Contract: 10/18/13-1/31/19

 (~This is the basic contract. There have been some admendments/clarifications that will be added shortly. There's a ton of typing involved with recreating the current contract and i'm doing my best to have it up, in full, very soon.~)

Scope & Purpose

 

This Agreement made and entered into at Tulsa, Oklahoma this 18th day of October 2013 by and between IC Bus of Oklahoma, LLC (hereinafter referred to as the "Company"), and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), and its affiliated Local 5010 (hereinafter referred to as the "Union"), acting on behalf of and as a duly authorized bargaining agent for employees of the Company employed within the appropriate bargaining unit described herein.

It is mutually agreed to as follows:

It is the general purpose of this Agreement to promote the mutual interests of the Company, employees and the community to promote and improve harmonious industrial and economic relationships between the Company, the Union and the employees covered by this Agreement, and to provide for the operation's competitive advantage under methods which will further, to the fullest extent possible, the safety of the employees, economy and efficiency of operation, elimination of waste, realization of maximum quantity and quality of output for the business, cleanliness, protection of property and avoidance of interruptions of production, and to set forth herein the complete agreement of the parties covering rates of pay, wages, hours and other terms and conditions of employment to be observed between the parties hereto. The parties to this Agreement agree to cooperate fully to achieve and advance the objectives stated above.

The parties acknowledge that, during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to proper subjects of collective bargaining; all such proper subjects of collective bargaining have been discussed and negotiated upon; and the parties reached the Agreements contained in this contract after the free exercise of such rights and opportunities. Therefore, the Company and the Union, for the life of this Agreement, voluntarily and unqualifiedly waive the right to bargain collectively with respect to any subject or matter not specifically referred to or covered in this Agreement, even though such subject or matter may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed the Agreement. Likewise, the parties agree that the other party shall not be obligated to bargain collectively with respect to any subject or matter not specifically referred to or covered in this Agreement, even though such subject or matter may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed the Agreement.

The purpose of this Contract is to provide orderly relations between the Company and the Union and the employees it represents, to establish procedures for the disposition of grievances, which may arise, and to eliminate interruptions of work and interferences with the efficient operations of the Company. This Contract is entered into in consideration of the mutual performance thereof in good faith by the parties.

 

Article I

Recognition

Pursuant to and in accordance with all applicable provisions of the National Labor Relations Act the Company recognizes the Union as the exclusive Collective Bargaining agent in respect to rates of pay, wages, hours and all other conditions of employment for all of the employees working at IC Bus of Oklahoma, except salaried employees, supervisors, security guards and temporary employees.

Employees excluded from a bargaining unit defined in this Agreement shall not perform work of employees covered by this Contract, except for purposes of instructing employees, but in no event will employees of the unit thereby suffer loss of any working time or regular earnings.

It is understood between the Company and the Local Union, that Product Engineering/ Manufacturing Engineering employees may make initial set-up and test runs on line of new or improved products, or tools, new product launches and engineering changes, provided, however, that in no case shall such employees displace any employee on the seniority list.

Union Management Relationship

  1. The Union and the Company agree to cooperate fully to establish and maintain harmonious and orderly relations, and recognize the need for good working conditions, fair and impartial discipline and efficient operation.
  2. The Union recognizes the established rights, responsibilities and values of management. The specific rights of management to hire, discharge or otherwise discipline its employees and to direct the working force subject to the grievance procedure, as provided in this Contract.
  3. The Union agrees further that it will not solicit Union membership or carry on other Union activities in such manner as to interfere with the efficient operation of the Plant.
  4. The Company shall take appropriate disciplinary action, up to and including discharge, if any employee on working time carries on anti-Union activity seeks, directly or indirectly, to interfere with the status, membership or responsibilities of the certified Union.
  5. The Company and the Union will not tolerate unlawful discrimination or harassment from either party.
  6. The Company recognizes the established rights, responsibilities and values of the

Union and has no objection to its employees becoming members of the certified Union. The Company specifically will not tolerate any discrimination or harassment against the Union or its members.

  1. The UAW-Navistar Department, through its designated representative, may request to meet with representatives of the Company at a mutually-satisfactory time to discuss any disagreements concerning the interpretation of the contract which have prevented disposition of grievances in the grievance procedure or resolution of other matters. The Company shall also have the right to request representatives of the UAW-Navistar Department to meet at a mutually satisfactory time for the same purposes.

Discrimination

The Company and the, Union will comply with all federal state and local employment laws; will provide equal opportunity to all employees; and will not discriminate against employees because of age, race, sex, religion, national origin, disability, veteran status, or any other characteristic protected under federal, state or local law, as those terms are defined by applicable law.

The Company agrees to continue its present nondiscriminatory policy offering equal opportunity for available jobs to qualified applicants without regard to any basis described above.

All job titles and job descriptions contained in the agreement will be construed to be gender neutral.

Living Operating Agreement

The parties jointly acknowledge and agree that the standards for remaining competitive are constantly changing, and that a working environment that is competitive today may become non-competitive tomorrow unless appropriate changes are made on a continuous basis in the areas of cost, quality, productivity, efficiency and safety. In order to address the need to continuously improve the operating environment described above at each facility and within every bargaining unit, the parties agree that each facility may enter into agreements, on a local basis, that deviate from current contractual provisions. It is understood that any such modification or change will not become effective unless reduced to writing and approved by the UAW Heavy Truck Department and the Company's Vice President of HR, and ratified, where appropriate, by the membership of the unit involved. The changes will be effective only at the location(s) and for the group of employees specifically designated.

Article Il

Management's Rights

The management hereby retains the sole control over all matters concerning the operation, management and administration of its business; the determination of locations and relocations of its plants or any parts thereof; the determination of the products manufactured and the services to be rendered; the right to subcontract any or all of the processes of manufacture, facility maintenance or service work; the determination as to whether components, piece parts or complete manufactured units or services shall be made or purchased; the right to determine the length of the work week, when overtime shall be worked and to require overtime; the direction and instruction and control of employees including but not limited to the determination of the qualifications of employees to perform the work in a satisfactory manner; the assignment of work or overtime; the right to select, hire, layoff, reclassify, upgrade, downgrade, promote, transfer, discipline, suspend, separate for just cause; the right to determine job content and to create new job classifications to revise the content of existing jobs; the right to combine jobs and eliminate classifications; the right to establish production and performance standards and to determine the hours of work, the starting and quitting times, the processes and methods and procedures to be employed and the right to make and enforce reasonable rules and perform all other functions inherent in the administration and/or management of the business.

The above rights of the Company are not all-inclusive but indicate the type of matters or rights, which belong and are inherent to the Company. Any of the rights, powers and authority the Company had prior to entering the collective bargaining sessions which resulted in this Agreement are retained by the Company except as expressly and specifically abridged, delegated, granted or modified by this Agreement.

The Company has the right to establish reasonable rules. The Union has the right to grieve the reasonableness of any rule or application thereof. The Company's liability in any such instance will not exceed beyond thirty (30) days prior to the date of the Grievance.

 

Article Ill

Representation

The Union shall be represented in the plant by a Bargaining Committee consisting of a Bargaining Chairman and Committeepersons who shall be selected from among employees in the Bargaining Unit in any manner determined by the Union.

  1. There shall be one Bargaining Chairman and four (4) Committeepersons on the first shift.
  2. There shall be one (1) Steward on the second shift on an as needed basis.

In the event of a layoff, the Committeepersons/Steward shall be the last person laid off in the area they represent provided they have the ability to perform the available work. The Bargaining Chairman in addition to the Local Union President, during their term in office, shall be the last persons laid off in the Bargaining Unit provided they have the ability to perform the available work.

The Bargaining Committee shall consist of five (5) members, in addition to the Local Union President, one of whom shall act as Bargaining Chairman. No one shall be eligible to serve as a Committeeperson/ Steward or Committeeperson/ Alternate Steward unless he is an employee having seniority and on the active payroll of the Company. For each Committeeperson/ Steward, there shall be an alternate designated by the Union to function in the absence from the plant of the regular Committeeperson/ Steward. Should the employment level on any shift, other than first (1 st) shift, exceed one hundred fifty (150) bargaining unit employees, the Union shall be allowed to designate a Committeeperson for that shift in place of the steward. In the event such expansion should occur, the number of Committeepersons listed above will be increased accordingly. For each Committeeperson/ Steward, there shall be an alternate designated by the Union to function in the absence from the plant of the regular Committeeperson/ Steward. The training of the Bargaining Committee shall not be done on Company time.

Within thirty (30) days after the initial full term elections, the Union shall furnish the

Company with a written list of its officers, Bargaining Committeemen, and Steward of the Local Union No. 5010 (UAW), and thereafter, if there shall be any change in the persons who are officers, Bargaining Committeemen, or Steward of the Local Union No. 5010, the Union shall notify the Company in writing prior to such change taking place.

It is understood and agreed that all grievances shall be processed on Company time.

  1. Employees will not suffer any loss of wages or benefits while exercising their rights under the grievance procedure.
  2. The Union Steward will not suffer any loss of wages or benefits while investigating and processing grievances in accordance with the Labor Agreement.
  3. The Bargaining Committee Members will not suffer any loss of wages or benefits as a result of investigating and/or processing grievances and meetings with Company officials.
  4. If requested by an employee, the Committeeperson/Steward representing the area in which the employee works will be present, on Company time, during an investigatory interview the employee reasonably believes will result in disciplinary action against him.
  5. If requested by the employee through his Team Leader or by the Company, the Committeeperson/ Steward of the area in which the employee works will be present, within regular working hours, during any meeting with a Team Leader or a grievance in Step 1. If the employee requests Union representation, the Team Leader will provide the employee with the appropriate Union Representative within a reasonable amount of time.
  6. A Steward or Bargaining Committee Member shall be afforded a reasonable amount of time away from his/her normal work duties for the purpose of conducting legitimate union business. It is understood that the appropriate member of management shall be notified of the above union officials need to leave his/her work area. It will be understood that investigations and discussions will not be conducted on overtime unless it is a matter of an urgent nature (i.e. discharge, suspensions).

In addition to the above positions, there will be three (3) positions appointed by the UAW Heavy Truck Department; A Health and Safety Representative, Benefits/EAP Representative and a Quality Representative. These appointed positions shall be the last persons laid off in the Bargaining Unit provided they have the ability to perform the available work.

 

Article IV

Grievance Procedure

For purposes of this Agreement, the term "grievance" means any complaint or dispute raised by either the Union or any bargaining unit employee concerning the effect, interpretation or application of this Agreement, or any claim that the Company has breached or violated this Agreement. The Company cannot file grievances under this Agreement.

Both parties agree that avoiding unnecessary grievances and the handling of oral grievances is dependent on the understanding and the continuing cooperation of management and union representatives.

In this connection the parties encourage the expeditious consideration of complaints at the point of origin by the bringing together of people with the special talents and skills required for full exploration of the problem involved, the joint investigation and agreement on the facts, and the resolution of differences within the framework of the labor contract.

The Company and the Union have established the following objectives:

  1. Avoidance of grievances and misunderstandings.
  2. Oral handling of grievances within the framework of our agreements.
  3. Expeditious investigation and quick disposition of such grievances problems.

The Union and the Company agree that they will continue to work within the framework of their agreements to further these objectives.

Should issues arise between the Company and the Local Union or employees under this Contract, such issues shall be taken up for settlement under the following procedure:

Oral: The complaint shall be presented by the employee involved or the Committeeperson, or both, within four (4) working days of the alleged violation or when the employee or the Union became aware of the issue, to the immediate Team Leader or other designated Team Leader. The Company and the Union both recognize the value and importance of full discussion and complete presentation and agreement concerning all pertinent facts in order to clear up any misunderstanding. The parties will cooperate in the exchange of pertinent information concerning the grievance. Every reasonable effort shall be made by both parties to settle the problem in this step.

Step 1: If the issue is not settled at the Oral Step between the Committeeperson, employee and his immediate supervisor within four (4) working days from the time it is raised, it will be submitted in writing on an agreed-upon form provided by the Union, and presented to the employee's Team Leader by the Committeeperson. The Team Leaders answer will be given in writing to the Committeeperson within four (4) working days after receipt of the grievance.

Step 2: If the grievance is not settled at Step 1 it may be presented to the BTL's by the Committeeperson within five (5) working days after receipt of the Team Leaders answer at Step 1. The BTL's answer will be given in writing and returned to the Committeeperson within four (4) working days.

Step 3: In the event the BTL's answer is not satisfactory, the Bargaining Committee Chairperson may, within (5) five working days of the BTL's answer, request a meeting in writing with the Human Resources Department to seek resolution of the grievance. The Step 3 meeting will include representatives of the Human Resource Department and other management representatives as deemed necessary and the Bargaining Committee Chairperson and the Bargaining Committee. This group shall meet as soon as practical at a time mutually agreed upon by the Chairman and Human Resources. The Company's answer will be given within five (5) working days of the conclusion of the Step 3 meeting. The Company's response will state whether there is any dispute with respect to the facts of the case and whether the grievance is granted or denied and if denied, the reason for the denial.

The President of the Local Union may attend Step 3 meetings and will be afforded time off with pay from his regularly scheduled work on the same basis as a Grievance Committeeman for such attendance.

Step 4: UAW Regional/Heavy Truck Department Review Step: In the event the Companies answer, in Step 3 above, is not satisfactory, the Bargaining Committee Chairperson may within five (5) working days, appeal the grievance to Step 4. Once a grievance has been appealed to Step 4, The International Union and the Company will arrange a meeting for the purpose of resolving grievances at this step. The Step 4 meeting shall include the Director of Labor Relations or their designee, and other management representatives as deemed appropriate by the Company; also included will be one (1) or two (2) representatives from the International Union, The Bargaining Committee Chairperson, and the Committeeperson who handled the grievance in the previous steps. The Bargaining Committee Chairperson may bring an additional representative(s) as deemed necessary by the Union. The Company's answer will be given to the Bargaining Committee Chairman, UAW Regional Representative and the Heavy Truck Representative within thirty (30) days for the conclusion of the Step 4 meetings. The Regional and/or Heavy Truck Representative, upon receipt of the 4th step Company answer, will make the decision to settle, withdraw, or appeal the grievance to the Arbitration Step of the procedure.

Arbitration: If the grievance is not settled in Step 4 above, notice of intent to appeal the case to an arbitrator must be given in writing to the Company after the written answer being given in Step 4 above. Only grievances involving the interpretation or application of the provisions of this Agreement shall be subject to arbitrations. The Union and the Company may select, by mutual agreement, a Permanent Arbitrator to serve until the termination of this Contract, provided he continues to be acceptable to the Union and the Company. The selection process of the Permanent Arbitrator will be outlined under separate letter. In addition to the agreed compensation to be paid for his services, he will be entitled to his necessary travel expenses in connection with the performance of his duties. If such Arbitrator becomes unacceptable to either or both parties, appropriate written notice shall be sent to the Arbitrator and the opposite party, and he shall thereupon conclude his services by rendering decisions on any grievances pending that have already been heard by him. It is understood and agreed that neither party may be compelled to arbitrate more than one grievance at any one arbitration hearing. However, nothing shall prevent the parties from combining two or more grievances for arbitration if they mutually agree to do so in writing.

It is understood that should a step of the Grievance Procedure be bypassed and forwarded to the next step, the grievance will be remanded and returned to the missed step of the procedure for consideration prior to being accepted at the next step.

The arbitrator shall be empowered, except as his powers are limited below, to make a decision in cases of alleged violation of rights expressly accorded by this Agreement.

The limitations on the powers of the arbitrator are as follows:

  1. He shall have no power to add to or subtract from or modify any of the terms of any Agreement.
  2. All awards of back wages shall be limited to the amount of wages the employee would have otherwise eamed from his employment with the Company during the period as above defined less any employment or unemployment compensation or other compensation for personal services that he has received from any source during the period.

In the event the Company does not reply to a grievance within the time limits set forth in Step 1 through Step 4, the Union may, upon notification to the Company, process such grievances to the next Step of the Grievance Procedure.

It is understood and agreed that this Grievance Arbitration Procedure is for the exclusive benefit of the employees and the Union and that the Company does not have recourse to the procedure. The Company reserves all of its remedies at law and in equity.

Fees and expenses incident to the service of an arbitrator acting pursuant to this Agreement shall be chargeable equally to the Company and the Union. Should either party request a transcript to be taken, the party requesting the transcript will pay the full cost of the transcript, but shall not be required to furnish a copy to the other party. If both parties request a transcript, the cost shall be equally divided between the parties.

If the Arbitrator requires a copy of any original of the transcript to be supplied to him, the cost of such copy or original shall be shared equally between the parties. The decision of that arbitrator shall be final and binding on all parties to the Agreement and the employees involved.

  1. A grievance involving a suspension or discharge shall be initiated at Step 3 of the grievance procedure within four (4) scheduled working days after the suspension or discharge.
  2. A copy of a written warning to the employee will be timely furnished to the Chairman of the Bargaining Committee. Both parties recognize and wish to respect the privacy and confidentially rights of individual employees consistent with the Union's right to have relevant information.
  3. When the Company advises employees of discipline, the action must be issued within five (5) working days of the incident, where reasonable; otherwise, the discipline becomes null and void.
  4. In the administration of progressive discipline, disciplinary warnings more than 12 months old shall not be considered.
  5. In the event the Company intends to issue discipline and/or discharge to any employee, the Company will, prior to issuing the discipline or discharge, offer Union representation to the employee.

The Union will provide written notice to the Company of their intent to arbitrate a grievance within one year of the Step 3 written answer provided by the Company.

Time limits herein provided may be extended by mutual Agreement in writing signed by the parties.

All references in this Article to the number of scheduled working days as time limitation shall not include Fridays, Saturdays, Sundays or paid holidays.

Union representatives who are needed by the Union in the presentation of their case and employees who are witnesses for the Union will be excused from work without pay to attend a hearing upon written request by the Union. Other employees whom the Union wishes to attend a hearing will also be excused from work without pay upon written request of the Union if production requirements permit, and provided space limitations are not exceeded. Except by agreement, persons who are not employees of the Company or the Union will not be permitted to attend a hearing unless they are participants.

Letter of Understanding Reinstitution of Grievances

The Company and the Union recognize that the mutually satisfactory resolution of employee complaints in the grievance procedure, by authorized Company and Union officials, results in a final and binding determination for both parties as well as the employee involved. The parties' recognition of this principle has contributed stability and certainty to the grievance procedure. Accordingly, the Company views any attempt to reinstitute such claims by either party as being anti-ethical to the purposes for which the grievance procedure was established.

However, subject to the provisions of Agreement, in those instances where the UAW's International Executive Board, Public Review Board, Constitutional Convention Appeals Committee, or an outside agency having jurisdiction has reviewed a grievance disposition and found that such disposition was improperly concluded by the Union body or representative involved, the Heavy Truck Department may so inform the Labor Relations Staff of the Company and request in writing that such grievance be reinstituted in the parties' grievance procedure at the same level as which it was originally settled. After receipt of such written request, the grievance will be so reinstituted by the Company.

It is understood by the parties, however, that the Company will not be liable for any back pay claims from the time or original disposition to the time of reinstitution of the grievance, and it is further agreed that the reinstitution of any such grievance shall be conditioned upon agreement by the Union and the employee(s) that neither will pursue such back pay claim against the Company.

This letter is not to be construed as modifying in any other way either party's rights or obligations pursuant to this Agreement or the final and binding nature of any other grievance resolutions. It is also understood by the parties that this letter of understanding and the Company's obligation to reinstitute grievances consistent with the conditions set for within this agreement and upon written request from the Union, can be terminated by either party upon thirty (30) days' notice in writing, to that effect.

 

Article V

Hours of Work and Overtime

Workweek

The normal workweek shall consist of four (4) days often (10) hours each commencing on Monday of each week and ending on Thursday. The first shift will be a regular workweek of four (4) ten (10 hour days. Starting time for employees on 1st shift will normally be 6:30am. The second shift will be a regular workweek of four (4) ten (10) hour days. Starting time for employees on 2nd shift will normally be 5:00pm.

  1. The normal workweek shall consist of four (4) days of ten (10) hours each commencing on Monday of each week and ending on Thursday. A workday is a continuous twenty-four (24) hour period beginning at the regular starting time of the employee's shift. A workweek for payroll and work scheduling purposes is a seven (7) consecutive day period beginning at 12:01 am on Monday.
  2. The Union and the Company agree shift start times may be adjusted to meet business requirements and alternate shift patterns may be implemented, with the appropriate advance notice. The Company will discuss the business need that requires a start time/shift pattern change with the Local Bargaining Committee. The Bargaining Committee will support the change for valid business reasoning.

Overtime

The Company will pay employee for overtime as follows:

A. At the rate of time and one-half for hours worked either;

  1. In excess often (10) hours in any single workday, or
  2. In excess of forty (40) hours in any given workweek, or
  3. For Friday except in cases where the employee was absent from work during the regular workweek due to absenteeism or act of God has occurred.
  4. For Saturday except in cases where the employee was absent from work during the regular workweek due to absenteeism or act of God has occurred.

B. At the rate of double time for hours worked either;

1. Sunday (3rd off duty day) or Holidays

Rest Periods

There will be two (2) scheduled rest periods in each regular work-day; one (1) fifteen (15) minute break during the first half of the shift and one fifteen (15) minute break during the second half of the shift. An additional fifteen (15) minute rest period will be given for those employees who are required to work more than ten (10) hours. In the event that the ambient temperature is ninety-eight (98) degrees or greater, there will be an additional fifteen (15) minutes break during the second half of the shift.

The Company shall provide an unpaid meal break of a minimum of thirty (30) minutes, approximately mid-way through the shift.

Break times and lunch period may be flexed to minimize operational down time. The Company will notify the Local's Chairman of the business reasons for such change.

Reporting to Work with no Work Available

The Company will make mass notification through the call system by 4:30am if there is an issue that would require a delayed start or unexpected down day. If notification is not made timely, and the employee scheduled to work and reporting to work finds on arrival at the plant that there is no work available in their department, will be offered 5 hours of work in another area, if such work is available, or will be paid a minimum of five (5) hours pay at their regular rate of pay, if no work is available. If alternative work is available to an employee and the employee refuses such work, they will not be entitled to the five (5) hours of pay and will only be paid for hours worked. This section shall not apply if employees are unable to perform the work because of an emergency such as fire, flood, explosion, storm, and utility failure outside of the plant, major mechanical breakdown requiring the shutdown of the production line, work stoppage, labor dispute, act of God or for reasons beyond the control of the Company, etc.

Called in to Work

Where an employee is called out to work on unscheduled work hours and such call in period does not adjoin the employee's scheduled work hours, he shall be paid a minimum of five (5) hours pay at his regular base rate of pay. If the assignment is completed in less than the five (5) hour period, the employee may elect to go home without pay for the balance of the call in period.

Nothing contained in the Agreement shall require payment of premium pay more than once for the same hours worked.

Shift Premiums and Hours

Employees who are employed on the second (2nd) shift or third (3rd) shift shall receive, in addition to their regular pay, sixty-five (65) cents per hour additional compensation.

Distribution of Overtime

When business conditions present overtime necessity without prior shift notification, the Company will request seniority employed volunteers to complete that overtime work as requested by the Company in the following order:

  1. Employee on the job.
  2. Most senior qualified employee in rotation order, on the overtime rotation list.
  3. If seniority employees refuse this voluntary opportunity in the respective department(s), temporary employees will be offered this overtime.
  4. If the number of volunteers is not sufficient to meet the needs of the business, overtime will be classified as required work time, and will be scheduled for the following day by 4:00pm or one hour prior to the end of shift.

   When employees are brought from "one department' to another department for overtime purposes, every effort will be made to rotate the overtime among those employees qualified to perform the work.

   Employees who desire not to be offered overtime will sign an overtime refusal slip and the Company shall not be required to ask such employees if they wish to work overtime. An employee whose name is off the overtime list may, at any time after thirty (30) calendar days following the removal of his name from the overtime list, request in writing to have his name placed back on the overtime list and it shall be returned.

   An employee whose name is off the overtime list may, at any time after thirty (30) calendar days following the removal of his name from the overtime list, request in writing to have his name placed back on the overtime list and it shall be returned.  For the purpose of rotating overtime, a list shall be kept as noted within the respective departments. Such list shall be maintained on a daily basis by the Company. The overtime list will show the number of hours worked by each employee on a daily basis. Such list shall be openly displayed for inspection by the department Stewards or Committee Persons. The employees shall be permitted to inspect the overtime list on a daily basis on non-working time.

   An employee who is offered overtime under this article, and declines, or an employee who is unavailable will be charged on the overtime list to have worked the overtime.

The Company shall not be obligated to train employees on an overtime basis. The Company shall not be obligated to work unqualified employees, nor shall an unqualified employee be charged incorrectly. Should the need arise for the Company to work an unqualified employee solicitation shall be on a seniority basis.  It is the intent of this section to provide a means by which overtime work may be distributed on an equal basis among employees in their respective classification within the department who are on the same shift. If, during the life of this Agreement, inequities or operating difficulties appear in the administration of this section, the parties will meet upon request of either party and will endeavor to modify this section to eliminate any such inequities or operating difficulties. Where possible the Company will equalize overtime between shifts as proficient operations permit.  When an employee is transferred to another department for one or more shifts, temporary or permanent, they will be eligible for overtime within the department or group that they are working in, and will be placed on the overtime rotation list in accordance with this Article.

Generally, IC Bus of Oklahoma attempts to fill overtime needs on a volunteer basis. It is recognized by the Union and the Company the distribution of overtime is predicated on the senior employee meeting requisite applied and demonstrated skills to perform the overtime work. On occasion, such as when there are no or an insufficient number of volunteers, overtime will be required. When you are scheduled to work on a Friday, weekend or other overtime hours (whether voluntary or required) and you do not work, the missed day or hours will be treated as any other absence for purposes of attendance.

Any seniority employee involved in oversight will be awarded the next available overtime work available.

Notification of Scheduling of Overtime

Your Team Leader will provide you with prior days’ notice, by 4:00pm or one (1) hour prior to the end of the current shift, when the need for scheduled overtime arises. Our goal is to limit daily overtime to two hours per day; however, this may not always be possible, and excessive overtime will be closely monitored.

When required overtime is scheduled, it is the responsibility of the Team Leader and the Committeeperson of the area, to assure equal administration of approved overtime by the Company.

The Company will make every attempt to notify employees of Friday overtime on the Thursday of the prior work week but no later than noon on Tuesday of the current work week.

To mitigate the need for Friday, overtime the Company and the Union will jointly explore opportunities of working daily overtime in an attempt to avoid Friday overtime. This in no way should be misconstrued to limit the Company's ability to schedule daily or Friday overtime.

Representation During Overtime

When Friday, weekend or daily overtime opportunities are presented the following will apply to Union representation.

When Friday, weekend or daily overtime occurs and there are more than ten (10) bargaining unit employees working the Local Bargaining Unit Chairperson will be one of those ten (10) employees provided he/she is qualified to perform the work available.

When there are five (5) or more employees within a Committeeperson's Zone of representation they will be one of the five (5) employees working. Provided he/she is qualified to perform the work available.

The steward will be the 2nd employee working the overtime when more than one (1) person is working within their area of representation.

Article VI

Wage Payment Provisions

The Company and the Union understand it is imperative to be competitive in wages and benefits in the local recruiting area and with our competitors. To attract and retain employees, IC Bus of Oklahoma pays wages competitive with those paid by other employers in our industry and within our recruiting area to the extent we can remain competitive in our business.

Each position at IC Bus of Oklahoma has been studied and assigned to a job band and corresponding labor grade. When a new job is introduced or an existing job is substantially changed, the Company will create/revise its job description, determine the appropriate pay grade and job specifications. Such new or modified job will be submitted to the Union for its review prior to implementation. Any disputes will be resolved within 30 days of being submitted to the Union.

 

Job Bands

Labor Grade

Corresponding Skills

Basic Technician

1

Bus Utility, Building & Grounds

General Technician

2

Assemblers, Sub Assembly, FL Operators

Process Technician

3

Painters, Welders, Quality IPV

Systems Technician

4

Maintenance, General Maintenance

In view of the purposes of job bands as set forth above, the provisions of this Sub- section shall not be construed to limit either the Company's right to assign work to employees or an employee's obligation to perform assigned work. Likewise, the provisions of this Sub-section shall not be construed to affect either the contractual rights or obligations of employees or the Company in (1) the application of seniority in cases of promotion, demotion, transfer or layoff, (2) payment of proper rates of pay for assigned work, or (3) equalization of overtime.

If it has been definitely established that an injury to a worker has risen out of and in the course of employment and the employee is instructed by the Plant Medical Department to leave the plant in order to receive outside treatment and he returns to work during the current shift, he shall suffer no loss in earnings for the time involved. If the employee fails to return to work the time away will not be compensated.

However, if the employee is physically unable to return to work because of the severity of his injury, or if the employee upon his return to work presents certification from the outside doctor showing that he was ordered not to return to work, or if the injury occurs too late in the day for the employee to return before the end of the current shift, he shall suffer no loss in earnings for the time lost during the current shift. Such an employee, if released by a physician for light or restricted work, may be assigned to any job within his restrictions seniority permitting, in no case will a seniority employee be displaced.

  1. No worker will suffer any loss of pay for time lost from work when he is required by the Management to leave his work and report to the Plant Medical Department for a physical examination where such physical examination is required by the Company (1) because the employee has been placed by the Plant Medical Department in a physical classification requiring such examination, or (2) because of working conditions for which the Plant Medical Department requires physical examinations to prevent a hazard to the employee's health.
  2. No worker will suffer any loss of pay when required to report to the Human Resources Department for transfer to another department, for the time consumed during his regular working hours in effecting the transfer.
  3. An employee returning from layoff, leave of absence or disability, who is required to report to the Human Resources Department before returning to work, will be paid for any waiting time which may be required in the Human Resources Department after he is processed and accepted for employment, provided he is immediately available for work. Such employees will be paid on the same basis as provided above. The Company will attempt to work out any problems of people returning so as to minimize time lost in clearance with the medical and Human Resource Departments.

 

Article

Holidays

  1. Effective on the date of this agreement and for contractual purposes, the following days shall be considered holidays:

New Year's Day

Martin Luther King's Birthday

Good Friday

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Christmas Eve

Christmas Day

New Year’s Eve

  1. When a holiday listed in (1) above falls on a Friday, Saturday or Sunday, the parties will mutually agree to observe the holiday either the last regular scheduled workday prior to the holiday or the next regularly scheduled workday after the holiday. All hours paid for holiday purposes will be considered as time worked for the purposes of overtime computation in accordance with this Agreement.
  2. The Company will be permitted to schedule work on any Friday, Saturday or Sunday prior to any listed holiday on a voluntary basis, provided, however, that employees may refuse such work.

a. Good Friday weekend and Thanksgiving weekend work will be on a voluntary basis only.

  1. Holidays not worked — If such eligible employee does not work on the holiday, he will receive a day's pay. A day's pay for regular full time employees will be ten (10) hours pay at the employee's applicable straight time hourly rate exclusive of overtime premiums.
  2. An employee shall be compensated for such holiday only when:
    1. Has successfully completed his probationary period;
    2. Has performed work as scheduled his last scheduled work day before the holiday, and his first scheduled work day immediately following the holiday;
    3. No holiday benefits are to be paid should a catastrophe, strike, accident or fire which is beyond the control of the Company and which cases plant production operations to be down for a full thirty (30) day period immediately prior to any holiday.
    4. In the event a holiday falls during an employee's vacation period, he shall be entitled to his unworked holiday pay in addition to his vacation pay, if the other eligibility requirements are met.

 

Article VIII

Vacations

Vacation Eligibility

During the term of this Agreement, the vacation year shall be the twelve (12) month period starting each January 1.

Regular employees who are on the active payroll on any January 1 during the term of this Agreement shall receive vacation pay as set forth herein, providing they have worked a minimum one thousand forty (1040) hours during the preceding twelve (12) month period ending December 31, as follows:

  1. Each employee whose seniority as of January 1 is one (1) year but less than two (2) years shall receive one week of vacation (40 hours)
  2. Each employee whose seniority as of January 1 is two (2) years but less than five (5) years shall receive two weeks of vacation (80 hours)
  3. Each employee whose seniority as of January 1 is five (5) years but less than ten (10) years shall receive three weeks of vacation (120 hours)
  4. Each employee whose seniority as of January 1 is ten (10) years but less than twenty (20) years shall receive four weeks of vacation (160 hours)
  5. Each employee whose seniority

An employee will have worked and/or have been credited with a total of one thousand forty (1040) hours during the vacation credit year in order to be eligible for a full vacation. An employee who has worked or been credited with less than one thousand forty (1040) hours during the vacation credit year will be eligible for proportionate vacation in accordance with the following table:

Hours Credited % of Full Vacation

1040 and above

100%

940 thru 1039

85%

840 thru 939

75%

740 thru 839

65%

640 thru 739

55%

540 thru 639

50%

Less than 540

 

The following periods, not worked, will be credited as time worked for the purpose of computing vacation eligibility: holidays, vacation taken or paid for during the vacation credit year, Local Union business leave of absence, absence due to work related injury/ illness or paid absence while on jury duty, absence when receiving bereavement pay and time spent in military service as provided by governmental regulations.

A seniority employee's accumulated progression time for purposes of vacation eligibility calculation will stop when he/she leaves active employment and will resume when he/she returns to active employment.

Vacation allotment for balance of calendar year 2013 will be as currently administered.

Vacation Selection Process

Employees who apply for vacation shall be first come basis. When multiple employees apply for vacation on the same day, seniority will apply for the selection process.

Vacation Allotments per Departments

The Company will, as far as possible, approve the employee's preference as to dates, but the Company’s decision in this matter shall be final on the number of employees per department that may be released at any given time.

If the Team Leader and Zone Committeeperson cannot resolve scheduling conflicts that might arise then Human Resources and the Local Union Chairman will be engaged.

 

Article IX

Seniority

Seniority shall be measured by length of service with the Company. In determining an employee's length of service for seniority purposes only, computation will begin on the most recent date the employee began work for the Company. In the event of employees having the same date of hire, the employees Badge/l.D. number will be used as the tiebreaker with the lowest number having the most seniority.

Curtailment and/or Layoff Procedure

Section 1: Layoff Procedure

When it is necessary to decrease the manpower requirements, all temporary employees shall be the first to be laid off followed by any probationary employees. If further curtailments and/or layoffs are necessary employees will be laid off by seniority within their job bands and department provided the employee has the necessary skill and ability to perform the work of the less senior employee

Section 2: Curtailment

Employees impacted by layoff will have the right to exercise their bump or to be laid off from the plant. Bumping will be done in order of seniority of those impacted. Employees will be offered minimal instructions when bumping into a different position.

  1. The employee impacted by layoff will bump the most junior employee in the General Tech job band within their department provided they have the necessary skills, abilities and capability to perform the work.

Employees who have no departmental bumping rights or are disqualified from the departmental bump by the Team Leader will;

  1. Bump the most junior General Technician position in the plant provided they have the necessary skills, abilities and capability to perform the work;

Employees who have no Unit Wide General Tech bumping rights or are disqualified from this position by the Team Leader will;

  1. Bump the most junior employee in a higher job band within the plant provided they have previously held that position and qualified.

Employees who have no Unit Wide higher job band bumping rights or are disqualified from this position by the Team Leader will;

  1. Be laid off from the plant. 

Recall Procedure Section 1: Order of Recall

When there is an increase of force following a layoff, employees shall be returned to work in order of seniority within their job band, unit wide. If there are no employees eligible for recall within the job band the company will post the open position and accept applications by seniority employees for Process or System Technician position or through the transfer process for General Technician positions. If the Company is unable to fill the position through the job posting or transfer process the Company will then fill the position with a temporary employee and/or hiring another person for the position.

If unable to reach and employee regarding recall via telephone or email or a certified letter, United States mail, return receipt requested, addressed to the employee's last known mailing address as carried on files of the Human Resource (HR) Department will be sent to the employee.

It shall be the responsibility of the employee to keep the Human Resource Department currently advised of such employee's latest mailing address, phone number or other contact information.

Section 2: Qualifications

No employee, in exercising their seniority rights provided in this Article, shall replace another employee unless such employee is capable of performing the job of such employee in a reasonable length of time, taking into consideration the nature of the job.

Transfer

Section 1: Lateral Move

When there is a job to be filled in a General Tech job band an employee may request a lateral transfer by completing a transfer request form obtained in the HR Dept. The transfer request forms must be completed by the first Monday of each month and the lateral transfers will be awarded based seniority, on the third Monday of each month. Employees will be allowed a maximum of eight (8) days to qualify on the job they have transferred to.

Section 2: Open Jobs

a. All job openings, for any reason, will be filled according to the provisions as outlined in this Agreement.

b. Employees will be allowed one (1) lateral transfer within a six (6) month time period through the Human Resource Office.

Time will commence when an employee receives their first transfer as defined above. An employee refusing an offer of transfer is not eligible for other transfers for a period of six (6) months.

Section 3: Filling Open Jobs

When an open job exists in the Process Tech or System Tech job bands, a posting will be placed on the internal job opportunity bulletin boards in the plant outlining the open position, business unit, basic job description and shift. The interested seniority employee(s) who wish to apply should complete an internal job opportunity request form within four (4) business days of the original posting date. These forms, submitted prior to the submission deadline, will be reviewed and selections will be made based on seniority, prior experience, as well as applied and demonstrated skills.

Section 4: Request for Transfer

All requests become voided when the employee submits a new request, is transferred to another department, is terminated from the active roll or an employee cancels his/ her transfer.

Employees who have properly submitted requests for transfer and are either on vacation or off on an approved leave of absence, not to exceed 30 calendar days, shall have their request honored if a job opening occurs during this time.

Section 5: Temporary Open Job (Replacement for Employees disabled or on Leave of Absence in Excess of 30 days)

Temporary opening will be filled by temporary employees.

Section 6: Acceptance or Rejection of Request for Transfer

  1. Upon contact, by the Human Resource Office or Supervision, each employee must accept or reject that job offer. Employees will be assigned, according to seniority, prior experience, as well as applied and demonstrated skills, in accordance with their valid request for transfer. An employee who has been assigned in accordance with their request for transfer will be moved to the new job within eight (8) regularly scheduled working days.
  2. The Company will implement a procedure that will allow an employee to cancel any or all transfers submitted to the Human Resource Office, prior to offer.
  3. An employee refusing an offer of transfer is not eligible for other transfers for a period of six (6) months.

Disqualified Employees

Any employee whom the supervisor has certified in writing to the Human Resource Department as disqualified on a particular job will be returned to their original department to bump the least senior employee within their job band.

Medical Placements

An employee who has been certified by the Company Medical Department to be assigned to restrictive work due to temporary physical limitations shall be placed in a transitional duty pool until the employee is able to return to their previous position. The work may include traditional Bargaining Unit work or non-traditional work as long as there is no violation of their physical limitations.

Breaks in Seniority

Seniority shall be considered broken in the bargaining unit when:

  1. An employee voluntarily leaves the Company's employment. When an employee informs the Team Leader he is quitting his employment, the Team Leader will immediately make out a quit slip and the employee will be offered an opportunity to sign the slip. In the event the employee refuses to sign the quit slip, the Committeeperson will be immediately notified.
  2. An employee is discharged for cause. If a person who has been discharged is subsequently reinstated under the procedures provided by this Contract, the break in seniority will be cancelled and all seniority will be restored.
  3. An employee who is absent from work in excess of four (4) working days without reporting to the Human Resources Department or is absent from work in excess of four (4) working days without a reasonable cause for such absence will be discharged under this Sub-section. The Company will notify the Local Bargaining Chairman of those employees who have been absent from work for three (3) consecutive working days without properly reporting their absence or without reasonable cause.
  4. An employee who transfers to a non-bargaining unit position within the Company.
  5. An employee fails or refuses to return to work from layoff or fails to contact the Company within four (4) working days after receipt of notification or return of certified mail to report to work, unless the employee's reason for not reporting is valid.

An employee who has been absent from work in excess of four (4) working days without reporting to Human Resources Department and whose seniority has been considered broken as set forth above, will be reinstated with full seniority rights if he submits satisfactory evidence that his absence was for a legitimate reason and that his failure to report was reasonable under the circumstances, but no back pay will be granted in such cases.

On the effective date of this Contract, no employee will be credited with more or less seniority than he had immediately prior to such effective date; however, thereafter seniority shall be accumulated or broken as provided in this Section.

Whenever in this Article the phrase 'terminated due to layoff' is used, it shall mean removal from the active payroll of the Company and seniority shall be broken only under the conditions prescribed in this Section.

There shall be no loss of recall rights during the term of this contract.

Before new employees are hired, the Company will give consideration to rehiring a former employee whose seniority has been broken and who has applied for reemployment with the Company. A former employee who makes application for employment will not be required to take a pre-employment test for aptitude, proficiency, knowledge or skill, administered to other applicants who have never worked for the Company, if his former jobs, and specifications for those jobs, performed by him include jobs which were substantially like the job for which he is making applications. Such applicant shall nonetheless be subject to all other usual standards for employment including but not limited to previous employment record, health status, personal history, and pre-employment drug testing.

When a new employee is hired, he shall be a probationary employee for the first one hundred and eighty (180) calendar days of employment. All days of absence except holidays must be made up in determining the date upon which the employee acquires seniority.

During the probationary period, probationary employees may be terminated at any time by the Company at its sole discretion and neither the employee so terminated nor the Union shall have recourse to the Grievance or Arbitration procedure over such terminations, except that an allegation involving discrimination as defined in this Agreement, may be processed under the grievance procedure.

A probationary employee will be identified on unit-wide and departmental seniority lists by their date of hire.

At each layoff, or recall following layoff, the Company may designate certain individual employees whose services are required under the special circumstances then existing. Such employees may be retained in or recalled to service, regardless of seniority. If a dispute should arise from the company's designation, the Union shall have the right to process a grievance on this issue.

An employee whose service is to be terminated due to lay off because of reduced manpower requirements will be given as much advance notice as possible, such notice not to be less than three (3) working days. Such notice shall be given during the first half of the affected employee's shift. If, at the end of such three (3) days' notice such employee is not laid off, he must be given another notice of not less than three (3) working days before being laid off. An employee absent on the day notice is given will be considered to have received notice effective as of the date the Company mails notice to such absent employee by certified mail to his last address as listed in the Human Resources Department. This section shall not be construed to prevent the Company from assigning employees in accordance with the provisions of this Contract during such notice period. The Local Chairman will be notified of the employees that will be affected by layoff in advance of any layoff occurring. The Local Bargaining Chairman will be provided sufficient information that he may distribute it to the Bargaining Committee for their review in advance of any layoff occurring.

When a job or operation is moved from one department to another within the bargaining unit or is moved to another location within the same department and is not altered to the extent that the employee holding the job or operation is no longer capable of performing it, such employee shall have the privilege of transferring with it, subject to the seniority provisions set forth in this Contract, and provided he exercises his prerogative at the time such job or operation is moved.

It is agreed that the designated Local Union Officers, President, Safety Representative, Benefit Representative and Steward and the recognized Committeemen/Bargaining Chairman shall be accorded a preferred seniority status within their designated areas of representation subject to the provisions hereinafter stated. The right to designate the persons who shall have such preferred seniority status shall be vested in the Union, provided that the list at all times shall include only employees in office and whose services are reasonably necessary for the conduct of the Local Union's business. Whenever the Local Union desires to substitute another person for one then having preferred seniority, it shall notify the Company in writing and thereafter the person whose preferred seniority has ceased shall resume his regular seniority.

Preferred seniority shall not be used for transfer or promotion to an open job. In case of request for transfer or promotion only actual seniority shall be taken into considerations, except that preferred seniority shall be used in re-transferring to a former job so that a Local Union official may return to this status after a curtailment in force has taken place. In no case shall the Company be under obligation to retain an employee because of preferred seniority status for whom there is no work to perform or who cannot perform the available work in a qualified manner.

The Company will furnish to the Local Bargaining Chairman every six (6) months one (1) copy of an up-to-date unit-wide seniority list for each Grievance Committeeman; with a copy to the Local Union, every sixty (60) days an up-to-date departmental seniority list of the employees in each department. Such seniority lists will include each employee's name, department, Badge/employee ID, birth date, job classification and seniority date. The Company agrees to continue to furnish the Local Bargaining Chairman, weekly, a list of all new employees, together with the names of employees recalled, transferred, or those who leave the employ of the Company for any reason.

The Company will furnish to the International Union at six-month intervals a list containing the names and addresses, as shown on Company records, of all employees covered by the Contract on the active employment rolls of the Company. The Union will take adequate measures to ensure that such information is treated in a confidential manner and is disclosed only to those Union officials whose duties require such information.

Inventory will only be taken on Friday, Saturday and Sunday so that employees shall not be laid off or suffer any loss of pay. The Company reserves the right to schedule inventory during down days.

Assistant Team Leaders

This will confirm the understanding reached between the Company and the Union during the 2013 Negotiations concerning the Assistant Team Leader.

The Company and the Local Union will meet within sixty (60) days of ratification of this agreement to establish an agreed upon selection and de-selection process for Assistance Team Leaders based on objective criteria.

Current Assistant Team Leaders will remain in their positions and the new process of selection and de-selection will be communicated to all incumbents.

Selection/De-selection Committee will be comprised of three (3) salaried employees and three (3) bargaining unit employees. The salaried employees will not be Human Resource employees. The hourly bargaining unit employees will not hold a position with the UAW. Assistant Team Leader reduction will be processed under the Seniority provisions of this agreement. Nothing in this section shall be construed to imply preferred seniority status.

Temporary Employees Letter of Understanding

The Company and the Union have agreed to the percentage of temporary employees permitted to operate in the facility. This percentage is based upon the total number of employees required for the operation. This will be a floating average based on total manpower required (for example, 970 * 25% = 242).

The Company agrees to meet this percentage agreement by June 1, 2014 and additionally agrees to review the number of temporary employees biannually. This review will be held between Local management and the Local Bargaining Committee.

It is understood that temporary employees can be used to supplement the workforce and can be worked on premium days and holiday subject to the Hours of Work and Overtime provisions within this Agreement.

The parties agree that when full time positions are to be filled, the temporary employees having worked the longest for the Company will be given opportunities first, provided the temporary employee expresses the wish to become a seniority employee.

_______________________________________________________________________________________________________________

A Clarification was done on July 12th, 2016 addressing "Off-Shift and Weekend Transfers"

(It was discussed and agreed upon by the Negotiating Committee and the Plant Manager at IC Bus of Oklahoma (Navistar). Here is the letter sent from Plant Manager Chuck Sibley to Bargaining Committee Chairman Guy Abbott, who signed off on the agreement.)

Re: Off-Shift and Weekend Work Manpower Movement Letter of Understanding

This letter confirms our understanding and agreement for the manpower movement within a multi-shift department of employees assigned to an off-shift or weekend work schedule. The Company and the Union have held several discussions regarding employees assigned to an off-shift or weekend work schedule and how they can move between shifts. Based on those meetings the following guidelines have been agreed upon:

 All General Technician classification job openings within a multi-shift department must first be posted and offered to seniority departmental employees across all shifts prior to the consideration of lateral transfer requests from other departments. The current job bidding process will apply.

 Employees can be temporarily assigned voluntarily to other shifts or weekend schedules within the same department provided, however, at no time can a temporary assignment be longer than 90 days unless extended by mutual agreement, The Company cannot displace another employee from their shift or department while exercising such move.

 For the purposes shift movement, annually employees may exercise their seniority and may voluntarily request a shift, manpower move within their department. The Company and the Union will jointly develop a shift movement form that employees will use to make such election between shifts. On or about the first Monday of October each year employees will be given the above mentioned form to make a shift election, all forms must be turned into Human Resources the second Monday of October. All shift manpower moves will be awarded by seniority, employees will be notified if they will be awarded a shift move by the first Monday in November. Al! new shift movement will be effective January 1 st of each year and run through December 31 st. During the months of November and December, employees that are making a shift change will be provided the necessary training for their new position.

 Administratively on the first Tuesday of each month, the Company will provide the Union a manpower report by seniority (which includes temporary employees) and by shift for each department spanning multiple shifts. These reports will incorporate the required to operate number and actual headcount numbers by shift.

As with every agreement business conditions, volume and customer requirements change. If in the future a decision is made to add an additional shift in production, this letter of understanding will not apply to the additional production shift* If a decision is made to add another production shift the Company and the Union Will meet and discuss how to implement a new shift,

Respectfully,

Chuck Sibley

Plant Manager

______________________________________________________________________________________________________________

Article X

Leaves of Absence

Military Leaves of Absence

Military leaves of absence will be administered according to Navistar's corporate policy and any future revisions to such policy. A copy of the policy may be obtained on the corporate website or in Human Resources. Generally, leaves of absence for military or Reserve duty are granted to all regular fulltime and fulltime probationary employees. If you are called to active military duty or to Reserve or National Guard training, or if you volunteer for the same, you should notify your team leader and Human Resources and submit copies of your military orders to him or her as soon as possible. You will be granted a military leave of absence for the period of military service, in accordance with applicable federal and state laws. If you are a reservist or a member of the National Guard, you are granted time off for required military training. Your eligibility for reinstatement after your military duty or training is completed is determined in accordance with applicable federal and state laws.

Employees may be eligible for makeup pay for some portion of the leave as described below. Employees will be eligible to receive full pay for up to two weeks of Military Training duty per calendar year. Upon receiving confirmation of the military pay received, IC Bus of Oklahoma will pay the difference, if any, between military pay and what you would have earned during your military leave if you had continued working. All benefits will continue during an employee's temporary military leave. Employee may use vacation time for the unpaid portion of temporary leave (less than 31 days). Additional compensation and benefits during leave may be applicable and will be determined in accordance with applicable federal and state laws.

Bereavement Leave

The purpose of bereavement leave is to replace those regular, straight time eamings that one normally would have made had the death not occurred. If you are a full-time regular employee and a death occurs in your family, you will be compensated for time lost from your regular work schedule in accordance with the following guidelines. Bereavement pay will be calculated based on the current, straight time, base pay rate applicable to you as if you worked a regular shift. If the death were to occur in a work week that included a scheduled 5th day of work (normally scheduled production Friday) absence on this 5th day will be paid at the regular straight time hourly rate.

1. In the event of a death in the immediate family of a regular full time employee, the employee will be allowed four (4) regular scheduled work days off with pay at the employee's straight time hourly rate.

• "Immediate family/' is limited to the employee's spouse, parent, child, brother, or sister.

2. In the event of a death in the extended family of a regular full time employee, the employee will be allowed three (3) regular scheduled work days off with pay at the employee’s straight time hourly rate.

• "Extended family/' is limited to the employee's step-parent, parent or step-parent of current spouse, step-child, step-brother or half-brother, step-sister or half-sister, grandparents of employee's spouse or the employee, grandchildren, employee's son-in-law and daughter-in-law, great-grandparent, great-grandparent of current spouse and brother-in-law and sister-in-law.

  1. Such leave shall include the day of the funeral and the employee must attend the funeral to be eligible.
  2. If requested by the Company, the employee must furnish adequate proof of the death and the claimed relationship; and

5, Employees who are not working for the following reasons will not be entitled to bereavement pay:

  1. Employees absent due to work related injury
  2. On Layoff
  3. On Sick Leave
  4. Extensions of bereavement, without pay, may be arranged through the Human Resources Department.
  5. In the event of the death of your aunt or uncle, you are eligible for one day of unpaid bereavement leave to attend the funeral.

Requests for bereavement leave should be made to your immediate team leader. Proof of the funeral, your attendance and your relationship to the deceased must be provided to the Human Resource department to qualify for paid time away from work. When requesting bereavement leave, you must establish with Human Resources or your team leader the dates of your absence and the date of your return to work.

Jury and Witness Duty Leave

If you are a full-time regular employee who is summoned to serve jury duty, IC Bus of Oklahoma pays you the difference between your regular salary and the amount you receive from the courts for serving as a juror (excluding any transportation allowance you may receive) during your active period of jury duty for up to a maximum of sixteen (16) working days.

All employees are allowed unpaid time off if summoned to appear in court as a witness in most types of cases. To qualify for jury or witness duty leave, you must submit to your team leader a copy of the summons to appear as soon as it is received. In addition, proof of service must be submitted to your team leader when your period of jury or witness duty is completed.

Family & Medical Leave

Eligible employees are entitled to a leave for up to twelve weeks in any twelve-month period (or, in the case of a leave for your own serious health condition, where a leave extension is requested and approved). Leave taken to care for a child after birth, adoption, or placement in your home for foster care must be taken in consecutive workweeks. Leave taken for your own or a covered family member's serious health condition may be taken consecutively, intermittently, or on a reduced work/ leave schedule based on certified medical necessity. In such instances, IC Bus of Oklahoma will follow applicable federal and state laws in reviewing and approving such leave requests. Union Leave PROOF COPY NOT FOR DISTRIBUTION

A unpaid leave of absence shall be granted up to a maximum of fifteen (15) calendar days upon prior written request to the company for five (5) Union Representatives or members of the Union to attend conventions of the Union (UAW) at the state and international level, regional or district conference of the Union (UAW), to attend education programs and seminars, and to perform such other bona fide duties for the Local Union as may be required. The Company will also, when possible, grant up to five (5) additional officers or members to attend such functions where their absence will not interfere with the Company's operations. For official call letter request from the International UAW, up to ten

(10) employees will be allowed out of the facility.

For negotiations, up to eight (8) employees will be allowed out of the facility.

Any employee selected or appointed to a full time position with the International Union shall be granted, upon a written request, an indefinite leave of absence for the duration of their appointment.

Other Employment While on Leave

An employee on leave of absence will not accept other employment in lieu of his job under this Agreement unless prior consent has been given by the Company and any employee who obtains a leave of absence under false pretenses shall be subject to discharge.

Seniority While on Leave

Employees shall retain and accumulate seniority as though employed by the Company during leaves of absence.

 

Article

Dues Check Off

If the Company has received a written authorization form from an employee authorizing the Company to deduct Union membership dues from the employee's paycheck, and the employee has not revoked the written authorization, the Company will deduct the following from the first weekly payroll period of each month in which the employee has earnings: the Union membership dues for that month, any arrears of such dues, and initiation fees for new members. The Company will promptly remit this amount to the Financial Secretary of the Local Union. The Company will only make such deductions from the paychecks of employees who have signed a check-off authorization card on or before the date of this Agreement, or who thereafter signed a check-off authorization card. A duly designated officer of the Local Union shall advise the Company of the amount of dues and initiation fees to be deducted in accordance with the constitution and by-laws of the Local Union.

The Company shall submit to the Financial Secretary of the Local Union along with the Union dues a list of those employees for whom deductions have been made, together with the amount of such deductions before the fifteenth (15th) of the month following the month for which the deduction was made. The list shall also contain the names of those employees that have been on leave of absence, returned from leave of absence during the preceding month, or who have terminated their employment.

New check-off authorization cards will be submitted to the Company by the Union at intervals no more frequent than once each month and prior to the twenty-third (23rd) day of each month. On or before the twenty-third (23rd) day of each month, the Union shall submit to the Company a summary list of cards transmitted to the Company during the month.

The Union shall indemnify and save the Company harmless against any and all claims, demands, suits, or other forms of liability that shall arise out of, or by reasons of action taken by the Company under the provision of this Article.

Check-off authorization cards will be furnished by the Union.

Such written authorization may be irrevocable for a period of one (1 ) year from the date of delivery to the Company, or until the termination of the collective bargaining agreement, whichever occurs sooner, and may automatically renew itself and be irrevocable for successive periods of one (1) year each or for the period of each succeeding applicable collective bargaining Agreement, whichever shall be shorter, unless written notice is given by the employee to the Company and the Union not more than twenty (20) days and not less than ten (10) days prior to the expiration of each period of one (1) year, or of such applicable collective bargaining Agreement, whichever occurs sooner, unless state law provides a shorter period. Any authorization shall be deemed canceled on termination of employment.

This Article is made pursuant to the provision of Section 3.02 (c) of the Labor Management Relations Act of 1947, as amended.

Article Xll

 V-CAP Check Off

It is agreed between the Company and the Union that the Company make deductions for Voluntary Political Contributions from the paychecks of Company employees represented by the Union.

1. The designated financial officer of each local union will furnish, to the local management, for each employee for whom a deduction is to be made, an authorization card signed by the employee containing the following information:

  1. Name
  2. Employee Number
  3. Department Number
  4. Address
  5. Social Security Number
  6. Local Union Number
  7. Amount to be deducted each month (will be elected by the employee on the deduction card)
  8. Date of Signature

Voluntary contributions will start, in the month following delivery to the Company, if such authorization card is delivered, not later than the 20th day of the month.

Cards that cannot be processed will be returned to the designated financial officer of the local union for correction.

  1. The Company will make such authorized deductions, from wages earned and issued, during the third full pay period of the month and will continue the deductions while such authorization is in effect.
  2. In the event an employee does not receive earnings for such third pay period, deductions will not be carried forth to any succeeding pay period.
  3. The Company will issue a single check, payable to the UAW V-CAP, in care of the UAWs national CAP Department, for deductions made in the preceding month, The UAW's Voluntary Political Contributions Fund (V-VAP) is in full compliance with the Federal Election Campaign Act. Overpayment to the Union, resulting from cancelled employee authorizations, will be refunded by the UAW International Union's Voluntary Political Contributions Fund (V-CAP).
  4. A monthly report will be provided to the local union financial officer and regional office which will indicate: name, employee number, local union number, Social Security Number, month and year-to-date deduction for each member.
  5. Employees who wish to cancel their authorizations, for payroll deductions, will sign a card supplied by the Union for that purpose.
  6. The designated financial officer, of the local union, will collect and forward to local management, as one transmittal, all signed authorization cards and cancellation cards for the initial processing and for each subject monthly period.
  7. In the event of layoff or transfer, the Union-covered employee's authorization card will be held with payroll records and reinstated upon said employee's return to a job covered by the labor agreement.
  8. The Union will indemnify and hold harmless the Company from any and all liability or claims arising from administrative error resulting from the deductions provided for in this agreement.

 

Article Xlll

Strikes and Lockouts

The Company and the Union agree that the grievance procedure provided herein is adequate to provide a fair and final determination of all grievances arising under the terms of this Contract. It is their mutual desire to avoid any interruption of production.

The term "interruption of production" shall mean any work stoppage or strike, any intentional slowdown of production, or a concerted refusal to accept overtime and premium pay assignments.

During the life of this Contract, the Company will not lock out any employee nor will the Union cause or authorize any interruption of production of any of the Company's operations until all the grievance procedure as outlined in this Contract has been exhausted.

The Company and Union agree that there shall be no intentional slow-downs of production by any employee or employees for any reason during the life of this Contract. For this purpose, the term "intentional slow-down of production" shall be construed to mean a condition of willful restriction or reduction of production by any employee or employees, which is within the reasonable control of such employee or employees.

The Union recognizes the duty and obligation of its representative to comply with the provisions of this Contract and to make every effort toward inducing all other employees to do so.

In any case where an interruption of production occurs in violation of this Contract, the Union agrees that it will in good faith and without delay exert itself to bring about a quick termination of such interruptions of production, and will insist that the employee or employees involved therein return to work and to normal production promptly. To that end, the Local and International Union will promptly take whatever affirmative action is necessary.

During any period in which any employee or employees are engaged in any interruption of production in violation of this Contract, the Company will not be required to meet with representatives of the Union with respect to such employee or employees engaged in such interruption of production.

 

Article

Safety and Health

Mission Statement

IC Bus of Oklahoma and the UAW are committed to protect the health and safety of its employees. This goal will be accomplished by developing and implementing new and innovative safety programs. The Joint Health and Safety Committee will be responsible for carrying out the various aspects of the Health and Safety Program.

Committed to:

   Pursuing the goals of no injuries to people and no damage to the environment or equipment.

   Promoting a culture where all employees share in this commitment.

   Recognizing that all accidents and incidents are preventable.

   Observing all applicable laws and regulations.

   Playing a leading role in promoting best practices in our industry.

   Setting targets for improvement.

   Promoting cost effective waste reduction and recycling programs.

Joint Health and Safety Committee

The Joint Central Safety Committee will include Local Union Bargaining Committee members or their designee, Health and Safety Representative and management members as determined by the Company. The committee will meet once a month and minutes of the meetings will be kept.

The Joint Health and Safety Committee will review:

1. Injuries and illnesses to identify cause(s) and prevention;

2.Changes in shop rules governing safety and sanitation;

3. Participation in the review of hazardous materials prior to their use in the plant.

 

4. Developing and evaluating programs such as Fork Lift Safety, Noise Abatement, Ergonomics, Toxic Material Reduction, Preventive Maintenance, lockout, etc.

5. Presenting problem areas and suggestions to the Plant Manager's operating staff. 6. Taking an active role in reviewing, recommending and presenting local safety education and information programs and employee job-related safety training (e.g., hazard communication, lockout, confined space, new employee orientation, apprentice safety, etc.)

  1. Review and make recommendations regarding the personal protective equipment currently in use and selection of suppliers.
  2. Review the operation of the medical department to insure that quality professional treatment is provided.

The parties further recognize the need for the professional development of Joint Central Safety Committee Members; therefore, adequate and necessary training will be made available.

International Joint Committee on Health and Safety

The International Joint Committee on Health and Safety will consist of two (2) representative of the International Union appointed by the Director of UAW Heavy Truck Department and two (2) representatives of the company. Each party will appoint one member who has professional training in industrial hygiene or safety. This committee shall meet periodically.

Items in the meeting to be discussed but not limited to;

   Review the Company's safety and health programs and make necessary or desirable recommendations.

   Develop and recommend to the company an appropriate training program to be established for the local Union Safety Representative and Management Safety Representative.

   Discuss advances in safeguarding procedures for new technology and work with operations to implement such safeguarding considerations in a timely manner.

   Review and analyze federal, state, or local standards or regulations that affect the health and safety programs within the company.

Furnishing Equipment

All items of safety equipment, the use of which is a condition of employment on a particular job, shall be furnished by the Company without cost to employees.

The Company will provide one hundred ($100) during the third pay period of August, each year of the agreement to purchase ANSI approved steel-toed safety shoes.

Letter of Understanding Plant Air Environment

The Company will conduct an engineering study to determine most efficient and cost effective solution(s) to address the current plant ambient air temperature (i.e. evaporative air-cooling). The study will be concluded and solution(s) identified by May 31, 2014.

Based on the results of the study an implementation time line will be developed. The Local Union will be engaged in these efforts throughout the process.

 

Article XV

Acknowledgement

The parties acknowledge that during the negotiations which resulted in this Contract, each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from the area of collective bargaining, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this Contract. Therefore, the Company and the Union, for the life of this Contract, each voluntarily and unqualifiedly waives the right, and each agrees that the other shall not be obligated, to bargain collectively with respect to any subject or matter referred to, or covered in this Contract, or with respect to any subject or matter not specifically referred to or covered in the Contract, even though such subject or matter may not have been within the knowledge or contemplation of either or both of the parties at the time and they negotiated or signed this Contract.

 

Article XVI

Termination of Agreement

This Agreement shall become effective on October 18, 2013 and shall remain in effect through midnight January 31, 2019 and from year to year thereafter until modified, amended or terminated as hereinafter provided. Should either party desire to modify, amend or terminate, notice in writing of such desire shall be given to the other party at least sixty (60) days prior to the expiration date. At any time on or after the expiration date prior to which proper notice of reopening have been given, if no Agreement has been reached, either party may give written notice to the other of intent to terminate this Agreement in not less than five (5) days from the time of delivering of the notice. The provisions of this Agreement shall remain in full force and effect until the time specified in the notice has elapsed. During this interval, the parties shall continue their efforts to reach an Agreement, and there shall be no strikes or lockouts. If no Agreement is reached by the effective time of notice, this Agreement shall automatically expire, unless the parties have mutually agreed in writing to further extension.

 

Article xvll

Union Matters

  1. To facilitate matters of the Union, the Company will provide the Bargaining Committee with an office to investigate and process grievances, interview witnesses, conduct meetings with Company, and for all other provisions covered under this Agreement. In addition, there shall be a lockable work office area for the other appointed Union Representatives in order to comply with HIPPA laws, confidentiality requirements and personal information required in the course of their duties. These offices will be supplied with a computer, phone and fax machine. These positions will also have access to a copier machine.
  2. Time spent from their regular scheduled work by Local Union representatives in negotiating labor contracts with Management, attending meetings, or otherwise carrying on duties of Local Union representatives as agreed to by the parties in this Contract will be counted as time worked in computing all service and attendance records excepting that those given leaves of absence to go with the International Union shall not receive attendance credits for vacation eligibility during such absences.
  3. No Union Representative may be appointed to any Company position outside of the bargaining unit until at least six (6) months after the expiration of their term of office or removal from office, without the consent of the Local Union.
  4. IC Bus of Oklahoma will make arrangements to fly the UAW Flag in front of the facility.
  5. There will be a joint UAW/IC Bus of Oklahoma quality sticker placed at a mutually agreeable location in each bus produced by employees under this Agreement.

Article

Hourly Incentive Program

The Company and the Union agree the incentive plan will be continued as a part of the new Collective Bargaining Agreement.

Key fiscal year performance targets will be set by the Company on a yearly basis, shared with the Union leadership, and communicated to all employees.

Incentive payment will be made within eight (8) weeks of the fiscal quarter's end.

 

Article XIX

General Provisions

Orientation Program

The Company and Union recognize their responsibility to educate new employees in order to prepare individuals to be introduced into the workforce. The parties agree to jointly provide orientation for new employees. Such orientation will include but not be limited to: Contractual understanding, benefits explanation, safety presentation, local specialized training and facility orientation. The Union shall be allocated one (1) hour without the company present to educate the employees on fundamental union principles.

Tuition Refund

The current Tuition Refund Program will remain in place and become a part of this Agreement.

Job Training

The Company commits to adequately train all new employees and employees who have transferred to a new job within the facility. The parties will discuss training programs for all Process Tech, Systems Tech, Safety, Quality and Electrical jobs within the facility.

Pay Practices

The Company will continue to issue checks for any discrepancy in pay over one hundred ($100) dollars.

Break Areas and Lunch Rooms

The Company will continue to maintain three (3) main, air-conditioned break areas in the facility. There shall be four (4) working microwaves in each area.

Successor Agreement

This Agreement shall be binding upon the employer's successors, assigns, purchasers, or transferees whether such succession, assignment or transfer is affected voluntarily or by operation of law; and in the event of the employer's merger or consolidation with another Company or companies, this Agreement shall be binding upon the merged or consolidated Company.

Voting Area in Plant

A designated voting area in the facility for local Union elections will be established. The area will provide a reasonable degree of privacy for the purpose of allowing Local Union members to cast ballots in elections for Grievance Committeepersons, Local Union Officers and Delegates for UAW Conventions. Such voting will take place on employee's breaks, lunch hours, or before or after working hours.

Bulletin Boards

For the sole use of the Union, the Company will erect and maintain one (1) bulletin board at each time clock area and one (1) in each main break area for the posting of officially signed notices of membership meetings or other Union matters. The President, Bargaining Chairman or their designee shall have the responsibility to post the notices. These boards will be lockable and the Union will be provided the keys. In addition, there will be one (1 ) slot for Union communication letters under each time clock bulletin board.

Paid Personal Days

Will be earned and administered as they have been in the past through the life of this Agreement.

Team Concepts

During the term of this agreement the parties agree that they will begin the process of implementing a team concept work system, whereby employees will be organized into teams of approximately 5-10 members. All members of a team share responsibility for the work performed by the team, and for participation in Quality/Productivity improvement programs such as QC Circles and KAIZEN. Team members will determine the methods and processes of distributing the work, including rotation schedules, within the team.

 

Article XX

Employee Discipline

The Union and the Company recognize compliance with company rules is required to meet our commitments to our customers. The intent of this provision is to provide a uniform structure to address rule and policy violations in a consistent and fair manner. This provision serves as a tool to change behavior to ensure the safe and efficient operations of the facility and for the protection of the public, our employees and our customers. Certain rule violations and/or patterns of behavior may be so serious however, that dismissal is the appropriate course of action. The Company recognizes its obligation and responsibility to inform all employees of their rights to representation pertaining to corrective actions and disciplinary procedure. Both parties agree to pursue the intent of this provision in good faith, recognizing fair, just and equal treatment for all employees.

The steps of discipline are; Reprimand, warning, suspension and termination

2013 — 2018 Collective Bargaining Agreement

IC Bus of Oklahoma, LLC & UAW Local 5010

For the Company

R. Barry Morris

Director, Corporate Labor Affairs

Suk Singh

Plant Manager

David Smith

HR Manager

Lisa Hankins

For the Union

HR/Labor Relations Specialist

John Eblin

UAW International Representative — Heavy Truck Department

Matt Bollinger

UAW Director, Region 5

Timothy Bressler

Administrative Assistant, Heavy Truck Department

Dan Smoot

UAW Local 5010, President

Darryle Trammell

UAW Local 5010, Chairman

Roberto Pineda

UAW Local 5010 Bargaining Committee

Guy Abbott

Thomas Hutchinson

UAW Local 5010 Bargaining Committee

UAW Local 5010 Bargaining Committee

Appendix A

Wage Rates

 

Basic Technician

Effective Date

Start

90 Calendar

Days

180 Calendar

Days

365 Calendar

Days

Current

$17.20

$17.50

$17.80

$18.03

2013 - 1st Pay Period after ratification

$0.50 increase upon ratification

$17.70

$18.00

$18.30

$18.53

2014 - 3rd Pay Period in July

$650 Lump Sum

$17.70

$18.00

$18.30

$18.53

2015 — 3rd Pay Period in July

$0.50 increase per hour

$18.20

$18.50

$18.80

$19.03

2016 - 3rd Pay Period in July

$650 Lump Sum

$18.20

$18.50

$18.80

$19.03

2017 - 3rd Pay Period in July

$0.50 increase per hour

$18.70

$19.00

$19.30

$19.53

2018 - 3rd Pay Period in July

$0.45 increase per hour

$19.15

$19.45

$19.75

$19.98

• Add $.65 per hour for all shifts other than 1 st

General Technician

Effective Date

Start

90 Calendar

Days

180 Calendar

Days

365 Calendar

Days

Current

$17.40

$17.70

$18.00

$18.25

2013 - 1st Pay Period after ratification

$0.50 increase upon ratification

$17.90

$18.20

$18.50

$18.75

2014 - 3rd Pay Period in July

$650 Lump sum

$17.90

$18.20

$18.50

$18.75

2015 — 3rd Pay Period in July

$0.50 increase per hour

$18.40

$18.70

$19.00

$19.25

2016 - 3rd Pay Period in July

$650 Lump Sum

$18.40

$18.70

$19.00

$19.25

2017 - 3rd Pay Period in July

$0.50 increase per hour

$18.90

$19.20

$19.50

$19.75

2018 - 3rd Pay Period in July

$0.45 increase per hour

$19.35

$19.65

$19.95

$20.20

• Add $.65 per hour for all shifts other than 1 st

Process Technician

 

Effective Date

Start

90 Calendar

Days

180 Calendar

Days

365 Calendar

Days

Current

$17.60

$17.90

$18.20

$18.56

2013 - 1st Pay Period after ratification

$0.50 increase upon ratification

$18.10

$18.40

$18.70

$19.06

2014 - 3rd Pay Period in July

$650 Lump Sum

$18.10

$18.40

$18.70

$19.06

2015 — 3rd Pay Period in July

$0.50 increase per hour

$18.60

$18.90

$19.20

$19.56

2016 - 3rd Pay Period in July

$650 Lump Sum

$18.60

$18.90

$19.20

$19.56

2017 - 3rd Pay Period in July

$0.50 increase per hour

$19.10

$19.40

$19.70

$20.06

2018 - 3rd Pay Period in July

$0.45 increase per hour

$19.55

$19.85

$20.15

$20.51

• Add $.65 per hour for all shifts other than 1 st

Systems Technician

Effective Date

Start

90 Calendar

Days

180 Calendar

Days

365 Calendar

Days

Current

$20.20

$20.70

$21.00

$21.37

2013 - 1st Pay Period after ratification

$0.50 increase upon ratification

$20.70

$21.20

$21.50

$21.87

2014 - 3rd Pay Period in July

$650 Lump sum

$20.70

$21.20

$21.50

$21.87

2015 — 3rd Pay Period in July

$0.50 increase per hour

$21.20

$21.70

$22.00

$22.37

2016 - 3rd Pay Period in July

$650 Lump Sum

$21.20

$21.70

$22.00

$22.37

2017 - 3rd Pay Period in July

$0.50 increase per hour

$21.70

$22.20

$22.50

$22.87

2018 - 3rd Pay Period in July

$0.45 increase per hour

$22.15

$22.65

$22.95

$23.32

• Add $.65 per hour for all shifts other than 1 st

Letter of Understanding

Janitorial, Bus Washers and Bus Drivers

The Company agrees, upon ratification of this Agreement, to include the facility's Janitors, Bus Washers and Bus Drivers in the Bargaining Unit. These employees will be compensated according to the following schedule:

As soon as practicable after ratification 2013

$12.00/hr.

3rd pay period July 2014

$12.50/hr.

3rd pay period July 2015

$13.00/hr.

3rd pay period July 2016

$13.50/hr.

3rd pay period July 2017

$14.00/hr.

3rd pay period July 2018

$14.50/hr.

The Union and the Company understand that these employees will not be eligible for any base wage improvements and/or lump sum payments, included elsewhere in this Agreement. The Company agrees that the Janitors, Bus Washers and Bus Drivers will pay 66.66% of the regular hourly employee cost of the health care premiums.

The Union and the Company understand that any employee who would bump into the above mentioned positions will do so with full understanding that they will assume the wage structure as outlined within this Letter of Understanding for any of those positions.

 

Appendix B

PART I

DISABILITY BENEFITS (the "Plan") FOR HOURLY EMPLOYEES

ARTICLE I

 

WEEKLY DISABILITY BENEFITS (also known as Short-Term Disability)

Section 1 - Effective Dates and Plan Overview

The effective date of the Plan shall be October 18, 2013.

IC Bus of Oklahoma, LLC's Disability Income Plan (the "Plan") is designed to provide a source of income during times when an employee is unable to work due to a qualifying absence. The Plan applies exclusively to active regular full-time employees represented by UAW Local 5010 working at IC Bus of Oklahoma, LLC.

The Plan is sponsored by Navistar Inc. (the "Company'). Navistar Inc. reserves the right to amend or terminate the Plan at any time. While Navistar Inc. currently provides short-term and long-term disability benefits under the Plan to eligible employees, nothing in the Plan creates a vested right to such benefits. Navistar Inc. may suspend, terminate, reduce, amend, or modify the benefits provided to any participant under the Plan at any time, without prior notice. Navistar Inc., as the Plan Administrator, and each of its authorized delegates shall have discretionary authority to determine eligibility for benefits under the Plan and to construe the terms of the Plan. Benefits under this Plan will be paid only if the Plan Administrator (or its authorized delegate) decides in its sole discretion that the applicant is entitled to them.

Coverage under the Plan begins on an employee's first day as an active regular full-time employee. The Plan provides short-term disability benefits, which replaces an employee's base hourly wage at the time he or she becomes disabled for a period of time.

After an employee has exhausted his or her short-term disability benefits, the Plan offers long-term disability benefits. Such long-term disability benefits replace a portion of an employee's base salary for a period of time. Long-term disability benefits will generally continue until an employee recovers from his or her disability; however, such benefits may be discontinued as of an earlier date based on the terms and conditions of the Plan.

Section 2 - Weekly Disability Benefits Qualifications for Benefits

Active regular full-time employees represented by UAW Local 5010 working at IC Bus of Oklahoma, LLC are eligible to receive short-term disability benefits if the following conditions are met, subject to the limitations and exclusions provided below.

If an employee is totally disabled because of pregnancy, illness or accidental injury and his or her condition, as determined by the Plan Administrator, prevents he or she from working for pay or profit for any duration of time at any job or occupation within the Company for which he or she is reasonably suited, he or she may be eligible for short-term disability benefits. For purposes of the Plan, an accidental injury is defined as an unforeseeable, unintended, and unplanned event or circumstance causing physical or mental injury.

Short-term disability benefits are not payable for weeks in which an employee receives vacation pay. Weeks in which an employee receives vacation pay count against the duration of his or her short-term disability payment period. Subject to other terms and conditions of the Plan, employees cannot receive vacation and disability benefits for a period that would exceed 26 weeks.

If an employee is eligible, short-term disability benefits will begin after the seventh consecutive calendar day of a qualifying absence under terms of the Plan, except such benefits may be payable from the first day if he or she is hospitalized as an inpatient and under the regular care of a physician. Benefits may also be payable following seven nonconsecutive calendar days if the absences are related to the same condition.

Weekly Benefit

60 percent of base hourly wage as defined below to a maximum of $400.00 per week. "Base hourly wage" means an employee's base hourly wage not counting overtime, premium pay, sales incentives, profit sharing payments, bonuses, or other special compensation.

Following the applicable waiting period as written above, short-term disability benefits are payable for a maximum of 6 weeks following the date the employee delivers a child (8 weeks if delivered by Caesarian section) if the employee is otherwise eligible under the terms of the Plan, but does not pay beyond that unless the employee qualifies for additional short-term disability benefits based on the terms of the Plan.

Maximum Benefit Period

Subject to other terms and conditions of the Plan, short term disability benefits are payable for a maximum of 26 weeks.

Filing a Claim

To file a claim for disability benefits under the Plan, an employee must comply with all of the following steps:

   The employee must notify both his or her supervisor and disability claims manager of his or her absence immediately after the occurrence or commencement of any disability and, if the employee is having a planned medical treatment that will require time away from work, he or she must notify both his or her supervisor and disability claims manager in advance of such planned absence from work,  The employee will be provided an Employee Statement of Claim for Disability and Attending Physicians Statement, which must be correctly completed by both he or she and his or her physician and submitted to his or her disability claims manager within two weeks of the day he or she receives it. Satisfactory proof of disability must be provided to the Company's Medical and claim handling staff within 45 days of the commencement of his or her disability, and

   The employee must promptly respond to all requests for information from the Company's Medical or claim handling staff. It is the employee's responsibility to keep his or her disability claims manager up-to-date regarding his or her condition and treatment plan and to inform his or her supervisor of his or her work status.

A decision regarding the employee's eligibility to receive disability benefits will be made within 45 days by the disability claims manager assigned to his or her facility, unless special circumstances require an extension of time for processing.

If an employee's claim for disability benefits under the Plan is approved, he or she may subsequently be asked by the Plan Administrator from time to time to verify his or her disability. This may include an examination by a physician appointed by the Company.

Excluded Disabilities and Losses

Employees cannot receive short-term disability benefits under the Plan:

During a period while he or she is not under the regular care of a physician or, in the case of a disability related to a "mental illness" (as defined in the Plan), a psychiatrist or PhD level psychologist,

"Regular care" means:

  1. The employee personally visits a physician as is medically required, according to generally accepted medical standards, to effectively manage and treat his or her disabling condition(s), and
  2. The employee is receiving the most appropriate treatment and care, which conforms to generally accepted medical standards, for his or her disabling condition(s) by a physician whose specialty and experience is the most appropriate for his or her disabling condition(s).

For any disability related to a mental illness (as defined in the Plan), an employee must be under the regular care of a psychiatrist or PhD level psychologist within two weeks of an initial visit to a physician to be eligible for benefits under the Plan.

For purposes of the Plan, the term "physician" means:

  1. A person who is performing tasks that are within his or her medical license, and
  2. Is licensed to practice medicine and prescribe and administer drugs or to perform surgery.

The employee, his or her spouse, or any of the employee's or his or her spouse's relatives, including, but not limited to a child, brother, sister, or parent, will not be recognized as a physician, psychiatrist, or PhD level psychologist for any claim an employee submits under the Plan.

During a period while the employee is receiving any treatment that is not "medically necessary/' or for any disability where the contributing cause resulted while the employee was receiving any treatment that was not "medically necessary," as determined by the Plan Administrator,

For purposes of the Plan, treatment will be deemed "medically necessary" only if all of the following criteria are met:

  The treatment is for the diagnosis or treatment of an illness or injury or to improve the functioning of a malformed body member and not for the restoration or reconstruction of body structures directed toward altering or aesthetically enhancing one's physical appearance,

  The treatment is rendered, ordered or prescribed by a physician,

  The treatment is effective in that a reasonable physician would conclude that:  A sufficient body of scientific peer reviewed literature exists to demonstrate that a substantial medical benefit would be expected from using the treatment for the condition for which it is being rendered, ordered, or prescribed, or

  The treatment for the condition for which it is being rendered, ordered, or prescribed is consistent with an existing national standard of care, as established by consensus of a United States governmental agency or national college or association of specialists in the generally recognized health specialty involved;

  The treatment is individualized whereby a reasonable physician would predict the treatment would provide demonstrable medical benefit to the individual for whom the treatment is being rendered, ordered, or prescribed, given the current status of that individual, and

  The treatment is consistent with efficiency and quality of care in that:

  It is the only effective treatment for the condition for which it is being prescribed, or

  It is the alternative among two or more effective quality treatments that a reasonable physician would predict would produce a substantially more beneficial medical outcome, given the condition for which it is being rendered, ordered, or prescribed given the current status of that individual.

If the employee does not cooperate with the Company's medical or claim handling staff in providing timely and satisfactory evidence of his or her inability to work, during days the employee receives unemployment insurance benefits,

During a period of disciplinary suspension,

For days the employee receives vacation pay or any other compensation from the Company,

For any period of time the employee is working for pay or profit at any other employment,

For disabilities resulting from self-inflicted injuries,

For any disability where a contributing cause was the employee's commission of any illegal act,

For any disability caused by, contributed to, or resulting from a pre-existing condition. For purposes of the Plan, a "pre-existing condition" means a physical or mental condition, whether or not diagnosed or misdiagnosed, which was discovered or suspected at any routine or other medical examination during the 12-month period before the employee's effective date of hire, or for which he or she (or a reasonably prudent person would have) consulted a physician or other licensed medical professional, received medical treatment, services, or advice, undergone diagnostic procedures, including self-administered procedures, or taken prescribed drugs or medications at any time during the 12-month period before his or her effective date of hire.

For any disability occurring either while the employee served in the armed forces or while working for pay or profit at any other employment,

For a disability due to war, declared or undeclared, or any act of war or terrorism,

For any injury or illness deemed compensable under applicable workers' compensation laws or alleged by the employee to have been in the course and scope of employment, for treatment of alcoholism or drug dependency, unless the employee is participating in an intensive outpatient program (IOP) or higher standard of care, in which case the maximum period of short term disability under the Plan shall be a total of 28 treatment days during the employee's lifetime. An IOP is a freestanding or hospital-based program that encompasses greater than four hours per day participation, for a minimum of 20 hours per week. IOP's must be used to treat Substance-Use Disorders or can specialize in the treatment of co-occurring Substance Use Disorders and mental health conditions, or

For disabilities covered under any other disability plan.

The time during which an employee's short-term disability benefits would otherwise have been payable to you under the terms of the Plan, but are suspended or offset (wholly or partially) due to one or more of the preceding exclusions, is still counted toward the maximum period of short-term disability benefits under the Plan.

 

ARTICLE Il

LONG TERM DISABILITY BENEFITS

Qualifications for Benefits

Active regular full-time employees represented by UAW Local 5010 working at IC Bus of Oklahoma, LLC are eligible to receive long-term disability benefits if the following conditions are met, subject to the limitations and exclusions provided below.

Employees with less than one year of Company service at the time they become disabled from work are not eligible for LTD benefits under the Plan.

If an employee is totally disabled because of pregnancy, illness or accidental injury as defined in the Plan and his or her condition, as determined by the Plan Administrator, prevents he or she from working for pay or profit at any job or occupation for which he or she is reasonably suited, not just within the Company, he or she may be eligible for long term disability (LTD) benefits under the Plan. LTD benefits begin on the first day after an employee has exhausted his or her short-term disability benefits under the Plan.

Amount of Benefits

60 percent of the employee's base hourly wage (as defined in the Plan) to a maximum of $2,500 monthly, subject to any suspension or offset otherwise required under the Plan. Long-term disability benefits will generally continue until the employee recovers from his or her disability, unless such payments cease earlier based on the terms of the Plan (as described below).

Maximum Benefit Period

Subject to other terms and conditions of the Plan, long term disability benefits are payable for a maximum of 15 years minus the 26 weeks an employee previously received short term disability benefits under the Plan.

If the employee is unable to care for his or her own affairs, the Company may pay the benefit to someone appointed by a court to handle his or her affairs.

Excluded Disabilities and Losses

Employees cannot receive long-term disability benefits:

During a period while he or she is not under the regular care of a physician or, in the case of a disability related to a mental illness, a psychiatrist or PhD level psychologist (as defined in the Plan),

During a period while the employee is receiving any treatment that is not "medically necessary' or for any disability where the contributing cause resulted while he or she was receiving any treatment that was not "medically necessary," as determined by the Plan Administrator (see definition of "medically necessary/' above),

If the employee does not cooperate with the Company's medical or claim handling staff in providing timely and satisfactory evidence of his or her inability to work, during days the employee receives unemployment insurance benefits,

During a period of disciplinary suspension,

For days the employee receives vacation pay or any other compensation from the

Company,

For disabilities resulting from self-inflicted injuries,

For any disability where a contributing cause was the employee's commission of any illegal act,

For any disability caused by, contributed to, or resulting from a pre-existing condition (see definition of "pre-existing condition" above).

For any disability occurring either while the employee served in the armed forces or while working for pay or profit at any other employment,

For a disability due to war, declared or undeclared, or any act of war or terrorism,

With regard to any disability that occurs on or before age 60, any time after the employee attains age 65,

With regard to any disability that occurs after age 60, for more than five years after the employee became disabled,

For any injury or illness deemed compensable under applicable Workers' Compensation laws or alleged by the employee to have been in the course and scope of employment, For treatment of alcoholism or drug dependency, or

For disabilities covered under any other disability plan.

The time during which an employee's LTD benefits would otherwise have been payable to him or her under the terms of the Plan, but are suspended or offset (wholly or partially) due to one or more of the preceding exclusions, is still counted toward the maximum period of LTD benefits under the Plan.

General Plan Provisions Physical Examinations

The disability claims manager may consult with and rely upon the opinion of third parties, such as a health care professional who has appropriate training and experience in the field of medicine, in determining whether an employee is eligible to receive disability benefits under the plan. The disability claims manager is permitted to credit the opinion of the Company's appointed physician or other expert, or other reliable evidence, over the opinion of the employee's treating physician if it is reasonable to do so based on the facts presented in the claim.

Coordination with Certain Other Benefits

Disability benefits under the Plan (including short-term and long-term disability benefits) are suspended or offset (wholly or partially) by other sources of income. An employee must notify his or her disability claims manager within thirty (30) days to verify any benefits or changes in benefits he or she is receiving from such other sources.

The time during which an employee's Plan benefits are suspended or offset (wholly or partially) by such other sources is still counted toward the maximum period of Plan benefits.

Disability benefits under the Plan will be offset by other sources of income, including but not limited to the following other sources of income:

   Disability benefits (including any future adjustments) provided either through a plan financed by another employer, under State or Federal law, including dependent's benefits under a State disability plan, or otherwise,

   Social Security disability, old age benefits, or dependent benefits the employee is eligible to receive. The offset will be based on the initial amount of the award and may be adjusted for any increase from Social Security.

   LTD payments will be offset by an estimated Social Security benefit amount unless the employee is denied Social Security benefits and provide the Plan Administrator with a copy of the denial,

   Other income from the Company, and

   The amount the employee receives or is eligible to receive from a Company defined benefit pension plan, including any future adjustments.

Employees will be asked from time to time to verify any benefits or changes in benefits he or she is receiving from these sources.

If an employee qualifies for long-term disability benefits under the Plan, he or she must also show evidence of his or her application for these benefits, even if they are denied, before full long-term disability benefits can be paid.

Sources of income that do not affect disability benefits under the Plan include:  The amount the employee receives or is eligible to receive from a Company 401 (k) plan,

   The amount the employee receives or is eligible to receive from individually purchased life or health insurance policies, or

   The amount an employee receives or is eligible to receive from a veteran's disability pension, if it is based on a disability that began before his or her coverage under this Plan took effect.

Recurrent Disability

If the employee has a "recurrent disability," as determined by the Plan Administrator, his or her disability will be considered part of his or her prior disability claim under the Plan if:  He or she did not incur a break in employment, and

 The employee's most recent disability occurs within six months of the end of his or her prior disability claim under the Plan.

"Recurrent disability/' means a disability that is caused by a worsening in the employee's condition and due to the same cause(s) as his or her prior disability for which he or she were originally covered by the Plan.

Concurrent Disability

If a new disabling condition occurs while benefits are payable for an existing disability claim under this Plan, it will be treated as part of the same period of disability as the original claim. Benefits will continue while the employee remains disabled and will be subject to both of the following:

  The Maximum Benefit Duration from the original date of disability; and

  All limitations, exclusions and other Plan terms and conditions that apply to the new cause of disability.

In no event will the new disabling condition extend the duration of short term disability benefits for a period beyond 26 weeks from the date of the occurrence of the original disabling condition.

Certain Disabilities Have a Limited Maximum Pay Period

Disabilities due to a sickness or injury which, as determined by the Plan Administrator, are primarily based on "self-reported symptoms" or "mental illness," as defined below, have a maximum pay period of 24 total months during an employee's lifetime.

Self-Reported Symptoms

For purposes of the Plan, "self-reported symptoms" mean the manifestations of an employee's condition, which he or she tells his or her physician, but are not verifiable using tests, procedures, and clinical examinations generally accepted in the practice of medicine by an existing national standard of care, as established by consensus of a United States governmental agency or national college or association of specialists in the generally recognized heath specialty involved. Examples of self-reported symptoms include, but are not limited to, headache, pain, fatigue, stiffness, soreness, ringing in ears, dizziness, numbness, and loss of energy.

Mental Illness

For purposes of the Plan, "mental illness" means psychiatric or psychological condition regardless of cause. Mental illness includes, but is not limited to, schizophrenia, depression, manic depressive or bipolar illness, obsessive-compulsive or anxiety disorders. These conditions are treated by a psychiatrist or clinical psychologist using psychotherapy, psychotropic drugs, consistent with an existing national standard of care, as established by consensus of a United States governmental agency or national college or association of specialists in the generally recognized heath specialty involved.

Mental illness does not include irreversible dementia resulting from stroke, trauma, viral infection or Alzheimer's disease.

Other Disability Benefits You May Be Entitled to Receive

In addition to Company-provided disability benefits, an employee may be eligible for disability benefits from Social Security.

Social Security disability benefits can begin after an employee has been disabled for a specified period of time. The disability benefits an employee and his or her family receive are generally the same benefits he or she would be eligible for if he or she retired at age 65. For more information, contact the nearest Social Security Administration office.

Allsup, Inc. is an independent specialized Social Security disability claims adviser whose services are paid for by the Company to assist employees in applying for Social Security disability benefits. An employee may contact his or her disability claims manager for a referral.

Family Medical Leave Act

Periods of absence approved under this Plan and taken for reason(s) that also qualify for leave under the Company's FMLA Policy will be counted against any available FMLA leave entitlement.

Overpayments and Other Administrative Errors

If a benefit is paid to an employee under the Plan that is larger than the amount allowed by the Plan, the Plan has a right to recover such excess amount. Erroneous benefit statements will neither change the rights or obligations under the terms of the Plan nor operate to grant any additional benefit or coverage that is not otherwise provided under the terms of the Plan.

If an employee is paid wages by the Company during a period of time when he or she was also receiving short-term disability benefits under the Plan and not working, then the amount of any overpaid wages will reduce the employee's total short-term disability payment amount to prevent a double payment to the employee.

Recovery of Benefits Paid

As a condition to payment of benefits under the Plan for expenses incurred by the employee due to injury or illness for which a third party may be liable:

The employee agrees that the Plan shall, to the extent benefits have been paid to him or her or on his or her behalf, be subrogated to (has the right to pursue) all of the employee's rights of recovery against such third party or his or her own insurance carrier, including, but not limited to, in the event of a claim under the uninsured or underinsured automobile coverage provision of the employee's automobile insurance policy.

The employee agrees that the Plan shall, to the extent of benefits have been paid to him or her on his or her behalf, have the additional right to reimbursement from the employee of all recoveries from such third party or the employee's own insurance carrier (whether by lawsuit, settlement, or otherwise).

The employee (or person authorized by law to represent the employee if he or she is legally incapable) agree to promptly advise the Plan Administrator whenever a claim is made against a third party or the employee's own insurance carrier, execute and deliver any documents (including, but not limited to, assignments or liens) requested by the Plan Administrator, and to cooperate with the Plan Administrator, as necessary, in order to secure its right to subrogation and reimbursement.

The Plan may withhold (or reduce) benefits if the employee does not fully comply with the subrogation and reimbursement provisions of this section or if he or she fails to return any benefit payments paid to him or her in error.

The Plan's right to subrogation, reimbursement, and reduction is not subject to the employee's first being made whole, that is, the "make whole" rule (or such other similar rule) shall not apply to the Plan. In addition, the Plan's right to subrogation, reimbursement, and reduction is not subject to the common fund doctrine (or such other similar rule).

Denied Claims and Appeal Process

If a claim is wholly or partially denied, the employee will receive notice of the decision within 45 days after receipt of his or her claim, unless special circumstances require an extension of time for processing. In this case, a decision will be given as soon as possible, but not later than 30 days after the expiration of the initial 45-day period, and the employee will be notified in advance of the expiration of the initial 45-day period of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision. If, prior to the end of the first 30-day extension period, the Plan Administrator determines that due to matters beyond the control of the Plan, a decision cannot be rendered within that extension period, an additional 30-day extension may be required. In this case, the employee will be notified in advance of the expiration of the first 30-day extension period of the circumstances requiring the extension and the date as of which the Plan expects to render a decision.

If an employee's claim is denied, the notice of decision will be in writing and will set forth:

The specific reason or reasons for the denial,

Specific reference to pertinent Plan provisions on which the denial is based,

A description of any additional material or information necessary for the employee to perfect his or her claim and an explanation of why such material or information is necessary,

An explanation of the Plan's claim review procedure and the time limits applicable to such procedures, including a statement of the employee's right to bring a civil action under Section 502(a) of the Employee Retirement Income Security Act (the federal law commonly referred to as "ERISA") following an adverse benefit determination on appeal, If applicable, any internal rule, guideline, protocol, or other similar criterion relied upon in making the denial, or a statement that such rule, guideline, protocol, or other similar criterion was relied upon in making the denial and that a copy of it will be provided to the employee free of charge upon request, and

If the claim denial was based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, or a statement that such explanation will be provided to the employee free of charge upon request.

In the event of such an appeal for review, the employee or his or her authorized representative:

   May review documents, records, and other information relevant to the employee's claim for benefits, and

   May submit written comments, documents, records, and other information relating to his or her claim for benefits.

A decision on review shall be made promptly, but not later than 45 days after receipt of the appeal, unless special circumstances require an extension of time for processing. In this case, a decision will be given as soon as possible, but not later than 45 days after the expiration of the initial 45-day period, and the employee will be notified in advance of the expiration of the initial 45-day period of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision on appeal. If the appeal is denied, the notice of decision will be in writing and will set forth:

The specific reason or reasons for the denial,

Specific reference to pertinent Plan provisions on which the denial is based,

A statement that the employee is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his or her claim for benefits (as determined under ERISA),

If applicable, any internal rule, guideline, protocol, or other similar criterion relied upon in making the denial, or a statement that such rule, guideline, protocol, or other similar criterion was relied upon in making the denial and that a copy of it will be provided to the employee free of charge upon request,

If the appeal denial was based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, or a statement that such explanation will be provided to the employee free of charge upon request, and

A statement of the employee's right to bring an action under Section 502(a) of ERISA. The Plan shall be administered and construed, and claims for benefits shall be decided, according to the laws of the State of Illinois, except to the extent superseded by ERISA or any other federal law. The situs of the Plan is in DuPage County, Illinois. Legal actions must be brought in the United States District Court for the Northern District of Illinois.

Appendix C

Health Care Benefits

PART Il

HOSPITAL, SURGICAL, MEDICAL, DRUG, DENTAL

& VISION CARE BENEFITS

ARTICLE I

EFFECTIVE DATES

The benefits provided by this Part Il shall be payable with respect to services rendered on or after October 18, 2013 unless specifically noted to employees or their dependents. Benefits for services rendered prior to the date the employee acquired coverage provided by this Part Il, shall be paid under the applicable provisions of the health plan in effect for this purpose.

 

ARTICLE Il

HOSPITAL, SURGICAL, MEDICAL, DRUG, & VISION CARE BENEFITS

Effective October 18, 2013 all full time employees that have fulfilled the required waiting periods shall be eligible to enroll in the Standard health care option available to the Company’s active salaried population in Tulsa as set forth in the Health Plan for active Non-Represented employees (SPD# HW-381) along with any Summary Material Modifications specific to the INTERNATIONAL UNION, UNITED AUTOMOBILE,

 

October 18, 2013 - December 31, 2013 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$17.31

$32.59

$45.75

 

January 1, 2014 - December 31 , 2014 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$16.31

$30.59

$45.75

 

January 1, 2015 — December 31 , 2015 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$17.18

$32.22

$45.04

 

January 1, 2016 — December 31 , 2016 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$18.63

$34.96

$48.88

January 1, 2017 - December 31, 2017 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$20.20

$37.91

$53.03

 

January 1, 2018 - December 31, 2018 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$21.90

$41.11

$57.51

 

AEROSPACE & AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, UAW Local 5010, at the Tulsa plant. Employees will contribute towards the cost of health insurance coverage as follows:

 

ARTICLE Ill

DENTAL BENEFITS

Effective October 18, 2013, all full time employees that have fulfilled the required waiting periods shall be eligible to enroll in the dental plan available to the Company's active salaried population in Tulsa as set forth in the Health Plan for active Non-Represented employees (SPD# HW-381 ) along with any Summary Material Modifications specific to the INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE & AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, Local 5010, at the Tulsa plant. Employees will contribute towards the cost of health insurance coverage as follows:

 

October 18, 2013 - December 31, 2013 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$0.00

$0.00

$0.00

 

January 1, 2014 — December 31, 2014 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$1.00

$2.00

$3.00

 

January 1, 2015 — December 31, 2015 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$1.00

$2.00

$3.00

 

January 1, 2016 — December 31, 2016 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$1.00

$2.00

$3.00

January 1, 2017 — December 31, 2017 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$1.00

$2.00

$3.00

 

January 1, 2018 — December 31, 2018 Weekly Premiums

 

 

Employee

Employee + 1

Family

 

Standard Plan

$1.00

$2.00

$3.00

 

PART Ill

GROUP LIFE INSURANCE PROGRAM

ARTICLE I

EFFECTIVE DATES

The benefits provided by this Part Il shall be payable with respect to services rendered on or after October 18, 2013 unless specifically noted to employees or their dependents. Benefits for services rendered prior to the date the employee acquired coverage provided by this Part Il, shall be paid under the applicable provisions of the life insurance plan in effect for this purpose.

 

ARTICLE Il

LIFE INSURANCE BENEFITS

The amount of life insurance for employees who become covered under this Part IV shall be as follows:

Company-provided Life Insurance: $20,000.

Coverage begins on the date of commencement of employment with IC Bus of Oklahoma, LLC.

Coverage ends on the last date of employment with IC Bus of Oklahoma, LLC.

All other details surrounding the program (continuation, portability, how to file a claim, etc.) will be outlined in the insurance certificate as distributed by the insurance company.

 

ARTICLE Ill

ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS

Company-provided Accidental Death & Dismemberment (AD&D) Insurance: $20,000. Coverage begins on the date of commencement of employment with IC Bus of Oklahoma, LLC.

Coverage ends on the last date of employment with IC Bus of Oklahoma, LLC.

All other details surrounding the program (continuation, portability, how to file a claim, etc.) will be outlined in the insurance certificate as distributed by the insurance company.

PART IV

GENERAL PROVISIONS RELATING TO PARTS I THROUGH Ill

ARTICLE I

DEFINITIONS

Wherever the following terms are used in Parts I through IV they shall have the following meaning unless specifically defined otherwise in any respective part or section of this agreement.

1. The term "Base Hourly Rate" shall include only earnings for hours worked, or hours compensated in the case of salaried employees, and shall exclude overtime, premium pay, night shift bonus, and cost-of-living allowance and shall be determined as follows: a. As to an employee who is classified as a salaried employee, Base Hourly Rate shall, as of any given time, be the hourly equivalent of the employee's base weekly salary.

  1. As to an employee who is classified as a day work or piecework employee, the Base Hourly Rate shall be the average of his regular rate of pay as computed for overtime pay purposes, but excluding night shift bonus and cost-of-living allowance, for the first four of the last six pay periods which include and precede the date as of which "Base Hourly Rate" is being computed. In the event the employee has not worked the number of hours equivalent to his regularly scheduled workweek during such period, his previously determined "Base Hourly Rate" shall not be changed.
  2. If the initial determination of "Base Hourly Rate" cannot be made in accordance with this procedure, any earnings during the first four of the last full six pay periods immediately preceding the date "Base Hourly Rate" is being determined will be used.
  3. Where the normal straight time work schedule exceeds 40 hours per week, the base hourly rate used in the determination of benefit classes for both the Disability Benefit Plan and Term Life Insurance Plan shall be computed by dividing the employee's basic weekly earnings payable for his normal schedule of hours, exclusive of overtime, premium pay, night shift bonus, and cost-of-living allowance, by 40 hours.
    1. The term "Full-time Employee" means any employee who is employed to work a normal and regular schedule of hours whether or not temporarily working on a part time basis.
    2. The term "Part-time Employee" means any employee hired to work less than the normal and regular schedule of hours worked by regular full-time employees.
    3. The term "Temporary Employee" means an employee hired for a short period of time to perform a specified service for the Company, with the understanding that his services with the Company will terminate when such services have been completed.
    4. The term 'Workers' Compensation Law," in addition to any law bearing such designation, also means any occupational diseases act, or any similar employer's liability law, federal or state.
    5. "Mental Illness" means only those mental, psycho-neurotic and personality disorders listed in the International Classification of Diseases of the IJ.S. Department of Health, and Human Services (V. #300-329), as amended.
    6. "Psychologist'
      1. for purposes of psychological testing means a person who is licensed to render psychological testing services under state law where applicable, or in other states is certified for psychological testing by an appropriate professional body, and who, in either case, is trained and experienced in the administration of psychological tests.
      2. for purposes of rendering services as a professional staff member of an Approved Psychiatric Facility means a person who is licensed by state law where applicable as a clinical psychologist, or in other states is certified as a clinical psychologist or a consulting psychologist by an appropriate professional body.

ARTICLE Il

ELIGIBILITY FOR COVERAGE

Section 1- Eligibility to Continue Under Amended Program

Each employee who was covered on the day before the effective date of this Program, and whose insurance covering benefits provided by Parts I through Ill under said Program would have been in force on the effective date of this Program had this Program not been adopted, shall become covered for the benefits under this Program on the effective date of this Agreement, unless other language governs for any respective Part or section of this agreement.

Section 2 - Eligible Employees

All full-time employees who meet the requirements of this Article are eligible for coverage under each Part, provided, however,

  1. Employees in any state which adopts or has adopted a non-conforming benefit law for which state no supplementary or substitute plan of benefits has been established will, except as otherwise provided herein, be ineligible for the Part or Parts providing benefits of the type provided by such law.
  2. Employees of any group or class whose members are eligible to receive benefits under any federal law and for whom no supplementary or substitute plan of benefits has been established will, except as otherwise provided herein, be ineligible for benefits under the Part or Parts providing benefits of the type provided by such law.

Section 3 - Required Information

In order to provide necessary information concerning beneficiary designations, dependents, and necessary authorization of payments and contributions, each covered employee must supply such information on forms supplied by the Company. In the event an employee has failed to supply the required information prior to the date a claim is incurred, no benefit will be paid.

Each present and future full-time employee will be required to file the required information. New employees will be required to file such information on or before the first day of the month next following the month in which employment commences at which time coverage will commence, except as set forth below.

For a newly hired employee, coverage under Part I and Part Ill will commence as of the first day of employment. Coverage under Part Il will commence as of the first day of the second month following the month in which employment with the Company commences subsequent to his or her most recent date of hire. If the employee is not at work on the date coverage is to become effective, such coverage will become effective on the date he returns to active work.

Section 4 - Effective Dates of Insurance

a. If an employee is not actively at work on the effective date of the contract, then the effective date of coverage of Parts l, Il and Ill will be determined as follows, except that:

(i)    If the employee's absence from work is due to a scheduled vacation, holiday, or day of paid absence, his/her insurance becomes effective on the effective date of the contract.

(ii)   The effective date for employees on continuous operations will be the first day on or after the effective date such employee is at work.

(iii)  The increased benefit amount will be dependent on the requirements for the employee's Base Hourly Rate as defined in Article I or Article Il, Section 5 of this Part IV.

b. A leave of absence existing on the applicable effective date of this Insurance Program (i) for an employee working with a local or the International Union, or (ii) for an employee on training duty for not in excess of two calendar weeks for the purpose of maintaining his active reserve status, will not operate to defer the effective date of any coverage for such an employee under this Insurance Program. c. All employees who are covered or receiving or entitled to benefits, or having rights under the coverages in effect prior to the applicable effective date of this Insurance Program, who are not eligible to become covered thereby on the applicable effective date of this Insurance Program, shall retain such status, benefits, or rights in accordance with the conditions, provisions, and limitations of such coverages so long as they remain ineligible to become covered by this Insurance Program.

Section 5 - Changes in Amount of Insurance

Amounts of disability benefits and group life insurance shall be determined on the effective date of the 2013 Health-Security Program Agreement.

Section 6 - No Duplication of Coverage

Anything to the contrary notwithstanding, if an individual is employed in one or more capacities, he shall not be eligible for multiple coverage under this Agreement but shall be treated the same as if he were employed in a single capacity; the amount of insurance for which any such individual shall be eligible shall, under no circumstances, exceed the amount which would apply if he were employed in a single capacity.

Section 7 - Integration with Applicable Laws

  1. In the event that any state has a law which now or hereafter may provide benefits of the same general type as provided by Parts l, Il or Ill for covered employees or their dependents, compliance by the Company with such laws shall be deemed full compliance with the provisions of such Part or Parts of this Program with respect

to covered persons in such states and such Part or Parts shall not be applicable in such state.

  1. The provisions of Sub-section (a) above to the contrary notwithstanding, the Company may in any state wherein the substitution of a private plan is authorized by the law of such state modify the provisions of this Agreement to the extent and in the respects necessary to secure the approval of the appropriate state governing body to substitute the applicable Part provided in this Agreement in lieu of any plan provided by state law, and upon such modification and approval as a qualified plan, the Company may make the modified plan available to its employees in such state or states.
  2. The provisions of any Parts I through Ill shall not be applicable to employees or their dependents who are or may become eligible for benefits of the same general type as provided under such Part of this Program under any federal law providing such benefits for the public at large. Compliance by the Company with such laws shall be deemed full compliance with the provisions of such Part or Parts with respect to persons eligible for benefits under such laws.
  3. The provisions of Sub-section (c) above to the contrary notwithstanding, the Company may, if federal law permits, Union modify the provisions of this Agreement to the extent and in the respects necessary to secure the approval of such substitution from the appropriate governmental authority. Upon obtaining such approval, the Company may make the modified plan available to its employees.
  4. Contributions at the applicable rate, when required, shall commence at the end of the calendar month in which coverage at active employee premium rates ceases. In each instance in which a contribution is required, payment shall be made weekly in advance, provided that any such employee or other person required to contribute at his option may make payments in advance for longer periods. In the event insurance has been continued during an absence from work and the Company has advanced contributions, upon return to work contributions sufficient to place the employee on a one week in advance basis will be collected at a rate not to exceed two contributions per week. In cases in which continuity of employment with the Company is broken, advance contributions as to any periods thereafter shall be returned to the person whose service is broken. Where a pro-ration of contributions is necessary, the pro-ration shall be based upon one-seventh (117) for each day involved.
  5. An employee who desires to continue coverage must elect whether the insurance for which he is covered under this Program is to be continued on a contributory basis for the period permitted under this Program. Such election must be made on the form provided by the Company to the employee for this purpose. If this form is not signed by the employee and returned to the Company's designated representative before the expiration of the period for which the employee is currently insured, his insurance coverage shall terminate upon the expiration of such period. The election form will indicate the date the employee will be obligated to make payment for the insurance he or she elects to continue and will permit him or her to authorize deduction of additional advance contributions for any or all of the permitted period from any pay then due to him or her from the Company. Grace periods of 31 days shall continue to be permitted for payment of contributions.
  6.  

Section 8 - Payment of Contributions

ARTICLE Ill

TERMINATION OF AN EMPLOYEE'S COVERAGE

Section 1 - Military or Peace Corps or Similar Service

Coverage shall not continue during leave of absence for military service, Peace Corps or similar government service of any country.

Section 2 - Separation Pay

If an employee is granted a separation payment under any labor contract or Company policy, coverage shall terminate on the date of the separation payment, unless terminated at an earlier date under another section of this Article.

Section 3 - Disputed Termination, Suspension or Disability

If an employee loses seniority under the applicable labor contract or fails to return from disability as required, all insurance will terminate the last day worked or on the day the failure to report occurs; except that if a discharged or suspended employee has a grievance pending contesting his loss of seniority or suspension, as the case may be, or an employee who has not returned from disability is contesting the termination of his disability through the disputed claims procedure, coverage under Part Il will be continued for one month following the month in which the termination occurred, and coverage under Part Ill will be continued to the end of the month the termination occurred. Thereafter, the employee will be entitled to continue coverage as follows:

  1. for coverage under Part Il, the full premium charge and,
  2. for coverage under Part IV, contributions shall be at the contracted rate of group life insurance in force between the Company and the insurance company.

In the event the grievance or disability dispute is resolved by the restoration of seniority, cancellation of the suspension or extension of disability, as the case may be, the contributions paid by the employee will be refunded.

Section 4 - Labor Disputes

The insurance for an employee absent from work because of a work stoppage resulting from a labor dispute will terminate immediately.

An employee so absent from work will be eligible to continue his or her health insurance coverage through COBRA and life insurance through portability.

Section 5 - Failure to Make Contributions

If an employee fails to make payment of a required contribution for any month for which such contribution is required, his coverage will cease at the end of the month preceding the month for which the required contribution was due.

ARTICLE IV

ELIGIBILITY FOR COVERAGE FOLLOWING THE TERMINATION THEREOF

Section 1 - Requirements Prior to New Application for Coverage

If an employee's coverage under any Part has terminated, he or she may again become covered on the same basis as a new employee. However, employees in the following categories will be entitled to coverage under each Part for which he or she was insured at time of separation, on the date of return to active work:

  1. an employee who was discharged, terminated due to failure to report, or due to payment of separation pay, who is reinstated by the Company to employment, and under circumstances where his or her service with the Company is treated as being uninterrupted for the purposes of rights such as seniority, vacations, and similar rights, will be eligible for coverage immediately upon return to work.
  2. an employee whose coverage has been terminated by layoff or leave of absence will be eligible for coverage immediately upon return to work, provided, in the case of layoff, he or she returns to work within three (3) years or a period equal to the employee's length of service, whichever is longer, and, in the case of leave of absence, he or she returns to work within one year following the month in which leave of absence commenced.

Section 2 - Return from Military or Peace Corps or Similar Service

Employees who leave their employment to enter the military or Peace Corps or similar service of any government and who apply for re-employment within ninety days after termination of such government service, or within such additional time as may be provided by law, shall again become covered immediately upon return to work without evidence of insurability, if re-employed within one year of the date of such application for reemployment, provided the employee upon reemployment enrolls for such coverage.

 

ARTICLE V

CONTINUATION OF INSURANCE WHILE ABSENT FROM WORK

Section 1 - Leave of Absence

a. Initial Period of Continuation

If an employee is on leave of absence, all of his or her insurance coverages will be continued at active employee premium rates by him or her through the end of the month in which he or she ceased active employment, unless.

b. Coverage after Initial Period of Continuation - Union and Government Leaves

In the case of an employee who is on leave of absence (1 ) requested by his or her Local Union to permit him or her to work on a full-time basis for the Local Union, or (2) granted by the Company to permit an employee to fill an elected governmental position, coverage under Parts I through Ill may be continued so long as such leave or any extension thereof is operative provided such employee contributes, commencing with the first full month of leave of absence, (i) at the rate of 40 cents per month for each $10 of Weekly Disability Benefits, (ii) the current rate of the insurance company per $1 ,000 of group life insurance in force, and (iii) the continuation rate for Hospital, Surgical, Medical and Prescription Drug, Dental, Vision Care and Hearing Aid coverage.

In the case of an employee who is on leave of absence requested by his or her Local Union to permit him or her to work on a full-time basis for the International Union coverage may continue, until the date such leave or any extension thereof ceases to be operative, life, accidental death and dismemberment Insurance. For such insurance an employee shall contribute 60 cents per month per $1000 of life insurance.

c. Coverage after Initial Period of Continuation —Regular Leaves

An employee on leave of absence other than leaves requested by the Union or to fill an elected governmental position may continue his or her full coverage only under Parts Il and Ill for twelve months following the initial period of continuation by paying the contributions stated in (ii) and (iii) in (b) above.

d. Coverage after Initial Period of Continuation —Newborn Child Care/Clinically Anticipated Disability Leaves

In the case of an employee on leave of absence in anticipation of and for the care of a newborn child of the employee, or a clinically anticipated disability based on the natural course of the employee's diagnosed condition, coverage under Parts I through Ill may be continued following the initial period of continuation for the period of such leave by the employee paying the contributions stated in (ii) and (iii) in (b) above, provided that:

  1. If otherwise eligible under the terms and conditions of the Plan, weekly Disability Benefits will be payable at the commencement of a medically certified period of disability provided the employee continues to pay the appropriate life insurance premium during the period of the leave of absence.
  2. The Company will pay the premiums for coverage under Part Ill beginning with the first of the month following the month in which the employee becomes disabled.
  3. Health care coverage at active employee rates will continue until the end of the month in which the disability terminates. Weekly Disability Benefits will continue only for the actual period of disability.

Section 2 - Disability

a. Continuation of Coverage

The Company will continue all insurance coverage for an employee who becomes totally disabled while actively at work, or is unable to work because he has physical limitations which require him to be temporarily laid-off due to inability to perform available work, for the duration of such inability to work, up to a period equal to his months of seniority at the commencement of such disability, or 26 weeks, whichever is less. The employee will be required to pay all contributions required of active employees during this continuation period. It is understood that coverage is not a guarantee of eligibility for benefits under any respective part or section of this agreement. If the employee is receiving Long Term Disability Benefits after the expiration of the period specified above, coverage under Part Il and Part Ill will continue in effect each month for which he receives such benefits. If at the expiration of the periods specified above an employee is receiving payments because of employment with the Company under any Workers' Compensation Law or act or any occupational disease law or act, his life and accidental death and dismemberment insurance under Part Ill shall be continued for the period he continues to receive such payments. Employees who remain on a sick leave status beyond the period for which they are entitled to receive disability benefits will be eligible to continue coverage under Parts Il and Ill through COBRA and life insurance conversion respectively.

Section 3 - Laid-Off Employees

Laid-off employees will be eligible to continue coverage under Parts Il and Ill through COBRA and life insurance conversion respectively.

Section 4 - Special Continuation Provisions

Notwithstanding other continuation provisions of this Plan, the Plan shall be subject to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, as set forth in Appendix A. COBRA provides continuation rights to certain employees or dependents who would ordinarily lose eligibility for coverage under the health care plan rules.

The Company is responsible for providing notifications, as required under COBRA, to "qualified beneficiaries," as defined therein. The Company may delegate the administrative functions associated with COBRA.

To the extent the Company makes alternative continuation privileges available under Article Il of the Plan that do not satisfy all the requirements for "COBRA continuation coverage," the members shall have the opportunity to elect either the COBRA continuation coverage or continuation under the Plan. An election of COBRA continuation coverage will terminate the member's eligibility for Plan continuation.

ARTICLE VI

PAYMENT OF CLAIMS

Section 1 - Claim Forms

The Company, upon receipt of a notice of claim, will furnish to the claimant forms for filing proofs of claim. If such forms are not furnished within fifteen days after the giving of such notice, the claimant shall be deemed to have complied with the requirements as to proof of his claim upon submitting written proof covering the occurrence, character, and extent of the occurrence for which claim is made, unless other language governs for any respective Part or section of this agreement.

Section 2 - Time of Payment of Claims

Subject to proof of claim, all benefits which accrue weekly or monthly will be paid weekly or monthly as the case may be during the continuance of the period for which the applicable Part provides benefits and any balance remaining unpaid upon the termination of the claim will be paid immediately upon receipt of satisfactory proof. Other benefits will be paid promptly after the required proofs are submitted.

Section 3 - Payment of Claims

All benefits of Parts I through IV are payable to the covered employee unless provided otherwise.

Section 4 - Exclusion of Government Hospitals

Nothing in any Part shall be construed to mean that any hospital, medical, surgical or drug benefits (as distinguished from disability benefits) are payable with respect to a hospital confinement in a hospital owned or operated by the United States Government, or with respect to any surgical, medical, drug or other treatment received in or from such hospital, or with respect to any hospital confinement in any other hospital or any surgical, medical, drug or other treatment for which no charge is made that the employee is required to pay.

Section 5 - Geographical Limitation

Reimbursement will be made to the employee with respect to benefits payable under Part Il (less any applicable member cost sharing) for any claim incurred outside the continental limits of the United States of America, Hawaii, Alaska, and the provinces of the Dominion of Canada if such claim is incurred during a temporary absence of less than 6 months from such geographical area.

 

 

ARTICLE

RECOVERY OF BENEFIT OVERPAYMENTS

Unless other language governs for any respective Part or section of this agreement, if it is determined that any benefit(s) paid to an employee under Parts I or Ill should not have been paid or should have been paid in a lesser amount, written notice thereof shall be given to such employee and he shall repay the amount of his overpayment. If the employee fails to repay such amount of overpayment promptly, the Company or Insurance Company shall arrange to recover the amount of the overpayment by making an appropriate deduction or deductions from any future benefit payment or payments payable to the employee under Parts I or Ill, or the Company may make an appropriate deduction or deductions from future compensation payable by the Company to the employee.

The amount deducted from each pay check or benefit check shall be limited to the amount permitted by law, except that no such time limitation shall be applicable in cases of fraud or willful misrepresentation.

APPENDIX A

Continuation of Coverage under COBRA

This Plan will comply with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended.

Continuation under COBRA is not in addition to other continuation provisions of the Plan. The requirement of COBRA, as in effect on October 1, 2002 are summarized in this Appendix A.

18-Month Coverage

A federal law, COBRA, allows employees and dependents, ("qualified beneficiaries"), to continue their coverage under certain circumstances beyond the date on which their coverage would otherwise have ceased. Generally, COBRA allows employees to continue coverage for themselves and their dependents for 18 months after either,

Their reduction in regularly scheduled work hours to less than the minimum requirement to qualify for coverage, or

• Termination of employment with Navistar, Inc. ("Navistar'), unless the employee was terminated for gross misconduct.

Loss of coverage during an FMLA leave would not qualify for COBRA.

Disability Extension

Qualified beneficiaries who are determined to be disabled under Title Il or Title XVI of the Social Security Act will be entitled to an Il-month extension of COBRA coverage beyond the initial 18 months. In order to qualify for the Il-month extension, the following conditions must be met:

  Social Security must have determined that the individual was disabled (disability "onset' date) either before the COBRA event or within the first 60 days of COBRA continuation coverage, and

  The Company's Employee/Retiree Information Center (ERIC) must have been provided with a copy of the Social Security determination of disability:  Within 60 days after the determination is issued, and — Before the end of the initial 18 months of COBRA.

If it is determined that the individual is no longer disabled under Title Il or Title XVI of the Social Security Act, he must give International's Employee/Retiree Information Center notice and the individual's coverage will end the month that begins more than 30 days after the date the determination is made.

Secondary Events, Which May Qualify for Extension

Another extension of the 18-month period can occur, if during the initial 18 months of COBRA coverage, a second qualifying event occurs. Examples of secondary qualifying events include:

  Divorce

  Death

  Entitlement to Medicare

  Ceasing to be a dependent child

If a secondary event occurs, the 18 months of COBRA coverage may be extended to a total of 36 months from the date of the original qualifying event. If a second event occurs, it is the qualified beneficiary's responsibility to notify International's ERIC of the event within 60 days of the event and within the original 18-month period. In no event will COBRA coverage continue beyond 36 months of the original qualifying event.

36-Month Coverage

COBRA also allows qualified beneficiaries to continue their coverage for 36 months after:

 The death of the employee,

 Divorce from the employee,

  • Loss of dependent status or,
  • The employee's retirement from IC Bus of Oklahoma, LLC.

Premium Payment

A qualified beneficiary for COBRA coverage will be required to pay 102% of the full monthly premium.

A qualified beneficiary who is eligible for the Il-month extension due to a disability will be required to pay 150% of the full monthly premium for the 19th through the 29th month of coverage.

A qualified beneficiary shall have 45 days to pay the first premium. Each monthly premium thereafter, (for the duration of the COBRA coverage), must be paid in full within 30 days of the due date.

Notice and Election Period

Upon notification of the COBRA event, International will notify its COBRA Plan administrator within 30 days of receiving notice of such event. The COBRA administrator will send via first class mail to the qualified beneficiary's last known address a "Continuation of Coverage" application. A qualified beneficiary shall have 60 days from the date of the qualifying event (the one that makes the qualified beneficiary eligible for COBRA) to elect coverage. For qualified beneficiaries to be eligible for COBRA coverage, notification must be made to the ERIC within 60 days:

• of the divorce or other event that makes a qualified beneficiary no longer eligible for coverage, or  the date of notification, whichever is later.

Failure to do so may result in COBRA coverage not being offered to the qualified beneficiary.

Cancellation of Continuation of Coverage—COBRA

If the qualified beneficiary does not pay the premium for COBRA on time, COBRA coverage will automatically end and will not be reinstated. Coverage will also end if the qualified beneficiary become covered by other group coverage through employment or marriage (when no longer affected by a preexisting condition exclusion or limitation under such plan), or if the qualified beneficiary become entitled to Medicare. It will also end if International discontinues the entire Plan.

Appendix D

Retirement Income Program

IC Bus of Oklahoma, LLC (hereinafter referred to as the Company) proposes that coverage under the Navistar, Inc. 401 (k) Plan for Represented Employees (hereinafter referred to as the "401(k) Plan") be provided as follows to employees at IC Bus of Oklahoma, LLC represented by UAW Local No. 5010 (hereinafter referred to as the "Union"), and that related Supplemental Letters be created to reflect such coverage:

A. Definitions

Effective Date shall mean the Effective Date of this Retirement Income Program Agreement and shall be the same as the Effective Date of the 2013 Main Labor Contracts.

Transfer Date shall mean the date the employees become covered by the provisions of the "401 (k) Plan" under the terms and conditions contained in the "401 (k) Plan" Section of the Retirement Income Program Agreement as defined below. This proposal is based on the Transfer Date occurring on or before December 31 , 2013.

B. Navistar, Inc. Retirement Accumulation Plan (the "RAP")

  1. From the Effective Date until the Transfer Date, employees represented by the Union as of the Effective Date will continue to participate in the RAP under the same terms and conditions as they did as non-represented employees. Similar treatment will be provided to employees represented by the Union who are hired on or after the Effective Date and prior to the Transfer Date.
  2. The Company and the Union agree that the Company will cease to provide coverage under the RAP to employees represented by the Union effective as of the Transfer Date.
  3. The Transfer Date shall be the date that as soon as administratively practical Navistar, Inc. (the plan administrator) and the third party administrator may adjust processes to handle the transfer from the RAP to the 401 (k) Plan.
  4. Any account balances and loans, if applicable, will be transferred from the RAP to the 401 (k) Plan on the Transfer Date.
  5. Any employer match and employer retirement contributions accrued under the RAP from February 1 , 2013 to the Transfer Date will be will be deposited into the employee's account in the 401 (k) Plan as soon as administratively practical after the end of 2013.
  6. The Company and the Union agree that the Company will commence coverage under the 401(k) Plan to employees represented by the Union effective as of the Transfer Date and for the remainder of the duration of the term of the 2013 Main Labor Contracts, and thereafter from the termination of said Main Labor Contracts until the passage of twelve (12) months and thereafter year to year unless at least 60 (but no more than 90) days prior to the end of any such year, any party gives written notice to the other that it desires modification or termination. In the event that any negotiations following such notice do not result in an agreement for renewal, with or without modification, prior to the end of the year-to-year extension, this Agreement shall terminate at the end of any such extension unless further extended by mutual agreement. Termination of this Agreement shall not, however, terminate further salary reduction contributions and/or employee catch-up pre-tax contributions pursuant to the 401 (k) Plan through the last day of the year in which this Agreement is terminated and shall not have the effect of otherwise automatically terminating the 401 (k) Plan. In the event a claim for benefits made by an employee or beneficiary is denied in full or in part, such denial and the claimant's right of appeal and the procedure related thereto shall be in accordance with Section 9.4 of the 401(k) Plan. Accordingly, no matter respecting the 401 (k) Plan shall be subject to the grievance procedure established in the Main Labor Contracts between the parties.
  7. Any account balances and loans, if applicable, will be transferred from the RAP to the 401 (k) Plan as of the Transfer Date.
  8. Any employee hired (or rehired) on or after the Transfer Date will become eligible to participate in the 401 (k) Plan as of their date of hire (or rehire), in accordance with its terms and provisions, as modified below.
  9. Effective as of the Transfer Date and for the remainder of the duration of the term of the 2013 Main Labor Contracts, employees will be eligible to receive "employer retirement contributions" to the 401(k) Plan made by the Company on behalf of each eligible employee.

C. Navistar, Inc. 401 (k) Plan for Represented Employees (the "401(k) Plan")

Employer retirement contributions are Company contributions made to each eligible employee, without regard to whether such employee elects to make pre-tax deferrals into the 401(k) Plan. For the duration of this agreement, such employer retirement contributions shall be made on a yearly basis and will be allocated to each eligible employee based on the age-weighted percentages shown in Table A, below; however, the eligible employee must be a seniority employee on the last day of the applicable calendar year (except in the event of death while actively employed) in order to be eligible to receive a contribution for that calendar year. With respect to the employer retirement contribution for any subsequent partial calendar year during the term of this agreement, the contribution for such calendar year will be based on eligible "compensation" paid during such partial calendar while this agreement is in effect.

For purposes of the employer retirement contribution, "compensation" shall consist of base wages for regular hours worked plus vacation pay and holiday pay; overtime pay (both the straight time and the premium portions) and profit sharing and lump sum payments are specifically excluded.

"Age" will be determined by the employee's age in full years as of the end of each calendar year for which a contribution is made for that employee.

TABLE A

Age on Last Day of Applicable Calendar Year

Applicable Percentage

Under age 30

2.00%

At least age 30 and under age 40

3.50%

At least age 40 and under age 50

5.00%

Age 50 or older

6.50%

  1. Effective as of the Transfer Date and for the remainder of the duration of the term of the 2013 Main Labor Contracts, the Company will make matching contributions to the 401(k) Plan on behalf of eligible employees based on the amount of each employee's pre-tax deferrals into the 401 (k) Plan. The matching contributions will be equal to 50% of the first 6% of eligible earnings that the employee contributes on a pre-tax basis to the 401(k) Plan. (Employee catch-up pre-tax contributions are not eligible for the employer match.)

The matching contribution will be contributed after the end of each calendar year. To be eligible for the matching contribution for the applicable calendar year, the employee must be a seniority employee on the last day of such calendar year, except in the event of death while actively employed. Any profit sharing payment or lump sum payment shall continue to be subject to the regular pre-tax deferral election and the maximum 25% pre-tax deferral percentage, and will not be subject to any special pre-tax deferral election.

  1. Employer retirement contributions and matching contributions (including income, gains and/or losses thereon) credited to an employee's account will be subject to the vesting schedule shown in Table B, below, except that both accounts will immediately become fully vested upon an employee's death or incurring a 'total disability' (as defined in the 401(k) Plan). Any forfeitures will be used to offset future employer contributions.

TABLE B

Full Years of Service

Vesting Percentage

Less than 1 year

 

At least 1 year and less than 2 years

 

At least 2 years and less than 3 years

 

At least 3 years and less than 4 years

 

At least 4 years and less than 5 years

 

5 years or more

100%

  1. Employer retirement contribution and matching contribution accounts will not be available for loans or in-service withdrawals. Upon retirement, death or other termination of employment, the vested account balances will be payable in a lump sum distribution (in accordance with the provisions of the 401 (k) Plan).
  2. A one-time Loan Origination Fee for each loan initiated shall be charged directly against the respective employee's 401 (k) Plan account.
  3. Employees will direct the investment of all of his or her 401(k) Plan accounts including, without limitation, his or her employer retirement contributions and matching contributions accounts (in accordance with the provisions of the 401(k) Plan).
  4. All employees represented by the Union as of the Transfer Date will be automatically enrolled in the 401 (k) Plan to defer 6% of eligible earnings upon the Transfer Date. Any employees hired (or rehired) on or after the Transfer Date will be automatically enrolled in the 401 (k) Plan to defer 6% of eligible earnings (in accordance with the provisions of the 401 (k) Plan). Employees will be provided an effective opportunity to opt out of such election (either canceling such deferral election or making a new deferral election) in accordance with procedures established by the plan administrator. Such employees may cancel or change their automatic election on a prospective basis at any time.
  5. Employees will continue to pay the Quarterly Per-Participant Administration Fee imposed by the third party record keeper. This fee covers the cost of administering and servicing the 401 (k) Plan which could include recordkeeping, auditing, legal and trustee/custodial expenses. This fee may be offset from shareholder servicing fees received from the 401 (k) Plan's investment options. Fees are reviewed annually and subject to change.
  6. Contract language, Plan language, and related supplemental letters will be modified to the extent required to incorporate the above changes as well as other legal requirements. Further, all contributions to the 401(k) Plan will be subject to the various limitations under the Internal Revenue Code, as may be amended from time to time (the "Code") and the 401 (k) Plan will be maintained in accordance with ERISA, as may be amended from time to time, and the requirements under the Code.

Letter of Understanding

UAW Local 5010 IC Bus of Oklahoma, LLC

During the 2013 negotiations, the Union and the Company discussed vacation as it pertains to the bargaining unit. This letter of understanding clarifies vacation carry over as follows:

Vacation accrual must be used within one year of entitlement or it must be cashed in.

Cash in will occur once each year on the pay period following January 1st. On January 1st of each year, you may not have more than one full year vacation entitlement in your accrual amount. Any hours greater will be cashed in on the first payroll after January 1st. Example: On January 1, 2014 a one-year employee cannot have more than 40 hours’ vacation accrual, a five-year employee cannot have more than 120 hours’ vacation accrual, and so forth as agreed upon the vacation eligibility schedule for bargaining unit employees. All vacation will be considered first earned as first taken.

Comprehensive Tentative Agreement Addendum 2013 IC Bus of Oklahoma, LLC/UAW Local 5010 Negotiations Safety Shoe Allowance

Company will pay the agreed upon safety shoe allowance of $100 per employee in

November 2013

Ratification bonus will be enhanced from $500.00 to $700.00

Hourly Incentive Plan Attendance Eligibility Qualifier

Attendance requirement for quarterly incentive payout relaxed from greater than 15 points to greater than 25 points to qualify

Eligibility Change for Same-Sex Married Couples

Effective January 1, 2014, Navistar will recognize same-sex spouses as being eligible for coverage under its health care, dental, hearing, and vision plans

Temporary Employee Transition Date Revised

Temporary employee transition date moved from June 1, 2014 to December 31, 2014