COLLECTIVE BARGAINING AGREEMENT

 

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                                                                   EXHIBIT 10.50

 

 

                         COLLECTIVE BARGAINING AGREEMENT

 

                                     BETWEEN

 

                            QUINCY CORPORATION, INC.

 

                                       AND

 

                     UNITED FARM WORKERS OF AMERICA, AFL-CIO

 

 

    JANUARY 21, 2004

                                    PREAMBLE

 

        The Employer, the Union and employees recognize the obligations of its

        members to work towards efficient operation of the Employer and the

        demands of the Employer's customers. Therefore, it is the purpose of

        this Agreement to obtain a maximum efficiency in the operations of the

        Employer; to eliminate all interruptions of work and interference in

        operations; to secure a prompt and fair disposition of grievances; and

        to set forth other conditions of employment during the life of this

        Agreement.

 

I.      PARTIES

 

        THIS AGREEMENT is between QUINCY CORPORATION, INC. (hereinafter referred

        to as the "Employer") and its successors, provided that such successor

        is at least fifty one percent (51%) owned by existing shareholders of

        the Employer as of the date of this agreement, and UNITED FARM WORKERS

        OF AMERICA, AFL-CIO, (hereinafter referred to as the "Union").

 

II.     RECOGNITION/UNION RIGHTS AND OBLIGATIONS COMPANY/UNION COOPERATION

 

    A.  The Employer does hereby recognize the Union as the sole labor

        organization representing the rights of its employees described in

        Attachment A, hereafter collectively called "workers".

 

    B.  The Employer further recognizes the rights and obligations of the Union

        to negotiate wages, hours and other terms and conditions of employment

        and to administer this Agreement on behalf of the covered employees. The

        Employer will inform all employees immediately upon their employment of

        its policies and commitments as set forth above. The Employer will hand

        out a notice to new employees immediately upon their employment

        regarding the collective bargaining agreement and the commitment of

        Employees, Employer and Union working together in partnership.

 

 

 

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    C.  Neither the Employer nor its representatives will interfere with the

        right of any worker to join and assist the Union. The Employer agrees

        that employees will secure no advantage, no more favorable consideration

        nor any form of special privilege because of non-participation in Union

        activities. Further, the Employer agrees with and recognizes the right

        of workers to support and participate in collective bargaining and

        contract administration functions.

 

    D.  The Union agrees with the objective of achieving the highest level of

        employee performance and production consistent with safety, good health,

        fair treatment and respect and to use its best efforts to effectuate the

        same with employees.

 

III.    HOURS OF WORK, OVERTIME, WAGES AND BENEFITS

 

    A.  Wage rates for specific job classifications are set forth in Article

        XXVI.

 

    B.  Overtime: Except for employees covered by the harvesting incentive pay

        system, hourly employees shall receive time and one-half (1 1/2) their

        regular rate of pay for all hours worked over forty (40) in a given

        seven (7) day calendar week. Employees covered by the harvesting

        incentive pay system do not earn overtime but are eligible for holiday

        pay premium as provided in Article XXVII below.

 

    C.  Meal time breaks shall be one-half (1/2) hour.

 

    D.  Pay Periods and Pay Days: Employees will be paid on a weekly basis and

        will receive their paycheck every Thursday.

 

    E.  Employees shall have paid rest periods of fifteen (15) minutes each,

        which insofar as practical, shall be in the middle of each continuous

        four (4) hour work period. The afternoon breaks will be in accordance

        with this language.

 

IV.     UNION SECURITY

 

        A. The Employer agrees, upon written authorization from the employee, to

        deduct union dues and assessments from the employee's paycheck each week

        and remit to the Union's designee. The deductions will commence the

        first paycheck ten (10) working days after the Employer receives the

        employee's written dues authorization. Any change in union dues shall

        become effective the next paycheck ten (10) working days after the

        Employer has received a certification of the change signed by the

        Union's President. Employees may revoke their union dues authorization

        by written order of revocation to the Employer and to the Union.

        Beginning on February 15, 2001, such written order of revocation may

        only be submitted between February 15 and Feb. 22 or between Aug. 15 and

        Aug. 22 of each year. A notice to employees shall be given each employee

        in the bargaining unit employed at the signing of this agreement and to

        each new employee when hired. The Employer will cease making

 

 

 

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        such deductions from the next paycheck ten (10) working days after

        notice of said revocation is received in writing from the employee. The

        Employer shall provide a monthly summary report containing the names of

        the members, Social Security numbers, payroll periods covered, gross

        wages, total hours worked per worker and amount of dues and assessments

        deducted during such pay periods from each member.

 

    B.  Dues and assessments shall be deducted on a weekly basis and remitted to

        UFW, Membership Department, P.O. Box 62, Keene, CA 93531.

 

    C.  The Union agrees to indemnify and hold the Employer harmless against any

        and all claims, suits or other forms of liability arising out of the

        deductions of money for Union dues and assessments from an employee's

        pay. The Union assumes full responsibility for the disposition of the

        moneys so deducted once it has been remitted to the UFW's Membership

        Department.

 

V.      HIRING

 

    A.  The Union will provide a list of applicants to the Employer for

        consideration when new or additional employees are needed in the areas

        referred to in Attachment A. The company will provide a list of

        vacancies, when they become available, to the local UFW representative

        via fax.

 

        1.  UFW representative will be notified via fax and be given the

            opportunity to meet with new employees during orientation.

 

    B.  Promotion and Job Bidding. In the event a permanent vacancy in a job

        classification in the bargaining unit arises, which the Employer decides

        to fill, the following procedures shall apply.

 

 

        1.) The Employer will post the job for seven (7) working days on

            bulletin boards and otherwise announce the vacancy consistent with

            the Employer past practice, including allowing non-bargaining unit

            employees to bid bargaining unit jobs and vice versa.

 

        2.) Employees who wish to be considered for the posted vacancy must

            apply in writing during the posting period to the Employer's

            designee.

 

        3.) If the employer's designee decides to temporarily fill the position

            while the permanent assignment is being made, he may do so with any

            qualified employee, provided experience gained during such temporary

            assignment shall not be determinative in filling the vacancy

            permanently.

 

        4.) The Employer's designee will consider all timely applications from

            qualified employees and fill the vacancy based on:

 

            a.  Qualifications and ability to perform the work.

 

            b.  Past disciplinary records. Employer will review employees past

                two (2) years performance to determine past disciplinary

                actions,

 

 

 

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                if an employee has less than two (2) years service, the lesser

                seniority period will be the look back period for all

                applicants.

 

            c.  Job Classification seniority.

 

        When factors a and b are relatively equal, Job Classification seniority

        shall be given primary consideration.

 

VI.     SENIORITY

 

    A.  Probationary Period. A newly hired employee in the bargaining unit will

        be considered a probationary employee for the first ninety (90) calendar

        days of employment. During the probationary period, the Employer retains

        the right to layoff, terminate, transfer, or discipline such employee

        subject only to the law and the employee shall have no recourse to the

        grievance or arbitration procedure provided herein. After successful

        completion of the probationary period, the employee shall be placed on

        the seniority list as of his date of hire. Annual leave shall accrue

        during probation and may be taken as earned under the same conditions

        applicable to non-probationary employees. No accrual of benefits will be

        paid to employees who do not complete probation.

 

    B.  Farm Seniority. Farm seniority shall be the time of cumulative service

        as an employee of the Employer.

 

    C.  Job Classification Seniority. Job Classification seniority shall be the

        time of cumulative service on the active payroll of the Employer working

        within a designated job classification. An approved leave of absence

        will qualify as part of cumulative service.

 

    D.  Priority. Where two or more employees have the same seniority date or

        dates, under sections B and C of this article, the seniority dates shall

        be determined by the employee's birthday.

 

    E.  Regaining Seniority. If a former employee is rehired, he will establish

        a new Job Classification seniority. Credit for Medical Insurance,

        Pension and Section 401(K) Plan participation shall not be restored

        unless allowed by the particular Plan.

 

    F.  Promotions Within the Unit. When an employee is promoted to a different

        position within the bargaining unit, he shall be on a trial period for

        thirty (30) days during which time he may elect to return to the

        position from which promoted. However, if the prior position has been

        filled, the returning employee will be placed in another position but

        with no reductions in the rate of pay he was receiving initially prior

        to the promotion. Upon successful completion of the trial period, job

        classification seniority shall accumulate from the date of promotion. If

        prior to the end of the 30-day period the employee is removed and

        returned to his

 

 

 

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        former or similar open position, he shall be given Job Classification

        seniority credit for the time spent in the job to which he was promoted.

 

    G.  If any employee decides to transfer out of the bargaining unit, he must

        return within thirty (30) days to keep his job classification seniority.

 

    H.  Seniority List. Upon the execution of this Agreement, the Employer shall

        prepare a seniority list for bargaining unit employees which shall show

        Farm and Job Classification seniority. The Employer will provide the

        Union with a copy within a reasonable time period. After the initial

        list a seniority list will be provided to the Union within five (5)

        working days of a written request but no more than once during a

        calendar quarter.

 

    I.  Layoff. In the event of a permanent layoff, the layoff will be by Farm

        seniority. In the event of a temporary layoff, the layoff will be by Job

        Classification seniority.

 

    J.  Employees will be recalled in inverse order of layoff. Employees

        recalled must be satisfactorily able to perform the job at the time of

        recall.

 

VII.    GRIEVANCE AND ARBITRATION

 

    A.  A grievance is defined as any difference between the Employer and any

        employee or the Union involving the interpretation or application of the

        provisions of this Agreement, or a claim of a violation of this

        Agreement. Whenever a grievance arises between the Employer and the

        employee or the Union, the matter will be handled in accordance with the

        following procedure:

 

    B.  Informal. Except in cases involving disciplinary action which shall

        proceed immediately to Step 1, the employee shall meet to discuss the

        grievance informally with his immediate supervisor and attempt to

        resolve the grievance before it may be filed in Step 1. The employee

        must request this meeting not more than ten (10) business days after the

        occurrence which gives rise to the grievance. Failure of the employee to

        request a meeting within the time set shall be deemed a waiver of the

        grievance and it shall not be subject to further processing under this

        Article or otherwise. A Union steward may be present if the Employee

        requests; however, the employee shall have the right to adjust his

        grievance with or without the assistance of the Union.

 

    C.  Step 1: Within ten (10) business days after the meeting in the informal

        step, the grievance shall be reduced to writing and signed by the

        employee and presented to his or her immediate supervisor. The written

        grievance must include:

 

            a.  A statement of the grievance and a summary of the facts on which

                the grievance is based.

 

 

 

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            b.  The remedy requested.

 

            c.  The Article and Section of the Agreement which the grievant

                claims has been violated.

 

    D.  Step 2: Within ten (10) business days of presentation of the written,

        signed grievance, the employee, one local representative of the Union,

        and the Employer's designee shall meet and/or discuss the grievance. A

        second meeting will then be held with the employee's manager, or the

        next level of management above the grievant's immediate supervisor,

        whichever applies, the Employer's designee, and one local representative

        of the Union to meet and/or discuss the grievance. The management

        representative will respond in writing within ten (10) business days of

        the conclusion of these two meetings and/or discussions

 

    E.  Step 3: If the grievance is not settled in Step 2 above, within ten (10)

        business days of receipt of the Employer's response in Step 2, the Union

        shall notify the Employer in writing of its appeal of the grievance to

        Step 3. Within ten (10) business days of delivery of the written notice

        of appeal to Step 3, the Union and the Employer's designee shall meet

        and/or discuss the grievance. The designee shall respond in writing

        within ten (10) business days after the meeting or discussion. Failure

        of the parties to meet to discuss the grievance within the time provided

        in Steps 1, 2 and 3 of the grievance procedure or failure of the

        Employer to respond at any step shall be deemed a denial of the

        grievance. The Union must then proceed to the next step within the time

        limits, just as if the Employer had denied the grievance in writing on

        the last day for a response. Failure of the Employer to respond at any

        step shall not in any way restrict the Employer's or the Union's right

        to raise any issue or present any evidence it deems appropriate in

        support of its position in any subsequent arbitration or other

        administrative or judicial proceedings.

 

    F.  Arbitration. Any signed, written grievance which is not settled pursuant

        to sections B, C, D and E of this article, shall be submitted to binding

        arbitration upon the request of either party. Arbitration proceedings

        must be initiated by serving a written request for arbitration by the

        Union or the Employer within forty-five (45) working days of the

        response of the Employer under Step 3 above or the last day on which the

        Employer could have responded to Step 3, whichever occurs first.

 

    G.  Selection of Arbitrator. As soon after the request for arbitration is

        served as is conveniently possible, the parties shall meet or confer by

        telephone in order to select an arbitrator to hear and decide the

        grievance. If the parties are unable to agree on an arbitrator, the

        party requesting arbitration shall request the American Arbitration

        Association to supply the parties with a panel of seven (7) arbitrators.

        Within five (5) working days after the receipt of such panel, the

        parties will meet or confer by telephone or in person to select an

        arbitrator. The Union and the Employer shall each have the right to

        alternatively strike three (3) names from the list. The name remaining

        shall be the arbitrator. Subject to section H of this article, the

        arbitrator

 

 

 

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        selected shall decide the dispute and such decision shall be final and

        binding on the parties and the employees. The expenses of the arbitrator

        shall be paid equally among the parties. However, each party shall be

        responsible for its own attorneys' fees, any court reporting services it

        wishes to use, and the wages of employees, whether they be witnesses,

        potential witnesses, representatives, or grievant, it utilizes in any

        arbitration proceeding.

 

    H.  Authority of Arbitrator. The jurisdiction of the arbitrator is limited

        and confined to the interpretation and application of the specific

        provisions of this Agreement to the grievance. The arbitrator shall in

        no way alter, amend, or modify the terms of this Agreement. When any

        employee has been disciplined for one or more of the rules and

        regulations of the Employer and said discipline is subjected to this

        Article, the arbitrator shall deny the grievance if he is satisfied by a

        preponderance of the evidence that the employee violated such rule or

        regulation. Under no circumstances may an arbitrator award back wages or

        monetary relief to any employee for a period more than ten (10) working

        days prior to the submission of the grievance to Step 1. Monetary awards

        shall be limited to the amount of the back wages and benefits the

        employee would have otherwise earned less unemployment compensation and

        other earnings. No relief may be granted to any employee who has not

        timely filed a grievance as required above. The arbitrator may not

        consider more than one (1) grievance without the agreement of both

        parties; provided, multiple grievances properly raise the same issues

        which have been properly appealed. The arbitrator shall have no power to

        establish wage scales or fringe benefits or to change the established

        wage scale or schedule of fringe benefits.

 

    I.  Finality of Decision. The decision of the arbitrator shall be supported

        by substantial evidence on the record as a whole and shall be final and

        binding on the employees, the Employer and Union.

 

    J.  Time Limits. The time limits set forth above are to be considered of the

        essence to the grievance and arbitration procedure. The failure of the

        employee or the Union to meet any time limit set forth therein shall be

        deemed to constitute waiver of the grievance and acceptance of the

        Employer's position. The time limits in sections B, C, D and E of this

        article may be extended in writing by mutual consent of the parties.

 

    K.  Limitations. The party referring a grievance to arbitration shall have

        the burden of proof, except the Employer shall have the burden of proof

        in disciplinary grievances unless this Agreement provides otherwise.