COLLECTIVE BARGAINING AGREEMENT

Collective Bargaining Agreement

You are currently viewing:

This Collective Bargaining Agreement involves

OREGON STEEL MILLS INC

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.

Title: COLLECTIVE BARGAINING AGREEMENT
Date: 3/16/2005
Industry: ISTEEL

Search Collective Bargaining Agreement by:

COLLECTIVE BARGAINING AGREEMENT

JANUARY 14, 2004

ROCKY MOUNTAIN STEEL MILLS

AND

UNITED STEELWORKERS OF AMERICA

LOCAL 2102

<PAGE>

TABLE OF CONTENTS

<TABLE>

<S> <C>

ARTICLE 1 - APPLICATION OF AGREEMENT ........................................................................ 2

Section 1 Purpose and Intent............................................................................... 2

Section 2 Administration................................................................................... 2

Section 3 Nondiscrimination................................................................................ 2

Section 4 Reference to Gender.............................................................................. 2

ARTICLE 2 - RECOGNITION ..................................................................................... 3

Section 1 Exclusive Bargaining Agent ...................................................................... 3

Section 2 Employees Covered ............................................................................... 3

Section 3 Dispute of Coverage ............................................................................. 3

ARTICLE 3 - MANAGEMENT RIGHTS ............................................................................... 4

ARTICLE 4 - UNION MEMBERSHIP ................................................................................ 5

Section 1 Membership ...................................................................................... 5

Section 2 Indemnity Clause ................................................................................ 5

Section 3 SOAR & PAC Check-Off ............................................................................ 5

Section 4 Rights of All Employees ......................................................................... 6

ARTICLE 5 - PLANT-WIDE CIVIL RIGHTS COMMITTEE ............................................................... 7

Section 1 Committee Members ............................................................................... 7

Section 2 Jurisdiction .................................................................................... 7

Section 3 Company Paid Meetings ........................................................................... 7

ARTICLE 6 - SAFETY AND HEALTH ............................................................................... 8

Section 1 Objectives and Obligations of the Parties ....................................................... 8

Section 2 Protective Devices, Wearing Apparel and Equipment ............................................... 9

Section 3 Disputes ........................................................................................ 9

Section 4 Joint and Safety and Health Committee ........................................................... 10

Section 5 Medical Records ................................................................................. 11

Section 6.................................................................................................... 12

ARTICLE 7 - SENIORITY ....................................................................................... 13

Section 1 Departments ..................................................................................... 13

Section 2 Seniority Computation ........................................................................... 14

Section 3 Promotions, Layoffs and Recalls ................................................................. 15

Section 4 Definition of Permanent and Temporary Vacancy ................................................... 17

Section 5 Permanent Vacancies and Transfer Rights ......................................................... 17

Section 6 Temporary Vacancies ............................................................................. 19

Section 7 Plant Wide Layoff and Pool Jobs ................................................................. 20

Section 8 Transfer Within or from One Local Union to Another Local Union .................................. 21

Section 9 Promotion to Supervisory Position ............................................................... 22

Section 10 Break in Service ................................................................................ 22

Section 11 Supervisors ..................................................................................... 23

Section 12 Leaves of Absence ............................................................................... 23

</TABLE>

<PAGE>

<TABLE>

<S> <C>

ARTICLE 8 - ADJUSTMENT OF GRIEVANCES ........................................................................ 25

Section 1 Purpose ......................................................................................... 25

Section 2 Procedure ....................................................................................... 25

Section 3 Miscellaneous ................................................................................... 26

Section 4 Expedited Arbitration ........................................................................... 27

ARTICLE 9 - DISCHARGE CASES ................................................................................. 30

Section 1 Provisionally Discharged ........................................................................ 30

Section 2 Discharge Hearing ............................................................................... 30

ARTICLE 10 - JOB CLASSIFICATIONS AND RATES OF PAY ........................................................... 32

Section 1 Rates of Pay .................................................................................... 32

Section 2 Changes in Job Classifications, Descriptions, or lines of progression ........................... 32

Section 3 Employee's Average Wage ......................................................................... 32

Section 4 Mill Mechanical and Electrical Technician - Standard Rates of Pay ............................... 33

Section 5 Leadman Compensation ............................................................................ 33

Section 6 Break-in Compensation ........................................................................... 33

Section 7 Temporary Promotion .............................................................................

ARTICLE 11 - HOURS OF WORK AND OVERTIME ..................................................................... 34

Section 1 Normal Hours of Work ............................................................................ 34

Section 2 Starting Time ................................................................................... 35

Section 3 Conditions Under Which Overtime Rates Shall Apply ............................................... 35

Section 4 Reporting Pay ................................................................................... 35

Section 5 Union-Related Activity .......................................................................... 35

Section 6 Notice for Scheduled Ten (10) Hour Shifts and Twelve (12) Hour Shifts ........................... 36

Section 7 Overtime Pay Clarification ...................................................................... 36

Section 8 Continuous Presence on the Job for Water Department Employees.................................... 36

ARTICLE 12 - SHIFT, SUNDAY AND SEVENTH DAY PREMIUM .......................................................... 38

Section 1 Shift Definitions ............................................................................... 38

Section 2 Amount of Hourly Premiums ....................................................................... 38

Section 3 Sunday Premium .................................................................................. 38

Section 4 Seventh Day Premium ............................................................................. 38

ARTICLE 13 - SHORT WEEK BENEFITS ............................................................................ 39

Section 1 Eligibility ..................................................................................... 39

Section 2 Days Deemed Hours Worked ........................................................................ 39

Section 3 Payroll Week .................................................................................... 39

Section 4 Benefit Amount .................................................................................. 39

ARTICLE 14 - PRIOR CF&I SERVICE ............................................................................. 40

ARTICLE 15 - HOLIDAYS ....................................................................................... 41

Section 1 Days ............................................................................................ 41

Section 2 Holiday Pay ..................................................................................... 41

</TABLE>

iii

<PAGE>

<TABLE>

<S> <C>

Section 3 Vacation and Holiday Pay ........................................................................ 42

ARTICLE 16 - VACATIONS ...................................................................................... 43

Section 1 Vacation Eligibility and Benefit ................................................................ 43

Section 2 Scheduling of Vacations ......................................................................... 43

Section 3 Vacation Pay Computation ........................................................................ 44

ARTICLE 17 - JURY AND WITNESS SERVICE ....................................................................... 45

ARTICLE 18 - BEREAVEMENT PAY ................................................................................ 46

ARTICLE 19 - MILITARY SERVICE ............................................................................... 47

ARTICLE 20 - ALCOHOL AND DRUG POLICY ........................................................................ 48

Section 1 Introduction .................................................................................... 48

Section 2 Alcohol and Drug Policies and Procedures ........................................................ 49

ARTICLE 21 - WELFARE BENEFITS INSURANCE ..................................................................... 54

ARTICLE 22 - SICKNESS AND ACCIDENT LEAVE .................................................................... 59

ARTICLE 23 - PENSIONS ....................................................................................... 62

ARTICLE 24 - CONTRACTING OUT ................................................................................ 64

Section 1 General Production & Services ................................................................... 64

Section 2 New Construction/Major Reconstruction ........................................................... 64

Section 3 Warranty and/or Manufacturer's Guarantee ........................................................ 64

Section 4 Emergency Situation ............................................................................. 64

Section 5 Contracting-Out Committee ....................................................................... 64

Section 6 District Director/Company Union Relations Representative ........................................ 64

Section 7 Notification for Contracting Out ................................................................ 64

ARTICLE 25 - PROHIBITION OF STRIKES AND LOCKOUTS ............................................................ 65

ARTICLE 26 - SAVINGS CLAUSE ................................................................................. 66

</TABLE>

<PAGE>

<TABLE>

<S> <C>

ARTICLE 27 - PAST LOCAL WORKING CONDITIONS, PRACTICES, WORK RULES AND PRIOR AGREEMENTS ...................... 67

Section 1 Past Local Working Conditions, Practices and Work Rules ......................................... 67

Section 2 Prior Agreements ................................................................................ 67

Section 3 Disciplinary Records ............................................................................ 67

Section 4 Local Working Conditions ........................................................................ 67

Section 5 Attendance Policy ............................................................................... 67

Section 6 Employee Records ................................................................................ 68

ARTICLE 28 - INTRAPLANT COMBINATIONS OR TRANSFERS ........................................................... 69

Section 1 Seniority Claims ................................................................................ 69

Section 2 Seniority Claims Resolution ..................................................................... 69

ARTICLE 29 - NEW FACILITIES ................................................................................. 70

Section 1 Manning Procedure ............................................................................... 70

Section 2 New Facility Training ........................................................................... 70

ARTICLE 30 - AUTOMATION AND TECHNOLOGICAL CHANGE ............................................................ 71

ARTICLE 31 - BULLETIN BOARDS ................................................................................ 72

ARTICLE 32 - SUCCESSORSHIP .................................................................................. 73

ARTICLE 33 - SHUT DOWN ALLOWANCE ............................................................................ 74

ARTICLE 34 - PROFIT PARTICIPATION ........................................................................... 76

ARTICLE 35 - 401(k) SAVINGS PLAN ............................................................................ 79

ARTICLE 36 - NEUTRALITY ..................................................................................... 80

ARTICLE 37 - INVESTMENT COMMITMENT .......................................................................... 84

ARTICLE 38 - JOINT EFFORTS .................................................................................. 85

ARTICLE 39 - BOARD OF DIRECTORS ............................................................................. 86

ARTICLE 40 - MISCELLANEOUS .................................................................................. 87

Section 1 Termination ..................................................................................... 87

Section 2 Mailing of Notices .............................................................................. 87

</TABLE>

APPENDIX A Summary of Active Health Care Benefits

APPENDIX B Lines of Progression

APPENDIX C Educational Assistance

<PAGE>

APPENDIX D New Employee Orientation

APPENDIX E Apprenticeship

APPENDIX F Qualifications

<PAGE>

AGREEMENT

AGREEMENT dated September 10, 2005, between Rocky Mountain Steel Mills,

hereinafter referred to as the "Company," and UNITED STEELWORKERS OF AMERICA, on

behalf of Local Union 2102, hereinafter referred to as the "Union," providing

for cooperative human relations at the Company's Pueblo, Colorado Operations.

<PAGE>

ARTICLE 1 - APPLICATION OF AGREEMENT

Section 1. Purpose and Intent. It is the intent and purpose of the parties

hereto to set forth herein the basic agreement between them in respect to rates

of pay, hours of work, conditions of employment, and the method of adjusting

alleged grievances to be observed between the parties hereto.

Section 2. Administration. The representatives of the Company and the Union

shall continue to provide each other with such advance notice as is reasonable

under the circumstances on all matters of importance in the administration of

the terms of the Agreement. The Company will supply on a monthly basis notice to

the Union of all intraplant transfers, new hires, layoffs, discharges,

terminations, resignations, leaves of absence, sick leave, retirements or

deaths.

Section 3. Nondiscrimination. It is the continuing policy of the Company and the

Union that the provisions of this Agreement shall be applied to all Employees

without regard to race, color, religious creed, national origin, sex, age,

disability, handicap, or status as Vietnam Era and Disabled Veterans or any

other legally protected status.

The Company shall take necessary steps to provide reasonable accommodation for

workers with disabilities as required by the Americans with Disabilities Act.

Should such accommodation have an effect on other bargaining unit members, the

Company shall immediately bring the matter to the attention of the Union. The

Company, Union and the Employee requiring accommodation will then take up the

issue with the objective being a satisfactory resolution for all parties

involved subject to Article 8 Grievance Procedure. The Company and the Union

both recognize the legal obligation placed upon the Company by the Americans

with Disabilities Act.

Section 4. Reference to Gender. Throughout this Agreement, in referring to

Employees, the masculine gender is used for convenience only and shall refer

both to males and females.

<PAGE>

ARTICLE 2 - RECOGNITION

Section 1. Exclusive Bargaining Agent. In accordance with and subject to the

provisions of the National Labor Relations Act, the Company recognizes the Union

as the exclusive bargaining agency of the production and maintenance Employees

and the Water Department Employees (with the exceptions hereinafter specified in

this Article) of the Company in the Pueblo, Colorado, plant for the purpose of

collective bargaining in respect to rates of pay, hours of work and conditions

of employment.

Section 2. Employees Covered. The term, "Employees," as used in this Agreement

shall not include: executives, supervisors, technical, office and clerical

Employees, plant protection, first aid providers and nurses, mill office clerks,

professional Employees, drafters, chemists, quality assurance and metallurgical

department Employees, C & W Railway and Plant transportation facility Employees

at Pueblo, Colorado.

Section 3. Dispute of Coverage. Any differences which shall arise between the

Company and the Union, as to whether or not any individual Employee is or is not

included within the term Employee as hereinabove defined, shall be handled as a

grievance in accordance with the procedures set forth in Article 8 of this

Agreement.

<PAGE>

ARTICLE 3 - MANAGEMENT RIGHTS

Except as specifically provided for in this Agreement, the Employer retains all

rights and functions vested in it as owner and operator of its properties and

business including, but not limited to, the Management of the Plant, the

determination of the size of the work force, the right to establish reasonable

and job-related qualifications and to determine whether Employees are qualified,

the direction of the work force, the right to hire, suspend or discharge for

just cause, the maintenance of discipline and the assignment of Employees to

jobs, and the performance of all other functions inherent in the administration,

management, control and/or direction of the business.

Management shall not discriminate against any Employee or applicant for

employment because of his membership in, or lack of membership in the Union or

lawful activity on behalf of the Union.

<PAGE>

ARTICLE 4 - UNION MEMBERSHIP

Section 1. Membership.

A. Condition of Employment. Each Employee who on the date of this Agreement is a

member of Local Union 2102 in good standing, and each Employee who becomes a

member after that date shall, as a condition of employment, maintain his

membership in the Union. Each Employee hired to perform bargaining unit work on

or after the date of this Agreement shall, as a condition of employment,

commencing on the 30th day following the beginning of such employment or the

date of this Agreement, whichever is later, acquire and maintain membership in

the Union. The foregoing provisions shall be effective in accordance with, and

consistent with the application of, provisions of federal and state law.

B. Loss of Membership. For the purposes of this Section, an Employee shall not

be deemed to have lost his membership in the Union in good standing until the

International Secretary Treasurer of the Union shall have determined that the

membership of such Employee in the Union is not in good standing and shall have

given the Company a notice in writing.

C. Checkoff. Every pay period, the Company will deduct from the pay of each

Employee who so authorizes in writing an amount equal to 1.3% of said member's

total earnings during the month provided that monthly dues shall not be less

than $ 5.00 and provided further that monthly dues shall not be more than 2.5

times the member's average hourly earnings. Such average earnings shall be

defined and calculated by the definition and instructions as established by the

International Union.

In cases of earnings insufficient in any such calculation pay period to cover

deduction of dues, the dues shall be calculated on the basis of and deducted

from earnings in the next pay period in which there are sufficient earnings,

subject to present provisions and practices as to accumulation of dues. The

Company will deduct initiation fees and assessments as designated by the

International Secretary-Treasurer. No deduction shall be made if the Company has

not been furnished an authorization for such deduction by the individual

Employee. After deductions from each individual Employee's paycheck, a total

amount of the deductions shall be remitted to the Union.

Section 2. Indemnity Clause. The Union shall indemnify the Company and hold it

harmless against any and all suits, claims, demands and liabilities that shall

arise out of or by reason of any action that shall be taken by the Company for

the purpose of complying with the foregoing provisions of this Article, or in

reliance on any list, notice or assignment which shall have been furnished to

the Company under any of such provisions.

Section 3. SOAR & PAC Check-Off.

A. The Company will implement a dues and PAC deduction program for retirees who

are members of the Steelworkers Organization of Active Retirees (SOAR) who have

submitted authorization for such deductions from their pension on a form

acceptable to the Company.

B. The Company will implement a PAC deduction program for active employees who

have submitted authorization for such deductions from their wages on a form

acceptable to the

<PAGE>

Company, and shall allow authorized Union officials to so solicit within the

Plant for such contributions and/or authorizations.

C. The Union shall indemnify and save the Company harmless against any and all

claims, demands, suits, or other forms of liability that shall arise out of or

by reason of action taken or not taken by the Company for the Purpose of

complying with any of the provisions of these understandings, or in reliance on

any list, notice or assignment furnished under any of such provisions.

Section 4. Rights of All Employees.

The purpose of the Company and the Union in entering into this labor contract is

to set forth their agreement so as to promote orderly and peaceful relations

with the employees, to achieve uninterrupted operations and to achieve the

highest level of employee performance consistent with safety, good health and

sustained effort. The Company and the Union encourage the highest possible

degree of friendly, cooperative relationships at all levels and with and between

all employees. The officers of the Company and the Union realize that this goal

depends on more than words in a labor agreement, that it depends primarily on

attitudes between people in their respective organizations and at all levels of

responsibility. They believe that proper attitudes must be based on full

understanding of and regard for the respective rights and responsibilities of

both the Company and the Union. They believe also that proper attitudes are of

major importance where day-to-day operations and administration of the labor

agreement demand fairness and understanding.

They believe these attitudes can be encouraged best when it is made clear that

Company and Union officials, whose duties involved negotiation of this labor

agreement, are not anti-union or anti-company, but are sincerely concerned with

the best interests and well-being of the business and all employees.

These principles shall best be displayed by guaranteeing that each Employee

shall be granted the following rights:

A. Each Employee shall be treated with dignity and respect.

B. Each Employee shall be granted the rights provided by law.

C. Each Employee will be encouraged to have input into improving

processes or methods.

<PAGE>

ARTICLE 5 - PLANT-WIDE CIVIL RIGHTS COMMITTEE

Section 1. Committee Members. One joint Plant-wide Civil Rights Committee shall

be established at the Pueblo Plant. The joint Committee shall consist of three

(3) members designated by Local Union 2102, two (2) members designated by Local

Union 3267 and five (5) members designated by the Company. The Company and Union

representatives will meet at mutually agreeable times, but not less than once

every three months. The Committee members will establish the rules and

procedures under which it shall operate by mutual agreement.

Section 2. Jurisdiction. The Committee will not have jurisdiction over

grievances or process grievances, but may refer unresolved problems to the

grievance procedure.

Section 3. Company Paid Meetings. When the Company schedules a meeting or

requests the Committee members to perform other duties at times when the members

may be scheduled at their normal job, the Committee Members shall be paid by the

Company at the Employee's regular rate. Scheduled hours paid under this Article

shall be counted for the purpose of computing weekly overtime, but shall not

exceed eight (8) hours.

<PAGE>

ARTICLE 6 - SAFETY AND HEALTH

Section 1. Objectives and Obligations of the Parties.

A. The Company and the Union will cooperate in the objectives of maintaining a

safe and healthful workplace for all Employees and of eliminating accidents and

health hazards. The Company operates with the assumption that all injuries are

avoidable, and that working safely is the personal responsibility of each

Employee, the Union and the Company. The Company shall make reasonable

provisions for the safety, training and health of its Employees at the plant

during the hours of their employment. The Company, the Union and the Employees

recognize their obligations and/or rights under existing federal and state laws

with respect to safety and health matters.

B. The Company is required by law to maintain Material Safety Data Sheets (MSDS)

on all potentially hazardous materials used in the plant and make this

information reasonably available to its Employees; label pipes, containers or

hazardous materials; and train Employees in the safe use of these materials.

C. The Company will maintain a program of periodic in-plant air sampling and

noise testing under the direction of qualified personnel. Where the Union

Co-Chairman of the Joint Safety and Health Committee (referred to hereinafter as

the "JSHC") alleges a significant on the job health hazard due to in-plant air

pollution, noise or potential ionizing radiation, the Company will make such

tests and investigations as may be appropriate and shall notify the Union

Co-Chairman of the JSHC when such a test is to take place. A report based on

such additional tests and investigations shall be provided to, reviewed and

discussed with the JSHC. For such surveys conducted at the request of the Union

Co-Chairman of the JSHC, or by an Employee, a written summary and analysis of

the sampling and testing results and the conclusions of the investigation shall

be provided to the JSHC.

D. An Employee shall suffer no loss of pay the day on which he receives an

injury on the job provided he visits a doctor designated by the Employer on that

day and provided further he follows the doctor's instructions as to whether to

return or not return to work on that day. The Company shall comply with the

written orders of the Doctor regarding an Employee's return to work. If the

Company does not, the Employee can follow the written orders without reprisal in

any form. Hours not worked, but paid for, on the day of the injury shall be

counted for the purpose of computing weekly overtime but shall not exceed eight

(8) hours. An Employee who is injured on the job must report the injury to his

supervisor immediately and assist in filling out an accident report form as

requested by supervision. In the case where an Employee is in need of medical

attention after hours from a work-related accident, then the Employee must

attempt to contact a member of Plant Protection to arrange for such medical

attention. Plant Protection will then notify the appropriate members of

management. If an Employee is required by the doctor to obtain additional

medical attention on subsequent days and such attention cannot be scheduled

outside working hours, such necessary time away from work shall not be counted

against the Employee's attendance record. If the follow-up care is scheduled

directly by the Company's medical department and cannot be scheduled outside

working hours, hours away from work shall also be paid as outlined in the above

paragraph, as long as the Employee actually works the day the follow-up

treatment is received.

<PAGE>

Section 2. Protective Devices, Wearing Apparel and Equipment. Protective

devices, wearing apparel and other equipment necessary to properly protect

Employees from injury shall be provided and maintained by the Company. Goggles,

gas masks, face shields, respirators, special purpose gloves, fireproof,

waterproof or acid proof protective clothing when necessary and required by OSHA

shall be provided and maintained by the Company without cost, except that the

Company may assess a fair charge to cover loss or willful destruction thereof by

the Employee. During the term of the Contract, the Company shall reimburse each

Employee up to $250 for the purchase of safety shoes. After the purchase of the

first pair, the Employee shall obtain authorization from the General Foreman or

his designee, for the purchase of the next pair. In addition, the Company agrees

that except for shoes lost, stolen or damaged through negligence or willful

destruction, if an Employee's safety shoes are damaged due to abnormal

circumstances, the Company will reimburse the Employee for the fair value of the

shoes. Probationary Employees will be reimbursed after the probationary period

and will fall under contractual maximums.

During the term of the Contract, the Company shall reimburse each Employee for

one (1) pair of prescription safety glasses. However, if an Employee's

prescription changes or the prescription safety glasses are damaged due to the

working environment after the purchase of the first pair, the Company will

reimburse the Employee for additional glasses.

The Company will provide fresh bottled water where necessary and approved by the

Company.

Proper heating and ventilating systems shall be installed where needed and

maintained in good working condition.

Section 3. Disputes.

A. An Employee, or group of Employees, who believe that they are being required

to work under conditions which are unsafe or unhealthy beyond the normal hazard

inherent in the operation in question, shall have the right to:

1. File a grievance in the third step of the grievance procedure for

preferred handling in such procedure and arbitration; and/or

2. Relief from the job or jobs, without loss of their right to return

to such job or jobs, and, at Management's discretion, assignment to

such other employment as may be available in the plant; provided,

however, that no Employee, other than communicating the facts

relating to the safety of the job, shall take any steps to prevent

another Employee from working on the job.

Management will, as soon as possible, "rope off," "mark off," or otherwise

indicate any potential hazard or danger which is beyond the normal hazards or

dangers inherent in the operations. A joint investigation will then be held

involving Management, the Union-designated Department Safety Representative and

the appropriate Local Union President or his designee.

B. When an Employee does have a right to relief from the job under this Article

6, such Employee will be able to exercise this right without threat of

discharge.

<PAGE>

Section 4. Joint Safety and Health Committee.

A. A Joint Safety and Health Committee consisting of at least four (4) Employees

from Local 2102 and three (3) Employees from Local 3267, two (2) from clerical

and technical and one (1) from plant protection, designated by the Union (the

Union Co-Chair shall rotate between Local Union 2102 and 3267 every six (6)

months) and an equal number of Management members, if Management so desires,

shall be established in the plant. By mutual agreement the Committee may be

increased. The Union and the Company shall designate their respective

Co-Chairman and shall certify to each other in writing such Co-Chairman and

Committee members. The Committee shall hold monthly meetings at times determined

by the Co-Chairmen who may also agree to hold special meetings. Each Co-Chairman

shall submit a proposed agenda to the other Co-Chairman at least five (5) days

prior to the monthly meeting. The Company Co-Chairman shall provide the Union

Co-Chairman with minutes of the monthly meeting. Prior to such monthly meetings,

the Co-Chairmen or their designees shall engage in an inspection of mutually

selected areas of the plant. At the conclusion of the inspection, a written

report shall be prepared by the Company setting forth their findings. One copy

of the report shall be furnished to the Union Co-Chairman. Copies of safety

reports (accident investigations) will be given to the Union Co-Chair. The

function of the Committee shall be to advise with Plant Management concerning

safety and health and to discuss legitimate safety and health matters but not to

handle grievances. In the discharge of its function, the Committee shall

consider existing practices and rules relating to safety and health, formulate

suggested changes in existing practices and rules, recommend adoption of new

practices and rules, and review accident statistics including OSHA Form 200 and

trends and disabling injuries which have occurred in the Plant and make

appropriate recommendations. When the Company schedules a meeting or requests

the Committee members to perform other duties, the Employees shall be paid by

the Company at the Committee Member's regular rate. Scheduled hours paid under

this Section shall be counted for the purpose of computing weekly overtime, but

shall not exceed eight (8) hours.

B. The Union Co-Chairman or his designee will be afforded time off when working

conditions so allow to visit departments at all reasonable times for the purpose

of transacting the legitimate business of the Committee, after notice to the

head of the department to be visited or his designated representative and if the

Committee member is then at work, permission (which shall not be unreasonably

withheld) from his own department head or his designated representative. If the

Union Co-Chairman or his designee is not at work, he shall be granted access to

the Plant at all reasonable times for the purpose of conducting the legitimate

business of the Committee after approval by the head of the department to be

visited or his designated representative (which shall not be unreasonably

denied). If approval is denied, the Employee Resources Department will be

contacted to resolve the issue.

C. Each department manager shall ensure that a formal safety inspection is

conducted in his area on a monthly basis. This inspection shall be conducted by

the union designated department safety representative(s) and the department

manager (or by their designees). It shall be the responsibility of the Manager

of Safety or his designee to notify the President of each Local when the

inspection is rescheduled. A copy of their findings shall be posted in the

department. These inspections are not meant to be a substitute for each

Employee's daily attention to safety matters, but rather to serve as protection

against overlooking the familiar.

<PAGE>

D. In the event the Company requires an Employee to testify at a formal

investigation into the causes of a disabling injury, the Company shall arrange

to have the Union Co-Chairman of the JSHC or his designee to be present as a

representative at the proceedings for the period of time required to take the

Employee's testimony. The Union Co-Chairman will be furnished with a copy of

such record as is made of the Employee's testimony and a copy of the Injury,

Accident, Near-Miss Investigation Report. In addition, in the case of accidents

which resulted in disabling injury or death or accidents which could have

resulted in disabling injury or death and require a fact-finding investigation,

the Company will, as soon as is possible after such accident, notify the Union

Co-Chairman of the Committee, or his designee, who shall have the right to visit

the scene of the accident promptly upon such notification, if he so desires,

accompanied by the Company Co-Chairman or his designee, and the Company will add

the Union Co-Chairman of the JSHC, or his designee, to the notification list for

such accidents. The Company shall notify the Local Union Presidents whenever an

injury occurs, no later than the following workday. The Local Union Presidents

shall notify the Company of their designees. After making its investigation, the

Company will supply to the Union Co-Chairman of the JSHC a statement of the

nature of the injury, the circumstances of the accident, and any recommendations

available at that time. In such cases, when requested by the Union Co-Chairman,

the Company Co-Chairman of the JSHC, or his designee, will review the statement

with the Union Co-Chairman. Also, in such cases, the Company Co-Chairman of the

JSHC, or his designee, when requested by the Union Co-Chairman, will visit the

scene of the accident with the Union Co-Chairman or in his absence, his

designee. All injuries will have a joint fact finding investigation which would

include the Union designated departmental safety representative, and the

appropriate Local Union President involved if he so desires.

E. Once each year the Company will provide to the Union the OSHA Form 200,

Summary of Occupational Injuries and Illnesses. When requested, the Company will

also provide a copy of the OSHA Form 200 Log or Occupational Injuries and

Illnesses or its equivalent.

F. It will be consistent with the foregoing functions of the JSHC, the

International Union, Local Unions, Union Safety Committees and its officers,

Employees and representatives shall not be liable for any work-connected

injuries, disabilities or diseases which may be incurred by Employees.

G. If in the event of special circumstances, the Director of the International

Union Safety and Health Department or a member of his staff desires access to

the plant, such access shall be approved on a case-by-case basis by the Company.

The Company may accompany the Union Representative.

Section 5. Medical Records.

The Company shall maintain the confidentiality of reports of medical

examinations of its employees and shall only furnish such reports to a physician

designated by the employee upon written authorization of the employee; provided

that the Company may use or supply medical examination reports of its employees

in response to subpoenas, requests to the Company by any governmental agency

authorized by law to obtain such reports, and in arbitration or litigation of

any claim or action involving the Company.

<PAGE>

Section 6.

In cases where an Employee is released for work by his personal physician

and through no fault of his own, he is unable to see the Company's medical

doctor to be released during normal business hours, and as a result misses

scheduled work, the Company will reimburse such Employee for all lost time.

<PAGE>

ARTICLE 7 - SENIORITY

Section 1. Departments

A. Departments. Seniority shall be applied in the following departments:

A. Steelmaking D. Seamless Mill G. Water

B. Rod/Bar Mill E. Maintenance

C. Rail Mill F. Environmental

Each department shall have its own seniority listing. Lines of progression

including identification of entry-level positions will be established in each

department to promote maximum effectiveness within and between departments.

Current lines of progression are contained in Appendix B.

For the purposes of this Article 7, Employees assigned to a department

identified in the above section will not be restricted from performing any jobs

within that department in order to maximize operating efficiency or provide the

Employee the opportunity to work 32 hours or more.

B. Seniority & Preference

1. The parties agree that some flexibility or reassignments may, at times,

be necessary to achieve the operating goals of the Company, and the Company

reserves the right to make such necessary reassignments.

2. All things being relatively equal, whenever an opening occurs,

Employees, if qualified, shall be allowed to utilize their seniority to choose

the job assignment within their respective boxed classifications and for

purposes of shift preference and preferred days off. Any such reassignment shall

be limited to no more than three (3) moves per temporary vacancy. Such

preference does not extend to preference regarding the selection of crews on

rotating shifts or temporary vacancies of three (3) weeks or less. The right to

assign employees to fill vacancies of three weeks or less shall not be exercised

in an arbitrary, bad faith or discriminatory fashion.

3. During periods of downtime, such as scheduled maintenance, inventory or

an unexpected equipment breakdown, that time may be utilized to train and

educate the Employees on their jobs or other jobs, and in matters of safety and

safe operating procedures as applicable unless such downtime becomes excessive

and/or sufficient training is unavailable or unnecessary.

4. When a question arises concerning any work assignment, an Employee may

protest the assignment through the grievance and arbitration procedure, but

shall not refuse to do the work, pending final settlement of the dispute.

However, the parties agree to apply the rule of reason to any such dispute as

may arise under the provisions of this agreement.

5. It is furthermore agreed that in the event of a permanent vacancy

created by an Employee retiring, dying, or promotion, or increases or decreases

in operating levels, any such

<PAGE>

Employee desiring reassignment shall notify supervision in writing of their

desire within five (5) calendar days after the schedule has been posted of his

preference for such reassignment as listed in paragraph 2 above. Any such

reassignment shall be limited to no more than six (6) moves per instance.

Management reserves the right to delay allowing such preferences up to 60 days

to provide necessary training.

6. Regarding the positions of MMT & MET:

a. The Company will establish a preference list in the Employee

Resources Department that such Employees may sign indicating their

wish to be considered for permanent vacancies (MMT/MET) in other

areas of the Plant.

b. Employees may have their name on only two lists at any given

time, and if such Employee is reassigned to his area of choice, they

may not again request consideration for a period of 12 months.

c. It is understood that Management reserves the right to deny or

delay making reassignments, if such reassignment could have a

negative impact on the orderliness or efficiency of the operations,

including depleting an area of a necessary balance of skills in any

particular department; however, no request will be unreasonably

denied.

d. It is agreed that there will be no more than three moves from a

single vacancy.

7. In addition, two Employees scheduled on the same assignment may request

of their General Foreman or designee to temporarily trade shifts as long as this

does not impose any additional financial liability on the Company, nor can it

effect the efficiency or orderliness of the operation.

Section 2. Seniority Computation.

A. For the purposes of this Article 7, seniority shall be based upon Plant

continuous service, which shall mean continuous service within the Production

and Maintenance Unit with CF&I Steel and Rocky Mountain Steel Mills at the

Pueblo Plant. In the event of a tie, the tie shall be broken by who established

job rights in the department first, then by lottery. It is understood and agreed

that an Employee who transfers under Section 7 of this Article 7 will establish

seniority ahead of any new hires for the vacancy the Employee is transferring

to. If more than one Employee transfers for the same vacancy, the Employee(s)

will be ranked for seniority purposes by their plant continuous service date in

the other local bargaining unit.

B. A new Employee and one who is reemployed after a break in his continuous

service, shall not acquire seniority until the expiration of Seven Hundred and

Twenty (720) hours of actual work following his employment, at which time he

shall receive credit for continuous service during such period. If said Employee

is terminated at will at the sole discretion of the Company during the first

Seven Hundred and Twenty (720) hours of actual work, said termination shall not

be the subject of any grievance or arbitration against the Company.

<PAGE>

In the event a probationary Employee is laid off and later recalled within

twelve (12) months from the date of first employment and later completes the

Seven Hundred and Twenty (720) hours of probation, that Employee will acquire

seniority based on his original date of hire.

If an Employee is recalled or rehired within twelve (12) months from the date of

first employment, any prior hours worked shall count toward the Seven Hundred

and Twenty (720) hours of probation.

C. The Company will maintain an up-to-date seniority list, and this list shall

be made available to representatives of the Union or individual Employees at all

reasonable times. A plant wide list will be provided to the Local Union and

International representatives of the Union, and it shall include the Employee's

name, continuous service date, address, social security and payroll numbers,

birth date and phone number. The Company and the Union will agree upon a master

departmental seniority list, pursuant to the provisions of and for use in

connection with, Article 7 hereof. The Company and the Union mutually agree to

reach similar agreement semi-annually thereafter for the purpose of maintaining

an up-to-date master seniority list for each department posted on appropriate

departmental bulletin boards and at Payroll.

The position on the seniority list for Employees hired on or after the effective

date of this contract and starting work on the same date and in the same

department, will be resolved by lottery. The results will be permanent and shall

be applied for all contractual seniority provisions.

Section 3. Promotions, Layoffs and Recalls.

A. In all cases of promotion, decrease in forces, or recall after layoffs

(except to or from positions excluded under the definition of "Employees" in

Article 2 - Recognition or except as expressly provided in Section 5 below)

decisions shall be based first upon qualifications and then upon length of

continuous service. Qualifications shall be based first upon the employee's

ability to perform the work, or if no employee is able to perform the work, then

upon the employee's capability of performing the work within a reasonable period

of time with reasonable training. In the event two or more employees are

qualified, the job shall be awarded to the senior employee. The Company shall

provide, upon request by the Union, a list of the qualifications utilized for a

particular job awarded. In the event an Employee is determined by the Company

not to be qualified for a particular job, that decision shall be subject to the

grievance and arbitration procedure.

B. When a permanent decrease in force takes place, Employees will be allowed to

exercise their seniority in the line of progression or in the department

whichever is appropriate, taking into account the previous jobs they have held

within the department. If an Employee has been disqualified on a lower job he

will not be allowed to displace an employee with less seniority on that job.

C. Employees will be notified of recall by Certified Letter, return receipt

requested, mailed to the last known address of the Employee. The Employee must

report for work within five (5) calendar days from the date the letter was

received or within seven (7) calendar days of mailing. A copy of the letter will

be mailed, faxed or delivered to the Financial Secretary of the Local Union. The

Company will consider requests for extension of the time period, provided the

<PAGE>

request is made by the Employee within the five (5) calendar day period from the

date of receipt. If the notice is undeliverable at the last known address, the

Company will be considered to have complied with the notice requirement and the

Employee will break continuous service for all purposes. Failure to accept

recall to a temporary vacancy shall not be cause for a break in continuous

service, unless the Company has an insufficient number of qualified Employees,

in which case they can require the junior qualified Employee(s) to return to

work.

In order to expedite the recall, the Company may attempt to contact the

Employees with recall rights by telephone or in person. Where the Company is

successful in making such contact, the Employee must report to work within five

(5) calendar days from the contact unless the Company granted an extension of

the time period.

D. Voluntary Layoff

1. In certain cases Employees may elect to go on layoff on a voluntary

basis. Any such voluntary layoffs will be deemed temporary and the return

rights of any such Employees to their regular job shall not be affected

due to their election to take voluntary layoff. Employees will be allowed

to indicate whether to accept or remain on a job in the department or go

on voluntary layoff status. Employees electing voluntary layoff must make

their election by Tuesday of the week preceding the week their layoff

would be effective, unless otherwise approved by Management.

2. It is understood that such Employees electing layoff will be covered

under the medical, dental and life insurance programs until the end of the

month following the month they last worked as provided by the insurance

agreements.

3. Due to the possible effect on the efficiency of the operations,

Management reserves the right to determine if and when any Employee who

has chosen voluntary layoff will be allowed to go to layoff status.

4. Employees on voluntary layoff status will be job attached for the

maximum period allowable by law from the date of original layoff.

5. Nothing in this Section will in any way affect any Employee's rights or

obligations with respect to their retirement benefits as defined in the

appropriate pension plans or any other article of the Basic Agreement,

except as specified in Paragraph 8 below.

6. If an Employee who has elected to go on voluntary layoff status later

decides he would prefer to return to active employment, he must give the

department seven (7) calendar days written notice prior to the posting of

the weekly work schedule. It is understood the Employee would be returned

to the position he would have held as though he had elected to not take

voluntary layoff. If a senior Employee, who would not normally be

affected, elects to take voluntary lay off, his absence will be treated as

a temporary vacancy.

7. Any Employee who accepts these provisions will be required to read,

sign and date an appropriate form indicating their full and complete

acknowledgment to go on voluntary layoff status. Such acknowledgment shall

be approved by the department manager and main grievance man.

<PAGE>

8. Local Unions #2102 and #3267 agree that no grievances will be filed as

a result of this understanding and both parties agree that if there is a

dispute regarding this Section, they will both try diligently to resolve

such complaint.

F. Voluntary Demotion

In cases where an Employee wishes to be demoted to a lower job, and

Management agrees to such request, the Employee will be placed on the next

lowest job in the departmental line of progression on which he is

qualified. In such cases the Employee will relinquish his immediate job

rights on the higher position. This Employee may reestablish rights to

that job by accepting and filling a temporary vacancy of a week or more.

In the event of a demotion, the Employee, department manager and main

grievance man must agree in writing.

Section 4. Definition of Permanent & Temporary Vacancy.

All vacancies resulting from increases or decreases in operating levels for a

period of more than thirty (30) calendar days ninety (90) calendar days in the

case of unusual circumstances, or created by an Employee promotion, death,

discharge, voluntary termination, retirement or transfer out of the department,

shall be treated as permanent. All other vacancies shall be deemed temporary and

not permanent for the purposes of this Article.

Section 5. Permanent Vacancies & Transfer Rights. When a permanent vacancy

exists, the following procedures shall apply:

Step 1. Permanent vacancies within a line of progression shall be filled

from within the first step of competition in the line of progression below or

above the job being filled. Each succeeding vacancy in the line of progression

shall be filled in the same manner. Any Employee who transfers under this step

shall have the right to return to the job from which he transferred within five

(5) working days or less or the Company may return him to his former job because

he cannot meet the requirements of the new job after a minimum of five (5)

working days, but before 30 calendar days from the date of transfer. An Employee

may only exercise his 5-day return rights twice within an eighteen (18) month

period commencing with the date he first exercised such rights.

a) Permanent vacancies will be posted in the department for five (5)

working days. Qualified Employees established in the box above and below the box

where the vacancies exists will be allowed to exercise their seniority before

those who have not qualified for the opening. If there are no qualified

Employees in either box or none desire it, the vacancy will be awarded to the

senior Employee who desires it. Resultant vacancies will be filled in the same

manner.

b) If no Employee in the box above or below the box where the vacancy

exists desires to fill the vacancy, previous qualified Employees in the box in

the same branch of the line of progression where the vacancy exists will be

allowed to exercise their seniority before others. If there are no previously

qualified Employees in the box or none desire it, the vacancy will be awarded to

the senior Employee in that box who desires it. This procedure will be followed

for the remaining boxes in the branch of the line of progression.

<PAGE>

c) If no Employee in the branch of the line of progression desires to fill

the vacancy, previously qualified Employees in the rest of the department who

are permanently established above the horizontal line (if one exists) in the

line of progression will be allowed to exercise their seniority before others.

If there are no previously qualified Employees or none desire it in the

department, the vacancy will be awarded to the senior Employee in the department

permanently established above the horizontal line in the line of progression who

desires it.

d) If no Employee established permanently established above the horizontal

line in the line of progression desires to fill the vacancy, previously

qualified Employees in the box below the horizontal line in the line of

progression will be allowed to exercise their seniority. If there are no

previously qualified Employees or no one desires the vacancy, it will be awarded

to the senior Employee in the box who desires it. This procedure will be

followed for the remaining boxes below the horizontal line in the line of

progression.

e) Any resultant vacancy will be filled by recalling the senior previously

qualified Employee who is laid off from the department. If there is no

previously qualified Employee laid off from the department, the vacancy will be

filled by recalling the senior laid off Employee from the department.

Step 2. The resulting entry-level vacancies shall be filled on a plant-wide

basis in the following sequence, with the seniority factor being plant

continuous service.

i). Those Employees including laid off Employees, other than probationary

Employees, in the Production and Maintenance bargaining unit who bid on a

vacancy which has been posted at the plant. The locations of such postings

within all departments at the Plant shall be designated by the Company after

consultation with the Union and the bids shall be posted for five (5) calendar

days. Employees desiring to bid must do so in writing and submit their bid to

the Employee Resources Office by the first mail of the sixth calendar day. An

Employee who transfers under this paragraph may be returned by the Company to

his former department because he cannot meet the requirements of the job, after

a minimum of five (5) working days, but before 30 calendar days from the date of

transfer.

ii). Those Employees identified in Section 7 of this Article.

iii). Management may consider requests of probationary Employees wishing to bid

or transfer at Management's sole discretion.

iv). Newly hired Employees. Probationary Employees will not receive a seniority

date in the department until such time as they complete their probationary

period.

The Company will prepare an up-to-date recording of current job postings

which will be available to the Employees 24-hours a day. Any Employee off sick

or on vacation shall submit his intent to bid on any such openings to the

Employee Resources Department within the 5-day posting period.

The provisions of