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Simpson Tacoma Kraft Company

801 Portland Avenue, Tacoma, Washington, 98421


Simpson Tacoma Kraft Company, LLC (Company) and USW International Union, Locals #12-237 & #12-586 (Unions), do hereby agree that the following understanding is applicable for the implementation of a twelve (12) hour shift compressed workweek. The Parties have agreed that the provisions set forth herein shall be effective September 1, 2009 and shall remain in effect as outlined below.

  1. It is understood by both the Company and the Union that problems may arise in working the compressed workweek schedule. Should this occur, the combined compressed workweek committee will meet to discuss the problems and make recommendations for resolution. If a resolution of problems cannot be agreed upon either party may cancel the twelve (12) hour shift program with thirty (30) days written notice.

  2. It is clearly understood by the Company and the Union that replacements must be available for relief purposes when needed. Replacements will come, in order, from the On-call extra-board, then from the qualified employees who most recently worked the vacant job or from employees next scheduled to work in the position. Employees are expected to fulfill this obligation.

  3. Overtime will not be paid if occurred as a result of initial implementation or discontinuation of the twelve (12) hour shift schedule should that be necessary in the future. The twelve (12) hour shift schedule will be from 7:30 to 7:30 unless otherwise agreed to by the parties.

  4. There will not be a negative impact on Safety, Absenteeism, or Productivity.

  5. The Parties intend that the implementation of the twelve (12) hour schedule will be cost neutral to the Mill. The Parties will not alter benefits unless there is mutual agreement.

  6. Classroom training will continue to be conducted during regular daytime business hours.

  7. The Parties will meet, as necessary, to review the functioning of twelve (12) hour shifts.

  8. Overtime, at the rate of time and one half, will be paid for all hours worked in excess of eight (8) hours in any one day at the compressed rate for hours worked on the compressed workweek schedule.

  9. Floating Holidays will be paid at the Book Rate (less the deduction for PIUMPF) of the job assigned for the week in which the floating holiday is taken. Effective June 1, 2004, each employee will be eligible for a total of three (3) twelve (12) hour floating holidays for the year. Also, employees who are required to work the 4th of July and Christmas Holiday period will earn an additional eight (8) hours of floating holiday time for each period worked. When an employee has accumulated twelve (12) hours of additional holiday time they may schedule another twelve (12) hour floating holiday. At the end of the vacation year employees will have the option of receiving pay for unused hours: or they may carry over unused hours (less than 12 hours) into the next year. Unused floating holiday hours can be used to cover absences for pay purposes as is currently practiced.

  10. Jury duty allowance will be paid as outlined in the current collective bargaining agreement. Such reimbursement shall not exceed twelve (12) hours pay in anyone day or forty eight (48) hours per week less remuneration for jury duty pay. This will be paid at straight time at the book rate (less the deduction for PIUMPF).

  11. The job rate of employees working the compressed workweek schedule will be adjusted to 0.8571429 (less deduction for PIUMPF) of the rate established by the current collective bargaining agreement.

  12. Overtime pay for work outside the regular compressed workweek schedule, call time, machine clothing time, allowance for failure to provide work, vacation pay, holiday pay, time worked on a holiday, and time worked on a Sunday will be paid at the established rate of pay as defined by the current collective bargaining agreement (less the deduction for PIUMPF). Employees who work in excess of twelve (12) hours during a holiday will be compensated at double time for those hours worked in excess of twelve (12) hours. Unscheduled time worked on a holiday will be paid at double time for the first eight (8) hours, then time and one half for the remaining four (4) hours.

  13. Bereavement pay will be paid for hours lost up to a total of twenty four (24) hours for the death of a regular employee’s immediate family member and up to forty hours for the death of an employee’s spouse or natural or adopted children.

  14. Shift differential will be paid for all hours worked on the night shift (7:30 P.M. to 7:30 A.M.) or shift times as otherwise agreed to by the parties. The night shift differential will be $1.00 per hour.

  15. Employees as defined in this memorandum, working the compressed workweek schedule, who are required to work fourteen (14) consecutive hours will be eligible for a meal, which will be hot if practical. Should an employee be required to work beyond fourteen (14) consecutive hours, they will be eligible for an additional meal for each four (4) hours worked.

  16. Employees working according to this agreement will follow the attached compressed workweek schedule. (Attached Exhibit A)

  17. The Company will make a reasonable effort to avoid scheduling extra-board employees for more than forty-eight (48) hours in a seven (7) day period.

  18. Extra board employees will receive overtime pay at book rate (time and one half) for all hours worked over three hundred and twenty hours (320) in an eight (8) week cycle. Should an extra board employee take paid time off during any week in the calculated eight (8) week/three hundred twenty (320) hours, that paid time off will not be used during that week to calculate any hours over forty (40) hours in that week, but will be used to calculate the three hundred twenty (320) hours at the rate of the hours worked. This provision applies only to vacations and not other forms of paid leave.

  1. Except as outlined above, the terms and conditions of the existing collective bargaining agreement remain unchanged.

Agreed to the 16th day of April, 2012

For Simpson Tacoma Kraft Company, LLC: For USW Local #237 & #12-586:

signed by John Conkle signed by Tim Handy 586

signed by John Brandt signed by David Van Pevenage

signed by Mike Wilson signed by Ryan Meyhoff