MARKET RECOVERY WORKING AGREEMENT FOR INTERIOR SYSTEMS CONSTRUCTION NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS

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1 MARKET RECOVERY WORKING AGREEMENT FOR INTERIOR SYSTEMS CONSTRUCTION NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS NEBRASKA Including Lyon, Osceola, Dickinson, Emmet, Sioux, O Brien, Clay, Palo Alto, Plymouth, Cherokee, Buena Vista, Woodbury, Ida, Sac, Monona, Crawford, Harrison, Shelby, Audubon, Pottawattamie, Cass, Mills, Montgomery, Fremont and Page Counties in Iowa and Union County in South Dakota OF THE UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA 6/1/2011 5/31/2014

2 PREAMBLE AND DECLARATION OF PRINCIPLES This Agreement shall cover all Interior Systems Construction work traditionally performed by the Employers and assigned to employees under this agreement or predecessor Agreements, anywhere within the geographical jurisdiction of this Agreement including but not limited to distribution, assembly, disassembly, application, and installation of any and all construction products and systems regardless of trade name or craft claimed jurisdiction. Interior Systems Construction work shall be defined as any work above grade involved in the erection, remodeling, interior and or exterior finishing of a structure. Should the Employer desire to engage in construction other than referred to above, the Employer agrees to abide by the terms, conditions, and wage schedule that is currently in effect with the Union, copies of such agreements and wage schedules have been provided to the Employer who consents to such applicable agreements. DESIGNATION OF PARTIES Any work outside the state of Nebraska and Iowa within the North Central States Regional Council of Carpenters jurisdiction, the contractor must sign and abide by that appropriate area agreement. THIS AGREEMENT, is entered into this day of, 20, by and between COMPANY NAME: ADDRESS: CITY: STATE and ZIP CODE: hereinafter referred to as the "EMPLOYER", and the of the United Brotherhood of Carpenters and Joiners of America, hereinafter referred to as the "Union". The Union shall represent all Carpenters and related crafts and classifications for all purposes regarding this Agreement. ARTICLE I DURATION OF AGREEMENT Section 1.1 Duration Dates. This Agreement shall become effective on June 1, 2011 and shall continue in force until midnight, May 31, 2014, and shall automatically continue in effect from year to year thereafter unless either party gives ninety (90) days written notice to the other prior to the expiration date of their desire to open or terminate the Agreement for modifications, whereupon it shall continue past the initial period of the contract from day to day until either party gives five (5) days written notice to the other of its termination. Section 1.2 Union Recognition. The Union has claimed and the Employer is satisfied and acknowledges the Union represents a majority of the Employers employees in the bargaining unit covered by this Labor Agreement. The Employer hereby recognizes the Union as the exclusive bargaining agent under Section 9(a) of the National Labor Relations Act for all employees who perform work within such collective bargaining unit for all present and future job sites within the geographical jurisdiction covered by this Agreement. 2

3 ARTICLE II UNION SECURITY Section 2.1 Probation Period. All new employees who are not pre-existing union members before the time of hire shall be on a thirty (30) day probation period, whereby, no fringe benefits shall be paid. If the new employee completes his/her probation period, then benefits and deductions shall be in accordance with the wage chart retroactive to the first day of employment. Section 2.2 Authorized Deduction. The Employer agrees to recognize and comply with any voluntary and properly signed authorization cards of its employees requesting the Employer to make deductions from wages for the amount of any dues, working dues, or initiation fees. The amount of money to be deducted shall be determined by the Union, from time to time and the Union shall notify the Employer in writing as changed by the Union of the amount to be deducted on a weekly payroll basis and remitted to a depository designated by the Union by the fifteenth of the month following the month where such deductions are made. ARTICLE III UNION REFERRAL The Union and employers agree to this referral article in order to efficiently dispatch and utilize labor based on the skills and experience needed by the employers. The employers reserve the right to refuse any referral. (a) (b) (c) The Employer shall notify the Union of opportunities for employment, and the opportunity to refer qualified applicants. The Employer shall be the sole judge of and have the right to determine the number of employees required on any job, or any portion of the work being done by the Employer. Neither the Union nor the Employer shall discriminate in the referring or hiring of employees because of age, race, color, religion, sex, or national origin. ARTICLE IV WORKING CONDITIONS Section 4.1 Safety Equipment. Where safety equipment is required by the circumstances under which the employee is working, it shall be the responsibility of the Employer to furnish such equipment at no cost to the employee. Section 4.2 Discharge for Cause. The Employer reserves the right to discharge an employee for cause, subject however, to the right of arbitration as provided in Article VII. Grievances arising as a result of discharge must be delivered to the Employer in writing within ten (10) days of the date of discharge. Employees not complying with this requirement will forfeit their right to prosecute their grievance. All employees discharged shall receive pay in full at the next normal pay period. The Employer and the Union agree that chronic and/or unexcused absenteeism or tardiness is undesirable and must be controlled. Employees that develop such a record of absenteeism and/or tardiness may be terminated. 3

4 Section 4.3 Subcontracting of Carpentry Related Work. With regard to work traditionally having been performed by the Employers and assigned to employees under this Agreement or its predecessor Agreements on the job site, if the Employer subcontracts such work to a subcontractor, the Employer shall require that such subcontractor be signatory to a current collective bargaining agreement with the Union covering such work. The Union agrees that subcontracting between and among contractors signatory to other Carpenter Agreements with the Union shall not be a violation of this Agreement or those other Carpenter Agreements. This provision shall be enforceable through Article VII, Settlement of Disputes. In addition to any amount payable to the joint Employer/Union Trust Funds covering pensions, health and welfare and vacation, and/or Joint Apprenticeship Program, an arbitrator enforcing this Agreement shall have authority to award other damages to be payable to one or more of the above Employer/Union Trust Funds. Section 4.4 Management Rights. The Employer has the complete authority for the management of the workforces on all work performed under this Agreement, utilize any work methods, procedures or techniques regardless of source, manufacturer or designation so long as such work methods, procedures or techniques, materials, apparatus or equipment does not jeopardize the safety and/or health of employees working under this agreement. Section 4.5 Job Injury. Employees injured on the job site shall suffer no loss of time while being tended to, either at the job site or other facility during the day of the accident or injury provided the nature to the injury or accident prevents the employee from returning to work and is verified by the care giver. The Employer shall carry workers compensation insurance, unemployment insurance and pay social security taxes on employees covered by this Agreement. Section 4.6 Membership Training. The Employer and Union recognize the importance of member training, and agree to fully cooperate with Employers in a concerted effort to provide a highly skilled workforce in which to compete in the market place. The Union and Employers agree to promote a minimum of sixteen (16) hours of training per calendar year. Section 4.7 Union Representatives and Stewards. Authorized representatives of the Union shall have access to all jobs. The Union may appoint Stewards who will not suffer discrimination based on the discharge of normal steward duties. Section 4.8 Tools. The Employer must provide power tools and the Employer may not require as a condition of employment that an employee furnish his/her own truck. ARTICLE V HOURS OF WORK AND PAYMENT OF WAGES Section 5.1 Hours of Work. Contractors may choose one of the two workweek options before beginning a project. (a) The normal work day shall be considered eight (8) hours with an unpaid thirty (30) minute break at midpoint. Any time worked over a ten (10) hour work period is considered overtime. Night work is not considered overtime. The normal work week shall consist of forty (40) hours. Any hours worked over the normal forty (40) hour work week is considered overtime. The contractor shall endeavor to maintain the work week Monday through Friday. 4

5 Hours worked in excess of ten (10) hours per day, for which overtime is paid, shall not be counted in computing hours worked in any one (1) week for the purpose of determining overtime due for work in excess of forty (40) hours in such week. (b) Employers will not object to an employee taking a coffee break in the morning if such break does not cause loss of work time in excess of ten (10) minutes. When ten (10) or more hours are worked in a day, a second ten (10) minute coffee break shall be taken as near as possible to mid-shift, or at a time mutually agreed upon by affected employees. Section 5.2 Overtime. All overtime shall be paid at the rate of time and one-half except for Sundays and holidays when overtime rate shall be double time. Section 5.3 Holidays. The holidays recognized by this Agreement and calling for overtime for any work performed are: New Year's Day, Memorial Day, Fourth of July, Thanksgiving Day, Christmas Day and Labor Day. No work shall be done on Labor Day except for protection of life or property and pay for such work shall be paid at the overtime rate which is double time for holidays. Holidays falling on Sunday shall be observed on the following Monday, and those falling on Saturday on Friday, and pay for work on these days shall be at the overtime rate which shall be double time. Section 5.4 Payment of Wages. Employers shall pay once each week on a calendar basis and shall be allowed three (3) working days from the end of the payroll period to the date on which payroll checks are, at the Employer s option, either distributed on the job or placed in the U.S. Mail postmarked within the time limit specified herein, or by direct deposit. The Union shall have the right to examine payroll records of an employee in the case of a dispute over hours and wages. The Employer and the Union shall work together to resolve wage and hour disputes arising from this agreement or state or federal law. Section 5.5 Wages. Effective June 1, 2011 through May 31, 2013 DC Ed./ Classification % Base Vac. Dues Health Pens. App. UBC Total Journeyman 100% $ $0.00-2% $5.63 $1.00 $0.30 $0.10 $25.53 Apprentice % $ $0.00-2% $5.63 $0.75 $0.30 $0.10 $24.36 Apprentice % $ $0.00-2% $5.63 $0.75 $0.30 $0.10 $23.43 Apprentice % $ $0.00-2% $5.63 $0.50 $0.30 $0.10 $22.26 Apprentice % $ $0.00-2% $5.63 $0.50 $0.30 $0.10 $21.33 Apprentice % $ $0.00-2% $5.63 $0.50 $0.30 $0.10 $20.41 Apprentice % $ $0.00-2% $5.63 $0.25 $0.30 $0.10 $19.23 Apprentice % $ $0.00-2% $5.63 $0.25 $0.30 $0.10 $18.31 Apprentice % $ $0.00-2% $5.63 $0.25 $0.30 $0.10 $17.38 Pre-Apprentice 55% $ $0.00-2% $5.63 $0.00 $0.30 $0.10 $16.21 Pre-Apprentice 50% $ $0.00-2% $0.00 $0.00 $0.30 $0.10 $ 9.65 Any additional health increases on June 1, 2012 are to be determined by the Union and will be a deduction from the base rate or the Defined Contribution Pension or a combination of both. 5

6 Effective June 1, 2013 DC Ed./ Classification % Base Vac. Dues Health Pens. App. UBC Total Journeyman 100% $ $0.00-2% $5.63 $1.25 $0.30 $0.10 $26.13 Apprentice % $ $0.00-2% $5.63 $1.00 $0.30 $0.10 $24.94 Apprentice % $ $0.00-2% $5.63 $1.00 $0.30 $0.10 $24.00 Apprentice % $ $0.00-2% $5.63 $0.65 $0.30 $0.10 $22.70 Apprentice % $ $0.00-2% $5.63 $0.65 $0.30 $0.10 $21.76 Apprentice % $ $0.00-2% $5.63 $0.65 $0.30 $0.10 $20.82 Apprentice % $ $0.00-2% $5.63 $0.30 $0.30 $0.10 $19.53 Apprentice % $ $0.00-2% $5.63 $0.30 $0.30 $0.10 $18.58 Apprentice % $ $0.00-2% $5.63 $0.30 $0.30 $0.10 $17.64 Pre-Apprentice 55% $ $0.00-2% $5.63 $0.15 $0.30 $0.10 $16.65 Pre-Apprentice 50% $ $0.00-2% $0.00 $0.15 $0.30 $0.10 $ 9.98 Note: Working Dues Deduction is deducted from hourly wage rate; it is not an additional Employer contribution and is subject to F.I.C.A. and Income Tax Withholding. Working Dues Deduction percentage is based on gross wages unless changed by the Regional Council Activity. Vacation is deducted from the hourly wage rate; it is not an additional Employer contribution and is subject to F.I.C.A. and Income Tax Withholding. Any additional health increases on June 1, 2013 are to be determined by the Union and will be a deduction from the base rate or the Defined Contribution Pension or a combination of both. ARTICLE VI CLASSIFICATIONS: APPRENTICES, PRE-APPRENTICES AND NEW JOURNEYPERSONS Section 6.1 Apprenticeship. a) The employment of apprentices shall be encouraged and promoted, and all employment will be governed by area standards. b) Apprentices shall be indentured under Nebraska/Iowa law, including mandatory attendance at school and their employment shall be in accordance with the Department of Labor and Industry governing carpenter-apprentices. c) The ratios of journeyworkers to apprentices as set forth in the Apprenticeship Standards are hereby adopted. d) The Employer and the Union agree to use every legal means to keep apprentices steadily employed actually learning the trade. When necessary, apprentices may be transferred from one Employer to another. e) 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 the training sessions, and they shall report the layoffs as having been taken under the terms of the collective bargaining agreement to attend apprentice training school. The Union, Employer, and Apprentice agree to take all reasonable steps to facilitate the apprentice s receipt of unemployment benefits when attending mandatory training. 6

7 Section 6.2 Pre-Apprentice. a) The established pre-apprenticeship percentage is calculated on the normal hourly base wage rate. b) The company wide ratio of apprentices to journeymen shall be one to one. c) The ratio of pre-apprentices is two pre-apprentices for each indentured apprentice employed by the Contractor. d) A pre-apprentice will not displace a journeyperson or indentured apprentice. e) Pre-apprentices will not work unsupervised. If legal requirements for a particular job do not allow for wage payments under the pre-apprentice category, then the pre-apprentice category may not be used on that job. f) A pre-apprentice can be placed in any of the percentage tiers of the pay schedule based on his/her experience or qualifications. Section 6.3 Pre-Apprenticeship Options. 1) Any time before or at the end of two (2) years, the pre-apprentice may enter the four (4) year apprenticeship program. 2) If the pre-apprentice does not enter the apprenticeship program, he/she may advance according to the wage chart and can be frozen when the eighty percent (80%) wage rate is reached. Section 6.4 Pre-Apprentice and Apprentice Wage Schedule. % MONTHS STARTING 50% % years OPTION - Indenture 4 year 60% Apprenticeship Program 65% % % OPTION - Non-indentured 80% years pre-apprentice may be frozen at pre-apprentice 80% rate 85% % JOURNEYPERSON 100% 72-6 years Apprentices start at the 60% of the journeyperson wage rate and pre-apprentices at the 50% rate. Apprentice progression schedule is based on 40 classroom hours per quarter for 4 years totaling 640 hours. Concurrent to this classroom training apprentices must complete 700 On-the-Job (O.J.T.) training hours per 6 month period for 4 years totaling 5600 O.J.T. hours. 7

8 Section 6.5 New Journeypersons. After the Employer has exhausted the referral hall, the Employer may hire carpenters at full journeyperson wages and benefits. The Employer may hire key personnel without first exhausting the referral hall. ARTICLE VII GRIEVANCES, DISPUTES AND ARBITRATION a) There shall be established a Joint Trade Board, which shall have charge of the enforcement and interpretation of the working agreement, as well as duties specifically mentioned herein. b) Each grievance shall be deemed to be waived unless submitted in writing to the parties for resolution within (10) days after the event giving rise to the grievance occurs. The parties to a dispute shall endeavor to resolve the dispute prior to a meeting of the Joint Trade Board. If the parties are unable to resolve the dispute, the Joint Trade Board shall meet to settle the dispute. They shall meet no less than thirty (30) days after any written notice of a grievance to settle a dispute. The parties to a dispute shall be notified no less than 14 calendar days prior to a meeting of the Board. The parties to a dispute may mutually agree to waive any or all of the deadlines contained in this paragraph. c) The Union and the signatory contractors to this Agreement shall elect or appoint three (3) members each, and such members shall serve until their successors have been appointed. The Joint Trade Board shall elect a Chairperson and a Secretary from the committee. The duties of the Chairperson shall be to conduct all meetings of the committee. The duties of the Secretary shall be to keep a complete record of the minutes of meetings and correspondence, and shall notify Board members of any special meeting called by the Union and/or contractors. The Secretary shall furnish each member with a legible copy of all minutes and correspondence. The Board may unanimously agree to appoint a third-party Facilitator to carry out the note taking or meeting-chair duties of either or both of the officers under the direction of the Board. The Facilitator may be present in board deliberations but shall have no voting power on issues that come before the Board. The Facilitator is subject to removal at any time by any member of the Joint Trade Board. d) Decisions or orders of the Joint Trade Board shall be signed by the Chairperson or Secretary and distributed to the parties to the dispute. Such decisions and orders shall be final and binding. e) If the Joint Trade Board is unable to arrive at a mutually agreeable solution to a problem brought before it, or otherwise unanimously agrees, it may select a neutral arbitrator to hear the case and issue a decision, which shall be final and binding on all parties involved. The neutral arbitrator shall be selected by the Joint Trade Board. In the event the Joint Trade Board is unable to agree on a neutral arbitrator within ten (10) days, the arbitrator shall be selected by and under the rules of the Federal Mediation Service. The decision of the arbitrator shall be final and binding on signatories to the Agreement who are parties to the dispute; provided, however, that the arbitrator shall have no power to add, delete or modify any provisions of this Agreement. Each party shall pay the fees and costs of its own representatives and witnesses. The costs and fees of the neutral arbitrator shall be equally divided between the parties. This article shall not be applicable to jurisdictional disputes nor to the non-payment of wages or fringes, except that this article shall apply to wage disputes. 8

9 ARTICLE VIII PAYMENT OF WAGES AND FRINGE BENEFIT FUNDS Section 8.1 Trust Agreements and Compliance with Law. All payments required to be made to respective funds as set forth in this Agreement shall be made and transmitted in accordance with the rules and regulations established by the Trustees of the particular fund and all forms required to be completed shall be so completed. As regards, the enforcement of collections and the payment of the required amounts into the funds the parties shall be bound by the determinations of the Trustees of establishing the various funds shall be in accordance with the requirements of the National Labor Relations Act, as amended, and any other Federal laws pertaining to the subject matter relative to each fund. All payments shall be made for all such hours worked by covered employees commencing with the first day of employment as provided by Article II, Section 2.2. All payments shall be made no later than the fifteenth (15 th ) day of the month following the month for which payment is made. Section 8.2 Trust Agreement. The parties to this Agreement, and all Employers covered thereby, agree to be bound by all the terms of the respective Trust Agreements governing the establishment, administration, and operation of the Funds as amended from time to time, and further agree to be bound by all of the actions, rules, and regulations heretofore and hereafter adopted by the respective boards of Trustees in accordance with the Trust Agreements. The parties to this Agreement and all Employers covered thereby, hereby accept as Trustees, the Trustees appointed under and in accordance with each such Trust Agreement. The Employers and the Union hereby ratify all of the actions already taken or to be taken by such Trustees, provided that action is within the scope of the Trustees authority and not in conflict with this Agreement. The Employer agrees to contribute every month, not later than the 15 th 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, and Trustees shall represent the interests of the Plan participants. Section 8.3 Delinquent Payments. In the event an Employer becomes delinquent in the payment of the sums required to be paid to the Funds as provided in this Article, such Employer shall become obligated for all claims that may arise during the period of delinquency. In addition, effective 96 hours after the Employer s receipt of a Certified Delinquent Letter, such a delinquent Employer shall become liable for the payment of liquidated damages up to 20% and interest at rates established by the Trustees. In the event legal or administrative action becomes necessary to recover sums due the Funds, the delinquent Employer shall be required to pay liquidated damages, interest, audit costs, and actual attorney fees and court costs incurred in the collection process. The Union shall also have the right to take economic action, including but not limited to the right to refuse to supply men; to enforce the rights enumerated in this Article on behalf of the Union and the Trustees. Section 8.4 Audit Procedures. The Trustees of the Funds may for the purpose of collecting any payments required to be made to such Trust Funds under this Agreement, including liquidated damages, interests and costs, and for the purpose of enforcing rules of the Trustees concerning the inspection and audit of payroll records, seek any appropriate relief and shall not be required to invoke or resort to the grievance or arbitration procedure otherwise provided in this Agreement. 9

10 Section 8.5 Fringe Funds. During the life of this Agreement, all Employers covered by this Agreement shall pay the contributions required to be made to the Funds listed in accordance with this Agreement to the following funds via their respective depositories. Employers shall make arrangements for home funding when employees are working away from home. Such contributions shall be sent together with the required remittance reports to the following fund offices: North Central States Regional Council of Twin City Carpenters Benefit Funds Carpenters Benefit Funds Wilson McShane, Administrator P.O. Box Metro Drive, Suite 500 Eau Claire, WI Bloomington, MN / / Addresses and designated funds are subject to change by Trustee action or by designation of a new Fund not named herein. Section 8.6 Carpenters International Training Fund. The Employer(s) and the Union recognize the need for the quality training of apprentices and journeypersons to meet the industry s labor needs and to provide safety and health training and education to enable Union workers to remain healthy and productive. In addition to all contributions otherwise called for herein, the parties agree that the Employer shall make a contribution ten cents ($0.10) per hour worked for each employee covered by this Agreement effective May 1, 2011 for the Carpenters International Training Fund. Payment to the Fund shall be made on or before the fifteenth (15 th ) day of the month following the month of the work performed and shall be remitted in accordance with the instructions of Trustees of the respective funds. The Employer hereby also agrees to be bound by the Trust Indenture Agreement as now stated or as later restated or amended applicable to each of the two (2) respective United Brotherhood of Carpenters Trust Fund described above. On request, each Employer and/or Union shall receive a copy of the Funds annual reports. ARTICLE IX LABOR MANAGEMENT ISSUES Section 9.1 Drug/Alcohol Abuse Program. The and the Employers agree to meet and confer in order to establish a Substance Abuse Testing and Assistance Program, such program may be established at any time before the expiration of this Agreement and shall be administered through an employer contribution toward a joint labor-management trust to administer the Program under a Trust Agreement. Under no circumstances will this Article or any negotiations, signing, or implementation of the Program pursuant to this Article be considered an opener or re-opener of the Agreement. Section 9.2 Labor Management Group. A Labor Management Group will be formed and will meet every six (6) months to address industry issues. Section 9.3 Prevailing Wage Reporting. The Employer agrees to work with the Union as it requests payroll and jobsite information in order to fulfill the parties shared interest of completing and submitting prevailing wage reports to the States of Nebraska and Iowa. 10

11 ARTICLE X 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 annulled but shall not supersede or annul the terms and provisions of this Agreement which are not so in conflict. ARTICLE XI NATIONAL OR STATE HEALTH INSURANCE In the event National or State Health Insurance becomes law, this Agreement shall be open for the sole and exclusive purpose of apportioning the amount of then-current hourly contribution required by this Article between National or State Health Insurance, Health and Welfare funds listed within this Agreement, and wages. The reapportionment shall be made in accordance with agreement reached between the Trustees of the Funds and the negotiating committees of the employers and the Union. 11

12 AGREEMENT AND SIGNATURE PAGES IN WITNESS WHERE OF, the parties have executed this Agreement this day of,. NORTH CENTRAL STATES REGIONAL COUNCIL OF CARPENTERS Print Name of Contractor BY Signature of Business Representative BY Signature of Contractor Representative Print Name of Business Representative Print Name of Contractor Representative Address of Union Address of Contractor City/State/Zip Code City/State/Zip Code Telephone Number Telephone Number Fax Number Fax Number Worker s Compensation Number Federal Employer ID Number (FEIN) Unemployment Compensation Number Bonding Company Bonding Number 12

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