Exhibit 10.3
AGREEMENT
JUMBO PRODUCE, INC.
AND
WAREHOUSE EMPLOYEES LOCAL UNION NO. 730
AND
DRIVERS, CHAUFFEURS AND HELPERS LOCAL UNION NO. 639
JULY 6, 1993
THROUGH
JULY 6, 1998
AGREEMENT............................................................... 1
SCOPE OF AGREEMENT...................................................... 1
RECOGNITION AND UNION MEMBERSHIP........................................ 1
CHECK-OFF AND DRIVE..................................................... 1
DRIVE AUTHORIZATION AND DEDUCTION....................................... 2
WORK WEEK/SHIFTS........................................................ 2
OVERTIME AND SUNDAY WORK................................................ 3
HOLIDAYS................................................................ 3
BULLETINS............................................................... 4
RELIEF PERIOD........................................................... 4
FIDELITY BONDS.......................................................... 4
UNIFORMS................................................................ 4
WAGES................................................................... 4
DISCHARGE............................................................... 4
SENIORITY............................................................... 5
VACATION................................................................ 5
LEAVES OF ABSENCE....................................................... 6
FUNERAL LEAVE........................................................... 6
MILITARY SERVICE........................................................ 6
JURY DUTY............................................................... 6
PERSONAL LEAVE.......................................................... 6
LEAVE FOR OTHER REASONS................................................. 7
PROTECTION OF RIGHTS.................................................... 7
NO STRIKE OR LOCKOUT.................................................... 7
GRIEVANCE AND ARBITRATION............................................... 7
SHOP STEWARDS........................................................... 8
HEALTH AND WELFARE...................................................... 8
PROFIT SHARING PLAN..................................................... 8
SEPARABILITY AND SAVINGS CLAUSE......................................... 8
LOSS OR DAMAGE.......................................................... 9
INSPECTION PRIVILEGES................................................... 9
SUBCONTRACTING.......................................................... 9
DEFECTIVE EQUIPMENT AND DANGEROUS CONDITIONS OF WORK.................... 9
MANAGEMENT RIGHTS....................................................... 10
TERM OF AGREEMENT....................................................... 10
APPENDIX "A"............................................................ 11
AGREEMENT
---------
This agreement made and entered into this 6th day of July, 1993, by and
--- ---- --
between Jumbo Produce, Inc., hereinafter called "Company" and Warehouse
Employees Union Local No. 730 and Drivers, Chauffeurs and Helpers Local Union
No. 639, of Washington, D.C., affiliated with International Brotherhood of
Teamsters hereinafter called the "Union".
ARTICLE 1 - SCOPE OF AGREEMENT
- ------------------------------
1.1 Should the Company establish any new facilities that result in work
or services presently performed under this Agreement being transferred, the
Company agrees to consult with the Union with respect to the effects on
employees; and employees who are adversely affected shall be offered job
opportunities that may be available at the new facilities before anyone else is
hired for job classifications covered by this Agreement.
1.2 This Agreement shall be binding upon all signatories hereto, and
their successors and assigns, whether such status is created by sale, lease,
assignment or any other type of transfer or transaction. In consideration of
the union's execution of this Agreement, the Employer promises that its
operations covered by this agreement or any part thereof shall not be sold,
conveyed or otherwise transferred or assigned to any successor without first
securing the agreement of the successor to assume the Employer's obligation
under this Agreement to offer employment to all of the Employer's current
employees.
ARTICLE 2 - RECOGNITION AND UNION MEMBERSHIP
- --------------------------------------------
2.1 The Company recognizes the Union as the sole and exclusive
bargaining agent for all employees in the bargaining unit certified by the
National Labor Relations Board in Case No. 5-OS-12559.
2.2 It is agreed that all employees covered by this agreement shall
within thirty-one (31) days after the execution hereof, or thirty-one (31) days
after their employment during the term of this Agreement become a member of the
Union and remain a member thereof for the duration of this Agreement.
2.3 The starting wages in Appendix "A" shall apply to all new employees
and each new employee is to be on probation for a period of ninety (90) days.
If during the probationary period it is found that the new employee is not
suitable for the business, his/her services are to be terminated at the
Employer's discretion.
ARTICLE 3 - CHECK-OFF AND DRIVE
- -------------------------------
3.1 The Company agrees to deduct initiation fees and monthly dues from
the pay of all employees upon receipt of
individually signed voluntary authorization cards as required by Section 302 of
the Labor/Management Relations Act and remit same to the Secretary/Treasurer of
the Union.
3.2 DRIVE AUTHORIZATION AND DEDUCTION - The Company agrees to deduct
---------------------------------
from the pay check of all employees covered by this Agreement voluntary
contributions to DRIVE. DRIVE shall notify the Company of the amounts
designated by each contributing employee that are to be deducted from his/her
pay check on a weekly basis for all weeks worked. The phrase "weeks worked"
excludes any week other than a week in which the employee earned a wage. The
Company shall transmit to DRIVE National Headquarters on a monthly basis, in one
check, the total amount deducted along with the name of each employee on whose
behalf a deduction is made, the employees' social security number and the amount
deducted from the employees' pay check. The Union will submit to the Company
all deduction authorizations during a thirty (30) day period each year, or, in
the case of a new hire, within thirty (30) days following the date of
employment.
ARTICLE 4 - WORK WEEK/SHIFTS
- ----------------------------
4.1 The guaranteed basic work week for all employees shall be forty (40)
hours per week, consisting of five (5) eight (8) hour days provided the employee
is available for work as scheduled. For the purpose of this agreement the basic
work week shall be from Monday through Saturday, inclusive. Sunday work shall
be isolated and shall not be part of the basic work week. Any employee may
voluntarily agree to work fewer than his scheduled hours on any work day.
4.2 Each employee who reports for work on his regularly assigned work
day shall be guaranteed eight (8) hours work at the employee's straight time
hourly rate; provided that any employee may voluntarily agree to work fewer than
his scheduled hours on any work day.
4.3 Each employee who reports for work on the first scheduled day of the
week and remains available and able for work the required week's schedule shall
be guaranteed pay at the employee's straight-time hourly rate. This guarantee
shall not apply in cases of strikes, Acts of God, power failures and other
conditions beyond the control of the Company.
4.4 The Company may establish as many shifts as necessary and the
starting time of such shifts shall be optional with the Company. It is agreed,
however, there will be no split shifts.
4.5 Employees shall bid one (1) time each year by seniority for shifts
newly created job, and permanently vacated jobs shall allow for an additional
bid.
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ARTICLE 5 - OVERTIME AND SUNDAY WORK
- ------------------------------------
5.1 Overtime shall be paid for work in excess of 8 hours in any one (1)
day or forty (40) hours in any one (l) week.
5.2 Overtime work when required by the Company shall be paid at time and
one half (1/2) times the straight time hourly rate.
5.3 Sunday work between the hours of 12:00 midnight Saturday and 11:59
P.M. Sunday shall be paid at one and one half (1/2) time the straight time
hourly rate.
5.4 There shall be no pyramiding of overtime.
ARTICLE 6 - HOLIDAYS
- --------------------
6.1 Each employee under the jurisdiction of this Agreement shall receive
the following holidays with full pay:
New Years Day Thanksgiving Day
Memorial Day Christmas Day
Independence Day Employee's Birthday
Labor Day Two Personal Day (see Section 15.5)
*Easter Monday
or the day celebrated by the Federal Government in lieu thereof.
* All employees employed as of the date of this agreement.
6.2 To be eligible to receive holiday pay, the employee shall be at work
on the scheduled working day preceding and following such holiday, except for
those on vacation or authorized leave. Holiday pay shall be given an employee
who is prevented from working on the employee's scheduled day before or the
employee's scheduled day after the holiday because of illness to the employee,
or the employee's spouse or child of such a serious character as to require the
employee to remain away from work. This seriousness must be attested to by a
physician. If a holiday falls on an employee's assigned day off, the employee
will be given the preceding or following work day off in lieu of the holiday,
unless the employee and Company mutually agree to designate another day off in
lieu of the holiday.
6.3 Whenever there is a holiday occurring during the work week,
employees will be paid overtime above the thirty-two (32) hours in that
particular week.
6.4 All hours worked between 12 midnight and 11:59 p.m. on any holiday
shall be paid at time and one half (1/2) the employee's straight time hourly
rate plus eight (8) hours pay at the employee's straight time hourly rate for
the holiday.
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ARTICLE 7 - BULLETINS
- ---------------------
The Company agrees to make available a bulletin board for the posting of
notices and literature from the Union.
ARTICLE 8 - RELIEF PERIOD
- -------------------------
8.1 A relief period of fifteen (15) minutes shall be granted to each
employee at approximately the middle of each half of the work shift. An
additional ten (10) minutes shall be allowed prior to the beginning of any
overtime work. All relief periods will be with pay.
8.2 There shall be a thirty (30) minute unpaid meal break at
approximately the middle of the shift.
ARTICLE 9 - FIDELITY BONDS
- --------------------------
When the Company requires a fidelity bond of any employee, the premium of
said bond shall be paid by the Company.
ARTICLE 10 - UNIFORMS
- ---------------------
The Company shall furnish each driver covered by this Agreement three (3)
sets of uniforms at no cost to the employee. The Company shall furnish insulated
coveralls to fork lift operators who are regularly assigned to work in the walk-
in coolers and a rubber apron and rubber gloves for employees who work the "wet
refrigerators".
ARTICLE 11 - WAGES
- ------------------
11.1 Wage scales are set forth in Appendix "A" attached hereto and made
part hereof.
A. All employees at top rate shall receive a fifty (50) cents per
hour increase for forty (40) hours per week retroactive to April 1, 1992; the
fifty (50) cents shall be added to the rate. A bonus of $250.00 will be paid to
all other employees.
B. All employees shall receive a forty (40) cents per hour
increase beginning on the date of this Agreement.
ARTICLE 12 - DISCHARGE
- ----------------------
12.1 The Employer shall have the right to discharge or discipline any
employee for good cause such as dishonesty, intoxication during working hours,
drinking, gambling or fighting on the Employer's premises, or direct refusal to
obey orders by the Employer which are not in violation of this Agreement,
provided, however that no employee shall be discharged or discriminated against
because of membership in the union or for union activities.
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12.2 In the event that an employee's work is unsatisfactory, the employee
shall be given at least one (1) written notice before disciplinary action is
taken and a copy of this notice shall be sent to the union at the same time.
Notices and warnings shall become null and void after twelve (12) months from
the date of issue.
ARTICLE 13 - SENIORITY
- ----------------------
13.1 Seniority means the total length of service in years, months and
days from the time the employee last entered the bargaining unit. The Company
recognizes the principle that length of satisfactory service should be rewarded
by proportionable security and opportunity for promotion provided that the
employee has the ability to perform the work.
13.2 When it is necessary for the Company to lay-off employees due to
lack of work, those employees last hired shall be first for such lay-off, by
seniority.
13.3 When it is necessary for the Company to rehire employees after a
lay-off, those employees laid off shall be given first opportunity before anyone
else, in reverse order of lay-off.
ARTICLE 14 - VACATION
- ---------------------
14.1 All employees with the following length of service will have earned
and will be entitled to an uninterrupted vacation with full pay:
ANNUAL VACATION PRO-RATA VACATION ON TERMINATION
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ANNUAL VACATION PRO-RATA VACATION ON TERMINATION
- --------------- --------------------------------
1 wk after 1 year 1/12 wk for each additional month
2 wks after 3 years 2/12 wk for each additional month
3 wks after 8 years 3/12 wk for each additional month
4 wks after 20 years 4/12 wk for each additional month
14.2 All weeks shall be open for selection of vacations, provided that no
more than 10% of the employees on each shift, shall be allowed to take vacation
during the seven (7) calendar days prior to Thanksgiving, Christmas and the
Fourth of July; 20% during all other weeks of the year.
14.3 The Company will accept vacation bids between January 1 and January
30 of each year at which time selection shall be awarded by seniority within
classification. Vacation requests after January of each year shall be awarded
on a first-come, first-serve basis.
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ARTICLE 15 - LEAVES OF ABSENCE
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15.1 Paid Sick Leave
---------------
A. Employees shall accrue sick leave at the rate of six (6) days
per year at an accrual rate of .923 hours per week (maximum carry over of four
(4) weeks).
B. In order to receive sick leave payments, an employee must be
absent from work because of a disability caused by sickness or noncompensable
accident (not the result of the employee's misconduct, intentionally self-
inflicted injury or gross negligence) and the disability must be of such degree
that he is physically unable to work. The employee will be compensated at 75%
of their regular wages.
C. Employee must notify Company of such illness on the first day
of absence, unless illness is of such nature that employee is rendered incapable
of compliance with this requirement.
D. A doctor's certificate may be required for payment of sick
leave that extends past the third consecutive work day.
E. Maternity leave shall be treated as any other type of medical
leave.
15.2 Funeral Leave
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In the case of death in the immediate family (parent, spouse, child,
brother, sister, grandparent, parent-in-law, or legal guardian), employees who
have completed the probationary period requiring the employee's absence from his
regularly scheduled assignment, the employee shall be granted a leave of absence
with pay of three (3) work days.
15.3 Military Service
----------------
Employees enlisted or entering the military or naval services of the
United States, pursuant to the provisions of the Selective Service Act, shall be
granted all rights and privileges provided by the Act.
15.4 Jury Duty
---------
Employees summoned and serving on juries will be granted time off
when needed for jury duty and will receive the difference between their
straight-time weekly pay and the amount received while on jury duty.
15.5 Personal Leave
--------------
Full time employees who complete six (6) months of continuous service with
the Employer shall be entitled to two (2) personal
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holidays each calendar year, at a mutually agreed time, with one (1) week prior
notice to the Warehouse Manager.
15.6 Leave For Other Reasons
-----------------------
A. The Company shall grant a leave of absence for up to sixty
(60) days without pay to employees who have completed one (1) year of service
upon one (1) week's notice covering the following reasons:
1. Settlement of an Estate
2. Serious illness or a death of a family member
3. Official Union business
B. The Company may grant other leaves of absence without pay for
other good reasons.
ARTICLE 16 - PROTECTION OF RIGHTS
- ---------------------------------
It shall not be a violation of this Agreement and it shall not be cause
for discharge or disciplinary action in the event an employee refuses to enter
upon any property involved in a lawful primary labor dispute, or refuses to go
through or work behind any lawful primary picket line, including the lawful
primary lines of the Union party to this Agreement and including lawful primary
picked lines at the Company's place of business, provided the picket line has
the approval of the International Brotherhood of Teamsters and the Teamsters
Joint Council No. 55 of Washington, D.C.
ARTICLE 17 - NO STRIKE OR LOCKOUT
- ---------------------------------
The Union agrees that there will be no strike, picketing or other stoppage
of work and the Company agrees that there will be no lockout during the
continuance of this Agreement.
ARTICLE 18 - GRIEVANCE AND ARBITRATION
- --------------------------------------
18.1 It is agreed that should any grievance or dispute arise between the
parties regarding the terms of this Agreement, such matter must be filed in
writing within ten (10) days of the alleged occurrence. An attempt will be made
by the parties to settle the controversy within ten (10) days after receipt of
the alleged grievance. If agreement cannot be reached within the 10 days,
either party may request arbitration by notification in writing to the Federal
Mediation and Conciliation Service with a copy to the other party. An
arbitrator shall be selected by alternately striking from a list submitted by
the Federal Mediation and Conciliation Service as soon as possible thereafter.
18.2 The decision of the Arbitrator shall be final and binding on both
parties hereto.
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18.3 The expense of the Arbitrator shall be borne equally by the Company
and the Union.
18.4 It is expressly understood and agreed that the Arbitrator is not
authorized or empowered to change, modify, add to or subtract from this
Agreement, but is strictly limited to the interpretation and application of this
Agreement in accordance with the material submitted by the parties for his/her
determination.
ARTICLE 19 - SHOP STEWARDS
- --------------------------
The Union shall have the right to appoint or elect one (1) shop steward
and one (1) alternate shop steward per shift. The shop steward and/or alternate
shall report any contract violations to the Union and shall also with the
Union's permission discuss grievances with the Company. Shop stewards and
alternates shall not be discriminated against for carrying out the duties and
the shop steward and alternate agree that their duties shall not interfere with
their regular work responsibility.
ARTICLE 20 - HEALTH AND WELFARE
- -------------------------------
The company will maintain the current level of benefits at no cost to the
employee.
ARTICLE 21 - PROFIT SHARING PLAN
- --------------------------------
The Company will maintain its profit sharing plan.
ARTICLE 22 - SEPARABILITY AND SAVINGS CLAUSE
- --------------------------------------------
If any article or Section of this Agreement or of any Supplements or
Riders thereto should be held invalid by operation of law or by any tribunal of
competent jurisdiction, or if compliance with or enforcement or any Article or
Section should be restrained by such tribunal pending a final determination as
to its validity, the remainder of this Agreement and of any Supplements or
Riders thereto, or the application of such Article or Section to persons or
circumstances other than those as to which it has been held invalid or as to
which compliance with or enforcement of has been restrained, shall not be
affected thereby.
In the event that any Article or Section is held invalid or enforcement of
or compliance with which has been restrained, as above set forth, the parties
affected thereby shall enter into immediate collective bargaining negotiations
after receipt of written notice of the desired amendments by either Company or
Union for the purpose of arriving at a mutually satisfactory replacement for
such Article or Section during the period of invalidity or replacement within
sixty (60) days after receipt of the stated written notice, either party shall
be permitted all legal or economic recourse in support of its demands
notwithstanding any provisions of this Agreement to the contrary.
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ARTICLE 23 - LOSS OR DAMAGE
- ---------------------------
Employees shall not be charged for loss or damage unless clear proof of
gross negligence is shown. This Article is not to be construed as permitting
charges for loss or damage to equipment under any circumstances.
ARTICLE 24 - INSPECTION PRIVILEGES
- ----------------------------------
The Union representative shall be permitted, after contacting management
and obtaining the Company's consent, to have the right to enter and visit the
Company's premises during working hours, provided that no conferences and
meetings between employees and Union representatives shall, in any way, stop,
hinder or obstruct the normal flow of work.
ARTICLE 25 - SUBCONTRACTING
- ---------------------------
The Company shall reduce contract haulers before any current drivers are
laid off. Current employees who are laid off shall have the right to bump
within the bargaining unit according to seniority and retain their rates of pay.
In the event that any driver employed on the date of this Agreement is
permanently laid off as a result of subcontracting, the Company shall provide
severance pay to such employee at the rate of one (l) weeks pay per year of
service up to a maximum of thirty (30) days pay.
ARTICLE 26 - DEFECTIVE EQUIPMENT AND DANGEROUS CONDITIONS OF WORK
- -----------------------------------------------------------------
The Company shall not require employees to take out on the streets or
highways any vehicle that is not in safe operating condition or equipped with
the safety appliance prescribed by law. It shall not be a violation of this
Agreement where employees refuse to operate such equipment unless such a refusal
is unjustified. All equipment which is refused because not in safe condition or
properly equipped, shall be appropriately tagged so that it cannot be used by
other drivers until the equipment is certified as sound by the Company. After
equipment is repaired, the Company shall place on such equipment as "OK" in a
conspicuous place so the drive can see the same.
Under no circumstances will an employee be required or assigned to engage
in any activity involving dangerous conditions of work or danger to person or
property or in violation of any applicable statute or court order, or in
violation of government regulation relating to safety of person or equipment.
The term "dangerous conditions of work" does not relate to the type of cargo
which is hauled or handled. Any employee involved in any accident shall
immediately report said accident. When required by his Company, the employee,
before starting his next shift, shall make out an accident report in writing on
forms furnished by the Company and shall turn in all available names and
addresses of witnesses to the accident. Failure to comply with this provision
shall subject such employee to disciplinary action by the Company.
9
Employees shall immediately, or at the end of their shift, report all
defects of equipment. Such reports shall be made on a suitable form furnished
by the Company and shall be made in multiple copies, one copy to be retained by
the employee. The Company shall not ask or require any employee to take out
equipment that has been reported by any other employee as being in an unsafe
operating condition until same has been approved as being safe by the mechanical
department.
When the occasion arises where an employee gives written report on forms
in use by the Company of a vehicle being in an unsafe working or operating
condition, and receives no consideration from the Company, he shall take the
matter up with the officers of the Union who will take the matter up with the
Company.
The Company shall install heaters and defrosters on all trucks and
tractors.
ARTICLE 27 - MANAGEMENT RIGHTS
- ------------------------------
The Company retains the sole right to manage its business in all its
phases and details and to direct the work force; provided, however, such rights,
in no event, shall be so exercised to infringe on the rights of any employees
under this Agreement.
ARTICLE 28 - TERM OF AGREEMENT
- ------------------------------
This Agreement shall continue in effect from July 6, 1993, to July 6,
1998, and shall continue in effect from year to year thereafter unless either
party serves notice in writing on or before July 6, 2998, or on or before July
6th of any year thereafter of a desire for termination of or for changes in the
Agreement. In the event either party serves such notice in respect to changes
in the Agreement, the Employer and the Union shall immediately begin
negotiations on the proposed changes, and that pending the termination of
negotiations, neither party shall change conditions existing under the
Agreement, it being understood and agreed that either party may in its own
discretion, by written notice, unilaterally terminate such negotiations whenever
it so desires.
FOR THE COMPANY FOR THE UNION
/s/ Robert Herman /s/ Roy E. Essex
- --------------------------- --------------------------------
Executive V.P. /s/ Louis W. Mclaughlin
- --------------------------- --------------------------------
Jumbo Produce, Inc. 12/27/93
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APPENDIX "A"
PRODUCE WAREHOUSE RATES
82-83 (Porter, Traffic Coordinator, Wrapper)
Warehouse 4/1/92 7/6/93 7/6/94 7/6/96 7/6/96 7/6/97
- --------- ------ ------ ------ ------ ------ ------
Start 8207 5.00 5.00 5.00 5.00 5.00
90 days 8217 5.50 5.50 5.50 5.50 5.50
6 months 8227 6.00 6.00 6.00 6.00 6.00
12 months 8237 6.50 6.50 6.50 6.50 6.50
18 months 8247 7.00 7.00 7.00 7.00 7.00
24 months 8257 7.50 7.50 7.50 7.50 7.50
30 months 8267 8.25 8.25 8.25 8.25 8.25
36 months 8277 9.75 10.15 10.55 10.95 11.35 11.75
84-85 (Selector)
- -----------------
Start 8407 6.50 6.50 6.50 6.50 6.50
90 days 8417 7.00 7.00 7.00 7.00 7.00
6 months 8427 7.50 7.50 7.50 7.50 7.50
12 months 8437 8.00 8.00 8.00 8.00 8.00
18 months 8447 8.50 8.50 8.50 8.50 8.50
24 months 8457 9.25 9.25 9.25 9.25 7.25
30 months 8467 10.00 10.00 10.00 10.00 10.00
36 months 8477 11.75 12.15 12.55 12.95 13.35 13.75
86-87 (Drivers)
- ----------------
All at 8647 13.75 14.75 15.25 15.75 16.25 16.75
88-89 (Forklift)
- -----------------
Start 8807 7.00 7.00 7.00 7.00 7.00
90 days 8817 7.50 7.50 7.50 7.50 7.50
6 months 8827 8.00 8.00 8.00 8.00 8.00
12 months 8837 8.50 8.50 8.50 8.50 8.50
18 months 8847 9.25 9.25 9.25 9.25 9.25
24 months 8857 10.00 10.00 10.00 10.00 10.00
30 months 8867 11.50 11.50 11.50 11.50 11.50
36 months 8877 13.00 13.40 13.80 14.20 14.60 15.00
80-81 (Shipper/Receiver)
- ------------------------
Start 8001 8.50 8.50 8.50 8.50 8.50
90 days 8012 9.00 9.00 9.00 9.00 9.00
6 months 8023 9.50 9.50 9.50 9.50 9.50
12 months 8034 10.00 10.00 10.00 10.00 10.00
18 months 8045 10.50 10.50 10.50 10.50 10.50
24 months 8056 11.25 11.25 11.25 11.25 11.25
30 months 8067 12.25 12.25 12.25 12.25 12.25
36 months 8078 14.00 14.40 14.80 15.20 15.60 16.00
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