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Collective Bargaining Agreement COLLECTIVE BARGAINING AGREEMENT As Of June 26, 2010 Between SPIRIT AEROSYSTEMS, INC. and INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO and DISTRICT LODGE 70 and LOCAL LODGE 839 1 Page 1 1 Page 2 TABLE OF CONTENTS PREAMBLE …………………………………………………………………… 9 Cooperative and Collaborative Relationship ………………………….. 9 Regular Meetings …………………………………………………………….. 9 PREFACE ……………………………………………………………..…..….. 10 Company and Union Cooperation ………………………….……………. 10 CONTRACT REAFFIRMANCE …………………………………………… 10 ARTICLE 1 - BARGAINING UNIT ………………………………………. 11 Section 1.1. Union Recognition ………………………………….…… 11 Section 1.2. Employees Assigned Away from Primary Location - Unit Identification ………………………………………. 11 Section 1.3. Data Reports ……………………………………………… 11 ARTICLE 2 - PAYROLL DEDUCTION FOR UNION DUES ……….. 12 Section 2.1. Payroll Deduction for Initiation Fees, Union Dues and Equivalent Service Fees ………………….………. 12 Section 2.2. Contributions to Machinists; Nonpartisan Political League ……………………………………………….....…. 12 Section 2.3. Contributions to Guide Dogs of America ……..……. 13 Section 2.4. Employee Benefits Systems Agreement (EBS) …….. 13 Section 2.5. Indemnity …………………………………………..……… 13 ARTICLE 3 - UNION OFFICIALS ……………………………………….. 13 Section 3.1. Union to Furnish List of Stewards ………………..…. 13 Section 3.1(a) Stewards ……………………………………………..…….. 14 Section 3.1(b) Stewards/Layoff ………………………………………..... 14 Section 3.1(c) Steward/Status …………………………………………… 15 Section 3.2. Business Representatives - Access to Plants ……… 15 Section 3.3. Grand Lodge Representative - Access to Plants ….. 15 Section 3.4. Conditions Relating to Access to Plants ……………. 15 Section 3.5. Union Activity During Working Hours …………..….. 16 Section 3.6. Departure from Work Assignment by Stewards to Investigate Complaints or Claims of Grievance ….. 16 Section 3.7. Departure from Work for Union Business …………. 17 Section 3.8. Union Interview of New Employees ………………….. 17 Section 3.9. Security Clearances ……………………………………… 18 ARTICLE 4 - RIGHTS OF MANAGEMENT ………..…………………. 19 Section 4.1. Management of Company ………………...……...……. 19 1 Page 3 TABLE OF CONTENTS ARTICLE 5 - JOB CLASSIFICATIONS AND WAGES ……………… 19 Section 5.1. Job Classifications ………………………………………. 19 Section 5.2. Definitions …………………………………………………. 19 Section 5.3. Jobs Committee ………………………………………….. 20 Section 5.4. Wages ……………………………………………………….. 21 Section 5.5. Rate Range and Wage Increases ……………………… 21 Section 5.6. Performance Bonus ……………………………………… 21 Section 5.7. Job Progression Increases ……………………………… 23 Section 5.8. Long-Term Rewards ……………………………………… 23 Section 5.9. Team Leader ……………………………………………….. 24 Section 5.10. Cost of Living Lump Sum Payment ………………….. 27 Section 5.11. Garnishments …………………………………………….. 29 Section 5.12. Wage Payment Basis …………………………………….. 29 Section 5.13. New Assignments ………………………………………… 29 Section 5.14. Base Rates After Reclassifications …………………… 29 Section 5.15. Rate Retention ……………………………………………. 30 Section 5.16. Recalls from Layoff ………………………………………. 30 Section 5.17. Returns from Leave of Absence ………………………. 31 Section 5.18. Gain Sharing Plan ……………………………………….. 31 ARTICLE 6 - HOURS OF LABOR ………………………………………. 33 Section 6.1. Regular Hours …………………………………………….. 33 Section 6.2. Variable/Alternative Work Schedules ………………. 35 Section 6.3. Variable Work Schedule Procedures ………………… 36 Section 6.4. Shift Premiums …………………………………………… 40 Section 6.5. Work Schedule Premiums ……………………………… 41 Section 6.6. Shift Preference …………………………………………… 41 Section 6.7. Overtime Rate …………………………………………….. 42 Section 6.8. Reporting Pay ……………………………………………… 43 Section 6.9. Call Back Pay ……………………………………………… 43 Section 6.10. Overtime Scheduling ……………………………………. 43 Section 6.11. Paydays …………………………………………………….. 47 ARTICLE 7 - GRIEVANCE PROCEDURE AND ARBITRATION … 47 Section 7.1. Establishment of Grievance and Arbitration 47 Procedure ………………………………………………….. 47 Section 7.2. Employee Grievances …………………………………… 47 Section 7.3. Dismissals, Suspensions, Layoffs, Etc ……………… 49 1 Page 4 TABLE OF CONTENTS Section 7.4. Union Versus Company and Company Versus Union Grievances ……………………………………….. 50 Section 7.5. Retroactive Compensation …………………………….. 50 Section 7.6. Selection of Arbiter - By Agreement …………………. 50 Section 7.7. Selection of Arbiter - From Arbitration Panel ……… 51 Section 7.8. Procedure Where Permanent Panel Arbiter Not Available …………………………………………………… 51 Section 7.9. Arbitration - Rules of Procedure ……………………… 51 Section 7.10. Extension of Time Limits by Agreement ……………. 52 Section 7.11. Agreement Not to be Altered …………………………… 52 Section 7.12. Conferences During Working Hours ………………… 53 Section 7.13. Business Representative, When Not Available, May Authorize Designee ……………………………….. 53 Section 7.14. Signing Grievance Does Not Concede Arbitrable Issue ………………………………………………………… 53 Section 7.15. Union Jurisdictional Claims ………………………….. 53 Section 7.16. Steward-Manager Training …………………………….. 54 ARTICLE 8 - LEAVES OF ABSENCE, BEREAVEMENT, JURY/WITNESS DUTY ………………………………….. 55 Section 8.1. Authorized Leaves of Absence ………………………… 55 Section 8.2. Leave of Absence Condition …………………………… 55 Section 8.3. Military Leave of Absence ………………………………. 55 Section 8.4. Bereavement Leave …………………………………….. 56 Section 8.5. Jury/Witness Duty ………………………………………. 56 Section 8.6. Return from Leave of Absence ………………………… 57 Section 8.7. Reinstatement Following a Medical Termination … 58 ARTICLE 9 - SENIORITY …………………………………………………. 58 Section 9.1. Accumulation of Seniority ……………………………… 58 Section 9.2. Loss of Seniority ………………………………………….. 60 Section 9.3. Reinstatement of Seniority Lost by Reason of Duration of Layoff ……………………………………….. 60 Section 9.4. Nature of Seniority Rights ……………………………… 61 Section 9.5. Transfer to Management ……………………………….. 61 Section 9.6. Elected/Appointed to Union Office ………………….. 61 Section 9.7. Employees on Overseas Assignment ………………. 62 Section 9.8. Probationary Period ……………………………………… 62 1 Page 5 TABLE OF CONTENTS ARTICLE 10 - HOLIDAYS ………………………………………………… 62 Section 10.1. Dates Observed …………………………………………… 62 Section 10.2. Un-worked Holidays …………………………………….. 68 Section 10.3. Worked Holidays …………………………………………. 68 Section 10.4. Holidays During Vacation ……………………………… 68 Section 10.5. Employees on Non-Regular Workweek ……………… 68 Section 10.6. Employees on Third Shift ………………………………. 68 ARTICLE 11 - VACATION AND SICK LEAVE ……………………….. 69 Section 11.1. General Description of Credit …………………………. 69 Section 11.2. Computation of Credit ………………………………….. 69 Section 11.3. Eligibility to Use Credit …………………………………. 70 Section 11.4. Use of Credit ………………………………………………. 70 ARTICLE 12 - GROUP INSURANCE and RETIREMENT PLANS Synopsis of New Benefit Plans for IAM Represented Employees Medical and Dental Plan Options Two Medical Plan Options Available through PHS ………………….. 74 Coordinated Care (CORE) Plan (CCP) …………………………………… 75 CCP Prescription Coverage ………………………………………………… 75 Consumer Directed (Enhanced) Health Plan (CDHP) ……………….. 75 CDHP Prescription Coverage ……………………………………………… 76 Medical Plan Monthly Contributions 8/1/2010 thru 6/30/2011 .. 77 Two Dental Plan Options Available ……………………………………… 77 Dental Plan Monthly Contributions 8/1/2010 thru 6/30/2011 … 77 Health Care and Dependent Care Spending Accounts ……………… 77 Welfare Coverage (includes) - Weekly Disability, Basic Life Insurance, Supplemental Life Insurance, Basic AD&D, Supplemental AD&D and Business Travel Accident Insurance ….. 78 Retirement and Savings ……………………………………………………. 78 Retiree Medical ……………………………………………………………….. 79 Benefits at a Glance Coordinated Care (CORE) Plan …………………………………………… 84 Consumer Directed (Enhanced) Plan ……………………………………. 88 Dental HMO (Premier) Plan ………………………………………………… 92 Dental PPO (Preferred) Plan ……………………………………………….. 93 ARTICLE 13 - HEALTH AND SAFETY ………………………………… 93 Section 13.1. Mutual Objective …………………………………………. 93 Section 13.2. Health and Safety in the Workplace …………………. 93 Page 6 TABLE OF CONTENTS Section 13.3. Joint Programs ………………………………………… 94 Section 13.4. Drug and Alcohol-Free Workplace ………………… 95 Section 13.5. First Aid/Personal Protective Equipment …………. 95 Section 13.6. Joint Committee on Health Care Cost & Quality … 96 ARTICLE 14 - MISCELLANEOUS ……………………………………… 98 Section 14.1. Inventions ………………………………………………… 98 Section 14.2. Sabotage ………………………………………………… 98 Section 14.3. Investigatory Interviews ……………………………… 98 Section 14.4. Bulletin Boards ………………………………………… 99 Section 14.5. No Discrimination ………………………………………. 99 Section 14.6. Subcontracting ………………………………………… 100 Section 14.7. Masculine - Feminine References …………………… 101 Section 14.8. Technology ……………………………………………… 101 Section 14.9. High Performance Work Organization ……………… 101 Section 14.10. Career Development ……………………………………. 102 ARTICLE 15 - STRIKES AND LOCKOUTS ………………………… 103 Section 15.1. Strikes and Lockouts …………………………………… 103 ARTICLE 16 - WORKFORCE …………………………………………… 103 Section 16.1. Lateral Transfers and Change in Classifications 103 Section 16.2. Promotion …………………………………………………. 104 Section 16.3. Layoff ……………………………………………………… 105 Section 16.4. Temporary Layoffs ………………………………………. 105 Section 16.5. Recall ………………………………………………………. 105 Section 16.6. Recalls from Layoff ……………………………………… 105 Section 16.7. Layoff Notice ……………………………………………… 107 Section 16.8. Accelerated Layoff ……………………………………… 107 Section 16.9. Downgrade ………………………………………………. 107 Section 16.10. Emergency Classifications …………………………… 108 Section 16.11. Temporary Promotion ………………………………… 108 ARTICLE 17 - JOB SECURITY, JOINT PARTNERSHIP AND SPECIFIC SUBJECT MATTER COMMITTEES, WORKPLACE STEWARD-MANAGER PARTNERSHIP,
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