Collective Bargaining Agreement

EXHIBIT 10.66


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COLLECTIVE BARGAINING AGREEMENT


BETWEEN


PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY


AND


WEST VIRGINIA UNION OF MUTUEL CLERKS, LOCAL 553
SERVICE EMPLOYEES INTERNATIONAL UNION, AFL-CIO


JANUARY 1, 2001 - DECEMBER 31, 2004


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


TABLE OF CONTENTS


ARTICLE NUMBER SUBJECT PAGE - -------------- ------- ----
1 Recognition 3
2 Term of Agreement 4
3 Wages and Other Rates 4
4 New Jobs 6
5 Union Security 7
6 Seniority 8
7 Leave of Absence 13
8 Discharge 14
9 Grievance Procedure 16
10 Military Service 17
11 Shortages and Overages 17
12 Exclusions 17
13 No Strike or Lockout 18
14 Notice 19
15 Management's Prerogitives 20
16 Funeral Leave 21
17 Technological Displacements 21
18 Uniforms 21
19 Severability 22
20 Pension Plan 22
21 Vacations 23
22 Sunday Racing 23
23 Video Lottery Agreement 23
24 Employee Benefits 24 Schedule A Wage Schedule 25


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


AGREEMENT


THIS AGREEMENT made and entered into this 1st day of January, 2001, by and between PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY, or its successors (hereinafter referred to as "EMPLOYER") and the WEST VIRGINIA UNION OF MUTUEL CLERKS, LOCAL 553, SERVICE EMPLOYEES INTERNATIONAL UNION, AFL-CIO, or its successor (hereinafter referred to as "UNION").


PREAMBLE


The general purpose of this Agreement is to set forth terms and conditions of employment, and to promote orderly and peaceful labor relations for the mutual interests of Employer, the Employees and Union.
The parties recognize that the success of Employer and the job security of the Employees depend on Employer's success in offering and marketing quality thoroughbred and simulcast racing programs.
To these ends, Employer and Union encourage to the fullest degree friendly and cooperative relations between their respective representatives at all levels and among all Employee's, whether or not covered by this Agreement.


ARTICLE 1 - RECOGNITION


1.1 The Employer hereby recognizes the Union as the exclusive bargaining representative with respect to wages, hours and other conditions of employment for all Employees of the Employer who are employed at the PNGI Charles Town Gaming Limited Liability Company, in the Pari-Mutuel Department, Admissions Department, and Jockey-Valets, excluding the Mutuel Manager, Assistant Mutuel Manager, Office Manager, Head Cashier, Assistant Head Cashier, Porter, Auditor, Data Processing Employees and all Supervisory and Security Personnel. At all times mentioned herein, "Employee" shall mean only those Employees who are members in


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


good standing of the Union and there shall be no distinction between "live racing" mutuel employees and simulcast mutuel employees. This Agreement shall apply to existing job classifications set forth in Schedule A hereof and, in addition to the exclusions set forth above, shall not apply to new job classifications established by the Employer, except as specifically herein provided.


ARTICLE 2 - TERM OF AGREEMENT


2.1 This Agreement shall be effective as of the 1st day of January, 2001, and shall continue in force and effect until midnight, December 31, 2004; and from year to year thereafter, unless either party, at least sixty (60) days prior to said termination date, or prior to sixty (60) days before the end of any subsequent term, gives written notice to the other to terminate this Agreement. In the event that such notice is given, negotiations shall be opened not less than sixty (60) days prior to the expiration date of this Agreement, or any subsequent anniversary date.


ARTICLE 3 - WAGES AND OTHER RATES


3.1 Effective January 1, 2001, all Employees covered by this Agreement shall receive a [ * ] across-the-board wage increase. Effective January 1, 2002, all Employees covered by this Agreement shall receive a [ * ] across-the-board wage increase. Effective January 1, 2003 all employees covered by this Agreement shall receive a [ * ] across-the-board wage increase. Effective January 1, 2004, all Employees covered by this Agreement shall receive a [ * ] across-the-board wage increase.


3.2 WAGES. The wages of pay for each classification effective during the term of this Agreement shall be as set forth on Schedule A attached hereto.


3.3 The rates of pay set forth in Schedule A shall be paid for each race day which consists of five hours worked. Pay will be in fifteen (15) minute increments after five (5) hours.


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


3.4 Unless notified by the Employer at least one hour prior to the scheduled reporting time that there is no available work, the Employee who reports for work shall receive [ * ]


3.5 Records showing overtime distribution shall be maintained by the Employer, to the extent that payroll processes will permit, who will make available to the Local Union, upon request, records of overtime assignment of Employees, within a twenty-four (24) hour period of such request.


3.6 All Jockey-Valets shall receive for each racing day consisting of at least eight (8) races but not more than ten (10) races, his/her normal daily rate. For all races in excess of ten (10), each valet shall receive pay equal to [ * ]his/her regular pay. Said pay shall be calculated by dividing the base pay by ten (10) and multiplying the product of that calculation by [ * ] for each race after ten (10).


3.7 All Mutuel Clerks covered by this Agreement shall receive [ * ] per day extra pay for work performed on the day of the West Virginia Breeders Classic race, the National Breeders Cup day and Triple Crown series, each of which consists of a five (5) hour shift.


3.8 For a racing program which runs in excess of six (6) hours, an Employee shall receive pay at [ * ] of the normal rate for all hours worked in excess of six (6) hours, said pay for work over six (6) hours to be calculated in fifteen (15) minute increments.


3.9 SELF-SERVICE MACHINES - The parties agree that the Employer can use self-service machines until the machines exceed thirty percent (30%) of the total handle for every day during the meets. In this event the Employer agrees to assign more employees to teller terminals so as to keep the use of self-service machines at thirty percent (30%) or less. The Employer shall have


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


the sole right to determine the number of additional employees needed to comply with this provision.


ARTICLES 4 - NEW JOBS


4.1 The Employer shall have the right to create any new Union job classification in any department covered by this Agreement which it deems appropriate and establish the rate of pay to be given such new classification, provided, however, that the Employer, prior to the effective date of such new job classification, shall meet with the Union to discuss such new job classification and the proposed rate of pay. If there is no agreement on the rate of pay for such new job classification within sixty (60) calendar days of such first meeting, such dispute shall, at the option of either party, be submitted to arbitration pursuant to the provisions of ARTICLE 9 - GRIEVANCE PROCEDURE.


4.2 The Employer shall have the right to start operating under such new job classifications and continue to operate the same at the rates established by the Employer until agreement with the Union can be reached, or until the decision of the arbitrator is received. If the Employer is ordered to pay a higher rate by an arbitrator, or by agreement between the parties, all such increases shall be made retroactive to the first day of hire of all Employees in such new job classifications. 4.3 All new jobs created by the Employer under this Article 4 shall be posted and filled by bidding as is provided for the filing of permanent job vacancies in ARTICLE 6 - SENIORITY.


4.4 In the event that any additional new or alternative forms of gambling are conducted by or at PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY, limited to off-track wagering and telephone account wagering, all jobs created as a result of this new gambling will be Union jobs and assigned by the provisions of ARTICLE 6 - SENIORITY.


ARTICLE 5 - UNION SECURITY


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


5.1 All new employees (employees hired on or after January 1, 2001) included in the bargaining unit covered by this Agreement shall be considered probationary employees until they have worked forty-five (45) programs at the PNGI Charles Town Gaming Limited Liability Company. During an employee's probationary period of employment, the Employer may terminate such probationary employee at the Employer's sole discretion and such termination shall not fall within the Grievance Procedure as provided by Article 9.


Any employee who is a member of the Union on the effective date of this Agreement shall be required, as a condition of employment, to remain a member of the Union. Any other employee shall be required, as a condition of employment, to become and remain a member of the Union upon the completion of twenty (20) days or more of work, regardless of the number of years it takes to accumulate such twenty (20) days. No full-time employee who is employed on a regular basis shall be required to join the Union until he/she has worked twenty (20) days.


5.2 The Employer may hire new Employees from any source, however, it agrees that it will not discriminate against Union members, if they are qualified. Management's decision on qualifications and whether such applicant is satisfactory, shall be binding on all parties.


5.3 The Union agrees that all Employees included in the bargaining unit covered by this Agreement shall be admitted to membership in the Union upon application and tender of regular dues and initiation fees which uniformly apply to all members of the Union at such time.


5.4 The Employer agrees to deduct Union dues and initiation fees from the wages of Employees who authorize such deductions in writing pursuant to a procedure and on a form mutually acceptable to the Employer and the Union. In the event any Employee shall become delinquent in the payment of dues, regular initiation fees and assessments and fines which universally apply to all members of the Union, and the Union shall give written notice of such delinquency to the Employer; then and in that event, the Employer shall discharge such Employee, if the Employee has not paid such delinquency within five (5) days from the receipt of such written notice to the Employer.


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


5.5 The Union will defend, indemnify and save harmless the Employer herein against all claims, demands, liabilities and disputes that may arise out of or by reason of any action taken or not taken by the Employer at the request of the Union, for the purpose of complying with any of the provisions of this section. The Employer will defend, indemnify and save harmless the Union and each of its members against any and all claims, demands, liabilities and disputes that may arise out of or by reason of any action taken or not taken by the Union or any of its members at the request of the Employer, for the purpose of complying with any provision of this Contract.


5.6 The President, Business Agent or other authorized representatives of the Union, not to exceed three (3) in number, shall have access to the Employer's plant during the race meetings, for the purpose of adjusting grievances, investigating working conditions and carrying into effect the provisions of this Agreement, but such access shall be set at such times and places and in such manner which will not interfere with the regular duties of the Employees or other operations of Employer's business.


5.7 The Employer shall provide office space at the track for the Union for the purpose of conducting Union business; provided, however, that such office space so provided shall not be open, for any purpose, during the normal working hours, unless such use is specifically approved by the Employer.


ARTICLE 6 - SENIORITY


6.1 The Employer believes in and will continue to practice the principles of seniority. Except as hereinafter provided, in all cases of promotions, filling of permanent or temporary vacancies, permanent or temporary transfers, and increase or decrease of work force, the Employer will take into consideration an Employee's seniority, ability and physical fitness to perform the work. In determining an Employee's ability and physical fitness to perform the normal requirements of


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


the new job, consideration will be given to job experience, related job experience, education and/or ability. However, it is recognized that in making promotions to jobs higher up in a line of progressions requiring supervisory qualifications, leadership must also be considered a factor of ability. When all the factors that constitute ability and physical fitness are relatively equal, then seniority shall prevail.
The following job classification shall be filled in the discretion of the Employer on the basis of seniority as primary determinative factor and ability and physical fitness as a secondary determinative factor: extra duty jobs, i.e., replacements for money room division heads, information windows, dedicated or special windows, money room counters and terminal supervisors.


6.2 Subject to the provisions of this Article, seniority, as of the effective date of this Agreement, shall be based on the length of continuing employment at the track from the date of hire (track seniority), which seniority shall be used in establishing seniority in each of the following departments of the Employer:


(A) Pari-Mutuel Department


(B) Admissions Department


(C) Jockey-Valets Department


6.3 There shall be the following two seniority lists which shall be maintained by the Employer:


(A) Full time Employees including full time extra Employees


(B) Part time Employees


Full time Employees are those Employees who hold specific job positions and work regularly from Monday through Sunday; however, Sunday work is optional for all Employees who worked for Shenandoah Downs or Charles Town Races, Inc. prior to January 1, 1979 and who since said date have continuously worked for Charles Town Races, Inc. and PNGI Charles Town Gaming Limited Liability Company through the date of this contract, and failure of any such Employee to work on Sunday shall not adversely affect his/her seniority or his/her status as


* Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission.


a full time Employee. Full time extra Employees are those full time Employees who fill in for full time Employees on any day between Monday and Thursday and who may fill in for absent full time Employees on Fridays, Saturdays, Sundays and holidays, if such vacancies are not filled by part time Employees on these days. Part time Employees are those Employees who work Friday, Saturdays, Sundays and holidays. Said lists when prepared, shall include, by date of hire, all Employees of the track who were employed by either Shenandoah Downs or Charles Town Races, Inc. The Employer shall maintain the two (2) seniority lists set forth above and shall update each list at the beginning of each racing year (season). Prior to the first race day of each year, each Employee who is entitled to make such a selection shall designate in writing whether such Employee will be a full time Employee, a full time extra Employee or a part time Employee and such Em ...