. "S & A Benefit Medical" forms may be obtained from the Human Resources office.



7. Leave of absences, personal/medical, if approved, will not count toward hours included under the Excessive Absentee Policy.



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8. A "Leave of Absence" form may be obtained from Supervisor or the Human Resources office.



9. During such leave of absence due to personal injury or illness, the employee shall accumulate seniority and all Sickness and Accident payments and Life Insurance benefits shall continue and they shall only terminate in these cases upon the termination of the leave under the above schedule, or at the end of three (3) years from the time they began their leave of absence, whichever shall occur sooner. Insurance benefits for employees of ten (10) or more years seniority shall continue for the length of their seniority during leaves of absence due to personal illness or injury. Coverage of Hospitalization/Dental Benefits are paid for a period of one (1) year. Employees are responsible for Hospitalization/Dental Contribution amount during leave period. Such benefits shall not increase during the period of the leave of absence.



10. Family and Medical Leave Act (FMLA)



An employee, under the terms specified for Family and Medical Leave, with twelve (12) months of service and at least 1,250 hours worked, may be granted up to twelve (12) weeks of unpaid leave based on a twelve month rolling calendar for the following reasons:



1. The birth or placement for adoption or foster care of a child. Leave taken for the birth of a child or the placement of a child for adoption or foster care must be a consecutive twelve (12) week period completed within twelve (12) months after the date of birth or placement.



2. The need for the employee to care for a spouse, parent, child with a serious health condition.



3. The employee92s own serious health condition.



Additionally, medical certification and continued documentation for intermittent absences will be required for such absence in accordance with the Act, and the regulations promulgated thereunder.



A. Status of Accrued Paid Time



If the leave is for the care of a spouse, parent, and/or child the employee may be required to take any remaining vacation days at the beginning of the FMLA leave.



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If the need for FMLA is foreseeable (such as planned surgeries or normal births), thirty (30) day notice is requested. If the need for FMLA is unforeseeable (such as serious injury or illness, or a premature birth), you must notify the company as soon as possible, and in no event, more than two (2) days after knowing of the need for a leave. Formal notice is further accomplished by submitting a FMLA Application Form. FMLA Application Forms must be submitted within fifteen (15) calendar days of a return from an unforeseeable serious health condition for either the employee, or a defined family member, or the absence will not be regarded as FMLA and will be subject to the terms of the attendance rules.



B. Status of Benefits



Health care coverages (as defined by COBRA) will continue under the same terms and conditions as while actively at work. Employee will be responsible for continuing to make contributions to these plans while on leave.



FMLA leave will not constitute a break in the employee92s record of continuous service and the period of such leave of absence shall be included in the records as continuous service. Employees, following FMLA leave, will be restored to their original job and pay rate. The only exception would be changes that would have affected the employee if he / she had not gone on leave.



These terms are subject to review if the corresponding FMLA regulations are revised or changed.





Section G. OUT EARLY:



1. Employees will not be permitted to leave work early, and will be charged with lost time except for the following reasons:



a) Lack of work.



b) Obviously ill and unable to continue to work.



c) Emergency call from family, requiring employee to leave. Verification may be requested.



d) Workers92 Compensation injury or illness.





WORK SCHEDULE - The employee is to be notified on Friday, by 2:30 p.m. if the work schedule for the coming week is going to be changed, so that the employee has enough time to make arrangements if necessary.



If a department is advised ahead of time as required about the schedule change, they must work eight (8) hours before overtime is paid.



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Only when the Company changes the schedule out of order does an employee receive overtime for the time worked prior to set schedule or time after set schedule no matter how many hours they work that day.





OVERTIME - - The Company agrees to seek volunteers for available overtime by priority of classification, qualification, and overall seniority. For the purpose of maintaining efficient operations and complying with customer requirements, the Company shall have the right to institute daily overtime or to extend the work week. Lacking enough volunteers, it shall assign as many junior qualified employees as needed in that classification or department to perform the work. In the application of this provision, no employee shall be required to work in excess of ten (10) overtime hours per week and not for more than three (3) consecutive weeks. A list of employees scheduled for Saturday overtime will be posted by 2:45 p.m. Thursday, and any disputes arising from the posted list must be communicated before 2:45 p.m. Friday, otherwise a grievance for a seniority claim may not be submitted.



Section A. DOUBLE TIME. Work performed on Sundays shall be paid for at the rate of double time. Work performed on the twelve (12) Holidays in 2003, and the thirteen (13) Holidays in 2004, as identified in Article VII - Section C, shall be paid for at the rate of double time in addition to Holiday Pay as stated in Article VII - Section C.



Section B. NO WORK. When employees report for work, not having been properly notified in advance that there will be no work, and prevented from performing their jobs that day through no fault of their own, they shall be guaranteed four (4) hours work or four (4) hours pay at their straight time day rate if no other work is available for assignments; in no event shall they be paid for less than four (4) hours.



However, this section shall not apply if the Company is unable to operate its plant or any portion thereof due to an act of Nature, utility failure, mechanical breakdown, government restriction, fire, flood, riot, civil commotion, or labor dispute, unless the mechanical breakdown or fire is caused by the company92s negligence.





Section C. NOTIFICATION OF ADDRESS CHANGE. It is the responsibility of each employee to keep the Human Resources Department informed of current address and telephone number. Attempts to reach the employee at the telephone number currently listed in the Human Resources Department92s files shall constitute proper notice.



Section D. CALL BACK. Any employee being called back to perform a task shall be paid no less than four (4) hours at straight time pay or which ever is higher, in the event of overtime or a Holiday.



Section E. TIME AND ATTENDANCE, LABOR REPORTING. Each employee shall be required to enter his or her own attendance and labor transactions into the data collection system. Employee shall be responsible for the accuracy of the count and time entered for all transactions. Employees should be at their appointed place of work when signal is given for work to begin and should remain at their work until signal is given to quit.



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ARTICLE V - SENIORITY



Section A. SENIORITY. Will commence on the first day worked regardless of when employment was first offered by any Company representative.



Section B. PROBATIONARY PERIOD. All new employees shall be considered as on probation for a period of three (3) months accumulated service, except for excusable absence, after starting date and during such period, shall not be entitled to any seniority rights under the provisions of this Article. The performance of any new employee will be evaluated on each one (l) month anniversary date for the subsequent three (3) month probation. However, after a period of two (2) months accumulated service, they shall be entitled to Holiday Pay, and after three (3) months accumulated service shall be entitled to the Personal Holiday. After a probation period of three (3) months, seniority shall be determined as of the date the employee started to work, and after a period of three (3) months accumulated service shall qualify for all benefits.



Section C. SUPERSENIORITY STATUS. The Chairman of the Shop Committee and all members of the Shop Committee handling all matters concerning the Grievance Procedure shall head the plant-wide seniority list during their terms of office. Any member of the shop committee who at the time of election is on second or third shift will be assigned to the first shift within their respective classification. Such shop committee member transferred from other than first shift will replace the employee within their classification, with the lowest plant-wide seniority, unless they can be otherwise absorbed into their classification. This would not apply to temporary transfers between shifts for up to thirty (30) days. If there is a reduction in the work force during the term of office of the Grievance Committeeperson, they will remain at work in their respective departments regardless of seniority unless the entire department is laid off.



The Committee must be able to do the job in accordance with the bumping procedure. This superseniority status is applicable to layoffs only, and employees will return to their original positions on the seniority list at the termination of their terms in office. The Department Stewards shall head the seniority list in their respective departments during their term of office. This superseniority status is applicable to layoffs only, and employees will return to their original positions at the termination of their terms of office.





Section D. MEDICAL DISQUALIFICATIONS. Medical conditions that create a permanent inability for an employee to perform their present job will result in:



a. return to job they have previously satisfactorily performed, providing there is an opening, providing they have seniority.



b. seniority prevailing, accept an open job that meets the stipulated work restrictions (failure to accept an open job will be construed as a voluntary quit).



c. a lay-off.





Section E. LAY-OFF PROCEDURE. When it becomes necessary to reduce the work force for an indefinite period in a department, the reduction will be made according to job classifications, and employees will be notified three (3) normal working days in advance. It is understood and agreed that in all cases of reduction in workforce, seniority shall be the determining factor so



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long as those employees remaining in affected job classifications have the skills and abilities to ensure continued efficient operations of the Company.



When a reduction in workforce is implemented in a department, the following procedure will govern, seniority prevailing, provided that affected employees have the skills and abilities to perform available jobs:





1. Probationary employees in the department shall be laid off before any employee having seniority in that department is affected.



a. Employees on inactive status for sickness and accident, workers92 compensation, FMLA, or personal leave, while other senior employees within their classification are moved to lay-off status, will be moved to layoff status.



2. If further reduction is necessary, employees having seniority shall be entitled to displace other employees within the department in accordance with the following:



a. Displace the employee having the least seniority in an occupation he/she had previously satisfactorily performed while in the employ of the Company.



b. If employees cannot displace employees in jobs previously satisfactorily performed, they shall be entitled to displace the employee having the least seniority in an occupation he/she is able to perform without further training.



c. Bumping rights for those inactive at the time of lay off, may be invoked at the time said employee is scheduled to return, or is released to return to work. Bumping rights under these circumstances, expire the working day following the scheduled return date. Recall rights will be extended for the normal defined term (one-half seniority to a maximum of three (3) years) effective with the date of lay off; however, recall rights will not be extended until the employee is scheduled to return or is released to return to work.



3. Any employee having seniority displaced from a department in accordance with the above procedure shall be entitled to displace employees in other departments in accordance with the following:



a. Displace the employee having the least seniority in an occupation he/she had previously satisfactorily performed while in the employ of the Company.



b. If employee cannot displace employees in jobs previously satisfactorily performed, they shall be entitled to displace the employee having the least seniority in an occupation he/she is able to perform without further training.



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c. If employee is displaced from original bump by a senior employee with more seniority who can perform the job without training, the employee may again exercise his/her bumping privileges. Only the senior employee will be considered for each multi-bump situation.



4. In recognition of the Company92s responsibility to maintain efficient operations, it is understood and agreed that the following criteria shall apply to employees displacing other employees in accordance with the above procedure:



a. Employee will have five (5) working days during which to demonstrate ability to satisfactorily perform the work with the opportunity for familiarization of equipment and work area, without training. At the end of this period, employee must be performing above the guarantee rate or at the same production level as the displaced employee.



5. If an employee fails to displace another employee, due to lack of skills or abilities, he/she shall be placed on layoff status, with the right to recall only to:



a. His/her regular job; or



b. A job he/she previously satisfactorily performed; or



c. ...