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EXHIBIT 10(z)


Union contract dated September 13, 1996, between Everest & Jennings Inc. and District No. 9, International Association of Machinists and Aerospace Workers.


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INDEX


1996-1999


COLLECTIVE AGREEMENT


BETWEEN


EVEREST & JENNINGS


AND


THE MACHINIST AND AEROSPACE WORKERS
IAMAW DISTRICT #9


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ARTICLE PAGE NUMBER DESCRIPTION NUMBER - ------ ----------- ------


Preamble.................................................... 1


Article I Purpose of Agreement........................................ 2


Article II Recognition................................................. 2


Article III Union Security.............................................. 3


Article IV Non-Discrimination.......................................... 7


Article V Non-Interruption of Work.................................... 7


Article VI Seniority................................................... 7


Article VII Hours of Work............................................... 11


Article VIII Overtime.................................................... 12


Article X Holidays.................................................... 14


Article XI Vacation.................................................... 15


Article XII Perfect Attendance Recognition.............................. 17


Article XIII Insurance and 401(K) Savings Program........................ 17


Article XIV Bereavement................................................. 19


Article XV Leave of Absence............................................ 19


Article XVI Jury Duty................................................... 21


Article XVII Grievance and Arbitration Procedure......................... 22


Article XVIII Disciplinary Action......................................... 23


Article XX Drug Testing................................................ 24


Article XXI Management Rights........................................... 25


Article XXII Alteration of Agreement..................................... 26


Article XXIII Separability................................................ 26


Article XXIV Notices..................................................... 26


Article XXV General..................................................... 27


Article XXVI Duration.................................................... 27


Letter of Agreement "Benefit Programs" 29
Letter of Agreement "Severance" 30
Amendment A 31,32,33
Amendment B 34,35
Amendment C 36,37
Amendment D 38
Schedule A 39,40


Preamble


This Agreement made and entered into by and between Everest & Jennings Inc. and or its successors and assigns, hereinafter referred to as the "Company" and District No. 9, International Association Of Machinists and Aerospace Workers, hereinafter referred to as the "Union" is for the joint use and benefit of the contracting parties as defined and set forth herein.


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Article I Purpose of Agreement


It is the intention of the parties that this Agreement will establish sound and meaningful relations between the Employer and the Union on behalf of its employees, which will promote harmony and genuine cooperation to the end that the Employer and the employees may mutually benefit.


Article II Recognition


Section 1.0


The Employer hereby recognizes District No. 9, International Association of Machinists and Aerospace Workers, its designated agents and representatives and/or assigns pursuant to the Labor-Management Relations Act, as amended, as the sole and exclusive collective bargaining agent on behalf of all of the employees of the Company within the bargaining unit as herein defined with respect to wages, hours, and working conditions.


The term "employee" as used in this Agreement shall mean and include the following:


All production, maintenance, and distribution employees employed by the
Employer at its 3601 Rider Trail South, Earth City, Missouri 63045
facility. EXCLUDING Customer Service, Engineering, Sales and Marketing,
office clerical and professional employees, temporary employees, guards,
and supervisors as defined in the Act.


The employees represented by the Union and covered by this Agreement are sometimes hereinafter collectively referred to as the "employees" or individually as the "employee".


This Agreement shall be applied in the same manner to all employees. Whenever reference is made to the male gender, the word "his" etc. refers to both genders and is used only for expediency.


Section 2.0 Bargaining Unit Work


Persons not in the bargaining unit shall not perform work ordinarily performed by bargaining unit employees except in the event of testing/experimental work, training, and emergency situations including unexpected absenteeism and equipment breakdown. Notice of the emergency situation will be given to the Chief Steward or his/her delegate. (An emergency situation would be a condition that could not reasonably have been anticipated to occur during the course of normal operations or that threatens serious consequences to the Employer's operations.)


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Article III Union Security


Section 1.0


It shall be a condition of continued employment that all employees of the Employer covered by this Agreement who are members of the Union on the effective (execution) date of the Agreement shall remain members and those who are not members on the effective (execution) date of this Agreement shall, not later than the sixty-first (61st) day (or such longer periods as the parties may specify) following the effective (execution) date of this Agreement, become and remain members in the Union. It shall also be a condition of continued employment that all employees covered by this Agreement and hired on or after its effective (execution) date shall, not later than the sixty-first (61st) day following the beginning of such employment, become and remain members in the Union.


The Company will within three (3) working days after receipt of notice from the Union, via certified mail to the Director of Human Resources at the address of record, discharge any employee who is not in the Union as required by the preceding paragraph.


The Union shall indemnify and save the Employer harmless against any and all claims, demands and suits, or other forms of liability that shall arise out of or by reason of action taken by the Employer for the purpose of complying with any of the provisions of this article.


Section 2.0 Dues Check-off


Upon receipt of signed authorization from the employee involved, the Employer shall deduct from the employee's pay the initiation and/or reinstatement fees and dues payable by him/her to the Union during the period provided for in said authorization. The amount will be certified by the Financial Secretary of the Local Lodge.


Deductions shall be made on account of initiation and/or reinstatement fees and dues payable from the first pay of the employee after receipt of the authorization. Deductions shall be made on account of Union dues from the first pay check of the employee after receipt of the authorization and monthly thereafter from the first pay of the employee in each month.


Deductions provided in the first paragraph of this article shall be remitted to the Financial Secretary of the Union no later than the tenth (10th) day of the month following the month in which the deduction was made and shall include all deductions made in the previous month. The Employer shall furnish the Financial Secretary of the Union, monthly, with a record of those for whom deductions have been made and the amounts of the deductions, and the names of those employees for whom deductions were not made and the reason they were not made.


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The parties agree that check-off authorization shall be in the following form:


Name of Employee___________________________________________
(Please Print)


Dept. No. ____________ Clock No.________________________


Social Security No._________________


Date_____________________


I hereby authorize and direct ________________ to deduct from my pay beginning with the current month, initiation and reinstatement fees and my regular monthly Union dues, as certified to the Company by the Financial Secretary of the Union, on account of membership dues in Lodge No. of the International Association of Machinists and Aerospace Workers.


I submit this authorization and assignment with the understanding that it will be effective and irrevocable for a period of one (1) year from this date, or up to the termination date (if any) of the current collective bargaining agreement between and Lodge No.____________ of the International Association of Machinists and Aerospace Workers, whichever occurs sooner.


This authorization and assignment shall continue in full force and effect for yearly periods beyond the irrevocable period set forth above, and each subsequent yearly period shall be similarly irrevocable unless revoked by me within five (5) calendar days prior to the date of termination of any irrevocable period hereof Such revocation shall be effected by written notice, sent by Registered Mail, Return Receipt Requested, to the Employer and the Union within such five (5) work day period.


Signature____________________________________


If, due to illness or being on vacation, an employee's dues are not checked off, such deduction will be made no later than the tenth (10th) day of the month following his return to work.


Section 3.0 Union Committee


The Company recognizes and will deal with all accredited members of the Shop Committee, Stewards, and all other Business Representatives in all matters relating to grievances, interpretations of the Agreement or in any other matters which affect, or may affect, the relationship between the Company and the Union.


A written list of the Shop Committee members and Union Stewards shall be shed to the Company immediately after their designation, and the Union shall notify the Company promptly of any changes.


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There shall be one (1) Shop Steward or Committee Person over the employees in the bargaining, unit. The number and location of Stewards may be adjusted by mutual agreement of the Company and Union. A Committeeman or Steward will be permitted to leave his work station to attend grievance meetings provided such Committeeman or Steward obtains permission from his Supervisor prior to leaving his workstation and obtains permission from the Supervisor of the area into which he is going. Such permission shall not be unreasonably withheld. All other grievance meetings, investigations, and Union business will be conducted during non-working hours, unless permission is granted by the Company; provided, however, if any such meeting is called by the Company during working hours, the Committeeman or Steward will be compensated for the time lost during working hours.


Section 4.0 New Employees-Notification


The Employer shall notify the Union in writing within seven (7) days from date of hiring new employees. The following information will be given:


1. Name and home address.
2. Social Security number.
3. Classification and rate of pay.
4. Date of hire.


Copy of the above information will be transmitted to the Local Union.


Section 5.0 Visitation


A designated Business Representative of the Union may be permitted on the Company premises for the purpose of conducting his/her duties provided prior approval is obtained from the Director of Human Resources. It is further understood every effort will be made to minimize and/or avoid any interference or disruption with normal production activity. Such designated Business Representative shall comply with the security regulations as required of all other facility visitors.


Article IV Non-Discrimination


The provisions of this Agreement shall apply to all employees covered by this Agreement, without discrimination on account of race, color, national origin, sex, creed, marital status, veteran status, handicap status, or age contrary to the Age Discrimination Act of 1967, as amended. The Company will not interfere with, restrain, or coerce the employees covered by this Agreement because of membership in or activity on behalf of the Union.


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Article V Non-Interruption of Work


Section 1.0


During the term of this Agreement, there shall be no lockouts by the Company and the Union agrees that neither it nor any of the employees covered by this Agreement will call, cause, instigate, engage in, promote, foment, or ratify a strike, stoppage, slowdown, or any interference with normal production of any kind whatsoever.


Section 2.0


It is agreed that violation of this Article by any employee shall be considered grounds for disciplinary action up to and including discharge of such employee for cause.


Article VI Seniority


Section 1.0 Probationary Period


A new employee will be a probationary employee for a period of sixty (60) days after the employee's date of hire. The Company shall have the right, upon agreement of the Union to extend the probationary period for an additional thirty (30) days whenever deemed necessary. If an employee is absent from work due to a Worker's Compensation injury or on Worker's Compensation light or limited duty, the employee's probationary period shall be extended by the period of such absence or light duty assignment. During the probationary period, the Company may discharge a probationary employee, with or without cause, and such action shall not be the subject matter of any grievance thereunder. Upon successful completion of the probationary period, the employee's seniority shall date from the date of hire.


Section 2.0 Definition of Seniority


Seniority is deemed as an employee's length of service with the Company. The department that an employee is assigned to at the time of hire is the employee's "home department". An employee continues to accrue seniority in the employee's home department. An employee temporarily transferred to another department remains assigned to the employee's "current department." If an employee is permanently transferred (via job bid) to another department, then the employee will thereafter accrue seniority in the reassigned department. An employee retains all seniority accrued in each department that the employee has been permanently assigned to during the employee's continuous employment by the Company.


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Section 3.0


An employee with seniority rights who is promoted to a non-bargaining unit position shall retain bargaining unit seniority which was accumulated at the time he/she was promoted to any non-bargaining unit position. However, all time spent working in such a non-bargaining unit position will not accumulate bargaining unit seniority.


During the initial twelve (12) months immediately following the date of such promotion, the promoted employee shall retain the right of re-entry into the bargaining unit in the event of demotion, layoff resulting from lack of work or should the employee change his/her mind and wish to return to an hourly bargaining unit job. This right of return with prior seniority rights expires after twelve (12) months from the date of promotion.


Section 4.0 Termination of Seniority


The seniority and employment status of an employee shall terminate for any of the following reasons:


(a) Voluntary quit by the employee.
(b) Discharge for cause.
(c) Three (3) consecutive work days of unreported absence without a bona
fide reason, acceptable to the Company, for not reporting such
absence.
(d) Failure to report for work within three (3) working days after
release by the attending doctor when an employee is on a compensable
injury or illness leave of absence.
(e) Failure to report for work when recalled from lay off within five
(5) working days after the date of notice from the Company.
(f) Failure to return to work at the end of any leave of absence.
(g) If the employee has performed no work for the Company
for a period of one year.


Section 5.0 Layoff


If there is a layoff in a department, an employee that is affected shall be transferred in inverse order of previous assignments to a department in which an employee has departmental seniority greater than another employee in that department. The employee being transferred must be able to demonstrate that the employee's skill and ability is relatively equal to the incumbent employee to be displaced by the employee being transferred. If the employee is unable to displace a less senior employee, m a previously held department the employee will use their plant seniority to displace the least senior employee in their home department. If the employee cannot displace the least senior employee in their home department; then the employee will be


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placed into an entry level position that their plant seniority will allow them to hold.


Section 6.0 Recall


The recall of employees from layoff will be in reverse order of the layoff. An employee recalled to work shall be notified by certified mail, return receipt requested, addressed to the employee at the employee's last known address on the Company's records, or the employee may be recalled by telegram or telephone. Upon receipt of notice to return to work, an employee shall contact the Company within two (2) working days, indicating the employee's intent to return to work and shall report for work within five (5) working days after the date of notice from the Company.


Recall Preference Election Form


In connection with your layoff which was effective __________________, below indicate your choice for recall.


Please check one.


________ I wish to be recalled to perform any entry level position when my
seniority would allow me to return.


________ I wish to be recalled to perform in a previously permanently
assigned position I've held when my seniority would allow me to
return to such a position.


________ I wish to be recalled to perform my current position 2& when my
seniority would allow me to return to it.


My signature below acknowledges my understanding of the following recall conditions:


1. My recall will be subject to the choice I elected above along with my
eligibility for recall at such time.


2. Regardless of my above election I understand I will be recalled to work
before any new employees are hired into positions for which I am qualified
to perform.


3. If I later wish to change my above choice, I must do so in writing in
person at the Human Resources Department. Any change of my choice will not
become effective until after five (5) working days following such change.


Employee Signature:___________________


Date:___________________


Section 7.0 Job Bids


Job bids will be posted for all new or vacant hourly positions.


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*Bids will be posted on the employee bulletin board for three (3) working days.


*Bids will be awarded by seniority under the following
criteria:


-The senior employee will be awarded the bid if he/she
has the skills and ability to perform the job or has
successfully completed a company training program.


-If the employee has not been awarded another job bid
in the last six (6) months.


-Certification for forklifts must be completed prior to
the bid coming down.


*Once a job bid has been taken down and awarded, the awardee cannot
withdraw from the bid (employee has three (3) days while the bid is on the
board to investigate the open position), *Once transferred if an employee
cannot perform the job, he/she will be returned to their previously held
position if open or any open position for which they are qualified.


Lead positions are chosen by criteria other than seniority. Seniority will be the determining factor if two (2) candidates are equally qualified in all job requirements.


Example: Leads/Trainers


Employee's entire employment record is considered: * Absenteeism


* Team effort
* Communication skills
* Follows company policies
* Skill (written and/or oral test may be given)


Highly skilled operations are awarded based on skill and ability demonstrated via performance test. Seniority will be the determining factor if two (2) candidates are equally qualified in all job requirements.


Job Bids. If a job classification within a department on any shift becomes open, the senior employee in the same classification will be given the opportunity to fill the shift opening, provided such a transfer does not adversely affect normal operations.


Section 8.0 Training


The Company encourages employees to enhance their skills through job relatedness training programs offered by Everest & Jennings.


Time spent in training programs not offered during the employees normal work hours Will not be paid by the Company. At no time will overtime premium be paid for employee attendance in training initiated by the employee.


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Section 9.0


Management reserves the right to temporarily transfer employees to any job deemed necessary. The Company will make every attempt to select employees based on seniority, provided they have the skill and ability to perform the work available.


Temporary transfers shall not exceed thirty (30) work days without mutual agreement between the Union and the Company. Temporary transfers due to leave of absence are not bound by the thirty (30) day restriction. The Chief Steward or designate shall be informed of all temporary transfers.


Article VII Hours of Work


Section 1.0


Forty (40) hours per week, Monday through Friday, eight (8) consecutive hours per day exclusive of an unpaid lunch period, shall constitute a normal work week. It is understood, however, that the Company does not guarantee to provide forty (40) hours of work weekly or eight (8) hours of work daily to any employee. At the execution date of this Agreement, the shift starting times are as follows: 1st shift 6:00 A.M.; 2nd shift 3:00 P.M. The Company may change these starting times during the term of this Agreement and may vary such starting times for different individuals, groups or departments, but the Union will be advised in advance.


Section 2.0 Break/Lunch Periods


Two (2) rest periods will be given to the employees, one (1) in the first half of the shift consisting of fifteen (15) minutes, and one in the second half of the shift consisting of ten (10) minutes. A thirty (30) minute unpaid lunch period shall be provided as near as practical to the middle of the shift.


Article VIII Overtime


Section 1.0


All work performed in excess of eight (8) hours during a day or in excess of forty (40) hours during the work week shall be paid for at the rate of time and one half (1-1/2). All work performed on Sunday shall be paid for at the rate of double time, provided such employee worked a minimum of forty (40) hours in that work week and all scheduled hours on Saturday. Holiday and vacation time will be considered as a day worked for computation of overtime pay.


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Section 2.0


There shall be no pyramiding of overtime rates. It is also agreed that overtime and other premiums shall not be paid more than once for any hour worked.


Section 3.0 Overtime Notice


The Company recognizes that it is in the best interest of the employees and the Company to have as much notice of overtime as possible. The parties also recognize, however, that because of customer demands, it is not always possible to give advance notice of overtime. Whenever possible the Company agrees to post a notice of Saturday or Sunday overtime by 11:00 A.M. on the preceding Thursday; provided that if conditions change the Company may cancel such overtime on Friday. Notice of week day overtime will be given at least one full shift in advance; provided, however, because of customer demands, employee absenteeism, or other such emergencies, overtime can be scheduled without such notice upon notification to the Chief Steward or other union official of the reason therefore. (Second shift employees working a full shift on Friday will not be required to report until eight (8) hours have elapsed since the end of the shift on Friday. It must be understood, however, such employees win work the full scheduled number of hours, as posted, on Saturday).


Section 4.0 Overtime Assignment


Preference for overtime work shall be given to employees (excluding probationary employees) regularly employed on such job or operation and where less than all the employees regularly employed on such job or operation are needed for overtime work. Preference for such work shall be in the first instance given to employees in order of seniority. In the event an insufficient number of employees choose to work the overtime, then the least senior employee shall be required to work. Nothing in this paragraph shall be construed to require the Company to pay twice for the same work done; if the parties agree that a qualified employee has been neglected as to the offer of overtime, his/her remedy shall be the offer of additional future overtime. Where practical overtime will be distributed equally on a rotational basis. It is agreed that in order to equally distribute overtime, the principle of availability for work must prevail. In view of the above, if an employee is offered overtim
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