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EXHIBIT 10.37
A G R E E M E N T
This Agreement made and entered into this day of May, 1997, by and
between Sleepmaster L.L.C., its plant located in Linden, New Jersey, hereinafter
referred to as the Company, and the United Steelworkers of America (ABG
Division), AFL-CIO, CLC, and its Local Union #396, hereinafter referred to as
the Union.
WITNESSETH:
WHEREAS, it is the intent and purpose of the parties hereto to promote
and improve the industrial and economic relations between the Company, its
employees and the Union, to establish a basic understanding relative to rates of
pay, hours of work, and amicable adjustment of all disputes and grievances.
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I - RECOGNITION
The Company recognizes the Union as the sole and exclusive collective
bargaining agency for all of its production and maintenance employees with
respect to wages, hours and conditions of employment, but excluding office
clerical, professional employees, guards, salesmen and all supervisors as
defined in the Act, limited only to its plant located at 2001 Lower Road,
Linden, New Jersey.
ARTICLE II - UNION SHOP
Section 1. It shall be a condition of employment that all employees of
the Company covered by this Agreement who are members of the Union in good
standing on the effective date of this Agreement shall remain members in good
standing, and those who are not members on the effective date of this Agreement
shall, on the thirtieth (30th) day following the effective date of this
Agreement or after the signing of this Agreement, whichever is later, become and
remain members of the Union in good standing.
Section 2. It shall also be a condition of employment that all
employees covered by this Agreement and hired on or after its effective date or
on or after the signing of
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this Agreement, whichever is later, shall, on the thirtieth (30th) day following
the beginning of such employment, become and remain members in good standing of
the Union. For the purpose of this Article, a day shall be defined as eight (8)
hours of work.
Section 3. The Company will, within five (5) working days after receipt
of written notice from the Union, discharge any employee who is not in good
standing in the Union as required by the preceding section of this Article.
ARTICLE III - CHECK-OFF
Subject to the provision of Section 302 (c) of the Labor Management
Relations Act and provided that the Company has received from each employee on
whose account such deductions are made a written assignment, the Company shall
deduct periodically, as stated in such authorization, from the wages of each
such employee the membership dues in the Union of such employee and shall remit
same to the Union together with an itemized list. Such remittance shall be made
at the option of the Union, in case of weekly deductions, not later than ten
(10) days after the end of the month in which such deductions are made, and in
the case of monthly deductions, not later than ten (10) days after such
deductions are made.
ARTICLE IV - HOURS OF WORK
Section 1. The hours of work for full-time employees shall consist of
eight (8) hours per day and forty (40) hours per week. A contract holiday shall
be considered as a day worked for the purpose of computation of overtime. Full
time employees shall have an unpaid lunch period of thirty (30) minutes each
work day.
Section 2. Full time employees are those employees who work a regular
shift of forty (40) hours per week, eight (8) hours per day. Part time employees
are those employees who work less than eight (8) hours per day on a part time
shift.
Section 3. It is understood and agreed that because of the nature of
the Company's business, the Company shall have the right to establish various
shifts,
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whether it be day, night, Saturday or Sunday, in order to cover all phases of
its business, after discussion with the Union.
Section 4. All hours worked in excess of eight (8) hours per day and
forty (40) hours per week shall be paid at the rate of time and one-half. All
paid time under the agreement shall be considered working time for the purposes
of calculating overtime. Unpaid time expended on Union business in accord with
Article VIII (Section 2), shall also be included for the purposes of overtime
calculations. All other unpaid time off shall be excluded for purposes of
overtime calculations. If an employee works on Saturday and has worked less than
forty (40) hours that work week because the Company has sent him home early due
to lack of work (or has volunteered to go home early in response to a
supervisor's request for volunteers), the employee will be credited with the
hours he lost due to being sent home early for purposes of calculating overtime
under this Article.
Section 5. Hours of work are from 7:00 A.M. to 3:30 P.M. for first
shift and from 3:30 P.M. to 12:00 A.M. for second shift. Upon six (6) months
written notice to the Union, the Company may establish staggered shifts, the
first shift not to start earlier than 6:00 am nor later than 8:00 am, and the
second shift not to start earlier than 2:30 pm nor later than 4:30 pm. Staggered
shifts are not to be implemented before May 1, 1998.
Section 6. Any employee working past five and one-half (5 1/2) hours
into the shift shall be paid for the remainder of the day if sent home by the
Company except in the case of Acts of God. The Company shall provide employees
with one-half (1/2) hour notice before being sent home.
Section 7. Employees will be given two (2) hours notice for
non-scheduled overtime.
ARTICLE V - HOLIDAYS
Section 1. All employees on the payroll of the Company for thirty (30)
days or more shall be eligible to receive the following holidays:
New Year's Day Thanksgiving Day
Washington's Birthday Day after Thanksgiving
Memorial Day Christmas Day
Fourth of July Good Friday
Employee's Birthday Labor Day
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Paid holiday time will count for overtime purpose.
Section 2. Full-time regular employees who are employed the day before
and the day after a scheduled holiday shall receive eight (8) hours pay at their
base hourly rate for the aforementioned holidays. The employee will be required
to work the full day before and after the holiday, except that the employee will
be given two (2) fifteen (15) minute grace periods with respect to lateness,
which shall apply to a maximum of two (2) holidays during the year. The grace
period shall not excuse the lateness for any purpose outside of this Article.
Those employees who do not work the day before or the day after the said
scheduled holiday shall receive holiday pay if the absence is for any one of the
following:
(a) A compulsory appearance for jury duty or before a draft board.
(b) Inability to work due to an authenticated illness or injury
occurring on such day before or day following such holiday.
(c) Layoff occurring on such day before or day after such holiday.
(d) A necessary court appearance.
(e) A death of the employee's husband or wife or of the employee's
child or parent.
Section 3. If employees work on a named holiday, except employee's
Birthday, they shall receive time and one half plus holiday pay when worked. No
employee shall work on his Birthday without the prior written permission of his
Supervisor. If an employee is required by his Supervisor to work on his
Birthday, he will be paid time and one-half plus the Holiday pay.
Section 4. Employees may request a vacation day on Martin Luther King
Day on a first come first serve basis, the total number of people off to be
determined by the Company.
ARTICLE VI - SICK DAY/PERSONAL DAY
Section 1. Employees who have completed their probation period shall be
entitled to three (3) paid sick/personal days each contract year.
Section 2. Employees shall be paid at their base hourly rate for an
eight (8) hour
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day.
Section 3. An employee shall provide at least fifteen (15) minutes
notice in advance of or at the beginning of the employee's scheduled shift prior
to taking a sick or personal day. If there are multiple requests for the same
personal day such that it interferes with Company operations, seniority shall
govern.
Section 4. Sick/personal days shall be automatically applied to any
unexcused absence. Any sick/personal day not used as of May 1 shall be bought
back by the Company at the base hourly rate for an eight (8) hour day. Paid
sick/personal days shall count for purposes of computing overtime.
ARTICLE VII - VACATIONS
Section 1. Employees who have been in the Company's active employment
for a period of one (1) year or more will be entitled to vacation as of their
anniversary date in accord with the following schedule:
Full-time employees:
Length of Service Vacation Benefits
One (1) year Five (5) days
Two (2) years Six (6) days
Three (3) years Seven (7) days
Four (4) years Eight (8) days
Five (5) years Ten (10) days
Six (6) years Ten (10) days
Seven (7) years Ten (10) days
Eight (8) years Ten (10) days
Nine (9) years Ten (10) days
Ten (10) years Fifteen (15) days
Eleven (11) years Sixteen (16) days
Twelve (12) years Seventeen (17) days
Thirteen (13) years Eighteen (18) days
Fourteen (14) years Nineteen (19) days
Fifteen (15) years or more Twenty (20) days
Section 2. Layoff periods of up to 90 days and leaves of absence of up
to 30 days (12 weeks in the case of FMLA leaves) shall be considered as time in
the Company's active employ for purposes of calculating vacation entitlement.
Section 3. Vacation pay shall be computed at the employee's base hourly
rate of pay. Should a holiday occur during the vacation period, the Company may
either extend the vacation period or pay the employee holiday pay in lieu
thereof.
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Section 4. The calendar year is divided into four vacation periods
corresponding to four calendar quarters. Employees who wish to take vacation in
any quarter should submit their vacation request in writing to their supervisor
thirty (30) days before the start of that quarter. Employees who have timely
submitted their vacation request shall be given preference, based on seniority,
for available slots, which are determined by business needs. Employees who
submit requests late shall be granted vacation based on date of request in light
of available slots, as determined by business needs.
Section 5. No more than two weeks vacation may be taken at any time.
ARTICLE VIII - UNION BUSINESS
Section 1. A Union Official (including shop steward) will be permitted
reasonable time to present and process grievances on the Company property
without loss of time or pay during his regular working hours, provided that: (1)
presentation and processing of grievances will take place at a time designated
by the Shift Supervisor, and (2) only one Union Official (including shop
steward) will be eligible for coverage under this Article during any shift.
Section 2. Duly designated Union Officers and shop stewards shall be
permitted to take unpaid time off for official Union business away from the
plant such as Union conferences, seminars and educational purposes. Such time
off shall be credited for overtime purposes. In order to be granted leave for
Union business: (1) the employee must provide two (2) weeks written notice, (2)
no more than four (4) employees can be off at any given time, and (3) the leave
shall not unduly or unreasonably interfere with the ongoing production needs of
management.
ARTICLE IX - PROBATIONARY EMPLOYEES
New employees shall be on a probationary basis for the first ninety
(90) days. During the probationary period, they shall have no seniority rights,
shall receive no welfare, medical or insured benefits, and may be discharged by
the Company in its sole
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discretion with or without just cause, without recourse to arbitration. If the
employee is retained beyond the ninety (90) days, his name shall be added to the
seniority list and his seniority shall date back to the date of commencement of
employment.
ARTICLE X - RECALLS AND TRANSFERS
An employee who is a member of the bargaining unit and who is either
being upgraded to a supervisory position or is being transferred to a job not
covered by this Agreement shall cease to be covered by this Agreement and shall
not be subject to any of the terms of this collective bargaining agreement.
ARTICLE XI - DISCHARGE
The Company agrees that it will not discharge any non-probationary
employee except for just cause, which means, among other things, but is not
limited to, inefficiency, insubordination, sabotage, drunkenness, bringing
alcohol onto the job, excessive lateness or absence, punching time cards of
other employees or infraction of Company's work rules, which are part of this
Agreement. Notice shall be given to the Union of any discharge, giving a reason
therefor. This clause is not a modification or waiver of any rights by the
parties hereto of the grievance and arbitration provisions of this Agreement. In
the case of a discharge or a suspension, written notice will be given to a Shop
Steward or other Union Representative within one (1) working day. The Union will
have five (5) working days from the date it receives written notice of discharge
or suspension to file a written grievance at Step 1 of the Grievance Procedure.
ARTICLE XII - GRIEVANCE AND ARBITRATION
Section 1. Any dispute or grievance between the Company and its
employees or the Union growing out of the interpretation or application of any
clause of this
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Agreement or any breach or threatened breach of this Agreement, shall be settled
in the following manner (except to the extent that Article XXIX governs):
Step 1: Employees are encouraged to speak directly to their
Supervisors, with or without their Shop Stewards, and work out their on-the-job
problems on an informal basis. If, however, the problem cannot be informally
adjusted, the Union shall file a grievance within five (5) working days of the
grievance having arisen. The grievance must be in writing and must refer to the
article(s) of the Agreement that are alleged to have been violated. The Shop
Steward will meet with the Supervisor to attempt to resolve the grievance. If
the grievance is not resolved, or the Supervisor fails to respond within three
(3) working days, the Union may appeal to the Plant Manager in writing, within
three (3) working days thereafter.
Step 2: If a timely appeal from Step 1 is filed with the Plant Manager,
he will meet with the Union President within three (3) working days after
receipt of the appeal. If no meeting takes place, or if the grievance is not
resolved or the Plant Manager fails to respond within three (3) working days of
their meeting, the Union may appeal to Step 3 in writing within six (6) days of
the date written appeal from Step 1 was filed.
Step 3: If a timely appeal from Step 2 is filed with the Plant Manager,
he will meet with the International Union Representative within ten (10) working
days after receipt of the appeal. If no meeting takes place, or if the grievance
is not resolved, or the Plant Manager fails to respond within three (3) working
days of their meeting, the Union may file for arbitration in writing within
twenty (20) days of the date of the Step 3 meeting, or if no meeting took place,
the Union may file within twenty (20) days of then end of the ten (10) working
day period.
If the Union fails to: file a timely grievance, appeal in timely
fashion to Step 2 or Step 3, or file for arbitration in timely fashion, the
decision of the Company shall be deemed final and shall waive and bar any
subsequent arbitration or other legal challenge by the Union or the grievant.
The parties may mutually agree to extend the time to file a grievance, appeal,
or file for arbitration in writing, but shall be under no obligation to do so.
An extension of time in one instance shall in no way set a precedent or
requirement that an extension be granted in another situation.
Arbitration: The arbitrator shall be designated for this purpose by
agreement between the parties; said arbitrator shall be a member of the American
Arbitration Association or the New Jersey State Board of Mediation. The
arbitration shall proceed in accordance with the rules then pertaining to either
the American Arbitration
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Association or the New Jersey State Board of Mediation, whichever is selected.
The cost of arbitration shall be borne equally by the Union and the Company. The
failure of either party to submit an arbitrable dispute to arbitration within
the time limited by this paragraph shall be conclusively deemed to be a waiver
of its right thereto and of the claim upon which it is based. No individual
employee may initiate an arbitration proceeding, it being agreed and understood
that the Company and the Union are the only parties at interest herein.
Section 2. Nothing herein contained shall be construed as depriving the
parties hereto of the right to initiate and process a grievance directly with
each other and thereafter to utilize the arbitration procedures of this Article.
Section 3. There shall be no right to arbitration to obtain, and no
arbitrator shall have the authority to make an award granting any change,
modification, alteration of, addition to or subtraction from the provisions
contained in this Agreement.
ARTICLE XIII - BULLETIN BOARD
The Company shall provide a bulletin board for the exclusive use of the
Union at each time clock. No item derogatory to any employee or to the Company
shall be posted on this bulletin board.
ARTICLE XIV - SANITARY CONDITIONS
The Company will comply with applicable safety and health regulations.
The Company, Union and all employees shall cooperate in maintaining a safe and
sanitary work environment. The Company shall post a sign in the locker rooms
providing notice that any employee defacing property or creating unsanitary
conditions will be terminated by agreement of the Company and the Union.
ARTICLE XV - EMPLOYEE INJURY
Any employee injured during working hours shall receive the rest of the
day off without loss of pay, provided that the injuries are such that a doctor
orders the employee not to return to work.
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ARTICLE XVI - MILITARY SERVICE
Any employee who enters military service or training in the armed
forces of the United States or its subdivisions shall, upon completion of such
service or training, be restored to his employment status, provided that he can
do the work, and shall be entitled to the benefits as provided for by law.
ARTICLE XVII - NON-DISCRIMINATION
No employee shall be subjected to any discrimination because of his
race, creed, color or for Union activities.
ARTICLE XVIII - MANAGEMENT RIGHTS
Section 1. Subject only to any limitations stated in this Agreement,
the Union recognizes that the Company retains the exclusive right to manage its
business, including but not limited to the right to determine the methods and
means by which its operations are to be carried on; to direct work force; to
conduct its operations in a safe and effective manner; to decide the number and
location of plants, the equipment, the products to be used, the method of
operation, the scheduling; to determine whether and to what extent the work
required in its business shall be performed by employees covered by this
Agreement; to maintain order and efficiency in its plant and operations; to
hire, lay off, assign, transfer, promote and determine the starting and quitting
time and the number of hours to be worked; to discipline, suspend and discharge
employees for cause, including violation of any of the terms of this Agreement.
Section 2. The above rights of management are not all inclusive but
indicate the type of matters and rights which belong to and are inherent to
management. Any of the rights, powers and authority the Company had prior to
entering into this collective bargaining agreement are retained by the Company,
except as expressly and specifically abridged, delegated, granted or modified by
this Agreement.
Section 3. The Union recognizes the right of the Company to establish,
maintain and enforce, reasonable plant rules and regulations and to revise such
rules and regulations, provided they do not conflict with the provisions of this
Agreement.
ARTICLE XIX - UNION MACHINERY AND GRIEVANCE TIME
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All consultations regarding grievances through the first two steps of
the grievance machinery provided for in Article XII shall not take place on
Company time during regular hours. The Shop Steward only shall be allowed to
process grievances during Company time. The employees' committee for this
purpose shall be limited to the Shop Steward or in his absence, a member of the
Shop Committee and the grievant. Representatives of the Union and/or the
International may also attend any and all consultations dealing with grievances,
as provided for in the first in the first two steps of Article XII.
ARTICLE XX - ALTERATION OF AGREEMENT
No agreement, understanding, alteration, variation, waiver or
modification of the terms, provisions, covenants or conditions contained in this
Agreement shall bind the parties hereto, unless made and executed in writing and
signed by the parties hereto and made a part hereof.
ARTICLE XXI - NO STRIKE OR LOCKOUT
Section 1. The Company agrees not to conduct a lockout for the duration
of this Agreement.
Section 2. The Union agrees that it will not cause, call, sanction or
authorize any strike, slowdown or work stoppage against the Company.
Section 3. Employees engaging in strikes or work stoppages not
authorized by the Union may be disciplined by the Company, subject to the
grievance procedure. Employees engaging in a strike, slowdown or work stoppage
not authorized by the Union and who fail to resume work promptly after being
directed to do so by the Union shall lose the status as such.
ARTICLE XXII - REST PERIOD
There shall be one (1) paid fifteen (15) minute rest period in the
morning and a
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fifteen (15) minute rest period in the afternoon before quitting time. There
shall be no wash up time.
ARTICLE XXIII - REPORTING PAY
Employees reporting for work on their regularly scheduled shift, or at
the request of the Company, without at least eight (8) hours prior notice that
their services will not be needed, and who are not put to work, shall be paid
four (4) hours reporting pay at their prevailing rate of pay. The Company will
not be obligated to pay reporting pay if the employee refuses to accept work,
quits or is voluntarily laid off or laid off by reason of emergency forcing
closedowns beyond the Company's control, such as fire, power failure, broken
machinery or an Act of God.
ARTICLE XXIV - 401(k) PLAN
Section 1. The Company shall continue its current 401(k) plan, subject
to IRS and PBGC approval. An employee is eligible to participate in the 401(k)
plan the first month following completion of one (1) year of service. The
Company will contribute, for each eligible employee who has worked 1000 hours
during the preceding calendar year, $200.00 for the first year of the contract,
$250.00 for the second year of the contract, and $300.00 for the third year of
the contract. Contributions shall be made by July 1 of each year for the prior
calendar year. Accordingly, the contributions for the calendar year 1997 will be
made by July 1, 1998. Employees may invest in accord with plan rules in order to
provide tax deferred income for retirement. The 401(k) plan terms shall govern
in all respects.
ARTICLE XXV - BEREAVEMENT
Section 1. In the event of death of a member of the employee's
immediate family, which is defined as husband, wife, son, daughter, father,
mother, brother, sister,
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current mother-in-law and father-in-law (at the time of death), the employee
shall be entitled to up to a maximum of three (3) days off and shall be paid for
each day of such absence from the employee's regularly scheduled work. All
employees shall be paid eight (8) hours pay at their base hourly rate for each
such day of absence. The employee claiming bereavement pay shall be required to
furnish proof of death of the relative. This section shall not apply to any days
when an employee was not scheduled to work.
Section 2. Bereavement leave shall include grandparents - one day - day
of funeral.
Section 3. In order to receive the benefit of this Article an employee
must list with the Company the names of his mother-in-law and father-in-law and
his grandparents within thirty (30) days of hire, or in the case of current
employees within thirty (30) days of contract ratification. In the case of
remarriage, the employee must promptly list the current in-laws. A form will be
provided to employees by the Company for this purpose.
Section 4. If an employee seeks unpaid leave in addition to the paid
leave provided under this Article, he must obtain advance approval of the Shift
Manager or Plant Manager in writing, or the failure to return as scheduled shall
be unexcused.
ARTICLE XXVI - LEAVE OF ABSENCE
Section 1. Employees desiring leaves of absence shall request the same
from their immediate supervisor of the department in which they work. The
request shall be in writing on an agreed upon form furnished by the immediate
supervisor for that purpose. The Supervisor shall immediately furnish the Union
President a copy of the request with a written notation as to the action taken.
The request shall state for what purpose and to what date the leave of absence
is desired, which shall not exceed thirty (30) days' duration. The leave shall
be at the sole discretion of the Company.
Section 2. An employee returning to work from a leave of absence shall
return to his last job held prior to the leave. If his job no longer exists, the
employee, upon return, shall be placed in a comparable position if possible.
Section 3. Any employee absent from work for longer than three (3) days
for a particular illness or disability may be required to furnish a doctor's
certificate showing proof of continued illness or disability upon return to
work.
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Section 4. Application for extension of leave of absence shall be made
in the same way as provided for making original application and, if granted,
shall cover the extended period.
Section 5. This article shall be deemed amended insofar as necessary to
comply with the Federal and New Jersey FMLA.
ARTICLE XXVII - SENIORITY
Section 1. Seniority is defined as the length of an employee's service
with the Company, dating from the date of last employment by the Company, the
purpose of which is to provide a declared policy of right of preference measured
by such length of service.
Section 2. Seniority within the plant shall prevail in layoffs and
recalls after layoffs, job openings and all similar matters provided the
employee retained or returned is qualified at the discretion of the Company.
Section 3. An employee's rights shall terminate and said employee shall
cease to be an employee of the Company if:
1. He voluntarily leaves the employment of the Company;
2. He is discharged for just cause;
3. He is absent from work for a period of two (2) working days
without notifying the personnel supervisor or department
supervisor.
4. He fails to return to work at the end of a leave of absence
without good cause.
5. In recalling after layoff, the Company shall send a notice to
the employees by certified mail, telegram or telephone to the
last known address appearing on the Company's records. If
within five (5) days of such notice an employee fails to
report or give satisfactory explanation for not reporting, he
shall be considered as voluntarily quitting, with a copy of
such notice being served upon the chairperson of the Shop
Committee.
ARTICLE XXVIII - JURY DUTY
All employees who serve on jury duty shall receive the difference in
their pay
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from what they receive when serving on the jury.
ARTICLE XXIX - WAGES
Section 1. Individual Incentive Program:
i. Incentive rates will be set by the Company through the use of an MTM
based system, which includes scanning of work tickets. The standards program is
expressed in terms of standard hours and is paid at the applicable
classification base rate for the job, as set forth in Appendix 2, except in the
case of a red circled rate as discussed below. The standards developed take into
account allowances for necessary personal time, fatigue, and unavoidable delays,
using U.S. Government guidelines. The classification base rate correlates to
100% under the MTM system. Downtime or delays in excess of normal allowances,
due to lack of work, materials, components, supplies, and equipment malfunctions
shall be paid at the base classification rate. MTM times will be restudied by
July 29, 1997.
ii. Where the Company removes an employee from his standard job to
perform other work, the employee shall receive his average straight-time hourly
pay rate (inclusive of average hourly incentive earnings and any applicable
seniority bonus) over the prior three weeks, for each hour worked away from his
standard job.
iii. All data concerning the development of the MTM standards is
available to the Union for review, upon request, at the Company premises. It is
agreed that such data, as well as the methodology and analysis, are confidential
trade secret information and shall not be copied by the Union or shared by the
Union with any person without the Company's explicit prior written consent. It
is recognized that in the event of a dispute concerning a standard, such
information may be reviewed by a Union official, Union counsel, or an
arbitrator, insofar as those parties agree to the confidentiality of the
information as set forth above.
iv. Incentive standards are set so as to provide earnings opportunities
of 125% above the classification base rate for an average worker working at
incentive pace (except for red circled workers as discussed below). An employee
will be given 30 days to produce at standard (100%) for his job classification.
If he fails to do so he shall be given notice to bring his standard up to at
least 100% within 30 days. This notice shall be given in writing with a copy to
the Union, and the employee shall be counselled in the presence of the shop
steward. If, after receiving such notice, the employee fails to bring his
production level up to 100% within 30 days, he shall be permitted to bump into
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any team incentive or day rate position within the plant based on his seniority,
or if he fails to bump he shall be placed on layoff. The employee shall have a
30 day trial period to prove he is qualified to perform the job he bumps into.
He shall receive the classification base rate for the new position.
v. In the case of new or changed incentive standards (or changeovers
from non-incentive jobs to incentive jobs) established by the Company during the
term of this Agreement, the grievance and arbitration procedure set forth below
shall apply. No grievance shall be filed for the first 30 days after a standard
is put into effect, although employees or the Union may advise the Company that
they feel the standard is incorrect and request a recheck. After the completion
of the 30 day period a grievance may be filed. The grievance must be filed
within 45 days of implementation of the new or changed standard to be timely.
The 45 day period shall include the 30 day trial period. The time limit may be
extended by mutual agreement of the parties in writing. As part of the grievance
procedure the Union may observe the disputed operation and review any data used
to develop the standard, subject to the confidentiality standards set forth
above. If the parties cannot resolve the dispute as to the standard within 20
days after filing the grievance, either party may file a written request for
arbitration within 15 days thereafter. Requests for arbitration filed after 15
days shall be untimely, except that the time limit may be extended by the
parties' mutual agreement in writing.
vi. Arbitration shall be filed with the New Jersey State Board of
Mediation. The parties shall specify that the panel shall be limited to
arbitrators with experience in resolving incentives disputes, preferably with
knowledge of the MTM system.
vii. Once an incentive rate has been established, it shall not be
subject to change unless there are changes in the method, material, equipment or
layout, and such changes would result in an accumulated change of 5% or more to
the original established operational time. In that event only the operations
which have changed will be re-studied, and the overall rate adjusted
accordingly. The intent of this section is to address changes which impact the
time it takes to perform an operation, and employee performance shall not be a
valid reason to restudy an operation.
viii. The arbitrator shall not be empowered to change the
classification base rate associated with an incentive standard, or to change a
red circled base rate (discussed below), or to change a red circled incentive
rate which is correlated to a red circled base rate. The arbitrator's authority
shall be limited to determining whether the standard (100%) rate has been set in
accordance with the MTM system, as set forth herein,
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unless it is shown that the standard is unreasonable or creates a manifest
hardship for employees.
ix. Red circled base rates, as correlated to red circled incentive
rates, are set forth in Appendix 3. These rates are of no precedential value and
apply only to the particular individual in recognition of earning capacity under
the old incentive system.
x. An employee with a red circled base rate that is correlated to a red
circled incentive rate of less than 100% shall be subject to the requirements of
paragraph iv, above, as are all other employees.
xi. An employee with a red circled base rate, correlated to a red
circled incentive rate, shall be subject to the following conditions. Should the
employee's actual incentive rate fall below his red circled incentive rate, his
red circled base rate shall be reduced by a number calculated as follows: (1)
subtract the base rate for the classification from the red circled base rate;
(2) divide that number by the number of incentive points by which the red
circled incentive rate exceeds 100%; (3) multiply that result by the number of
incentive points the employee's actual incentive rate falls below his red
circled incentive rate. This computation shall be made on a daily basis.
xii. An employee with a red circled base rate shall only receive
incentive pay if his actual incentive rate exceeds his red circled incentive
rate. In such event his incentive earnings shall be calculated as follows. Once
an employee reaches his red circled incentive rate he shall receive incentive
calculated based upon the classification base rate, without regard to his red
circled base rate.
xiii. The Company agrees to put the Sewing Department on individual
incentive by January 1, 1998. For purposes of this provision, the Sewing
Department will be deemed to include only the following classifications: (1)
label iron, (2) capper, (3) flanger, (4) label sew, (5) border, (6) quilter. If
for any reason the Company is unable to have an incentive in effect as of
January 1, 1998, Sewing Department employees will receive a $.35 per hour
increase effective January 1, 1998 which shall remain in effect until the
individual incentive is implemented. Under no circumstances shall a dispute as
to the Sewing Department incentive be a basis to contend that the incentive was
not implemented, irrespective of the ultimate finding of an arbitrator as to the
merits of the dispute.
Section 2. Team Incentive Program #1: Servicing Operating Lines
i. Incentive rates for certain loader positions are based on the actual
incentive percentage rate earned by the operators for whom they are loading, and
the ratio of
-17-
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loaders to operators. The incentive earnings for these loader classifications
are determined by taking the daily incentive rate earned by the operators fed by
the loading team, subtracting 100%, and dividing that percentage by the number
of loaders, established by a ratio set by the Company for that loader
classification. The resulting number is then multiplied by the classification
base rate for the individual loader, as in the case of individual incentives.
The loader/operator ratio is set forth in Appendix 4, along with the
classification base rate for all team loader classifications.
ii. Certain team loaders have red circled base rates in recognition of
their individual earning capacity under the old incentive system. These rates
have no precedential effect. See Appendix 3.
iii. Team loaders with red circled base rates shall not receive
additional incentive pay until their incentive earnings based upon their
classification base rate exceed their red circled base rate. In that event the
employee will be paid at his actual incentive rate as applied to his
classification base rate, without regard to his red circled base rate. This
computation shall be made on a daily basis.
iv. Team loaders must keep pace with the operators. Failure to do so
will result in progressive counselling in the presence of the shop steward. If
an employee cannot keep pace after counselling, he may bump into any day rate
position in the plant, based upon his seniority, or if he fails to bump he shall
be placed on layoff. The employee shall have a 30 day trial period to prove he
is qualified to perform the job he bumps into. He shall receive the
classification base rate for the new position.
Section 3. Team Incentive Program #2
i. Although it is the intention of the Company to place as many
employees as feasible on the individual incentive program or the Team Incentive
Program #1, as set forth above, that is not practicable for all positions at
this time. In order to nevertheless provide certain production related positions
with a form of incentive, pending changeover to MTM, these classifications will
be paid, in addition to their classification base rate, $.01 for each piece
loaded on the truck during their shift. See Appendix 2.
ii. Certain individuals participating in the Team Incentive Program # 2
have red circled base rates. These rates shall have no precedential effect. See
Appendix 3. These individuals shall be entitled to additional team incentive
payments only if the number of pieces loaded on their shift exceeds 1200.
Section 4. Day Rate Program
i. Day rate positions receive a straight hourly classification pay rate
as set forth
-18-
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in Appendix 2. Certain individuals in day rate positions have red circled rates
as set forth in Appendix 3. In the event the Company converts day rate positions
to individual incentive or team incentive positions during the term of this
Agreement, the procedures and principles to calculate and apply incentives as
set forth above shall apply.
Section 5. Seniority Bonus Increases
i. There shall be hourly increases of:
5/1/97 -- $.35/hr
5/1/98 -- $.35/hr
5/1/99 -- $.35/hr
These increases shall apply to all individuals who have passed their
probationary period at the time the increase goes into effect. These increases
shall not be added to the classification base rate, and shall not impact upon
incentive earnings, but shall be paid for each hour worked as a seniority bonus.
Classifications base rates are set forth in Appendix 2.
ii. The classification base rate (plus any seniority bonus applicable
to the employee over the course of this Agreement) shall be the hourly rate for
purposes of holiday and vacation pay.
iii. Red circled rates shall only apply to the employee's standard job.
ARTICLE XXX - CREDIT UNION
The Company agrees to make payroll deductions for credit union
purposes, if the employee has provided the Company with a properly executed
signed statement authorizing the deduction. Such deductions shall only be
remitted to the credit union once a month. The employee may change the amount of
his deduction in writing, once every calendar quarter, during the week
immediately preceding the calendar quarter. The Company is not required to
process any changes that are not made on a timely basis. There shall be only one
credit union for the entire bargaining unit.
ARTICLE XXXI - JOB POSTING
All job vacancies of more than thirty (30) days will be posted for
three (3) working days and senior qualified employees shall have preference. If
the position may only be a temporary position (as in the case of filling an
opening for an employee on pregnancy
-19-
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or disability leave), the Company will note on the job posting
"Regular/Temporary". There will be no rebidding for the position if it turns out
to be regular. If the position turns out to be temporary, the employee will be
returned to his prior position when the temporary position ends.
The successful bidder shall be given a maximum of thirty (30) days to
qualify for the position, the determination to be made solely by the Company. An
employee who successfully bids on a position and subsequently decides not be
accept the position, shall not be permitted to bid on another position for six
(6) months. If there are no qualified bidders within the posting period, or the
individual selected for the bid does not pass his qualifying period, the Company
may hire from the outside.
ARTICLE XXXII - MISCELLANEOUS
Section 1. Goods rejected for poor workmanship shall be corrected by
the employee during working hours. The employee shall affix his clock number to
the work ticket and be liable for his own repairs. All work tickets are to be
handed in at the end of the day. Failure to do so shall subject the employee to
discharge.
Section 2. Any employee who damages Company machines, Company property
security devices, etc., shall be discharged.
Section 3. All employees shall be treated equally by the
representatives and shall not be harassed.
Section 4. Temporary transfers shall not exceed 30 days.
Section 5. The Company and the Union will split the cost of printing
new contracts. The printer must be approved of in advance by both the Union and
the Company.
Section 6. Metal racks to be provided for hog ring stations.
ARTICLE XXXIII - HOSPITALIZATION
Section 1. No medical contributions under this Article or Appendix 1
shall be required except in the case of full time employees who have completed
ninety (90) days of employment before the first of the month. For purposes of
this Article and Appendix 1 a full time employees is defined as anyone working a
minimum of twenty-four (24) hours per week.
-20-
21
Section 2. For the life of this Agreement, the Company will contribute
$8.34 per month for each full time employee (as defined above), who has
completed ninety (90) days of employment for an eyeglass plan to be selected by
the Union for the exclusive benefit of the employees. At the end of the contract
year, if the Company's total contribution for the year is less than $20,000, the
Company will pay the difference between $20,000 and the total yearly
contribution it has already paid to the Eyeglass Plan for the year. The Company
shall have no obligation except to contribute the amount provided under this
Article. All matters concerning coverage, benefits provided, the selection of
provider, the quality of service, administration, and every other aspect of the
Eyeglass Plan shall be the sole and exclusive responsibility of the Union, which
shall hold the Company harmless for any problems whatsoever, that arise under
the Eyeglass Plan.
Section 3. For the life of the Agreement, the Company will contribute
one half (1/2) the current cost (as of April 1, 1997) of the current employee
dental plan: (the current cost is (1) $6.58 per month single, (2) $12.60 per
month married or single parent, and (3) $18.79 per month family)). One half
(1/2) of the current cost shall be the responsibility of the employee, and shall
be made by payroll deduction pursuant to written authorization of the employee.
Any employee who fails to execute an appropriate written authorization shall be
ineligible for coverage until he executes such authorization. The Company also
agrees that if there is a documented increase in the cost of dental benefits
during the term of the Agreement, the Company will pay 50% of such increase up
to a maximum increase of 10% of the Company's current contribution. The Company
shall have no obligation except to contribute the amount provided under this
Article and transfer employee contributions to the provider once the employee
has submitted an appropriate authorization form. All matters concerning
coverage, benefits provided, the selection of provider, the quality of service,
administration, and every
-21-
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other aspect of the Dental Plan shall be the sole and exclusive responsibility
of the Union, which shall hold the Company harmless for any problems whatsoever,
that arise under the Dental Plan.
ARTICLE XXXIV - SPANISH TRANSLATIONS
The Company shall translate all work rules which are a basis for
discipline into Spanish. The Company shall translate this Agreement into
Spanish, and shall share the cost of reproduction of the contract for employees,
the cost to be shared equally with the Union. In all cases of contract
interpretation, the English version of the contract shall govern.
ARTICLE XXXV - TERM OF AGREEMENT
This Agreement shall be effective from the date first above written
until midnight April 30, 2000, and thereafter from year to year unless either
party shall notify the other by registered mail at least sixty (60) days prior
to April 30th, 2000 of its intention to make changes in this Agreement.
This Agreement shall be binding upon and shall inure to the benefits of
the respective parties hereto and to their respective successors and assigns.
SLEEPMASTER L.L.C.
________________________
Charles Schweitzer
President
NEGOTIATING COMMITTEE: United Steelworkers of America (ABG Division),
AFL-CIO, CLC and Local Union #396
John Shinn
International Representative
-22-
23
APPENDIX 1
WELFARE FUND
This Agreement made and entered into this day of May, 1997, by and
between Sleepmaster L.L.C., its plant located in Linden, New Jersey, hereinafter
referred to as the Company, and the United Steelworkers of America (ABG
Division), AFL-CIO, CLC, and its Local Union #396, hereinafter referred to as
the Union.
WITNESSETH:
WHEREAS, the Company and the Union have a collective bargaining
agreement providing for contributions to the Fund; and WHEREAS, the Union and
the Trustees of the Fund desire that contributions be on a uniform basis and
similar circumstances by all participating employees thereunder.
NOW, THEREFORE, and INTENDING TO BE LEGALLY BOUND, the parties hereto
agree as follows:
1. Effective May 1, 1997, and throughout the term of this Agreement,
the Company agrees to pay to the Trustees of the Fund the sum of $255 per
eligible employee per month and to pay any increase in the contribution level up
to the following maximums: (1) from May 1, 1998, up to $280 per month maximum
Company contribution, and (2) from May 1, 1999 up to $310 per month maximum
Company contribution.
2. Payments shall be due on the first of each month based on eligible
employees as defined in Article XXXIII of the Agreement. Payments shall be made
at the Fund Office no later than the tenth (10th) day of said month for all full
time employees, Union and/or otherwise, that are to be enrolled in the Fund
using the "full time employees" as described in Article XXXIII of the Agreement.
With respect to
-23-
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Union employees, inclusion shall be from the first day of the month following
completion of the probationary period. As used herein, the term "Policy" shall
mean the policy or policies of insurance issued pursuant to that certain
Agreement and Declaration of Trust creating the Fund dated December 30, 1949, as
amended from time to time, and all other policies of insurance accepted by the
Trustees as part of such fund. Further, the term Policy as used herein shall be
deemed to include any amendments or riders attached to such policy or policies.
3. Each payment shall be accompanied by a "dues listing" on a form
supplied by the Trustees, upon which shall be listed, without exception, the
names of all employees covered pursuant to Section 1 hereinabove.
4. As employees are hired and/or terminated, the Company shall
immediately report such information to the fund Office on forms supplied by the
Trustees or their administrative agents.
5. Any and all forms, reports and/or data reasonably required by the
Trustees, or their administrative agents, for the observance or performance of
their duties shall be completed, made or supplied, as the case may be.
6. Company agrees to be bound by said Agreement and Declaration of
Trust and by all of the rules and regulations uniformly adopted, from time to
time, by said Trustees.
7. The Trustees shall have the right, power and authority:
(a) To establish a uniform due date for all Company
contributions to said Fund and, for good or special cause, to grant
periods of grace, conditionally or unconditionally, for any such
contribution;
-24-
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(b) To fix the legal rate of interest, not in excess of that
allowed by law, to be added to delinquent payments of Company
contribution;
(c) To establish a penalty, not exceeding twenty percent (20%)
of the delinquent amount due, and to be added thereto, to defray court
costs and/or attorneys fees whenever any action is instituted in any
court to collect delinquent contributions;
(d) To institute and maintain and/or prosecute in any court or
tribunal having jurisdiction, any action or other proceedings for the
collection or recovery of any and all payments due hereunder.
8. Should there be a change in federal law which requires a change in
medical coverage or the cost of same, the parties shall meet in order to
negotiate concerning the impact of these changes on the current medical coverage
and costs and shall exercise their maximum good faith efforts to effectuate any
required changes within the existing cost structure. If the parties cannot agree
within 60 days the matter shall be submitted under the arbitration clause of
this Agreement. The arbitrator's decision shall, the maximum extent possible,
effectuate any required changes within the existing cost structure, and the
arbitrator shall not be empowered to require changes resulting in increased cost
if there are options within the existing cost structure. All other terms of the
collective bargaining
-25-
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agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement this _________ day of July, 1997.
SLEEPMASTER L.L.C. UNITED STEELWORKERS OF AMERICA, AFL-CIO
_________________________________ ________________________________________
Charles Schweitzer George F. Becker, Int'l President
President
________________________________________
Richard H. Davis, Int'l VP, Admin.
________________________________________
Leon Lynch, Int'l VP, Human Affairs
________________________________________
Leo W. Gerard, Int'l Sec./Treas.
________________________________________
Louis J. Thomas, Director, Dist. #4
________________________________________
John E. Shinn, Staff Representative
LOCAL UNION #396 COMMITTEE
________________________________________
Rafeal Ortiz
________________________________________
Lydia Rodriguez
________________________________________
Angle Alecia
________________________________________
Miroslawa Romano
________________________________________
Yves Germain
-26-
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AGREEMENT
BETWEEN
UNITED STEELWORKERS OF AMERICA (ABG DIVISION),
AFL-CIO, CLC, AND LOCAL UNION #396
- and -
SLEEPMASTER L.L.C.
* * *
May 1, 1997 Through May 1, 2000
INDEX
DESCRIPTION ARTICLE NO. PAGE
- ----------- ----------- ----
401(k) Plan XXIV 13
Alteration Of Agreement XX 12
Bereavement XXV 14
Bulletin Board XIII 10
Check-Off III 2
Credit Union XXX 23
Discharge XI 8
Employee Injury XV 11
Grievance And Arbitration XII 8
Holidays V 4
Hospitalization XXXIII 24
Hours Of Work IV 2
Job Posting XXXI 23
Jury Duty XXVIII 16
Leave Of Absence XXVI 15
Management Rights XVIII 11
Military Service XVI 11
Miscellaneous XXXII 24
Non-Discrimination XVII 11
No Strike Or Lockout XXI 13
Probationary Employees IX 7
Recalls And Transfers X 8
Recognition I 1
Reporting Pay XXIII 13
Rest Period XXII 13
Sanitary Conditions XIV 10
Seniority XXVII 16
Spanish Translations XXXIV 25
Sick Day/Personal Day VI 5
Term Of Agreement XXXV 26
Union Business VIII 7
Union Machinery And Grievance Time XIX 12
Union Shop II 1
Vacations VII 6
Wages XXIX 17
28
APPENDIX 2
GRADE GRADE GRADE
A B C
CLASS I $/HR TYPE CLASS I $/HR TYPE CLASS I $/HR TYPE
- ------- ----- ---- ------- ----- ---- ------- ----- ----
TAPE EDGE $9.50 I CHECKER(1) $7.50 T2 LABEL IRON $6.25 I
HOG RING 9.50 I QUILT REPAIR 7.50 D MATT 6.25 T1
LOAD(2)
B/S LOAD(2) 6.25 T1
QUILT 6.25 T1
LOAD(3)
CLASS II CLASS II CLASS II
CUTTER $9.75 D LIFT TRUCK $7.25 D HANDLER $6.50 D
QUILTER 8.75 I REPAIR 7.25 D UNCRATER 6.50 D
INSPECTOR 7.00 D LOADER(1) 5.50 T2
B/S NAILER 7.25 I STAGER(1) 5.50 T2
CLASS III CLASS III CLASS III
B/S BUILD $8.25 I CAPPER $6.75 I RECEIVER $6.25 D
FLANGER 6.75 I SANITATION 6.25 D
LABEL SEW 6.75 I BALER 6.25 D
BORDER 6.75 I
B/S GRIDDER 6.75 I
INCENTIVE TYPE: I=INDIVIDUAL T=TEAM D=DAY WORK
FOOTNOTES:
(1) CHECKERS, LOADERS AND STAGERS RECEIVE ONE CENT PER PIECE FOR PIECES LOADED
ON THEIR SHIFT.
(2) LINE LOADERS PAID A FRACTION OF AVERAGE WEEKLY PERCENTAGE INCENTIVE OF
BUILDERS OVER 100% BASED ON A SET RATIO TO BUILDERS. SEE APPENDIX 4.
(3) ESTABLISHED WHEN MTM QUILT INCENTIVE IS INSTALLED.
29
APPENDIX 3 -- SHEET 1
- ----------------------------------------------------------------------
JOB NAME RED CIRCLE RED CIRCLE
BASE RATE MIN. INCENTIVE %
(A) (B) (A X B)
- ----------------------------------------------------------------------
FLANGER SANTIAGO, LUZ 8.69 100 8.69
- ----------------------------------------------------------------------
FLANGER FERREIRA, MARIA 8.52 100 8.52
- ----------------------------------------------------------------------
FLANGER TAVARES, MARIA 8.54 100 8.54
======================================================================
BORDER FARIA, FATIMA*** 10.19 100 10.19
- ----------------------------------------------------------------------
BORDER CORREIRA, MARIA 9.35 100 9.35
- ----------------------------------------------------------------------
BORDER YANEZ, MARIA 11.55 100 11.55
- ----------------------------------------------------------------------
BORDER CARVALHO, AMELIA 9.16 100 9.16
- ----------------------------------------------------------------------
BORDER MARQUES, FILOMIN 8.53 100 8.53
- ----------------------------------------------------------------------
BORDER RAMOS, BLANCA 7.78 100 7.78
- ----------------------------------------------------------------------
BORDER PULLAS, MARIANA 6.90 100 6.90
======================================================================
LABEL SEW LAPAIX, DELIA*** 9.66 100 9.66
- ----------------------------------------------------------------------
LABEL SEW VINASCO, LUZ 7.60 100 7.60
- ----------------------------------------------------------------------
LABEL SEW CORDERO, NORMA 7.21 100 7.21
======================================================================
QUILTER MARQUES, MARIA 9.84 100 9.84
- ----------------------------------------------------------------------
QUILTER DASILVA, LUISA 9.68 100 9.68
- ----------------------------------------------------------------------
QUILTER SANTOS, LUCIA 9.50 100 9.50
- ----------------------------------------------------------------------
QUILTER CASTANEDA, MARI 8.96 100 8.96
- ----------------------------------------------------------------------
QUILTER CORREIRA, CARMIN 8.92 100 8.92
======================================================================
CAPPER ORTIZ, MARIA 9.35 100 9.35
- ----------------------------------------------------------------------
CAPPER PRAZARES, MARIA 8.73 100 8.73
- ----------------------------------------------------------------------
CAPPER SANTOS, MARIA 7.17 100 7.17
======================================================================
B\S BUILD PERREIRA, MANUE 10.04 138 13.86
- ----------------------------------------------------------------------
B\S BUILD PAZMINO, MARIO 9.43 192 18.11
- ----------------------------------------------------------------------
B\S BUILD AUGUSTE, EVER 8.19 154 12.61
======================================================================
HOG RING TORRES, ANTONIO 13.41 113 15.15
- ----------------------------------------------------------------------
HOG RING VILLANUEZA, RAUL 12.61 179 22.58
- ----------------------------------------------------------------------
HOG RING SIMO, JUAN 12.64 116 14.91
- ----------------------------------------------------------------------
HOG RING ARCE, WILFREDO 12.31 117 14.40
- ----------------------------------------------------------------------
HOG RING MALDONADO, RAM 12.08 131 15.83
- ----------------------------------------------------------------------
HOG RING MUNIZ, HECTOR 12.57 135 16.97
======================================================================
TAPE EDGE ORTIZ, RAFAEL 15.26 100 15.26
- ----------------------------------------------------------------------
TAPE EDGE LUNA EDUARDO 15.13 143 21.64
======================================================================
CUTTER PEREIRA, MANUEL 10.87 D
QUILT
======================================================================
REPAIR MORALES, AZUCEN 9.35 D
======================================================================
INSPECTOR WRIGHT, HERBERT 10.79 D
- ----------------------------------------------------------------------
INSPECTOR BERRONES, ANGEL 8.84 D
======================================================================
REPAIR SZLADEWSKA, WA 9.55 D
======================================================================
LOADER MEDINA, JESUS 6.27 T2/1200PCS
- ----------------------------------------------------------------------
LOADER BRAVO, XAVIER 6.86 T2/1200PCS
======================================================================
CHECKER NOEL, IDOVIC 6.90 T2/1200PCS
======================================================================
SANITATION CASTILLO, ORLAND 7.55 D
- ----------------------------------------------------------------------
SANITATION PHILOGENE, LAMO 6.27 D
======================================================================
HANDLER LOPEZ, ROSA 7.44 D
======================================================================
BALER RODRIGUEZ, MANU 6.55 D
======================================================================
LEADMEN DOMINGUES, MAN 11.80 D
- ----------------------------------------------------------------------
LEADMEN SMITH, JAMES 14.08 D
======================================================================
30
APPENDIX 4
A. ONE LOADER WILL BE ASSIGNED FOR EVERY TWO BUILDERS IN ORDER TO KEEP THE LINE
FULL
================================================================================
BUILDERS 4 5 6 7 8 9 10 11 12 13 14
- --------------------------------------------------------------------------------
LOADERS 2 3 3 4 4 5 5 6 6 7 7
================================================================================
B. BASE RATE FOR LINE LOADER IS $6.25 PER HOUR.
C. LINE LOADER INCENTIVE IS CALCULATED AS FOLLOWS:
EXAMPLE: 4 LOADERS SUPPLY 8 BUILDERS WHO PRODUCE AT A RATE OF 125%
125%-100% = 25%
25% / 4 LOADERS = 6.25% PER LOADER
1.0625 X $6.25 = $0.39 PER HOUR OF INCENTIVE FOR EACH LINE LOADER