UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C.
20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF
1934
Date of
report (Date of earliest event reported) May 8,
2008
LSB INDUSTRIES, INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-7677
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73-1015226
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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16 South Pennsylvania, Oklahoma
City, Oklahoma
(Address of principal executive offices) |
73107
(Zip
Code) |
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Registrant's telephone number,
including area code (405) 235-4546
Not applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Section
1 – Registrant’s Business and Operations
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Item
1.01
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Entry into a Material
Definitive Agreement.
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On May 8,
2008, LSB Industries, Inc. (the “Company”), received a fully
executed new labor contract signed by El Dorado Chemical Company, a
subsidiary of the Company, and International Association of Machinists and
Aerospace Workers AFL-CIO on behalf of Local No. 224. The Agreement
has an effective date of October 17, 2007 and expires October 16,
2010. A copy of the Agreement is attached as Exhibit 99.1 hereto and
is incorporated by reference in this Item 1.01.
Item
9.01. Financial Statements and Exhibits
(d)
Exhibits.
Exhibit Description
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99.1
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Agreement,
dated effective October 17, 2007, between El Dorado Chemical Company, and
International Association of Machinists and Aerospace Workers AFL-CIO on
behalf of Local No. 224 and El Dorado Chemical
Company.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Dated: May
14, 2008
LSB
INDUSTRIES, INC.
By:
/s/ Tony M. Shelby
Name: Tony
M. Shelby,
Title: Executive
Vice President and
Chief
Financial Officer
AGREEMENT
between
EL DORADO
CHEMICAL COMPANY
and
INTERNATIONAL
ASSOCIATION OF
MACHINISTS AND AEROSPACE WORKERS,
AFL-CIO
LOCAL NO. 224
MACHINISTS AND AEROSPACE WORKERS,
AFL-CIO
LOCAL NO. 224
Effective:
October 17, 2007
EL DORADO
CHEMICAL COMPANY
El Dorado, Arkansas
El Dorado, Arkansas
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1
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APPLICATION
OF AGREEMENT
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1
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PERIOD
OF AGREEMENT
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1
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MANAGEMENT
RIGHTS CLAUSE
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1
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CHECK-OFF
OF UNION DUES
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2
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SENIORITY
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2
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Section
1.
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Length
of Service
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2
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Section
2.
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Order
of Seniority
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2
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Section
3.
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Eligibility
for Seniority
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3
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Section
4.
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Filling
Vacancies
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3
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Section
5.
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Qualifications
for Job
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4
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Section
6.
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Seniority
List
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5
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Section
7.
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Seniority
Accrued
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5
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Section
8.
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Seniority
- Outside Assignments
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5
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Section
9.
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Discharges
and Reemployment
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5
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Section
10.
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Status
of Employees Laid Off
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6
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Section
11.
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Loss
of Seniority
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6
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HOURS
OF WORK AND OVERTIME
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7
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Section
1.
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Hours
of Work
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7
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Section
2.
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Overtime
and Call-Out Pay Rates
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7
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Section
3.
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Shift
Change Notice
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8
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Section
4.
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Meal
Time
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8
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Section
5.
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No
Reduction of Work Week as Result of Overtime
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9
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Section
6.
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Computation
of Overtime
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9
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Section
7.
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Distribution
of Overtime and Call-Out Time
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9
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Section
8.
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Call-Out
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9
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Section
8A.
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Advance
Scheduling of Overtime
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10
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Section
8B.
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Right
to Assign Qualified Personnel
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10
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Section
9.
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Holiday
Pay
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10
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Section
10.
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Reporting
for Work and Not Used
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11
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WAGE
RATES AND CLASSIFICATIONS
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11
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Section
1.
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Wages
and Pay Period
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11
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Section
2.
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Changes
in Classification of Work
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11
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Section
3.
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Mechanic
Classifications, Opportunities and
Training
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12
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HANDLING
OF GRIEVANCES
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13
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Section
1.
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Routine
Submission
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13
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Section
2.
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Arbitration
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13
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SHOP
COMMITTEE AND STEWARDS
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14
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Section
1.
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Shop
Committee
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14
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Section
2.
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Stewards
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14
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LEAVE
OF ABSENCE
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15
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Section
1.
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Personal
Business
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15
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Section
2.
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Union
Business
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15
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Section
3.
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Sickness
or Accident
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15
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Section
4.
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Notice
to the Company
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16
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Section
5.
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Military
Reserve Training
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16
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VACATIONS
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16
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MILITARY
LEAVE
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18
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Section
1.
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Military
Selective Service Act
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18
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Section
2.
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Pay
in Lieu of Vacation
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18
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PHYSICAL
EXAMINATIONS
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19
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Section
1.
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Periodical
Examinations
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19
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Section
2.
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Certificate
of Physical Fitness
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19
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Section
3.
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Dispute
Resolution
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19
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MISCELLANEOUS
AND GENERAL
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19
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Section
1.
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Tool
Check-In Time
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19
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Section
2.
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Bulletin
Board
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19
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Section
3.
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Discrimination
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20
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Section
4.
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Wage
Rate Changes
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20
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Section
5.
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Safety
Provisions
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20
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Section
6.
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Discharges
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20
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Section
7.
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Recess
Period (Smoking)
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20
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Section
8.
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Jury
Duty
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21
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Section
9.
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Termination
Pay
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21
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Section
10.
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Contract
Work
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21
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Section
11.
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Technical
and Supervisory Employees
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21
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Section
12.
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Minor
Maintenance
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21
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Section
13.
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Minor
Operating Functions
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22
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Section
14.
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Uniforms
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22
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VALIDITY
OF CONTRACT
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22
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NOTICE
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22
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FUNERAL
LEAVE
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23
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GROUP
INSURANCE
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23
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NO
STRIKE OR LOCKOUT
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25
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SERVICE
WITH COMPANY
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25
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RETIREMENT
AGE
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26
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CHANGE
OR MODIFICATION OF AGREEMENT
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26
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TERMINATION
OF AGREEMENT
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26
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BASIC HOURLY WAGE RATE
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28
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RATE
CHANGES DURING TERM OF AGREEMENT
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28
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CLOTHING
ALLOWANCE
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28
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RECOGNIZED
MAINTENANCE WORK GROUPS
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29
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This Agreement is made and entered into
by and between EL DORADO CHEMICAL COMPANY (hereinafter referred to as the
“Company”), and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE
WORKERS, AFL-CIO, LOCAL NO. 224 (hereinafter referred to as the “Union”), which
the Company recognizes as the sole bargaining agent for the Maintenance
employees of the Company at its chemical plant located north of El Dorado,
Arkansas, who are eligible for membership in the Union in accordance with the
Labor Management Relations Act of 1947.
Our future success and security
requires that we foster a plant culture which underscores the importance of
teamwork and focuses on customer satisfaction, methods improvement, demands
mutual respect and promotes high morale. We must be prepared to meet
the needs of changing circumstances and seize opportunities
provided. The Company, the Union and all employees are committed to
doing so.
We appreciate qualities and values such
as pride in what we do, taking ownership of responsibility, dedication,
cooperation, efficiency and optimism. Everyone who depends upon EDC recognizes
the importance of creating and maintaining a safe and clean workplace and wants
a plant which promotes fair treatment, quality work, and productive, profitable
and efficient operations. We each accept and share the responsibility
to do our parts to make that happen.
ARTICLE
I
APPLICATION OF AGREEMENT
APPLICATION OF AGREEMENT
The Company hereby recognizes the Union
as the exclusive bargaining agency for the employees of the Company at said
plant who work in the capacities hereinafter stated in this
Article I.
(a) All
Maintenance employees, as described in Exhibit "A", engaged in the installation,
maintenance and repair of machinery and equipment, but excluding all production,
chemical and operating employees, shipping attendants, office and clerical
employees, managers, supervisors and guards.
PERIOD
OF AGREEMENT
This Agreement shall remain in full
force and effect for a three year contract term commencing October 17, 2007, at
12:01 a.m., and ending 12:00 midnight, October 16, 2010. At
reasonable times after August 1, 2010, the parties will meet to attempt to
negotiate a new contract to be effective for the period beginning after
midnight, October 16, 2010.
The Union expressly recognizes that the
Company has the exclusive responsibility for and authority over (whether or not
the same was exercised heretofore) the management, operation and maintenance of
its facilities and, in furtherance thereof, has, subject to the terms of this
Agreement, the right to determine policy affecting the selection, hiring, and
training of employees; to direct the work force and to schedule work; to
institute and enforce reasonable rules of conduct; to assure discipline and
efficient operations; to determine what work is to be done, what is to be
produced and by what means; to determine the quality and quantity of
workmanship; to determine the size and composition of the work force; to
determine the allocation and assignment of work to employees; to determine the
location of the business, including the establishment of new locations or
departments, divisions, or subdivisions thereof; to arrange for work to be done
by other companies or other divisions of the Company; to alter, combine, or
eliminate any job, operation, service, or department; to sell, merge or
discontinue the business or any phase thereof; provided, however, in the
exercise of these prerogatives, none of the specific provisions of the Agreement
shall be abridged. The Company will not use the vehicle of
subcontracting for the sole purpose of laying off employees or reducing the
number of hours available to them.
ARTICLE IV
CHECK-OFF OF UNION DUES and UNION MEMBERSHIP
CHECK-OFF OF UNION DUES and UNION MEMBERSHIP
Upon receipt of a signed authorization
by an employee requesting deductions from his wages for his monthly union dues,
the Company agrees to honor such authorization according to its terms during the
life of this Agreement. The form shall be furnished by the
Union.
The Financial Secretary of Local 224,
IAM-AW, shall, from time to time, notify the Company in writing of the amount of
the monthly deduction to be made, from time to time, under this
authorization. All money so deducted by the Company shall be paid to
the Union on or before the end of the month during which deductions are
made. Upon receipt of written request by current employees as of
October 17, 2007, the Company shall, after thirty (30) days’ notice, discontinue
dues deduction.
ARTICLE V
SENIORITY
SENIORITY
Section 1. Length
of Service.
Length of service in the bargaining
unit and with the El Dorado Plant shall, in that order, govern the promotion,
demotion, and transfer of employees.
Section 2. Order
of Seniority.
An employee's seniority shall be
determined as follows:
Order of
Importance Seniority
1st
Bargaining Unit
2nd Plant
Section
3. Eligibility for Seniority.
An employee shall be first entitled to
seniority in the bargaining unit when he has been continuously employed in that
unit for 180 days; his seniority dating from the date of the beginning of such
employment.
However, an employee who has been
employed in the bargaining unit, who has been laid off prior to his having been
employed therein for 180 days continuously, and who is reemployed in the
bargaining unit within 180 days from the date upon which he is laid off, shall,
upon such reemployment, be entitled to have the number of days which he has
worked in the bargaining unit, during the period of his most recent previous
employment herein, included in any subsequent computation of his seniority in
the bargaining unit and shall be entitled to seniority when he has accrued 180
days on that basis.
The Company shall have the right to
layoff or discharge, without cause, any employee who has not worked in the
bargaining unit a sufficient length of time to gain seniority, and such action
on the part of the Company shall not be the subject of a grievance on the part
of the Union under any provision of this Agreement.
Section
4. Filling Vacancies.
(a) Temporary
and permanent vacancies will be filled only when the Company sees a need to fill
the vacancy. In the event the Company sees a need to fill a vacancy,
it will be filled by the employee having the most bargaining unit seniority, who
desires the job, and who possesses a skill of the group in which the vacancy
occurs. Any person so promoted must accept the duties and
responsibilities of the job.
(b) When
there is a permanent vacancy in a group and the Company sees a need to fill that
vacancy, the Company shall post promptly, and keep posted for fifteen (15) days,
notice on its bulletin board of the job vacancy. It shall be the duty
of an employee who feels himself entitled to such job on account of his
seniority to file his sealed bid for such job with the Plant Manager or his
representative, and send a copy thereof to the Chairman of the Shop Committee
within said 15-day period. In order to be considered valid, a bid
must be signed, dated, and deposited in a locked box marked "I.A. of M. and A.W.
Bids" located at the plant entrance gate.
Immediately upon expiration of the
posting period of fifteen (15) days, the names of all bidders will be posted on
the bulletin board, and the bidder having the most seniority and who desires the
job shall be assigned to the group and receive the "C" Mechanic rate of pay if
he possesses the necessary skill. In the event no qualified bidder
possessing the necessary skill bids on the vacancy, the Company may hire a
qualified employee from the outside.
If he does not possess the skill, he
will be reduced to the rate that compares to his previous experience beginning
not later than the beginning of the work week following the week in which the
successful bidder is determined, provided the successful bidder is available to
report for work on that day.
If the group vacancy is not filled by
the procedure set forth above and the Company sees the need to fill the vacancy,
a first-year "E" Mechanic job will be posted for filling outside the bargaining
unit.
Notwithstanding any other provisions of
this subsection (b), it is agreed that the Company shall have the right at any
time during said 15-day posting period to withdraw the posting of a new job in
the event the Company decides that such job need not be filled.
(c) Should
an employee within a group who is entitled to a promotion desire to waive his
opportunity for that promotion, he shall do so by signing a waiver.
(d) In
the event that it becomes necessary to establish a permanent rotating shift the
Company will notify the Shop Committee to discuss the procedure and shift to be
implemented at least thirty (30) calendar days before establishing such
shift.
(e) In
addition to the hourly rates, employees who are regularly assigned to a specific
shift shall be paid a shift differential of forty cents ($.40) for each hour
worked on the evening shift and eighty cents ($.80) for each hour worked on the
graveyard shift. For payroll purposes, employees who are regularly
assigned to a three shift rotating schedule shall receive shift pay averaged
over all three shifts (forty cents ($.40) per hour).
NOTE: Maintenance
personnel who are not regularly assigned on a rotating shift basis or to the
evening or graveyard shift will receive shift differential in accordance with
the August 3, 1989, Letter of Understanding (regarding turnarounds and major
maintenance projects).
Section
5. Qualifications for Job.
(a) It
is not the intention of the parties to this Agreement that any employee shall be
permitted to work on a job when he is not qualified to perform the work which
that job requires. However, if, in the opinion of the Company, an
employee is not qualified for a particular job to which he would otherwise be
entitled by virtue of his seniority, and the Company determines that an
employee's application for the job shall be denied on the basis of his lack of
qualifications, the Company shall notify the Chairman of the Shop Committee and
the employee involved of their decision, at least five (5) days prior to the
date upon which any other employee is permanently assigned to the
job.
Section
6. Seniority List.
Seniority lists will be compiled on
April 1 and October 1 and will be available to all employees. One
copy of each seniority list will be furnished to the Shop
Committee.
Section
7. Seniority Accrued.
Each employee shall retain the
seniority accrued to him based upon actual service at the El Dorado
Plant.
Section
8. Seniority - Outside Assignments.
Any employee, after having established
seniority under the provisions of this Agreement, who is temporarily assigned to
another job by the Company (outside the bargaining unit) shall continue, for not
more than ninety (90) days per calendar year, on a cumulative basis, to accrue
seniority on his regular classification during such period of temporary
assignment. If such employee works more than ninety (90) days per
calendar year on a cumulative basis, he shall forfeit one (1) day of bargaining
unit seniority for each day in excess of ninety (90) days worked outside of the
bargaining unit during that calendar year.
Section
9. Discharges and Reemployment.
When there is a reduction in the number
of employees in the bargaining unit, the employee last employed in the
bargaining unit shall be the first employee laid off. The employee
laid off through no fault of his own, who has the greatest bargaining unit
seniority, shall (subject to the following provisions of this Article) be the
person first reemployed in the event additional employees are employed, provided
that the person is qualified to perform the duties of the job to which he would
be assigned on reemployment.
A person who has worked in the
bargaining unit sufficiently long to be entitled to seniority in that unit, and
who is laid off through no fault of his own, who has kept his current address on
file with the Company, and who continues to be entitled to seniority under the
terms of this Agreement shall (subject to the following provisions of this
Article) be given first consideration for reemployment.
If reemployment is available for any
such person, the Company shall so notify him by letter (with a copy of such
letter to the Chairman of the Shop Committee), addressed to him at his address
then on file with the Company, and he shall be allowed fifteen (15) days from
the date upon which said letter was mailed, or until he no longer retains his
accrued seniority as provided in Section 10 of this Article V (whichever is the
shorter period), in which to notify the Company in writing of his desire to
return to work. In the event he delivers such notice, he shall be
allowed seven (7) days from the date of the delivery thereof to report for work;
provided, however, if the employee involved is, on the date which he would
otherwise be required to report for work totally disabled to work, he shall, on
or before that date, deliver to the Company a statement in writing from a
licensed
physician
stating that he is so disabled, in which event the period within which he shall
be permitted to return to work shall be extended ninety (90) days.
Section
10. Status of Employees Laid Off.
The accrued seniority of an employee
who has been laid off through no fault of his own shall continue to exist from
the date of his layoff for the following periods:
Years of
Service Period Seniority to
Exist
0-180
days -0-
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181
days to 2 years
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Length
of previously accrued seniority
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2
years or more
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2
years
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Section 11. Loss
of Seniority.
Seniority shall be lost and employment
terminated for any of the following reasons:
(a) Quitting.
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(b)
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Absence
from work for three (3) consecutive days without having notified the
Company, unless physically impossible to do
so.
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(c)
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Discharge
for just cause.
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(d)
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Failure
to return at the expiration of a leave of absence or
vacation.
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(e)
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If
an employee misrepresents the reason for requesting a leave of
absence.
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(f)
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If
an employee fails to file for reinstatement within ninety (90) days
following discharge from the U.S. Military
Service.
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(g)
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Failure
to return to work from layoff within the time specified in Section 9 of
this Article.
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(h)
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At
the end of the period specified in Section 10 of this Article, or upon
earlier rejection after layoff of an offer of reemployment in a
classification equal to the classification from which laid
off.
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Section 1. Hours
of Work.
(a) Regular
base hours of work shall be eight (8) hours per day and forty (40) hours per
week.
(b) The
work week shall begin at 12:01 a.m. each Monday and end at 12:00 midnight the
following Sunday. The work day shall begin at 12:01 a.m. and end at
12:00 midnight.
(c) The
work week shall normally be five (5) consecutive 8-hour days, Monday through
Friday, and will normally begin work at 7:00 a.m. and end at 3:30 p.m. with a
30-minute lunch period from 12:00 noon to 12:30 p.m.
(d) No
employee shall be required to work more than twelve (12) hours during any normal
work day except in case of an emergency.
(e) All
employees shall be expected to report to work promptly at the scheduled
time. No employee shall be permitted to work if such employee reports
for work more than one and one-half (1-1/2) hours after his regular scheduled
reporting time, unless such delay has been previously excused by the
Company.
(f) No
employee shall be allowed to work more than sixteen (16) continuous hours nor
more than sixteen (16) hours in any one day except in the case of an
emergency. However, an employee will be allowed to complete his
regularly scheduled hours of work as provided in Sections 5, 8 and 10 of this
Article VI.
(g) Maintenance
overhauls may be staffed on 8-hour, 10-hour, or 12-hour shifts as may be
necessitated by the needs of the operation.
The Company will specify and select the
number and classifications of personnel on each shift by work group
classification for each particular overhaul on a shift
basis. Preference to shifts will be governed by the employee's
bargaining unit seniority. Shift change notice will be handled as
outlined in Article VI, Section 3. In the event there are
insufficient qualified personnel on each shift, the Company shall have the right
to assign qualified personnel as needed.
Section
2. Overtime and Call-Out Pay Rates.
(a) Overtime
and call-out rates shall be one and one-half (1-1/2) times the regular rate and
shall be paid for all work performed in excess of forty (40) hours per week,
continuous actual work in excess of eight (8) hours, and for all work performed
as a result of call-out and for hours worked outside an employee's regularly
scheduled hours.
(b) Any
employee who works over, beyond his regular scheduled work day, shall be paid a
minimum of three (3) hours at straight time. If the employee is
required to stay over beyond his regular scheduled work day to attend meetings
or to receive training, and no production work is involved, he will receive pay
for actual time spent at one and one-half (1-1/2) times his regular rate of pay,
providing he has received a minimum of twenty-four (24) hours' notice in
advance.
(c) No
employee shall work overtime without the approval of his Foreman.
Section 3. Shift
Change Notice.
(a) The
Company shall pay each employee one and one-half (1-1/2) times his regular rate
of pay for the first shift of a rearranged work schedule if the employee whose
shift is changed shall not have been notified of the change at least twenty-four
(24) hours prior to the beginning of said first shift. If notice of
employee's shift change shall be posted on his regular day off, notice of the
change shall be posted at least seventy-two (72) hours prior to the beginning of
said first shift. Any notice required to be given to an employee
under the provisions of this Section 3 may be given by written notice posted on
the general bulletin board of the Company and the bulletin board of the Union,
and each employee named in any notice shall be deemed to have received the
notice at the time copies of said notices are posted on said
boards.
(b) The
changing of an employee's shift, incident to the return of an employee from
sickness or accident, shall not be considered a change in shift within the
meaning of this Section 3, unless the absent employee has given the Company at
least seventy-two (72) hours' notice of his intention to return to work and the
time at which he will return to work by notifying his supervisor.
(c) The
changing of an employee's shift from 7:00-3:30 to 7:00-3:00, or from 7:00-3:00
to 7:00-3:30 will not constitute a shift change.
(d) A
change in shift at the request of an employee shall not be considered a change
in shift for the purpose of this Section 3.
(e) No
employee shall lose any time from his normally scheduled 40-hour week occasioned
by any shift change.
Section 4. Meal
Time.
(a) If
a "Day Man" is instructed to and continues to work overtime past 6:00 p.m., he
shall be allowed a 30-minute period beginning at 6:00 p.m. for supper on Company
time; and if said "Day Man" then continues to work additional overtime, he shall
be allowed a 30-minute lunch period on Company time; each such period to begin
at the end of four (4) hours of additional continuous overtime worked after 6:30
p.m.
(b) Any
employee called for work outside of his regular working hours, who is required
to work more than four (4) consecutive hours outside his regular hours,
shall be allowed a 30-minute period for a meal on Company time at the end of the
fourth consecutive hour and at the end
of each
consecutive 4-hour period thereafter that said employee continues to work
outside his regular hours.
Section 5. No
Reduction of Work Week as Result of Overtime.
No employee will be required to take
any time off from his regular work week because of overtime worked in that or
any other week. If an employee is required to work on his day off, he
shall not be forced to take another day off in lieu thereof.
Section
6. Computation of Overtime.
For the purpose of computing overtime
under this Article, the exact time worked, rounded to the nearest quarter hour,
shall be accounted for, which shall be paid for at the overtime
rate.
There shall be no duplicate payment for
daily overtime and weekly overtime. If daily overtime is greater in
any one work week, only daily overtime shall be paid, or if weekly overtime is
greater in any one work week, only weekly overtime shall be
paid. There shall be no pyramiding of overtime.
Section
7. Distribution of Overtime and Call-Out Time.
Overtime work opportunities shall
initially be distributed, as equitably as practicable, within each work group
where the overtime is required in accord with the Company's distribution
policy. The Company may then offer such work to employees in other
work groups who are qualified.
For the purpose of distributing
overtime, the Company will submit a list, biweekly, to the work group steward
showing the overtime worked, refused and overtime standing of each employee
covered within the group.
Each employee who is requested to
report for overtime duty shall report at the required time unless he shall first
obtain permission from his supervisor to be relieved of such duty.
Section
8. Call-Out.
An employee who is called out and
reports for work outside his regular working hours shall work until excused by
the person then supervising his work; provided that no one shall be required to
work longer than is provided in Section 1(d) of this Article. An
employee who is called out and reports for work shall be paid a minimum for four
(4) hours at time and one-half (1-1/2), even though the full four (4) hours may
not be worked because no work is available, or he does not work at all because
no work is available. An employee called for such work, who works
continuously until the beginning of his regular hours of work and continues to
work during the regular hours of his scheduled work, shall not be considered to
have had a change in shift within the meaning of Section 3 of this Article
VI.
A description of the work or jobs to be
done, or the problem necessitating the call-out, is provided as accurately as
possible by the supervisor in order that the person being called may judge: (a)
whether or not he has the ability to do the work, and (b) about how long he may
have to work. It is not intended to have a person come out on one
job, then surprise him with a list of additional jobs to be
done. However, due to emergencies, it cannot be guaranteed that he
will only be required to do what he was called for.
Notwithstanding the fact that an
employee has been called out for work, such employee shall perform his regular
work schedule during the remainder of the work week in which such call-out
occurs unless excused from such work.
If an employee is called out for work
and works until the beginning of his regular work schedule, the call-out will be
considered as ending at the beginning of his regular schedule.
Section
8A. Advance Scheduling of Overtime.
Overtime may be scheduled up to three
(3) weeks in advance of the actual time required. In the event the
scheduled overtime is cancelled, eight (8) hours' notice will be given or a
call-out will be paid.
Section 8B. Right
to Assign Qualified Personnel.
In the event overtime distribution and
call-out procedures do not provide the Company with sufficient,
qualified personnel to perform the overtime work, the Company shall have the
right to assign such work to qualified personnel. The performance of
such work is mandatory.
Section
9. Holiday Pay.
The following days shall be considered
holidays and normally no work will be performed on the designated holidays
except in cases of emergency, around-the-clock shift work, and in those crafts
where work is necessary for continued operations:
1. New
Year's Day
2. Good
Friday
3. Memorial
Day
4. July
Fourth
5. Labor
Day
6. Columbus
Day
7. Thanksgiving
Day
8. Day
after Thanksgiving
9. Last
work day before Christmas holiday
10. Christmas
Day
When any of these holidays fall on
Sunday, the following Monday will be observed as the holiday.
When any of these holidays fall on
Saturday, the preceding Friday will be observed as the holiday.
Each employee who is not required to
work and who does not work on a holiday shall be paid a bonus equivalent to
eight (8) hours at his regular rate at straight time pay, providing he has
worked his last scheduled work day immediately preceding the holiday and his
first scheduled work day following the holiday unless the failure to work these
days is because of confirmed illness or accident no more than five (5) work days
before or after the holiday, unless the employee was excused in advance by the
Company.
An employee who works on the holiday
will receive holiday pay equivalent to the actual hours worked on the holiday,
up to a maximum of twelve (12). The Company retains the right to
schedule employees to work and the amount of hours worked on
holidays.
Section
10. Reporting for Work and Not Used.
Except when no work is available due to
Act of God, such as fire, flood, explosion, or tornado, an employee who reports
for duty on his regular schedule shall be given the opportunity of working a
full 8-hour shift.
ARTICLE VII
WAGE RATES AND CLASSIFICATIONS
WAGE RATES AND CLASSIFICATIONS
Section 1. Wages
and Pay Period.
The regular pay periods for employees
subject to this Agreement will cover every two (2) scheduled work weeks, and
checks will be available to the men on their regular shifts on the Friday
following completion of the 2-week period.
Each employee who works during the
period beginning 12:01 a.m., October 17, 2007, and ending 12:00 Midnight,
October 16, 2010, shall be paid for his work in that classification on the basis
of the basic hourly wage rate for that classification shown on Exhibit "A" to
this Agreement. Each employee will be paid the applicable clothing
allowances provided on Exhibit "A" to this Agreement.
Section
2. Changes in Classification of Work.
(a) Each
employee covered by any classification is expected to perform any duties to
which he may be assigned within his classification or lower
classification.
(b) It
is understood and agreed by the parties hereto that two (2) work groups shall be
recognized under this Agreement. A tabulation of the groups with
explanatory notes is made in Exhibit "B," Part 1, which is a part of this
Agreement.
(c) All
Maintenance personnel may be assigned to do any jobs that they have the ability
to perform subject to the provisions of Article V, Section 5, and Article XIV,
Section 5, of the current contract.
(d) The
Company reserves the right to increase or reduce, at any time and from time to
time, the number of individuals employed in any group mentioned in Exhibit "B",
Part 1, to that number of individuals which, in the opinion of the Company, are
required to perform work in that group for maintaining the plant. Any
such increase or reduction of force in any group shall be made on the basis of
bargaining unit seniority in that group. The Company shall advise the
employee(s) affected seventy-two (72) hours in advance of any permanent change
in the number of persons who shall work in any classification.
Section
3. Mechanic Classifications, Opportunities and
Training
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(a)
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The
Company wants to provide growth and skills enhancement opportunities for
members of the bargaining unit. In that regard, it will create
new Mechanic classifications of Specialist I, Specialist II and Specialist
III. In addition, it will create a third classification of E
& I Specialist which will fall between current Specialists I and
II.
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(b)
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The
rates paid employees in the Mechanic Specialist I and III classifications
will be the same as the hourly rates currently paid E & I Specialists
I and II. The rates for the Mechanic Specialist II and new E
& I Specialist position will be the midpoint between the existing two
rates.
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(c)
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The
mutual benefit/objective of the new, higher paying classification is to
provide interested unit members with a chance to learn new skills or
enhance existing ones and provide them with opportunity for additional pay
for those in the classifications. The Company expects to
benefit by increased flexibility and efficiency, reduced reliance on
outside contractors, and be in a better position to recruit and retain
skilled personnel.
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(d)
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The
Company and the Union committee will have a collaborative discussion to
determine the skill sets required for each new position. Input
from the Union will be solicited and carefully considered in an attempt to
reach consensus on the appropriate standards and expectations for the new
jobs. In addition, the parties will work to reach agreement on
the procedures which will be used for an interested individual to achieve
certification in the new
classifications.
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(e)
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The
parties recognize and agree that the training component is critical to the
success of this initiative and will meet to consider the best, fair
methods of testing for
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competence
in relevant skill areas. Tests ultimately used will be relevant to the job
skills needed on site.
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(f)
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The
Company will include the current Mechanic progression testing program as
another focus of the training committee to be
established.
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(g)
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The
Company expects that the new positions, training and certification
programs above will be implemented not later than October 17,
2008. If not implemented by then, the parties agree to meet and
discuss reasons for the delay and attempt to complete the process as soon
as possible.
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ARTICLE VIII
HANDLING OF GRIEVANCES
HANDLING OF GRIEVANCES
Section
1
Nothing in this section shall prohibit
the informal discussion and settlement of grievances between an individual
employee and his supervisor. If so requested by the employee, a
representative of the Union, who may be an officer or steward, may be present at
such informal discussions. The formal grievance procedure shall be as
follows: The grievance will be reduced to the writing (on a form
supplied by the Company) and shall state clearly, contract violations or
causes. The Company will respond in writing at all
steps.
Step
1
If the complaint is not settled
informally, it may be submitted to his Maintenance Supervisor or his designee by
the aggrieved employee and/or his Union Representative within 10 days excluding
Saturday, Sunday and Holidays, of the aggrieved act. The supervisor
will give his answer within five days excluding Saturday, Sunday and
Holidays. Grievances settled in step 1 shall be on a non-precedent
setting basis.
Step
2
If the grievance is not settled in Step
1, the grievance may be referred within ten days, (following receipt of the
Supervisor’s answer in Step 1) to the Maintenance Manager or his
designee. Maintenance Manager or his designee will meet with the shop
steward for the discussion of the grievance and after meeting with the shop
steward the Maintenance Manager or his designee will give his answer within
seven days, excluding Saturday, Sunday and Holidays.
Step
3
If the grievance is not settled in Step
2, the grievance may be referred within ten days, excluding Saturday, Sunday and
Holidays (following receipt of the Maintenance Manager or his designee’s answer
in Step 2) to the General Manager who will meet with the Union Officers and the
International
or District Lodge Representative after the meeting with the Union Officers/DBR
the Company will answer within ten days, excluding Saturday, Sunday and
Holidays.
a) If
the grievance is not settled in Step 3, the grievance may be referred within 30
days, excluding
Saturday, Sunday and Holidays, (following receipt of the Company’s answer in
Step 3)
to arbitration. If agreeable to both parties, mediation may be used
prior to arbitration to
resolve the grievance.
The party desiring arbitration will
make application to the Federal Mediation and Conciliation
Service for a panel of seven arbitrators. The Company and the Union
shall alternatively strike until one arbitrator is left. The notice
to the FMCS shall contain a requirement that the arbitrator be available to hear
the case in 90 days. Both the Company and the Union shall have the
right to reject two (2) panels submitted by the Federal Mediation and
Conciliation Service. The decision of the arbitrator shall be final
and binding upon all parties to this agreement. The arbitrator shall
have no power to add to or subtract from or modify any of the terms of this
agreement or any agreement made supplementary hereto, nor to establish or change
any rate, but shall interpret and adjust grievances in accordance, herewith, and
shall render his decision within 30 days from the close of the hearing or date
post hearing briefs may be filed. Such decisions are to be put into
effect within 30 days of receipt. The cost of the arbitrator shall be
borne equally by the parties.
b) Time
limits as provided herein may be extended by mutual agreement.
If the Union considers that an employee
has been discharged unjustly, the Committee shall file such claim within 15
days, excluding Saturday, Sunday and Holidays, with the Company at Step 3 in
this procedure.
ARTICLE IX
SHOP COMMITTEE AND STEWARDS
SHOP COMMITTEE AND STEWARDS
Section 1. Shop
Committee.
The Shop Committee, composed of four
(4) members from the employee work force, and management representatives, shall
hold regular meetings on a bimonthly basis. It shall be the
responsibility of the Shop Committee to submit a written agenda of each
subject it wishes to discuss with the Company no less than forty-eight (48)
hours before the day of any such meeting. Only three (3) employees in
any one group at any one time shall be a member of the
Committee.
Section
2. Stewards.
(a) A
Steward and an assistant Steward may be elected in each work group by the
employees of that group, and the Union shall submit to the Company, in writing,
the names of each person so designated. The Company shall consider
the person so designated as Steward and assistant Steward of each work group
until notified, in writing, to the contrary.
(b) Duly-elected
Stewards or Committeemen shall be deemed to possess top ranking seniority for
purposes of layoff and recall rights within his respective work group or
classification while acting as such.
ARTICLE X
LEAVE OF ABSENCE
LEAVE OF ABSENCE
Section
1. Personal Business.
If an employee desires to be off on
personal business (not emergencies), he may do so with the consent of the
Company so long as he does not desire to be off over two (2) work weeks and
provided that he gives the Company forty-eight (48) hours' notice of his desire
to be absent and the length of time he desires to be off. Upon
completion of such leave, he will resume employment on the basis of
uninterrupted service.
Section 2. Union
Business.
(a) The
Company shall, upon a minimum of thirty (30) days' prior written request from an
employee and the President of Local No. 224 of International Association of
Machinists and Aerospace Workers, grant a leave of absence, extending not longer
than fourteen (14) days, to the employee applying for such leave in order that
he may, during that leave, engage in work pertaining to the business of Local
No. 224 of International Association of Machinists and Aerospace
Workers.
Such a leave shall not be granted to
more than one (1) employee at any one time. Such employee shall not
be granted such a leave for more than an aggregate of thirty(30) days in any one
(1) calendar year.
(b) The
Company shall grant (upon a minimum of sixty (60) days advance prior written
request of an employee and the President or Vice President of International
Association of Machinists and Aerospace Workers) a leave of absence for a period
not to exceed one (1) year in order that the employee requesting such leave may,
during the period of such leave, work as any employee of International
Association of Machinists and Aerospace Workers. Not more than one
(1) employee shall be permitted to be absent from work at any one time on any
such leave.
Section
3. Sickness or Accident.
If an employee who has established
seniority is out of service due to occupational injury or occupational disease
suffered or contracted while he is in the employment of the Company, he shall
retain his seniority accrued at the date of his disability and continue to
accrue seniority for a period of twenty-four (24) months or length of
previously-accrued seniority, whichever is less, during the period of his
disability as a result thereof. If an employee who has established
seniority is out of service due to nonoccupational injury or disease suffered
while he was in the employment of the Company, he shall retain his accrued
seniority for a period of twenty-four (24) months and will accrue seniority in
the classification in which he was last regularly employed for a period of one
(1) year.
Under either of the above conditions,
if an employee should accept an equal or better job elsewhere, his seniority
shall be cancelled.
Section 4. Notice
to the Company.
When an employee becomes aware of the
fact that he is going to be absent from work due to sickness, accident, or other
emergency, he must notify his supervisor as far in advance of his scheduled
shift as he/she has knowledge of such intended absence, but no less than one (1)
hour before the time he is due to report to work. In the event the
employee cannot contact his Supervisor, it is permissible to contact any member
of Management.
Section
5. Military Reserve Training.
(a) Any
regular employee (not probationary) may be granted a special leave of absence
for a period not to exceed fourteen (14) days, plus a reasonable period to cover
travel time, when required for the purpose of engaging in a training program for
Enlisted Reserve, Reserve Officers, or National Guard Encampment,
provided:
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1.
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He
furnishes the Company with a copy of orders from the military authorities
calling him for duty; and
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2.
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He
gives advance notice to his immediate supervisor so that arrangements may
be made for his replacement during the period of his
leave.
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(b) Only
one (1) leave of absence for Military Reserve Training shall be granted to any
employee during a calendar year.
When an employee is out of work for the
reasons set forth herein, FMLA and relevant insurance coverage will be applied
for the initial twelve (12) weeks of his leave. After the initial
twelve (12) weeks, the employee will be entitled to continue health insurance
coverage and at costs pursuant to his COBRA rights which will begin upon
completion of the initial FMLA coverage.
ARTICLE XI
VACATIONS
VACATIONS
Section
1.
Normal vacation accruals will be
computed in accordance with the following provisions:
(a) Two
weeks (80 hours) - after having accrued one (1) year's Company
seniority;
(b) Three
weeks (120 hours) - during the calendar year in which an employee accrues six
(6) year's plant seniority;
In computing length of service for
vacations, time spent working at the El Dorado Plant will be used.
Section
2.
Those employees who had previously
accrued or who will accrue, during the term of this Agreement, twelve (12) years
or more Company seniority shall be entitled to a vacation accrual of four weeks
(160 hours). Thereafter, and for all other employees, the maximum
vacation accrual shall be as provided in Section 1.
Section
3.
(a) Normally,
all vacations will begin with the first work day of the work week
schedule.
(b) Vacation
pay shall be based upon the straight time rate of an employee's regular
classification at the beginning of the vacation and will be taken in accordance
with his established work schedule. If a holiday, as defined in
Article VI, occurs during an employee's vacation period, the employee will
receive pay for said holiday as defined in Article VI.
(c) Each
employee must take his vacation during the vacation year (January 1-December 31)
in which it falls due, subject to subsections (d) and (i) below.
(d) If
an employee is not permitted to take his vacation in any calendar year in which
it is due because the Company finds it not convenient to excuse him from work,
he shall be paid a sum equal to the sum to which he would have been entitled for
working at his regular job based on straight-time pay at normal working schedule
during the last part of that year equal to the number of weeks' vacation to
which he is entitled.
(e) Except
with special permission of the Company, no employee shall be permitted to begin
a vacation in any year within three (3) months of the date of the end of the
vacation taken by him during the preceding calendar year, and any employee who
has received pay in lieu of vacation for one (1) calendar year shall be entitled
to his next annual vacation before March 1 of the following year, if it is
practical for the Company to give him a vacation.
(f) An
employee who (a) resigns, (b) retires, (c) is laid off as part of a reduction in
forces, or (d) is granted a military leave under the provisions of Article XII,
at a time when he has earned vacation to that date but has not taken, nor
previously received pay in lieu of, shall be paid in lieu of any vacation he has
earned to that date but has not taken, nor previously received pay in lieu
of.
Computation of vacation under this
section will be earned at the rate of one-twelfth (1/12th) for each month from
employee's anniversary date. Sixteen (16) or more calendar days of
employment in any calendar month will be considered a full month in computing
vacation accruals.
(g) An
employee will not be eligible for overtime or call-out during the period
beginning with the first day of his vacation and until his first scheduled work
day following completion of his vacation.
(h) In
the event of the death of any employee who was then otherwise eligible for a
vacation but who had not taken it, a sum of money equal to pay in lieu of such
vacation shall be paid to the person(s) who shall be entitled to the personal
property of such decedent.
(i) No
employee shall receive pay in lieu of vacation except as provided in Article XI,
Section 2(d). However, when an employee is absent from work due to
authorized occupational injury or illness, or personal sick leave, and has not
returned to work by December 31, he may, at the Company's option, be permitted
to take his vacation or receive vacation pay between January 1, and April 1 of
the following year.
Section
4.
The vacation schedule will be initiated
January 2nd of each year for those eligible for vacation in that
year. Employees shall choose their vacation periods in order of their
bargaining unit seniority. The Company will, insofar as operations
permit, arrange by choice and by seniority the employee's request in the
vacation schedule. An employee not submitting his vacation preference
within a reasonable time after being contacted will have his vacation scheduled
during the year at a time convenient to the plant operations.
Normally, subject to operational
requirements, the Company will permit from each Maintenance Work Group, a
maximum of twenty (20%) percent of the active available employees to be on
vacation at the same time.
ARTICLE XII
MILITARY LEAVE
MILITARY LEAVE
Section
1. Military Service
The rights of employees of the Company
who enter Military Service during the term of this Agreement will be governed in
all respects by applicable laws.
Section 2. Pay in
Lieu of Vacation.
Each such employee who is entitled to a
vacation under the vacation policy of the Company at the time he leaves to enter
the Armed Forces, who elects not to take the vacation but to receive pay in lieu
thereof, shall, upon furnishing to the Company a certificate from his commanding
officer establishing the fact that he had been inducted into the military
service, be paid the amount of money he would have received had he taken his
vacation just prior to the beginning of his military leave.
Section
1. Periodical Examinations.
The Company may, from time to time,
require all employees to have periodical physical examinations by a doctor
selected by the Company. However, such examinations shall not be used
for the purpose of discriminating against an employee. Each employee
shall receive his regular rate of pay for all time required to be examined as
provided in this Section 1.
Section
2. Certificate of Physical Fitness.
In the case of an employee being absent
from work due to illness or physical impairment, he may be required to present a
certificate of physical fitness, signed by a licensed physician, before being
readmitted to work. This rule, however, shall not limit the right of
the Company to require physical examination by a physician in the Company's
service in exceptional cases of constantly recurring absence from
duty.
Section
3. Dispute Resolution.
Notwithstanding any of the provisions
of Article VIII of this Agreement, in case a dispute arises over the physical
fitness of an employee to return to work or continue to work, a board of three
(3) physicians shall be selected; one by the Company, one by the employee, and
one selected by the two so named. The decisions of the majority of
this board shall be final and binding.
ARTICLE XIV
MISCELLANEOUS AND GENERAL
MISCELLANEOUS AND GENERAL
Section 1. Tool
Check-in Time.
Employees will be allowed fifteen (15)
minutes time to clean and check in their tools before quitting time, if such
action is required by them.
Section
2. Bulletin Board.
The Company shall maintain at the plant
entrance gate at the Chemical Plant a bulletin board which shall be designated
as "Local No. 224 Bulletin Board" and shall be for the use of the Union for
posting -- subject to the approval of the Company -- of any matters of interest
to or affecting the business of the Union. It is understood and
agreed that the posting of notices by the Union within the plant area will be on
this bulletin board only and will be posted by the Chairman of the Shop
Committee or his recognized representative. This bulletin board will
be locked with a key, released to the Chairman of the Shop Committee and to the
Company.
Section
3. Discrimination.
There shall be no discrimination by the
Company against any employee with respect to any conditions of employment on
account of his membership in this labor union, or on account of any activity
undertaken in good faith in his capacity as a representative of other
employees. The Union shall not discriminate against any employee who
is not a member of the Union.
Where the male gender is used in this
contract, it is intended to refer to both male and female. It is a
continuing policy of the Company and the Union that the provisions of this
Agreement shall be applied to all employees without regard to race, color,
religion, sex, physical disability, national origin, or age.
Section 4. Wage
Rate Changes.
There shall be no change in the basic
hourly wage rates set forth in Exhibit "A" to this Agreement, or in the clothing
allowance set forth in Exhibit "A" to this Agreement, during the term of this
Agreement.
Section 5. Safety
Provisions.
The Company shall continue to make
reasonable provisions for the safety and the health of its employees at the
plant during hours of their employment. Protective devices from
injury shall be provided by the Company. Employees, subject to this
Agreement, will abide by safe practice rules and regulations of the Company, and
failure to do so may be considered grounds for dismissal.
No employee shall be required to
perform services which, in the considered judgment of the Company and the Union,
seriously endanger his physical safety; his refusal to do such work shall not
warrant or justify discharge. If any employee refused to perform such
work, representatives of the Company and the Union shall immediately attempt to
decide the safety factor. Should they be unable to agree, the
decision of a representative of the Safety Department of the Company shall be
obtained. If the employee still feels an unsafe condition exists, he
will not be required to perform that given job, and the Company will have the
work done by any means it elects.
Section
6. Discharges.
It is agreed by and between the Company
and the Union that the Company may, without limitation upon its right to
discharge an employee for any other valid reason, discharge any employee,
subject to this Agreement, for the violation of any of the Company's rules or
regulations, which said rules and regulations heretofore have been approved by
both the Company and the Union.
Section 7. Recess
Period (Smoking).
Where men are required to work
continuously in restricted and confined areas where smoking is not permitted,
the Foreman is authorized to grant a recess of not longer than ten (10)
minutes
to employees upon request, providing in his judgment, work conditions permit;
however, no employee shall be granted more than two (2) such recesses in any one
(1) normal work day.
Section 8. Jury
Duty.
Each employee of the Company who is
called for service upon any grand jury, petit jury or coroner jury shall, after
furnishing to his Foreman, a certificate in evidence of his jury service, be
paid by the Company for each day which he serves upon said jury a sum equal to
the difference between the amount he would have earned if he had been required
to work for the Company on that day for the number of hours of his regular work
schedule and the jury pay he received, with the provision that no such payment
shall be made to an employee for jury service on any day during which, in
accordance with his regular work schedule, he would not have worked for the
Company.
Section
9. Termination Pay.
An hourly employee whose work comes
within the scope of the Fair Labor Standards Act, and who has been continuously
employed by the Company for one (1) year, shall, if discharged through no fault
of his own, receive a sum equivalent to forty (40) hours' straight time pay at
his regular rate, based upon his normal schedule of work, and twice that amount
if he has been employed by the Company for a period of five (5)
years. No employee shall receive such termination pay more than once
in any one (1) calendar year.
Section
10. Contract Work.
It is agreed that any classified work
covering maintenance and repair of equipment and machinery now being done by
employees of the Company shall not be contracted out as long as the Company has
the necessary equipment and as long as there are qualified men available to do
the work.
Section
11. Technical and Supervisory Employees.
The Company may use technical and
supervisory employees to install temporary test equipment to be used in
evaluating conditions and/or performance of plant facilities.
Section 12. Minor
Maintenance.
It is agreed that Operating Department
personnel will perform minor maintenance functions. Minor maintenance
functions shall be similar in scope but not limited to the following
examples:
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1.
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Tightening
loose mechanical connections.
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2.
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Tightening
leaking packing.
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3.
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Changing
instrument charts.
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4.
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Tightening
piping fittings to stop minor
leaks.
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5.
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Changing
light bulbs.
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6. Hooking
up loading and unloading lines.
Section 13. Minor
Operating Functions.
Maintenance personnel may perform minor
operating functions when requested by production supervision, but only when
accompanied by a qualified member of the operations group. Typical
example: Assisting in closing or opening large block valves that are difficult
for one person to handle.
Section
14. Uniforms
Employees are encouraged to elect to
use the contractor service to supply them with uniforms. Those who
use the uniform service will be assured of the current level of shirts and pants
and the winter jacket at $0.16/hour cost to employees with no cost to repair for
the term of this Agreement, unless the employee terminates use of uniforms and
returns damaged goods.
ARTICLE XV
VALIDITY OF CONTRACT
VALIDITY OF CONTRACT
In the event any of the provisions of
this agreement may conflict with State or Federal statutes now existing or
subsequently enacted or with legal executive orders or regulations or applicable
court decision, the requirements of law shall overrule such provisions of this
agreement, it being the intent thereof that neither the Company nor the Union
may insist upon the observance of any provision hereof where the other party to
the agreement is obligated by law to adopt a course in conflict with this
agreement. The remaining provisions of this agreement not affected
thereby will remain in full force and effect.
ARTICLE XVI
NOTICE
NOTICE
Any notice to the Company provided
herein may be given by depositing same in the U.S. Mail in a sealed envelope,
registered, postage prepaid, and addressed to:
El Dorado Chemical Company
P.O. Box 231
El Dorado,
Arkansas 71731
Attention: Plant Manager
Any notice to be given to the Union may
be given by depositing same in the U.S. Mail in a seal envelope, registered,
postage prepaid, and addressed to:
Recording
Secretary
International Association of
Machinists
and Aerospace Workers,
AFL-CIO,
Local No. 224
Box 1332
El Dorado, Arkansas
A copy of notices should be likewise
mailed to:
President, International Association
of
Machinists and Aerospace
Workers
AFL-CIO Machinists
Building
9000 Machinist Place
Upper Marlboro,
Maryland 20772-2687
ARTICLE XVII
FUNERAL LEAVE
FUNERAL LEAVE
Any employee in the bargaining unit
shall be allowed to be absent from work to arrange for or attend the funeral of
any one of the relatives of the employee hereinafter stated:
(a) If
the deceased relative was the husband, wife, child, father, mother, brother,
sister, grandfather, grandmother, or grandchild of the employee or spouse, the
employee shall be permitted to be absent from work for a period not to exceed
two (2) continuous days.
(b) If,
to attend the funeral for the deceased relative, the employee travels to a point
more than 100 miles from El Dorado, Arkansas, he shall be allowed such leave for
an additional day with pay.
The pay for each day's leave which the
employee receives under the provisions of this Article shall be a sum equal to
straight time for his regular schedule of work on the day
involved. There shall be no duplication of payment under provisions
of this Article for any other employee benefits such as vacation pay, holiday
pay, or sickness benefits payments.
Any request for such time off with pay
based on false statements will subject the employee making the request to
immediate disciplinary action or discharge.
ARTICLE XVIII
GROUP INSURANCE
GROUP INSURANCE
Group
Insurance and Pension.
The Company and employees will share
the entire cost of group insurance benefits for employees and employee
dependents on the following basis, in the following employee enrollment
categories, payable bi-weekly:
a. Employee
b. Employee
and Children
c. Employee
and Spouse
d. Family
Medical claims utilization and fixed
costs will determine the cost share assigned to each enrolled employee by
enrollment category.
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(1)
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Effective
January 1, 2008, the employee’s cost share of 22%, per pay period, will be
based on the total claims utilization and fixed costs commencing November
1, 2006, through October 31, 2007.
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The
specific cost share amounts to be effective January 1, 2008, will be constant
throughout that year.
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(2)
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Effective
January 1, 2009, the employee cost share of 23%, per pay period, will be
based on the total claims utilization and fixed costs during the period,
commencing November 1, 2007, through October 31,
2008.
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The
specific cost share amounts, per pay period, to become effective January
1, 2009, will be constant throughout that
year.
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(3)
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Effective
January 1, 2010, the employee cost share of 23%, per pay period, will be
based on the total claims utilization and fixed costs, during the period
commencing November 1, 2008, through October 31,
2009.
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The
specific cost share amounts, per pay period, to be effective January 1, 2010,
will be constant throughout that year.
Effective January 1, 2008, 2009, and
2010, of each year, the maximum employee cost share amounts, per pay period, are
as follows:
2008 22%
2009 23%
2010 23%
If the total claims percentage cost
share, per pay period, exceeds the capped rates shown below, the capped rates
will apply.
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2008
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2009
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2010
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22%
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23%
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23%
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Capped
Rates:
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Employee
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$
28.00
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$33.60
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$
40.32
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Employee
& Children
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$
52.00
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$
62.40
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$
74.88
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Employee
& Spouse
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$
86.00
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$103.20
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$123.84
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Family
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$110.00
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$132.00
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$158.40
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Employees should refer to Summary Plan
Descriptions for details of EDC Health Plan co-payments, deductibles,
co-insurance coverage and periodic amendments as may be made from to time to
time.
Effective with the date of this
Agreement, the Company agrees to pay the cost of employee long-term disability
insurance and basic life insurance (twice an employee's annual
income).
Dental insurance coverage will be made
available as an option. The employee may elect to purchase the
insurance by paying the premium each month, or by increasing the deductible
amounts of the current group medical plan.
The Savings Incentive Plan for
Employees, adopted effective December 1, 1985, shall be continued during the
term of this Agreement.
ARTICLE XIX
NO STRIKE OR LOCKOUT
NO STRIKE OR LOCKOUT
There shall be no strike, sympathy
strike, or lockout during the term of this Agreement for any
reason.
ARTICLE XX
SERVICE WITH COMPANY
SERVICE WITH COMPANY
The Company shall honor previous
service at the El Dorado Chemical Company for purposes of seniority and vacation
eligibility only. Previous service at the plant, or any predecessor
of the Company, shall not be credited for purposes of pension
benefits.
ARTICLE XXI
RETIREMENT AGE
RETIREMENT AGE
The mandatory retirement age for
employees shall be in accord with federal law.
The seniority of each employee whose
services are terminated under the provisions of this Article shall cease as of
the date of such retirement.
CHANGE
OR MODIFICATION OF AGREEMENT
Section
1
If either party shall desire to change
any provisions of the agreement; it shall give written notice of such desire to
the other party by certified mail at least 60 days in advance of its expiration
date.
Section
2
The giving of notice provided in
Section 1 shall constitute an obligation upon both parties to negotiate in good
faith all questions at issue, with the intent of reaching written agreement
prior to the expiration date.
Section
3
If the parties have not reached
agreement on or before the expiration date, all the provisions of the agreement
shall remain in effect unless specifically terminated in accordance with the
provisions of Article XXIII below.
ARTICLE XXIII
TERMINATION OF AGREEMENT
TERMINATION OF AGREEMENT
Section
1
At any time after the expiration date,
if no agreement on the question at issue has been reached, either party may give
written notice to the other party of intent to terminate the Agreement in (not
less than) 10 days. All the provisions of the Agreement shall remain
in full force and effect until the specified time has elapsed. During
this period, attempts to reach an agreement shall be continued.
Section
2
In the event that parties fail to
resolve their differences within the specified time, all obligations under this
agreement are automatically canceled at the expiration
thereof. Provided,
however,
that nothing in the foregoing shall take away the right of the parties to
mutually agree to a written extension of this Agreement.
This Agreement may be opened for change
by specific areas by mutual agreement of the parties without affecting the
remainder of the contract. Any changes must be ratified by the Union
membership prior to implementation.
IN WITNESS HEREOF, this instrument is
executed on the 8th
May, 2008, to be effective as of October 17, 2007, at 12:01
a.m.
EL DORADO
CHEMICAL COMPANY
By: /s/ Greg
Withrow
Greg
Withrow, General Manager
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INTERNATIONAL
ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS AFL-CIO, LOCAL
NO. 224
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By: /s/ Larry
G. Booth
Larry G.
Booth
Directing
Business Representative
MEMBERS OF THE SHOP
COMMITTEE:
/s/ Jim
McKnight
Jim McKnight
/s/ Edward
Johnson
Edward
Johnson
/s/ Steve
Taylor
Steve
Taylor
/s/ Don
Fletcher
Don
Fletcher
/s/ Jef
Robison
Jeff
Robison
EXHIBIT "A"
BASIC HOURLY WAGE RATE
BASIC HOURLY WAGE RATE
Classification 10/17/07 10/17/08 10/17/09
"A"
Mechanic $19.88 $20.38 $20.89
"B"
Mechanic $18.51 $18.97 $19.44
"C"
Mechanic $17.80 $18.25 $18.71
"D"
Mechanic $13.17 $13.50 $13.84
"E"
Mechanic-New
Hire ** ** **
(First
180 Days)
** Rate
of pay determined by Company on basis of employees qualifications.
The Company shall have the right to
select and appoint employee(s) as Lead. In addition to the regular
work of their classification, a Lead may be assigned to train, assist, assign
employees, carry out the instructions of supervision, and to perform any other
duties pertaining to the maintenance department, which may be assigned by
management. The selection of Lead personnel and the duration of their
appointment is within the sole discretion of management. While so
assigned, Lead(s) shall receive a premium of one dollar ($1.00) above their
regular hourly rate.
Specialist
I $21.94 $22.49 $22.94
Specialist
II $23.82 $24.42 $24.91
Specialist
III $25.69 $26.34 $26.87
RATE
CHANGES DURING TERM OF AGREEMENT
The parties agree that the Company
shall have the right to establish pay practices and rates which assure the
Company’s ability to attract and retain skilled/qualified bargaining unit
members. Before implementation, the Company will discuss the rates
and/or changes with the Union.
CLOTHING
ALLOWANCE
In addition to the hourly rates set
forth in Exhibit "A", there shall be paid a clothing allowance of each hour
worked, as indicated below:
Clothing
Allowance
Per
Hour
$.16
RECOGNIZED
MAINTENANCE WORK GROUPS
Group I -
Mechanical
Includes work ordinarily done by the
following work groups:
1
..Pipefitter, Plumber
2.
Welder, Lead Burner
3. Heavy
Duty Operator, Rigger
4.
Machinist
5.
General Mechanic
6. Tank
Car Repairman,
7.
Carpenter, Painter, Mason, Insulator, Concrete Finisher
8.
Rotating Machinery
Group II
- - Electrical/Instrumentation
Includes work ordinarily done
by:
1.
Electrician
2.
Instrument Repairman
29