ARTICLE TWO – UNION SECURITY

 

Section A.  Recognition and Coverage

1.         The Company recognizes the Union as the exclusive representative of a bargaining unit made up of production, maintenance, office, technical and clerical employees of the Company, excluding only managers, confidential employees, supervisors and guards as defined under the National Labor Relations Act.  Individuals in the bargaining unit shall be known as “Employees.”  Individuals who are employed by the Company and are not in the bargaining unit shall be known as “non-bargaining unit employees.”  Individuals who are in the bargaining unit and those who are not in the bargaining unit shall be known collectively as “employees.”    

2.         Except as expressly provided herein, the provisions of this BLA 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 BLA or may adjust or settle same.

 

3.         When the Company establishes a new or changed job whose duties include a material level of production, maintenance, office, technical or clerical work; the resulting job shall be considered a job covered within the bargaining unit; provided that where non-bargaining unit duties are added to a job in the bargaining unit on a temporary basis, they may be withdrawn.

 

4.         It is understood that supervisors at a plant shall not perform work on a job normally performed by the bargaining unit except:

 

a.         experimental work;

 

b.         demonstration work performed for the purpose of instructing and training Employees;

 

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

 

d.         work that would be unreasonable to assign to an Employee or which is negligible in amount.

 

5.         If an individual other than an Employee performs work in violation of Paragraph 4 and the Employee who otherwise would have performed this work can reasonably be identified, the Company shall pay such Employee his/her applicable Regular Rate of Pay for the time involved or for four (4) hours, whichever is greater.

 

6.         An Employee assigned as a temporary foreman or supervisor will not issue discipline to Employees, provided that this provision will not prevent a temporary foreman or supervisor from relieving an Employee from work for the balance of the turn 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 events involving discipline which occurred while the Employee was assigned as a temporary foreman or supervisor.

 


ARTICLE TWO – UNION SECURITY

 

Section B.  Union Membership and Dues Checkoff

 

1.         Each Employee who, on the effective date of this provision, is a member of the Union and each Employee who becomes a member after that date shall, as a condition of employment, maintain membership in the Union .  Each Employee who is not a member of the Union on the effective date of this provision and each Employee who is hired thereafter shall, as a condition of employment, beginning on the thirtieth (30th) day following the beginning of such employment or the effective date of this provision, whichever is later, acquire and maintain membership in the Union .

 

2.         Should the above provision be unenforceable for any reason, then, to the extent permitted by law, each Employee who would be required to acquire or maintain membership in the Union if the provision in Paragraph 1 above could lawfully be enforced, and who fails voluntarily to acquire or maintain membership in the Union, shall be required, as a condition of employment, beginning on the thirtieth (30th) day following the beginning of such employment or the effective date of this provision, whichever is later, to pay to the Union each month a service charge as a contribution towards the Union’s collective bargaining representative expenses.  The amount of the service charge, including an initiation fee if applicable, shall be as designated by the International Union Secretary-Treasurer.

 

3.         Wherever Paragraph 1 or 2 above is applicable:

 

a.         The Company will check off monthly dues or service charges, including, where applicable, initiation fees and assessments, each in amounts as designated by the International Union Secretary-Treasurer, effective upon receipt of individually signed voluntary checkoff authorization cards.  The Company shall within ten (10) days remit any and all amounts so deducted to the International Union Secretary-Treasurer with a completed summary of USWA Form R-115 or its equivalent.

 

b.         At the time of employment, the Company will suggest that each new Employee voluntarily execute an authorization for the checkoff of amounts due or to be due under Paragraph 1 or 2 above.  A copy of the card will be forwarded at the time of signing to the Financial Secretary of the Local Union.

 

c.         The Union will be notified of the amount transmitted for each Employee (including the hours and earnings used in the calculation of such amount) and the reason for non-transmission, such as in the case of interplant transfer, layoff, discharge, resignation, leave of absence, sick leave, retirement, death or insufficient earnings.

 

d.         The International Union Secretary-Treasurer shall notify the Company in writing of any Employee who is in violation of any provision of Paragraph 1 or 2 above.

 

e.         The Union shall indemnify the Company and hold it harmless against any and all claims, demands, suits and liabilities that shall arise out of or by reason of any action taken by the Company for the purpose of complying with the foregoing provisions.

 


ARTICLE TWO – UNION SECURITY

 

Section C.  PAC and SOAR Checkoff

 

1.         The Company will deduct Political Action Committee (PAC) contributions for active Employees who have submitted authorization for such deductions from their wages and for retirees who have submitted authorization for such deductions from their pension.  Such deductions shall be on a form reasonably acceptable to the Company and shall be promptly remitted to the Secretary-Treasurer of the USWA PAC Fund.

 

2.         For retirees who are or wish to become members of the Steelworkers Organization of Active Retirees (SOAR) and who have submitted authorization for such deductions from their pension, the Company will deduct SOAR dues from their pension.  Such deductions shall be on a form reasonably acceptable to the Company and shall be promptly remitted to the International Union Secretary-Treasurer.

 


ARTICLE TWO – UNION SECURITY

 

Section D.  Successorship

 

1.         The Company agrees that it will not sell, convey, assign or otherwise transfer, using any form of transaction (any of the foregoing, a Sale), any plant or significant part thereof which is covered by this Agreement to any other party (Buyer), unless the following conditions have been satisfied prior to the closing date of the Sale:

 

a.          the Buyer shall have entered into an agreement with the Union recognizing it as the bargaining representative for the Employees working at the plant(s) to be sold; and

 

b.          the Buyer shall have entered into an agreement with the Union                   establishing the terms and conditions of employment to be effective as of the closing date of the Sale .

 

2.         The Company agrees that it will not consummate any transaction resulting in a Change of Control of the Company (a Transaction) unless the ultimate parent company of the entity which gains control (Newco) has satisfied the following conditions prior to the consummation of the Transaction:

 

a.          Newco shall have recognized the Union as the bargaining representative for the Employees working at the plant(s) which are involved in the Transaction;

 

b.        Newco shall have provided the Union with reasonable assurances that it has both the willingness and financial wherewithal to honor the commitments contained in all of the agreements between the Company and the Union applicable to the assets acquired (All USWA Agreements);

 

c.          In transactions not subject to paragraph d below, Newco shall have assumed all USWA Agreements; and

 

d.         In the event the Transaction occurs less than three (3) years before the Termination Date, Newco shall have either:

 

(1)              entered into an agreement with the Union establishing the terms and conditions of employment to be effective upon the consummation of the Transaction; or

 

(2)               at the USWA's option, either

 

(a)       assumed All USWA Agreements applicable to the assets acquired, or

 

(b)              assumed All such USWA Agreements and extended them for a period of at least three (3) years beyond their then-scheduled expiration with the terms and conditions of the period of the extension to be determined, absent a negotiated agreement, by final offer interest arbitration. 

 

The Union shall provide Newco with notice of the choice of its option prior to the consummation of the Transaction.

 

3.         Change of Control is defined as the gaining by any person or group of persons (as the term person is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) (Person) of the power to direct the management and policies of the Company (other than Persons having such power as of the Effective Date).

 

4.        This Section shall not apply to any transactions solely between the    Company and any of its Affiliates, nor to a public offering of registered securities.

 

5.          If the common stock of the Company is publicly traded on a nationally recognized stock exchange, then this Section shall not apply to any Transaction that results from an unsolicited tender offer or similar unsolicited transaction.  This Section shall, however, apply in case of any merger or other consensual Transaction, regardless of whether that consensual Transaction results from an initial unsolicited offer.

 

6.         Notwithstanding the provisions of Article One, Section B (Term of the Agreement), this Section shall expire one (1) year after the Termination Date.

 

ARTICLE TWO – UNION SECURITY

 

Section E.  Neutrality

 

1.         Introduction

The Company and the Union have developed a constructive and harmonious relationship built on trust, integrity and mutual respect.  The parties place a high value on the continuation and improvement of that relationship.

 

2.         Neutrality

 

a.         To underscore the Company’s commitment in this matter, it agrees to adopt a position of Neutrality regarding the unionization of any employees of the Company. 

 

b.         Neutrality means that, except as explicitly provided herein, the Company will not in any way, directly or indirectly, involve itself in any matter which involves the unionization of its employees, including but not limited to efforts by the Union to represent the Company’s employees or efforts by its employees to investigate or pursue unionization.

 

c.         The Company’s commitment to remain neutral as defined above may only cease upon the Company demonstrating to the arbitrator under Paragraph 7 below that in connection with an Organizing Campaign (as defined in Paragraphs 3(a) through 3(c) below) the Union is intentionally or repeatedly (after having the matter called to the Union’s attention) materially misrepresenting to the employees the facts surrounding their employment or is unfairly demeaning the integrity or character of the Company or its representatives.

 

3.         Organizing Procedures

 

a.         Prior to the Union distributing authorization cards to non-represented employees at a facility owned, controlled or operated by the Company, the Union shall provide the Company with written notification (Written Notification) that an organizing campaign (Organizing Campaign) will begin.  The Written Notification will include a description of the proposed bargaining unit.

 

b.          The Organizing Campaign shall begin immediately upon provision of Written Notification and continue until the earliest of:  (1) the Union gaining recognition under Paragraph 3(d)(5) below; (2) written notification by the Union that it wishes to discontinue the Organizing Campaign; or (3) ninety (90) days from provision of Written Notification to the Company.

 

c.         There shall be no more than one (1) Organizing Campaign in a bargaining unit in any twelve (12) month period.

 

d.         Upon Written Notification the following shall occur:

(1)       Notice Posting

 

The Company shall post a notice on all bulletin boards of the facility where notices are customarily posted as soon as the Unit Determination Procedure in Paragraph 3(d)(3) below is completed.  This notice shall read as follows:

 

  “NOTICE TO EMPLOYEES

 

We have been formally advised that the United Steelworkers of America is conducting an organizing campaign among certain of our employees.  This is to advise you that:

 

1.         The Company does not oppose collective bargaining or the unionization of our employees.

 

2.         The choice of whether or not to be represented by a union is yours alone to make.

 

3.         We will not interfere in any way with your exercise of that choice.

 

4.         The Union will conduct its organizing effort over the next ninety (90) days.

 

5.         In their conduct of the organizing effort, the Union and its representatives are prohibited from misrepresenting the facts surrounding your employment.  Nor may they unfairly demean the integrity or character of the Company or its representatives.

 

6.         If the Union secures a simple majority of authorization cards of the employees in [insert description of bargaining unit provided by the Union ] the Company shall recognize the Union as the exclusive representative of such employees without a secret ballot election conducted by the National Labor Relations Board.

 

7.         The authorization cards must unambiguously state that the signing employees desire to designate the Union as their exclusive representative.

 

8.         Employee signatures on the authorization cards will be confidentially verified by a neutral third party chosen by the Company and the Union .”

 

            Following receipt of Written Notification, the Company may only communicate to its employees on subjects which directly or indirectly concern unionization on the issues covered in the Notice set forth above or raised by other terms of this Neutrality Section and consistent with this Section and its spirit and intent.

 

(2)       Employee Lists

 

Within five (5) days following Written Notification, the Company shall provide the Union with a complete list of all of its employees in the proposed bargaining unit who are eligible for Union representation.  Such list shall include each employee’s full name, home address, job title and work location.  Upon the completion of the Unit Determination Procedure described in Paragraph 3(d)(3) below, an amended list will be provided if the proposed unit is changed as a result of such Unit Determination Procedure.  Thereafter during the Organizing Campaign, the Company will provide the Union with updated lists monthly.

 

(3)       Determination of Appropriate Unit

             

As soon as practicable following Written Notification, the parties will meet to attempt to reach an agreement on the unit appropriate for bargaining.  In the event that the parties are unable to agree on an appropriate unit, either party may refer the matter to the Dispute Resolution Procedure contained in Paragraph 7 below.  In resolving any dispute over the scope of the unit, the arbitrator shall apply the principles used by the National Labor Relations Board.

 

(4)       Access to Company Facilities

  

During the Organizing Campaign the Company, upon written request, shall grant continuous access to well-traveled areas of its facilities to the Union for the purpose of distributing literature and meeting with unrepresented Company employees.  Distribution of Union literature shall not compromise safety or production or unreasonably disrupt ingress or egress or the normal business of the facility.  Distribution of Union literature and meetings with employees shall be limited to non-work areas during non-work time. 

 

(5)       Card Check/Union Recognition

 

(a)       If, at any time during an Organizing Campaign which follows the existence of a substantial and representative complement of employees in any unit appropriate for collective bargaining, the Union demands recognition, the parties will request that a mutually acceptable neutral (or an arbitrator from the American Arbitration Association if no agreement on a mutually acceptable neutral can be reached) conduct a card check within five (5) days of the making of the request.

 

(b)       The neutral shall confidentially compare the authorization cards submitted by the Union against original handwriting exemplars of the entire bargaining unit furnished by the Company.  If the neutral determines that a simple majority of eligible employees has signed cards which unambiguously state that the signing employees desire to designate the Union as their exclusive representative for collective bargaining purposes, and that cards were signed and dated during the Organizing Campaign, then the Company shall recognize the Union as the exclusive representative of such employees without a secret ballot election conducted by the National Labor Relations Board.

 

(c)       The list of eligible employees submitted to the neutral shall be jointly prepared by the Union and the Company.

 

4.         Hiring

 

a.         The Company shall, at any facility which it builds or acquires, give preference in hiring to qualified employees of the Company then accruing Continuous Service under the Agreement. In choosing between qualified applicants, the Company shall apply standards established by Article Five, Section E (Seniority) of the Agreement. 

 

b.         The hiring provision set forth above shall not apply where the employer for the purposes of collective bargaining is or will be a Venture (as defined in Paragraph 5(a) below); provided, however, that in a case where a Venture could have an adverse impact on employment opportunities for then current Employees, then the hiring provision set forth above shall apply to such Venture as well.

 

c.         Before implementing Paragraphs 4(a) and (b), the Company and the Union will decide how this preference will be applied.

 

d.                 In determining whether to hire any applicant (whether or not such applicant is an Employee covered by the Agreement), the Company shall refrain from using any selection procedure which, directly or indirectly, evaluates applicants based on their attitudes or behavior toward unions or collective bargaining.

 

5.         Definitions and Scope of this Agreement

 

a.         Rules with Respect to Affiliates and Ventures

           

(1)       For purposes of this Section, the Company includes (in addition to the Company) any entity which is:

 

(a)       engaged in (1) the mining, refining, production, processing, transportation, distribution or warehousing of raw materials used in the making of steel; or (2) the making, finishing, processing, fabricating, transportation, distribution or warehousing of steel; and

 

(b)              either an Affiliate or Venture of the Company.

 

(2)       An Affiliate shall mean any business enterprise that Controls, is under the Control of, or is under common Control with ISG.

 

Control of a business enterprise shall mean possession, directly or indirectly, of either:

 

(a)       fifty percent (50%) of the equity of the enterprise; or

 

(b)       the power to direct the management and policies of said enterprise.

 

(3)       Venture shall mean a business enterprise in which the Company owns a material interest.

 

b.         Rules With Respect to Existing Affiliates and Ventures

The Company agrees to cause all of its existing Affiliates and/or Ventures that are covered by the provisions of Paragraph 5(a)(1)(a) above, to become a party/parties to this Section and to achieve compliance with its provisions.

 

c.         Rules with Respect to New Affiliates and Ventures

           

The Company agrees that it will not consummate a transaction which would result in the Company having or creating (1) an Affiliate or (2) a Venture, without ensuring that the New Affiliate and/or New Venture, if covered by the provisions of Paragraph 5a(1)(a) above, agrees to and becomes bound by this Section.

 

d.         In the event that an Affiliate or Venture is not itself engaged in the operations described in Paragraph 5(a)(1)(a) above, but has an Affiliate or Venture that is engaged in such operations, then such Affiliate or Venture shall be covered by all provisions of this Section.

 

6.         Bargaining in Newly-Organized Units

 

Where the Union is recognized pursuant to the above procedures, the first collective bargaining agreement applicable to the new bargaining unit will be determined as follows:

 

a.         The employer and the Union shall meet within fourteen (14) days following recognition to begin negotiations for a first collective bargaining agreement covering the new unit.  In these negotiations the parties shall bear in mind the wages, benefits and working conditions in the most comparable operations of the Company (if any comparable operations exist), and those of unionized competitors to the facility in which the newly recognized unit is located.

 

b.         If after ninety (90) days following recognition the parties are unable to reach agreement for such a collective bargaining agreement, they shall submit those matters that remain in dispute to the Chair of the Union Negotiating Committee and the Chair of the Company Negotiating Committee, who shall use their best efforts to assist the parties in reaching a collective bargaining agreement.

 

c.         If after thirty (30) days following the submission of outstanding matters the parties remain unable to reach a collective bargaining agreement, the matter may be submitted to final offer interest arbitration in accordance with procedures to be developed by the parties. 

 

d.         If interest arbitration is invoked, it shall be a final offer package interest arbitration proceeding.  The interest arbitrator shall have no authority to add to, detract from or modify the final offers submitted by the parties, and the arbitrator shall not be authorized to engage in mediation of the dispute.  The arbitrator shall select one or the other of the final offer packages submitted by the parties on the unresolved issues.  The interest arbitrator shall select the final offer package found to be the more reasonable when considering (1) the negotiating guidelines described in Paragraph 6(a) above, (2) any matters agreed to by the parties and therefore not submitted to interest arbitration and (3) the fact that the collective bargaining agreement will be a first contract between the parties.  The decision shall be in writing and shall be rendered within thirty (30) days after the close of the interest arbitration hearing record.

 

e.         Throughout the proceedings described above concerning the negotiation of a first collective bargaining agreement and any interest arbitration that may be engaged in relative thereto, the Union agrees that there shall be no strikes, slowdowns, sympathy strikes, work stoppages or concerted refusals to work in support of any of its bargaining demands.  The Company, for its part, likewise agrees not to resort to the lockout of Employees to support its bargaining position.

 

7.         Dispute Resolution

 

a.         Any alleged violation or dispute involving the terms of this Section may be brought to a joint committee of one (1) representative each from the Company and the Union .  If the alleged violation or dispute cannot be satisfactorily resolved by the parties, either party may submit such dispute to the arbitrator.  A hearing shall be held within ten (10) days following such submission and the arbitrator shall issue a decision within five (5) days thereafter.  Such decision shall be in writing and need only succinctly explain the basis for the findings.  All decisions by the arbitrator pursuant to this article shall be based on the terms of this Section and the applicable provisions of the law.  The arbitrator’s remedial authority shall include the power to issue an order requiring the Company to recognize the Union where, in all the circumstances, such an order would be appropriate.

 

b.         The arbitrator’s award shall be final and binding on the parties and all employees covered by this Section.  Each party expressly waives the right to seek judicial review of said award; however, each party retains the right to seek judicial enforcement of said award.

 

c.         For any dispute under this Section and the interest arbitration procedure described in Paragraph 6 above, the parties shall choose the arbitrator from the list of arbitrators described in Article Five, Section I (Adjustment of Grievances), Paragraph 6, contacting them in the order listed, and retaining the first to indicate an ability to honor the time table set forth above for the hearing and the decision.


ARTICLE TWO – UNION SECURITY

 

Section F.  Bargaining Unit Work

 

1.         Guiding Principle

 

a.         The Guiding Principle is that the Company will use Employees to perform any and all work which they are or could be capable (in terms of skill and ability) of performing (Bargaining Unit Work), unless the work meets one of the exceptions outlined in Paragraph 2 below.

 

b.                  Any individual or entity other than an Employee who performs Bargaining Unit Work shall be referred to herein as an Outside Entity.

2.         Exceptions

 

In order for work to qualify as an exception to the Guiding Principle, such work must meet all aspects of one of the definitions outlined below and the Company must be in full compliance with all of the requirements of the particular exception as outlined below.

 

a.         Work Performed In or Around the Plant

 

(1)       New Construction Work

 

 

New Construction Work is that portion of the work associated with significant (in the context of the facility) capital projects involving the installation, replacement or reconstruction of any equipment or productive facilities which (a) is not primarily maintenance; (b) does not involve bundling the work of separate projects which could be done separately; (c) does not involve any work not directly related to the project in question; and (d) is not regular, normal, routine, day-to-day or ongoing.

 

The Company may use Outside Entities to perform New Construction Work.

 

(2)       Surge Maintenance Work

 

Surge Maintenance Work is that portion of maintenance and repair work which is required by bona fide operational needs performed on equipment where the Company temporarily uses Outside Entities to supplement bargaining unit forces and where: (a) the use of Outside Entities would materially reduce the downtime of the equipment; and (b) the work cannot reasonably be performed by bargaining unit forces.

 

The Company may use Outside Entities to perform Surge Maintenance Work provided that the Company has offered all reasonable and appropriate requested overtime to all qualified Employees who, by working such overtime, could reduce the amount of Surge Maintenance Work performed by Outside Entities in an efficient manner.

 

b.         Work Performed Outside the Plant or its Environs

 

(1)       Fabrication and Repair Work

 

Fabrication Work is the creation outside of the plant or its environs of items or parts used in the Company’s business which are not themselves, either directly or after additional work is performed on them, sold to customers.  Repair Work is the repair, renovation or reconstruction of those items.

 

Fabrication and Repair Work may be performed by Outside Entities only where the location of the work’s performance is for a bona fide business purpose and the Company can demonstrate a meaningful sustainable economic advantage to having such work performed by an Outside Entity.

 

In determining whether a meaningful sustainable economic advantage exists, neither lower wage rates, if any, of the Outside Entity, nor the lack of necessary equipment (unless the purchase, lease or use of such equipment would not be economically feasible) shall be a factor.

 

(2)       Production Work

 

The Company may use Outside Entities to perform production work outside the plant and its environs provided the Company demonstrates that it is utilizing plant equipment to the maximum extent consistent with equipment capability and customer requirements and the Company is making necessary capital investments to remain competitive in the steel business and is in compliance with Article Eleven, Section B (Investment Commitment).

 

c.         Warranty Work

 

Warranty Work is work which is not a service contract or replacement program and which is performed pursuant to a pre-existing warranty on new or rehabilitated equipment or systems (1) in order to assure that seller representations will be honored at no additional cost to the Company; (2) within eighteen (18) months of the installation of such warranted equipment unless longer warranties are the manufacturer’s published standard warranties offered to customers in the normal course of business; and (3) for the limited time necessary to make effective seller guarantees that such equipment or systems are free of errors or will perform at stated levels of performance.

 

The Company may use Outside Entities to perform Warranty Work provided the guarantor of the Warranty Work is responsible for the cost of such work.

 

3.                  Commitment

 

In addition to the understandings described in Paragraphs 1 and 2 above, the Company agrees that:

 

a.         where total hours worked by employees of Outside Entities in or outside the plant reach or exceed the equivalent of one (1) full time employee, defined as forty (40) hours per week over a period of time sufficient to indicate that the work is full time, the work performed by Outside Entities will be assigned to Employees and the number of Employees will be appropriately increased if necessary, unless the Company is able to clearly demonstrate that the work cannot be performed by the addition of an Employee(s), or that assignment of the work to Employees would  not be economically feasible. In determining whether the assignment of the work to Employees is or is not economically feasible, the lower wage rates, if any, of an Outside Entity shall not be a factor.

 

b.                  The parties agree that the Union may at any time enforce the obligations described above, irrespective of the Company’s compliance with any other obligation in this Section or any other part of the Agreement, and that an arbitrator shall specifically require the Company to meet the above Commitment, including imposing hiring orders and penalties.

 

c.                  The Company shall supply the Bargaining Unit Work Committee (as defined below) with all requested information regarding compliance with the Commitment.

 

4.         Bargaining Unit Work Committee

 

At each plant a committee consisting of four (4) individuals, two (2) individuals designated by each of the parties, shall be constituted to serve as the Bargaining Unit Work Committee.