COLLECTIVE BARGAINING AGREEMENT
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1 COLLECTIVE BARGAINING AGREEMENT WHEREAS Foreman Brothers, Inc. and Foreman Brothers Employees Collective Bargaining Unit are the parties to this Collective Bargaining Agreement and have negotiated this Collective Bargaining Agreement for the purpose of guaranteeing employees certain benefits and compensation while simultaneously insuring uninterrupted quality mail service for the United States Postal Service; and WHEREAS, following the parties negotiations they are desirous of reducing this Collective Bargaining Agreement to writing herein; and IT IS THEREFORE HEREBY AGREED as follows: 1. Parties a. Foreman Brothers, Inc., hereinafter referred to as "Employer" is a Michigan Corporation engaged in the business of transporting United States mail and has given authority to its President, Larry Foreman, to bind said Corporation to this Agreement. b. Foreman Brothers Employees Collective Bargaining Unit, hereinafter referred to as "employees" is a duly authorized Collective Bargaining Unit composed of all Foreman Brothers, Inc. hourly employees who perform service on U.S. Mail Contracts. The term hourly employees also includes leased drivers who on occasion provide temporary services to Employer during peak periods for purposes of the applicable wage and benefit provisions under the CBA. This CBA does not confer any additional rights or benefits on the leased drivers, including rights to regular or continued employment. 2. Term of Agreement The term of this Agreement shall begin at 12:01 a.m. on July 1, 2014 and shall terminate at midnight on June 30, The parties shall meet in April 2015 to reopen economic negotiations for the Agreement beginning July 1, Wages The employees covered by this Agreement, including truck drivers and mechanics as specified above, will receive payment of their wages on an hourly basis and are not entitled to any premium pay based on shift worked, hours worked in excess of forty (40) hours per week, weekend or holiday work, or for any other reason. Effective July 1, 2014 the hourly rate of pay for covered employees shall be as follows: Truck drivers on HCR 150YO will receive a rate of $20.70 per hour. Truck drivers on HCR s 48130, 483U4, 480L1, 488YO, 46028, 48039, 480M9 and 481Y1 will receive a rate of $20.97 per hour. Mechanics will receive an hourly rate of $22.64 per hour. 1
2 4. Job Descriptions As to those Employees classified as truck drivers, their job descriptions entail: driving, fueling, checking fluid levels, inspecting, and making minor repairs on their trucks when necessary. They shall also cooperate fully with all postal personnel in an effort to ensure that the mail moves smoothly with as few problems and conflicts as possible. They shall to the best of their ability ensure that the mail runs in compliance with the schedules established by the United States Postal Service. As to mechanics, they shall maintain, repair and service all the equipment owned by Employer herein. They shall also inspect said equipment in an effort to identify and prevent mechanical problems. Their job description shall not only include work in the shop but shall also include performance of road service and truck driver duties as employer may from time to time deem necessary, based on circumstances such as employee availability and work load. Should an employee that is classified as a mechanic be required to perform driver duties, Employer will nonetheless pay said mechanic at the mechanic's pay rate. It is further understood that workloads, vacation schedules, and other factors often make it necessary for employees to work unscheduled hours. Although Employer will attempt to assign said unscheduled hours to employees who desire additional hours, employees will not refuse to work said hours if necessary upon Employer s request. 5. Full Time - Part Time Status Employer employs both full time and part time employees. Employees who are regularly scheduled to work at least 30 hours per week are considered full-time after 60 days at that level. Employees who are regularly scheduled to work under 30 hours per week are considered parttime. Part time drivers on HCR 150Y0 will receive $4.91 in H&W up to 40 hours worked. Part time drivers on HCR s 48130, 483U4, 480L1, 488YO, 46028, 48039, 480M9, and 481Y1 will receive $4.98 in H&W up to 40 hours worked. H&W benefits are paid to a maximum of 40 hours worked in a single week on any combination of runs. 6. Life, Health & Disability Insurance Benefits Employer will provide all qualified full-time employees with health insurance, dental insurance, life insurance, and disability insurance. The hourly equivalent will cover the full individual premium costs for the benefits specified above for Michigan employees enrolled in the basic health insurance plan offered by the Employer. The hourly equivalent will also cover the full individual premium costs for the benefits specified above for employees outside of Michigan who will be enrolled in the plan offered for non-michigan employees. Employees will be responsible for all health and dental insurance plan deductibles and co-pays. Employees may elect to cover spouses and eligible dependents on the Employer-sponsored health and dental insurance plans, consistent with the terms of the written plan document, by paying the 2
3 full monthly premium for the amount of the additional coverage. Deductions for such coverage will be made from the employee s paycheck under the Employer-sponsored cafeteria plan (k) Benefits & Retirement Plan Employer shall maintain and provide an administrator for an employee 401(k) plan. Investment options will be made available through the administrator. As to all full time drivers on HCR 150YO, the Employer will pay cash benefit of $1.21 per hour up to 40 hours worked and $.34 per hour up to 40 hours worked into the Employer s Retirement Plan. For those full time drivers on HCR s 48130, 483U4, 480L1, 488YO, 46028, 48039, 480M9, and 481Y1, the Employer will pay cash benefit of $.94 per hour up to 40 hours worked and $.68 per hour up to 40 hours worked into the Employer s Retirement Plan. Employer will pay $.68 per hour into the Employer s Retirement Plan for full time mechanics. The Employer s obligation for payment of both the cash benefit and the Employer s contribution to the Retirement Plan is limited to a maximum of 40 hours of work per week. The terms of the 401k Plan document govern the 401k Plan. 8. Vacation Benefits Full-time employees are to receive vacation pay based upon the number of "qualifying years of service" that each employee has accumulated. Qualifying years of service shall be defined to be the total number of years that the employees' employment has met each and every one of the following criteria: A. Continuous employment with this employer. B. Full time status uninterrupted by periods of leave exceeding 90 days. C. Part time status based on qualifying years of service. Qualifying Employees will receive one of the following: forty (40) hours of vacation pay after they have earned one (1) qualifying year of service; eighty (80) hours of vacation pay after they have earned two (2) years of qualifying service; one hundred twenty (120) hours of vacation pay after they have earned five (5) years of qualifying service; or one hundred sixty (160) hours vacation pay after they have earned ten (10) years of qualifying service. Beginning Jan. 1 st 2015, vacation pay will be made payable to the employee on their anniversary date. Vacations are typically scheduled in January. For vacation scheduling purposes, the qualifying date for allowable time off will be the anniversary date of hire from the previous year. 3
4 All employee time off for vacations must have prior approval from Employer; such approval will not be unreasonably withheld. However, employer will have to consider the workload, employee scheduling, and other employees' vacation requests before granting or denying a request for a vacation. Part time employees will receive a pro-rata vacation check on the last pay of the year determined by the hours worked and eligibility requirements as stated above. 9. Holiday Pay Each full-time employee will receive eight (8) hours pay for each of ten (10) holidays that are acknowledged by the United States Postal Service provided as to each holiday that said employee is employed full time by employer on the date said holiday is observed. Part time employees will receive a pro-rata holiday payment based on hours worked in the week preceding the week in which the holiday falls. 10. Bereavement Pay All full-time employees will be paid 3 (8 hour) days for bereavement pay. Bereavement pay is specifically for the employee s immediate family members. Immediate family members include: husband, wife, child, step-child, mother, father, grandmother, grandfather, grandchildren and siblings. 11. Job Performance It is understood that Employer's business and employees' jobs are dependent upon providing prompt dependable service to the United States Post Office. Employees will follow the Employer s rules, policies, and procedures to ensure prompt dependable service to the United States Postal Service. Employer reserves the right to terminate employment at will with or without cause and with or without advance notice. No oral or written statement, policy or practice can change the at-will nature of employment. 12. Parties and Scope of Work With regard to the scope of the work covered by the Collective Bargaining Agreement, the parties agree that the Collective Bargaining Agreement is only intended to cover work performed under the contracts with the U.S. Postal Service, which is referred to as mail hauling. Any other types of work performed by the Employer or its employees, including but not limited to freight hauling, general labor, summer help, and work by trainees is not within the scope of the CBA and its terms and conditions do not apply to such work. 4
5 13. Summary The total wage and benefit packages as described above meets or exceeds the current locality Wage Determinations for each USPS contract. The Detroit locality base rate is $20.97, the total fringe benefits of $.94, $3.36 and $.68 equal $4.98. The Pittsburgh locality base rate is $20.70, the total fringe benefits of $1.21. $3.36 and $.34 equal $4.91. The current WD has a base rate of $20.83, the total fringe benefit is $5.03. The current WD has a base rate of $20.62, the total fringe benefit is $ Acknowledgment The parties hereto acknowledge that they have read and understood this Collective Bargaining Agreement and that said Agreement represents the entire Agreement between the parties hereto. By affixing their signatures hereto, employer through its authorized agent and Vice Pres., Jill Farris, and the Collective Bargaining Unit, through its authorized representatives, Rick Lacy, Rob Gadde, and Ron Smith hereby agree to be bound by its terms. The parties further acknowledge that this Agreement was entered into freely on the day of May Date: Jill Farris Foreman Bros., Inc. Vice President Date: Rick Lacy Bargaining Unit Rep Date: Rob Gadde Bargaining Unit Rep. 5
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