MILLWRIGHT WORKING AGREEMENT NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS (NORTHEASTERN MINNESOTA & WISCONSIN) OF THE

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1 MILLWRIGHT WORKING AGREEMENT NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS (NORTHEASTERN MINNESOTA & WISCONSIN) OF THE UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA

2 INDEX PAGE Preamble 2 Article 1 Considerations for Agreement 2 Article 2 Designation of Parties 2 Article 3 Union Recognition 3 Article 4 Scope of Agreement 3 Article 5 Union Security 3 Article 6 Insurance and Taxes 5 Article 7 Hiring 5 Article 8 Conflicting Agreement 6 Article 9 Violations of Agreement 6 Article 10 Settlement of Disputes 6 Article 11 Management Claus 7 Article 12 Union Representatives 8 Article 13 Rotation of Employees 8 Article 14 Apprenticeship and Training 8 Article 15 Fringe Benefits 9 Article 16 Safety 14 Article 17 Lockout, Pickets and Strikes 14 Article 18 Subcontractor Clause 14 Article 19 Payday and Wage Payments 15 Article 20 Saving Clause 15 Article 21 Duration 16 Article 22 Hours of Work, Shifts 16 Article 23 Call in Pay 17 Article 24 Steward 17 Article 25 Condition of Employment 18 Article 26 Tools 18 Article 27 Foreman 18 Article 28 Subsistence 19 Article 29 Wages 19 Article 30 Work Preservation 20 Article 31 Millwright Fund 20 Jurisdiction Map 21 Signature Page 22 Signature Page 23 1

3 AGREEMENT BETWEEN MILLWRIGHT CONTRACTORS AND NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS & JOINERS OF MINNESOTA, NORTH DAKOTA, SOUTH DAKOTA AND WISCONSIN MILLWRIGHT AND MACHINERY ERECTORS LOCAL #1348 EXPIRES April 30, 2015 BASIC ARTICLES OF AGREEMENT This Agreement is entered into this day of,, by and between hereinafter referred to as the Employer and the North Central States Regional Council of Carpenters on behalf of Millwright and Machinery Erectors Local #1348 of the United Brotherhood of Carpenters and Joiners of America, located in Minnesota and in Wisconsin hereinafter referred to as the Union, to establish rates of pay, wage, hours of employment, fringe benefits and vacations, where applicable and other terms and provisions and concerning employment relations and collective bargaining relations, between or involving such parties on all construction work. NOW, THEREFORE, for such purposes, it is agreed as follows: ARTICLE 1 CONSIDERATIONS FOR AGREEMENT The considerations for this Agreement are the mutual promises of the parties and their mutual promises to establish, maintain and promote sound and harmonious labor relations. It is desirable to maintain the cooperative relationship and jurisdictional work assignments existing during the past years between the Employer and the employees represented by the Union. ARTICLE 2 DESIGNATION OF PARTIES (A) (B) The Employer as a party of this Agreement has agreed to be bound to the terms of this Agreement. The Labor Organization on its own behalf and on behalf of the Millwrights and their Apprentices whom they represent and on whose behalf they are recognized, are parties hereto. The status of said Union is dual, in that they are parties hereto as principals, and also as agents for the employees whom they represent and on whose behalf they are recognized or to be recognized as hereinafter provided. 2

4 ARTICLE 3 UNION RECOGNITION The Employer hereby recognized the Union as the exclusive collective bargaining representative of the employees in the craft signatory to this Agreement, in respect to rates of pay, wages, hours of employment and fringe benefits where applicable, and other conditions of employment. The Union is hereby recognized hereunder by the Employers as the sole and exclusive bargaining representative of the employees respectively represented by them. The Union represents that it is qualified for such recognition. ARTICLE 4 SCOPE OF AGREEMENT This Agreement shall cover all Millwright work done in the territorial jurisdiction of Millwright and Machinery Erectors Local #1348 and will include the following counties in the State of Minnesota; Aitkin, Becker, Beltrami, Carlton, Cass, Clearwater, Cook, Lake, Crow Wing, Hubbard, Itasca, Kittson, Koochiching, Lake of the Woods, Mahnomen, Marshall, Norman, Otter Tail, Pennington, Red Lake, Roseau, St. Louis, Wadena, Wilkin and that part of Clay County outside of a 5 mile radius of Moorhead and that part of Polk County outside of a 5 mile radius of East Grand Forks. In Wisconsin the County of Douglas and that portion of Bayfield County west of Highway 63, and west of a line drawn between Drummond and Herbster and the Lake Superior shore, including the cities of Drummond and Herbster. Employer s signatory to this Agreement recognizes this jurisdiction and agrees to be bound by the provisions of this Agreement in the designated area. See attached Map ARTICLE 5 UNION SECURITY Section 5.1 The Union shall be entitled to Union Security to the extent that each employee in the collective bargaining unit represented by such Union shall on the eighth (8 th ) day following the beginning of employment in such collective bargaining unit by such Employer under the coverage of this Agreement of the effective date of this Agreement, whichever is later, be required to become and remain a member in good standing of such Union as a condition of employment. The Employer will be required to dismiss employees who refuse to comply with this Union Shop Provision after written notification by a bonafide representative of the Union to a responsible representative of the Employer on the job. The Union shall be entitled to approach individual employees for organizational purposes as provided by law. Section 5.2 The Union recognized under Article III, of this Agreement shall be entitled to Union Security to the extent that each Employee in the collective bargaining unit represented by such Union shall on the eighth (8th) day following the beginning of employment in such collective bargaining unit by such Employer under the coverage to this Agreement of the effective date of the Agreement, 3

5 whichever is later, be required to become and remain a member in good standings of such Union as a condition of employment. The Employer will be required to dismiss Employees who refuse to comply with this Union Shop Provision after written notification by a bonafide representative of the Union to a responsible representative of the Employer on the job. Each of the Unions shall be entitled to approach individual Employees for organizational purposes as provided by law. Section 5.3 The Contractor agrees to recognize voluntary and properly signed authorization cards of its employees requesting the Contractor to make deductions from wages for the amount of any delinquent dues, initiation fees, or working dues deduction; such amounts to be sent to the North Central States Regional Council of Carpenters. Section 5.4 Working Dues Deduction. Upon the Union s receipt of an employee s written authorization, which shall be irrevocable for not more than one (1) year or the term of this Agreement, whichever occurs sooner, the Employer shall deduct from the employee s wages, working dues deduction in the amount per hour certified to the Employer by the Union as representative of that required of all members to maintain membership in the Union, and remit the same in an amount as specified under Article 29 Wage & Fringes on a remittance form showing the names and amounts from whom the deductions were made in the amount required for the particular area where the work is performed. Such form shall also show the various Fund contributions made by the Employer pursuant to this Agreement. Upon the Employer request, the Union shall furnish the Employer with a copy of the employees written authorization. Failure of the Union to submit such authorization shall relieve the Employer of the obligation to deduct the Working Dues Deduction. Such written authorization by an employee may be revoked by the employee during a ten (10) day period prior to the anniversary or termination date of this Agreement, whichever occurs first. In the absence of such revocation, sent and received in accordance with the foregoing, the authorization shall be renewed for additional yearly periods during the term of this Agreement. The employee s written authorization shall require that the employee acknowledge that employment in the construction industry may cause the employee to be employed by several different Employers signatory to this Collective Bargaining Agreement and that the authorization will extend to all Employers for whom the employee may perform work under the terms and provisions of the Collective Bargaining Agreement in force and effect as of the time of employment. It shall be the Union s obligation to provide each Employer with a copy of each employee s current written authorization upon the establishment or re-establishment of an employment relationship. Section 5.5 The working dues and assessments required of each employee shall be established annually by the North Central States Regional Council of Carpenters in accordance with its By-laws.) 4

6 ARTICLE 6 INSURANCE AND TAXES (A) (B) (C) (A) (B) (C) (D) (E) The Employer agrees to carry any and all insurance and pay all applicable taxes as required by applicable State and Federal Laws. The Employer further agrees to pay for State Workmen s Compensation Insurance and into State Unemployment Compensation Fund such amounts as are due under State and Federal Laws. In the event that a National/State Health Insurance Program is enacted, the Employer contribution to the current Health and Welfare Plan, as described in Article 16, shall be applied to any cost incurred by the Employer and/or the employees covered hereunder in Wage/fringe increases as follows: If the current Employer contribution is in excess of the cost of such National/State Health Plan, then at the discretion of the employees covered hereunder, the difference shall become a contribution to either a supplemental health and welfare insurance plan and/or one of the existing Pension Plans. ARTICLE 7 HIRING When the Employer needs men, he shall give the Union equal opportunity with all sources to provide suitable applicants. When calling the Union for Journeyworkers or Apprentices, the Employer shall endeavor to give a forty-eight (48) hour notice. There shall be no discrimination against any prospective Employee, by the Employer or the Union, because of affiliation or non-affiliation with the Union, race, color, sex, age, political or religious beliefs. The Union agrees that to the best of its ability all applicants for employment referred to an Employer shall be experienced in the classification requested. A Contractor from outside of the jurisdictional area of this Agreement will be allowed to bring in one (1) foreman and one (1) key bargaining unit employee, provided, however, the Contractor has signed this Agreement with the North Central States Regional Council of Carpenters, and further provided, that the Contractor hires at a fifty to fifty (50 50) ratio bargaining unit employees who are members of local #1348. When employees are to be laid off the contractor will make every reasonable effort lay off the travelers first that are not members of local #1348, unless the Local can t provide qualified millwrights to perform the work. 5

7 ARTICLE 8 CONFLICTING AGREEMENTS The Employers agree not to enter into any Labor Agreements covering Construction work, exclusive of maintenance and repair shops, with their employees on whose behalf Local #1348 has been granted recognition hereunder individually or collectively which in any way conflicts with the terms and provisions of this Agreement. ARTICLE 9 VIOLATIONS OF AGREEMENT In the event that the Employer deliberately violates the provisions of the foregoing Articles or deliberately violates any provisions of this Agreement relating to wages, hours of work, overtime differentials and vacations, any back pay owed to the employees because of such violation shall be paid by the Employer at the rate of two times the standard straight time and overtime rates. Reasonable evidence of clerical error or honest mistake in interpretation of the Agreement shall exempt the Employer from the double penalty provision, and in such case the Employer shall be required to pay only the actual amount of back pay involved, at the standard straight time and overtime rate. ARTICLE 10 SETTLEMENT OF DISPUTES (A) (B) (C) Any controversy over the interpretation of or adherence to the terms of this Agreement shall first be attempted to be resolved between the Union and the Employer. Any controversy or grievance shall be deemed to be waived unless submitted in writing within ten (10) working days after the first occurrence of the event or knowledge of the condition giving rise to the grievance. If a satisfactory settlement cannot be reached within five (5) working days the matter may be brought to the AGC-Basic Trades Disputes Board, if both parties agree in writing. In such case the grieving party shall submit a written statement of the claim and facts of the matter to other parties including the Employer and the Union. (The rules of the Disputes Board shall be those already adopted by the Joint Committee). Both parties must sign Agreement to bring matter to Disputes Board. Both parties must sign the document binding them to Board decision. If either party does not attend meeting after signing above and being notified of the meeting date and time, a decision will be rendered though they are not present. Decisions of the Disputes Board will be drafted at the conclusion of the meeting, signed by members of the Board, and distributed to both parties at that time. The Disputes Board is to be made up of equal numbers of Management and Labor representatives who will meet regularly to settle any disputes, (other than jurisdictional disputes) to avoid work stoppages, or other problems affecting productivity. This Board shall have no 6

8 (D) power to add to, delete, or modify any of the terms or provisions of this Agreement. All decisions of the Disputes Board shall be final and binding on the parties. If either party, after signing above documents, refuses to abide by the decision of the Disputes Board, economic action may be taken by the other party. Should the Disputes Board, as established, be unable to reach a decision on the matter before it, or because of a deadlock (lack of majority) or if either party refuses to use the Joint Disputes Board then the matter may be referred to a Board of Arbitration that shall operate in the following manner: The Union shall appoint an Arbitrator and the Employer shall appoint an Arbitrator within ten (10) working days and the two Arbitrators thus selected shall appoint a Neutral Chairman. In the event of the failure of the Arbitrators selected by the parties to agree on a Neutral Chairman within ten (10) working days after the dispute is referred to arbitration, they shall ask the Federal Mediation and Conciliation Service for a list of five (5) names from which the aggrieved party shall strike the first two (2) names and other party shall then strike two (2) names, and the final name shall be selected as the Neutral Chairman. The Neutral Chairman thus selected shall set the time and place for hearings, which shall begin no later than ten (10) working days after his selection, with the final decision to be handed down in not more than ten (10) working days after the last hearing is held. The time may be extended by mutual agreement between the parties. The decision of the Arbitrators shall be final and binding on signatories to this Agreement who are parties to the dispute; provided, however, that the Arbitrators shall have no power to add to, delete, or modify any provisions of this Agreement. The Employer will pay all expenses of his Arbitrator and the Union will pay all expenses of its Arbitrator, and the Employer and the Union will share equally all fees and expenses of the Neutral Chairman. All work and other conditions prevailing immediately prior to the raising of the question to be decided under this Article shall remain unchanged until final decision has been reached hereunder. ARTICLE 11 MANAGEMENT CLAUSE Management reserves the right to manage its jobs to the best interest of Management; the right to retain or dispense with employees; to reduce or increase the number of employees needed on each project, crew, activity or piece of equipment. Management has the right to determine reasonable employment qualifications of employees and may discharge any employee whose work is unsatisfactory or who fails to observe reasonable regulations or safety precautions prescribed by the Employer or any 7

9 Governmental Agency. The employee shall use any tools, equipment, machinery, new materials, products or procedures of his craft required by the Employer. ARTICLE 12 UNION REPRESENTATIVES (A) (B) Authorized representatives of the North Central States Regional Council of Carpenters shall have access to all jobs under construction, provided, however, that they shall report their presence to the Contractor or his immediate representative on the jobsite and shall not interfere with employees during working hours. The representatives shall comply with the specific project safety rules, regulations and customer/owner requirements. The authorized Business Representative of the North Central States Regional Council of Carpenters may request the Contractor in writing for a notarized statement of a specific employee s wages and hours on a particular job for a particular period if the North Central States Regional Council of Carpenters has reasonable cause to suspect that provisions of the contract are not being complied with. A copy of the aforesaid request will be sent to the party and the Association. A copy of the notarized statement will be sent to the North Central States Regional Council of Carpenters within three (3) working days after receipt of request. ARTICLE 13 ROTATION OF EMPLOYEES The Union may not require rotation of employees during the life of this Agreement, other than Apprentices shifted for purposes of training. ARTICLE 14 APPRENTICESHIP AND TRAINING All Apprentices in the millwright classifications shall be governed by the provisions of the Joint Apprenticeship Committee Standards adopted. The apprentice base wage rates shall be as follows: 0 to 1000 hours - 65% 1000 to 2000 hours - 70% 2000 to 3000 hours - 75% 3000 to 4000 hours - 80% 4000 to 5000 hours - 85% 5000 to 6000 hours - 90% 6000 to 7000 hours - 95% Contractors who employ apprentices during times when the apprentices must attend school for mandatory apprentice training sessions shall lay off the apprentices for the period of training sessions, and they shall report the layoffs as having been taken under the terms of a collective bargaining agreement to attend apprentice training school. 8

10 The Union, Employer and Apprentice agree to take all reasonable steps to facilitate the apprentices receipt of unemployment benefits when attending mandatory training. ARTICLE 15 FRINGE BENEFITS The Employer agrees to contribute every month, not later than the 15th of the following month, hereinafter called the "due date", such sums for Pension, Health and Welfare, Vacation, Dental, Apprenticeship and Promotion Funds as they may be established, an amount for each hour worked by all employees covered by this Agreement. Each payment shall be accompanied by a report in a form as specified by the Trustees. The Trusts shall be governed by an equal number of Union and Employer Trustees, and the Trustees shall represent the interests of the Plan participants. The terms of the Trust Agreements, the Plan Documents and Plan policies, as amended from time to time, are hereby incorporated as a part hereof. (A) New signatory or delinquent Employers, upon becoming bound to this Agreement after May 1, 2011, shall obtain a $50,000 surety bond to be held by the Trustees of the Fringe Benefit Funds. In the event that the Employer cannot or does not secure a $50,000 bond, the Employer must pay fringe benefits on a weekly basis at the same time as the Employer s regular payroll disbursements. Weekly basis shall mean that the Employer s report and payment for a particular work week shall be due on the Friday of the following week. An Employer s report and payment shall be considered delinquent if not postmarked on or before such day. In addition to the weekly Fringe Benefit contributions, the unbonded employers and delinquent employers must also pay into an escrow account held by the Fringe Benefit Fund Trustees or their designee(s) an amount equal to 20% of the Employer s weekly fringe benefit payment. The unbonded/delinquent Employer shall continue to make weekly payments to the escrow account until the balance of the escrow account reaches $50,000 ($25,000 if the Employer has fewer than seven (7) regular employees). An Employer may cash out its escrow account only if the Employer has provided proof to the Trustees or their designee(s) that the Employer has obtained a $50,000 surety bond to be held by the Trustees of the Fringe Benefit Funds. (B) An Employer shall be considered delinquent for a particular work month (or work week in the case of Employers on weekly reporting) if its required report and the proper payment for that month (week) are not postmarked on or before the 15 th day of the following month (Friday of the following week, for Employers required to make payments on a weekly basis), irrespective of whether such delinquency is willful or otherwise (C) Contributions which are delinquent as defined in this article shall be deemed to be unpaid contributions for purposes of the Funds remedies pursuant to this Agreement and applicable 9

11 (D) (E) (F) (G) (H) law. An Employer who is delinquent and has unpaid contributions shall be required to pay to the Funds an additional amount of 10% of the amount of the unpaid contributions as liquidated damages together with interest on the unpaid contributions as specified in the Trust Agreement, or if greater, two times the specified interest on the unpaid contributions. When the Trustees have determined that an Employer is delinquent in its Fringe Benefit contributions, the Employer shall make ongoing and future Fringe Benefit contributions on a weekly basis and establish an escrow account as described in this article. Once the Employer has made payments on a weekly basis for 26 consecutive weeks without further delinquency, the Trustees may, in their sole discretion, remove the requirement that such delinquent Employer make weekly fringe fund reports and payments and contributions to the escrow account. The Trustees may, in their sole discretion, permit such delinquent Employer to cash out its escrow account only after the Employer has made Fringe Benefit contributions for one year without delinquency and provided proof of a surety bond as required by this article. Illustration: If an Employer s report and payment for the January work month have not been postmarked before February 16, such Employer becomes delinquent at that point and must pay the full amount due, plus interest and 10% as liquidated damages or, if greater, double interest. In addition, the Employer shall be placed on the weekly reporting basis for work weeks commencing after February 16. Reports and payments shall then be due each week on the Friday of the week following the work week, and weekly payments shall be made to an escrow account in an amount equal to 20% of the weekly contributions due. When the Employer has completed 26 consecutive weeks without further delinquency, the Trustees of the Fringe Benefit Funds may (in their discretion) allow the Employer to revert to monthly Fringe Benefit contributions. When the Employer has completed one year of required Fringe Benefit payments without further delinquency, and has proven to the Trustees that it has obtained a $50,000 surety bond to be held by the Trustees, the Trustees may (in their discretion) allow the Employer to cash out the escrow account. The delinquent Employer shall also be required to pay all cost of collection actually incurred by the Trust Fund, including all attorney fees, service fees, filing fees, court reporter fees and all other fees, costs and disbursements incurred by or on behalf of the Trust Funds in collecting the amount due. Each Employer who is required to make payment to the Trust Funds shall promptly furnish to the Trustees or their authorized agents, on demand, in paper and electronic form, all necessary employment and payroll records relating to its employees covered by this Agreement, including 10

12 (I) (J) (K) any other relevant information that may be required in connection with the administration of the Trust Funds. The Trustees or their authorized agents may examine such employment or payroll records whenever such examination is deemed necessary in connection with the proper administration of the Trust Funds upon authorization of the Trustees. If any Employer fails or refuses to furnish its payroll records to the Trustees or their authorized agents upon demand or refuses to afford the Trustees, or their authorized agents reasonable opportunity to examine the same in accordance with standard auditing procedures, the Trustees may enforce such right by legal action in which event all attorney fees, service fees, filing fees, court reporter fees, and other legal costs and disbursements, as well as the auditing fees and costs incurred in conducting such audit, shall be paid by such Employer on direction of the Trustees. The Unions shall also have the right to take economic action, including but not limited to the right to refuse to supply personnel, to enforce the rights enumerated in this Article on behalf of the Unions and the Trustees. The parties to this Agreement acknowledge that the provisions of this Agreement establishing rates of pay, wages, all hours of employment and other terms and conditions of employment, including fringe benefits, apply to employees employed in job classifications under this contract. National or State Health Insurance. In the event that health care reform enacted in 2010 under Public Law (the Patient Protection and Affordable Care Act) and Public Law (the Health Care and Education Reconciliation Act of 2010), or any subsequent health care reform enacted by Congress or by the legislature of a state in the jurisdiction of this Agreement, affects the amount of necessary contributions to the North Central States Regional Council of Carpenters Health Fund, this Agreement shall be open for the sole and exclusive purpose of apportioning the amount of the then-current hourly contribution required by this Article among North Central States Regional Council of Carpenters Health Fund, wages, and any payments required under such health care reform legislation. The reapportionment shall be made in accordance with agreement reached between the Trustees of said Fund and the negotiating committees of the Associated General Contractors of Minnesota, Inc. and the North Central States Regional Council of Carpenters. Pension Rehabilitation Plan. The actuary for the Twin City Carpenters and Joiners Pension Fund (the Plan) has certified that the Plan, for the Plan year beginning January 1, 2010, is in critical status as that term is defined in the Pension Protection Act of As a result of the Plan being so certified, the Trustees of the Plan are required to adopt and the parties to this Agreement are required to implement a Rehabilitation Plan. The Trustees have adopted a Rehabilitation Plan, dated April 9, 2010, and have communicated it to the bargaining parties, by 11

13 (L) notice dated April 30, The Rehabilitation Plan is hereby incorporated into this Agreement by this reference. The parties hereby implement the Rehabilitation Plan and authorize and direct the Trustees to take any and all actions permitted or required by the Rehabilitation Plan or which they find reasonable and appropriate in achieving the objectives of the Rehabilitation Plan. Designation of Fringe Benefit Funds: Benefit contribution rates will be paid by the employer to the following funds in the appropriate areas. Home funding shall be allowed. Wilson-McShane 3001 Metro Drive, Suite 500 Bloomington, MN / Duluth Building Trades Welfare Fund 314 W Superior St #750 Duluth, MN / Duluth Building Trades Vacation Fund 314 W Superior St #750 Duluth, MN / Wisconsin State Carpenters Pension Fund P.O. Box 4002 Eau Claire, WI / North Central Carpenters Supplemental Retirement Plan 314 W Superior St #750 Duluth MN / (M) Plan Mergers, Terminations, and Redirection of Contributions. The parties recognize the need for a cohesive and uniform fringe benefits plan to the extent feasible and that contribution amounts to said Trust Funds may need to be adjusted during the term of this Agreement in order to facilitate a transition to a cohesive plan of benefits. Accordingly, upon notifying the Employer and consistent with the applicable procedures in the governing Trust Agreements, the Union may make changes in the contribution rates and, in conjunction with the appropriate Trust Fund Trustees, may pursue merger, termination or freezing of said Trust Funds. The parties to this Agreement recognize that the Carpenters and Joiners Welfare Fund may, at some future date, take action to accept the Employer contributions for health benefits, currently being contributed to the Duluth Building Trades Welfare Plan for worked performed 12

14 under this agreement and predecessor agreements. The parties to this Agreement recognize that the North Central States Regional Council of Carpenters Defined Contribution Plan may, at some future date, take action to accept Employer contributions for defined contribution benefits, currently being contributed to the North Central Carpenters Supplemental Retirement Plan for work performed under this agreement and predecessor agreements. The parties to this Agreement recognize that the North Central States Regional Council of Carpenters Vacation Fund may, at some future date, take action to accept Employer contributions for vacation fund benefits, currently being contributed to the Duluth Building Trades Vacation Fund for work performed under this agreement and predecessor agreements. Notwithstanding any language within this Agreement or predecessor agreements which specifically relate to contributions made to the Duluth Building Trades Welfare Fund; the Union may direct, in its sole discretion, that the Employer contributions for health and welfare benefits shall be made to the Carpenters and Joiners Welfare Fund instead of the Duluth Building Trades Welfare Fund. Notwithstanding any language within this Agreement or predecessor agreements which specifically relate to contributions made to the North Central Carpenters Supplemental Retirement Plan; the Union may direct, in its sole discretion, that the Employer contributions for defined contribution benefits shall be made to the North Central States Regional Council of Carpenters Defined Contribution Plan instead of the North Central Carpenters Supplemental Retirement Plan. Notwithstanding any language within this Agreement or predecessor agreements which specifically relate to contributions made to the Duluth Building Trades Vacation Fund; the Union may direct, in its sole discretion, that the Employer contributions for vacation fund benefits shall be made to the North Central States Regional Council of Carpenters Vacation Fund instead of the Duluth Building Trades Vacation Fund. In such event that the Union redirects contributions as described in this Section, the newly designated Employer contributions for benefits shall be added to this Article, and the Employer shall be notified of the new payment procedures and any adjustments to benefit fund contributions or the Base Wage Rate resulting from the change. The Total Package to be paid to employees, however, will not change during the term of this Agreement. All other provisions of this Agreement relating generally to the administration, payment, and collection of contributions to fringe benefit funds shall govern with regard to the designated funds. Contributions to the Carpenters and Joiners Welfare Fund shall be remitted to Wilson McShane Corporation, 3001 Metro Drive, Suite 500, Bloomington, MN Contributions to the North Central States Regional Council of Carpenters Defined Contribution Plan and the 13

15 North Central States Regional Council of Carpenters Vacation Fund shall be remitted to P.O. Box 4002, Eau Claire, WI ARTICLE 16 SAFETY (A) (B) (C) (D) Accident and injury free operations shall be the goal of the Employers and Employees. To this end the Employer and Employee will, to the best of their ability abide by, and live up to the requirements of the State and Federal Construction Safety Codes and Regulations. To this end the Employer shall from time to time issue rules or notices to his employees regarding on-the-job safety requirements. Any Employee violating such rules or notices may be subject to disciplinary action. No Employee may be discharged for refusing to work under unsafe conditions. The Labor User Contractor (LUC) Committee Joint Labor-Management Uniform Drug/Alcohol Abuse program is incorporated herein by reference and is made a part of this collective bargaining agreement. If a contractor needs to adopt changes to the LUC program to meet the demands of a client, the union and contractor agree to make the necessary changes. The Employer may randomly drug and alcohol test within compliance of State and Federal Statutes. All disputes under this section will be referred to Article 10 Settlement of Disputes. (A) (B) (C) (D) (E) (A) ARTICLE 17 LOCKOUTS, PICKETS AND STRIKES The Union and the Employer agree that there will be no strike, work stoppage, walkout or other interference with the Employer s business affairs by the Union or members thereof, and there shall be no lockout during the life of this Agreement without first giving the Employer fortyeight (48) hours notice, and sending the dispute through the procedures established in Article 10. The Employer shall not require any employee to go through a primary picket line or banner to work. It shall not be a violation of this Agreement and it shall not be cause for discharge or disciplinary action in the event an employee decides not to cross a primary picket line or banner. The Union agrees there shall be no cessation of work or any recognition of picket lines of any Union, without first giving notice to the Employer. The Union will not honor any Jurisdictional Banner. Spread-work tactics, slow down, stand-by crews, forcing of overtime is condemned by both parties. ARTICLE 18 SUBCONTRACTOR CLAUSE If an Employer subcontracts work to be performed at the job site, the Employer shall require the Subcontractor to sign a Subcontract Agreement containing the following provisions: 14

16 (B) (A) (B) (C) (D) (E) (F) The Subcontractor agrees to comply with the provisions relating to Wages, Health & Welfare and Premium Pay of the Current Collective Bargaining Agreement entered in between the Millwright Contractors and Millwright Local #1348, of the United Brotherhood of Carpenters and Joiners of America and the North Central States Regional Council of Carpenters, for the duration of such prime Contractor or Employer s project. This Agreement of the Subcontractor to so comply shall apply: 1. Only to whose Collective Bargaining Agreements which cover classifications of work in which the Subcontractor has Employees working on the projects; and 2. Only to work performed on the project. The Employer shall require the Subcontractor to sign a Subcontract Agreement containing the foregoing provisions only: 1. With respect to work located in territorial area covered by the terms of the respective Union Agreements; and 2. Where the Subcontractor does not represent to the Employer that he has an established building trades collective bargaining relationship covering the affected classification of work. ARTICLE 19 PAYDAY AND WAGE PAYMENTS Payday-Wages shall be due and payable weekly, and not more than seven (7) days held back. When the Employee is laid-off or discharged, the Employer shall make every reasonable effort to pay at the time of lay-off or discharge. If this is not feasible, a paycheck shall be mailed not later than one (1) working day after lay-off or discharge for the amount due. When an Employee voluntarily quits, the Employer shall mail a paycheck on the next regular scheduled payday. Check Stubs: The Employer agrees to provide the following information on Employees check stubs: Straight time hours worked; Overtime hours worked; Other deductions and Employer s firm name. The employee shall be given two (2) hours notice prior to lay-off, whenever possible. When an employee has executed an authorization, the employee may direct deposit payroll checks to an account designated by the employee. ARTICLE 20 SAVING CLAUSE This Agreement is intended to be in conformity with all applicable and valid State and Federal Laws, Rules, and Regulations. Any conflict between the provisions of this Agreement and the terms of any such laws and regulations shall cause the provisions of this Agreement so in conflict to be superseded or 15

17 annulled but shall not supersede or annul the terms and provisions of this Agreement which are not so in conflict. ARTICLE 21 DURATION (A) This Agreement covers the entire understanding between the parties hereto. (B) All terms of this Agreement, except cost items, shall take effect on settlement. Cost items are effective on the date when Employees return to work. (C) This Agreement shall be in full force and effect through April 30, 2015 (D) Any party has the right to terminate or amend this Agreement by giving notice to the other party sixty (60) days before the expiration of this Agreement. Failure to give such notice shall cause this Agreement to be renewed automatically for a period of twelve (12) months. (E) In the event such written notice is given and a new Agreement is not signed before the expiration of this Agreement, then this Agreement shall continue in force until a new Agreement is signed, negotiations are formally broken off, or until a strike or lockout occurs. (F) It is further agreed that any part of the wage rate may be allocated to increase contributions to the Health, Defined Benefit (D.B.) Pension, Defined Contribution (D.C.) Pension, or Apprenticeship and Training Funds, or to increase Working Dues Deduction or Vacation Fund Deductions. ARTICLE 22 HOURS OF WORK, SATURDAY AND SUNDAY SHIFTS (A) (B) (C) Regular working hours are to be between 8:00 a.m. and 4:30 p.m. If mutually agreed between Employer and Employee, working hours may be adjusted up to one (1) hour earlier to promote job efficiency. The Union shall be notified of such adjustment in starting time by the Steward and such adjusted starting time shall be scheduled for at least three (3) consecutive working days in order to operate without overtime pay. One and one-half (1 ½) times the regular rate of pay shall be paid for any and all work in excess of eight (8) hours on any regular work day and for all work in excess of forty (40) hours in a regular work week, and for the first ten (10) hours of work performed on Saturday. All hours worked in excess of ten (10) hours in any regular workday and after ten (10) on Saturday, shall be paid two (2) times the regular rate of pay. There shall be no pyramiding of overtime. All work performed on Sunday or the following holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, shall be paid for at the rate of two (2) times the regular rate of pay. When any of the holidays to be observed falls on Saturday, then the proceeding Friday shall be observed as such. If it falls on Sunday, then the following Monday shall be celebrated as such by employees covered by this agreement. It is 16

18 (D) (E) (F) understood however, that Mondays set as such holidays by the Federal Government, shall be observed as such. When shifts are worked, eight (8) hours of continuous employment shall constitute the first shift. Seven (7) hours shall constitute the second shift and seven (7) hours shall constitute the third shift. All Employees who work the second and third shift shall receive eight (8) hours pay. No shift shall be worked for less than five (5) days without paying premium pay for all hours worked on second and third shifts. Employees shall receive full-time pay for all the time spent in the service of the Employer. There shall be no split shifts. An Employee shall be entitled to one (1) week vacation without pay after he gives the Employer two (2) weeks written notice. ARTICLE 23 CALL IN PAY (A) When an Employee is called to work, he shall receive two (2) hours pay if not put to work, but he must remain on the job site in order to receive this two (2) hours pay. (B) If an Employee is called to work and is put to work, he shall receive a minimum of four (4) hours pay, but he must remain on the job site. (C) These provisions however, are not to be effective when work is unable to proceed because: (1) Railroads or Common Carriers fail to make deliveries as scheduled, (2) The Owner, Engineer or Architect refuses to permit work, and (3) Acts of God, including weather conditions, will not permit work. ARTICLE 24 STEWARD (A) (B) (C) It shall be the right of the North Central States Regional Council of Carpenters to have a steward on every job where members are employed. The North Central States Regional Council of Carpenters shall immediately notify the Contractor in writing of the identity of the steward as soon as his identity is determined. The steward shall not interfere with normal construction operation while carrying out the duties as steward. The steward shall have the first chance to work any overtime on his crew if qualified to perform the work The Contractor may lay off the steward because of work shortage within the company, at such time the North Central States Regional Council of Carpenters may appoint a replacement steward from among the remaining members on the jobsite. No steward shall be laid-off or discharged without forty-eight (48) hours notice to the Regional Council and the steward. 17

19 ARTICLE 25 CONDITIONS OF EMPLOYMENT (A) (B) (C) No Employee shall be required, as a condition of employment to furnish his own truck. The Employer shall provide sanitary toilet facilities on the job site or make arrangements for such in a nearby building which has these facilities. The Employee shall be entitled to a meal break of thirty (30) consecutive minutes in each regular workday. If an Employee is required to work five (5) consecutive hours without a meal break, he shall be compensated for the thirty (30) minutes so worked at the applicable rate of pay. This is not to be construed to deny any Employee time to eat his meal. In addition to the above break, the Employee shall be entitled to a break in the forenoon and afternoon but shall not otherwise hinder the progress of the job. The forenoon and the afternoon break shall not exceed ten (10) minutes each from the time the Employee stops working until he resumes work, and shall be taken in close proximity to the Employee s work station. On shift work this schedule shall also apply. On jobs scheduled ten (10) hours or more, there will be a ten (10) minute break after eight (8) hours ARTICLE 26 TOOLS The Contractor shall provide a proper tool shed for the Millwrights to store their tools. A place shall be provided with sufficient quarters to keep their lunch and eat in, this place to be adequately heated in cold weather. While tools are in the care, custody, and control of the Employer, the Employer shall indemnify each Employee for tool losses caused by, fire, wind, and burglary by forcible entry up to a maximum of $ provided that the Employee has submitted a detailed inventory of such tools prior to the time of loss. The foregoing shall not be construed to prohibit the Employer from indemnifying an Employee for a loss in excess of $ in the event the Employer has specifically requested the Employee to supply such tools and the Employer is satisfied that the value of the tools exceeds $ However, indemnification in excess of $ is within the discretion of the Employer. The Contractor shall furnish all power tools. ARTICLE 27 FOREMAN When four or more Millwrights are employed on any one job, one of the journeymen shall be designated as foreman. When there is an employee designated as a Foreman, he shall be a working foreman until the fifth (5) Millwright is employed. The crew size under the direction of any one foreman shall be any number of workers required to safely perform the work and may be increased or decreased at the discretion of the Employer. The Employer recognizes that there are limitations as to the number of workers the foreman can efficiently supervise and still work with his tools. 18

20 When Millwrights are working at multiple sites in the same complex for the same customer, it is not necessary to have a foreman for each site. A Millwright crew will consist of 10 Millwrights and a foreman. A General Foreman shall be designated for every 4 crews of Millwrights. Foreman rate: General Foreman rate: $2.25 over Journeyman scale $1.75 over Foreman rate ARTICLE 28 SUBSISTENCE (1) Subsistence pay shall be paid to the Employees at the rate of $30.00 for each working day on the job, on jobs located more than 40 miles from the nearest point of the city limits of Virginia or Duluth. (2) Provided, that on jobs located outside of the 40 mile perimeter, subsistence shall not be paid to any Employee living within 40 miles of the job site. (3) Provided, further, that where Employees are eligible to receive subsistence under (1) and (2) above are required to report to work, but are unable to work because of inclement weather or other conditions beyond the control of the Employer, the Employee shall nevertheless receive subsistence pay for that day. (4) Provided, further, that when a holiday falls on a Tuesday, Wednesday, or Thursday, the Employee is eligible to receive subsistence pay under (1) and (2) above shall receive subsistence pay for that day. (5) Provided, further, that mileage is determined by the distance traveled on the most direct route by road. (6) Home of record is defined as the Employee s permanent domicile as recorded on official Union records, subject to verification by the Union. It is the Employees responsibility to establish his home of record to the satisfaction of the Employer. ARTICLE 29 WAGES Taxable Wkg MW Effective Date Gross Dues Vac Pension Annuity H & W Training Fund Total May 1, 2010 $ % $2.56 $5.00 $1.50 $6.50 $.40 $42.60 July 25, 2011 $ % $2.56 $5.00 $1.50 $6.60 $.40 $.05 $43.60 May 1, 2012 $.70 increase to be allocated May 1, 2013 $.70 increase to be allocated May 1, 2014 $.70 increase to be allocated ** Note: The Taxable wage that is in the above article is the rate that is subject to the overtime rates, DO NOT SUBTRACT THE VACATION AMOUNTS BEFORE WORKING DUES ARE CALCULATED. ** Note: Working dues are deducted from the Total Taxable wage rate; and is not an additional employer contribution and is subject to FICA and income tax withholding. 19

21 Example: Hours worked x taxable wage = total gross x 3% = working dues to be deducted after tax withholding. ** Note: Vacation is deducted from the Total Taxable wage rate; and is not an additional employer contribution and is subject to FICA and income tax withholding. Example: Vacation amount x Hours = vacation deduction after tax withholding Mail contributions to: PENSION FUND, WORKING DUES & MILLWRIGHT FUND North Central States Regional Council of Carpenters Benefit Funds P.O. Box 4002, Eau Claire WI NORTH CENTRAL CARPENTERS SUPPLEMENTAL RETIREMENT PLAN, HEALTH FUND, VACATION & TRAINING FUND Zenith Administrators, Inc. 750 Torrey Bldg 314 W Superior St. Duluth, MN ARTICLE 30 WORK PRESERVATION The parties acknowledge that due to market conditions within the Construction Market, wage reductions may be necessary to enable the Contractor and the Union to obtain work. Such reductions are available upon mutual agreement between labor and management. If the Union agrees to such reductions, they shall be made available to all signatory contractors bidding or negotiating the project. It is the Union s sole discretion to determine whether wage reductions are put into effect. ARTICLE 31 MILLWRIGHT FUND UBC Millwrights Labor-Management Industry Promotion Fund - In addition to any contributions otherwise called for herein, the parties agree that the Employer shall make a contribution of five ($.05) per hour worked for each millwright employee covered by this agreement to the UBC Millwrights Labor- Management Industry Promotion Fund ("Millwright Fund"). Payment shall be made to the Millwright Fund or to such collection agent as is designated by the Millwright Fund on or before the 20 th day of the month following the month of the work performed. The Employer hereby agrees to be bound by the Agreement and Declaration of Trust for the Millwright Fund as it exists and as it may be amended restated, and to such rules, regulations or other governing documents adopted pursuant to such Trust. 20

22 JURISDICTION MAP MILLWRIGHTS LU #

23 NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS MILLWRIGHT AGREEMENT ACCEPTANCE OF AGREEMENT Date The Undersigned Employer hereby agrees to abide by the terms and conditions of the Agreement between the North Central States Regional Council of Carpenters, Local #1348 Area and the on all work covered by this Agreement. This Agreement is to expire April 30, Receipt of a copy of the North Central States Regional Council of Carpenters, Local #1348 Area Agreement is hereby acknowledged. EMPLOYERS SIGNATURE COMPANY ADDRESS PRINT EMPLOYER NAME FEDERAL ID NUMBER BONDING COMPANY CITY STATE ZIP WORK COMP INSURANCE CARRIER PHONE NUMBER FAX NUMBER ACCEPTED BY NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS MILLWRIGHT LOCAL #1348 FIELD AGENT ST STREET NORTH VIRGINIA, MN (218) NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS 700 OLIVE STREET ST. PAUL, MN (651) PLEASE SIGN AND KEEP THIS PAGE 22

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