Diageo

INDEX

SECTION & DESCRIPTION	PAGE NO.	PAR. NO.
PARTIES TO CONTRACT	1
WITNESSETH	1
I UNION RECOGNITION	1	1-3
II UNION SECURITY	1	4-10
III CHECKOFF-INITIATION FEES, DUES & ASSESSMENTS	2	11-15
IV DISCRIMINATION & COERCION	3	16-18
V MANAGEMENT RIGHTS	3	19
VI PROBATIONARY PERIOD	4	20-21
VII MAINTENANCE TRAINING PROGRAM	4	22-23
VIII HOURS OF WORK	4	24-28
IX WAGE SCHEDULE	7	29-31
X REPORTING AND CALL-IN TIME	8	32-35
XI OUTSIDE CONTRACTING	9	36
XII SEVERANCE PAY	10	37
XIII HOLIDAYS	10	38-42
XIV VACATIONS	11	43-51
XV HEALTH & WELFARE (MEDICAL & DENTAL)	13	52-57
XVI WORKERS’ COMPENSATION SUPPLEMENT	16	58
XVII PAID TIME OFF	16	59
XVIII PENSION PLAN	17	60-61
XIX JURY DUTY	18	62-65
XX FUNERAL LEAVE	19	66
XXI LEAVES OF ABSENCE	20	67-69
XXII MILITARY DUTY AND REEMPLOYMENT RIGHTS	20	70
XXIII DISCIPLINE	22	71-77
SCHEDULE A (VIOLATIONS)	24
XXIV GRIEVANCE AND ARBITRATION PROCEDURE	25	78-81
XXV IN-HOUSE COMMITTEE	26	82
XXVI NO STRIKE/NO LOCKOUT	27	83
XXVII ALCOHOL AND DRUG TESTING	27	84
XXVIII TERMINATION OF CONTRACT	27	85-86
XXIX GENDER	27	87
WAGE SCHEDULE – Maintenance	29
WAGE SCHEDULE - Cellar Team Leaders	30
WAGE SCHEDULE - Process Operator B	31
WAGE SCHEDULE - Racker/Blender	32
WAGE SCHEDULE - General Winery Worker	32
DRUG & ALCOHOL TESTING PROGRAM	33
SENIORITY SUPPLEMENT	39
CA UNIVERSAL PLAN OF BENEFITS	43

PARTIES TO CONTRACT

This Agreement entered into the 1^st day of April 2010 by and between the U.F.C.W. Local 186D, hereinafter referred to as the Union and Diageo Chateau and Estate Wines Company, Inc., hereinafter referred to as Employer.

WITNESSETH

WHEREAS, pursuant to the intent and purpose of the parties hereto to promote and improve the industrial and economic relations between the Employer, its employees and the Union, and to establish and encourage the practice and procedure of collective bargaining between the parties hereto, it is mutually agreed as follows:

The Employer and the Union recognize that continuous improvement in productivity and production processes is an important premise for any operation and agree to utilize such methods as employer/employee work teams to solve problems and make recommendations for improvements.

Paragraph 1. The Employer does hereby recognize the Union as the sole labor organization representing the Employer's employees and recognizes and agrees to treat and negotiate with the Union as the sole and exclusive bargaining agency for and on behalf of such employees.

Paragraph 2. The term "employees" as used in this Agreement shall not include Office Employees, Chemists, Laboratory Technicians, Watchmen, Superintendents, Wine Makers, Champagne Makers, and members of other bona fide recognized collective bargaining units as covered by collective bargaining agreements with the Employer.

Paragraph 3. Except in the case of bona fide emergencies, the training and instruction of collective bargaining unit employees, and research or pilot plant operations, all three in conformity with past practices, persons excluded from the bargaining unit shall not be permitted to perform any work normally performed by the employees in the bargaining unit, and which said employees now perform.

SECTION II - UNION SECURITY

Paragraph 4. Union membership shall be a condition of employment. Each employee shall be required to become and remain a member of the Union in good standing immediately following seventy (70) continuous working days of employment. However, if there is any interruption during the first seventy (70) working days of employment, then application to the Union for membership shall be made after seventy (70) days worked within twelve (12) months of date of hire. Employees who do not acquire seniority and are rehired after a six (6) month break in service must work a minimum of 70 days upon rehire to acquire seniority. It is understood that holidays do not count as an interruption in service.

Paragraph 5. All employees subject to the terms and provisions of this Agreement shall be required to pay the initiation fee, periodic dues and reinstatement fees established by the Union as a condition of good standing membership in the Union.

Paragraph 6. The Union shall be the sole judge of the good standing of its members. Any employee who fails to become a member of the Union within the time limit set forth hereinabove or who fails to pay the required initiation fees, periodic dues and regularly authorized assessments as prescribed by the Union, shall be immediately discharged upon written notice from the Union to the Employer.

Paragraph 7. The Employer agrees to notify a shop steward within forty-eight (48) hours and to notify the Union in writing within five (5) working days after the hiring of any new employee, giving the employee's name and the classification to be filled by that employee. The Employer also agrees to furnish to the Union the names of all former employees who are rehired no more than seven (7) days after employment.

Upon completion of the probationary period, the Employer agrees to notify the Union in writing on the monthly Dues Report of the employee's name, address, age, sex, telephone number and Social Security Number.

Paragraph 8. The Employer agrees to allow one (1) hour per week with pay to authorized shop steward(s) to conduct Union business.

Paragraph 9. A duly authorized Union Representative shall have access to the premises of the Employer upon proper notification to the Employer.

Paragraph 10. Bulletin Board. The employer shall provide a bulletin board upon which notice concerning official Union business may be posted.

Paragraph 11. The Employer agrees to deduct from the payrolls all initiation fees, periodic dues, reinstatement fees, and assessments as required by the Union upon representation of individual authorizations as required by law, signed by the employees directing the Employer to make such deductions. The Employer shall make such deductions from the employee's pay once in each month and remit same to the Union not later than the 10th day of the following month.

Paragraph 12. The Union will furnish the forms to be used for the authorization. The Employer will furnish the Union with a duplicate copy of all signed authorizations.

Paragraph 13. The Union will hold the Employer free and harmless against any and all claims, damages, suits or other forms of liability whatsoever that shall arise out of or by reason of action taken or not taken by the Employer for the purpose of complying with any of the provisions of the initiation fees, reinstatement fees, regularly authorized assessments, and monthly dues check-off.

Paragraph 14. Payments for PTO taken as Sick Leave will not be subject to monthly dues deductions. However, the Employer will indicate on the list of layoffs, leaves of absence and terminations.

Paragraph 16. The Employer and the Union agree that there shall be no unlawful discrimination against any employee or applicant for employment based on race, religion, color, sex, or place of national origin. Also, there shall be no discrimination by either the Employer or the Union on the basis of age in violation of federal or California law. The Employer and the Union further agree that they will comply with any other federal or California law or regulations pertaining to unlawful discrimination, provided that this shall not preclude the Employer or the Union from challenging the interpretation of any such law or regulations placed upon it by the agency administering it.

Paragraph 17. Employee Activity. It is mutually agreed that there shall be no restraint, coercion or interference by the Employer or by the Union against members of the bargaining unit in the exercise of their legal rights in a lawful manner.

Paragraph 18. The exercise of a legal right in a lawful manner by any member of the Union shall not constitute a just cause for discharge.

Paragraph 19. The Union agrees that the authority to direct, select and increase the working force in accordance with this Agreement, and to determine the products to be manufactured, methods and processes are solely and exclusively the responsibility of the Employer, except as hereinafter limited by explicit provisions of this Agreement.

Paragraph 20. All newly hired employees shall be deemed to be on probation during the first seventy (70) days worked within twelve (12) months of the date of hire. An employee who is laid off before completing seventy (70) days shall be deemed to be on probation upon rehire after a six (6) month break in service until seniority is acquired. The employee may be dismissed by the Employer at any time during such probationary period without the necessity of assigning any cause therefore.

Paragraph 21. No new employees shall be qualified or eligible to receive any benefits of this agreement such as health and welfare benefits, pension benefits, dental benefits, leaves of absence, jury duty pay, holiday pay, etc. until they have completed the probationary period.

Paragraph 22. It is agreed that a Maintenance Training Program may be established with the understanding if the Company does not have either the need for such a program or qualified applicants, the Company shall have the option of hiring skilled mechanics from outside sources.

Paragraph 23. If the Company wishes to institute a maintenance training program, the program must be reduced to writing setting forth the proposed training to be given and the objectives to be accomplished. Written training program is subject to approval by the Union.

(a) Forty (40) hours shall constitute a week's work, Monday through Friday, to be worked in five (5) consecutive days. Eight (8) consecutive hours shall constitute a day's work in the defined twenty-four (24) hour period except for lunch not to exceed one (1) hour. The defined twenty-four (24) hour period, is 11 p.m. to 11 p.m. All time worked in excess of eight (8) hours in a defined twenty-four hour period shall be considered overtime. The regular overtime rate, shall be one and one-half (1½) times the employee's hourly rate of pay. The Employer will be required to post the regularly scheduled lunch hour at the beginning of each work week.

(b) By written agreement voluntarily executed by the employer and two-thirds (2/3) of the affected employees, the employer may substitute the provisions of this subparagraph (b) for the provisions of subparagraph (a) above. In such event, forty (40) hours shall constitute a week's work, which workweek shall include not more than four (4) consecutive working days of not more than ten (10) hours each, which shall be Monday through Thursday or Tuesday through Friday. The Employer shall not be required to pay overtime rates for the 9th and 10th hours worked during such workdays. If an employee on such four-day schedule is required or permitted to work more than ten (10) hours in any day, the overtime rate prescribed below shall apply for hours worked in excess of the 10th hour of that workday. Employees on such schedule who are required or permitted to work more than four (4) days in a week shall be paid time and one-half (1½) for the first eight (8) hours on such additional days and double (2) time in excess of eight (8) hours on those days. The regular overtime rate shall be one and one-half (1½) times the employee's hourly rate of pay. The Employer will be required to post the regularly scheduled lunch hour at the beginning of each workweek.

For employees on a four-day week, ten-hour days as provided in this subparagraph, fringe benefits will be paid as follows:

Holidays falling during an employee's four-day week will be paid at ten (10) hours per paid holiday. Holidays falling outside an employee's four-day week will be paid at eight (8) hours per paid holiday.

In Section XIV convert all words "days" to eight (8) hours of vacation, and convert all references to "weeks" to forty (40) hours of vacation. For purposes of Paragraph 45, the ten days therein will be converted to eight (8) hours.

PTO will be paid out at ten (10) hours per day, exclusive of days outside the employee's four-day week.

This will be paid at ten (10) hours per day for days the employee is scheduled to work within his/her four-day week.

This will be paid at ten (10) hours per day for appropriate number of business days as outlined in Section XX which must be within the employee's scheduled four-day week.

Any reference to eight (8) hours in Paragraph 30 will be changed to ten (10) hours.

Any reference to four (4) hours in Paragraph 32 will be changed to five (5) hours, and any reference to eight (8) hours in Paragraph 32 will be changed to ten (10) hours.

After a lapse of twelve (12) months, or such shorter period as the written agreement may provide, the Employer may by written notice to the Union revoke the above agreement and return to the hours of work provisions set forth in subparagraph (a) above, such revocation to be effective sixty (60) days after the notice is given the Union.

After a lapse of twelve (12) months, or such shorter period as the written agreement may provide, and upon petition of a majority of the affected employees, a new vote shall be held and a two-thirds (2/3) vote of the affected employees will be required to reverse the agreement above. If such agreement is revoked, the employer shall comply within sixty (60) days.

(a) All work performed on Saturday or Sunday will be paid at the rate of time and one-half (1½) the employee’s hourly rate of pay, provided the employee has worked forty (40) straight-time hours in the current work week. Holiday pay and time spent on union business will count as hours worked.

Double the employee's regular rate of pay shall be paid for all hours worked in excess of twelve (12) hours in any workday and for all hours worked in excess of eight (8) hours on the seventh (7th) day of work in any workweek.

(b) There shall be no pyramiding, duplication or compounding of any overtime, premiums or penalties required by the provisions of this Agreement. Where two or more rates, premiums or penalties or any combination thereof are applicable to any time worked, that single overtime, penalty or premium which produces the highest rate of pay for the employee shall be the rate paid.

Paragraph 26. Preference to overtime work following an eight (8) hour shift shall be given to the employee performing the job prior to the expiration of the shift. In the event additional employees are needed for overtime work within the same department, then preference shall be given to the employees with the greatest plant seniority within that department on that shift provided they have the ability and experience with the Employer on such work.

Paragraph 27. Preference for overtime work, on a Saturday, Sunday or holiday shall first be given to employees working in the department scheduling overtime in accordance with the employees' plant seniority provided they have the ability and experience with the Employer on such work.

During crush, preference for weekend overtime work for Chiller Operators shall go to the operators performing the work during the regular work week.

Paragraph 28. Any statutory requirements regulating hours or conditions of work shall be observed by the Employer and the Union as if part of this Agreement. Overtime work for all employees shall be on a voluntary basis with right of refusal by seniority subject to the provisions of the Shift Preference Section herein, i.e., Section 14 of the Seniority Supplement, provided, however, that where an insufficient number volunteer, junior seniority qualified employees may be assigned to said work and shall work overtime so assigned.

(a) The parties hereby agree that the "equivalent" rule set forth in the third sentence of Section 554 of the California Labor Code shall not apply to employers and employees covered by this collective bargaining agreement, and employees subject to this Agreement may work more than seven (7) consecutive days without the necessity of accumulating days of rest to receive the equivalent of one (1) day of rest in seven (7) in each calendar month.

Paragraph 29. All employees covered by this Agreement shall be compensated for their services as per the Skills & Progression Program hereto attached.

i. Each employee will be given the opportunity to acquire a pay raise of at least 1% through skills and progression between July 1, 2009 and July 1, 2010.

ii. If Management is unable to provide this training, each employee will receive an increase of 1% on July 1, 2010.

iii. If Employees are unwilling to be trained, they will receive a $500 lump sum on July 1, 2010.

ii. Performance rating of “fully meets expectations” will receive 1.5% in the second and third years of the contract.

iii. Performance rating of “mostly meets expectations” will receive 0.5% less than “fully meets”

iv. Performance rating of “exceeds expectations” will receive 0.5% more than “fully meets”

Paragraph 30. Effective with ratification date of this contract, all work on the Swing Shift by an employee assigned thereto shall be paid for at the rate of thirty cents (30¢) per hour above the regular rate and all work performed on the Graveyard Shift by an employee assigned thereto shall be paid for at the rate of fifty cents (50¢) per hour above the regular rate. The term Swing Shift shall mean any eight (8) hour shift terminating between the hours of 6:00 p.m. and 3:00 a.m. The term Graveyard Shift shall mean any eight (8) hour shift terminating between 3:00 a.m. and 12:00 noon.

Paragraph 31. No employee shall suffer a reduction or diminution in wages presently being paid nor shall the employee's established conditions of employment be reduced because of the signing of this Agreement, subject to the specific provisions of the settlement or this Agreement.

Paragraph 32. All employees when reporting at the scheduled starting time, when requested by the Employer, shall be guaranteed a minimum of either four (4) hours' work or the equivalent in pay if the employee does not complete four (4) hours of work. It is further agreed and understood that employees who, when requested by the Employer, return to work after the meal break shall be guaranteed additional work or equivalent in pay to a total shift of eight (8) hours. Past practices will prevail with regard to established meal hours. This paragraph is to be applicable only to the Monday through Friday workweek and specifically excludes Saturday and Sunday and overtime assignments.

Paragraph 33. An employee who has previously completed that day's work and, after having left the premises, is called in for emergency work, shall be paid a minimum of four (4) hours' pay at the prevailing premium rate. An employee called in for such emergency work shall not be required to perform non-emergency work to fill out the four (4) hours.

Paragraph 34. When an employee is called to work by the Employer on a Saturday or on a Sunday, the employee shall be guaranteed a minimum of four (4) hours' work, or a minimum of four (4) hours' pay in lieu thereof, at the prevailing rate for said Saturday or Sunday work.

(a) Operations cannot commence or continue due to threats to employees or property or when recommended by civil authorities;

(b) Public utilities fail to supply electricity, water or gas or there is a different failure in the utilities or sewer system; or

(c) The interruption of work or failure to commence work is caused by an act of God.

2. If any of the above events occur, the Reporting Pay provisions of Paragraphs 32 and 34 of this Agreement shall not be applicable to employees reporting for work, but not yet at work, if the Employer has less than three (3) hours' notice of the event. If the Employer has three (3) or more hours notice of the event, the Employer must use reasonable means to notify the employees that work will not commence, otherwise the provisions of Paragraphs 32 and 34 will apply to employees reporting for work.

3. If any of the above events occur, the reporting pay provisions of Paragraphs 32 and 34 of this agreement are modified with respect to employees already at work so that such employees are only paid for time actually worked on such day. Employees remaining on Company premises at the Employers' request will be paid for such time.

Paragraph 36. Any ordinary maintenance, production and repair work which the employees in the bargaining unit normally perform shall not be contracted out to be performed by outside contractors except upon prior consultation with the Union; provided that the Employer will not subcontract normal maintenance, production and repair work when there are qualified personnel on layoff who have performed the work. It is understood and agreed that the Company has the right to purchase raw materials such as wine, high-proof, etc., to contract for the production of such items and to arrange for contract and franchise bottling outside of California, in accordance with past practices.

1. The permanent plant shutdown, or a permanent departmental shutdown, resulting in the permanent termination of an employee.

2. The installation of new machinery or equipment, which permanently displaces an employee, and the employee is permanently thereby terminated, severance pay shall be paid to each such permanently terminated employee in accordance with the following:

(a) A service year shall be a year in which an employee shall have worked 1,200 or more straight-time hours.

(b) An employee who has completed three (3) service years, in each of which said three (3) years the employee has worked 1,200 or more straight-time hours, shall receive three (3) days' pay at his regular rate of pay on the date of termination.

(c) An employee who has completed four (4) service years, in which each of said four (4) years the employee has worked 1,200 or more straight-time hours, shall receive six (6) days’ pay at the employee's regular rate of pay on the date of termination.

(d) For each additional service year, as defined, the employee shall receive an additional three (3) days' pay at the employee's regular rate of pay on the date of termination to a maximum of fifty-four (54) days' pay for those being terminated with twenty (20) or more service years, as defined to their credit.

Paragraph 38. The following holidays shall be observed under this Agreement: New Year's Day, President’s Day, Good Friday, Memorial Day, Independence Day, , Thanksgiving Day, Friday after Thanksgiving Day, last business day before Christmas, Christmas Day, first business day after Christmas Day, and New Year's Eve Day. In addition to the above designated holidays there will be one (1) additional holiday provided each year as determined by management.

Sunday holidays shall be observed on the Monday following and Saturday holidays shall be observed on the preceding Friday. The Union and the Employer agree the last business day before Christmas may also be observed on the first business day after Christmas and New Year's Eve Day may also be observed on the first business day after New Year's Day. These substituted days shall be the respective holidays and all incidents of holiday pay shall apply thereto.

Paragraph 39. The above holidays shall be paid for at regular rates of eight (8) hours, plus shift differential, if any, provided that the employee must work the employee's full regularly scheduled shift preceding and following the holiday. The Language "full regularly scheduled shift preceding and following the holiday" will apply to the Monday through Friday work week. For the purposes of holiday pay employees on PTO, Funeral Leave, Jury Duty and Vacation will be considered as having worked. Where an employee is required to be absent from work the day before and/or the day after the holiday due to a mandatory court appearance as a subpoenaed witness in a case in which the employee is not a party, the employee shall not be disqualified from holiday pay on that account, provided that the time limits and reporting conditions as set forth in Section XIX, Paragraphs 63, 64 and 65 shall apply, and that the employee furnishes proof of said mandatory appearance.

Paragraph 40. When a Saturday holiday is required to be observed and paid for on Friday, and work is performed on the Saturday, or when a Sunday paid holiday is required to be observed on Monday, and work is performed on the Sunday, all such work shall be paid for at the rate of double (2) times the employee's regular hourly rate of pay.

Paragraph 41. In case of layoffs of employees with seniority, they must have actually worked one (1) day within four (4) working days immediately before the Holiday or they must have actually worked one (1) working day within the four (4) working days immediately following the Holiday. Employees failing to work as scheduled within the four (4) days prior to, or, the four (4) days after a holiday will not receive holiday pay. For the purpose of holiday pay employees on layoff will not be allowed to utilize PTO or Vacation for the purpose of being eligible for Holiday pay.

Paragraph 42. All work performed on the above holidays shall be paid for at the rate of double time (2) in addition to holiday pay at the employee's regular rate of pay.

Paragraph 43. When Taken. Vacation hours are to be taken during the service year and may be taken in the month following being earned except in case of termination. Maximum of forty (40) hours may be carried over each service year.

Paragraph 44. How Earned. No employee shall lose vacation credits for loss of time caused by an

(i) "on the job" injury or accident for a period not to exceed nine (9) months from date of accident, or

(ii)absence due to jury duty for which the Employer has given the employee jury duty pay under Section XIX of this Agreement.

Paragraph 45. Vacation Time Earned. To obtain vacation credit, employee must have worked not less than eighty (80) hours within a calendar month. Overtime hours will count as straight time hours. Vacation time will be earned as outlined in the following chart.

Months Employed In Service Yr	First Service Yr.	After 1^st Service Yr.	After 6 Service Yrs .	After 13 Service Yrs.	After 20 Service Yrs.
# of Mos.	# of hours	# of hours	# of hours	# of hours	# of hours
1st	0	6.67	10	13.34	16.67
2nd	0	6.67	10	13.34	16.67
3rd	0	6.67	10	13.34	16.67
4th	0	6.67	10	13.34	16.67
5th	0	6.67	10	13.34	16.67
6th	0	6.67	10	13.34	16.67
7th	6.67	6.67	10	13.34	16.67
8th	6.67	6.67	10	13.34	16.67
9th	6.67	6.67	10	13.34	16.67
10th	6.67	6.67	10	13.34	16.67
11th	6.67	6.67	10	13.34	16.67
12th	6.67	6.67	10	13.34	16.67
Total Hrs.	40	80	120	160	200
Total Days	5	=SUM(ABOVE) \# "0" 10	=SUM(ABOVE) \# "0" 15	=SUM(ABOVE) \# "0" 20	=SUM(ABOVE) \# "0" 25

Paragraph 46. Rate of Pay. Vacation will be paid at the hourly rate employee is being paid at the time they take vacation. Team Leaders who have worked a minimum of fifteen (15) weeks as Team Leaders would receive team leader pay when taking vacation. Team leaders not meeting this requirement would receive vacation pay at their skills and progression rate.

A. Vacations will be scheduled at the Employer's preference and in accordance with plant seniority ratings both as far as possible without disturbing production requirements. Final decision shall rest with the Employer provided employees are given thirty (30) days' advance notice of vacation commencement dates.

B. Employees who, at the convenience of the Employer, forego their vacation shall receive any new rates that might be established and in effect at the time of taking the vacation.

C. Employees shall not be required to split their vacations and shall be permitted to take their vacations in consecutive weeks, provided that the requirements of management are not thereby impeded or interfered with. Management will not arbitrarily deny consecutive vacation weeks. Senior employees shall have preference so far as practicable.

D. Where there is a plant shutdown/vacation period of only two (2) weeks, employees entitled to longer vacations may take the balance of their vacation at their convenience in increments of one week, or less in the event of a layoff, with management's prior agreement, provided, further, that production requirements shall not be thereby impeded. No employee shall be required to take more than two (2) weeks of his/her vacation during a plant shutdown situation.

Paragraph 48. Holiday During Vacation. When a paid holiday under the terms of this Agreement occurs during an employee's vacation, the employee shall receive an extra day's vacation or pay in lieu thereof, at the option of the Employer.

Paragraph 49. Termination. Employees whose employment is terminated for any cause and who are paid their prorated share of vacation pay shall start a new vacation service year on the date of reemployment.

Paragraph 50. Layoff. Employees who are laid off before qualifying for vacation pay, and who are reemployed within the current service year, shall retain their anniversary date and receive credit for all time worked during such service year.

Paragraph 51. Service Year Defined. The twelve (12) months following the date of employment and every twelve (12) months thereafter. An employee's date of employment shall always be considered the anniversary date when computing vacation benefits unless a new anniversary date is acquired as provided above in Paragraph 49.

Paragraph 52. Medical Plan. Effective April 2010, (first payable in May 2010) a premium payment of $600.86 ($487.59 Company, $113.27 Employee) per month per eligible or covered employee who has worked or been paid for at least forty (40) straight time hours in the previous month shall be made to the U.F.C.W. National Health and Welfare Fund (the Fund).

In the event the Employer contribution is not sufficient to provide the scheduled benefits, the employees shall make up the difference between the Employer contribution and the rate required by the Fund by payroll deduction taken by the employer from the employees' paychecks, and the Employer shall remit the full amount of contribution required by the Trust Fund.

All premium increases or decreases for the duration of this agreement will be paid fifty percent (50%) by the employer and fifty percent (50%) by the covered employee.

Employees whose employment is terminated, for any reason, or who retires must work a minimum of 80 straight time hours in the month employee terminates or retires to receive benefits in the following month.

Paragraph 53. Effective April 2010, (first payable in May 2010) a premium payment of $1278.92 per month per eligible covered retiree and $726.12 per month per eligible covered retiree who also receives Medicare will be paid to the U.F.C.W. National Health and Welfare Fund to provide medical coverage (excluding death benefits and accidental death benefits) for retirees who retire at age 60 and who have completed 20 years of service and for their spouses as follows:

· For persons who retired before January 1, 1990, and their spouses, their benefits are unchanged.

· For persons who retired under “Term of Agreement” coverage" prior to January 1, 1990, and their spouses, medical coverage will be the same as for active employees and will be provided during the term of this agreement or until the covered person becomes eligible for Medicare or reaches age 65, whichever is earlier.

· For persons who retired on or after January 1, 1990, and before April 1, 1992, and their spouses, medical coverage will be the same as for active employees and will be provided during the term of this agreement or until the covered person becomes eligible for Medicare or reaches age 65, whichever is earlier.

· For persons hired before April 1, 1992, and who retire on or after April 1, 1992, and their spouses, medical coverage will be the same as for active employees and will be provided during the term of this Agreement or until the covered person becomes eligible for Medicare or reaches age 65, whichever is earlier.

· Persons hired on or after April 1, 1992, will not be eligible for retiree medical coverage.

· During the term of this agreement, for those retirees whose plan of coverage is identical to active employee coverage, premium increases in the retiree medical plan in excess of twelve percent (12%) per year will be shared fifty percent (50%) by the employer and fifty percent (50%) by the covered retiree.

· All eligible/covered retiree and their eligible dependents will be required to enroll annually to maintain medical coverage.

Paragraph 54. For employees who are unable to work due to compensable industrial illness or injury, the Employer will pay its contribution (as set forth in paragraph 52) towards Health & Welfare and Major Medical Insurance for a period not to exceed three (3) months for any one disability. Said employees shall pay the same contribution as active employees.

Paragraph 55. The Employer agrees to make contributions to the U.F.C.W. National Health and Welfare Fund to provide benefits in accordance with an Agreement and Declaration of Trust and a Schedule of Contributions and Benefits which are adopted by the parties hereto and incorporated as part of this agreement, and a copy of which is annexed hereto as Appendix A.

Paragraph 56. Dental Plan. Effective April 2010 (first payable in May 2010) a premium payment of $68.11 ($60.49 Company, $7.62 Employee) per month will be made by the Employer for each eligible employee who has worked or been paid for at least forty (40) straight time hours in the previous month to Delta Dental Plan of California to maintain in effect the current plan of coverage.

All premium increases or decreases for the duration of this agreement will be paid fifty percent (50%) by the Employer and fifty percent (50%) by the covered Employee. Should an employee contribution be required, the Employer will deduct the required amount by payroll deduction taken from the employees' paychecks and the Employer shall remit the full amount of contribution required by Delta Dental Plan of California.

Employees whose employment is terminated for any reason or who retires must work a minimum of 80 straight time hours in the month employee terminates or retires to receive benefits in the following month.

Paragraph 57. The employer will establish and pay the administration cost for a Dependent Care Spending Accounts (DCSA) provided a minimum of two or more employees are participating in the plan.

Paragraph 58. In the event any employee is injured while at work and is required to leave work the employee shall be paid his full wages for the day of injury, provided the employee requires medical attention as the result of the injury, and upon the advice of the attending physician is unable to return to work.

Commencing on the fourth (4th) calendar day following the day of injury, PTO may be used to supplement that amount of money received under the Workers' Compensation Act to total 100% of the employee's normal weekly net take home earnings to a maximum of forty (40) hours per week. Employees must submit a written request to the employer to exercise this option.

When it is necessary, during the first year of injury, for post-medical treatment due to occupational injury or illness, the Employer will compensate the employee for loss of time not to exceed two (2) hours for treatment based on the following conditions:

(b) That the Employer has the right to implement reasonable controls to the use thereof.

When assigned to limited duty because of an industrial injury an employee would receive the pay they were earning prior to the injury for a period of up to two weeks.

Paragraph 59. Paid Time Off (PTO) will be earned as outlined in the following chart. Employee must have worked not less than ten (10) days within a calendar month in order for the month to be counted. PTO hours may be taken in the month following being earned. PTO will be paid at the hourly rate employee is being paid at the time taken.

PTO will accumulate to a maximum of one hundred twenty (120) hours in reserve at any one time. Any unused portion of PTO from the immediately preceding contract may be carried over to the first year of the current contract. Payout of hours in excess of 120 hours will be made on employees anniversary date.

MONTH(S) EMPLOYED IN SERVICE YEAR	Accrual/month
1ST	3.34
2ND	3.34
3RD	3.34
4TH	3.34
5TH	3.34
6TH	3.34
7TH	3.34
8TH	3.34
9TH	3.34
10TH	3.34
11TH	3.34
12TH	3.34
TOTAL HOURS	=SUM(ABOVE) \# "0" 40

With the exception of paid time off absence taken in conjunction with vacations or on plant shutdown days, all other paid time off absences will be counted as incidents under the Company's Chronic Absenteeism and Tardiness Policy. Doctors' excuses are required to tie in consecutive and multiple absences as one incident.

Employees entitled to State Disability Benefits may have their weekly benefits supplemented by their PTO in an amount equal to 100% of their normal straight-time earnings less any statutory deductions.

Consistent with what was agreed-to during the term of the parties 2006-2010 collective bargaining agreement, Employer shall continue to provide defined benefit retirement benefits through an Employer-sponsored plan. Those benefits shall be provided through the plan currently named the "Diageo North America, Inc. Cash Balance Pension Plan" or its successor (the "Plan"). The Plan shall provide benefits and be administered in accordance with the applicable Plan documents, which are incorporated into this Agreement by reference. The parties agree that the Plan may be amended and merged with other Diageo retirement plans, provided that any such amendment or merger will not cause benefit levels to be reduced during the term of this Agreement for any employee covered by this Agreement.

Paragraph 61. If an employee shall be absent from work for reasons of accident incurred on the job, the Employer shall make a contribution for each such employee during the period of disability based on the average number of hours worked per month during the last three (3) months immediately preceding each injury, but not for more than six (6) months during any one twelve (12) months' period; provided that such employee must have had at least one year's continuous service and must have worked at least sixteen hundred (1,600) straight-time hours during the twelve (12) months immediately preceding the injury.

Paragraph 62. An employee required to serve on a jury and who misses work shall be paid the difference between the employee's straight-time earnings and the amount paid the employee for jury duty, provided

(i) the employee gives the Employer three (3) working days' notice that he/she must report for jury duty or such notice as the employee has if the Court gives the employee shorter notice, and

(iii)the hours of jury duty occur during the employee's regularly scheduled shift or as otherwise provided herein.

Paragraph 63. If a first-shift employee, sometimes known as a day-shift employee, is released from jury duty four (4) hours or less after the normal starting time of his/her shift, or by 12:00 noon, whichever is earlier, the employee shall be required to report for work within one (1) hour after his/her release from jury duty. If a day shift employee is released from jury duty more than four (4) hours after the normal starting time of his/her shift, or after 12:00 noon, the employee shall not be required to work his/her scheduled shift on that day.

Paragraph 64. If a second or afternoon shift employee is released by the court at or before 12:00 noon, the employee shall be required to work the employee's scheduled shift. If a second or afternoon shift employee is released by the court after 12:00 noon, the employee shall not be required to work the employee's scheduled shift on that day. If the employee is released by the court at or before 12:00 noon, the employee must notify the Employer by telephone that the employee has been released and will be reporting to work. Said notification must occur as soon as possible.

Paragraph 65. A third or graveyard shift employee shall not be required to work the employee's scheduled shift immediately prior to the employee's first morning of jury duty. If a third or graveyard shift employee is released by the court seven (7) hours or more prior to the start of his/her scheduled shift, the employee shall be required to work his/her scheduled shift that night. If a third or graveyard shift employee is released by the court less than seven (7) hours prior to the start of his/her scheduled shift, the employee shall not be required to work his/her scheduled shift that night.

Paragraph 66. In the event of the death of a spouse, son, daughter, step-child, legally adopted child, or either a biological or step-parent (but not both) the employee shall be given up to five (5) consecutive business days of paid leave (excluding Saturday, Sunday, and holidays). Five (5) days broken by a weekend or holiday will be considered consecutive.

In the event of the death of a mother-in-law, father-in-law, brother, sister, half-brother, half-sister, legal guardian, grandchild or grandparent of the employee, said employee shall be given up tothree (3) consecutive business days of paid leave (excluding Saturday, Sunday, and holidays). Three (3) days broken by a weekend or holiday will be considered consecutive. In all cases, one of the days off must be the day of the funeral.

In the event of the death of a son-in-law, daughter-in-law, brother-in-law, or sister-in-law, said employee shall be paid for time missed from scheduled work, not to exceed one shift of the day of the funeral.

In all cases, the pay shall be the regular straight time earnings the employee would have received if the employee was or would have been scheduled for work on such day or days. Should the employee be scheduled for work on a Saturday or Sunday, time off taken as part of the funeral leave shall be granted and paid for at straight time. Proof of death and relationship is required.

If an employee’s vacation is interrupted by such death, and the Company is notified promptly, the number of days he/she normally would have been paid if working shall be added to his/her vacation with pay if the time is used as part of the funeral leave.

Employees on approved leaves of absence to care for members of their immediate family in the event of death of said family member during such leave of absence, shall receive the benefits set forth hereinabove, provided that the employee returns to work.

If funeral leave is obtained by misrepresentation, the employee shall be subject to immediate discharge.

Paragraph 67. Leaves of absences for Family Medical Leave (FMLA), California Family Leave (CFRA) or Pregnancy Disability Leave (PDL) must be requested in advance whenever feasible and will be provided as outlined under FMLA, CFRA and PDL. Amount of approved leave will not exceed FMLA,CFRA and PDL requirements. Approved valid personal leave of absences will not exceed 30 days. The Employer will require that the request for leaves of absence be submitted on a form provided for the purpose. If found to have been obtained by fraud or misrepresentation, the employee shall lose all seniority rights and be subject to dismissal. The acceptance of other employment during a leave of absence shall be grounds for discharge.

Paragraph 68. Requests for extension of leaves of absence must be made by the employee and be approved by the Employer or the Employer's designated representative three (3) days in advance of the termination date of the leave, unless a satisfactory reason is given. Leaves of absence may be extended if circumstances warrant. When a leave of absence or extension is granted, the Union shall be notified thereof.

Paragraph 69. The employee must notify the employee's manager or the Employer's designated representative of the available date of return to work at least three (3) days prior to the termination of the leave of absence.

Paragraph 70. Conditions for Leave: Employees will be granted a military leave of absence due to uniformed service in accordance with federal and applicable state law. “Uniformed” service includes the Army, Navy, Air Force, Marine Corps or Coast Guard; the Reserve unit of the Army, Navy, Air Force, Marine Corps or Coast Guard; the Army National Guard or Air National Guard; the Commissioned Corps of the Public Health Service; or any other category of service designated by the President of the United States in time of war or emergency. Uniformed “service” includes active duty, active duty for training, inactive duty training, National Guard duty under federal statute, and absence to take an examination to determine fitness for any of the above types of duty.

A. Notice of Leave: Advance verbal or written notice of military service is required as soon as practical under the circumstances unless giving advance notice is impossible, unreasonable, or precluded by military necessity. The employee, or someone on the employee’s behalf, should submit a copy of the employee’s military orders to Human Resources to support leave request, unless military necessity prevents such notice.

B. Pay During Leave: The employee will not receive any wages during the leave, but will be provided with Supplemental Military Leave Pay (“Supplemental ML Pay”) for up to 6 months of military leave if (i) Diageo has received documentary proof of the employee’s military hourly rate of pay, and (ii) the employee’s military hourly rate of pay is less than the employee’s Diageo hourly rate of pay.

Supplemental ML Pay will be computed as the employee’s Diageo hourly rate of pay, as of the date the military leave began minus the employee’s military hourly rate of pay. The result of the computation is then multiplied by the average number of hours per week the employee was regularly working for Diageo, not to exceed 40 hours.

The “average number of hours per week the employee was regularly working for Diageo” is the average number of hours per week the employee was regularly working for Diageo during the prior calendar year, not to exceed 40 hours. If the employee was not employed by Diageo during the prior calendar year, the “average number of hours per week the employee was regularly working for Diageo” is the average number of hours per week the employee has been regularly working during the current calendar year, not to exceed 40 hours.

C. Benefits During Leave: The employee and the employee’s dependents will be allowed to continue their existing participation in the Company’s group medical and dental insurance benefits plans as if the employee was continuing to work for the Company, up to a maximum of 6 months. This means that if the employee is receiving Supplemental ML Pay, the employee’s regular share of the benefit plan participation costs will be automatically deducted from supplemental ML Pay. If the employee is not receiving or is not eligible for Supplemental ML Pay, the employee will be required to make monthly payments to cover the employee’s regular share of the benefit plan participation costs no later than the 1^st day of the month for that month. Failure to pay the employee’s regular share of the benefit plan participation costs for 30 days will result in termination of benefit plan participation.

If the employee is on military leave beyond 6 months, the employee will be required to pay the COBRA premium costs, for continuing the employee’s and dependents’ existing participation in the Company’s group medical and dental insurance benefits plans, for up to 24 months of military leave.

During military leave, participation and coverage under all other employee benefits and benefit plans will be suspended unless otherwise required by federal or applicable state law.

D. Returning to Work; Reemployment Employees returning from military leave will be promptly reemployed in accordance with federal and applicable state law, if the following criteria are satisfied:

1. The employee had been employed in a regular staff position (e.g., not a position that was for a brief, non-recurrent period with no reasonable expectation of continued employment for an indefinite or significant period of time);

2. The employee gave notice to the employer before leaving, unless providing such notice was prevented by military necessity or was otherwise impossible or unreasonable under the circumstances;

3. The cumulative period of active service did not exceed five years, excluding certain services required by, among other things, a declared war or national emergency;

4. The employee was not separated from the military with a disqualifying discharge or under other than honorable conditions;

5. Circumstances have not so changed as to make such reemployment impossible or unreasonable and does not impose an undue hardship on the Company (e.g., the Company may not be required to reemploy the employee where the employee’s position has been eliminated for unrelated business reasons); and

6. The employee reported back to the civilian job as outlined below, unless federal or applicable state law provides otherwise:

a) 3 or fewer days of military service – must report to work on the first regularly scheduled day/shift after the end of service, allowing reasonable travel time and 8 hours of rest;

b) 3 to 180 days of military service – must report to work no later than 14 days after end of service allowing reasonable travel time; and

c) more than 180 days of military service – must report to work within 90 days after end of service.

Upon reemployment, the employee will be eligible to participate in all employee benefits and benefit plans then being offered to employees.

Paragraph 71. The Employer shall not discharge any employee without just cause. Prior to any proposed discharge, where feasible and practicable the Employer shall notify the Steward and/or a Union Officer to be present when formal charges are made against an employee.

Paragraph 72. In order that the union representative may have sufficient time to investigate the charges, the employee shall not be discharged but may be suspended for two (2) business days. Written and telephone notice of such suspension will be furnished to the Local Union. If, after such two (2) days, the matter cannot be satisfactorily settled, the employee may be considered discharged.

Paragraph 73. If the Union considers such discharge to be unjust, the matter shall be handled in the manner more fully set forth in Section XXIV hereof, provided the grievance is filed in writing with the Employer and the Union within five (5) business days after such discharge becomes effective.

Paragraph 74. In the event such discharge is determined to have been unwarranted, the employee shall be reinstated in good standing, without prejudice or loss of seniority rights, and shall receive full pay for the time lost, less the amount of earnings elsewhere during the period of time between the employee's discharge or suspension and the date that the employee is put back on the Employer's payroll. Nothing herein shall interfere with the arbitrator's authority to determine upon the facts that a temporary disciplinary layoff without pay might have been justified, rather than a discharge.

Paragraph 75. In the event any employee is discharged, such employee shall receive full pay due the employee, including prorated vacation earned as set forth in Section XIV, less any monies due the Union on Check-off.

Paragraph 76. Complaints as to minor infractions shall be removed from the employee's personnel file immediately upon the completion of a twelve (12) month period with no recorded complaint.

With regard to violations of unexcused absences and chronic absenteeism and tardiness, a written warning will not be used after the lapse of twelve (12) months from date of issuance of such warning in the case of employees who work six (6) months or more in their anniversary year. In the case of employees who work less than six (6) months in their anniversary year, a written warning will not be used after the lapse of 260 days worked or two (2) years, whichever is sooner, from the date of issuance of such warning. Ten (10) days worked in a calendar month would constitute one (1) month in determining the number of months worked during an employee's anniversary year.

Paragraph 77. Disciplinary action as outlined in Schedule A shall be binding on the parties with respect to the offenses and procedures set forth in Schedule A which is made a part of this Agreement. Schedule A shall not be construed to be all inclusive and the Employer shall have the right to discipline, for just cause, for other infractions not specifically designated in Schedule A.

It is recognized that there may be degrees of safety violations, but generally, such violations are of a serious nature because of danger to the employee or to other employees, or danger to the property of the Employer. Therefore, violations of CAL-OSHA or published safety rules are not subject to Schedule A, but rather, appropriate discipline will be imposed on a case-by-case basis.

A. Grievances are defined as disputes about the interpretation or application of this Agreement and alleged violations of the Agreement.

B. Grievances shall be presented to the Employer within seven (7) calendar days from the date of occurrence. If such notice is not given to the Employer within seven (7) calendar days of the occurrence of the facts upon which such complaint is based, then it shall be deemed waived and abandoned and shall not thereafter form the basis of a grievance between the parties hereto.

C. The grievance shall first be taken up with the immediate supervisor of the grievant. The supervisor will have five (5) business days to return the grievance with an answer to the steward. The Steward will have five (5) business days to refer the grievance to the department head. The department head shall have five (5) business days to return the grievance with an answer to the steward. The steward will have five (5) business days to refer the grievance to upper management. Upper management shall have five (5) business days to answer and return the grievance to the union office. If the time limit is not met, either party may send a written notice requesting a response. If no response is received within 30 days of this notice, this will constitute a waiver or default of the party’s position in the grievance.

D. Disputes arising from issues pertaining to skills and progression program will not be handled through the Grievance & Arbitration Procedure. Skills and progression program issues will be handled by an in-house committee as outlined under Section XXV, paragraph 82.

A. Arbitration may be demanded by serving notice thereof on the Chief Local Executive of the Employer and upon the General President of the International Union.

Failure of the union to request arbitration within thirty (30) days of Management's final step response of the in house grievance procedure as set forth in paragraph 78C shall constitute a waiver and abandonment of the grievance.

B. Within ten (10) days from the receipt of such notice, the Employer and the Union shall select a mutually satisfactory arbitrator to hear and determine the dispute. If after ten (10) days from the receipt of notice, the parties cannot agree upon the selection of an arbitrator, then the arbitrator shall be selected from a panel of not less than seven (7) names by the Federal Mediation and Conciliation Service.

C. The arbitrator shall not have power to add to, or subtract from, or modify any of the terms of this Agreement, nor shall he/she substitute his discretion for that of the Employer or the Union, nor shall he exercise any responsibility or function of the Employer or the Union. The arbitrator shall have authority to interpret wage rates and the application thereof, but he/she shall have no authority to create new wage rates.

D. The decision of the arbitrator shall be final and binding on all the parties involved in such controversy or grievance and shall conclusively determine the dispute.

E. Each party shall bear the cost of presenting its own case. The fees and expenses of the arbitrator shall be equally divided between the Union and the Employer. If the arbitration is canceled, the cancellation fee shall be borne by the party canceling arbitration.

Paragraph 80. International Union Involvement. In the event the International Union regards a grievance to be of sufficient importance, such grievance may be instituted and processed by the International Union, with the requirements that the initial filing period of seven (7) days and the arbitration step must be followed. Time limits may be extended by mutual agreement between the International Union and the Employer.

Paragraph 81. Time Limits. The time limits set forth herein shall equally bind each party to this Agreement. Any time limit may be extended for a fixed period of time if mutually agreeable to the Union and Company. Any agreed upon time extension shall be noted and signed by the Company and Union representatives on the grievance form.

Paragraph 82. An in-house committee shall hear and decide all issues pertaining to disputes over skills and progression upgrades and to the assignment of training out of seniority.

The committee shall consist of three Union employees. The three Union employees shall be picked from a list of five names supplied by the Company to the Union. The Company and the employee registering the complaint shall both be allowed to state their position to the committee. The committee shall then render a decision by voting and the decision of the majority of the committee shall be final and binding on both parties.

It is agreed that upgrades and placement for training shall be heard as stated and shall not be part of the grievance and arbitration procedure.

Paragraph 83. There shall be no strike or lockout during the term of this Agreement; however, it is understood and agreed that, in the event of a dispute between the Employer and the Union concerning the interpretation of any provisions of this Agreement, before the Union resorts to any strike or the Employer resorts to any lockout, such dispute shall be submitted to arbitration in the manner hereinabove set forth. However, refusal of either party to this Agreement to submit to arbitration or refusal of either party to abide by the decision of any arbitrator, shall be deemed an unfair labor practice and the other party shall be free to take whatever action or actions it deems necessary to safeguard and protect its best interests.

Paragraph 84. The Employer Drug and Alcohol Testing Program, attached hereto, is adopted and made a part of this Agreement as though fully set forth herein.

Paragraph 85. This Agreement shall become effective as of April 1, 2010, and shall remain in full force and effect until midnight, March 31, 2013, and from year to year thereafter, unless either party gives at least (60) days' notice in writing to the other party prior to any annual expiration date of its desire to amend, terminate, or otherwise modify this Agreement.

Paragraph 86. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

Paragraph 87. Wherever the masculine gender is used in this Agreement, it shall include the female and wherever the female gender is used in this Agreement, it shall include the male.

PAICINES

MAINTENANCE WAGE SCHEDULE

a. We anticipate having one team leader who will be expected to plan and organize the annual workload, to meet and select suppliers and handle maintenance purchasing, to lead the maintenance team and be accountable for safety, sanitation, training and development, etc.

b. Technician will be expected to demonstrate a variety of craft skills needed in the Winery at a high level of proficiency. Must be able to organize and lay out own workload and supervise the work of helper(s) or mechanic(s) reporting to them. Must also demonstrate a high level of problem solving capability, and have a good safety and reliability record.

c. Mechanic will be expected to demonstrate a reasonable level of proficiency at one or more craft skills, such as welding, pipefitting, automotive maintenance, equipment repair, electrical, or other appropriate skills. The more skills and higher level of proficiency demonstrated, the higher the classification. Skills required for various levels are to be defined by August 15, 1996. Specific skill sets and definitions for the categories will be worked out by a team consisting of management and maintenance department/union members.

a. This position has responsibility and accountability for the distribution of work to the team as well as the quality of the work, communication with management and other teams (shifts and maintenance), and normal operating issues like safety, food safety, productivity, etc.

b. ¹ “Team Leader” will receive a premium of $1.25 per hour over the rate determined by skills rating. This premium rate will be paid only while the individual is actually serving as a team leader and receives a “mostly meets” or higher evaluation on their performance rating

c. ² “Team Leader in Training” will receive a premium of $.75 per hour over the rate determined by skills rating. This premium rate will be paid only while the individual is serving as team leader in training and receives a “mostly meets” or higher evaluation on their performance rating The probationary period for Team Leaders in Training will be sixty (60) days worked.

d. Team Leaders will be selected by bid as outlined in paragraph #7 of Seniority Supplement. The number required will be determined by management.

e. *Team Leaders who have three (3) years in this position will receive an adjustment to hourly rate of $20.00 payable only while the employee is serving as team leader. No other premiums will apply, except shift differential. Eligibility for future adjustments will be provided as outlined under performance rating adjustments.

f. *Team Leaders with less than three (3) years in this position will receive adjustments as outlined under skills and progression.

The training and testing team is responsible for developing the schedule for testing, testing frequency and establishing testing procedures.

Incremental increases of $.20 per hour may occur up to four times per year. Management will determine the number of employees to be trained for the various task blocks. Employees who have not completed all of skills and progression are expected to advance at a rate of at least two skills learned/year. In order to receive POB pay, employees must rate “mostly meets” or higher in their performance rating.

Employees who have completed all skills and progression will qualify for performance review adjustments as outlined under wage schedule.

Qualified employees are expected to be able to set up, start up, control, shut down, sanitize, clean up and maintain logs and other paperwork.

An operator who demonstrates the skill for any task block receives starting POB rate of $15.00. An operator who has demonstrated the skill for any two task blocks would receive the starting POB rate + additional $.20 per hour.

After being certified on any task block, the employee is eligible for the pay for the task block for a period of one year. Each time the employee uses the skill, the eligibility period is extended. If one year passes and the employee has not used the skill, the employee would have 90 days to retest or forfeit the pay for the task block. It is the employee’s responsibility to obtain training.

Anyone who received an incremental increase for a task block that has been eliminated due to equipment removal, will retain that adjustment.

3. Performs with a high level of efficiency, quality work, and good housekeeping.

The Company is concerned about the use of alcohol and controlled substances in or affecting the work environment. Use, and particularly abuse, of alcohol and/or controlled substances on the job adversely affects an employee's efficiency, safety and health, and therefore impairs his/her value as an employee. In addition, it constitutes a potential danger to the welfare of other employees, and exposes the Company to risks of property loss/damage, or injury to other persons.

Therefore, it is the policy of the Company that no employee will be allowed to work who misuses prescription drugs or who possesses, distributes, sells, offers to sell or distribute, uses or who has a forensically acceptable positive quantum of proof (as set forth herein) of any drug, controlled substance or alcohol in his or her body. Any employee who violates this policy is subject to immediate discharge.

This policy is applicable to all employees of the Company. The requirements of this procedure will also be applied to all employees reporting with a potential or actual industrial injury, any employees who contributed to or directly caused an occupational accident or any employee suspected of being under the influence of controlled substances or alcohol while working.

A. For purposes of this policy, an employee shall be considered "on the premises" whenever he/she is:

(3) Driving or riding as a passenger in a Company vehicle or a private conveyance for which the Company has authorized reimbursement.

B. "Drug" or "controlled substance" -- any substance or medication that will modify one or more of the normal body functions when administered to an individual (i.e., coordination, reflexes, vision, mental capacity or judgment, etc.).

In order to eliminate the safety risks which result from being under the influence of alcohol or drugs, the parties have agreed to the following procedures:

In cases in which an employee is acting in an abnormal manner and the Employer has "probable suspicion" to believe that employee is under the influence of controlled substances and/or alcohol, the Employer may require the employee (in the presence of a Union Shop Steward or if Union Shop Steward is not available a senior union member) to go to an on-site or off-site medical clinic, medical office or dispensary to provide a blood specimen for laboratory testing. Probable suspicion means suspicion based on specific personal observations that the Employer representative (including Union Team Leaders) can describe concerning the appearance, behavior, speech, or breath odor of the employee. An employee's involvement in an industrial accident or injury constitutes probable suspicion, regardless of whether reported at the time of the injury or thereafter. Except for suspicion based on an industrial accident, suspicion is not probable and thus not a basis for testing if it is based solely on third-party observation and reports. If requested, the employee will sign a consent form authorizing the clinic, office or dispensary to collect a blood specimen and release the results of the laboratory testing to his/her Employer.

When an employee is asked to submit to a drug test and/or alcohol test, he/she shall be informed of the reasons he/she is being asked to submit to the test. The employee shall be informed that refusal to submit to the testing will constitute a presumption of intoxication and subject the employee to discipline up to and including discharge. It is understood that said presumption will be raised if the employee refuses testing and if the Company had reasonable grounds for testing in the first place.

If the employee consents to testing, he/she shall sign a form of consent authorizing the withdrawal of a specimen of blood and a release of the results of the laboratory testing to the Employer, but this shall not constitute a waiver of any claim or cause of action under the law.

At the time a specimen is collected, the employee shall be given a copy of the specimen collection procedures. The specimen must be immediately sealed, labeled, and initialed by the employee to ensure that the specimen tested by the laboratory is that of the employee. The required procedure is as follows:

1. Blood specimen shall be collected in a tamper-resistant blood container in full view of the employee until transferred to, sealed and initialed in a tamper-resistant blood container.

2. Immediately after the specimen is collected, the blood container shall, in the presence of the employee, be labeled and then initialed by the employee. If the sample is collected at a clinic that does not perform the actual testing of the sample, the specimen shall be placed in a transportation container. The container shall be sealed in the employee's presence and the employee will be asked to initial or sign the container. The container shall be sent to the testing laboratory on the earliest business day by the fastest available method.

The parties recognize that the key to chain of possession integrity is the immediate labeling and initialing of the specimen in the presence of the tested employee. If each container is received at the laboratory in an undamaged condition with properly sealed, labeled and initialed specimens, as certified by that laboratory, the Employer may take disciplinary action based upon properly obtained laboratory results.

The Employer may take disciplinary action based on the test results as follows:

A. If the test results show a forensically acceptable positive quantum of proof of cocaine, heroin, PCP, LSD, barbiturates, amphetamines, or any other controlled substance (excluding marijuana) or the presence of a forensically acceptable amount of metabolites of the above-mentioned substances, said results shall constitute just cause for immediate discharge.

B. If the initial test results meet or exceeds 50 nanograms cannabinoids and/or total cross-reactive cannabinoids or the equivalent depending on the methodology used by the laboratory and of the metabolites measured, and is confirmed with a second testing a different methodology, said results shall constitute just cause for immediate discharge.

C. If the probable suspicion test results of blood specimens by gas chromatography/mass spectrometry show marijuana concentrations as set forth in Section VI the employee shall be subject to discharge.

D. If the test results show a concentration in the person's blood equal to or above the equivalent of .05 percent by weight of alcohol in blood, said results shall constitute just cause for immediate discharge, subject to the provisions of the Rehabilitation Section herein.

E. If an employee is convicted of driving under the influence of alcohol while operating a Company vehicle, said conviction shall constitute just cause for disciplinary action, up to and including immediate discharge.

Where blood specimens alone are obtained, the blood/serum must be analyzed using appropriate methodology such as gas chromatography/mass spectrometry.

If a blood specimen is tested for cannabinoids, it will be reported as positive under any of the following results obtained after testing blood specimens by gas chromatography/mass spectrometry:

1. The blood/serum contains at least 2 and up to 5 nanograms THC/ml and at least 10 nanograms THC metabolites/ml;

2. The blood/serum contains at least 5 or more nanograms THC/ml, regardless of the THC metabolite concentration; or

3. The blood/serum contains 20 or more nanograms THC metabolites/ml, regardless of THC concentration.

If none of the above blood marijuana findings results are obtained, a "negative" finding shall be reported.

All specimens deemed positive by the laboratory according to the prescribed guidelines must be retained at the laboratory for a period of six (6) months.

The laboratories used must be able to perform all the required testing procedures for probable suspicion under one roof to maintain chain of possession integrity. The parties agree to mutually establish a list of approved laboratories. The parties also agree to retain the right to audit and inspect the individual laboratories to determine conformity with the laboratory requirements as established herein.

The employee shall note, on a form furnished by the Employer and/or clinic and/or laboratory and/or physician, the use of any prescription or non-prescription medications before any test is given. The Employer may require the employee to provide evidence that a prescription medication has been lawfully prescribed by a physician. Through the use of the above described laboratory procedures, the laboratory will report significant presence of all prescription and non-prescription medications. If an employee is taking a prescription or non-prescription medication in the appropriate described manner and has noted such use, as provided above, he/she will not be disciplined for such. Medications prescribed for another individual, not the employee, or prescribed for the employee but not used in the manner as prescribed, shall be considered to be illegally used and subject the employee to discipline.

There will be up to two persons in the personnel department of each plant who will be designated to receive testing results. They will notify medical and other Company managers strictly on a need-to-know basis.

No laboratory reports or test results shall appear in an employee's personnel folder. Information of this nature will be included in the medical file. The inside cover of the personnel folder will contain a marker to show that this information is contained elsewhere.

A. An employee shall be permitted the opportunity to enter an alcohol treatment program, provided the employee requests to enter the program at a time when he is not under investigation for being under the influence of alcohol at work.

B. An employee shall be permitted the opportunity to enter a drug abuse treatment program, provided the employee requests to enter the program at a time when he/she is not under investigation for being under the influence of drugs at work.

C. Employees shall be allowed only one opportunity to enter into a treatment program, provided that if within ninety (90) days following the conclusion of the initial period of treatment the employee voluntarily requests an opportunity for a second course of treatment because the first one was unsuccessful, and the employee is at that time not under investigation for being under the influence of alcohol and/or drugs at work, the employee shall be allowed to submit himself for a second course of treatment.

D. To be eligible for return to work, the employee must complete, to the full satisfaction of the rehabilitation clinic or counselor, the required course of treatment, and the employee must, to the satisfaction of the rehabilitation clinic or counselor, continue with all post-program follow-up care, therapy, meetings, consultations, tests and evaluations.

E. Each rehabilitation program must be approved by the Company for the employee to be validly enrolled therein.

F. Upon complying with the conditions set forth in Paragraphs D and E above, the employee shall be eligible to return to work under the conditions outlined in this Paragraph.

1. The employee shall be placed on a probationary period of one year, during which time the employee is subject to discharge without recourse to the grievance procedure in the event of any violation of Section I, POLICY, of the Drug and Alcohol Testing Program.

2. The employee further agrees to sign a separate waiver of the right to bring any action against the Employer before any administrative agency or court arising out of a discharge as described herein.

3. The employee may be reassigned from his position to an equal or lower paying position where, in the discretion of the Company, the continuation of the employee in his former position presents a potential danger of injury to the employee involved or other employees who work with or in the area of the employee, or the risk of damage to Company property, facilities or equipment.

4. The employee agrees to submit to such random drug testing as may be required or requested by the rehabilitation program, counselor or clinic, and up to six (6) random tests as requested by the Company at any time during the employee's one-year probationary period.

G. The foregoing agreement to permit employees to enroll in a rehabilitation program is inapplicable to any employee who is discovered to be consuming, selling, offering to sell or distribute, distributing or in possession of alcohol or illegal drugs. This agreement to submit employees to rehabilitation is not applicable to any employee who, while under the influence of alcohol or illegal drugs, is involved in an accident involving injury to any person, including the employee, or damage to property. Finally, this agreement to submit employees to rehabilitation is not applicable to any employee determined by the rehabilitation program, clinic or counselor not to have a problem or habit with alcohol or drugs or who is deemed not to be able to benefit from a rehabilitation program.

H. Employees who are not eligible for rehabilitation but found to have violated Section I, POLICY, shall be subject to discharge in accordance with the provisions of the Drug and Alcohol Testing Program. Employees who do not successfully complete the program or violate the provisions of follow-up care are subject to discharge.

Within twelve (12) months of an employee’s date of hire, provided that the employee is at the time actively on the payroll, employees shall acquire seniority after seventy (70) continuous working days of employment, and said employees' seniority shall revert back to date of original hire. However, if there is any interruption of less than six (6) months during the first seventy (70) working days of employment, the employee shall acquire seniority after the first seventy (70) days worked. Employees with interruptions/break in service of six (6) months or more, who are rehired, must meet the above requirement and will acquire seniority after working a minimum of seventy (70) days.

It is understood that the transfer of an employee within the plant shall not affect such employee's basic seniority rights as an employee of the Employer.

In those plants which have established, or hereafter establish, a departmental operation, seniority for the purposes of a reduction in work force and recall, shall be established on a plant seniority basis for each of the following departments where applicable: Cellar and Maintenance.

In those plants which have established permanent shifts (or hereafter establish permanent shifts) it is agreed that seniority shall prevail in the assignment of employees to shifts in accordance with the provisions governing Shift Preference set forth in Paragraph 14 of this Supplement.

Seniority or the acquisition thereof shall be broken for the following reasons:

(d) If the employee is absent for two (2) working days without properly notifying the Employer; unless a satisfactory reason therefor is given.

(e) If the employee fails to return to work within two (2) working days after being notified to work and does not give a satisfactory reason therefor.

(g) Failure to advise Employer of current telephone number and address after reasonable attempts by the Employer have been made to contact the employee.

The Employer will post a seniority roster showing the seniority standing of each employee as of November 1 of each year. A copy will be mailed to the local union. Any objections to the seniority roster shall be made in writing by December 1 of each year. If there is no objection registered by this date, the roster will stand as posted. If objections are registered, a corrected list is to be posted by January 1.

All vacancies and new assignments will be posted by written notice on the Company bulletin boards. Such notices will describe the vacancy or new assignment and the hour and date bids close. The bidding period will be three (3) working days; provided, however, that the Employer shall have the right to select in its sole discretion from applicants and/or current employees the person(s) to fill the positions(s) of Maintenance Team Leader Working, Team Leader-Working-all Departments, Maintenance Technician, Cellar Team Leader, and Team Leader. At the end of the bidding period the vacancy or new assignment will be given to the employee according to seniority, where ability and performance evaluation rating are equal and who has made written application therefor. A copy of all job bids shall be sent to the union office.

In the event of a bona fide hardship or physical disability, an employee shall be privileged to bid down to a lower classification or laterally to a classification with a similar wage rate. In the event the hardship or physical disability no longer exists, the employee shall have the right to again bid upward to the position which the employee had vacated or to another position to which the employee is qualified.

An employee who bids out of Process Operator B rate to obtain shift preference will have his rate reduced to the appropriate racker/blender rate.

An employee shall have the right at any time within two (2) weeks prior to commencing the employee's vacation to submit a written request that the employee's name and qualifications be considered for any vacancy or new assignment which may arise during the employee's vacation in classifications set forth upon the written request. Employees absent on vacation shall have the privilege of bidding on any job posted during their absence. Such bids must be made within three (3) working days of their return to work.

If an employee is laid off for five (5) consecutive working days, he/she may within two (2) working days thereafter submit a written request that the employee's name and qualifications be considered for any vacancy or new assignment which may arise during the employee's layoff. Such written request must set forth the classifications and shift for which the employee desires to be considered. If such employee on layoff is selected to fill a vacancy he/she must report for work within two (2) working days after being notified of his/her selection. The notification may be written or verbal at the employee's current address or telephone number given the Employer.

The Employer shall notify the Union of its decision in connection with any promotion or demotion within three (3) days. In the event no objection or grievance is filed by the Union within seven (7) days from the date of such notification, the matter shall be considered closed. A copy of all job bid awards and promotions will be sent to the Union office.

This paragraph applies except as set forth in Paragraph 7. Where ability between employees is equal, plant seniority shall be the sole determining factor in promotions, demotions, layoffs, and recalls in classifications covered by this Agreement. The Employer shall be the judge of ability, which judgment shall not be exercised in an unreasonable or arbitrary manner. Prior to selection of any employee for promotion, the Employer shall consider fitness and ability of all employees who are senior in service to the employee selected. Any employee in a lower classification with greater plant seniority than the employee selected for promotion by the Employer shall have the right to apply for said position. If not accepted, the employee may protest through the grievance procedure provided in Section XXIV.

In a reduction of work force due to production considerations, seniority employees whose plant seniority and experience with the Employer is insufficient to entitle them to remain in any classification within their department will be offered the options below, provided they have sufficient plant seniority and in each case conditioned upon their experience with the Employer and ability to perform the work of the classifications and job available. Seniority employees who are laid off from their department may exercise their plant-wide seniority to:

(a) Transfer to any department in which they had previously worked in a classification previously held, or

(b) Transfer to a classification in another department at an equal or lower rate held by another employee with less plant seniority in which the senior employee has the ability or experience to perform.

(d) The Shift Preference Application will be acted upon by the supervisor on the basis of the employee's plant seniority date, rather than date of said application, unless it is determined that a hardship situation or school attendance program deserves priority over length of service.

(e) Employees in the exercise of their shift preference will not be allowed to change shifts during the workweek for the purpose of obtaining overtime.

When reducing the work force due to conditions beyond the control of the company which are temporary in nature, including those specified in Paragraph 35 of this Agreement, not exceeding one (1) working day, employees within the department affected will be laid off and returned to work by their plant seniority in their classification, department, and shift.

By mutual agreement between the Employer and the Local Union, this time period can be extended.

The Employer agrees to give employees within a department and classification their preference on shifts. Shift Preference Applications shall be filed in writing on forms provided by the Employer and will remain active during two separate periods in which filed; “crush” and “rest of year”. Qualified employees with an active Shift Preference Application form will be transferred in order of their plant seniority to the shift of their choice to fill vacancies within their department and classification, subject to the conditions specified herein:

(a) The Employer agrees that plant seniority shall prevail in the assignment of employees to shifts. However, it is recognized that it is impossible to operate the Employer's facilities with all of the senior employees on one shift. The parties agree, therefore, that plant seniority alone cannot be the sole determining factor in the assignment of employees to shifts.

(b) No employee shall have a Shift Preference Application acted upon more than once each three (3) months unless the employee within that period is displaced from the employee's preferred shift through a reduction in force. In such event, the three (3) months' requirement shall be waived and the employee may submit a new Shift Preference Application. Such requests will be reduced to writing and submitted to the Personnel Department.

(c) Occasionally it will be necessary for the Employer to assign newly hired or transferred employees to preferred shifts for familiarization and orientation purposes, when such requirements exist. In such instances, the Employer retains the right to determine the time required (not to exceed thirty (30) days unless extended by mutual agreement) due to the variations in job requirements and in the entry qualification levels of incumbent employees. Permanent shift assignments will be made immediately after the familiarization and orientation is completed. Employees who have been temporarily assigned from their preferred shift to another shift shall be given the opportunity to return to their preferred shift as early as practicable, but in no event later than the beginning of the succeeding workweek and, in any event, before a new employee or less senior transferred employee is permanently assigned to that shift.

This information may be obtained by going to the Union Local’s website or contacting local union