TABLE OF CONTENTS

PARTIES TO CONTRACT 2

I UNION RECOGNITION 2

II UNION SECURITY 2

III CHECK-OFF INITIATION FEES, DUES AND ASSESSMENTS 3

IV NON-DISCRIMINATION 4

V MANAGEMENT RIGHTS 4

VI PROBATIONARY PERIOD 5

VII SENIORITY 5

VIII LAYOFF/REDUCTION IN FORCE 7

IX JOB POSTING/BIDDING 8

X SHIFT PREFERENCE 10

XI HOURS OF WORK 11

XII MAINTENANCE TRAINEE PROGRAM 12

XIII ATTENDANCE 12

XIV REPORT-IN AND CALL-BACK PAY 14

XV SUBCONTRACTING 15

XVI JOB ABOLISHMENT/SEVERANCE PAY 15

XVII HOLIDAYS 16

XVIII VACATIONS 17

XIX JURY DUTY 20

XX BEREAVEMENT LEAVE 21

XXI LEAVES OF ABSENCES 23

XXII UNION SHOP STEWARDS 23

XXIII UNION BULLETIN BOARDS 24

XXIV UNION ACCESS 24

XXV GRIEVANCE PROCEDURE 25

XXVI ARBITRATION 27

XXVII DISCIPINE 28

XXVIII OVERTIME 30

XXIX OVERTIME PROCEDURE 30

XXX DRUG AND ALCOHOL TESTING PROGRAM 32

XXXI HEALTH AND WELFARE, MAJOR MEDICAL,

DENTAL, AND EMPLOYEE ASSISTANCE PROGRAM (EAP) 39

XXXII WORKERS' COMPENSATION 41

XXXIII SICK PAY 42

XXXIV PENSION PLAN AND 401K 43

XXXV NO STRIKE-NO LOCKOUT 43

XXXVI WORKPLACE VIOLENCE 44

XXXVII SCOPE OF AGREEMENT 44

XXXVIII TERMINATION OF CONTRACT 44

XXXIX GENDER 45

XL MILITARY DUTY AND REEMPLOYMENT RIGHTS 45

XLI FUTURE CONDUCT OR AGREEMENTS BY THE PARTIES 45

XLII WAGE PROTECTON 46

WAGE SCHEDULE 47

SIGNATURE PAGE 48

SUPPLEMENTAL AGREEMENTS COVERING THE MODESTO,

LIVINGSTON, OR FRESNO FACILITIES

 

 

PARTIES TO CONTRACT

This Agreement is entered into on this 16th day of April, 2009, by and between the United Food and Commercial Workers International Union, CLC (UFCW) on behalf of its Locals 8 Golden State and 186D hereinafter called the ―Union‖ and E. & J. Gallo Winery hereinafter called the ―Company.‖

SECTION I

UNION RECOGNITION

1.1 The Company recognizes the Union as the exclusive representative of employees as defined in Section 1.2 of this Agreement.

1.2 Whenever used in this Agreement, the term "employees" shall mean all production and maintenance employees, employed by the Company at its Modesto facilities, at 200 Yosemite Blvd., Modesto, CA 95354, and 600 Yosemite Blvd., Modesto, CA 95354, its Livingston facility at 18000 W. River Road, Livingston, CA 95334, and its Fresno facility at 5610 E. Olive Ave., Fresno, CA 93727, but excluding exempt, salaried non-exempt, and members of other bona fide, recognized collective bargaining units as covered by collective bargaining agreements with the Company.

1.3 Unless in case of bona fide emergencies, the training and instruction of bargaining unit employees, or research or pilot plant operations, managers, team leaders, and persons excluded from the bargaining unit shall not be permitted to perform any work normally performed by bargaining unit employees, and which said employees now perform.

SECTION II

UNION SECURITY

2.1 An employee employed at the time this Agreement becomes effective, who is a member of the Union at such time, shall tender to the Union an amount of money equal to the monthly dues and assessments charged by the Union to all employees who are members of the Union.

2.2 An employee employed at the time this Agreement becomes effective, who is not a member of the Union at such time, shall not later than 75 workdays, or the effective date of this Agreement, whichever is later, tender to the Union an amount of money equal to the initiation or reinstatement fee, and 3

assessments, if applicable and the monthly dues charged by the Union to all employees who are members of the Union.

2.3 An employee who is initially employed or re-employed after the time this Agreement becomes effective shall, not later than 75 workdays, after the commencement of employment, tender to the Union an amount of money equal to the initiation or reinstatement fee, and assessments, if applicable and the monthly dues charged by the Union to all employees who are members of the Union.

2.4 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 herein above 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.

2.5 Upon completion of the employee's probationary period, the Company agrees to provide the Union, in writing, on the monthly dues report, the employee's name, address, social security number, age, telephone number, and clock number.

SECTION III

CHECK-OFF

INITIATION FEES, DUES AND ASSESSMENTS

3.1 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.

3.2 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.

3.3 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.

 

3.4 Sick leave payments will not be the subject of monthly dues deduction. However, vacation pay is subject to a monthly dues deduction.

3.5 The Employer must indicate on the monthly dues report all layoffs, leaves of absence and terminations.

SECTION IV

NON-DISCRIMINATION

4.1 In the administration of this Agreement, neither the Company nor the Union shall discriminate against any employee because of that employee's race, color, sex, religion, national origin, age, veteran status, or union membership, or against qualified individuals with a disability, or against individuals for any reason prohibited by law.

4.2 This section of the Agreement shall be interpreted in accordance with applicable federal and state law.

4.3 In the administration of this Agreement, the Company and the Union will provide reasonable accommodation to qualified employees with a disability and to employees based upon their religious tenets. The need for and the extent of such accommodations shall be determined by the Company in accordance with its interpretation of the requirements of the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the applicable portions of California’s Fair Employment and Housing Act, even if such accommodations may be in conflict with a provision of this Agreement.

4.4 An arbitrator hearing a grievance that alleges a violation of this section is authorized to award only reinstatement, back pay and/or back benefits to a prevailing grievant and has no authority to award compensatory, punitive, or any other monetary damages not specifically mentioned above.

SECTION V

MANAGEMENT RIGHTS

5.1 Except as expressly modified or restricted by a specific provision of this Agreement, all statutory and inherent managerial rights, prerogatives, and functions are retained and vested exclusively in the Company, including, but not limited to, the rights, in accordance with its judgment and discretion: to reprimand, suspend, discharge, or otherwise discipline employees for just cause; to determine the number of employees to be employed; to hire employees, determine their qualifications and assign or direct their work; to promote, demote, transfer, lay off, and recall to work employees; to set the standards of productivity, the products to be produced, and/or the services to be rendered; to determine the amount and 5

forms of compensation for employees; to maintain the efficiency of operations; to determine the personnel, methods, means, and facilities by which operations are conducted; to set the starting and quitting time and the number of hours and shifts to be worked; to use independent contractors to perform work or services; to subcontract, contract out, close down, or relocate the Company's operations or any part thereof; to expand, reduce, alter, combine, transfer, assign, or cease any job, department, operation, or service; to control and regulate the use of machinery, facilities, equipment, and other property of the Company; to introduce new or improved research, production, service, distribution, and maintenance methods, materials, machinery, and equipment; to determine the number, location and operation of departments, divisions, and all other units of the Company; to issue, amend and revise policies, rules, regulations, and practices; and to take whatever action is either necessary or advisable to determine, manage and fulfill the mission of the Company and to direct the Company's employees.

SECTION VI

PROBATIONARY PERIOD

6.1 An employee who has never accrued seniority under this Agreement or predecessor Agreements between the Company and the Union, or an employee rehired after termination of seniority shall be in "probationary" status until completion of 75 workdays. The employee may be dismissed by the Company at any time during such probationary period without the necessity of assigning any cause therefore.

6.2 Employees will not be eligible for Company benefits until the expiration of their probationary period.

SECTION VII

SENIORITY

7.1 Definitions

a. Seniority

Seniority shall mean an employee's length of continuous service with the Company, following completion of the probationary period, within the bargaining unit, measured in calendar days from the first day the employee actually worked for the Company on or after the employee's most recent date of hire. If application of the preceding sentence results in two (2) or more employees having the same seniority, the employee assigned the lower clock number shall be deemed more senior. Seniority shall not accrue to a probationary employee until completion of the probationary period set forth in Section VI of this Agreement, at which time the employee shall possess seniority as defined in this 6

section. Seniority shall be applicable only as expressly provided in this Agreement.

b. Department Pool

A group of employees composed of one or more pay classifications, organized by functional tasks and/or shift within a department.

7.2 Termination of Seniority

An employee's seniority shall be terminated and his rights under this Agreement forfeited for any one of the following reasons:

a. Discharge, quit, retirement, or resignation.

b. Failure to give notice of intent to return to work after recall within the time period specified in Section 8.4(b) of this Agreement, or failure to return to work on the date specified for recall, as set forth in the written notice of recall.

c. Unless prohibited by law, time lapse of twelve (12) months, or for a period equal to the employee's seniority (whichever is less), since the last day of actual work for the Company, regardless of reason, except layoff.

d. Failure to return to work upon expiration of a leave of absence or its extension.

e. Unless prohibited by law, layoff for a period of twelve (12) months or for a period equal to the employee's seniority, whichever is less.

f. If the employee is absent for two (2) working days without properly notifying the Company, unless a reason satisfactory to the Company is provided.

g. If the employee has failed to provide the Company with the employee's current telephone number and address, hindering the Company's ability to contact the employee.

7.3 Seniority List

The Company shall provide the Union with a current seniority list every

February 15th. In addition, on this same date, in each department, the Company will post a departmental roster of employees, in plant seniority order.

7.4 Employees Hired for Crush at Livingston or Fresno

Any Livingston or Fresno employee, hired for crush, who completed his probationary period but had less than twelve months of continuous service with the Company when laid off and his seniority was terminated pursuant 7

to 7.2(c) or (e) above, if rehired within one year of the layoff, such an employee will have service time he obtained prior to the layoff credited to his continuous service.

7.5 Transfer Within Plant

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 Company.

7.6 Departmental Seniority for Maintenance Departments

For the Maintenance Departments only, the date that a Maintenance employee entered the department shall be used for the purpose of vacation scheduling, overtime, and shift preference application.

 

SECTION VIII

LAYOFF/REDUCTION IN FORCE

8.1 Determination of Layoffs

The Company will determine the timing of layoffs, the number of employees to be laid off, and in which department pool(s) layoffs will be effected.

8.2 Layoffs

In the event of a layoff in a department pool, where employees’ skills and ability are equal, seniority will be the determining factor.

8.3 Bumping Only During Layoffs

An employee laid off pursuant to Section 8.2 of this Agreement may bump the employee with the least seniority in a department pool in the same level or in a lower paid level provided that: (1) the bumping employee has more seniority than the employee he will bump, (2) at some point in the past, he successfully completed the training period for the job classification in that department pool, and (3) he can perform the functions of an employee in such department pool with a brief refresher training period provided that, if the employee is eligible to bump into more than one (1) department pool, the Company shall determine the department pool into which the employee will be permitted to bump, so long as the straight-time rate of pay for such department pool is not less than the straight-time rate of pay for another department pool into which the employee is eligible to bump.

If the bumping employee cannot perform the function within a department pool at the standard described above, the employee will be eligible to bump 8

into the next highest department pool for which the employee has the requisite skills and performance.

If the application of this section for a layoff, which is expected to be for a long period of time, results in an employee working a lower-paying position than the one he was laid off from, such employee will receive the straight-time, classified hourly rate of the position he left for a period of four (4) calendar weeks.

8.4 Recall

a. Order of Recall

If the Company determines to fill a vacancy in a department pool from which employees are laid off, such employees shall be recalled in the reverse order of layoff.

b. Notice of Recall

The Company will forward notice of recall by certified mail to the last known address of the employee reflected on Company records. The employee must, within two (2) calendar days from the date of delivery or the last attempted date of delivery of the notice, whichever is earlier, notify the Company of his intent to return to work on the date specified for recall and thereafter, return to work on such date.

 

SECTION IX

JOB POSTING/BIDDING

9.1 Posting and Bidding

With the exception of seasonal jobs, temporary jobs, Level 1 jobs, and Level 5 and above jobs at the Modesto facilities, and Level 1, Level 2, and Level 5 and above jobs at the Fresno and Livingston facilities (all of which the Company may fill in accordance with its judgment), if the Company determines to fill a job vacancy within the bargaining unit, the Company will post a notice of the vacancy or job opening on employee bulletin boards for three (3) workdays. Such a notice of the vacancy will be posted plantwide. Subject to the provisions of Section 9.3, any qualified employee may submit a bid for the job, in writing, during the posting period. The Company shall not be required to post a notice of vacancy or job opening for a particular job more than once every ninety (90) calendar days. Any bid submitted within a posting period shall remain valid for ninety (90) calendar days.

9.2 Selection

For the purpose of awarding posted jobs, where employees’ skills and ability are equal, seniority will be the determining factor. As judged by the Company, if no employees qualified for the posted job submit bids for the 9

job, the Company may fill the job from any source. It is understood that the determination of who is awarded Level 5, and above jobs is not subject to the grievance and arbitration procedure.

9.3 Restrictions on Bidding

a. An employee who is awarded a job for which he bid must accept it. If immediately prior to being awarded a posted job, the employee's designated job classification was in a lower paid Level than the posted job, the employee may not bid for another job for a period of twelve (12) months after being awarded the job. If immediately prior to being awarded a posted job, the employee's designated job classification was in the same Level (i.e., a lateral bid) or a higher paid Level than the posted job (i.e., a downward bid), the employee may not bid for another job for a period of twelve (12) months after being awarded the job. Employees will be allowed to bid for a lateral or a downward position once, every five (5) years, during their employment with the Company.

9.31 After an employee has successfully completed the training period and qualified for a Level 2 bid, he may step-down a total of one (1) time from that position to a Level 1 position, contingent on the following conditions:

a. There must be a Level 1 position available.

b. The employee has been qualified in the position for a period of twelve (12) months.

c. The Employee must remain in the position until his replacement has completed training and become qualified.

d. The employee is not eligible to sign for any other bid for a period of no less than twelve (12) months.

e. This will qualify as one of the employee’s downward or lateral job bids.

9.4 Disqualification of Bidder.

a. An employee may not bid for a vacant position if the employee has received a written reprimand within six (6) months of the date the bid is posted or if the employee received a disciplinary suspension within twelve (12) months of the date the bid is posted.

b. An employee who is unable to perform the job to which he bid within the training period shall be returned to the job classification that the employee held at the time of submitting the bid.

c. If during the training period an employee steps down from a position awarded to the employee by bid or the Company disqualifies the employee, the employee may not bid again for this particular job for 24 months from the date of the step-down or disqualification.

d. After an employee has stepped down a total of two (2) times, that employee will not be eligible to bid on any job for a period of three (3) years from the date of the last step-down.

 

SECTION X

SHIFT PREFERENCE

10.1 Except for employees who hold Level 5 jobs at G-3 Enterprises, Closure Division and Levels 8 and 9 at any facility, the Company agrees to give employees within a department pool their preference on shifts when vacancies on preferred shifts occur. Shift preference applications shall be filed in writing on forms provided by the Company. The shift preference application will remain active until changed by the employee. Qualified employees with active shift preference applications will be transferred in order of seniority to fill vacancies on shifts of their choice within their department pool subject to the following conditions:

a. The Company agrees that seniority shall prevail in the assignment of employees to shifts. However, it is recognized that it is impossible to properly operate with all of the senior employees on one shift. The parties agree, therefore, that seniority alone cannot be the sole determining factor in the assignment of employees to shifts. In such a case, the Company will determine whether to act upon the shift preference.

b. No employee may have a shift preference application acted upon more than once each six (6) months unless the employee within that period is displaced from the employee's preferred shift through a layoff. In such an event, the six (6) month requirement shall be waived and the employee may submit a new shift preference application.

c. On occasion it may be necessary for the Company to assign newly hired or transferred employees to preferred shifts for orientation and familiarization purposes when such requirements exist. In such instances, the Company retains the right to determine the time required (not to exceed 45 workdays unless extended by mutual agreement) to retain the employee. Permanent shift assignments may be made after the newly hired or transferred employee's probationary or training period is complete.

d. After entering a department pool as a result of a job bid, an employee must wait for a period of twelve (12) months after date of qualifying in the new position to have a new shift preference acted upon.

e. After being awarded a job bid within the same department pool, an employee must wait for a period of six (6) months after date of qualifying in the new position to have a new shift preference acted 11

upon.

f. Employees exercising shift preferences will not be permitted to change shifts during the workweek for the purpose of obtaining overtime.

SECTION XI

HOURS OF WORK

11.1 The regular workweek shall consist of forty (40) hours of work within the workweek and shall consist of five (5) consecutive days beginning on Monday (on Tuesday for Sanitation).

11.2 Except as already provided for in this section, no change in the regular workweek shall take place without consultation and bargaining with the Union. Implementation of other workweeks are subject to the ―Letter of Agreement about When a Workweek, Other than the Normal, 5-Day, Monday through Friday Workweek Can Be Implemented,‖ In any event, such a change will comply with applicable California law.

11.3 For purposes of determining an employee’s pay, the workweek shall consist of seven (7) days beginning at a certain time on the first day of the workweek, and ending 168 continuous hours after that start time. A workday is a consecutive twenty-four (24) hour period beginning at the same time each calendar day. A workday can begin at any time of the day.

11.4 Any time worked in excess of forty (40) straight-time hours in any employee’s regular workweek is defined as overtime.

11.5 Nothing in this section shall be construed as a guarantee of hours of work per day or per week or for any other period of time.

11.6 Eight (8) hours shall constitute a regular workday in any twenty-four (24) hour period, except for meal periods. Different groups of employees may have different schedules from the regular workweek or regular workday (e.g., Special Services department pool).

11.7 There shall be one thirty (30) minute unpaid meal period or one twenty (20) minute paid meal period, as determined by the Company, and two (2) fifteen (15) minute rest periods during the course of a workday. After ten (10) hours of work in a workday, additional unpaid meal periods and rest periods will be in accordance with applicable law.

11.71 United Food and Commercial Workers International Union, CLC, Local Unions 8 and 186D, on behalf of its members at E. & J. Gallo Winery, Modesto, Livingston, and Fresno Facilities agrees to waive the second thirty minute unpaid lunch period for members who work more than ten 12

(10) hours in a workday. If any member wishes to revoke this agreement and take their second lunch, they have the right to give notice of their desire to their Team Leader.

11.8 The parties agree that the ―equivalent‖ rule set forth in the California Labor Code shall not apply to the Livingston and Fresno facilities referred to in Section I of this Agreement and employees who work at those sites 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.

11. 9 All work on the second shift (Swing) by an employee assigned to that shift shall be paid at the rate of thirty cents (30¢) per hour above the rate of the job performed, and all work performed on the third shift (Graveyard) by an employee assigned to that shift, shall be paid for at the rate of forty cents (40¢) per hour above the rate of the job performed. The term second shift (Swing) shall mean any shift terminating between the hours of 6:01 p.m. and 3:01 a.m. The term third shift (Graveyard) shall mean any shift terminating between 3:01 a.m. and 12:01 p.m.

 

SECTION XII

MAINTENANCE TRAINEE PROGRAM

12.1 It is agreed that a maintenance trainee program may be established at each plant with the understanding that as to those Employers that do not have either the need for such a program or qualified applicants, said Employer shall have the option of hiring skilled mechanics from outside sources.

 

SECTION XIII

ATTENDANCE

13.1 Employees are expected to regularly report for work and report for work on time each scheduled workday. In situations where an employee is absent from work or late to work, the disciplinary procedure will be followed.

13.2 Attendance Guidelines

The Company and the Union encourage employees to report for work on time each day scheduled. In situations where an employee is absent from work procedures shall be used to educate and encourage the employee to maintain an acceptable attendance record. If necessary, documented counseling's and corrective actions shall be used.

13.3 An incident of absenteeism includes but is not limited to any non-protected absence of one scheduled work day, one (1) tardy greater than or equal to

13

31 minutes of any shift, two (2) tardies less than or equal to 30 minutes of any shift, two (2) incidents of leaving after completing two (2) hours of work due to non-industrial illness or injury when an employee determines that the he must go home. In the event a Company representative unilaterally makes a determination to send the employee home due to non-industrial illness or injury, such an occurrence will not be considered an incident of absenteeism.

In every instance of an employee’s failure to work as scheduled, whether protected or not, he must provide a truthful reason for such failure.

13.4 For any employee who has accrued seniority as of January 1 of any year, his first nine (9) incidents of absenteeism of that calendar year, excluding any non-reported absences, will not be counted against him for the purpose of receiving any step of discipline as described in paragraph 13.5 below.

For an employee who has not accrued seniority on January 1 of that year; but, who later in the year accrues seniority, the number of incidents of absenteeism that will not count against an employee, excluding any non-reported absences, is obtained by, rounding up to the nearest whole number, the following calculation: [9 × ((the number of full, calendar months that remain in the year immediately following the date he accrues seniority) ÷ 12)]. For example, an employee is hired on April 3. Assume he accrues seniority on July 24. Five full months remain in the year. 9 × (5÷12) = 3.75, which rounds to 4.

13.5 Corrective Steps:

 Documented Employee Counseling– One (1) incident of absenteeism after the use of the nine (9) incidents of absenteeism not counted against an employee.

 First Written Reprimand –One (1) additional incident of absenteeism within one year from the issuance of the documented employee counseling or the first non-reported absence.

 Second Written Reprimand – One (1) additional incident of absenteeism or a non-reported absence within one year from the issuance of the first written reprimand.

 Discharge – Two (2) additional incidents of absenteeism or a non-reported absence within one year from the issuance of the second written reprimand.

 The number of incidents of absenteeism, including tardies, for each level of discipline are not absolute. Consideration shall also be given to length of time between absences; absences that repeatedly occur the day prior to or following a weekend, or vacation, and the frequency of absences and/or tardies.

14

13.6 The one-year period specified in Corrective Steps in Paragraph 13.5 above shall be extended by the like number of days of medical leaves totaling more than thirty (30) calendar days, commencing from the date of the most recent corrective step.

SECTION XIV

REPORT-IN AND CALL-BACK PAY

14.1 An employee who reports for work at the time scheduled by the Company shall be entitled to a minimum of four (4) hours of work or equivalent pay unless the Company is unable to provide work for reasons beyond its control, such as operations not being able to commence due to threats to employees, or property, public utilities failure or some other act of God. If the Company has three or more hours notice of the event beyond the Company’s control, the Company will use reasonable means to notify employees that work will not commence. If the Company has three or more hours notice of an event beyond its control and fails to try to provide reasonable notice to an employee, the report-in pay provision will apply. In the event the Company has less than three hours notice of the event beyond its control, an employee who reports to work will not receive report-in pay.

14.2 An employee who, while at a location other than the Company's premises or other work location designated by the Company, is notified by the Company to report for work at a time other than the employee's regularly scheduled starting time, shall be entitled to a minimum of one-half of the scheduled hours of work or equivalent pay and shall perform such duties as the Company may assign.

14.3 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 one-half of the hours of his regular shift 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 one-half of the regular shift.

SECTION XV

SUBCONTRACTING

15.1 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 sub-contract 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.

SECTION XVI

JOB ABOLISHMENT/SEVERANCE PAY

16.1 In the event of the permanent termination of an employee due to job abolishment, department shutdown, installation of new machinery, etc., (events that are not work performance, conduct, or loss-of-seniority related) or in the event an employee is offered a position in accordance with Section VIII, Layoff, as a consequence of a situation described above and such employee does not accept the position, such employee may select severance in lieu of the offered position.

Severance pay shall be paid to each such permanently terminated employee in accordance with the following:

a) Where an employee has completed three service years, a service year shall be a year in which an employee shall have worked 1,500 or more straight-time hours, the employee shall receive twenty-four (24) hours of pay, at his straight-time, classified hourly rate, on the date of termination.

b) Where an employee has completed four service years, a service year shall be a year in which an employee shall have worked 1,500 or more straight-time hours, the employee shall receive forty-eight (48) hours of pay, at his straight-time, classified hourly rate, on the date of termination.

c) For each additional service year as defined, the terminated employee shall receive an additional twenty-four (24) hours of pay, at his straight-time, classified hourly rate, on the date of termination to a maximum of four hundred thirty-two (432) hours of pay, at his straight-time, classified hourly rate, for those being terminated with twenty (20) or more service years, as defined, to their credit.

d) The receipt of severance by an employee under this section is conditioned upon: (1) no grievance being filed about the event giving rise to the option to offer severance, (2) no grievance being filed about the employee being terminated, and (3) the employee affected signing a general release.

 

SECTION XVII

HOLIDAYS

17.1 The following days shall be observed as holidays:

New Year's Day Thanksgiving Day

President’s Day Friday after Thanksgiving

Good Friday Last Business Day Before Christmas

Memorial Day Christmas Day

Independence Day New Year's Eve Day

Labor Day

17.2 For an employee whose regular work schedule is Monday through Friday, Sunday holidays shall be observed on the Monday following and Saturday holidays shall be observed on the preceding Friday.

17.3 For an employee whose regular work schedule is Tuesday through Saturday, any holiday observed on a Monday shall be observed on Tuesday and any holiday that originally occurs on Saturday will be observed on that Saturday.

17.4 For an employee whose regular work schedule is Monday through Friday or Tuesday through Saturday, the above holidays will be paid at the employee’s straight-time, classified hourly rate for eight (8) hours, plus shift differential, if any, provided he (a) works, (b) receives Company-paid leave or Union-paid hours, or (c) appears in court (such appearance must be by a subpoena for a case in which the employee is not a party) for his full, regularly scheduled shifts, both preceding and following the holiday. Provided an employee works, but is tardy 30 minutes or less on his regularly scheduled shift(s) that precede or follow the holiday, holiday pay will still be paid.

17.5 For an employee whose regular work schedule is a ten (10) hour shift Monday through Thursday, any holiday falling during the employee’s regular four (4) day work schedule will be paid at his straight-time, classified hourly rate for ten (10) hours, plus shift differential, if any, provided he (a) works, (b) receives Company-paid leave or Union-paid hours, or (c) appears in court (such appearance must be by subpoena for a case in which the employee is not a party) for his full, regularly scheduled shifts, both preceding and following the holiday. Provided an employee works, but is tardy 30 minutes or less on his regularly scheduled shift(s) that precede or follow the holiday, holiday pay will still be paid.

17.6 For an employee whose regular work schedule is a ten (10) hour shift, Monday through Thursday, such employee will receive eight (8) hours at their straight-time, classified hourly rate for any holiday observed on a Friday.

17

17.7 In case of a layoff of an employee with seniority, such an employee must have worked one (1) full, regularly scheduled shift within four (4) work days immediately before the holiday or must have worked one (1) full, regularly scheduled shift within the four (4) workdays immediately following the holiday.

17.8 Any work performed on the above holidays or a substituted day under paragraph 17.2 or 17.3 shall be paid for at the rate of time and one-half (1½) the employee’s applicable rate of pay for the work performed.

SECTION XVIII

VACATIONS

18.1 Vacations are to be taken during the calendar year immediately following the calendar year in which earned. To obtain vacation credit for a month's employment, an employee must have worked not less than one hundred and twenty-five (125) hours within a calendar month. If an employee does not receive vacation credit for any particular month’s employment, as long as the employee accumulates a total of 1500 or more hours worked for the entire period between January 1 and December 31, in the year in which he is earning vacation, such employee will be entitled to the amount of vacation for his years of continuous service in accordance with paragraph 18.2 below.

18.2 The amount of vacation to which an employee shall be entitled during any calendar year shall be determined by the number of years of continuous service completed by the employee as of January 1, in the year in which vacation is to be taken, in accordance with the following:

                        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18.4 Vacations are not cumulative from year-to-year. If due to unforeseen circumstances, there is an unused carryover balance of vacation, the employee will have until March 31 to take such vacation. If the employee does not schedule this vacation, the unused vacation carryover from the previous year will be paid out at the employee’s current, straight-time, classified hourly rate.

18.5 The Company shall retain the final right to approve, deny, schedule and cancel all vacations. Vacations and their duration will be scheduled at the Company's preference and in accordance with plant seniority ratings. It is understood and agreed that the Company may, at its option, suspend operations entirely or partially in any location in lieu of assigning vacation periods to employees. Final decision shall rest with the Employer provided employees are given thirty (30) days advance notice of vacation commencement dates.

During the period December 1, through January 31, of each calendar year, an employee may submit to his Team Leader, in writing on a form to be provided by the Company, the vacation dates the employee desires to schedule for that calendar year. The Team Leader will approve or deny such requests in writing no later than March 1, of that calendar year. 19

If during the period December 1, through January 31, two (2) or more employees request the same vacation date(s) and the Company determines to approve some but not all such vacation requests for such dates, the request of the senior employee(s) shall be honored. Vacation scheduling requests received after January 31, shall be approved or denied in the order in which they are received by the Team Leader.

18.6 Employees shall be compensated for vacation at their straight-time, classified hourly rate at the time vacation is taken. Employees regularly scheduled for shift work will receive shift differential in calculating vacation pay. In the event employees are on vacation on the anniversary date of the Agreement and wage increases are obtained, these employees shall receive the increases for the period of their vacation on or after the effective date of the increases.

18.7 When a paid holiday under the terms of this Agreement occurs during an employee's vacation, the employee shall receive an extra day of vacation or pay-in-lieu thereof, at the option of the Company.

18.8 All eligible employees may request ten (10) days of said vacation be split under the following conditions [twelve (12) days for employees with greater than 25 years of service]:

a) Approval must be obtained from the shift or area Team Leader, and may only be granted at the sole discretion of the Team Leader if production and/or maintenance requirements allow.

b) Payment will be included on the employee’s next regular paycheck.

18.9 Employees who earn 80 or more hours of vacation per calendar year may elect pay-in-lieu of vacation for exact 40-hour increments per calendar year according to the chart below. This request must be made in writing by the employee and submitted to his department at least two weeks prior to payment. Employees shall be compensated for this vacation at their straight-time, classified hourly rate.

 

 SECTION XIX

JURY DUTY

19.1 An employee required to serve on a jury and who misses work shall be paid the difference between the employee’s straight-time, classified hourly earnings and the amount paid the employee for jury duty, provided:

(a) the employee gives the Employer five (5) working days notice that he must report for jury duty or such notice as the employee has if the court gives the employee shorter notice, and

(b) the employee furnishes proof of such jury duty, and

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

19.2 Applies to day (first) shift employees, except Special Services.

If an employee is released by the court before the half way point of his normal shift, or by 12:00 noon, whichever is earlier, the following applies:

the employee shall be required to report for work within one (1) hour after his release from jury duty, unless the employee received prior approval from his Team Leader for a longer period of time in which to report.

If an employee is released by the court at 12:01 p.m., or more than four (4) hours after the starting time of his shift, the following applies:

the employee shall not be required to work his scheduled shift that day.

19.21 Applies to day (first) shift Special Services employees

If an employee is released by the court at or before 10:30 a.m., the following applies:

 the employee shall be required to work within one (1) hour after his release from jury duty, unless the employee received prior approval from his Team Leader for a longer period of time in which to report.

If an employee is released by the court after 10:30 a.m., the following applies:

 the employee shall not be required to work his scheduled shift that day.

19.3 Applies to swing (second) shift employees.

21

If an employee is released by the court at or before 12:00 noon, the following applies:

the employee shall be required to work his scheduled shift.

the employee must as soon as possible notify the Employer by telephone that he has been released and will be reporting for work that day.

If an employee is released by the court at 12:01 p.m. or later, the following applies:

the employee shall not be required to work the employee’s scheduled shift for that day.

19.4 Applies to graveyard (third) shift employees.

An employee shall not be required to work his scheduled graveyard shift on the day of the first morning of jury duty.

If an employee is released by the court seven (7) hours or more prior to the start of his scheduled shift, the following applies:

the employee shall be required to work his scheduled shift that night.

If an employee is released by the court less than seven (7) hours prior to the start of his scheduled shift, the following applies:

the employee shall not be required to work his scheduled shift that night.

If an employee works his full shift and on the same day is required to serve on jury duty for four (4) hours or more, the employee, if scheduled, shall be excused from work and paid his straight-time, classified hourly rate of pay for the graveyard shift of the following day.

SECTION XX

BEREAVEMENT LEAVE

20.1 An employee who has completed his probationary period is eligible for paid bereavement leave as follows:

a. 5 Days [maximum of forty (40) hours]: Spouse, son, daughter, step-child, legally adopted child, or primary biological or step-parent. Five days bereavement leave is allowed for one biological or step-parent of each gender. 22

b. 3 Days: Mother-in-law, father-in-law, brother, sister, half-brother, half-sister, legal guardian, grandchild, or grandparent of the employee.

c. 1 Day: The day of the funeral; son-in-law, daughter-in-law, brother-in-law, sister-in-law, or secondary biological or step parent of the same gender.

20.2 The following conditions apply:

a. One of the days off must be the day of the funeral.

b. The employee would have been scheduled to work during the period of bereavement leave.

c. Bereavement leave pay will be at the employee's straight-time, classified hourly rate.

d. Days off must be consecutive.

e. Saturdays and Sundays and holidays are not counted as days off, unless the employee was scheduled to work and took the time off as bereavement leave.

f. Bereavement leave taken on Saturdays, Sundays or holidays will be paid at straight-time.

g. Bereavement leave will not be counted against vacation entitlement.

h. An employee who is on an approved leave of absence for care of a member of his family shall receive bereavement leave pay if that family member dies, provided the employee returns to work and would have been scheduled for work during the bereavement leave.

i. Proof of death and relationship is required.

j. All documentation and a ―Bereavement Leave Request‖ form must be presented to Human Resources prior to payment.

k. Items a. and d. above will not be required if the employee saves one or more of his bereavement days for the family member that died in order to attend a future memorial or cremation service.

l. If an employee’s paid vacation is interrupted by bereavement leave and the Employer is notified promptly, the number of bereavement leave days he would have used if working, shall be added to his vacation with pay. 23

20.3 If bereavement leave is obtained by misrepresentation, the employee shall be subject to discharge.

SECTION XXI

LEAVES OF ABSENCE

21.1 At its discretion, the Company may grant a personal leave of absence to an employee for a period of up to thirty (30) calendar days.

21.2 An employee may request an extension to his approved leave, provided that such request is made at least five (5) working days in advance of the ending date of the initial leave. The Company, at its discretion, may grant an extension and such extension shall not exceed thirty (30) calendar days.

21.3 Upon return from any personal leave of absence, the employee may be assigned to the position that he should have, according to his seniority, if such position is available.

21.4 If any leave or leave extension is found to have been obtained by misrepresentation, the employee shall be subject to discharge. The acceptance of other employment during any leave or extension is also grounds for discharge.

21.5 After absence from work, for any reason, for sixty (60) or more calendar days, the Company will require the returning employee to submit to a physical examination and/or a drug/alcohol test.

21.6 The Company will continue medical and dental coverage for an employee who is on an approved personal leave or extension, provided that the employee submits his monthly premium payment for such benefits to the Company.

21.7 For Family Medical Leave Act or California Family Rights Leave Act leaves, the Company will continue medical and dental coverage for a period of up to six (6) months from an employee’s last day worked provided that (1) the employee has been employed for at least one year, (2) the employee worked a total of 1250 or more hours in the twelve (12) month period immediately preceding the start of the leave, and (3) he submits his share of the monthly premium payment for such benefits to the Company.

SECTION XXII

UNION SHOP STEWARDS

22.1 The Employer agrees to allow one (1) hour per week with pay to authorized shop stewards to conduct Union business. The parties understand and agree that in order for shop stewards to conduct Union business on work time, the

 

SECTION XXV

GRIEVANCE PROCEDURE

25.1 A grievance is a dispute about the interpretation or application of this Agreement or an alleged violation of a provision of this Agreement.

25.2 Procedural Steps.

a. Step 1 An employee or the Union, no later than five (5) workdays from the date of an event giving rise to the grievance or five (5) workdays from the date the grievant should have reasonably learned of the event giving rise to the grievance, whichever is later, must discuss the grievance with the immediate Team Leader. The immediate Team Leader shall orally respond to the employee no later than two (2) workdays thereafter.

At the request of the employee, a Union Steward may be present during the Step 1 discussion. Grievances settled at Step 1 shall not establish precedent.

b. Step 2 If the grievance is not settled at Step 1, the Steward or Business Representative, no later than five (5) workdays after completion of Step 1, or no later than seven (7) workdays after the grievant should reasonably have learned of the event giving rise to the grievance, whichever is later, must submit a written grievance to the immediate Team Leader or Human Resources Representative on a grievance form. All grievances presented at Step 2 of the procedure shall set forth the facts giving rise to the grievance, the specific provision(s) of the Agreement, if any, alleged to have been violated, the names of the aggrieved employee(s), or class of employees and the remedy sought. The immediate Team Leader or Human Resources Representative shall give his written answer to the grievance within five (5) workdays after receipt of the grievance.

A Union Steward and/or Business Representative will be present during a Step 2 discussion, if such a meeting is held.

c. Step 3 If the grievance is not settled at Step 2, the Union Steward and/or Business Representative, no later than five (5) workdays after receipt of the Team Leader’s written answer at Step 2, may file a written response to that answer to the Department/Plant manager. All responses at Step 3 of the procedure must be signed by the Union Steward and/or the Business Representative.

Not later than five (5) workdays after receipt of the written response, the Department/Plant manager, or his designee, shall meet with the employee and the Steward and/or Business representative. The Department/Plant manager, or his designee, shall give his written 26

answer to the grievance within five (5) workdays after such meeting. A written answer submitted by the Company shall be signed and dated by the Department/Plant manager or his designee, and such answer shall be final and binding on the employee, Union and the Company, unless it is timely appealed to arbitration by the Union in accordance with the procedures set forth in Section XXVI of this Agreement.

d. For grievances alleging that a discharge occurred in violation of this Agreement, the parties agree that such a grievance shall be submitted directly at Step 3 of the procedure. Such a grievance must be presented on the grievance form and shall set forth the specific provision(s) of the Agreement, if any, alleged to have been violated, the name of the aggrieved employee, and the remedy sought. Such a grievance must be presented no later than seven (7) calendar days after the employee learned of his discharge or twelve (12) calendar days from the date of his certified discharge letter, whichever is earlier.

Not later than five (5) workdays after receipt of this written grievance, the Department/Plant manager, or his designee, shall meet with the employee and the Steward and/or Business Representative. The Department/Plant manager, or his designee, shall give his written answer to the grievance within five (5) workdays after such meeting. A written answer submitted by the Company shall be signed and dated by the Department/Plant manager or his designee, and such answer shall be final and binding on the employee, Union and the Company, unless it is timely appealed to arbitration by the Union in accordance with the procedures set forth in Section XXVI of this Agreement.

25.3 Time Limitations

It is the intention of both parties to meet the time limitations set forth in this Section. Any request to extend a timeline prior to the deadline will not unreasonably be withheld. No grievance shall be accepted by the Company unless it is submitted or responded to within the time limits set forth in this Section of the Agreement. If the grievance is not timely submitted at Step 1 or Step 2, it shall be deemed waived. If the grievance is not timely appealed to Step 3, it shall be deemed to have been settled in accordance with the Company’s Step 2 answer.

For a grievance contesting a discharge: if such grievance is not timely submitted in accordance with Paragraph 25.2 d. above, it shall be deemed waived.

25.4 If the Company fails to answer within the time limits set forth in this Section of the Agreement, the grievance shall automatically proceed to the next step of the grievance procedure. 27

SECTION XXVI

ARBITRATION

26.1 Any grievance, as defined in Section XXV of this Agreement, that has been properly and timely processed through the grievance procedure set forth in this Agreement and that has not been settled at the conclusion thereof, may be appealed to arbitration by the Union serving the Company with written notice of its intent to appeal. The failure to appeal a grievance to arbitration in accordance with this Section within twenty (20) calendar days after receipt of the written answer of the Company at Step 3 of the grievance procedure set forth in Section XXV of this Agreement shall constitute a waiver of the Union's right to appeal to arbitration, and the written answer of the Company at Step 3 of the grievance procedure shall be final and binding on the aggrieved employee(s), the Company, and the Union.

26.2 Not later than thirty (30) calendar days from the ratification date of this CBA, the Company and the Union shall meet to establish a mutually-agreed-to panel of five (5) arbitrators from either the American Arbitration Association (AAA) or the Federal Mediation and Conciliation Service (FMCS). Once that panel is created, during the term of this Agreement, each of the listed arbitrators is empowered to preside over any case, properly brought before him, pursuant to this Section XXVI. Jointly, the Company and the Union will label the arbitrators on the panel, A through E. The arbitrator labeled ―A‖ will be contacted to preside over the first case properly appealed to arbitration during the term of this Agreement. If either the Company or the Union feels that said arbitrator cannot hear the case in a timely manner, arbitrator ―B‖ will be contacted to hear the case. If either the Company or the Union feels that arbitrator ―B‖ cannot hear the case in a timely manner, arbitrator ―C‖ will be contacted. This procedure will be followed until the case is actually docketed with an arbitrator on the list. For the next arbitration case that arises, the parties will contact the arbitrator whose letter immediately follows the letter of the arbitrator assigned to the first case; for the third arbitration, the parties will contact the arbitrator whose letter immediately follows the arbitrator assigned to the second case, and so forth and so on. However, in no event will any arbitrator hear two (2) cases in a row. If circumstances call for such a happening, the parties will have to agree on the availability of one of the earlier-contacted arbitrators as being timely and assign the case to that arbitrator.

26.3 Not later than twenty (20) calendar days after the Union serves the Company with written notice of intent to appeal a grievance to arbitration, the Company and the Union shall confer and agree on the appropriate arbitrator to be contacted in accordance with paragraph 26.2 above. Said arbitrator will be contacted and the procedure described in 26.2 will be followed until the case is assigned.

26.4 The jurisdiction and authority of the arbitrator and his opinion and award shall be confined exclusively to the interpretation and/or application of the express provision(s) of this Agreement at issue between the Union and the 28

Company. He shall have no authority to add to, detract from, alter, amend, or modify any provision of this Agreement; to impose on either party a limitation or obligation not explicitly provided for in this Agreement; or to establish or alter any wage rate or wage structure. The written award of the arbitrator on the merits of any grievance adjudicated within his jurisdiction and authority shall be final and binding on the aggrieved employee(s), the Union and the Company.

26.5 The fee of the arbitration association service and the fees and expenses of

the arbitrator, the hearing room and court reporter (if applicable) shall be split equally by the parties. For all other matters related to the arbitration, each party shall bear its own arbitration expense.

SECTION XXVII

DISCIPLINE

27.1 Purpose and Application

Management has the right to reprimand, suspend, discharge, or otherwise discipline employees for just cause. When an employee's performance is unsatisfactory, when an employee's attendance is unsatisfactory, or when an employee violates the rules and regulations of the Company, appropriate disciplinary action may be taken, up to and including termination of employment.

27.2 Classification of Progressive Disciplinary Action

Whenever an employee commits an offense warranting disciplinary action, his or her Team Leader or Manager may begin disciplinary action at any of the stages listed below, depending upon the seriousness of the offense committed. Thus, the implementation of this section should not be construed as preventing, limiting, or delaying the Company from taking appropriate disciplinary action against any employee at any level, including termination without prior warning, where the Company deems such action appropriate. The progressive disciplinary process will cover all performance and work rule issues with the exception of attendance related issues, which will have a separate disciplinary process.

a. Documented Employee Counseling

Employee is counseled by the Team Leader or Manager regarding his or her performance or conduct following an offense in an effort to eliminate possible misunderstandings, improve job performance, or to explain what constitutes proper conduct. This counseling is documented in writing. Any employee counseling that is not entitled ―documented employee counseling‖ is not subject to the grievance and arbitration procedure.

b. Written Reprimand

Employee receives written notice of discipline after continued poor job performance or repeated offenses or where the Team Leader or Manager believes that an offense in the first instance is serious enough to warrant dispensing with a documented employee counseling and issues a formal written notice. The purpose of a written reprimand is to make certain that the employee is aware of the level of the misconduct he/she has committed or is aware of those areas of performance that must be improved.

c. Final Written Reprimand

Employee receives final written notice if sufficient progress in the area of job performance has not occurred after prior documented employee counseling or written reprimand, there have been repeated offenses, or serious misconduct.

d. Disciplinary Suspension

Disciplinary suspension without pay occurs when an employee fails to correct his or her performance after repeated warnings prompted by the accumulation of offenses or by a serious offense or incident of misconduct.

e. Termination

Termination may take place when the Company has tried to have an employee correct his or her performance or conduct, and the employee has not responded, or when the employee's misconduct is of such a serious consequence that the Company determines that discharge is warranted.

Where an offense is possibly so serious in nature that Management believes a discharge is warranted, the Team Leader will immediately suspend the employee with pay pending further investigation and review of the incident. Notification of such a suspension will be furnished to the local Union.

In the event a 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 Company'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.

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 XVIII, less any monies due the Union on check-off. 30

SECTION XXVIII

OVERTIME

28.1 For all hours actually worked in excess of forty (40) hours in a regular workweek, an employee shall be paid one and one-half (1½) times the employee's straight-time rate of pay, provided the employee has worked or has been paid for forty (40) straight-time hours in the current workweek including hours paid by the Union while conducting Union business.

28.2 There shall be no duplication or pyramiding of overtime and other premium pay, with one exception—hours worked on a holiday will not be subtracted from an employee’s total hours worked in a workweek for overtime purposes.

28.3 The following applies to employees whose regular schedule is comprised of five (5), eight-hour days:

All work in excess of eight (8) hours in a workday up to and including the twelfth hour shall be paid at one and one-half (1½) times the rate of the job being performed.

Double the rate for the job being performed shall be paid for all work in excess of twelve (12) hours in a workday or for any work in excess of eight (8) hours on the seventh consecutive day of work in the workweek.

28.4 The following applies to employees whose regular schedule is comprised of four (4), ten-hour days:

All work in excess of ten (10) hours in a workday up to and including the twelfth hour shall be paid at one and one-half (1½) times the rate of the job being performed.

Double the rate for the job being performed shall be paid for all work in excess of twelve (12) hours in a workday.

SECTION XXIX

OVERTIME PROCEDURE

29.1 Preference to overtime work following a 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 pool, then preference shall be given to the employees with the greatest plant seniority within that department pool on that shift provided they have the skills and ability to perform such work. Scheduled shift

31

overtime in a department pool shall be assigned to qualified employees in the department pool on the shift in which the overtime commences.

29.2 Preference for overtime work on a Saturday, Sunday, (Sunday, Monday for employees who are working a Tuesday through Saturday workweek, e.g., Sanitation) or holiday shall first be given to employees working on that shift in the department pool scheduling overtime in accordance with the employees’ plant seniority provided they have the skills and ability to perform such work.

29.3 Preference for Saturday, Sunday, or holiday overtime work in the Bottling receiving or Shipping department pools of the Warehouse shall first be given to employees working on that shift in either pool, in accordance with the employees’ plant seniority provided they have the skills and ability to perform such work.

29.4 Overtime work for all employees shall be on a voluntary basis, from the department pool first, then the department as a whole, for those employees who have the skills and ability, with right of refusal by seniority subject to the provisions of the Shift Preference Section herein, Section 10, provided, that where an insufficient number volunteer, junior seniority employees from the department pool first, then the department as a whole, who have the skills and ability may be assigned to said work and shall work overtime so assigned.

29.5 In the event that, pursuant to 29.4 above, a junior seniority employee is forced to work overtime for which there was insufficient volunteers on four or more days in a row, the Company may bypass that particular employee on the next consecutive day and assign the next most junior seniority employee who has the skills and ability to perform such overtime.

29.6 An overtime sign-up and check-in procedure will be developed to minimize errors in assignment of overtime. Errors made in the administration and assignment of overtime will be remedied through future overtime opportunities in the subsequent 4-week period as decided by the Company.

29.7 An employee who is not excused by the Company from performing assigned overtime, no matter whether the overtime to be worked is voluntary or occurs pursuant to 29.4 or 29.5 above, and who fails to report for overtime, will be subject to discipline.

29.8 Preference for Sunday night start-up work in a department pool, for reporting times of 7:30 p.m., or later, shall first be given to Graveyard employees in that department pool in accordance with the employees’ plant seniority, provided they have the skills and ability to perform such work. 32

SECTION XXX

DRUG AND ALCOHOL TESTING PROGRAM

I. POLICY

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, health, and therefore impairs his/her value as an employee. In addition, it constitutes a potential danger to the welfare of other employees. It 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 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 a potential or actual industrial injury, any employee 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.

II. DEFINITIONS

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

1. On Company property, including parking lots

2. At a job site

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

B. ―rug‖or ―ontrolled 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.).

C. ―lcohol‖- an intoxicant from fermented or distilled liquors.

33

III. PROCEDURE

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 the 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, if possible) to go to an on-site or off-site medical clinic, medical office or dispensary to provide a specimen for drug and alcohol laboratory testing. Probable suspicion means suspicion based on specific personal observations that the Employer representative 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 urine/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 result in discharge.

If the employee consents to testing, he/she shall sign a form of consent authorizing the exhalation of breath, withdrawal of a specimen of urine and/or 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.

In some cases, the employee may be unable to provide an adequate exhalation and/or urine sample. After a reasonable waiting period (not to exceed one hour), the Employer and/or clinic and/or laboratory and/or physician may proceed with drawing and testing a blood sample.

IV. CHAIN OF POSSESSION PROCEDURES

At the time a specimen is collected, the employee shall be given a copy of the specimen collection procedures. Specimens will be tested by the collection site. If the collection site deems a test result negative, no further action regarding that specimen will be taken. If the collection site deems a test result positive (for the breathalyzer, this is a result of greater than or equal to .05 percent), the specimen for the laboratory must be immediately 34

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. Urine specimen shall be collected in a tamper-resistant urine container. Alternatively, the urine specimen may be collected at the employee’s option, in a wide-mouthed clinic specimen container which shall remain in full view of the employee until transferred to, sealed and initialed in a tamper-resistant urine container.

2. Immediately after the urine specimen is collected, the urine 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 sent to the testing laboratory on the earliest business day by the fastest available method. The same procedure shall apply to blood testing.

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 container with properly sealed, labeled and initialed specimens, as certified by that laboratory, the Employer may take disciplinary action based upon properly obtained laboratory results.

V. DISCIPLINARY ACTION

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 test using 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

35

set forth below in Section VI-Laboratory requirements, the employee shall be subject to discharge.

D. If the test results show a concentration in the person’s urine 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.

VI. LABORATORY REQUIREMENTS

A. Urine Testing

The laboratory will be instructed to test each sample using an appropriate initial screening test methodology (e.g. immunoassay). If the initial test is positive, then a confirmatory test using a different methodology (e.g., gas chromatography/mass spectrometry) will be performed on the same sample. The threshold level for cannabinoids in the initial screening test is fifty (50) or more nanograms of cannabinoids and/or total cross reactive cannabinoids per millimeter of urine or the equivalent depending on the methodology of the test and the metabolites.

B. Blood Testing

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 metabolites 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.

VII. CONFIDENTIALITY

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.

Laboratory reports or test results will not appear in an employee 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.

VIII. REHABILITATION

A. An employee found to be under the influence of alcohol at work will be permitted the opportunity to enter a rehabilitation program for treatment of abuse of alcohol.

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 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 to return to work, the employee must complete, to the full satisfaction of the rehabilitation clinic or counselor, the required course

38

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. 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 39

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.

SECTION XXXI

HEALTH AND WELFARE, MAJOR MEDICAL, DENTAL, DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND EMPLOYEE

ASSISTANCE PROGRAM (EAP)

31.1 Effective in April, 2009 (first payable in May, 2009), a premium payment of $653.88 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 UFCW National Health and Welfare Fund. Such payment will not be made on behalf of probationary employees. Pre-existing conditions of employees and their dependents that existed within six (6) months prior to eligibility for health care benefits shall not be covered by the UFCW National Health and Welfare Fund for one (1) year after the employee becomes eligible for health care benefits. That period shall be reduced by the number of days of the employee’s prior creditable health care benefit coverage so long as there has not been a break in coverage of 63 days or more.

Effective for coverage on or after April 1, 2009, employees shall have deducted from their paychecks, as their share of the cost of Gallo 2009 Health and Welfare benefits, a pre-taxed deduction of $218.47 per month for a period of twelve (12) months. Effective for coverage on or after April 1, 2010, the premium will reflect the previous premium plus a 50%/50% share of any increase or decrease, if necessary. The total premium increase for 2010 shall not exceed 10% and the total premium increase for 2011is also targeted to be 10% or less. However, any amount of the 2010 percentage increase that is less than 10% may be added to the 2011 increase, if necessary. For example, if the increase in 2010 is 8%, the maximum allowable increase for 2011 will be 12%.

Should any increases occur, the employee’s adjusted premium payment shall be deducted from the employee’s paycheck and the Employer shall remit the full amount of contribution required by the UFCW National Health and Welfare Fund.

31.2 The UFCW National Health and Welfare Fund shall provide medical coverage (excluding death benefits and accidental death benefits) for retirees who retired at age 60 or thereafter and their spouses as follows:

a) For persons who retired before October 6, 1986, and their spouse at the time of the retirement, their benefits are unchanged. Premium 40

paid by the Employer shall be $676.84 per covered month through March 31, 2010.

b) For persons who retired on or after October 6, 1986 and before June 30, 1995, and their spouse at the time of the retirement, medical coverage, set forth in the plan under which the employee retired will be provided during the term of this Agreement or until the covered person becomes eligible for Medicare or reaches age 67, whichever is earlier.

c) For persons who retire on or after July 1, 1995, and their spouse at the time of the retirement, medical coverage will be the same as active employees and will be provided during the term of this Agreement or until the covered person becomes eligible for Medicare or reaches age 67, whichever is earlier. An employee, who retires on or after September 1, 1995, shall make the same premium co-payment as active employees. Payment shall be made to the Employer. Failure to make the retiree premium co-payment to the Employer by the fifth (5th) working day of the covered month when said premium is due shall result in the medical coverage being terminated.

d) The Employer shall make all reasonable efforts to advise covered persons of premium co-payment changes. The persons covered are responsible for providing address and spousal status changes as needed. Advance payments of up to six (6) months may be made as long as the advance payments do not extend beyond March 31 of each year of this Agreement.

31.3 The premium for the retiree health and welfare plans stated in paragraph 31.2, (b) and (c), shall be $676.84 per month for covered retiree and spouse above the age of 65 and $1,008.55 for covered retiree and spouse below the age of 65 through March 31, 2010. The Health and Welfare Trust Plan shall experience rate the benefit under the plans in paragraph 31.2 separately from any other benefit under the plan. Any unfavorable experience in the paragraph 31.2 plans that results in a premium increase shall be paid for by the Employer. Any favorable experience in the paragraph 31.2 plans shall be credited back to the Employer through a decrease in the premium amount paid for retiree health and welfare coverage.

31.31 An otherwise eligible employee may opt out of the health care benefits under this Agreement and receive instead a payment of fifty dollars ($50) per month from the Employer, provided such employee provides a certificate of alternate health care coverage. If such documentation is received before the first day of a month, the opt-out will take effect the next 41

month. Reacquiring coverage under the UFCW National Health and Welfare Fund for an employee who opts out can only occur during open enrollment or upon the occurrence of a ―qualifying event‖ as defined under COBRA regulations.

31.4 The Employer can opt out of the UFCW National Health and Welfare Fund with the Union’s consent, thereby ceasing all of Employer’s obligations as to the Fund, including, but not limited to, the obligations to pay contributions as set forth above in Paragraphs 31.1 and 31.2; however, the Employer must give the appropriate local union at least four (4) month’s notice of its intent to opt out of the Fund and must provide the appropriate local union the schedule of benefits of the new plan proposed by the Employer.

31.5 The Company shall provide a non-contributory Dependent Care Assistance Program (DCAP) for all employees with Union seniority. All eligible employees will be subject to the DCAP plan description.

31.6 EAP - The Company shall provide an Employee Assistance Program (EAP) for all employees.

31.7 Effective in April, 2009, an eligible employee pays $14.08 per month (payable on a pre-tax basis), to the Delta Dental Plan of California for benefits as provided. For coverage after December, 2009, the amount an employee pays monthly will be adjusted based on a 50%/50% sharing of any increase or decrease between the employee and the Company which occurs to the total monthly premium, provided that such a change in the premium is declared by the dental insurer. Any increase or decrease to what the employee pays would be effective when the dental insurer’s premium change is effective. An eligible employee is one who has worked or been paid for at least forty (40) straight-time hours in the previous month. Such payments will not be made on behalf of probationary employees.

31.8 The Company and the Union agree that the total of an individual employee’s share of the monthly medical and dental premiums can be deducted (on a pre-tax basis) from the employees’ paychecks in two (2) equal installments during a month.

SECTION XXXII

WORKERS' COMPENSATION

32.1 In the event an employee is injured while at work and is required to leave work, the employee shall be paid his full pay for the day of the injury, 42

provided the employee requires medical attention and upon the advice of the attending physician is unable to return to work.

32.2 Employees who have light duty restrictions due to an industrial injury and return to work shall receive the rate of pay they were earning at the time of the injury for up to two (2) calendar weeks.

SECTION XXXIII

SICK PAY

33.1 In the case of a non-industrial illness or non-industrial injury, up to forty (40) regular hours of pay will be paid to employees who on January 1 have a minimum of one (1) year of service and a minimum of 1500 hours worked during the year. An employee who on January 1 has less than one year of service will receive a prorated amount of the forty (40) regular hours of sick pay, based on the number of calendar months that the employee worked one hundred and twenty-five (125) hours or more within the previous year.

33.2 Sick pay will be paid, at the employee’s straight time, classified hourly rate, plus shift differential, if any, for all absences related to the employee’s bona-fide non-industrial illness or injury.

33.3 Sick pay can be accumulated at the rate of forty (40) hours a year up to a maximum of one hundred and sixty (160) hours.

33.4 Employees entitled to State Disability Benefits may have their weekly State Disability Benefits supplemented by their available sick pay in an amount equal to 100% of their net straight-time earnings based on their classified hourly rate, less statutory deductions.

33.5 Sick pay is applicable only in case of the bona fide non-industrial illness or injury of an employee and shall not be paid for if not taken, with the exception of what is stated in 33.6.

33.51 Sick pay will only be paid in increments of two or more hours.

33.6 In January of each year, any employee who has accumulated over 120 hours of sick pay shall be eligible to request payout of sick leave benefits, with a maximum payment of 40 hours and a minimum payment of 8 hours paid at the employee’s current, straight-time, classified hourly rate.

33.7 In the event of a non-industrial illness or injury, sick pay will be paid in the following manner.

a. If an employee is absent for three (3) or more scheduled workdays, a physician's statement will be required to receive sick pay. If the 43

employee has no available sick pay, at a minimum, a physician’s statement is required to return to work.

b. A physician's statement is not required for absences less than three days; however, a physician’s statement is required for any absence that occurs either the day before or the day after a holiday, the day prior to the start of or the day after the end of vacation, or on a scheduled overtime day.

33.8 In the case of an industrial illness or injury, sick leave with pay up to a total of twenty-four (24) hours for the Worker’s Compensation temporary disability waiting period at the rate of a full day’s pay at straight-time earnings, Saturday and Sunday excluded (Sunday or Monday for Sanitation employees who are working a Tuesday through Saturday workweek), will be allowed during the contract period, the date of notice of ratification through March 31, 2013, to all employees who have sufficient accrued sick leave pay to cover the work hours missed. If Worker’s Compensation temporary disability payments are paid for said waiting period, no sick leave benefits shall be paid.

33.9 Misrepresentation by an employee of the facts with respect to any

disability, illness, or injury for which benefits may be claimed by the employee shall disqualify the employee for such benefits and shall be just cause for disciplinary action, up to and including discharge.

SECTION XXXIV

PENSION PLAN AND 401K

34.1 It is agreed that the Company will administer the E. & J. Gallo Winery Hourly 401K Plan (Plan) for all employees with union seniority. The parameters of the aforementioned Plan as described in paragraphs 6 through 8 of the February 2008, Memorandum of Understanding (a copy of which is included in the Supplemental Agreements section of this Agreement) is hereby incorporated into this Agreement. All eligible employees will be subject to the 401K Plan description.

SECTION XXXV

NO STRIKE-NO LOCKOUT

35.1 The parties have agreed that there shall be no economic action taken by the Union as a result of any labor dispute with the Employer during the life of the Agreement. For the purposes of this section, ―economic action‖ shall be defined as sympathy strikes, slowdowns, picketing or any adverse actions initiated, ratified, or participated in by the Union and its members. It is the intent of the parties that during the life of the contract there shall be no 44

interruptions or interference with the Employer’s normal sales, production or shipping operations at any of the Employer’s locations.

SECTION XXXVI

WORKPLACE VIOLENCE

36.1 The Company will not tolerate acts of violence or threats of violence by any person and maintains a zero tolerance policy toward such actions. All violent acts by an employee and all threats by an employee are considered serious and will result in discharge.

SECTION XXXVII

SCOPE OF AGREEMENT

37.1 Separability

If any term or provision of this Agreement is, at any time during the life of this Agreement, adjudged by a court of ultimate authority to be in conflict with any law, such term or provision shall become invalid and unenforceable, but such invalidity or unenforceability shall not impair or affect any other term or provision of this Agreement. In the event of such a court decision, the parties will bargain or arbitrate the unresolved issue. Each party can frame the issue for arbitration.

37.2 Past Practices and Side Agreements

Since side agreements (oral or written), binding past practices, or letters of understanding between the parties prior to April 1, 2009, were either incorporated into this Agreement, or are contained in the document entitled ―Supplemental Agreements Covering the Modesto, Livingston, or Fresno Facilities,‖ or no longer apply; they are null and void.

SECTION XXXVIII

TERMINATION OF CONTRACT

38.1 This Agreement shall become effective as of the date of notice of ratification to E. & J. Gallo 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 sixty (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. 45

SECTION XXXIX

GENDER

39.1 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.

SECTION XL

MILITARY DUTY AND REEMPLOYMENT RIGHTS

40.1 The Company shall comply with the applicable federal and/or state law with respect to military duty and reemployment rights.

40.2 In the event of a national emergency declared by the President of the United States and/or Congress, during the term of this Agreement, employees who have attained seniority and are on active military reserve status and are called to active military duty status because of said national emergency, shall have their military pay supplemented up to 100% of their straight-time, classified hourly rate take home earnings based on a 40-hour work week for a period not to exceed six (6) months for each event. Proof of military earnings is required.

SECTION XLI

FUTURE CONDUCT OR AGREEMENTS BY THE PARTIES

41.1 During the term of this Agreement, (1) to the extent that G-3 Enterprises, Closure Division engages in any conduct that is intended to or found to be a binding practice or enters into any agreement with UFCW, such practice or agreement shall not be binding upon E. & J. Gallo, and (2) to the extent that E. & J. Gallo engages in any conduct that is intended to or found to be a binding practice or enters into any agreement with the UFCW, such practice or agreement shall not be binding upon G-3 Enterprises, Closure Division. 46

SECTION XLII

WAGE PROTECTION

 If at anytime during an employee’s assigned shift during the regular work week, an employee whose classified hourly rate is Level 3 or above is assigned work below his pay level, that employee shall be paid his Level 3 or above classified hourly rate for the work he performs.

If at anytime during an employee’s assigned shift during the regular work week, an employee who is a classified Level 2 Operator is assigned work below his pay level, that employee shall be paid his Level 2 classified hourly rate for the work he performs, if (a) a Level 2 employee junior to him is performing Level 2 work for which he possesses the skills and ability to perform and (b) such work is being performed within his department pool.

In the event that any employee, regardless of his classified hourly rate, is assigned to a job which pays below his classified hourly rate because of a layoff/reduction in force, then paragraph 8.3 of this Agreement governs.

                                                          47

 

 

 

Supplemental Agreements Covering the Modesto, Livingston, or Fresno Facilities