EXHIBIT 10.10
A G R E E M E N T
BETWEEN
SANDERSON FARMS, INC.
(BRAZOS PROCESSING DIVISION)
AND
UNITED FOOD AND COMMERCIAL WORKERS UNION, LOCAL 408, AFL-CIO
Chartered by the
UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION,
AFL-CIO, CLC
OCTOBER 25, 2002 - DECEMBER 31, 2005
TABLE OF CONTENTS
ARTICLE PAGE
1. AGREEMENT 4
2. RECOGNITION 4
3. MANAGEMENT PREROGATIVES 5
4. SHOP STEWARDS 6
5. UNION BULLETIN BOARD 7
6. NO STRIKE - NO LOCK OUT 7
7. GRIEVANCE PROCEDURE 7
STEP 1 7
STEP 2 8
STEP 3 8
8. ARBITRATION 9
9. SENIORITY 10
10. SENIORITY LIST 12
11. HOURS OF WORK 12
12. LEAVES OF ABSENCE 14
13. VACATIONS 15
14. HOLIDAYS 16
15. INSURANCE 17
16. EMPLOYEE STOCK OWNERSHIP PLAN 18
17. WAGES 18
18. MISCELLANEOUS 19
19 NO DISCRIMINATION 20
20. COMPLETE AGREEMENT AND SEPARABILITY 20
21. AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF 21
22. DURATION OF AGREEMENT 21
SIGNATURES 22
APPENDIX A - WAGE RATES *
APPENDIX B - CHECK OFF AUTHORIZATION *
ARTICLE 1
AGREEMENT
Section 1.1. This Agreement made and entered into this 13th day of November,
2002, by and between Sanderson Farms, Inc. (Brazos Processing Division) at its
Bryan, Texas processing plant (hereinafter referred to as "Employer" or
"Company"), and United Food and Commercial Workers Union, Local 408, AFL-CIO,
chartered by the United Food and Commercial Workers International Union,
AFL-CIO, CLC (hereinafter referred to as the "Union".
WITNESSETH
Section 1.2 WHEREAS, the Company and the Union are desirous of entering into a
contractual relationship covering rates of pay, hours of work and other terms
and conditions of employment of employees employed within the unit of
representation as hereinafter described; and Section 1.3. WHEREAS, the parties
have conferred, negotiated and agreed upon the terms and conditions of
employment to be applicable to the employees covered by this Agreement for the
contract period as herein specified. Section 1.4. NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties do hereby agree as follows:
ARTICLE 2
RECOGNITION
Section 2.1. The Employer recognizes the Union as the certified bargaining
representative (NLRB Case No. 16-RC-10107) for all production and maintenance
employees employed at its Bryan, Texas Poultry Processing Plant, excluding
office clerical employees, guards, professional employees, and supervisors, as
defined in the Act.
Section 2.2. No employee shall be required to make any written or verbal
agreement that will conflict with this Agreement. No employee shall be
reclassified so as to defeat the purpose of this Agreement.
ARTICLE 3
A. MANAGEMENT RIGHTS
Section 3.1
There shall remain in the Company the exclusive and unilateral right of
management of the Company's plant and facilities and the assignment and
direction of the working forces, not limited to but including the following: to
determine the number, location and type of plants it may operate; to decide the
products to be manufactured, the methods of manufacture, the materials to be
used and the continuance or discontinuance of any product mater or method of
production; to introduce new equipment, machinery or processes and to change or
eliminate existing equipment, machinery or processes; to discontinue,
temporarily or permanently, in whole or in part, conduct of its business or
operations; and to relocate its business or operations in whole or in part; to
decide the nature of materials, supplies, equipment or machinery to be used and
the price to be paid; to decide upon the sales methods and sales price of all
products; to subcontract any work performed by or for the Company; to hire the
workforce in accordance with the requirements set by management; to transfer,
promote or demote employees subject to the seniority provisions of this
Agreement; to lay off employees for economic reasons and to terminate,
discharge, suspend or otherwise relieve employee from duty for just cause; to
direct and control the workforce; to establish and enforce reasonable rules
governing employment, conduct, and working conditions; to determine the size of
the workforce; to determine the number of employee assigned to any particular
operation; to determine the workplace and to set reasonable work performance
levels; to establish, change, combine or abolish job classifications and to
determine the length of the work week; to utilize job rotation as deemed
necessary by the company; to determine work starting and stopping time, the
length of the work day, when overtime shall be worked, to require overtime; and
to determine the qualifications of employees. All other rights of Management are
also expressly retained even though not particularly enumerated above unless
they are clearly limited by the explicit language of some other provisions of
this Agreement.
It is understood that the word "unilateral right" as used herein mean that
the company shall have the unquestioned right to take such action without prior
notification or consultation with the Union, except that any such action, once
taken, may be questioned, to the extent provided in this Article or as
specifically provided elsewhere in this Agreement, through the grievance and
arbitration procedures.
Section 3.2.
If the sub-contracting of work usually performed by bargaining unit
employees or partial or complete plant relocation will have the foreseeable
effect of causing the layoff of any unit employee, the Company will give notice
to the Union and the parties will negotiate on the effects of the layoff. It is
further understood that none of the provisions of this Article shall have the
effect to reduce or waive any rights of unit employees under the Worker
Adjustment and Retraining Notification Act (WARN).
Section 3.3.
Failure of the Company to exercise rights herein reserved to it or
exercising them in a particular way shall not be deemed a waiver of said rights
of the Company's rights to exercise said rights in some other manner not in
conflict with the terms of this Agreement.
ARTICLE 4
SHOP STEWARDS
Section 4.1. The Employer recognizes the right of the Union to designate shop
stewards, not to exceed twenty (20) in number who shall be assigned to serve
specific areas of the plant to handle such Union business as may arise. The shop
stewards shall be employees of the Company. The Union shall notify the Company
in writing as to the names of the stewards and of any changes in designation of
stewards.
Section 4.2. A representative of the Union shall be permitted to enter the plant
at reasonable times, upon Employer's premises and plant, provided such
representative shall in no way interfere with the operations of Employer's
business and shall make arrangements with the Employer's manager.
Section 4.3. Upon reasonable notice from the Union, the Employer shall grant an
unpaid leave of absence to stewards up to one week per year for training
purposes. The Union agrees that it will not seek such leave for more than half
of the stewards at any one time.
ARTICLE 5
UNION BULLETIN BOARD
Section 5.1. The Employer will provide the Union locking bulletin boards in the
lunchrooms in the plant for posting of Union notices. All matters to be posted
shall be submitted to the Division Manager or a designated representative for
approval prior to posting, and management's decision shall be final. A Union
Shop Card shall be displayed on each Union bulletin board in the plant.
ARTICLE 6
NO STRIKE - NO LOCK OUT
Section 6.1. For the duration of this Agreement, there shall be no strike,
stoppages, slowdowns, picketing, sympathy strikes, or other interruption of or
interference with the operations of the plant. Section 6.2. The Company shall
not lock out employees for the duration of this Agreement.
Section 6.3. Neither the violation of any provisions of the Agreement, nor the
commission of any act constituting an unfair labor practice, or otherwise made
unlawful, shall excuse the employees, the Union, or the Company from their
obligations under the provisions of this Article.
Section 6.4. An employee discharged or otherwise disciplined for violation of
this Article, may seek review of such discipline through the grievance and
arbitration procedures provided herein. In this event, the only question to be
reviewed shall be whether or not the employee participated in the prohibited
conduct.
ARTICLE 7
GRIEVANCE PROCEDURE
Section 7.1. Grievances arising under this contract are herein defined as a
claim by a party to this Agreement or an employee covered by this Agreement that
the Company or the Union has violated a provision of this Agreement.
STEP I
The employee shall discuss the grievance or complaint with the immediate
supervisor within five (5) working days after the event giving rise thereto
occurs, or within five (5) working days following the date on which the grievant
had or reasonably would have had knowledge thereof. In the event the employee so
requests, the appropriate steward shall be present at this step. The supervisor
shall give an answer within five (5) working days after the grievance is
received.
STEP 2
If there is no settlement in Step 1, the grievance may be presented by the
employee and/or shop steward within five (5) working days from the date on which
the supervisor's answer was given in Step 1. The grievance must be presented in
writing to the department superintendent and must state the following
information:
(a) name or names of employee or employees involved; (b) the
department or departments involved; (c) the date and time of
the occurrence or discovery of the grievance; (d) the facts
complained about
(e) the specific provision of this Agreement alleged to have been
violated; (failure to designate the correct provision will not
affect the merits of the grievance);
(f) the remedy requested.
The superintendent shall give the Company's answer in writing within five (5)
working days after the grievance is received by the superintendent.
STEP 3
In the event the grievance is not settled in Step 2, then the grievance may
be appealed in writing to the division manager or a designated representative by
the Union to Step 3 within five (5) working days from the Company's answer in
Step 2. The division manager or a designated representative shall give an answer
in writing within five (5) working days from the date of the appeal. In the
event the grievance is not settled then the aggrieved party or parties shall
have the right to request arbitration.
In the event a grievance arises on behalf of the Employer, the matter shall
be presented to the Union Business Agent in writing, who shall have seven (7)
days from the date of submission within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration.
Section 7.2. Discharge grievances shall be processed initially under Step 3 of
the grievance procedure. The written grievance shall be filed with the division
manager within five (5) working days following the date of discharge.
Section 7.3. A failure to observe the time limit specified herein for original
presentation of a grievance or presentation in any subsequent step of the
grievance procedure on the part of either the grievant or the Union shall be
conclusive evidence that the grievance has been settled and abandoned.
Failure on the part of the Company to comply with the time limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.
The time limits of the grievance procedure may be extended by mutual
consent of the Union and the Company.
ARTICLE 8
ARBITRATION
Section 8.1. If a party to this Agreement desires to take a grievance to
arbitration, it shall within fifteen (15) calendar days after the denial of the
grievance, give written notice of his intention to the other party, together
with a written statement of the specific provision or provisions of this
Agreement at issue.
Section 8.2. The parties shall attempt to select an impartial arbitrator. If
they are unable to agree upon a choice within seven (7) calendar days after the
receipt of Notice of Intent to Arbitrate, either party may request the Federal
Mediation and Conciliation Service to submit a list of five (5) arbitrators,
from which the arbitrator will be selected. Selection shall be made by the
parties alternately striking any name from the list (the first to strike shall
be the party requesting arbitration) until only one (1) name remains. The final
name remaining shall be the arbitrator of the grievance.
Section 8.3. The jurisdiction and the decision of the arbitrator of the
grievance shall be confined to a determination of the acts and the
interpretation or application of the specific provision or provisions of this
Agreement at issue. The Arbitrator shall be bound by terms and provisions of
this Agreement and shall have the authority to consider only grievances
representing solely an arbitration issue under this Agreement. The arbitrator
shall have no authority to add to, alter, amend, or modify any provision of this
Agreement. The decision of the arbitrator in writing on any issue properly
before the arbitrator in accordance with the provisions of this Agreement, shall
be final and binding on the aggrieved employee or employees, the Union, and the
Employer.
Section 8.4. Multiple grievances shall not be heard before one arbitrator at the
same hearing except by mutual agreement of the parties.
Section 8.5. The Union and the Employer shall each bear its own costs in these
arbitration proceedings, except that they shall share equally the fee and other
expenses of the arbitrator in connection with the grievance.
Section 8.6. The Grievance Committee of the Union shall have the sole authority
to determine whether or not the employee's grievance is qualified to be
submitted to arbitration by the Union. The decision of the Grievance Committee
shall be made at its first meeting after the Company's Step 3 answer, and the
Union will promptly inform the Company of its decision.
ARTICLE 9
SENIORITY
Section 9.1. Seniority is defined as the length of an employee's continuous
employment in the bargaining unit at the Company's Bryan, Texas, poultry
processing plant since the last permanent date of employment. For purposes of
layoff, recall, promotion, and vacation only, this shall include continuous
service which began prior to the acquisition of the plant by the Company.
Section 9.2. All newly hired or rehired employees shall be considered as
probationary employees for a period of ninety (90) days during which period they
shall not acquire seniority, and during which they may be discharged without
recourse to the grievance and arbitration procedures provided herein. If
retained as a regular employee upon satisfactory completion of the probationary
period, seniority shall be retroactive to the first day of employment.
Section 9.3 In matters of promotion, consideration will be given to an
employee's skill, ability, attendance, versatility, training, physical fitness,
and seniority; and when, in the opinion of the Company, the factors other than
seniority are relatively equal, seniority will be the deciding factor. In
layoffs and recalls, seniority will prevail, provided the employees involved are
relatively equal in ability and fitness to immediately perform the available
work.
Section 9.4. An employee's seniority shall be lost and employment considered
terminated by:
(a) discharge for just cause;
(b) failure to return from layoff within five (5) working days
after written notice by certified mail is sent by the Company
to the employee's last known address on the Company's books.
Actual notice to the employee of recall by any other means
shall satisfy the terms of this provision;
(c) voluntary termination of employment;
(d) failure to report after termination of a leave of absence
approved by the Company in writing on the first scheduled day
following the expiration of such leave of absence;
(e) engaging in a gainful occupation while on leave of absence;
(f) absence from work for three (3) consecutive working days
without notice to the Company, which shall be considered as a
voluntary quit, unless notice was prevented by a cause beyond
the control of the employee;
(g) separation from the Company's active payroll for any reason,
exclusive of leaves of absence approved by the Company, for a
period exceeding an employee's length of service in the Bryan
plant, or three (3) months, whichever is less.
Section 9.5. For the purposes of this Agreement, layoffs shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10) workdays in length. Short term layoffs may be made without
regard to seniority. A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article.
Section 9.6. All permanent job vacancies in premium rated classifications shall
be posted for two (2) consecutive working days on the plant bulletin board.
Employees in lower rated classifications desiring promotion to such jobs shall
sign a bid sheet posted on the bulletin board. An employee who does not sign
such bid sheet shall have no right to consideration for the vacancy. However,
the fact that an employee did not sign the bid sheet will not preclude that
employee's selection for the job by the Company if none of the signers is
determined to be qualified. If no qualified employee bids on the posted
position, the Company may fill the position in its discretion. If, after a
reasonable period not to exceed thirty (30) days, the employee selected for the
posted position achieves an acceptable level of performance, the employee shall
receive the rate of the new position. If the employee fails to perform in an
acceptable manner, such employee shall return to a job in their former
classification and the premium job shall be posted again. An employee who
self-disqualifies shall return to the extra board at the line operator's rate of
pay and shall not be eligible for bidding on a premium job for a period of six
(6) months.
Section 9.7. Assignments involving employees on the extra board shall be in
order of seniority. Within a department, no extra board employee shall be
retained over a permanently assigned employee.
ARTICLE 10
SENIORITY LIST
Section 10.1. Upon request at any reasonable time, the Company shall furnish to
the Union a current seniority list. The list shall be alphabetical and shall
include department, social security number, date of hire, address, zip code,
phone number and rate of pay. The obligation of the Company shall be satisfied
by furnishing the most recent information in its records.
ARTICLE 11
HOURS OF WORK
Section 11.1. The regular work week shall consist of five (5) days or forty (40)
hours. This shall not be construed as a guarantee of any amount of hours or
work. The basic work week shall be the seven (7) day period from 12:01 a.m.
Sunday until midnight the following Saturday. Employees will be given at least
one (1) calendar week's notice of any change by the Company of the payroll week.
Section 11.2. An employee who works more than forty (40) hours in any one week
shall be paid at time and one-half the regular rate of pay for all hours in
excess of forty (40).
Section 11.3. When employees are called to work a shift outside their regularly
scheduled shift and report for work, or when they report to work at their
regularly scheduled time, they shall be given the opportunity to work a minimum
of three (3) hours or receive pay for same at the applicable hourly rate, except
that no such pay shall be made when the plant cannot operate for reasons beyond
the control of the Employer, such as, but not limited to, strikes, utility
failure, fire, flood, storms or other acts of God interfering with work, or a
breakdown of machinery or equipment when the Company notifies the employees not
to report to work at least four (4) hours prior to the scheduled time to work.
Section 11.4. Employees will be paid at their regular rate for all waiting time
of thirty (30) minutes or less, so long as they do any job they are assigned.
Employees will not be paid for waiting time which exceeds thirty (30) minutes if
(1) they are relieved of all duties, (2) are free to leave the plant, and (3)
are told the time they must return to work. Employees will not be relieved
without pay more than once in any workday except for a lunch break of not more
than one (1) hour. Section 11.5. The Company will provide one (1) unpaid break
of not less than thirty (30) minutes for lunch during each shift, and shall
provide one (1) twelve (12) minute paid rest period prior to lunch each day. In
addition, all employees will be allowed one (1) twelve (12) minute paid rest
period after the lunch break provided the work time is expected to be not less
than two and one-half (2 1/2) hours. No unpaid break shall be provided for
maintenance employees.
The Company shall have the right to provide a twenty-four (24) minute
paid lunch break to Clean-Up Line Operators on restricted hours in lieu of all
breaks provided in this Section. Section 11.6. Effective January 5, 2003, a
Clean-Up Line Operator who has completed the probationary period and is
permanently assigned to restricted hours in the clean up department shall
receive an hourly adjustment of $1.25 per hour for each hour worked in that
assignment. Said adjustment shall be $1.30 effective January 4, 2004; and $1.35
effective January 2, 2005.
Section 11.7. Employees who have completed the probationary period and are
temporarily assigned for one or more consecutive hours to perform the duties of
an absent employee in a higher paid classification shall receive the rate of
that classification while performing the duties of the classification. Employees
who work at more than one pay rate during a week in which they earn overtime
shall receive overtime pay based upon an average of the rates earned during that
week.
Section 11.8. When daily overtime in excess of fifteen (15) minutes is required
for processing employees, they shall be notified by second break, or as soon as
the Company knows such overtime is required.
ARTICLE 12
LEAVES OF ABSENCE
Section 12.1. An employee who has completed the probationary period may be
granted, at the Company's discretion, a leave of absence without pay for a
reasonable period of time, not to exceed one (1) month, for the following
reasons:
(a) emergency personal business; and
(b) Union business, upon written request by the Union's Business
Manager, provided that no more than three (3) employees shall
be on such leave simultaneously.
Section 12.2. Employees who have completed their probationary period are
eligible for up to thirteen (13) weeks per year of unpaid family and medical
treatment leave for the following reasons:
(a) Employee's serious health condition -- a medical
certification will be required which states that the employee
is unable to perform the functions of the employee's position.
(b) Family serious health condition -- spouse, parent, or
child. A medical certification will be required stating the
employee is "needed to care for the individual." (c) New child
leave -- the birth, adoption or foster care placement by a
state agency of a child, and, the need to care for the child;
such leave may be prior to the actual birth or placement.
The provisions of this Section shall be administered in accordance with
the Family and Medical Leave Act of 1993 (FMLA).
Section 12.3. Employees who have completed their probationary period who lose
actual work time in order to attend the funeral of a family member shall receive
a paid funeral leave for time necessarily lost during the employee's regularly
scheduled shift, provided the employee would have been scheduled and at work
during that day. Said leave shall be up to three (3) days with pay for a
deceased parent, spouse, child, brother, or sister and one (1) day for a
deceased father-in-law, mother-in-law, grandparent, brother-in-law,
sister-in-law or grandchild. In order to receive pay under this Section, an
employee must be actively working, must make application for such paid leave,
and must attend the funeral. The Company may require satisfactory evidence of
attendance at the funeral and the relationship of the deceased.
Section 12.4. If the Company has knowledge that an employee, in a premium-rated
classification, will be on family and medical leave, military leave, or an
industrial injury leave for more than thirty (30) calendar days, the job will be
posted and filled on a temporary basis. The successful bidder will receive the
rate of the premium classification for the period its duties are performed. When
employees on leave under this Section return, they shall be immediately assigned
to their old job; employees temporarily filling the job shall return to their
regular classification and pay rate.
Section 12.5. The Company shall pay each active employee who reports for jury
duty the difference between pay up to eight times the hourly rate for time
actually lost and the juror's daily fee for each day the employee is required to
serve on a jury. The employee must report to work during those days of his
regularly scheduled shift during which the employee is not required to report
for jury duty or be available at court for jury service. The employee must
present proof of jury service and the amount of compensation received from the
court.
ARTICLE 13
VACATIONS
Section 13.1. Regular full-time employees shall be eligible for one (1) week's
vacation after the first anniversary date of continuous employment, and after
the anniversary date of each succeeding year.
Employees shall be eligible for a second week of vacation after the second
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a third week of vacation after the tenth
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a fourth week of vacation after the
twentieth anniversary date of continuous employment and after the anniversary
date of each succeeding year of continuous employment.
Section 13.2. To be eligible for a vacation, an employee must have worked
sixteen hundred (1,600) hours during the preceding twelve (12) months or eighty
(80) percent of available hours for that period, whichever is less. Vacations
and holidays not worked shall be considered time worked for purposes of this
Section.
Section 13.3. Vacation pay shall be computed at forty (40) times the Employee's
regular straight time hourly rate.
Section 13.4. Due consideration will be given employees' choice of vacation
time, but all vacations scheduled are subject to the final approval of the
Company in keeping with the Company's scheduling needs. In the event that two or
more employees cannot be released at the same time, the employee with the
longest service with the Company will be given preference. An employee who
notifies the Company of a vacation choice thirty (30) days in advance shall not
lose that vacation choice to another employee. Vacations may not be scheduled
for periods of less than a week, and all vacations must be taken within an
anniversary year.
Section 13.5. The Company reserves the right to schedule a plant shutdown for
one .(l) week in any year, which shall be treated as a vacation week for those
employees entitled to vacation.
ARTICLE 14
HOLIDAYS
Section 14.1. The following shall be considered holidays:
New Year's Day Labor Day
Martin Luther King's Birthday Thanksgiving Day
Memorial Day Christmas Day
July Fourth Birthday Holiday
The birthday holiday shall be taken on the employee's birthday. If the
birthday falls on a Saturday or Sunday, the holiday shall be taken on a day
agreed upon by the Company and the employee within one week of the birthday.
In the event any other holiday falls on a Saturday or Sunday, the Company
will announce whether it will be observed on the Friday preceding or the Monday
following the holiday. Such notice shall be given at least four (4) days in
advance.
Section 14.2. All regular full-time employees who have completed their
probationary period shall be paid for eight (8) hours at their regular straight
time rate for each holiday enumerated above, provided they report for work and
work all scheduled hours on the workday preceding and the workday next following
the holiday, unless the employee was necessarily absent due to personal illness,
supported by a doctor's certificate, or because of an emergency occurring to the
employee or the employee's immediate family (meaning only spouse, children, or
parents). No employee shall lose holiday pay because of missing no more than
thirty (30) minutes on the workday before or the workday following the holiday.
In any event, an employee must work at least one (1) day during the
calendar week in which a holiday falls in order to be eligible for holiday pay,
except the employee who is on vacation.
Section 14.3. Employees required to work on a holiday shall be paid the amount
provided above, in addition to their regular earnings for that day. Hours not
worked on a holiday shall not be considered as work time in computing any
additional compensation due under the overtime provisions of this contract.
Section 14.4. If an employee is required to work and fails to report or fails to
work scheduled hours on a holiday, the employee shall forfeit holiday pay for
that day. Section 14.5. Employees on vacation during the week in which a holiday
falls shall receive holiday pay.
ARTICLE 15
INSURANCE
Section 15.1. The Company shall provide a group insurance program for employees
covered by this Agreement. The Company will continue to make monthly
contributions toward group insurance premiums in the same proportion as is
currently in effect. Employees will bear the remaining costs of the insurance.
Section 15.2. Effective January 1, 2003, the Company shall pay sixty (60%)
percent of the cost of employee coverage only under the group health insurance
plan elected by an employee. On January 1, 2004, the contribution on employee
coverage will increase to seventy (70%) percent, and on January 1, 2005, it will
increase to seventy-five (75%) percent of the premium for employee coverage.
Monthly contributions by the Company toward group family coverage shall remain
in the same proportion as is currently in effect.
ARTICLE 16
EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT
Section 16.1. Employees covered by this Agreement will continue to be covered by
the Employee Stock Ownership Plan of Sanderson Farms, Inc. and Affiliates.
Participation and benefits in the plan shall be in accordance with the
provisions of that plan.
ARTICLE 17
WAGES
Section 17.1. Wages shall be paid as provided in Appendix A attached hereto and
made a part of this Agreement.
Section 17.2. Whenever a new job classification is created by the Company, or
there is a change or merger of job classifications or the job content of job
classifications, the Company will discuss the appropriate wage rate with the
Union. If a mutually satisfactory rate cannot be agreed upon, the Company will
set the rate. The Union may file a grievance on the rate, and the dispute shall
be settled in accordance with the grievance and arbitration procedures of this
contract.
Section 17.3. The rates of pay set forth in Appendix A of this Agreement are
minimum straight time hourly wage rates, and nothing contained herein shall be
construed as prohibiting or requiring the Company to grant individual employees,
for length of service, efficiency, productivity, or other reasons, a wage
increase which would result in such employee's regular straight time hourly wage
rate being in excess of the minimum wage rate herein specified for the work
operation he or she performs. The Company will notify the Union of any change
pursuant to this Section in advance.
Section 17.4. Any employees who, upon the effective date of this Agreement, are
receiving a wage in excess of the applicable rate set forth in Appendix A, shall
continue to receive their current rate until the contract rate equals or exceeds
that rate.
Section 17.5. In addition to the wage rates as provided in Appendix A,
production employees who have been continuously employed for five (5) or more
years shall receive seniority pay of twenty (20) cents per hour. Maintenance
employees who have been continuously employed for five (5) or more years will
receive seniority pay of fifty (50) cents per hour. Section 17.6. Employees who
have been continuously employed for one (1) or more years shall receive a night
shift differential of twenty-five (25) cents per hour for work performed on a
shift starting during the hours beginning 12:00 noon through 1:00 a.m. The
starting time of a shift determines if it is subject to the shift differential.
Employees performing work on a night shift which is not their regular shift will
receive shift differential for such work if it lasts three (3) or more hours.
ARTICLE 18
MISCELLANEOUS
Section 18.1. The Company shall maintain safe, sanitary, and healthy working
conditions at all times, and employees will be required to cooperate in
maintaining such conditions. Any complaints regarding safety or health shall be
processed through the grievance and arbitration provisions of this Agreement.
Section 18.2. There shall be a Safety Committee consisting of members selected
from the bargaining unit, one-half selected by the Union and one-half selected
by the Company. A management representative shall be designated Chairman of the
committee by the Division Manager. The Safety Committee shall perform whatever
functions are assigned, which shall include periodic meetings; review of safety
related suggestions from any source; and recommending corrective actions to
facilitate safety related changes in work environment and work practices.
Section 18.3. The Company will provide any uniforms required of employees who
have completed their probationary period. The Company will furnish required
safety equipment, gloves, aprons, hair nets, freezer gloves, cotton gloves,
raincoats, and smocks at no cost to the employee. Needed replacements, through
normal use, will be made at no cost provided the worn out article is returned to
the Company. If an item is lost or destroyed through employee negligence, the
employee will be charged for its replacement.
Section 18.4. The Employer may require any employee to take a physical
examination at any time at the Employer's expense.
Section 18.5. It shall be the responsibility of all employees to keep the
Employer apprised of their current address, telephone number, marital status and
number of dependents.
Section 18.6. It is the intent of the parties hereto that no provisions of this
Agreement shall require either party to perform any act which shall be unlawful
under any Texas or Federal statute.
Section 18.7. Employees will be allowed reasonable relief from the line to visit
the restroom. Employees who abuse this privilege will be subject to discipline
up to and including discharge.
Section 18.8. Verified emergency messages will be relayed to the employee as
soon as possible after receipt of the message. Section 18.9. This Agreement
shall be in both English and Spanish. If there is a discrepancy in translation
regarding contract language or interpretation, the English language contract
shall prevail.
ARTICLE 19
NO DISCRIMINATION
Section 19.1. The Company and the Union agree that they will not discriminate
against any person with regard to employment or Union membership because of
race, creed, color, sex, religion, age, national origin, or disability (as
defined in the Americans With Disabilities Act).
Section 19.2. Whenever masculine gender is used in this Agreement, it shall
apply to the feminine gender.
ARTICLE 20
COMPLETE AGREEMENT AND SEPARABILITY
Section 20.1. Complete Agreement: The parties expressly declare that they have
bargained between themselves on all phases of hours, wages, rate of pay,
conditions of employment and working conditions, and that this contract
represents their full and complete agreement without reservations or unexpressed
understanding. Any aspect of hours, rates of pay, wages, conditions of
employment and working conditions not covered by a particular provision of this
agreement is declared to have been expressly eliminated as a subject for
bargaining and during the life of this Agreement may not be raised for further
bargaining in negotiations without written consent of all parties hereto.
It is further understood and agreed that neither party hereto has been
induced to enter into this Agreement by any representations or promises made by
the other which are not expressly set forth herein, and that this document
correctly sets forth the effect of all preliminary negotiations, understandings,
and agreements, and supersedes any previous agreements, whether written or
verbal. This contract constitutes the entire Agreement and understanding between
the parties and shall not be modified, altered, change, or amended in any
respect except on mutual agreement set forth in writing and signed by both
parties.
Section 20.2. Separability: In the event any of the provisions of this Agreement
are held to be in conflict with or in violation of any state or federal statute
or another applicable law, administrative rule or regulation, such decision
shall not affect the validity of the remaining provisions of the Agreement. The
parties further agree that they will meet within thirty (30) days to
re-negotiate the provisions of the Agreement held to be invalid, provided that
Article 6 shall remain in full force and effect during all such negotiations.
ARTICLE 21
AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF
Section 21.1. During the term of this Agreement, the Company will deduct
initiation fees, assessments, and Union dues weekly from the wages of employees
who individually authorize the Company on a form in compliance with Appendix B
to this Agreement.
Section 21.2. The Company will make deductions from employees according to the
signed Active Ballot Club check-off card on a form in compliance with Appendix B
to this Agreement, and the funds will be forwarded by separate check to UFCW
Local 408. It is understood that this deduction shall not be made more than four
times in any calendar year.
Section 21.3. The Union shall save the company harmless against and from all
claims, demands, suits or other forms of liability that arise out of or by
reason of action taken or not taken by the company in reliance upon or
compliance with any provisions of this Article.
Section 21.4. It is agreed that by reason of institution of the above check-off
system, collections by any other method on the Company's premises are
prohibited, except with the permission of the Company.
Section 21.5. Credit Union: Upon receipt of a signed authorization, the Company
shall deduct from employees' wages and turn over to the proper official of the
Credit Union deductions from the pay of such members of the Credit Union as
individually and voluntarily certify in writing that they authorize such
deductions. Employees and officers of UFCW Local 408 Credit Union may, with five
(5) working days notice to management, be allowed access to break areas to sign
up new credit union members and promote credit union activity only four (4)
times a year.
ARTICLE 22
DURATION OF AGREEMENT
Section 22.1. This Agreement shall remain in full force and effect from the 25th
day of October, 2002 until the 31st day of December, 2005, and shall continue
thereafter from year to year until either party to this Agreement desires to
terminate this Agreement by giving written notice at least sixty (60) days prior
to December 31, 2005, or at least sixty (60) days' written notice prior to any
anniversary date thereafter. The parties to this Agreement shall endeavor to
satisfactorily negotiate any contemplated change or execute a new Agreement
during the sixty (60) day period, after proper notice in writing has been given
as provided herein and above. Notice, as specified in this Article, shall be
mailed via United States Certified Mail.
IN WITNESS WHEREOF, the parties have hereunto signed their names this 13th
day of December, 2002.
SANDERSON FARMS, INC. UNITED FOOD AND COMMERCIAL
(Brazos Processing Division) WORKERS UNION, LOCAL 408
AFL-CIO
/s/Eric G. Erickson III, Div. Mgr. /s/Steve Gault
/s/Lionel Garcia FERM /s/Cesar Garza
/s/Melinda Mullins
/s/Donna Kapel
/s/Helen Servantes
/s/Alma Mendez
<table>
<caption>
APPENDIX "A"
WAGE SCHEDULE
EFFECTIVE
<s> <c> <c> <c> <c>
CURRENT 1/5/03 1/4/04 1/2/05
PROCESSING
RECEIVING
Lift Truck Operator 8.80 9.15 9.50 9.90
Receiving Dock 8.65 9.00 9.35 9.75
PICKING
Killer 8.90 9.25 9.60 10.00
Floorworker 8.55 8.90 9.25 9.65
Line Operator 8.40 8.75 9.10 9.50
EVISCERATING
Floorworker 8.55 8.90 9.25 9.75
Bird Chiller Operator 8.55 8.90 9.25 9.65
Line Operator 8.40 8.75 9.10 9.50
DRIP LINE
Lift Truck Operator 8.85 9.20 9.55 9.95
Scale Operator 8.65 9.00 9.35 9.75
Floorworker 8.55 8.90 9.25 9.65
Giblet Chiller Operator 8.55 8.90 9.25 9.65
Grader 8.50 8.85 9.20 9.60
Line Operator 8.40 8.75 9.10 9.50
SPECIALTY
Scale Operator 8.65 9.00 9.35 9.75
Floorworker 8.55 8.90 9.25 9.65
Line Operator 8.40 8.75 9.10 9.50
Grader 8.50 8.85 9.20 9.60
Lift Truck Operator 8.85 9.20 9.55 9.95
OVERWRAP
Line Operator 8.40 8.75 9.10 9.50
PAWLINE
Chiller Operator 8.55 8.90 9.25 9.65
Line Operator 8.40 8.75 9.10 9.50
Floorworker 8.55 8.90 9.25 9.65
BOX WASH
Line Operator 8.40 8.75 9.10 9.50
Lift Truck Operator 8.85 9.20 9.55 9.95
MARINATION
Line Operator 8.40 8.75 9.10 9.50
Formulation Mixer 8.55 8.90 9.25 9.65
Floorworker 8.55 8.90 9.25 9.65
Scale Operator 8.65 9.00 9.35 9.75
DEBONING
Line Operator 8.40 8.75 9.10 9.50
Stack Off 8.50 8.85 9.20 9.60
Front Half Puller 8.50 8.85 9.20 9.60
Floorworker 8.55 8.90 9.25 9.65
Scale Operator 8.65 9.00 9.35 9.75
SAW CUT
Line Operator 8.40 8.75 9.10 9.50
Floorworker 8.55 8.90 9.25 9.65
Scale Operator 8.65 9.00 9.35 9.75
POLY BAG
Line Operator 8.40 8.75 9.10 9.50
Grader 8.50 8.85 9.20 9.60
Floorworker 8.55 8.90 9.25 9.65
MDM
Line Operator 8.40 8.75 9.10 9.50
Machine Operator 8.50 8.85 9.20 9.60
Jack Operator 8.50 8.85 9.20 9.60
Floorworker 8.55 8.90 9.25 9.65
Forklift Operator 8.85 9.20 9.55 9.95
CHILLING
Lift Truck Operator 8.85 9.20 9.55 9.95
Chilling Room Operator 8.50 8.85 9.20 9.60
PREPRICE
Data Print Operator 8.65 9.00 9.35 9.75
Line Operator 8.40 8.75 9.10 9.50
SHIPPING
Lift Truck Operator 8.85 9.20 9.55 9.95
Billing Clerk 8.55 8.90 9.25 9.65
Loading Crew 8.50 8.85 9.20 9.60
QUALITY CONTROL
QC Operator 8.65 9.00 9.35 9.75
QC Lab Tech 8.65 9.00 9.35 9.75
PURCHASING.
Supply Clerk 8.85 9.20 9.55 9.95
Line Operator 8.40 8.75 9.10 9.50
WASTEWATER
Waste Treatment Operator 8.50 8.85 9.20 9.60
BY-PRODUCTS
By-Products Operator 8.65 9.00 9.35 9.75
MAINTENANCE
Master Skilled Operator I 14.35 14.70 15.05 15.45
Master Skilled Operator II 12.00 12.35 12.70 13.10
Skilled Maintenance Men 11.00 11.35 11.70 12.10
Mechanic 10.25 10.60 10.95 11.35
Mechanic Helper 8.70 9.05 9.40 9.80
Clean-Up Floor Worker 8.55 8.90 9.25 9.65
Clean-Up Line Operators 8.40 8.75 9.10 9.50
RATES FOR NEWLY HIRED EMPLOYEES
1/5/03 1/4/04 1/2/05
Training Rate 6.45 6.55 6.65
Sixty-day Rate 7.45 7.65 7.85
Six-Month Rate 8.00 8.25 8.50
One-Year Rate 8.75 9.10 9.50
</table>
Newly hired employees in premium classifications above shall receive the rate of
that classification as soon as they can perform satisfactorily all of the duties
of the classification.
APPENDIX "B"
CHECK-OFF AUTHORIZATION
To: Any Employer under contract with United Food and Commercial Workers
Union, Local 408, AFL-CIO.
You are hereby authorized and directed to deduct from my wages,
commencing with the next payroll period, an amount equivalent to dues
and initiation fees as shall be certified by the President of Local
408, of the United Food and Commercial Workers International Union,
AFL-CIO, and remit same to said President.
This authorization and assignment is voluntary, made in consideration
for the cost of representation and collective bargaining and is not
contingent upon my present or future membership in the Union. This
authorization and assignment shall be irrevocable for a period of one
(1) year from the date of execution or until the termination date of
the Agreement between the Employer and Local 408, whichever occurs
sooner, and from year to year thereafter, unless not less than thirty
(30) days and not more than forty-five (45) days prior to the end of
any subsequent yearly period, I give the Employer and Union written
notice of revocation bearing my signature thereto. The President of
Local 480 is authorized to deposit this authorization with any Employer
under contract with Local 408and is further authorized to transfer this
authorization to any other Employer under contract with Local 408 in
the event that I should change employment.
AUTHORIZATION FOR POLITICAL DEDUCTION
I hereby authorize to deduct from my pay the sum of $ each year and/or
week at the time when my regular Union dues check-off is deducted from my
paycheck, and to forward that amount to the President of UFCW Local 408.
This authorization is signed voluntarily and on the understanding that
the Active Ballot Club will use that money to make political contributions and
expenditures in connection with Federal, State and Local elections.
Contributions or gifts to the UFCW Active Ballot Club are not deductible as
charitable contributions for Federal tax purposes.
DATE SIGNATURE
SOCIAL SECURITY NUMBER NAME - PRINT