THIS AGREEMENT, made this First day of August, 2004 by and between Empire Iron Mining Partnership, and Tilden Mining Company L.C., doing business together as Cliffs Michigan Mining Company or their successors, hereinafter collectively referred to as "the Company" and UNITED STEELWORKERS OF AMERICA, AFL-CIO, or its successors, hereinafter referred to as "the Union." The provisions of this Agreement shall become effective August 1, 2004 except as otherwise expressly provided herein.

      The Union having been designated the exclusive collective bargaining representative of the employees of the Company as defined in Section II, Scope of the Agreement, the Company recognizes the union as such exclusive representative. Accordingly, the Union makes this Agreement in its capacity as the exclusive collective bargaining representative of such employees. The provisions of this Agreement constitute the sole procedure for the processing and settlement of any claim by an employee or the Union of a violation by the Company of this Agreement. As the representative of the employees, the Union may process grievances through the grievance procedure, including arbitration, in accordance with this Agreement or adjust or settle the same.

 

      The parties recognize that for their joint benefit, increases in wages and benefits should be consistent with the long term prosperity and efficiency of the steel and iron ore industries.

      The parties are concerned that the future for these industries in terms of employment security and return on substantial capital expenditures will rest heavily upon the ability of the parties to work cooperatively to achieve significantly higher productivity trends than have occurred in the recent past. The parties are acutely aware of the impact upon the industries and their employees of the sizable penetration of the domestic steel market by foreign producers and the importation of foreign iron ores. Thus it is incumbent upon the parties to work cooperatively to meet the challenge posed by foreign competitors in recent years. It is also important that the parties cooperate in promoting the use of American-made steel.

      It is the intent and purpose of the parties hereto to set forth herein the Basic Agreement between them for the term hereof covering rates of pay, wages, hours of employment and other conditions of employment to be observed between the parties hereto.

      The representatives of the Company and the Union shall continue to provide each other with such advance notice as is reasonable under the circumstances on all matters of importance in the administration of the terms of this Agreement, including changes or innovations affecting the relations between the local parties.

 

 

Subsection 1. Definitions

      A.  The term "mine" as used in this Agreement is understood to include mines, shops, and plants.

      B.   The term "employee" as used in this Agreement shall mean all production and maintenance employees of the Company, excluding foremen, assistant foremen who are not working foremen in the mine, supervisors in charge of any class of labor who are not working supervisors, policemen, watchmen (except employees who perform certain duties of a watchperson but a major portion of whose time is occupied by duties other than those of a watchperson), clerical and salaried employees. Provided, however, that during the term of this Agreement, the Company will not convert an hourly rate job which is within the bargaining unit to a salaried job where there is no substantial change in the job content, without agreement by the Union.

 

Subsection 2. Recognition

      A.  The Company recognizes the Union as the exclusive representative of all production and maintenance employees of the Company at said mines for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment and other conditions of employment, but subject to and in accordance with applicable provisions of federal law.

      B.   The Company agrees that it will recognize the Union as the exclusive bargaining agency for similar employees in any other of the Company's iron ore mines in the Lake Superior region for whom the Union may, during the life of this Agreement, be certified by the National Labor Relations Board as the exclusive bargaining agent. It is mutually agreed that the appropriate Agreement now being entered into between the parties hereto for a similar mine in the same locality shall include such other employees at the similar mine as of the date the certification is received by the Company.

 

Subsection 3. New or Changed Jobs

      When Management establishes a new or changed job in a mine so that duties involving a significant amount of production or maintenance work, or both, which is performed on a job within the bargaining unit (or, in the case of new work, would be performed on such a job) are combined with duties not normally performed on a job within the bargaining unit, the resulting job in the mine shall be considered as within the bargaining unit. This provision shall not be construed as enlarging or diminishing whatever rights exist in respect of withdrawal of non-bargaining unit duties from a job in the bargaining unit, provided that where non-bargaining unit duties are placed in a job in the bargaining unit under this provision, such duties may be withdrawn at any time. Management shall, on request, furnish to the Union reasonable information to permit determination of questions of compliance with the provision.

 

Subsection 4. Supervisors Working

      Any supervisor at a mine shall not perform work on a job normally performed by an employee in the bargaining unit at such mine; provided, however, this provision shall not be construed to prohibit supervisors from performing the following types of work:

      A.  experimental work;

      B.   demonstration work performed for the purpose of instructing and training employees;

      C.  work required of the supervisors by emergency conditions which if not performed might result in interference with operations, bodily injury, or loss or damage to material or equipment; and

      D.  work which, under the circumstances then existing, it would be unreasonable to assign to a bargaining unit employee and which is negligible in amount.

      E.   Work which is incidental to supervisory duties on a job normally performed by a supervisor, even though similar to duties found in jobs in the bargaining unit, shall not be affected by this provision.

            If a supervisor performs work in violation of this Subsection 4 and the employee who otherwise would have performed this work can reasonably be identified, the Company shall pay such employee the applicable Standard Hourly Wage Rate for the time involved or for four hours, whichever is greater.

 

Subsection 5. Temporary Supervisors

      A.  An employee who is assigned as a temporary Supervisor as of the effective date of this Agreement or who is thereafter so assigned shall not cease to be an employee, although assignment to such position and the terms and conditions of the employment applicable to the position shall continue to be solely as determined by the Company.

      B.   Such assignments shall be limited to:

            1.   The short-term absence of a Supervisor for reasons such as sickness, jury duty or vacation.

            2.   A Supervisor position resulting from increases in operating requirements over and above normal levels. Such a position shall not be filled by the assignment of any employee as a temporary Supervisor for a period in excess of ten (10) consecutive months, provided however, that such period shall be extended in view of special circumstances. Management shall inform the Grievance Committeeperson representing the department in which the position occurs of such extension.

            3.   Twenty-first shift coverage of continuous operations.

      C.  An employee assigned as a temporary Supervisor on a weekly basis will not work in the bargaining unit during the week in which s/he is assigned as a temporarySupervisor. An employee will not be assigned as a temporary Supervisor merely as a means of retaining them in employment or of recalling them from layoff at a time when the application of his/her bargaining unit seniority would not otherwise result in his/her retention in employment.

      D.  An employee assigned as a temporary Supervisor will not issue discipline to employees, provided that this provision will not prevent a temporary Supervisor from relieving an employee from work for the balance of the shift for alleged misconduct. An employee will not be called by either party in the grievance procedure or arbitration to testify as a witness regarding any event involving discipline which occurred while the employee was assigned as a temporary Supervisor.

 

Subsection 6. Contracting Out of Work

      The parties recognize the seriousness of the problems associated with contracting out of work both inside and outside the mine and have accordingly agreed as follows.

      The parties have existing rights and contractual understandings with respect to contracting out. In addition, the following provisions shall be applicable to all contracting out issues subject to, and arising on or after the effective date of, this Agreement.

      A.  Basic Prohibition

      In determining whether work should be contracted out or accomplished by the bargaining unit, the guiding principle is that work capable of being performed by bargaining unit employees shall be performed by such employees. Accordingly, the Company will not contract out any work for performance inside or outside the mine unless it demonstrates that such work meets one of the following exceptions.

      B.   Exceptions

            1.   Work in the Mine

                  a.   Production, service, all maintenance and repair work, all installation, replacement and reconstruction of equipment and productive facilities, other than that listed in Subparagraph B-1-b below, all within a mine, may be contracted out if (a) the consistent practice has been to have such work performed by employees of contractors and (b) it is more reasonable (within the meaning of paragraph C below) for the Company to contract out such work than to use its own employees.

                  b.   Major new construction including major installation, major replacement and major reconstruction of equipment and productive facilities, at any mine may be contracted out subject to any rights and obligations of the parties which as of the beginning of the period commencing August 1, 1963, are applicable at the mine in the case of any mine which was in operation on or before August 1, 1958. With respect to any other mine, the period commencing date shall be the date five years after the date on which the mine started operations.

                        A project shall be deemed major so as to fall within the scope of this exception if it is shown by the Company that the project is of a grander or larger scale when compared to other projects bargaining unit forces at the mine are normally expected to do. Such comparison should be made in light of all relevant factors. In addition, distinct maintenance and repair items, distinct projects, or work on individual lines shall not be accumulated into a single item or project where the prevailing practice has been to treat such items or projects as separate or distinct.

                        As regards the term "new construction" above, except for work done on equipment or systems pursuant to a manufacturer's warranty, work that is of a peripheral nature to major new construction, including major installation, major replacement and major reconstruction of equipment and production facilities and which does not concern the main body of work shall be assigned to employees within the bargaining unit unless it is more reasonable to contract out such work taking into consideration the factors set forth in paragraph C or it is otherwise mutually agreed.  For purposes of this provision, the term "work of a peripheral nature" may in certain instances include, but not be limited to demolition, site preparation, road building, utility hook-ups, pipe lines and any work which is not integral to the main body.

            2.   Work Outside the Mine

                  a.   Should the Company contend that maintenance or repair work to be performed outside the mine or work associated with the fabricating of goods, materials or equipment purchased or leased from a vendor or supplier should be excepted from the prohibitions of this Subsection, the Company must demonstrate that it is more reasonable (within the meaning of paragraph C below) for the Company to contract for such work (including the purchase or lease of the item) than to use its own employees to perform the work or to fabricate the item.

                        Notwithstanding the above, the Union recognizes that as part of the Company's normal business, it may purchase standard components or parts or supply items produced for sale generally ("shelf items"). No item shall be deemed a standard component or part or supply item if:

                        i.    Its fabrication requires the use of prints, sketches or detailed manufacturing instructions supplied by the Company or at the Company's behest or by another company engaged in producing iron ore or it is otherwise made according to detailed Company specifications or those of such other company; or

                        ii.    it involves a unit exchange; or

                        iii.   it involves the purchase of electric motors, engines, transmissions, or converters under a core exchange program (whether or not title to the unit passes to the vendor/purchaser as part of the transaction), unless such transaction is undertaken with an original equipment manufacturer, or with one of its authorized dealers, provided that the items in the core exchange program that are sold to the Company are rebuilt using instructions and parts supplied by the original equipment manufacturer (or, if the part or parts are not stocked by the original equipment manufacturer, approved by such manufacturer).

                        It is further provided that adjustments in the length, size or shape of a shelf item, so that it can be used for a Company specific application, shall be deemed for the purposes of this Section II,  Subsection 6-B-2-a to be fabrication work performed outside the plant.

                        With respect to shelf items, the Company may purchase goods, materials and equipment, where the design or manufacturing expertise involved is supplied by the vendor as part of the sale.

                  b.   Production and maintenance work may be performed outside the mine only where the Company demonstrates that it is unable because of lack of capital to invest in necessary equipment or facilities, and that it has a continuing commitment to the iron mining business.  In determining whether there is capital to invest in particular equipment or facilities, the Company is entitled to make reasonable judgments about the allocation of scarce capital resources among its mines represented by the Union and their supporting facilities.

            3.   Mutual Agreement

                  Work contracted out by mutual agreement of the parties pursuant to paragraph G below.

      C.  Reasonableness

            In determining whether it is more reasonable for the Company to contract out work than use its own employees, the following factors shall be considered:

            1.   Whether the bargaining unit will be adversely impacted.

            2.   The necessity for hiring new employees shall not be deemed a negative factor except for work of a temporary nature.

            3.   Desirability of recalling employees on layoff.

            4.   Availability of qualified employees (whether active or on layoff) for a duration long enough to complete the work.

            5.   Availability of adequate qualified supervision. Bargaining unit employees in crew coordinator or equivalent positions shall be considered in applying this factor.

            6.   Availability of required equipment either on hand or by lease or purchase, provided that either the capital outlay for the purchase of such equipment, or the expense of leasing such equipment, is not an unreasonable expenditure in all the circumstances at the time the proposed decision is made.

            7.   The expected duration of the work and the time constraints associated with the work.

            8.   Whether the decision to contract out the work is made to avoid any obligation under the collective bargaining agreement or benefits agreements associated therewith.

            9.   Whether the work is covered by a warranty necessary to protect the Company's investment.  For purposes of the subparagraph, warranties are intended to include work performed for the limited time necessary to make effective the following seller guarantees:

                  a.   Manufacturer guarantees that new or rehabilitated equipment or systems are free of errors in quality, workmanship or design.

                  b.   Manufacturer guarantees that new or rehabilitated equipment or systems will perform at stated levels of performance and/or efficiency subsequent to installation.

                  For equipment or systems ordered after August 1, 1999, and for the purposes of this factor only, the warranties referenced in a. and b. above may not be relied upon by the Company for more than 18 months following acceptance; provided, however, warranties of a longer duration may be relied upon if the Company (i) demonstrates that at the time of the sale such longer warranties are the manufacturer's published standard warranties actually offered to customers in the normal course of business; and (ii) reviews the documents relating to the warranty and the sales price with the union members of the contracting out committee at or near the time of the purchase.

                  Warranties are commitments associated with a particular product or service in order to assure that seller representations will be honored at no additional cost to the Company.  Long term service contracts are not warranties for the purposes of this subparagraph.

            10. In the case of work associated with leased equipment, whether such equipment is available without a commitment to use the employees of outside contractors or lessors for its operation and maintenance.

            11. Whether, in connection with the subject work or generally, the local union is willing to waive or has waived restrictive working conditions, practices or jurisdictional rules (all within the meaning of "local working conditions" and the authority provided by this Agreement).

      D.  Contracting Out Committee

            1.   At each mine a regularly constituted committee consisting of not more than four persons (except that the committee may be enlarged to six persons by local agreement), half of whom shall be members of the bargaining unit and designated by the Union in writing to the Management and the other half designated in writing to the Union by the  Management, shall attempt to resolve problems, in connection with the operation, application and administration of the foregoing provisions.

            2.   In addition to the requirements of the paragraph E below, such committee may discuss any other current problems with respect to contracting out brought to the attention of the committee.

            3.   Such committee shall meet at least one time each month.

      E.   Notice and Information

            Before the Company finally decides to contract out an item of work as to which it claims the right to contract out, the Union committee members will be notified.  Except as provided in paragraph J below (Shelf Item Procedure), such notice will be given in sufficient time to permit the Union to invoke the Expedited Procedure described in paragraph H below, unless emergency situations prevent it.  Such notice shall be in writing and shall be sufficient to advise the Union members of the committee of the location, type, scope, duration and timetable of the work to be performed so that the Union members of the committee can adequately form an opinion as to the reasons for such contracting out.  Such notice shall generally contain the information set forth below:

            1.   Location of work.

            2.   Type of work:

                  a.   Service

                  b.   Maintenance

                  c.   Major Rebuilds

                  d.   New Construction

            3.   Detailed description of the work.

            4.   Crafts or occupations involved.

            5.   Estimated starting date and duration of work.

            6.   Anticipated utilization of bargaining unit forces during the period.

            7.   Effect on operations if work not completed in timely fashion.

                  Within ninety (90) days following the effective date of this agreement, Headquarters representatives of the parties shall develop a form notice for the submission of the information described above.  Either the Union members of the committee or the Company members of the committee may convene a prompt meeting of the committee.  Should the Union committee members believe a meeting to be necessary, they shall so request the Company members in writing within five (5) days (excluding Saturdays, Sundays and holidays) after receipt of such notice and such a meeting shall be held within three (3) days (excluding Saturdays, Sundays and holidays) thereafter.  The Union members of the committee may include in the meeting the Union representative from the area in which the problem arises.  At such meeting, the parties should review in detail the plans for the work to be performed and the reasons for contracting out such work.  Upon their request, the Union members of the committee will be provided any and all relevant information in the Company's possession relating to the reasonableness factors set forth in paragraph C above.  Included among the information to be made available to the committee shall be the opportunity to review copies of any relevant proposed contracts with the outside contractor.  This information will be kept confidential.  The Management members of the committee shall give full consideration to any comments or suggestions by the Union members for the performance of the work by bargaining unit personnel.  Except in emergency situations, such discussions, if requested shall take place before any final decision is made as to whether or not such work will be contracted out.

                  Should the Company committee members fail to give notice as provided above, then not later than thirty (30) days from the date of the commencement of the work a grievance relating to such matter may be filed under the complaint and grievance procedure.  Should it be found in the arbitration of a grievance alleging a failure of the Company to provide the notice or information required under this paragraph E that such notice or information was not provided, that the failure was not due to an emergency requirement, and that such failure deprived the Union of a reasonable opportunity to suggest and discuss practicable alternatives to contracting out, the Impartial Umpire shall have the authority to fashion a remedy, at his/her discretion, that s/he deems appropriate to the circumstances of the particular case.  Such remedies if afforded, may include earnings and benefits to grievants who would have performed the work, if they can be reasonably identified.

F.   Remedy for Repeated Notice Violations

      Notwithstanding any other provision of this Agreement, where, at a particular mine, it is found that the Company (i) committed violations of paragraph E that demonstrate willful conduct in violation of the notice provision or constitutes a pattern of conduct of repeated violations or (ii) violated a cease and desist order previously issued by the Impartial Umpire in connection with a violation of paragraph E, the Impartial Umpire may, as circumstances warrant, fashion a suitable remedy or penalty.

G.  Mutual Agreement and Disputes

      The committee may resolve the matter by mutually agreeing that the work in question either shall or shall not be contracted out.  Any such resolution shall be final and binding but only as to the matter under consideration and shall not affect future determinations under this Subsection.

      If the matter is not resolved, or if no discussion is held, the dispute may be processed further in accordance with either of the following:

1.   By filing a grievance relating to such matter under the complaint and grievance procedure described in Section XI; or

2.   By submitting the matter to the Expedited Procedure set out in paragraph H below.

No agreement entered into after August 1, 1999, whether or not reached pursuant to this Section, which directly or indirectly permits the contracting out of work on an ongoing basis, shall be valid or enforceable unless it is in writing and signed by both the President and the Chairperson of the Grievance Committee of the affected local Union.

H.  Expedited Procedure

In the event that either the Union or Company members of the committee request an expedited resolution of any dispute arising under this Subsection, except paragraph J (Shelf Item Procedure), it shall be submitted to the Expedited Procedure in accordance with the following:

1.   In all cases except those involving day-to-day maintenance and repair work and service, the Expedited Procedure shall be implemented prior to letting a binding contract.

2.   Within three (3) days (excluding Saturdays, Sundays and holidays) after either the Union or Company members of the committee determine that the committee cannot resolve the dispute, either party (chairperson of the grievance committee in the case of the Local Union and the Area Manager-Human Resources in the case of the Company) may advise the other in writing that it is invoking this expedited procedure.

3.   An expedited arbitration must be scheduled within three (3) days (excluding Saturdays, Sundays and holidays) of such notice and heard at a hearing commencing within five (5) days (excluding Saturdays, Sundays and holidays) thereafter.  The Impartial Umpire, or his/her appointee, shall hear the dispute and, if no Umpire is available to hear the dispute within five (5) days, another arbitrator shall be selected by mutual agreement of the Step 4 representative of the Union and the Vice President-Human Resources of the Company.

4.   The arbitrator must render a decision within forty-eight (48) hours (excluding Saturdays, Sundays and holidays) of the conclusion of the hearing.  Such decision shall not be cited as a precedent by either party in any future contracting out disputes.

5.   Notwithstanding any other provision of this Agreement, any case heard in the Expedited Procedure before the work in dispute was performed may be reopened by the Union in accordance with this paragraph if such work, as actually performed, varied in any substantial respect from the description presented in arbitration, except where the difference involved a good faith variance as to the magnitude of the project.  The request to reopen the case must be submitted within seven (7) days of the date on which the Union knew or should have known of the variance and shall contain a summary of the ways in which the work as actually performed differed from the description presented in arbitration.  As soon as practicable after receipt of a request to reopen, an arbitration hearing date shall be scheduled.  In a case reopened pursuant to this paragraph, the Impartial Umpire shall determine whether the work in dispute, as it actually was performed, violated the provisions of Section II, Subsection 6, and, if so, the remedy.  The prior decision regarding the subject work shall be considered in the determination and given weight in the subsequent dispute, except to the extent that it relied on an erroneous description.

I.    Contractors Testifying in Arbitration

No testimony offered by an outside contractor may be considered in any proceeding alleging a violation of Section II, Subsection 6, unless the party calling the contractor provides the other party with a copy of each contractor document to be offered at least forty-eight (48) hours (excluding Saturdays, Sundays and holidays) before commencement of that hearing.

J.    Shelf Item Procedure

1.   No later than June 1, 1994, and, except as provided herein, annually thereafter, the Company shall provide the Union members of the committee with a list and description of anticipated ongoing purchases of each item which the Company claims to be a shelf item within the meaning of paragraph B-2-a above.  If the Union members of the committee so request, the list shall not include any item included on a previous list where the status of that item, as a shelf item, has been expressly resolved.  Within sixty (60) days of the submission of the list, either the Union members of the committee or the Company members may convene a prompt meeting of the committee to discuss and review the list of items and, if requested, the facts underlying the Company's claim that such items are shelf items.

2.   The committee may resolve the matter by mutually agreeing that the item in question either is or is not a shelf item.  With respect to any item as to which the Union members of the committee agree with the Company's claim that it is a shelf item, the Company shall be relieved of any obligation to furnish a contracting out notice until the June 1 next following such agreement and thereafter, if the Union has requested that a resolved item be deleted from the shelf item list in accordance with paragraph J 1.

3.   If the matter is not resolved, any dispute may be processed further by filing, within thirty (30) days of the date of the last discussion, a grievance in Step 4 of the complaint and grievance procedure described in Section XI.  Except as provided in paragraph J 5 such a grievance shall include all items in dispute.  However, where a number of items raise the same or similar issues, those items may be grouped in a single class or category.

4.   An item which the Company claims to be a shelf item, but which was not included on the list referred to above because no purchase was anticipated, shall be listed and described on a contracting out notice provided to the Union not later than the regularly scheduled meeting of the contracting out committee next following the purchase of the item.  Thereafter, the parties shall follow the procedures set forth in paragraphs J 2 and J 3 above.

5.   The Union may file a grievance in accordance with paragraph G or H of this Section II, Subsection 6 with respect to any unresolved item of maintenance, repair work or work associated with the fabrication of goods, material or equipment performed outside the mine notwithstanding the inclusion of such item on the shelf item list previously furnished to the Union by the Company, provided such grievance is filed within thirty (30) days of the date on which the Union knew or should have known of the performance of the work.

K.  Annual Review

Commencing on or before January 2 of each year the Company committee members shall meet with the Union committee members for the purpose of (i) reviewing all work whether inside or outside the mine which the Company anticipates may be performed by outside contractors or vendors at some time during the following twelve (12) months, (ii) determining such work which should be performed by bargaining unit employees and (iii) identifying situations where the elimination of restrictive practices would promote the performance of any such work by bargaining unit employees.  The Union committee members shall be entitled in conducting this study to review any current or proposed contracts concerning items of work performed by the Company by outside contractors and vendors and shall keep such information confidential.

By no later than February 1 of each year these Local Union and Company committee members shall jointly submit a written report to the International President and the Chief Executive Officer of the Company or their designees describing the results of this review.  Specifically, the report should list (a) all items of work which the parties agree will be performed by bargaining unit employees during the following twelve (12) calendar months, (b) all items of work which the parties agree should be performed by outside contractors and vendors, and (c) those items on which the parties disagree.  If the parties disagree, the report will state the reason for such disagreements.

As to individual items of work, the International President and the Chief Executive Officer of the Company may (a) affirm the mine recommendation, (b) disagree with respect to the mine recommendation as to specific items and either (i) refer their dispute to arbitration under a procedure to be established by the parties and the Impartial Umpire or (ii) refer the matters back to the mine without resolution in which event the specific disputes will be handled under the provisions of this section at the time they may arise.

L.   General Provisions

Where at a particular mine, it is found in a case arising subsequent to August 1, 1999, that the Company (i) engaged in conduct which constitutes willful or repeated violations of paragraph B.1 or B.2, the first of which occurred on or after August 1, 1998; or (ii) violated a cease and desist order previously issued by the  IOI Board of Arbitration prior to July 31, 2004 and the Cliffs Board of Arbitration thereafter in connection with a violation of paragraph B.1 or B.2 arising on or after August 1, 1998; or (iii) in cases, the earliest of which arose on or after August 1, 1999, engaged in a pattern of conduct of repeated violations of paragraph B.1 or B.2 but where no remedy was otherwise appropriate because of practical overtime limits or the unavailability of employees to perform the improperly contracted out work, the IOI Board of Arbitration prior to July 31, 2004 and the Cliffs Board of Arbitration thereafter shall, as circumstances warrant, fashion a remedy or penalty specifically designed to deter the behavior described in (i), (ii) or (iii), above.

M.  District Director/Company Employee Relations Representative

It is the intent of the parties that the members of the joint mine contracting out committee shall engage in discussions of the problem involved in this field in a good-faith effort to arrive at mutual understanding so that disputes and grievances can be avoided.  If either the Company or the Union members of the committee feel that this is not being done, they may appeal to the District Director of the Union who has jurisdiction of the mine in question and the appropriate representative of the Company Headquarters for review of the complaint about the failure of the committee to properly function.  Such appeal shall result in a prompt investigation by the District Director or his/her designated representative and the Company's Vice President-Human Resources for such review.  This provision should in no way affect the rights of the parties in connection with the processing of any grievance relating to the subject of contracting out.

N. Training on Contracted WorkIt is the intention of the Company to provide training opportunities for qualified employees so that the use of contractors on day to day maintenance be minimized.  The Company will request any contractor to give consideration to any qualified laid off Company employees when performing work on Company property.  In the case of material or equipment covered by warranties or guarantees, the Company will continue to have the manufacturer or supplier furnish labor in cases where use of Company personnel would affect the terms of the guarantee or warranty.

 

 

Subsection 1. Intent

            It is the intent of the parties to bind the Union and all local and international officers and representatives of the Union, all employees as defined in Section II hereof, the Company, its officers and representatives to observe and adhere to the terms of this Agreement.

            The Union emphasizes its agreement with the objective of achieving the highest level of employee performance and efficiency consistent with safety, good health, and sustained effort, and agrees that the Union, its agents and members will not take, authorize, or condone any action which interferes with the attainment of such objective.

 

Subsection 2. Responsibilities

            The Company agrees it will not interfere with the rights of its employees to become members of the Union.  There shall be no discrimination, interference, restraint, or coercion by the Company or any of its agents against any employee because of membership in the Union.  The Union agrees that neither it nor any of its officers or members will engage in any Union activity on Company time, or engage other employees in any Union activity, while such employees are on Company time and will not discriminate against employees on the job because of membership or non-membership in the Union, solicit membership, collect dues, hold meetings, or carry on any Union activity either on Company time or on property of the Company in any manner which shall interfere or tend to interfere with the Company's operations, or prevent or attempt to prevent the access of employees or anyone to any of the Company's premises during the life of this Agreement.  The Union, its officers, and members shall not intimidate or coerce employees into joining the Union or continuing their membership therein.

            The Union, its officers, agents and members agree that for the duration of this Agreement there shall be no strikes, sitdowns, slow downs, stoppages of work or any acts of any similar nature which would interfere with production, no picketing of any kind or form, however peaceable, and that it will not otherwise permit, countenance or suffer the existence or continuance of any of these acts.  The Company agrees that for the duration of this Agreement, there shall be no lockouts.  Failure or refusal on the part of any employee of the Company fully to observe and obey any and all provisions of this Section shall, at the option of the Company, be sufficient grounds for discharge.  Under no circumstances shall the Company or its representatives be required to discuss the grievance in question or any other matter while a work interruption, impeding or suspending of work is in effect.

            It is the continuing policy of the Company and the Union that the provisions of this Agreement shall be applied to all employees without regard to race, color, religious creed, national origin, or sex.  The representatives of the Union and the Company in all steps of the grievance procedure and in all dealings between the parties shall comply with this provision.

 

Subsection 3. Employee Orientation Program

            The Employee Orientation Program will include the development and utilization of necessary color training films. The Union will be allotted up to two hours, including one film presentation. Subjects may include:

            1.         Distribution and discussion of the Basic Labor Agreement, the Seniority and Posting Agreement, and Local Issue Agreements.

            2.         Discussion of the history and achievements of the USWA International and the Local Union.

            3.         Discussion of the structure of the International and the Local Union and the services provided.

            4.         Discussion concerning the Grievance procedure and the probationary period.

            5.         Discussion of Safety Programs and Safe Job Procedures.

            6.         An opportunity for questions and answers.

            The Orientation Programs of each party, the Union and the Company, will be reviewed jointly prior to implementation. The Union will be responsible for wages of Union instructors and costs in developing their portion of this Program.

            In addition, and separate and apart from the above, within ten (10) days of the completion of their probationary period, the Company shall provide each employee with four (4) hours of paid time off (at their regular rate of pay) to attend an orientation session conducted by the Union at a location designated by the Union.

 

Subsection 4. Understanding On Plant Closings

            The parties recognize the potential, far reaching impact of permanent shutdowns of facilities and the need to cooperate in attempting to lessen this impact.  Accordingly, in the event of the permanent shutdown of a plant, Company and International Union representatives shall meet to determine whether appropriate Federal, State, or local government funds are available to establish an employee training, counseling, and placement assistance program for that facility.  If such funds are available, the Company and Union shall work jointly to secure such funds to establish a program to provide; alternative job training for affected employees for job opportunities, counseling for affected employees on available benefit programs and job opportunities within the Company and the area; and job search counseling.

            In implementing such program, the Company will cooperate with the involved local union and the state unemployment agency, other appropriate public or private employment agencies, and area employers in an effort to seek job opportunities for displaced employees.  To further assist affected employees, both the Company and the Union will designate specific representatives at the time of any such permanent plant closing to answer questions by employees pertaining to their rights under the Basic Labor Agreement and various benefits programs.

 

 

Subsection 1.  Management Rights

 

            The management of the mines, and the direction of the working force and the operations at the mines, including the hiring, promoting and retiring (subject to the provisions of the Pension Agreement currently in effect) of employees, the suspending, discharging or otherwise disciplining of employees, the laying off and calling to work of employees in connection with any reduction or increase in the working forces, the scheduling of work and the control and regulation of the use of all equipment and other property of the Company, are the exclusive functions of the Company; provided, however, that in the exercise of such functions, the Company shall not alter any of the provisions of this Agreement and shall not discriminate against any employee or applicant for employment because of his/her membership in or lawful activity on behalf of the Union.

 

Subsection 2.  Local Working Conditions

            The term " local working conditions" as used in this Subsection means specific practices or customs which reflect detailed application of the subject matter within the scope of wages, hours of work, or other conditions of employment and includes local agreements, written or oral, on such matters.  It is recognized that it is impracticable to set forth in this Agreement all of these working conditions, which are of a local nature only, or to state specifically in this Agreement which of these matters should be changed or eliminated.  The provisions set forth below provide general principles and procedures which explain the status of these matters and furnish necessary guideposts for the parties hereto and the impartial arbitrator.  The provisions of this Subsection are not intended to prevent the Management from continuing to make progress.  Any arbitrations arising hereunder shall be handled on a case-by-case basis on principles of reasonableness and equity.

            A.        It is recognized that an employee does not have the right to have a local working condition established, in any given situation or mine where such condition has not existed, during the term of this Agreement, or to have an existing local working condition changed or eliminated, except to the extent necessary to require the application of a specific provision of this Agreement.

            B.         In no case shall local working conditions be effective to deprive any employee of rights under this Agreement.  Should any employee believe that a local working condition is depriving them of the benefits of this Agreement, s/he