Collective Bargaining Agreement

Exhibit 10.13


COLLECTIVE BARGAINING AGREEMENT


BETWEEN


DE&S HOLDING COMPANY


and


TEAMSTERS LOCAL 830
(Effective: February 8, 1999 - February 8, 2002)


TABLE OF CONTENTS


ARTICLE 1 RECOGNITION ...................................................... 1 ARTICLE 2 UNION SECURITY.................................................... 1 ARTICLE 3 CHECK-OFF......................................................... 2 ARTICLE 4 PROBATIONARY PERIOD............................................... 3 ARTICLE 5 HOURS OF EMPLOYMENT............................................... 3 ARTICLE 6 OVERTIME.......................................................... 4 ARTICLE 7 WAGES............................................................. 5 ARTICLE 8 SENIORITY......................................................... 5 ARTICLE 9 JOB BIDDING....................................................... 7 ARTICLE 10 SHOP STEWARDS..................................................... 7 ARTICLE 11 UNION ACTIVITIES.................................................. 8 ARTICLE 12 DISCHARGE AND DISCIPLINE.......................................... 9 ARTICLE 13 GRIEVANCES & ARBITRATIONS......................................... 10 ARTICLE 14 HOLIDAYS.......................................................... 12 ARTICLE 15 SICK/PERSONAL DAYS................................................ 12 ARTICLE 16 VACATION.......................................................... 13 ARTICLE 17 LEAVES OF ABSENCE................................................. 13 ARTICLE 18 FUND CONTRIBUTIONS................................................ 15 ARTICLE 19 UNIFORMS.......................................................... 15 ARTICLE 20 EXTRA CONTRACTUAL AGREEMENTS...................................... 15 ARTICLE 21 LIE DETECTOR TEST................................................. 15 ARTICLE 22 MANAGEMENT AUTHORITY.............................................. 16 ARTICLE 23 PROHIBITION OF STRIKES AND LOCKOUTS............................... 17 ARTICLE 24 BENEFITS.......................................................... 18 ARTICLE 25 SUBCONTRACTING.................................................... 19 ARTICLE 26 TRAINING PROGRAMS................................................. 19 ARTICLE 27 SANITARY CONDITIONS............................................... 19 ARTICLE 28 WORK BY SUPERVISORS............................................... 20 ARTICLE 29 SEPARABILITY...................................................... 20 ARTICLE 30 SAFETY............................................................ 20 ARTICLE 31 TRANSFER OR SALE OF BUSINESS...................................... 21 ARTICLE 32 CURTAILMENT OR CHANGE IN OPERATIONS............................... 21 ARTICLE 33 NO DISCRIMINATION................................................. 21 ARTICLE 34 DRUG/ALCOHOL POLICY............................................... 22 ARTICLE 35 DURATION.......................................................... 24


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W I T N E S S E T H:


WHEREAS, the Employer, DE&S Holding Company ("Employer") recognizes Teamsters Local 830 ("Union") as the only Union representing the employees covered hereunder, and agrees to deal collectively only with this Union with respect to such employees.


NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, the parties DO HEREBY AGREE AS FOLLOWS:


ARTICLE 1


RECOGNITION


ARTICLE 1.1 The Employer recognizes the Union as the sole and exclusive bargaining representative of a unit of its full time and regular part-time drivers employed by the Employer at its Tomlinson Road facility in Philadelphia, Pennsylvania, but excluding all other employees, receivers, storage employees, picking employees, inventory control employees, maintenance employees, wrappers, loaders, confidential employees, office and clerical employees, guards and supervisors as defined in the National Labor Relations Act.


ARTICLE 2


UNION SECURITY


ARTICLE 2.1 All present employees who are members of the Union on the effective date of this subsection or on the date of execution of this Agreement, whichever is the later, 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 shall become and remain members in good standing of the Union as a condition of employment on and after the 31st day following the beginning of their employment or on and after the 31st day following the effective day of this subsection or the execution date of this Agreement, whichever is the later. This provision shall be made and become effective as of such time as it may be made and become effective under the provisions of the National Labor Relations Act, but not retroactively.


ARTICLE 2.2 The failure of any person to become a member of the Union at the required time obligates the Employer, upon written notice from the Union to such effect and to the further effect that Union membership was available to such person on the same terms and conditions uniformly available to other members, to forthwith discharge such person. Further, the failure of any person to maintain his Union membership in good standing as required herein shall, upon


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written notice to the Employer by the Union to such effect, obligates the Employer to discharge such person.


ARTICLE 2.3 No provision of this Article shall apply in any state to the extent that it may be prohibited by state law. If under applicable state law additional requirements must be met before any such provision may become effective, such additional requirements shall first be met.


ARTICLE 2.4 If any provision of this Article is invalid under the law or any state wherein this Agreement is executed, such provision shall be modified to comply with the requirements of state law or shall be renegotiated for the purpose of adequate replacement. If such negotiations shall not result in a mutually satisfactory Agreement, the Union shall be permitted all legal or economic recourse.


ARTICLE 2


CHECK-OFF


ARTICLE 3.1 The Employer agrees that upon the receipt of a lawfully executed written authorization from the employee, it will deduct weekly from the pay of all employees covered by this Agreement the dues, initiation fees, long term disability and/or uniform assessments of the Union, Credit Union and "D.R.I.V.E." deductions. With respect to the Credit Union and D.R.I.V.E. deductions, employees may not modify or revoke their authorization more than once each quarter.


ARTICLE 3.2 The Employer agrees to remit monthly to the Union all such deductions.


ARTICLE 3.3 When an employee is not on the payroll during the week or weeks in which the deduction is to be made, or has no earnings during such week or weeks, the deductions shall be taken from his wages the following week or weeks upon return to work. If the employee is out more than one (1) month, employee must make arrangements with the Union to pay his dues, initiation fees and/or uniform assessments of the Union. It is intended that this clause and the check off procedure hereunder shall not be in conflict with the Labor Management Relations Act of 1947 or any amendments thereto.


ARTICLE 3.4 The Union agrees that it will indemnify and hold the Employer harmless against any damage or expense incurred by reason of any action taken under this article. Once the funds are remitted to the Union, their disposition thereafter shall be the sole and exclusive obligation and responsibility of the Union.


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ARTICLE 4


PROBATIONARY PERIOD


ARTICLE 4.1 Newly hired employees shall be on a probationary period for the first eight (8) weeks of their employment. If the Employer rehires an employee whose employment with the Employer terminated for any reason except for layoff, such employee shall be considered a new employee for the purpose of this Agreement and shall be subject to the provisions of this article.


ARTICLE 4.2 Within the probationary period, the Employer may discharge or otherwise discipline said employees for any reason and such discharge or other disciplinary action shall not be subject to the grievance and arbitration provisions of this Agreement.


ARTICLE 4.3 Except as specifically provided in this Agreement, employees employed during their probationary period shall not be covered by the provisions of this Agreement.


ARTICLE 5


HOURS OF EMPLOYMENT


ARTICLE 5.1 The normal work week shall consist of five (5) consecutive days of eight (8) hours work each, exclusive of a thirty (30) minute unpaid lunch period, scheduled at reasonable times. Any employee whose regular shift of eight (8) hours requires him to work after 7:00 o'clock p.m. shall receive fifty ($.50) cents per hour in addition to his regular hourly rate. This shall not apply when the only time worked after 7:00 o'clock p.m. is at the overtime rate.


ARTICLE 5.2 For the length of this Agreement, no more than five (5) drivers may be assigned to a Tuesday through Saturday schedule. Each driver so assigned shall receive twenty-five ($.25) cents per hour in addition to his regular hourly rate.


ARTICLE 5.3 Employees shall be entitled to two (2) paid rest periods of fifteen (15) minutes each shift one in the first half of the shift and one in the second half of the shift - as assigned by the Employer to each employee.


ARTICLE 5.4 Employees will not ordinarily work through lunch without the permission of the supervisor.


ARTICLE 5.5 The Employer shall be required to pay an employee four (4) hours of pay for any day the employee reports to work unless the employee has been notified twenty-four (24) hours in advance that he is not required to report to work that day, in which event no payment is due. If the employee is sent home after working at least four (4) hours, the employee shall receive eight (8) hours pay.


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ARTICLE 6


OVERTIME


ARTICLE 6.1 Employees shall be paid one and one-half (1 1/2) times their regular hourly rate of pay for authorized time worked in excess of forty (40) hours per week. Employees shall be paid one and one-half (1 1/2) times their regular hourly rate of pay for authorized time worked on the sixth consecutive day and two (2) times their regular hourly rate for authorized time worked on the seventh consecutive day. For this purpose all paid time off shall be considered time worked.


ARTICLE 6.2 Employees who work on a contractual holiday shall be paid at two (2) times their regular hourly rate of pay in addition to the holiday pay.


ARTICLE 6.3 There shall be no pyramiding of overtime or premium pay.


ARTICLE 6.4 Whenever practical, the Employer will notify the employee that overtime is needed at least four (4) hours prior to the end of the shift. With respect to Saturday or Sunday overtime, the Employer will notify the employee at least twenty-four (24) hours prior to the Saturday or Sunday overtime.


ARTICLE 7


WAGES


ARTICLE 7.1 The job rates for the term of this Agreement shall be as follows:


(a) Effective February 8, 1999


Start Rate Job Rate (After 90 days)


Class A Driver $13.00 $13.50
Class B Driver $12.00 $12.50
Other Driver $11.00 $11.50


(b) Effective February 8, 2000


Start Rate Job Rate (After 90 days)


Class A Driver $13.50 $14.00
Class B Driver $12.50 $13.00
Other Driver $11.50 $12.00


(c) Effective February 8, 2001


Start Rate Job Rate (After 90 days)
Class A Driver $14.00 $14.50
Class B Driver $13.00 $13.50
Other Driver $12.00 $12.50


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ARTICLE 7.2 All bargaining unit employees hired prior to February 8, 1999 with more than ninety (90) days of service as of that date shall receive the higher of the job rate or a 3.5% increase to their hourly rate on each of the above dates.


ARTICLE 8


ARTICLE 3 SENIORITY


ARTICLE 8.1 All employees employed for more than eight (8) weeks shall be entitled to seniority rights as set forth below. Probationary employees will accumulate no seniority, but upon completion of the probationary period, their seniority shall be retroactive to their most recent date of hire.


ARTICLE 8.2 Layoffs shall take place on the basis of company seniority provided that the remaining employees have the present skill and ability to perform the required work.


ARTICLE 8.3 Employees with more than eight (8) weeks of seniority, but less than six (6) months shall have recall rights equal to the length of their employment. Employees with more than six (6) months seniority at the time of layoff shall have recall rights for a period of twelve (12) months following their layoff. Recall from layoff shall be in reverse seniority order provided that the employee has the present skill and ability to perform the required work. Recall shall be by mail to the last address in the employer's records with a copy to the union. Failure to respond to a recall notice within five (5) days after the notice has been sent shall result in forfeiture of all recall rights, unless the employer agrees to a longer period.


ARTICLE 8.4 Company seniority shall apply for purposes of determining vacation and overtime eligibility as well as other areas where seniority would be appropriate. It is further agreed, however, that overtime availability and assignment will be handled as follows:


(a) during the regular work week, the employer may first offer overtime to the employee whose job assignment for the day is connected with the overtime work;


(b) on the sixth and seventh day of the work week and holidays, overtime will be offered on the basis of company seniority as long as the employee has the present skill and ability to do the work scheduled for that day.


ARTICLE 3.5 A person's employment and seniority will be considered terminated for any of the following reasons:


(a) Discharge, resignation or retirement.


(b) Absence for two (2) consecutive working days without notifying the dispatching office.


(c) Failure to return to work when recalled or at the conclusion of a leave of absence, vacation or suspension within five days of notification;


(d) If an employee is laid off for a period in excess of the period he or she has rights to be recalled hereunder.


(e) Employees absent because of non-work related illness or injury for a consecutive period of fifty-two (52) weeks or more shall not be entitled to retain their position with the Employer. The Employer may, at the expiration of such fifty-two week period, dismiss such employee. If the employee returns to work prior to the expiration of such fifty-two (52) week period and is physically able to carry on his/her duties, he/she shall return to his/her employment at the former position. Employees absent due to work related illness or injury shall return to his/her employment at the former position when physically able to carry on his/her duties.


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ARTICLE 9


JOB BIDDING


ARTICLE 9.1 All employees shall have bidding rights to all job openings, based on seniority and general qualifications.


ARTICLE 9.2 Job openings shall be posted on the union bulletin board for a period of five (5) working days.


ARTICLE 9.3 Successful bidders may not bid for any additional openings for a period of one (1) year after accepting his new position.


ARTICLE 10


SHOP STEWARDS


ARTICLE 10.1 The Employer recognizes the right of the Union to designate job stewards and alternates.


The authority of the job stewards and alternates so designated by the Union shall be limited to, and shall not exceed the following duties and activities.


(a) The investigation and presentation of grievances in accordance with the provisions of the collective bargaining agreement;


(b) The collection of dues when authorized by appropriate local union action;


(c) The transmission of such message and information which shall originate with, and are authorized by the local union or its officers, provided such messages and information


(i) have been reduced to writing, or


(ii) if not reduced to writing, are of a routine nature and do not involve work stoppages, slowdowns, refusal to handle goods, or any other interference with the Empl ...