Preamble

This Agreement was made and entered into by and between IKEA Distribution Services, Inc., at its Perryville Distribution Center (hereinafter referred to as the "Company”) and the International Association of Machinists and Aerospace Workers,District Lodge 4, Local Lodge 1-460 affiliated with the ACL-CIO (hereinafter referred to as the “Union”) on behalf of itself and the bargaining unit employees identified in the Recognition Article employed by the Company at its Perryville, Maryland Distribution Center. Together, the Company and the Union may be referred to herein as the “Parties.

Article 1 - Recognition

1.1    The Company recognizes the Union, its designated agents and representatives, its successors and/or assigns, as the sole and exclusive collective bargaining agent on behalf of all of the employees of the Company within the bargaining unit as hereinafter defined with respect to wages, hours, and other terms or conditions of employment.

1.2    The bargaining unit is as certified by the National Labor Relations Board as found in Case No: 5-RC70590, which includes: All full-time and regular part-time warehouse employees known as; Battery Maintenance Technician, CDC, Inbound, Internal Hauler, Back-up Internal Hauler, Maintenance Technician, Outbound, Plock, Power EquipmentTechnician, Preventive Maintenance Technician, Recovery, Recycling, Stock Control and Storage and Movement (Cranes & Pickers), employed by the Employer at its Perryville, Maryland facility; excluding all salaried employees, office clerical employees and professional employees and supervisors as defined in the Act.

1.3    The word employee or employees as used in this Agreement will refer only to those individuals employed in the classifications covered by paragraph 1.2 above.

1.4    The words “full-time" employee will mean those employees who regularly are scheduled to work 32 or more hours per week.

1.5    No current full-time employee (or subsequently hired full-time employees who have completed the probationary period) will be laid off as to create one or several part time positions. This does not restrict on employee from requesting a change (with notice to the Union) to a part-time position if such position is available and consistent with Company needs.

1.6    A temporary employee is one who works up to 120 calendar days and is so informed at the time of hire. The Employer may in its discretion extend the temporary period for another 60 calendar days. Temporary employees will not be considered employees under this Agreement. After the end of the temporary period (as extended) if the Temporary employee is then retained, (s)he will have a seniority date beginning their first day as a regular Company employee and then serve the regular Probationary period called for in this Agreement. No current full-time employee (or subsequently hired full-time employees who have completed the probationary period) will be laid off as to create one or several temporary positions. This does not restrict an employee from requesting a change (with notice to the Union) to a temporary position if such position is available and consistent with Company needs.

1.7    Temporary employees will not exceed 15% of the full-time bargaining unit workforce In the event the Company has a business need to reduce the hours of work (less than forty (40) hours) ail temporary employees will cease prior to reducing the full-time bargaining unit workforce.

The temporary employees will be used to supplement the existing full-time bargaining unit workforce after start up with the intent of utilizing the temporary employees to fill job assignments left vacant by call outs, vacations, leave of absences or other changing business needs.

1.8    For the purpose of preventing erosion of the bargaining unit, upon ratification and during the terms of this Agreement, in the event a full-time employee resigns, is terminated or ceases employment, the Company will fill the full-time bargaining unit position if operationally necessary or otherwise create a full-time bargaining unit position within 30 working days from the time of termination.

Article 1 - Recognition Side Letter

In the event IKEA has hit the 15% limit on use of temp employees as set forth in Recognition, and a significant portion of the temps in use are for the purpose of covering employee leaves (excluding intermittent leaves), IKEA shall be permitted to reasonably exceed the 15% consistent with the number of leaves (excluding intermittent leaves) being covered by temps.

Article 2 - Union Security

1.1    Union Security

a)   Employees Who Are Union Members When Agreement Becomes Effective.  An employee employed at the time this Agreement becomes effective who is a member of the Union at such time will, not later than the fifteenth (15th) calendar day of each calendar month of employment, tender to the Union an amount of money equal to the monthly dues uniformly charged by the Union to all employees who are members of the Union.

b)   Employees Who Are Not Union Members When Agreement Becomes Effective.  An employee employed at the time this Agreement becomes effective who is not a member of the Union at such time will, not later than the thirtieth (30th) day of employment or the effective date of this Agreement, whichever is later, if still employed, tender to the Union: (1) an amount of money equal to the initiation fee uniformly charged by the Union to all employees who become members of the Union, unless the employee has, at any previous time, tendered such an amount of money to the Union; and (2) the pro rata share of an amount of money equal to the monthly dues uniformly charged by the Union to all employees who are members of the Union. Thereafter, such an employee will, not later than the fifteenth (15th) day of each calendar month of employment, tender to the Union an amount of money equal to the monthly dues uniformly charged by the Union to all employees who are members of the Union.

c)   Employees Hired after Agreement Becomes Effective.   An employee who is initially employed or re-employed after the time this Agreement becomes effective will, not later than thirty (30) calendar days after the commencement of employment, if still employed, tender to the Union: (1) an amount of money equal to the initiation fee uniformly charged by the Union to all employees who become members of the Union, unless the employee has, at any previous time, tendered such an amount of money to the Union; and (2) the pro rata share of an amount of money equal to the monthly dues uniformly charged by the Union to all employees who are members of the Union. Thereafter, such an employee will not later than the fifteenth (15th) day of each calendar month of employment, tender to the Union an amount of money equal to the monthly dues uniformly charged by the Union to all employees who are members of the Union.

d)   Determination of Pro Rata Share.  For the purposes of paragraphs b) and c) of this Section 1.1 the "pro rata share" to be tendered to the Union will be determined by dividing the monthly dues uniformly charged by the Union to all employees who are members of the Union by the total number of days in the month and multiplying the result by the number of days remaining in the calendar month after the employee is required to pay such share.

e)    Employees Holding Certain Religious Beliefs.   An employee who, because of sincerely held religious beliefs, as determined by the I.A.M.A.W., objects to joining or financially supporting labor organizations will comply with the provisions of Section 1.1 a), b) or c), whichever is applicable; except that, in lieu of tendering payment to the Union, such an employee will pay the amount of monies specified under such paragraphs either to Guide Dogs of America, 13445 Glenoaks Boulevard, Sylmar, CA 91342; Feed the Children, Inc, P.O.. Box 36, Oklahoma City, OK 73101- 0036; or the American Red Cross, National Headquarters, 2025 E Street, NW, Washington, D.C. 20006 (all of which are 501 © (3) charities), as selected by the employee. Not later than the end of the first (1st) working day after the tender dates specified in Section 1.1 b) or c), the employee will deliver to the employee’s Union shop steward a dated receipt from the charity indicating that payment of the required amount was received by the charity on or before the applicable tender date.

1.2     Discharge of Employee for Failure to Comply with Section 1.1

a)    Employees who are Union members on the effective date of the Agreement will continue to pay the dues amount in accordance with Section 1.1 a) above to the Union as a condition of continued employment while in the bargaining unit and on the active payrol

Article 3 - Check-off (Dues)

1.1    In the event by reason of Maryland law prohibiting the Union shop, then the Parties will substitute an agency shop provision for the Union shop provision if such substitution can lawfully be made. Such agency shop provision, if legal, would require all employees in the bargaining unit to pay the Union an amount equal to Union dues, initiation fees and assessments.

1.2    The Company agrees to deduct from an employee’s payroll check Union dues, initiation fees, assessments or agency fees for all employees covered by this Agreement, provided that the Union or the employee delivers to the Company a written authorization to make such deductions, signed by the employee, irrevocable for one year or the expiration date of this Agreement, whichever will occur sooner. The Company will make deductions for each member or agency fee payer from the first pay of such member or agency fee payer each month.

1.3    Such payroll deductions referred to in Section 1.2 will be remitted to the General Secretary Treasurer of the International Union no later than the fifteenth (15th) day of the month following the month in which the deduction was made and will include all deductions made in the previous month. The Company will furnish the General Secretary Treasurer of the International Union, quarterly, a record of those for whom deductions have been made and the amounts of the deduction and the names of those employees for whom deductions were not made. The Company will provide the Secretary Treasurer of Local 460 with a listing, on a monthly basis, of all newly hired or laid off employees.

1.4    The parties agree that check-off authorization will be on a form provided by the Union. If, due to illness or being on vacation, an employee's dues are not checked off, such deduction will be made no later than the fifteenth (15th) day of the month following his/her return to work.

In the event an employee does not have sufficient earnings on a regular payday to cover the amount of said deductions for the payday, the Company will make such deduction from the earnings due the employee on the next regular payday (or subsequent paydays).

In no such event will the Company make any deductions If to do so would otherwise violate federal, state or local law.

1.5    The Company will be relieved from making such payroll deductions for any employee upon any of the following: (a) termination of employment of the employee, (b) transfer of the employee to a job outside the bargaining unit, (c) layoff from work of the employee, or (d) revocation of the deduction authorization by the employee in accordance with its terms or with applicable law. When ceasing to deduct applicable service fees or dues for reasons cited in this Section, the Company will submit to the Union the names of all such employees.

1.6    The Union agrees to indemnify and save harmless the Company against all loss, costs and expenses, including court costs and reasonable attorney’s fees and other legal expenses, arising out of claims resulting from any action taken or not taken by the Company in attempting to comply with its obligations set forth in this Article. Nothing contained in this Article will obligate the Company to make payment of any sums to the Union other than such sums as are actually retained by the Employer for Union dues and fees and under no circumstances will this Article create any financial responsibility on the part of the Company.

Article 4 - Managment Rights

1.1    Except to the extent expressly limited by a specific provision of this Agreement the Company reserves and retains all rights which existed prior to the execution of this Agreement to manage its business, operation and the Distribution Center, including without limitation, the sole and exclusive rights to manage and direct the workforce and to execute the various duties, functions and responsibilities incident thereto, to determine the products to be handled or, to require and schedule reasonable overtime within the terms of the Agreement, to establish qualifications and job descriptions for all work, to schedule the work, to determine methods, processes and means of accomplishing the work, to conduct employee satisfaction or related surveys, to maintain or implement employee feedback or complaint processes which address issues outside of this Agreement, to determine the quality and quantity of work to be performed, to introduce new or improved methods, equipment or facilities for accomplishing the work, to change or discontinue existing work methods, products, material or facilities, to establish, revise or add reasonable work rules, policies and procedures which the Company deems necessary to ensure the safety and efficiency of the facility and its employees by which all employees must abide, to decide the number of employees and the number and location of its facilities, to hire, promote and or transfer employees by seniority, to demote, suspend, discipline or discharge employees for just cause, to involuntarily relieve employees from duty because of lack of work, and to exercise such other rights as may be necessary for the proper management of the Distribution Center that are not in conflict of any provisions or articles of this Agreement.

1.2    It is agreed that the management rights described and specified herein, except those rights expressly abridged or limited by a specific provision of this Agreement, may not be limited by arbitration or an Arbitrator, or by any other means except by mutual written agreement of the Parties.

1.3    it is understood and agreed that the exercise of management rights by the Company is not subject to prior notice, discussion or negotiation with the Union, except to the extent expressly required by a specific provision of this Agreement.

1.4    The Company has the sole right to subcontract, contract or outsource any work, and to have work performed outside of the Distribution Center either by third Parties or other facilities, including bargaining unit work, at any time and for any reason except that the intent cannot be to erode the bargaining unit. The Company also has the sole right to transfer work, and determine the location of the business, including the establishment of new distribution centers, facilities, departments, divisions or subdivisions and to relocate, sell, lease or close the same.

1.5    At least ten (10) working days prior to revising or adding reasonable work rules or personnel policies, the Company agrees to meet and discuss the same with the Union. The Union will have the right to challenge the reasonableness of any new rule and/or penalty through the Grievance and Arbitration Procedure.

1.6    With a minimum of ten (10) working days prior to implementation, the Company will distribute revised or newly implemented work rules or personnel policies to bargaining unit employees and provide a copy to the Union.

Article 5-401 (k)

1.1    The Company will provide the same access and contribution levels of the 401(k) to bargaining unit employees as provided to non-bargaining unit hourly employees,

Article 6 - Alteration of Agreement

1.1    No agreement, alteration, understanding, variation, waiver or modification of any of the terms, conditions of covenants contained herein will be made by any employee or group of employees with the Company and in no case will it be binding upon the Parties hereto unless such agreement is made and executed in writing between the Parties hereto, as represented by the DC Manager or his/her designee for IKEA, and the District 4 Union Business Representative or his/her designee for the Union.

1.2    The waiver of any breach or condition of this Agreement by either Party will not constitute a precedent in the future enforcement of all the terms and conditions herein.

Article 7 - Arbitration

1.1    Filing for Arbitration - Any grievance not settled in accordance with the Grievance Procedure Article may be submitted to arbitration at the option of the Union consistent with the time-lines set forth in Article 15 - Grievance Procedure. There will be no submission of multiple grievances to arbitration in one demand, nor will separately submitted grievances be consolidated and/or merged before the same Arbitrator, absent mutual written consent between the Parties. Accordingly, in the absence of mutual consent of the Parties, an Arbitrator may not be presented with, or rule upon more than one grievance.

1.2    Selection of the Arbitrator - In the event the Union submits a grievance or dispute to arbitration to the Federal Mediation and Conciliation Service (FMCS), the FMCS will provide a panel composed of eleven (11) Arbitrators from which the Parties will select the Arbitrator by each alternately crossing off a name and the Arbitrator left will be designated as Arbitrator. The Parties will alternate from one Arbitrator to the next who will be required to strike the first name from the list.

1.3    Arbitrator's Authority - The Arbitrator will consider only those grievance or grievances submitted and the issues raised therefrom, including any amendments to a grievance that were timely submitted pursuant to the grievance procedures. The jurisdiction of the Arbitrator and his/her decision will be solely confined to a determination of the facts and the interpretation or application of the specific provision of this Agreement at issue. The Arbitrator will be bound by the terms and provisions of this Agreement. The Arbitrator will have no authority to add to, subtract from, modify or amend any terms or provisions of this Agreement. The Arbitrator will confine his/her judgment to the facts submitted in the hearing, the evidence presented to him/her at the hearing, and the express terms and provisions of this Agreement. The Parties are precluded from filing written briefs on discipline or discharge cases and will be limited to closing arguments to be presented at the end of the hearing. At the conclusion of closing arguments the hearing will be declared closed unless so otherwise ordered by the Arbitrator. In contract language cases the Parties may file briefs within fifteen (15) calendar days from the conclusion of the hearing, at which point the case will be closed. The Arbitrator will provide a written decision within twenty (20) calendar days from the closing of the case.

1.4    The decision of the Arbitrator will be final and binding upon the Parties (without waiving either Parties right to appeal the decision in a court of appropriate jurisdiction) and will be compiled within twenty-five (25) working days after the decision has been reached, unless an appeal has been filed as set forth above or unless waived by mutual agreement.

1.5    Fees - The fee and expense of the Arbitrator will be borne equally by the Union and the Company. The expense of witnesses for either side will be paid by the Party producing the witnesses. The Company will honor reasonable requests from the Union to release employees from work to testify as witnesses. If a stenographic record is made, either Party may order a transcript thereof and the full cost will be paid for by the Party ordering the same.

1.6    Extension of Time Limits - Time limits may be extended only by mutual written agreement of the Parties.

ARTICLE 8 - AVAILABILITY OF AGREEMENT

1.1    This Agreement will be printed at a Union shop with the costs being split evenly between the Union and the Company. This Agreement will be printed by the Union at a shop of the Union's choice and furnished to employees within four (4) weeks of ratification.

1.2    As a part of a new employee(s) orientation for bargaining unit employees, the new employee(s), as a group, will be introduced to two (2) Union Representatives as designated by the Union. The Union Representatives will have up to twenty (20) minutes to explain to the group the Collective Bargaining Relationship at the Distribution Center.

ARTICLE 9 - BENEFITS AND POLICIES EXTERNAL TO THE AGREEMENT

1.1   The Parties acknowledge that they have negotiated over many mandatory subjects of bargaining and have agreed to them as set forth in this collective bargaining agreement (the "Agreement”). The Parties further acknowledge that IKEA currently provides a number of benefits and applies policies to bargaining unit employees which have not been specifically addressed in the negotiation of this Agreement at the choice of the Parties. As to those benefits and policies (including Drug/Alcohol Testing) not specifically addressed in the Agreement, the Company may alter the benefit or policy at issue (or eliminate it) or the Company, or other appropriate person with respect to the applicable benefit management, policy or practice in its sole and exclusive discretion may modify the benefits or policies, change the insurance carrier and/or administrator, add or delete investment/benefit options offered to participants and beneficiaries, change funding vehicles, investment advisers and managers, and service providers and/or (without any limitation arising from the foregoing enumeration) make any other changes as it determines in its sole and exclusive discretion to any such benefit or policy provided. The Union acknowledges and waives its right to negotiate over any changes for the duration of this Agreement. However, any such amendment, modification, change or termination of any such benefit or policy that occurs will apply equally to bargaining employees as occurs and applies to similarly situated non- bargaining unit hourly employees at the IKEA Perryviile location. This provision does not apply to any benefit and/or policy that has been specifically agreed to in this Collective Bargaining Agreement (CBA).

ARTICLE 10 - BEREAVEMENT

1.1    Employees will be compensated for their scheduled shift at base rate plus any premium the employee receives for each day's absence during the scheduled workweek for bereavement as follows:

Relationship
Paid Bereavement Day(s)

Spouse, child, mother, father, brother,
sister, domestic partner, stepchild,
grandchild, foster child who dies while placed in
the employee’s home by a State Agency, stepparents, (great)
grandparents, stepbrother, stepsister, half-brother, half-sister

Five (5) Days

Mother-in-law, father-in-law, brother-in-law, sister-in-law,
spouse’s grandparents, domestic partner’s,
parent(s)-in-law, siblings-in-law

Three (3) days

Niece, nephew, aunt, uncle or cousin

One (1) Day

1.2    If you are on vacation at the time of the death of your family member, you may notify your supervisor to cancel your vacation and change it to bereavement pay.

1.3    An additional leave, using personal, vacation or unpaid leave, may be granted by the sole discretion of the Company. The requested time must be submitted in advance and sufficient documentation may have to be provided.

1.4    Employees may be required to submit sufficient documentation to substantiate the relationship claimed and notice of the death. Acceptable documentation includes:

  1. Form from Funeral Director

  2. Obituary linking employee to deceased

  3. Any Official Government paperwork showing relationship to deceased

ARTICLE 11 - BULLETIN BOARDS

1.1    The Company will provide three (3) enclosed bulletin boards of reasonable size for the exclusive use of the Union in the main employee hallway to the warehouse where other employment postings to employees are located and the second location outside the CDC office in building 6 and the third at the Havre de Grace external. The bulletin board is for the purpose of official Union notices. The Union agrees not to post any notice which is offensive, derogatory, or inflammatory, or in violation of any other Company policy.

ARTICLE 12 - CALL IN PAY

1.1    Any employee reporting for work and who has not previously been notified that work has been canceled will be paid four (4) hours pay.

1.2    In circumstances of inclement weather, employees are expected to call the main number for the Company two hours before their scheduled shift. An employee isdeemed to have received notice even if they fail to call in as per this requirement.

1.3    When there are extreme situations other than weather, the Company will use a call blast service to contact the employee two hours before their scheduled shift. An employee is deemed to have received notice by this call blast if made at least two hours before the scheduled shift.

1.4    Should the Company need to close the facility, such closure is not a paid event. However, employees can use any accrued PTO for the duration of the closure. If the closure is due to operation needs such as technology or other servicing of the building or equipment as determined by IKEA, the employee denied a shift as a result, shall be given the opportunity to make up the lost scheduled hours in the week in which the closure occurred up to 2 times per contract year. This does not apply to closures due to emergencies/inclement weather, etc.

ARTICLE 13 - DISCHARGE AND DISCIPLINE

1.1    Disciplinary action will only be initiated by the Company for Just cause. All disciplinary action must be presented to the Union President, Chief Shop Steward/designee, or the affected employee within Fifteen (15) days of the incident or reasonable discovery thereof, If not presented to the stated parties within the fifteen (15) days allotted, no disciplinary action will be taken. Excluding the Powered Industrial Truck Operator Point System Program, the principles of progressive discipline (Counseling, Written Warning, Final Warning/Suspensions and Discharge) will be followed except in circumstances in which other discipline, up to and including immediate termination, is necessary due to the nature and severity of the employee’s conduct. Suspensions In conjunction with final warnings will not be viewed as a mandatory separate step prior to discipline.

The Parties understand and agree that for misconduct of a willful, malicious and intentional nature such as the following, the Company may impose an immediate suspension or discharge:

•    Workplace Violence or Severe Safety Violations

•    Theft of Company Property

•    Violation of Drug and Alcohol Policy

•    Falsification of Records

•    Criminal Activity on Company Premises

•    Sexual Misconduct or Sexual Harassment as defined by E.E.O.C or N.L.R.A.

•    Willful Damage to Company Property

•    Willful Damage to Employee Property on Company Premises

•    Theft of Employee property on Company Premises

1.2    All written discipline given to employees may be signed by the employee. A refusal to sign the disciplinary notice will be so noted. The Company will include a section on the disciplinary form which the Employee may initial to indicate that he or she has elected not to hove a Union representative represent them. The Union will receive a copy of the disciplinary form within twenty-four (24) hours of the issue, via email to the Chief Steward, if the Union representative is not present

1.3    An employee will have the right to have a Union representative or Union Shop Steward of his/her choice, if readily available, present during all disciplinary proceedings if requested by the employee. Copies of all disciplinary documents will be provided to the Union representative at the time of the meeting.

1.4    In accordance with Weingarten, an employee will have the right to be represented by a Union representative or Shop Steward during any investigation or interview that may lead to their own discipline if requested by the employee.

1.5    Any list of issues, infractions or misconduct set forth in this Article is not intended to be all inclusive. The Company will follow the principles of Industrial Due Process in all cases of Discipline and Discharge.

1.6    Except where the Powered Industrial Truck Operator Point System Program defines a length of time, Corrective Actions are "Actionable” for a specified period of time.

The term Actionable means that a corrective action can automatically contribute to further corrective action, up to and including termination of employment, if another infraction occurs within the time-periods established here:

•    Counseling = actionable for 3 months from the date of issuance

•    Warning = actionable for 6 months from the date of issuance

•    Final = actionable for 9 months of the date of issuance

1.7    All discipline will be placed in the following separate categories:

1.    Offenses. Offenses will include any and all disciplinary matters, but not those related to Attendance or Safety.

2.    Attendance

3.    Safety (Powered Industrial Truck Operator Point System)

1.8    While on a leave of absence, an employee's actionable corrective actions will "freeze” and not count towards time served.

ARTICLE 14- EMPLOYEE DISCOUNT

1.1    Bargaining unit members and their dependents (defined by the IRS standard) will receive a fifteen (15%) discount. There is no discount on Restaurant and Bistro products.

ARTICLE 15 - GRIEVANCE PROCEDURE

1.1    For the purpose of this Agreement, the term "grievance” means any dispute between the Company and the Union or between the Company and any employee concerning the effect, interpretation, application, claim or breach or violation of this Agreement.

1.2    Any such grievance will be settled in accordance with the following grievance procedure.

1.3    Grievance Steps - All grievances will be in writing on grievance forms provided by the Union and will be signed by all employees claiming rights there under. In an effort to adjust employee grievances by mutual agreement, they will be presented in the following order within the following time limits:

Step 1:    The employee(s), with or without their steward, will promptly bring a written grievance to their Shift Manager/Department Manager within seven (7) working days1 following the event or discovery of the event (or an event which should have been reasonably known to the grievant) giving rise to the grievance, To obtain a Shop Steward for this Step 1, the employee will make a verbal request to his/her Shift Manager/Department Manager for the Shop Steward. Such requests will not be unreasonably delayed. Reasonable time spent by employees in such Step 1 meetings with the Shift Manager/Department Manager will be considered paid time. The Shift Manager/Department Manager will provide a written response within five (5) working days. If such grievance is not settled then:

1 The term "working days" as applied to any timelines in this Agreement will be defined as Monday through Friday exclusive of holidays established under this Agreement. This definition does not establish or pertain to any otherwise negotiated work hours, shifts or schedules under this Agreement.

Step 2: Within ten(10) working days of the Step 1 response, a written grievance containing the Article or Section which is claimed to be violated and the remedy requested must be signed by the employee(s) and submitted by the Chief Steward or designee and taken up with the HR Manager or his/her designee. A meeting between the Chief Steward and the HR Manager will be scheduled within five (5) working days. If no resolution has been reached at such meeting, within five (5) working days, the Company will reply in writing to the Chief Steward. If the written reply is not satisfactory, the Union may move to Step 3.

Step 3: Within ten (10) working days of the Step 2 reply, the grievance will be moved to Step 3 by written appeal to the DC Manager or his/her designee. The DC Manager or designee and the Business Representative or designee of the Union and one (1) Grievance Committee member will meet within fifteen (15) calendar days after receipt of the grievance into a third step. A written reply from the DC Manager will be given to the Union within ten (10) working days after the meeting. If no resolution has been reached from the Step 3 meeting, the Union may submit the grievance or dispute to arbitration as covered in the Arbitration Article by serving a written notice to the Company and FMCS of its intent to arbitrate within fifteen (15) working days following receipt of the Company’s Step 3 answer.

1.4    Grievance Meetings - The Parties will have the right to call such witnesses as are reasonably necessary to fully present their case during all grievance meetings. When it is necessary for an employee to leave their job for the purpose of attending a grievance meeting, they will be notified by their supervisor of the appropriate time to attend the hearing. All grievance hearings will be held during the grievant’s regular work hours.

1.5    Final Decision - Unless the Parties agree otherwise in writing, a settlement or compromise made with respect to any grievance will apply to that grievance only and will not become a binding precedent in the case of other grievances nor a precedent which will bind the Parties as an interpretation of the Agreement.

1.6    Extension of Time Limits-Time Limits will be strictly construed. If the Union fails to comply with the time limits, unless extended, the grievance will be considered withdrawn. If the Company fails to meet the time limits, unless extended, the grievance will be automatically sustained. Time limits will be extended only by written agreement of the Company and the Union.

1.7    Grievance Representation - Any aggrieved employee and Union Representative will have the right to be present at any stage of the grievance procedure in which the grievance is being considered. No employee may leave the job, take up, or handle a complaint or grievance without requesting permission from their immediate supervisor, Such permission will not be reasonably withheld.

1.8    Group Grievance - The Union reserves the right to file a general grievance claiming a breach of this Agreement. A grievance on behalf of three (3) or more employees will be filed at Step 2 of the Grievance Procedure and consistent with the applicable Step 2 time frames.

1.9    Applicable Contract Terms - Grievances filed under the terms of this Agreement will be processed, up to and including arbitration, under the language in the Agreement at the time the grievance was filed even though a new agreement has been negotiated subsequent to the grievance being filed, unless otherwise agreed by the Parties,

ARTICLE 16 - HEALTH INSURANCE

1.1    The Company will provide the same access to, benefit levels, costs and contribution levels for health insurance coverage to bargaining unit employees as provided to non-bargaining unit hourly employees.

ARTICLE 17-HOLIDAYS

1.1    Employees will be granted the following holidays yearly during the life of the Agreement and paid at their regular base pay plus any premiums the employee regularly receives.

1.2    No employees will be scheduled on Thanksgiving or Christmas days. If the employee is normally scheduled on the days on which these two holidays fall, the employees must use their vacation or personal time (but not sick time).

1.3    The Distribution Center is not prohibited from operating and soliciting volunteers from working the above-mentioned holidays in 1.1 and 1.2. In addition to holiday pay, such volunteers will be paid at one and one half (1.5) times their regular base pay plus applicable premiums for hours worked.

1.4    If an employee works and starts a shift the day before a holiday per 1.3 above and works into a holiday’s hours, the employee receives a holiday pay for the hours that belong to the holiday. If the employee starts a shift that is on the actual holiday, then the holiday premium applies to the entire shift.

ARTICLE 18 - HOURS OF WORK

1.1    The Company will retain the rights to set schedules below:

a)    Workweek:

•    First Shift: Monday, Tuesday, Thursday, Friday

•    Second Shift: Monday, Tuesday, Thursday, Friday

•    1A: Sunday through Wednesday

•    IB: Wednesday through Saturday

•    2A: Sunday through Wednesday

•    2B: Wednesday through Saturday

•    See attached Exhibit 1

All first shift schedules start at 5 a.m. and stop no later than 3:30 p.m. second shift schedules start at 4 p.m. and end no later than 2:30 a.m.

b)    The Company has the right to create a new schedule and bargain with the Union over the schedule.

1.2    Full-time employees will not be scheduled for more than forty (40) hours in a week. This limit does not prohibit an employee from working additional hours by volunteering for overtime work. In the event there are insufficient volunteers for overtime work, the Company can utilize temporary employees. If additional employees are needed, the Company reserves the right to utilize inverse seniority to fill the needs.

1.3    Full-time employees will have a minimum of thirty-two (32) hours scheduled per week, however, this is not a guarantee of paid hours as the employee must be ready, willing and able to work the thirty-two (32) hours and the Distribution Center must be in regular operation. This minimum schedule of thirty-two (32) hours for full-time employees does not otherwise limit the Company’s rights regarding layoffs as otherwise established in this Agreement.

1.4    Breaks: Consistent with Company policy, the following breaks will be in effect:

a)    There will be an unpaid thirty (30) minute lunch break at or around the mid-point of the employee’s scheduled shift, as scheduled by the supervisor.

b)    For First and Second shift employees there will be two (2) fifteen (15) minute paid breaks. The first paid break will be taken at or around the mid-point of the first half of the employee’s shift as scheduled by the supervisor. The second paid break will be taken at or around the mid-point of the second half of the employee’s shift as scheduled by the supervisor.

1.5    All hours worked in excess of forty (40) hours worked in any workweek will be paid at the rate of time and one-half the employee’s regular rate of pay.

1.6    For Facilities department employees who are required to wear protective uniforms, the Company will provide them a period of up to five (5) minutes at the start and end of the shift to change uniforms, provided they are changed at the work site.

1.7    Shift Bid

The period from October 1st 2017 to October 10th 2017 (and each year thereafter) will be known as Shift Bid. On October 1st 2017 (and each year thereafter), the Company will post a Shift Bid on a departmental basis that will consist of the Shift, Department, Category, Work Days, Hours of Work and number of employees needed and three (3) Preferences1. Employees must submit in writing their selections by October 10th of each year.

Shift Bid Posting will be taken down at the end of the Shift on October 10th 2017 (and each year thereafter) and the results will be posted, and serve as official notice of schedules, on October 25th 2017 (and each year thereafter) becoming effective on the first payroll after November 1st 2017 (and each year thereafter).

1. The Company retains the right to determine the department to which a job is assigned.

Employees on an approved leave of absence will be notified of shift bid by US mail; if they bid timely, a shift will be held for the duration of the approved leave.

Any additional openings which arise after the Shift Bid Period will be filled consistent with the Seniority provision of this Agreement.

Exhibit 1 to Article 18 Hours of Work
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 and 2        
10 10   10 10
  10 10 10 10    
1A / 2A 10 10 10 10  
10 10 10 10      
10 10 10 10
  10 10 10 10      
1B / 2B   10 10 10 10
10 10 10 10      
10 10 10 10
  10 10 10 10      
1C / 2C 10 10 10 10
  10 10 10 10    
10 10 10 10
  10 10 10 10      
1D / 2D 10 10 10 10
10 10 10 10      
10 10 10 10
      10 10      
1E / 2E   10
      10      
  10
        10      
1F / 2F   10
    10 10      
  10
        10      
  10
1G / 2G       10      
  10 10
        10      
1H / 2H   10
      10      
  10 10
PT1 /PT2
(Part-Time)
X X       X X

** Part-Time employees will not be scheduled more than 30 hours a week.

Facilities Department schedules will remain the same as they exist today.

ARTICLE 19 - JURY DUTY / WITNESS

1.1    Any employee required to report to any city, state or federal court or proceeding as a witness for IKEA or as a jury and/or grand jury member will be paid for all time for the day/days (s) he is required to be in attendance. Employees will be paid only for the amount of hours missed for their scheduled shift at their base pay rate and any applicable premiums.

ARTICLE 20 - LEAVE OF ABSENCE

1.1    Upon written notification at least five (5) business days in advance, Union Stewards, Union Committee Persons and Elected Officials will be granted unpaid time off for the purpose of attending training related to the performance of their Union duties at the Perryville location. However, such time off may be limited in the number of people on the same day to no more than would otherwise be granted in conjunction with other requests from bargaining unit employees for time off.

1.2    The Company agrees to comply with the provisions of the Family Medical Leave Act (FMLA), and to afford the benefits provided by the Act to all employees who have worked at least 1,250 hours in the last twelve (12) months immediately preceding the month in which the leave is requested.

1.3    The Company agrees to comply with the provisions of the Maryland Family Leave Act.

1.4    It is not until Short term disability (STD), FMLA and/or ADA exhaust that any procedures would be initiated toward termination of STD, FMLA and/or ADA eligible employees.

1.5    It is not until worker’s compensation settles that any procedures would be initiated toward termination of eligible employees.

ARTICLE 21 - NO STRIKE / NO LOCKOUT

1.1    For the duration of this Agreement, the procedures described herein for settlement of grievances will serve as the means for peaceful settlement of all disputes that may arise between the Parties regarding this Agreement.

During the term of the Agreement or extension thereof, the Union will not collectively concertedly, or individually, call, engage in, participate, directly or indirectly in, work stoppages, slowdowns, strikes, sympathy strikes, or any other interference with or interruption of work, and will at all times cooperate with the Company in maintaining complete operations. The Company agrees that it will not lock out its employees during the term of this Agreement.

1.2    In the event that the employee or employees engage in any of the actions set forth in Section 1.1 of this Article, which the Union has agreed not to call, authorize, condone or support, such employee and those participating with him or her may be disciplined to the extent determined by the Company, in its sole discretion. The term “slowdown" will mean an intentional or willful act on the part of the employee to restrict the operations of the Company by the use of any means within the employee's reasonable control.

1.3    In the event that either Party's investigation has determined that there is significant evidence that the employee(s) engaged in any of the actions set forth in 1.1 above, the Union, as soon as possible and within forty-eight hours upon receipt of such written or e-mail notice from the Company, will be obligated to:(i) advise the Company, in writing or e-mail, that the strike, slowdown, stay-in, sympathy strike or picket line has not been called or sanctioned by the Union and (ii) pursuant to the Union's investigation results, advise the employees that such actions are unauthorized and unprotected and illegal, and the Union will further and immediately order the employee(s) to return to work,

1.4    The obligation of the Union will be limited to the performance of the acts required by Section 1.3, and upon compliance by the Union with the provisions of Section 1.3 of this Agreement, the Union and its officers, agents, and members will have no further liability during the term of this contract and thereafter, for any damage suffered by the Company arising from or out of any stoppage or strike.

a) In the event the Union fails to take the actions described in Section 1.3, the Union will be held liable and responsible for the actions of its members. If the Union, either directly or indirectly, authorizes, supports, promotes or condones any violation of this Article, the Company will have all rights the law provides, including, but not limited to, entitlement to injunctive relief, court costs and attorney’s fees.

1.5    Neither the violation of any provisions of this Agreement nor the commission of any act constituting an unfair labor practice or otherwise made unlawful by any federal, state or local laws will excuse employees or the Parties from their obligations under this Article’s provisions.

1.6    Unless specifically limited by this Article, nothing in this Article will preclude the Union from lawful concerted activity. The Union retains its right to engage in informational picketing so long as the purpose and issues addressed by the informational picketing are not amenable to resolution under the Grievances and Arbitration clauses in this Agreement,

ARTICLE 22 - NON-DISCRIMINATION

1.1    The Company and the Union will not interfere with, restrain or coerce the employees covered by this Agreement because of membership in, or activity on behalf of the Union, The Company will not discriminate in respect to hire, tenure of employment or any term or condition of employment against any employee covered by this Agreement because of membership in or activity on behalf of the Union, nor will it discourage or attempt to discourage membership in the Union or attempt to encourage membership in the Union.

1.2    The Company agrees that it will not discriminate against any employee in payment of wages, assignment to jobs, seniority, promotion, demotions, training, transfer, layoff, recall, discipline, discharge, benefits, working hours, physical facilities, retirement age, insurance coverage, job classification, testing or any other term, condition or privilege of employment because of race, color, religion, sex, national origin, veteran status or physical or mental disabilities,

1.3    In Compliance with the Americans with Disabilities Act, the Company will make reasonable accommodations for its employees on a case by case basis, based on recommendations by his or her provider for the known physical or mental limitations of an otherwise qualified individual with a disability.

ARTICLE 23 - OVERTIME

1.1    Hourly employees will be paid for overtime when they work more than forty (40) hours in one work week. Overtime pay will be at the rate of one and one half (1.5) times their base rate and one and one half (1.5) times any premium they receive.

1.2     Posted overtime will follow these procedures:

1.    Overtime sheet will be pasted fourteen (14) days in advance for each week. Employee signs.

2.    Confirmation sheet will be posted the Wednesday prior to the overtime week. Employee confirms by signing again.

3.    Confirmation sheet comes down twenty-four (24) hours prior to day being worked.

4.    Company will contact alternates, by seniority, to back fill any scratched or unconfirmed names.

a)    Calls will be made on Mondays for “B" shift OT

b)    Calls will be made on Fridays for “A" shift OT

c)    Calls will be made by a Manager with a union official present

d)    One call will be made to the next “alternate”. If that person does not answer their phone, a message will be left.

e) Manager and union official will initial OT sheet when employee agrees to work OT

5    On the overtime day SDS employees report to their home department. and support employees will report to the Team Lead office. Based on business needs employees will be placed where overtime is needed.

1.3    When the building will be in operation during a holiday, sign-up sheets will be posted in each department.

ARTICLE 24 - PERSONAL TIME

1.1    Each employee will accrue up to thirty (30) hours of personal paid time off per year. Personal time will accrue on a weekly basis. Personal time will be taken at the employee's sole discretion and not to be unreasonably denied. Employee’s taking personal paid time must call in for the time off within three (3) hours after the start of their regular shift. Any personal paid time off not used by an employee in a calendar year may be banked for future use up to three (3) times of eligible hours. Employees will be paid at their base rate of pay plus any premiums the employee receives.

1.2    An employee must take Personal Time in a minimum of one (1) hour increments.

1.3    Personal time is accrued based on regular hours worked from the first day of regular employment. Personal time will not accrue after thirty (30) days of any leave.

1.4    Personal time can be used after ninety (90) days of employment and once time is accrued.

ARTICLE 25 - PROBATIONARY PERIOD

1.1    All regular full-time employees and all regular part-time employees who are hired on or after the effective date of this Agreement, whether or not previously employed by the Company and regardless of whether they are or are not members of the Union, will be subject to a probationary period and will be deemed probationary employees for a period of ninety (90) calendar days to commence from the date first worked after hire.

1.2    Seniority will not accrue to probationary employees during the probationary period. However, at the successful completion of the probationary period, the employee's seniority will be considered to commence from the date first worked after hire.

1.3    Notwithstanding any other provisions of this Agreement, the Company may at any time during or at the end of the probationary period, lay-off, discharge or discipline probationary employees at its sole discretion, with or without just cause, and no claim may be made by the Union or any probationary employee that the lay-off, discharge or discipline was improper. Moreover, the Company's action with respect to such probationary employees will not be subject to the grievance or arbitration provisions of this Agreement.

1.4    The Parties may mutually agree in writing on a case by case basis to extend the probationary period for on additional 10 calendar days if the Parties determine extenuating circumstance exist.

1.5    If an individual takes a leave of absence during their probationary period, the time period that they are on leave will not count as time served towards their probationary period.

ARTICLE 26 - SAFETY AND HEALTH

1.1    The Union and the Company are committed to working together to maintain a healthy, safe and environmentally responsible workplace. Both Parties agree that all employees should be actively involved in creating a safe workplace and complying with all applicable safety, health and environmental rules, policies and procedures. Both Parties commit to work together to ensure an environment which promotes a positive approach to processes, attitudes and activities that help to achieve a workplace free of incidents, accidents and injuries and help protect the environment.

Both Parties recognize that good physical health and being prepared to do physical work may reduce injuries, and together, the Parties will explore methods to promote health and safety programs.

1.2     a) Should an employee believe that there is imminent danger due to work required to be performed, the employee should promptly inform his/her immediate supervisor and/or Location Manager or a designee identified by the Location Manager.

b) Where an employee believes there is imminent danger due to work required to be performed, the work will not continue until the responsible Safety and Security Manager or a designee and the Union Safety Representative or designee makes a final determination concerning the safety of the individual and the work to be performed.

1.3    The Parties agree to create and maintain a Joint Health and Safety Committee (hereinafter the "Safety Committee"). The Safety Committee will be composed of a minimum of three (3) employee representatives for the Union and three (3) representatives from the Company. The Union will advise the Company of their representatives for the Safety Committee. The Safety Committee’s purpose is to explore ideas and methods to promote health and safety in the facility.

1.4    A contact listing of the responsible site Location Manager or designee and the Safety Committee members will be posted at locations conveniently accessible to employees.

1.5    The Safety Committee will not have authority to make changes to or interpret the terms of this Agreement, nor to alter the terms and conditions of this Agreement.

1.6    The Company will provide up to forty (40) hours of on-the-company-site safety related training to the Safety Committee members on an annual basis to be determined by the Company, which may consider the safety training recommendations of the Safety Committee. The time spent in such training by the Safety Committee members will be considered time spent performing Safety Committee functions.

1.7    The Company will regularly provide necessary safety related training to employees at reasonable intervals, such as through Safety Talks.

ARTICLE 27 - SAVINGS CLAUSE

1.1    In the event that any federal or state legislation, governmental regulations or court decisions cause invalidation of any Article or Section of this Agreement, all other Articles and Sections not so invalidated will remain in full force and effect.

1.2    Within thirty (30) calendar days, the Company and Union will meet to negotiate new contract language to replace the particular Clause(s) which were invalidated by federal or state legislation.

ARTICLE 28 - SENIORITY

1.1    Seniority Defined - For purposes of benefit entitlement, seniority is defined as the employee's continuous length of service with the Company from the date of hire or rehire. For purposes of internal and/or external transfer between departments (CDC, Inbound, Outbound, Ives, Storage and Movement, Plock, Recovery, Stock Control, Recycling), promotion, selection of overtime, vacation, job openings or job functions within a department, an employee's seniority date will be the date the employee began performing work for the Company, except when seniority has been broken as defined in this Article in which event seniority will be computed from the first day performing work for the Company after rehire.

Employees in a layoff status continue to accumulate seniority as defined in this Article, For purposes of layoff and recall, seniority will be determined by an employee’s date of hire.

The relative seniority of employees who have the same seniority date will be determined with the employee’s last name and at the time of hire with “A" being the most senior.

1.2    A job function is defined as a job assignment within a department within the category. Every employee will work in their assigned job function unless business needs require reorganization of the resources1. Employees arriving late to work shall lose their ability within their department to select a job function on that day.

When the need to reorganize resources becomes apparent after the start of the shift, to assign job functions by seniority, the Company will determine the departments that can spare resources and ask for qualified volunteers. These volunteers will be selected by seniority. If an insufficient number of volunteers are obtained, the Company will utilize inverse seniority to meet the function needs.

1.3    Shop Stewards and Bargaining Committee Members will enjoy additional seniority (for purposes of layoff) of two (2) years more than their actual seniority when possessing those titles.

1.4    The Chief Steward and President will enjoy additional seniority (for purposes of layoff) of four (4) years more than their actual seniority when possessing this title.

1.5    Qualifications - "Qualified” or “qualifications”, unless otherwise specified elsewhere in this Agreement, will mean the employee meets or is able to meet, with a minimum of two (2) weeks training, the requirements of the job description with the exception of Internal Hauler in which case there will be two (2) weeks of on the job training and four (4) weeks of proficiency development.

1.6    When employees are reclassified in accordance with provisions of this Agreement, they will be given such guidance, training and orientation as are reasonably necessary to perform the work of the classification and/or job assignment.

1.7    Breaking Seniority - An employee’s seniority will be considered broken and all rights under this Agreement forfeited only when an employee:

a)    Resigns or is discharged for just cause or accepts employment in a position with the Company that is outside of the bargaining unit defined by this Agreement.

b)    Fails or refuses to call or confirm their return to work five (5) working days after being recalled and actually returns to work within ten (10) working days of receiving the notice of recall, unless extended by the Company. If the employee cannot return due to medical reasons, they may remain on medical leave of absence limited by Section 3.1 (c) of this Article.

Notification of recall for the purpose of this Section will be made by regular mail addressed to the employee’s last known address as shown on the Company's records with a copy sent to the Union. The notice is considered received as of three (3) working days from the date of the note of the notice. Failure to notify the Company with a change in address, employees may forfeit recall rights at the time of recall. The employee will keep the Company informed of their current address.

c)    Fails to return at the end of a short term disability up to a nine (9) month period.

d)    Failure to return at the end of a leave granted under this Agreement.

e)    Employee is on layoff for a period up to eighteen (18) months.

1.8    Layoff - If the Company determines it is necessary to lay off any member of its workforce, then the Company will do so by job category as set forth in Addendum 1 using the following procedures. For the purpose of a layoff, employees in the bargaining unit will be laid off in the following order:

a)    Temporary employees will be displaced prior to any layoff of bargaining unit employees in any category where layoffs are occurring.

b)    Sub-contractors in the category where layoffs are occurring will be displaced prior to any layoff of bargaining unit employees, unless such employees possess special skills not possessed by bargaining unit employees but deemed to be necessary by the Company.

c)    Probationary employees (if any), as defined in Article 25 of the Agreement, will be displaced prior to any layoff of full seniority employees in any category where layoffs are occurring.

d)    Employee(s) within the affected category who desire to be laid off will be permitted to submit a written request to be laid-off. Such employee(s) will be laid off first, provided the remaining employees in the category hove the immediate ability and qualifications to perform the remaining work. If there is a conflict among those employees requesting layoff, seniority will prevail and the employee(s) who is more senior will have their request honored. Employees who are laid off will have the option to use vacation time during the layoff. Voluntary laid-off employees cannot revoke their laid-off status.

e)    If there are no volunteers for layoff, employees, in any category where layoffs are occurring will be laid-off on the basis of least seniority first.

f)    In the event employees are scheduled to be laid off in one category and there exists a vacant position(s) in another category, such employees may bid on such vacancies. In the event there are no such vacancies, such employees to be laid off in the category may displace the least senior employee in the other categories provided the employee is qualified to perform the position and has more seniority than the person being displaced.

1.9    Notification of Layoff- Unless otherwise required by applicable law, the Company will give the Union and the affected employees(s) twenty one (21) working days' notice prior to the effective date of the layoff. The notice will state the date the layoff will become effective and the expected date of return, if any or if known. Employees who are affected by a layoff and are on a leave of absence or other excused absence at the time the layoff notice is given will be notified of the layoff by regular mail sent to their last known address as shown on company records.

2.0     Recall - Employees in layoff status will continue to accumulate seniority.

Employees will be recalled within their category, in order of seniority. The Company will send recall notices by regular mail to the employee(s) last official address of record as provided by the employee at the time of layoff or after change of address has been submitted, with a copy sent to the Union. The notice is considered received as of three (3) working days from the date of notice. The employee has five (5) working days after the recall notice was received by the employee to call to confirm their acceptance of recall and actually return to work within ten (10) working days of receiving the notice of recall, unless extended by the Company. If an employee declines to return as recalled, then (s) he is terminated and the next employee in order of seniority within the category will be offered recall.

2.1    Seniority List - The Company will furnish an updated seniority list by the 5th day of each month to the Lodge President and Chief Steward. An updated seniority list pursuant to a layoff situation will be furnished to the Lodge President and Chief Steward when requested. Seniority list to include, name (at hiring date), employee number, seniority date.

2.2    Job Openings and Promotions - All Union job vacancies and all newly created job openings will be posted in the main hallway. Such postings will remain posted for five (5) business days internally, to come down at midnight on 5th day, prior to posting the position for external applicants. The posting will state the job to be filled, the scheduled location of the job, the shift, the pay grade of the job and description of work required. Any application must be filed Online with the Company through the "Open IKEA" process or any similar electronic system established by the Company. If no Perryville employee applies for the job within the five (5) business days, then the Company may post externally and all applicants may be considered with the selection fully within the discretion of the Company.

Any bargaining unit employee in the Perryville location where a vacancy exists may apply for the transfer or job if he/she is not on a last chance agreement. An employee applying for more than one vacancy will indicate the order of preference for each job. If he or she is selected for more than one vacancy, he or she will accept only for the job ranked highest in his or her preference. The senior person that is qualified as in Section 1.5 will fill the vacancy for promotion or any transfer within the bargaining unit. Any transfer or promotion to a position outside the bargaining unit will be determined at the full discretion of the Company.

2.3    Any bargaining unit employee who seeks and receives a transfer for which they applied shall be precluded from applying for any further transfer for six (6) months except in the case of shift bid.

SENIORITY ADDENDUM 12

Category 1

Warehouse Coworker (see department as described in 1.1)

Category 2

Stock Control

Category 3

Maintenance Technicians Battery

Maintenance Technicians

Power Equipment Technicians

Preventive Maintenance Technicians

Category 4

Internal Hauler

ARTICLE 29 - SHIFT PREMIUMS

1.1    Shift premiums are as follows for all bargaining unit employees hired before September 1, 2017, In order to receive the premium, at least half of the employee’s time must have been worked on the shift where the premium is available.

First shift: Monday, Tuesday, Thursday, Friday = no premium

Second shift: Monday, Tuesday, Thursday, Friday = .75 premium

1A: Sunday through Wednesday = .50 premium

1B: Wednesday through Saturday = .50 premium

2A: Sunday through Wednesday = 1.00 premium

2B: Wednesday through Saturday = 1.00 premium

The weekend premium shall be paid even for the one week in the four week rotation set forth in the Hours of Work Article when the Saturday or Sunday is not worked as part of that week's schedule.

2  The Parties agree a designation of the job functions is reserved for determination by the Company. However, those designations for each department should be determined and posted on a regular basis and the Parties may discuss such designations in the LMC.

1.2    All shift premiums will be part of base wage and will be used for all Paid Time off (PTO), and overtime calculations if the employee works within the shift with the premium.

1.3    Shift premiums are as follows for all bargaining unit employees hired after September 1, 2017. In order to receive the premium, at least half of the employee’s time must have been worked on the shift where the premium is available.

First shift: Monday, Tuesday, Thursday, Friday = no premium

Second Shift: Monday, Tuesday, Thursday, Friday = .50 premium

1A: Sunday through Wednesday = .25 premium

1B: Wednesday through Sunday = .25 premium

2A: Sunday through Wednesday = .75 premium

2B: Wednesday through Sunday = .75 premium

1.4    For all employees hired after September 1,2017, after 3 full years of employment will then be eligible for the shift premiums set forth in Section 1.1.

ARTICLE 30 - SICK PAY

1.1    Each employee will accrue up to forty (40) hours of paid sick time off per year.

Sick time will accrue on a weekly basis. Full-time employees will receive forty (40) hours of accrued sick pay per calendar year. Employees will be paid sick pay at their base wage rate plus any premium pay the employee regularly receives. Employees may bank any unused sick pay for future use up to two (2) times the employee's eligibility.

1.2    Sick time will not accrue after thirty (30) days of any leave, with the exception of military leave subject to the accrual limits in Section 1.1.

1.3    Sick time can only be used after ninety (90) days of employment and once accrued.

1.4    Sick time is accrued based on regular hours worked from the first day of regular employment.

ARTICLE 31 - TECHNOLOGICAL CHANGE

1.1    The Company agrees that when technological changes take place that requires additional knowledge and/or skill on the part of its employees, such employees will be given reasonable opportunity to acquire the knowledge and skill necessary to perform the new tasks assigned if such knowledge and skill is acquirable through on the job training. In such cases, the Company agrees to furnish the necessary instruction at the employees’ current rates of pay. Such training will not include the pursuit or need for a degree to perform the new tasks or such training that is outside the expertise of the Company to provide.

1.2    Employees who are displaced from their job classifications as a result of technological changes and are assigned to available lower job classifications will be paid the applicable rate of pay or their seniority in the classification to which they have moved. If no available positions exist the employee may exercise their rights under the seniority/layoff provisions and be paid at the applicable rate for the classification they move to.

1.3    When a new job is introduced into the plant or the content of a job is significantly changed as a direct result of the introduction of either new equipment, materials or methods which are normally within the scope of the bargaining unit or they are combined with duties which are not normally within the bargaining unit, the Company will furnish reasonable information related to the duties of the new job for the purpose of bargaining over the effects of such change.

ARTICLE 32 - TUITION REIMBURSEMENT

1.1    The Company will provide an annual fund of thirty thousand ($30,000.00) for tuition reimbursement purposes. These funds are available on a first come, first served basis for Union members in good standing attending an accredited institute of education. Employees must achieve at least a "C" average in the course for reimbursement and the maximum reimbursement for a calendar year per employee is $2,250.00. Employees must submit appropriate documentation of the course taken, grade achieved and cost prior to reimbursement occurring.

ARTICLE 33 - UNION REPRESENTATIVES

1.1    The Company recognizes and will work with all accredited Union Representatives in all matters relating to grievances or interpretations of the Agreement. Union Representatives are defined as Bargaining Committee-members, Shop or Chief Stewards and other bargaining unit employees who hold elected positions in Local 460.

1.2    A written list of Union Representatives will be furnished to the Company immediately after their designation and the Union will notify the Company promptly of any changes.

1.3    There will be on each shift, a Shop Steward for every sixty-five (65) employees,or major fraction (fifty percent (50%) or more) thereof.

1.4    The number and location of Stewards may be adjusted by mutual agreement of the Company and the Union.

1.5    The Company will agree to such arrangements as may be necessary for the Union Representatives to properly and expeditiously carry on their Union duties. Such arrangements will include permission for Union Representatives to leave their department to go to any other department, etc., within the bargaining unit to address a grievance or complaint. Union Representatives are encouraged to conduct such meetings during non-work times. Union Representatives will not leave their department for such purposes until they have given proper notification to their supervisor. Time spent by Union Representatives engaged in such matters during work time will be paid for up to thirty (30) minutes for matters relating to grievances or interpretations of the Agreement unless it involves an arranged direct meeting with Company representatives, in which case all time in the meeting will be paid.

1.6    The Union may not, without authorization from the Company, consume an unlimited amount of time conducting such matters of investigations.

ARTICLE 34 - VACATION

1.1     Vacation will be based on the employee’s hire date and the employee’s years of service as follows:

0-2 years = 80 hours (2 weeks)

3-4 years = 120 hours (3 weeks)

5-9 years = 160 hours (4 weeks)

10+ years = 200 hours (5 weeks)

1.2     Vacation pay will be based upon the employee's base pay plus any premium pay the employee receives.

1.3    Vacation must be taken in a minimum of 4 hour increments (as per regular schedule)

1.4    Employees are required to schedule out vacation fourteen (14) days in advance and it must be approved before taken. If there are any remaining time-off slots available, they may be filled on a first come, first serve basis three (3) days in advance and it must be approved before taken.

1.5    Unused vacation hours can be carried over to the next year to a maximum of two (2) times their eligibility.

1.6    Employees can only begin taking their vacation time after six (6) months from date of hire.

1.7     Employees are paid out their vacation time at termination but not in lieu of vacation while currently employed.

1.8    While on short term disability, vacation time will accrue for thirty (30) days but not beyond.

ARTICLE 35 - VISITATION BY UNION REPRESENTATIVES

1.1     Officers and/or accredited representatives of the Union will be admitted to the Distribution Center by the Company during working hours after notifying the Company prior to entrance for the purpose of ascertaining whether or not this Agreement is being observed by the Parties or for assisting in the adjusting of grievances. All such officers or representatives, who are not employed by the Company, will comply with the security regulations as required of all other Distribution Center visitors.

1.2    If it is necessary for a full-time Union Representative to meet with any single employee and any Shop Steward to discuss a complaint or grievance, the employee’s and the Shop Steward’s time will be company paid providing that he or she first notifies the Location Manager or designee. The contacts on company time will not be more frequent and no longer than the matter for discussion reasonably requires.

ARTICLE 36 - WAGES

1.1    Job Titles and Pay

Job Titles

PAY GRADE 1

Warehouse Co-Worker Y1 JAN Y2JAN Y3 JAN
Recovery Min $13.70 $13.75 $13.80
Battery Tech/PM Mech. Max $22.00 $22.00 $22.00
IVES Trainers Raise $0.90 $0.65 $0.65

Job Titles

PAY GRADE 2

Y1 JAN Y2JAN Y3 JAN
Stock Control Min $14.70 $14.75 $14.80
Auditor Max $23.50 $23.50 $23.50
Maintenance Tech Raise $0.90 $0.65 $0.65

Job Titles

PAY GRADE 3

Y1 JAN Y2JAN Y3 JAN
Power Equipment Tech Min $16.70 $16.75 $16.80
Internal Hauler (Jockey) Max $24.50 $24.50 $24.50
Raise $0.90 $0.65 $0.65

a)    Employees will receive a $700 lump sum payment at the second full payroll after Contract Ratification, if the contract is ratified by the end of the day September 15, 2017.

b)    Minimum and maximum pay applies to base pay only.

c)    Upon reaching the max pay rate, an employee receives a lump sum payment in lieu of an hourly raise. (Increase X 2080 hours).

d)    Increase will become effective on the first full payroll following January 1, 2018, January 1, 2019 and January 1 ,2020.

e)    Weekly payday will occur on each Friday.

f)    No employee whose current wages are higher than listed above will suffer any reduction in their current wages each year of this Agreement.

g)    Employees will receive the negotiated wages each year of this Agreement until employees reach the Max pay rate in 1.1 above.

h)    $1.00 premium is already in the base pay for IVES trainers.

ARTICLE 37 - DURATION OF AGREEMENT

1.1    This Agreement will remain in effect from 12:01 am. September 1,2017 until midnight on November 15, 2020 without reopening rights for any purpose except by mutual consent of the Parties’ authorized agents or except as otherwise specified in this Agreement.

ARTICLE 38 - SAFETY SHOES

1.1    The Company will provide an annual (rolling 12 month) shoe reimbursement of up to $110.00 in year 1, $ 115.00 in year 2 and $ 125.00 in year 3 to all bargaining unit employees.

1.2    Employees must submit a receipt for reimbursement and complete the Safety Shoe Reimbursement Form.

ARTICLE 39 - MISSING PUNCHES

1.1     Employees will use their ID badge to punch in and out at the start and end of their shift and the start and end of their meal period.

1.2    If an employee does not have his or her badge, the employee will fill out a Missing Punch form and turn it into their supervisor by the end of their shift.

1.3    If a badge has been verified by the Company as damaged, the missing punch will be excused and the employee will be sent to Safety and Security for a new badge and a missing punch form will be filled out.

1.4    The Employer will post next to all time docks detailed instructions on how employees can check their punches.

1.5    Cameras can be used for any dispute concerning a missing punch.

1.6    Once memorialized, a pattern of missing punches is subject to corrective action per the Everyday Work Ways Missing Time Clock Punches Policy.

ARTICLE 40 - ATTENDANCE POLICY

Regular attendance and punctuality are essential for the smooth operation of this Company.

We want to establish uniform guidelines that will ensure a consistent and fair approach to solving attendance problems. Therefore, we have developed the following attendance policy:

A. Definitions

1)    Absence: An absence from work is defined as the failure of any employee to report to work when scheduled or working less than half of your shift. This applies to any assignment, be it a regular shift or overtime work. One day of absence will be considered one (1) occurrence. A second day of absence is considered a second occurrence, and so on. If an employee is out for three or more consecutive scheduled shifts, the employee will be required to submit written documentation from his/her medical provider, and these occurrences will be capped at one (1).

2)    Tardy: Reporting to work six (6) minutes or more after the scheduled shift start time and/or missing a time period less than half the scheduled shift. There will be a half (1/2) occurrence assessed for a tardy. (There is a five (5) minute grace period).

3)    Leave Early: Leaving prior to the scheduled end of shift and working more than half your shift. There will be a half (1/2) occurrence assessed for a leave early.

4)    Shift Interruption: Leaving for a period of time during a shift, other than rest sp;breaks, meal periods or Union business.

5)    Personal Time Off: A bank of hours from which an employee can draw from, at the employee's discretion to take time off from work.

6)    Paid Sick Time: A bank of hours from which an employee can draw from at the employee’s discretion to take time off from work.

7)    No Call/No Show: Employees must report their absence each day: failure to do so is considered a no call/no show. Also, failure to report one’s absence within three (3) hours after the start of his/her shift will be regarded as a no call/no show.

A no call no show will result in corrective action of a warning. If the employee is already in the progressive discipline process it will result in the next level of discipline. A no call no show is considered a policy violation and not an attendance Violation-

Exceptions: Vacations, Paid Sick Time, Personal Time Off, Jury Duty, Bereavement Leave, lack of work, days that the DC is closed, military leave, voluntary time off (offered by the Company) and layoff will not count as occurrences. Pre-approved time off and Pre-approved leave of absence (such as worker’s comp. and on the job injuries) will not count as occurrences.

Any employee who fails to call in and report to work for three (3) consecutive workdays is VOLUNTARILY terminating their employment. When an employee leaves the work premises prior to the scheduled end of the shift without notifying a manager, this event will be considered job abandonment, a voluntary resignation (walking off the job).

B.    Reporting Requirements

Employees must notify the Company via the location's Call out Procedure as defined in this article at least 30 minutes prior to the start of their shift for an absence.

C.    Guidelines for Attendance Control

Based on the number of occurrences in a twelve (12) month rolling period, an employee will be subject to corrective action under the following guidelines:

1)    Employees are allowed eight (8) occurrences in a rolling twelve (12) month period.

2)    Exceeding eight (8) occurrences in a rolling twelve (12) month period will result in corrective action.

When an attendance policy violation corrective action is actionable, subsequent infractions may result in the next level of corrective action. When a decision to terminate employment is based on exceeding eight (8) occurrences in a rolling twelve (12) month period, one (1) full occurrence (one absence or two half occurrences) must occur since the date of the Final

Warning for Attendance Policy Violations.

All employees will start with half of their occurrences once this policy becomes effective.

D.    All employees are required to report their absence using the following method:

Leave a message on the call out box. Proper call out procedure is:

a)    Call the main telephone number 1-410-642-6280

b)    Dial extension 4000

c)    Leave your name, supervisor's name, date and time you called, department and shift, employee ID.

E.    Employees who fail to follow the above procedure within the time limits specified by the Collective Bargaining Agreement will be subject to corrective action.

ARTICLE 41 - LABOR MANAGEMENT COMMITTEE

1.1    The Employer and Union agree to establish a Labor Management Committee ("LMC") to address issues or concerns that lie outside the scope of the Agreement but nonetheless are worthy of discussion. This forum should serve for the discussion and attempted resolution of issues which are matters of concern.

1.2    The LMC will be composed of up to three (3) representatives by the Union and up to three (3) representatives designated by the Employer. All members must be current employees as defined in Article 1 1.2, 1.3 Recognition. The LMC shall meet 1 time per month for the first 3 months following ratification and then quarterly thereafter (as a minimum) on a mutually agreeable date and time and the meetings will last no more than 90 minutes. Bargaining unit members will be paid for their time spent at such meetings up to 90 minutes.

1.3    An agenda of topics to be addressed for discussion via the LMC must be submitted via email at least 10 workdays prior to the scheduled meeting. If neither Party submits agenda topics, the meeting for that month or quarter is deemed canceled.

1.4    The parties acknowledge and agree the LMC is not a substitute for, nor may it be used to address issues which should be addressed through the Grievance and Arbitration process. Moreover, even if any issue is covered at the LMC, this does not constitute a proper or timely filing of the issue in accordance with Article 15,

Grievance Procedure or Article 7 Arbitration. Finally, Grievances nor Arbitration issues shall be considered an appropriate subject for discussion at LMC meetings, however, the subject matter which lead to Grievance or Arbitration can be discussed to attempt to avoid repeated filings of such grievances unless the subject is specifically addressed under the CBA.

1.5    The Labor Management Committee is not authorized to make changes to the terms of the CBA, or adopt a change in policy, protocol or practice thereof, unless said amendment(s) are made in accordance with Article 6, Alteration of the Agreement.

signees