UAW Local 5010 Contract
(The contract is all here but it's still being edited for functionality purposes)
2023 Collective Bargaining Agreement
Between IC Bus of Oklahoma, LLC
Tulsa Oklahoma
And
INTERNATIONAL UNION, UNITED AUTOMOBILE,
AEROSPACE and AGRICULTURAL IMPLEMENT
WORKERS OF AMERICA,
UAW Local No. 5010
February 1, 2023 – February 28, 2027
Table of Contents
SCOPE & PURPOSE ..................................................................................................... 1
ARTICLE I RECOGNITION ........................................................................................... 2
UNION MANAGEMENT RELATIONSHIP .................................................................... 2
Discrimination ............................................................................................................. 3
Living Operating Agreement ...................................................................................... 3
ARTICLE II MANAGEMENT’S RIGHTS ....................................................................... 3
ARTICLE III REPRESENTATION ................................................................................... 4
ARTICLE IV GRIEVANCE PROCEDURE ...................................................................... 6
Letter of Understanding Reinstitution of Grievances ............................................ 10
ARTICLE V HOURS OR WORK AND OVERTIME ...................................................... 10
Workweek .................................................................................................................. 10
Overtime..................................................................................................................... 11
Rest Periods .............................................................................................................. 11
Reporting to Work with No work available ............................................................. 12
Called In to Work ....................................................................................................... 12
Shift Premiums and Hours ....................................................................................... 12
Distribution of Overtime ........................................................................................... 12
Notification of Scheduling of Overtime .................................................................. 14
Representation on Overtime .................................................................................... 15
ARTICLE VI WAGE PAYMENT PROVISIONS ............................................................ 16
ARTICLE VII HOLIDAYS ............................................................................................. 17
ARTICLE VIII VACATIONS ......................................................................................... 18
Vacation Eligibility ..................................................................................................... 18
Vacation selection process ...................................................................................... 20
Vacation Allotments per departments .................................................................... 20
ARTICLE IX SENIORITY ............................................................................................. 21
Layoff Procedure ....................................................................................................... 22
Section 1-Temps/Probationary Employees ............................................................. 22
Section 2- Authorized to Operate Review ............................................................... 22
Recall Procedure ........................................................................................................ 23
Section 1--Order of Recall ......................................................................................... 23
Section 2--Qualifications .......................................................................................... 23
Transfers .................................................................................................................... 23
Section 1- Open Jobs ................................................................................................ 23
Section 2- Weekly Meetings ..................................................................................... 24
Section 5 --Filling Open Jobs ................................................................................... 25
Section 5--Temporary Open Job ............................................................................. 26
Disqualified Employees ............................................................................................. 26
Medical Placements .................................................................................................. 26
Breaks in Seniority ..................................................................................................... 26
Temporary Employees Letter of Understanding .................................................... 29
ARTICLE X LEAVES OF ABSENCE ............................................................................ 30
Military Leaves of Absence ...................................................................................... 30
Bereavement Leave .................................................................................................. 30
Jury and Witness Duty Leave .................................................................................. 31
Family & Medical Leave ............................................................................................ 32
Union Leave ............................................................................................................... 32
Other Employment While on Leave ......................................................................... 32
Seniority While on Leave .......................................................................................... 33
ARTICLE XI DUES CHECK OFF ................................................................................ 33
ARTICLE XII V-CAP CHECK OFF ............................................................................. 34
ARTICLE XIII STRIKES AND LOCKOUTS ................................................................. 35
ARTICLE XIV SAFETY AND HEALTH ....................................................................... 36
Mission Statement ................................................................................................... 36
Joint Health and Safety Committee ....................................................................... 36
International Joint Committee on Health and Safety ............................................ 37
Working Alone ........................................................................................................... 38
Safety Drills................................................................................................................ 38
Letter of Understanding Plant Air Environment ..................................................... 38
ARTICLE XV ACKNOWLEDGEMENT ........................................................................ 38
ARTICLE XVI DURATION OF AGREEMENT .............................................................. 39
ARTICLE XVII UNION MATTERS ............................................................................... 39
ARTICLE XVIII HOURLY INCENTIVE PROGRAM ..................................................... 40
ARTICLE XIX GENERAL PROVISIONS ...................................................................... 40
Orientation Program ................................................................................................. 40
Tuition Refund ........................................................................................................... 40
Job Training ............................................................................................................... 40
Pay Practices ............................................................................................................. 41
Break Areas and Lunch Rooms ................................................................................ 42
Successor Agreement .............................................................................................. 42
Voting Area in Plant .................................................................................................. 42
Bulletin Boards .......................................................................................................... 42
Team Concepts ......................................................................................................... 42
ARTICLE XX DISCIPLINE .......................................................................................... 43
APPENDIX A WAGE RATES GENERAL TECHNICIAN 1 ................................................................................................ 47
APPENDIX A WAGE RATES GENERAL TECHNICIAN 2 ................................................................................................ 48
APPENDIX A WAGE RATES GENERAL TECHNICIAN 3 ................................................................................................ 49
APPENDIX A WAGE RATES GENERAL TECHNICIAN 4 AND PROCESS TECHNICIAN ............................................................ 50
APPENDIX A WAGE RATES SYSTEM TECHNICIAN 1, 2, AND 3 .................................................................................... 51
APPENDIX B PART I DISABILITY BENEFITS (THE “PLAN”) FOR HOURLY EMPLOYEES ........................................... 55
ARTICLE I WEEKLY DISABILITY BENEFITS (ALSO KNOWN AS SHORT-TERM DISABILITY) ............................................ 55
Section 1--Effective Dates and Plan Overview ................................................................................................. 55
Section 2--Weekly Disability Benefits .............................................................................................................. 56
ARTICLE II LONG TERM DISABILITY BENEFITS ............................................................................................... 60
Section 1--Qualifications for Benefits .............................................................................................................. 60
Section 2--Amount of Benefits......................................................................................................................... 61
Section 3--Maximum Benefit Period................................................................................................................ 61
Section 4--Excluded Disabilities and Losses ..................................................................................................... 61
GENERAL PLAN PROVISIONS ............................................................................................................................ 62
Section 1--Physical Examinations .................................................................................................................... 62
Section 2--Coordination with Certain Other Benefits ...................................................................................... 62
Section 3--Recurrent Disability ........................................................................................................................ 64
Section 4--Concurrent Disability ...................................................................................................................... 64
Section 5--Certain Disabilities Have a Limited Maximum Pay Period ............................................................. 64
Section 6--Self-Reported Symptoms ................................................................................................................ 64
Section 7--Mental Illness ................................................................................................................................. 65
Section 8--Other Disability Benefits You May Be Entitled to Receive .............................................................. 65
Section 9--Family Medical Leave Act ............................................................................................................... 65
Section 10--Overpayments and Other Administrative Errors .......................................................................... 65
Section 11--Recovery of Benefits Paid ............................................................................................................. 66
Denied Claims and Appeal Process .................................................................................................................. 66
APPENDIX C HEALTH CARE BENEFITS PART II HOSPITAL, SURGICAL, MEDICAL, DRUG, DENTAL, & VISION CARE
BENEFITS .......................................................................................................................................................... 68
ARTICLE I EFFECTIVE DATES ......................................................................................................................... 68
ARTICLE II HOSPITAL, SURGICAL, MEDICAL, DRUG, & VISION CARE BENEFITS ............................................... 68
ARTICLE III DENTAL BENEFITS ...................................................................................................................... 69
PART III GROUP LIFE INSURANCE PROGRAM .................................................................................................... 70
ARTICLE I EFFECTIVE DATES ......................................................................................................................... 70
ARTICLE II LIFE INSURANCE BENEFITS .......................................................................................................... 70
ARTICLE III ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS .............................................................. 70
PART IV GENERAL PROVISIONS RELATING TO PARTS I THROUGH III................................................................. 71
ARTICLE I DEFINITIONS ................................................................................................................................ 71
ARTICLE II ELIGIBILITY FOR COVERAGE ......................................................................................................... 72
Section 1--Eligibility to Continue Under Amended Program ........................................................................... 72
Section 2--Eligible Employees .......................................................................................................................... 72
Section 3--Required Information ..................................................................................................................... 73
Section 4--Effective Dates of Insurance ........................................................................................................... 73
Section 5--Changes in Amount of Insurance ................................................................................................... 74
Section 6--No Duplication of Coverage ........................................................................................................... 74
Section 7--Integration with Applicable Laws ................................................................................................... 74
Section 8--Payment of Contributions .............................................................................................................. 75
ARTICLE III TERMINATION OF AN EMPLOYEE’S COVERAGE .......................................................................... 75
Section 1--Military or Peace Corps or Similar Service ...................................................................................... 75
Section 2--Separation Pay ............................................................................................................................... 76
Section 3--Disputed Termination, Suspension or Disability ............................................................................. 76
Section 4--Labor Disputes ................................................................................................................................ 76
Section 5--Failure to Make Contributions ........................................................................................................ 76
ARTICLE IV ELIGIBILITY FOR COVERAGE FOLLOWING THE TERMINATION THEREOF ...................................... 77
Section 1--Requirements Prior to New Application for Coverage .................................................................... 77
Section 2--Return from Military or Peace Corps or Similar Service ................................................................. 77
ARTICLE V CONTINUATION OF INSURANCE WHILE ABSENT FROM WORK .................................................... 77
Section 1--Leave of Absence ............................................................................................................................ 77
Section 2--Disability ......................................................................................................................................... 79
Section 3--Laid-Off Employees ......................................................................................................................... 79
Section 4—Special Continuation Provisions .................................................................................................... 79
ARTICLE VI PAYMENT OF CLAIMS ................................................................................................................. 80
Section 1--Claim Forms .................................................................................................................................... 80
Section 2--Time of Payment of Claims ............................................................................................................. 80
Section 3--Payment of Claims .......................................................................................................................... 80
Section 4--Exclusion of Government Hospitals ................................................................................................ 80
Section 5--Geographical Limitation ................................................................................................................. 80
ARTICLE VII RECOVERY OF BENEFIT OVERPAYMENTS ................................................................................... 81
ARTICLE VIII CONTINUATION OF COVERAGE UNDER COBRA ........................................................................ 82
APPENDIX D RETIREMENT INCOME PROGRAM .................................................................................................... 85
Scope & Purpose
This Agreement made and entered into at Tulsa, Oklahoma this 1st day of February 2023 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.
7. 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.
8. Employee Dignity and Respect – It is the expectation that all employees (hourly and
salaried) treat each other with dignity and respect and in compliance with all Company
policies regarding workplace conduct.
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 or
applicants because of race, color, gender identity, national origin, ancestry, religion, physical
or mental disability, medical condition, pregnancy, childbirth or related medical condition,
marital status, sexual orientation, gender expression, age, military status, protected Veteran
status, Vietnam Era Veterans status, or any other status protected by state, federal, or local law.
All references to gender pronouns contained in this 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 Director of Labor, 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 II
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 III
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.
a) There shall be one Bargaining Chairman and four (4) Committeepersons on the first
shift. These positions will be full-time.
b) 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 (1st) 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. Any expansion of Committeepersons shall not be considered fulltime
and will be afforded a reasonable amount of time away from his/her normal work
duties for the purpose of conducting legitimate union business. 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 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.
a) Employees will not suffer any loss of wages or benefits while exercising their rights
under the grievance procedure.
b) The Union Steward will not suffer any loss of wages or benefits while investigating and
processing grievances in accordance with the Labor Agreement.
c) 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.
d) 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.
e) 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.
f) 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 grievance 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:
Step 1: 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. If the issue is not settled at Step 1 between the Committeeperson, employee
and his immediate Team Leader within four (4) working days from the time it is raised, it will
be submitted in writing at Step 2 of the procedure.
Step 2: If the grievance is not settled at Step 1 it may be presented to the BTL or another
designated BTL by the Committeeperson within four (4) 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 four (4) 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 weekly on Wednesday, after the grievance has
been identified to Step 3, this meeting can be canceled if there are no grievances to be
discussed. The Company’s answer will be given within four (4) 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.
If an issue arises in scheduling Step 3 meetings, either party may elevate the issue to the
International Union or Corporate Human Resources.
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 Company’s
answer, in Step 3 above, is not satisfactory, the Bargaining Committee Chairperson may within
four (4) working days, appeal the grievance to Step 4. In cases of contract interpretation or
discharges, the grievance may be sent directly to the International UAW Heavy Truck
Department. 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 twenty (20) 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. The Union will provide written notice to the Company
of their intent to arbitrate a discharge grievance within six (6) months and one (1) year for all
other Step 4 written answers provided by the Company.
Grievance Understandings
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.
A grievance involving a suspension, discharge or policy violation(s) may be initiated at Step 3
of the grievance procedure within four (4) scheduled working days after the suspension,
discharge or policy violation(s).
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.
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.
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 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.
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:
a) He shall have no power to add to or subtract from or modify any of the terms of any
Agreement.
b) All awards of back wages shall be limited to the amount of wages the employee would
have otherwise earned 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.
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 requests 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.
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
antithetical 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 or Work and Overtime
Workweek
The normal workweek shall consist of four (4) days of ten (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 4:30am.
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 4:00pm.
a) The normal work week 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 work week for payroll and work scheduling purposes is a seven
(7) consecutive day period beginning at 12:01am on Monday.
b) 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 of ten (10) hours in any single work day, or
2. In excess of forty (40) hours in any given work week, or
3. For Friday except in cases where the employee was absent from work during the
regular work week 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 work week 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 workday; 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 (90) degrees or greater, as of eleven thirty (11:30) am, as measured at
the Tulsa International Airport, there will be an additional fifteen (15) minutes break during
the second half of the shift. When the facility cooling project is complete, the Company
and the Union will evaluate the additional heat break language to determine if it is
required.
The Company shall provide an unpaid meal break of a minimum of thirty (30) minutes,
approximately mid-way through the shift.
Break times may be flexed to minimize operational down time. Lunch period may be flexed a
maximum of thirty (30) minutes. The Company will notify the Local’s Chairman, prior to
changes, of the business reasons for such change.
Reporting to Work with No work available
The Company will make mass notification no later than two (2) hours prior to the employees’
starting shift time if there is an issue that would require a delayed start or unexpected down
day. Employees are required to have current contact information, including phone numbers
and address updated. 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, one dollar ($1.00) 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 two hours 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.
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 or Group Leader will verbally provide you notice, two (2) hours prior to
the end of the 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 commensurate 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.
Saturday (Second off Duty Day) Overtime Scheduling
The company and the Union have agreed that employees may be scheduled to work a
maximum of twelve (12) Saturdays in a calendar year. The twelve (12) Saturdays may be
a combination of one (1) Saturday for the calendar months of February through
November with an additional two (2) floating Saturdays that may be scheduled based on
the business requirements throughout the calendar year. The ten (10) scheduled
Saturdays from February through November may be moved to other months with valid
business needs and mutual approval. With the exception of an employee who volunteers
for overtime on a Saturday, no employee shall be scheduled to work more than two (2)
consecutive Saturdays, nor more than two (2) Saturdays per calendar month. When the
need arises to schedule a department/group of employees for Saturday overtime, that
will only impact the maximum Saturdays (12) to schedule for that department/group of
employees not the entire facility. This excludes running production on a Saturday
(Second off Duty Day).
The company will make every effort to notify employees of scheduled Saturday overtime
as soon as possible, but no later than lunch of every Wednesday of the week overtime is
to be scheduled. Scheduling of Sunday overtime will only be on a voluntary basis.
Employees will not be required to work more than twenty (20) hours of overtime per
week. This does not limit an employee’s ability to accept volunteer overtime over twenty
(20) hours in a week.
Cancelation of Scheduled Overtime
While it is not the Company’s intent to cancel scheduled overtime, if the need arises to
cancel the following will apply:
Daily overtime, the Company will notify employees of canceled overtime by 1:15
pm of the day overtime is to be worked, if overtime is not canceled by 1:15 pm the
scheduled overtime will be worked for those who volunteer to work.
Friday and Saturday Scheduled Day, the company will notify employees as far in
advance of the need to cancel a full plant scheduled day, but no later than 1:15
pm the day prior. If overtime is not canceled by this deadline the scheduled
overtime will be worked for those who volunteer to work for up to five (5) hours.
Representation on 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.
Extreme Weather Conditions
In the event of a State of Emergency declaration by the Governor of Oklahoma for
extreme weather conditions employee will not be assessed attendance points. Both the
Company and the Union must review the declaration and agree if it encompasses the
Tulsa area.
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*
General Technician 1 1 Bus Driver, Bush Washer, Janitors
General Technician 2 2 Bus Utility, Building, Grounds
General Technician 3 3 Assemblers, Sub Assembly, Material Handlers
General Technician 4 4 Pre-Paint, General Technician
Process Technician
5 Quality Technician, IPV, Machine Operator,
Receivers, Repair
Systems Technician 1
6 QAS, MET, Lean, Electricians, CNC Operator,
Repair
Systems Technician 2 7 Painters, Welders
Systems Technician 3 8 Maintenance
Systems Technician 4 9 Machine Maintenance
Systems Technician 5 10 Machine Maintenance, Electrical Systems
Group Leader 1 11 Leads General and Process Technicians
Group Leader 2 12 Leads System Technicians
Group Leader 3 13 Leads System Technicians 4 and 5
*The above chart does not list every corresponding skill required to build a bus.
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 restriction’s seniority permitting, in no
case will a seniority employee be displaced.
(a) 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.
(b) 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.
(c) 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 VII
Holidays
1. Effective on the date of this agreement and for contractual purposes, the following days
shall be considered holidays:
Martin Luther King’s Birthday
Spring Break* (one day)
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Juneteenth (added to the 2024 Holiday Calendar)
Winter Break* (four paid holiday days during the end of the calendar year)
*These five paid days (of 10 hrs) off will be scheduled no later than the first week of
November of each calendar year.
2. 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.
3. 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.
4. 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.
5. An employee shall be compensated for such holiday only when:
a. Has successfully completed his probationary period;
b. Winter Break Holidays, employees who have not completed their
probationary period will earn one (1) holiday for every twenty (20) calendar
days during their probationary period up to a maximum of four (4) days.
c. Has performed work as scheduled his last scheduled work day before the holiday,
and his first scheduled work day immediately following the holiday;
6. No holiday benefits are to be paid should a catastrophe, strike, accident or fire which is
beyond the control of the Company and which causes plant production operations to be
down for a full thirty (30) day period immediately prior to any holiday.
7. 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:
a) Newly hired employees will receive ten (10) hours of vacation after six (6) months
of service with the Company and an additional ten (10) hours after the next full
quarter worked at quarters end, for that calendar year.
b) Each employee whose seniority as of January 1 is less than one (1) year shall receive a
pro-rated portion of vacation hours based on the hours credited vacation schedule
included in this article.
c) Each employee whose seniority as of January 1 is less than two (2) years shall receive
one (1) week of vacation (40 hours).
d) 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).
e) 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).
f) 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).
g) Each employee whose seniority as of January 1 is twenty (20) years or more shall receive
five weeks of vacation (200 hours).
h) In the year an employee obtains a milestone anniversary (two (2) years, five (5)
years, ten (10) years and twenty (20) years) they will earn an extra week of vacation
and will be eligible to use that extra week of vacation starting on their anniversary
date.
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 0
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 Conversion
Annually employee may elect to convert vacation to cover unplanned absences as follows:
Two (2) days for employee with one (1) but less than five (5) years of seniority at
any time during the year on January 1st.
Three (3) days for employees with five (5) but less than ten (10) years of seniority
at any time during the year on January 1st.
Four (4) days for employees with ten (10) plus years of seniority at any time during
the year on January 1st.
These days can be used in increments of five (5) and ten (10) hours. Employees must call
in before the start of their shift or notify by the end of 1st break to use converted vacation.
Converted vacation days cannot be used in conjunction with a holiday to qualify for
holiday pay. Employees must make an election to convert vacation days by December 15th
of the previous calendar year. These days cannot be rolled over at the end of the calendar
year. Unused days will be carried over as vacation or paid out based upon the provisions
of the contract.
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
It is the intent of the Company that employees be allowed to schedule and use their earned
vacation. To this end, the Company will strive to ensure ample time for earned vacation can be
scheduled and used. 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.
Departmental vacation allotment calculation shall be as follows:
By department total number of hours vacation earned divided by the number of
working days in the year rounded up to the nearest whole number.
This calculation is based on the number of vacation hours available in the
department as of January 1st of each year.
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.
Vacation Carryover/Payout:
Employees may choose to have any remaining vacation time paid out at calendar year end
or carried over to the following year.
Carryover – No more time than what is earned on January 1st may be carried over
to the next year.
Early payout – Employees must request vacation to be paid out by December 1st
with the payout to be no later than the third pay period in December.
Excess vacation payout – Any excess vacation time over the amount allowed to
carry over will be paid out no later than the second Thursday in January if a
payout request was not submitted.
Bridging of Vacation
For purposes of this policy, if an employee experiences a break in service, then later
returns within three (3) years of terminating, the original Date of Hire will be used as the
date for calculating length of service for vacation allotments. If the employee returns after
three (3) years following their termination, they will be treated as new hire for vacations
purposes.
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/ID number will be used as the tiebreaker with the lowest
number having the most seniority.
Layoff Procedure
Section 1-Temps/Probationary Employees
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.
Section 2- Authorized to Operate Review
If further lay-offs are necessary the Company and the Union will review the total
plantwide manpower reduction needed, this review will also include critical skills that
need to be maintained in order to run at the new manpower levels. This number will
include any open positions, plus the number of employees to be reduced from each
department, this will be the total number of employees impacted by layoff. Employees
who do not have enough plant wide seniority to stay in the plant will be laid off unless it
is necessary to retain their particular skill set. The lay-off process will be jointly
administered between the Company and the Union. Job postings or transfers may be
frozen or delayed during the lay-off process.
Section 3 - Departmental Lay-Off Procedure
Employees will be laid-off by seniority within their job bands and department. Employees
will be offered minimal instructions when bumping into a different position. The employee
impacted by lay-off, in seniority order, will have the option to:
1. Elect to be laid-off from the plant
2. Bump the least senior employee in a higher job band within the department
provided they have held and qualified for that position previously. Least senior
employees who have been bumped out of a higher job band will be placed into the
plantwide lay-off placement process and will be allowed to exercise their seniority
rights.
3. Bump the least senior General Tech, in any General Tech labor grade within their
department, provided they have the necessary skills and ability to perform the
work.
Section 4 - Plant Wide Placement Procedure
Employees who have no departmental bumping rights or are disqualified from the
departmental bump, but have enough plant wide seniority to stay in the plant will have
the option to:
1. Elect to be laid-off from the plant
2. Bump the least senior employee in a higher job band within the plant provided
they have held and qualified for that position. Least senior employees who have
been bumped out of a higher job band will be allowed to exercise their seniority
rights. Employees who have no plant wide higher job band bump rights or are
disqualified from that position will;
3. Elect to an open position (open positions are considered the least senior).
4. Bump the least senior General Tech, in any General Tech labor grade plantwide,
provided they have the necessary skills and ability to perform the work.
Employees will only have one (1) opportunity to bump the most junior employee as
outlined above. If employee fails to qualify, they will 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 and will be allowed to select from all open jobs in accordance with their
qualifications and previous held job band. If there are no employees eligible for recall within
the job band the company will post the open position using the job posting or transfers
process. 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 an employee regarding recall via telephone or email a certified letter, sent
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 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.
Transfers
Section 1- Open Jobs
a) All job openings, for any reasons, 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.
c) Employees will sign and date a Letter of Acceptance when a job bid or transfer is
awarded.
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 2- Weekly Meetings
The company and Union will meet weekly during normal work hours to discuss job
opening and pending transfers, the meting can be canceled if there are not open jobs or
pending transfers.
Section 3- Inter Department Openings
When an opening occurs the Team Leader and Zone Representation will solicit employees by
seniority within the department, within two (2) business days of posting. This will be limited
to one movement per opening.
Section 4 – Transfers
When there is a job to be filled in a General Tech job band an employee may request a transfer
by completing a transfer request form obtained in the HR Dept. The open jobs will be posted
bi-monthly on the first Wednesday and third Wednesday of the month, on the bulletin board(s)
at the time clock(s). Applicants will have until 5:00 pm on the seventh calendar day following
the date of posting to submit a transfer request form to Human Resources. Employees are
required to transfer if they have a transfer request submitted and awarded. The transfers will
be awarded based on seniority, no more than twelve (12) calendar days after the job listing has
been pulled. If there is a delay in transfer and the Company, Employee and Union agree,
the employee can remain in their work area for an agreed upon time, employee will be
paid at the next highest labor grade until they are transferred into their awarded position.
Employees will be allowed a maximum of twelve (12) business days to qualify on the job they
have transferred to. The Transfer list will be cleared after positions have been awarded.
Employees may cancel their transfer request during the seven (7) day posting period with
written notification to Human Resources. An employee refusing an offer of transfer is not
eligible for other transfers for a period of six (6) months. If an employee refuses an offer or a
transfer it will not be reposted and will be awarded to the next senior employee who
submitted a bid. If the transfer or job bid is not filled by a full-time employee, then the
most senior temporary plant employee will be offered the position provided they have
been working in the plant over 90 days. If no temps have been working in the plant longer
than 90 days, then the senior temporary employee who has been in the department longer
than 30 days will be offered the position. If no temporary has been in the department
longer than 30 days, then the temporary who has been in the plant the longest will
determine who is converted.
Section 5 --Filling Open Jobs
When a permanent vacancy occurs which the Company elects to fill in a job classification
covered by this Agreement, or when the Company decides to create a new job classification,
the following procedure shall be followed:
1) If the vacancy is in the Process or System Technician Labor Grade, notice of the job
vacancy shall be posted on the bulletin board(s) at the time clock(s). Such notice shall
set forth the job classification, the labor grade and qualifications required for the job.
Eligible applicants will have until 5:00 pm on the seventh calendar day from the date
of posting to bid on those open positions (shut downs and holidays excluded).
2) To be eligible to bid, an employee must have completed their probationary period. All
information requested on the bid form must be completed and submitted to Human
Resources.
3) Awarding of bid’s:
Process Technician: The Company shall offer the job to the most senior employee.
System Technician One (1): The Company shall offer the job to the most senior
employee
Systems Technician Two (2): The Company shall offer the job to the most qualified
senior employee who successfully takes and passes the skills assessment for Paint
and Weld positions. If the senior employee does not successfully pass the skills
assessment the next senior employee who bids on the position will follow the same
process.
Systems Technician Level (3-5): The Company shall offer the job to the most
qualified candidate based on knowledge, skills and the ability to do the job
determined through the interviewing process. Plant seniority, as set forth in the
Article, will be used to determine who will receive the job offer if two employees
are deemed qualified.
4) An employee shall not be allowed to bid on another job for a period of six (6)
months following the date that the employee is awarded a job bid or refuses to
accept an awarded job bid, except when the employee is disqualified and returned to
their former department by the Company.
B. An employee selected to fill a vacancy under this Section shall be assigned to that department
as soon as reasonably possible but no later than three (3) weeks from the date the employee
accepts the job opening. The employee shall have twelve (12) business days on the job to
demonstrate proficiency to perform the job or decide if he or she wishes to remain in the
position. The Company may, at any time during that period, disqualify an employee and move
them back to their old department if the Company determines the employee cannot adequately
perform the work. An employee who elects to return to his old department shall not be entitled
to consideration for any opening for six (6) months following the date the employee elects to
return to his or her former department. Any employee who is returned by the Company to their
former department shall be entitled to bid on any subsequent vacancies posted by the Company.
C. The Company and the Union will work jointly to develop an updated interview process
for Level 3-5 System Technician positions.
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.
Disqualified Employees
Prior to disqualification of an employee, in all instances, on the eighth (8) working day a
written performance evaluation of the employee will be conducted with the Union
Representation. 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. Any employee who is
returned by the Company to his or her former department shall be entitled to submit a new
transfer on any subsequent transfer job openings posted by the company.
Medical Placements
An employee who has been assigned documented restrictive work by a Medical Provider
due to temporary physical limitations shall provide all restrictions to the company medical
department. These restrictions will be reviewed by the EHS and People/Culture Team,
the EHS team will include the Union Safety Rep and Zone Rep. This team will determine
if restrictive work can be accommodated until the employee is able to return to their
previous position without restriction. The work may include traditional bargaining unit
work or non-traditional work as long as there are no violations of their physical
limitations. It is the responsibility of the employee to keep the Company updated on any
changes to their restrictions.
Breaks in Seniority
Seniority shall be considered broken in the bargaining unit when:
a) 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.
b) 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.
c) An employee who is absent from work in excess of three (3) working days without
reporting to the Human Resources Department or is absent from work in excess of three
(3) 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 two (2) consecutive working days
without properly reporting their absence or without reasonable cause.
d) An employee who transfers to a non-bargaining unit position within the Company.
e) An employee fails or refuses to return to work from layoff or fails to contact the
Company within three (3) 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 three (3) 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.
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 ninety (90)
calendar days of employment. All days of absence except holidays must be made up in
determining the date upon which the employee acquires seniority. If a temporary employee is
selected by the Company to be converted to a regular full-time employee, continuous
service time as a temporary will be counted toward the completion of the contractual
probationary period.
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.
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, not to exceed 25%, unless a business need arises and is mutually agreed to by
the Company and the Union.
The Company agrees to review the number of temporary employees monthly. 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.
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 earnings 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, stepchild,
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 employees’ straight
time hourly rate.
“Extended family” is limited to the employee's stepparent, parent or stepparent of
current spouse, stepbrother 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.
3. Such leave shall include the day of the funeral.
4. 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:
a) Employees absent due to work related injury
b) On Layoff
c) On Sick Leave
6. Extensions of bereavement, without pay, may be arranged through the Human Resources
Department.
7. In the event of the death of your or your spouse’s 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
death 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
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 XI
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 XII
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:
a. Name
b. Employee Number
c. Department Number
d. Address
e. Social Security Number
f. Local Union Number
g. Amount to be deducted each month (will be elected by the employee on the
deduction card).
h. 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.
2. 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.
3. 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.
4. The Company will issue a single check, payable to the UAW V-CAP, in care of the
UAW’s 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).
5. 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.
6. Employees who wish to cancel their authorizations, for payroll deductions, will sign a
card supplied by the Union for that purpose.
7. 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.
8. 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.
9. 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 XIII
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 slowdowns 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 XIV
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 or Industrial
Equipment, 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.)
7. Review and make recommendations regarding the personal protective equipment
currently in use and selection of suppliers.
8. Issues arising from the Plant Medical Department will be brought to the attention of the
Plant Manager and the Human Resource Department.
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.
Further, for the UAW Safety Representative, the Company will provide two (2) weeks of
training and one (1) week of training for the Alternate Safety Representative annually. All
training must be approved by the Corporate or the Plant Safety Manager.
International Joint Committee on Health and Safety
The International Joint Committee on Health and Safety will consist of two (2) representatives
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.
The Company will invite the International Safety and Health Representative and Heavy Truck
Department Representative or their designee to the IC Bus of Oklahoma cross plant audit.
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.
a) The Company will provide one hundred twenty-five ($125) during the third pay
period of August, each year of the agreement to purchase ASTM (American Society
for Testing and Materials) approved safety shoes.
b) Safety Glasses: Prescription safety glasses (frames and lenses) will be provided by the
company every two (2) years. If, during the course of work, an employee’s glasses
are damaged or broken, the Company will replace them prior to the two-year deadline.
Lenses will be covered by the Company when an employee’s prescription changes.
Working Alone
When work assignments involve situations where it is hazardous to an employee, appropriate
precautions will be taken including communication system or work partner.
Safety Drills
Pre-Scheduled Evacuation and Seek Shelter drill will be conducted on each shift at least once
per year.
Letter of Understanding
Plant Air Environment
During the 2023 contract negotiations, the Company and Union had discussions regarding
the Plant Air Environment. As previously communicated the facility will be going through a
engineering study to determine the most efficient way to cool our facility. A purchase
order is in process to be dispatched to the supplier to start this engineering study. This
study may take a few months in order to finalize an assessment. From that study we will
understand the timing and complexity to launch the cooling project. With the current
supply chain constraints for componentry, it is likely that this is a ~2+ year project.
Throughout this process we will keep the Union apprised of the project timeline and
efforts needed to complete the project.
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
Duration of Agreement
This Contract shall remain in full force and effect until 12:01 am March 1, 2027, and thereafter
from year to year unless either party shall give notice in writing sixty (60) days in advance of
March 1, 2027, or any anniversary thereof, to the other party of its desire to make changes and
of the specific changes desired, or to terminate the same. Unless such notice is given not less
than sixty (60) days prior to March 1, 2027, or an anniversary thereof, this Contract shall
automatically continue in effect until the next anniversary date.
Article XVII
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 internet, computer, and phone. 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.
6. Weekly, the Company will provide to the UAW Chairperson or their designee access
to current order board schedule and work schedule forecast.
7. Access to the Andon website will be provided.
Article XVIII
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 ends.
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, and local specialized
training and facility orientation. The Union shall be allocated two (2) hours 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 having a work hardening training program that is progressive in
nature to adequately train all new employees and employees who have transferred to a new
job within the facility. The Company and the Union will discuss and agree on training
programs for all Basic Tech, General Tech, Process Tech, and Systems Tech jobs within the
facility.
Pay Practices
The Company will issue pay (either through direct deposit or check) for any discrepancy in
pay over one hundred ($100) dollars.
Break Areas and Lunch Rooms
The Company will continue to maintain seven (7) main, air-conditioned break areas in the
facility, PDI and CBC. The Company will continue to maintain current satellite breaks
areas in the facility. There shall be four (4) working microwaves in each area and four (4)
microwaves in each satellite break 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 in the
Audit Room. 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.
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. Group Leader training will be updated to include
understanding manufacturing operating systems (which may be subject to change over
time), the Bargaining Committee will be invited to this training. Team members will
determine the methods and processes of distributing the work, including rotation schedules,
within the team.
Work Instructions
The Company shall maintain work instructions on all elements required to build a bus.
At agreed upon line rates 52, 64 and 74, we will add the line balancing levels to the
corresponding operation work instructions book. This work will be completed by
December 31, 2023. Time studies will be made available to the Chairman of the Bargaining
Unit upon request.
Parking Lot
The Company will create a PM Schedule to sweep the parking lot with a magnet. PM
program will be implemented no later than March 1, 2023.
Article XX
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; verbal coaching, written reprimand, warning, suspension and
termination.
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.
When the Company advises employees of discipline, the action must be issued within five
(5) working days commencing the day a member of management becomes aware of the
incident; otherwise, the discipline becomes null and void.
In the administration of progressive discipline, disciplinary warnings more than 12
months old shall not be considered.
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
2023-2027 Collective Bargaining Agreement
IC Bus of Oklahoma, LLC & UAW Local 5010
For the Company
Rodney Tharp Plant Director
Luke Hegemier Vice President, Manufacturing Operations
Lisa Perez Sr. Human Resources Generalist
Brian Delphey Benefits Director
Rose Murtaugh Associate Director of Pension
Nikola Bjalos Benefits Plan Specialist Lead Sr.
Michael McNelis Manufacturing Finance
Tim Powelke Director, Labor Relations
For the Union
Tim Smith UAW Director, Region 8
John Eblin Assistant Director Heavy Truck Department
David Snyder Assistant Director Heavy Truck Department
Ed Zirkle International Representative Heavy Truck Department
Deron Blakely International Benefits Representative
Jeff Hall UAW Regional Representative, Region 8
Jeff Jones UAW Local 5010, President
Guy Abbott UAW Local 5010, Chairman
Casey Morgan UAW Local 5010 Bargaining Committee
Roberto Pineda UAW Local 5010 Bargaining Committee
Tammy Walkup UAW Local 5010 Bargaining Committee
Reginald Williams UAW Local 5010 Bargaining Committee
John Sigman UAW Local 5010 Benefits Representative
Appendix A
Wage Rates
General Technician 1
Effective Date Start
Current as of 1/31/23 $ 16.15
2023 - $1,500 Lump Sum Paid on
July 20th
$ 16.15
2024 4% AIF Effective July 8th $ 16.80
2025 - 4% AIF Effective July 7th
$ 17.48
2026 - 4% AIF Effective July 6th $ 18.18
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
*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 bumps into these positions
will be paid the wages stated above.
Wage Rates
General Technician 2
Effective Date Start 90 Calendar
Days
180
Calendar
Days
365 Calendar
Days
Current as of 1/31/23 $ 21.33 $ 21.66 $ 21.99 $ 22.25
2023- $1,500 Lump Sum Paid
on July 20th $ 21.33 $ 21.66 $ 21.99 $ 22.25
2024 - 4% AIF Effective on
July 8th $ 22.19 $ 22.53 $ 22.87 $ 23.14
2025 - 4% AIF Effective on
July 7th $ 23.08 $ 23.44 $ 23.79 $ 24.07
2026 - 4% AIF Effective on
July 6th $ 24.01 $ 24.38 $ 24.75 $ 25.04
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
General Technician 3
Effective Date
Start
90
Calendar
Days
180
Calendar
Days
365 Calendar
Days
Current as of 1/31/23 $ 21.55 $ 21.88 $ 22.22 $ 22.50
2023 - $1,500 Lump Sum Paid on
July 20th $ 21.55 $ 21.88 $ 22.22 $ 22.50
2024 – 4% AIF Effective on
July 8th $ 22.42 $ 22.76 $ 23.11 $ 23.40
2025 – 4% AIF Effective on
July 7th $ 23.32 $ 23.68 $ 24.04 $ 24.34
2026 – 4% AIF Effective on
July 6th $ 24.26 $ 24.63 $ 25.01 $ 25.32
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
General Technician 4 and Process Technician
Effective Date Start 90 Calendar
Days
180
Calendar
Days
365
Calendar
Days
Current as of 1/31/23 $ 21.77 $ 22.11 $ 22.44 $ 22.84
2023 - $1,500 Lump Sum Paid
on July 20th $ 21.77 $ 22.11 $ 22.44 $ 22.84
2024 – 4% AIF Effective on
July 8th $ 22.65 $ 23.00 $ 23.34 $ 23.76
2025 – 4% AIF Effective on
July 7th $ 23.56 $ 23.92 $ 24.28 $ 24.72
2026 – 4% AIF Effective on
July 6th $ 24.51 $ 24.88 $ 25.26 $ 2 5.71
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
System Technician 1, 2, and 3
Effective Date
Start 90 Calendar
Days
180 Calendar
Days
365 Calendar
Days
Current as of 1/31/23 $ 24.67 $ 25.22 $ 25.56 $ 25.97
2023 - $1,500 Lump Sum Paid
on July 20th $ 24.67 $ 25.22 $ 25.56 $ 25.97
2024 – 4% AIF Effective on
July 8th $ 25.66 $ 26.23 $ 26.59 $ 27.01
2025 – 4% AIF Effective on
July 7th $ 26.69 $ 27.28 $ 27.66 $ 28.10
2026 – 4% AIF Effective on
July 6th $ 27.76 $ 28.38 $ 28.77 $ 29.23
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
Systems Technician 4
Effective Date Start 90 Calendar
Days
180 Calendar
Days
365 Calendar
Days
Current as of 1/31/23
$ 27.94
$ 28.40 $ 28.73 $ 29.14
2023 - $1,500 Lump Sum Paid
on July 20th $ 27.94 $ 28.40 $ 28.73 $ 29.14
2024 – 4% AIF Effective on
July 8th $ 29.06 $ 29.54 $ 29.88 $ 30.31
2025 – 4% AIF Effective on
July 7th $ 30.23 $ 30.73 $ 31.08 $ 31.52
2026 – 4% AIF Effective on
July 6th $ 31.44 $ 31.96 $ 32.33 $ 32.80
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
Systems Technician 5
Effective Date Start 90 Calendar
Days
180 Calendar
Days
365 Calendar
Days
Current as of 1/31/23
$ 33.41
$ 33.97 $ 34.30 $ 34.71
2023 - $1,500 Lump Sum Paid
on July 20th $ 33.41 $ 33.97 $ 34.30 $ 34.71
2024 – 4% AIF Effective on
July 8th $ 34.75 $ 35.33 $ 35.67 $ 36.10
2025 – 4% AIF Effective on
July 7th $ 36.14 $ 36.75 $ 37.11 $ 37.55
2026 – 4% AIF Effective on
July 6th $ 37.59 $ 38.22 $ 38.60 $ 39.06
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
Appendix A
Wage Rates
Group Leaders
Effect Date Group Leader 1 Group Leader 2 Group Leader 3
Current as of 1/31/23
$ 24.24 $ 27.36 $ 30.53
2023 - $1.00 Increase Effective
March 6, 2023
$ 25.24 $ 28.36 $ 31.53
2023 - $1,500 Lump Sum Paid on
July 20th
$ 25.24 $ 28.36 $ 31.53
2024 – 4% AIF Effective on
July 8th
$ 26.25 $ 29.50 $ 32.80
2025 – 4% AIF Effective on
July 7th
$ 27.30 $ 30.68 $ 34.12
2026 – 4% AIF Effective on
July 6th
$ 28.40 $ 31.91 $ 35.49
Add $1.00 per hour for all shifts other than 1st
Indicated Lump Sum payable to all employees who are active as of the date of payment
and who have completed the wage progression as of that date. Employees on leave will
receive payment upon return to work.
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 February 1, 2023.
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 longterm
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 (hereafter the “seven-day waiting period”) of a qualifying
absence resulting from pregnancy, illness or accidental injury under terms of the Plan, except
such benefits may be payable from the first day if he or she is hospitalized as an inpatient or
undergoes an out-patient surgical procedure and under the regular care of a physician. An
employee may use any earned paid time available during the seven-day waiting period.
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 $600.00 per week for any
claim beginning on or after the effective date of this agreement. “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 eight (8) weeks following the date the employee delivers a child 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 six (6) 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 any other compensation from the Company. (Excluding
previously earned Vacation pay. Vacation paid concurrent with a period of disability will in
no way extend the eligibility period of disability beyond the maximum),
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;
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 cooccurring
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 shortterm
disability benefits under the Plan.
ARTICLE II
LONG TERM DISABILITY BENEFITS
Section 1--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.
Section 2--Amount of Benefits
60 percent of the employee’s base hourly wage (as defined in the Plan) to a maximum of
$2,700 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).
Section 3--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.
Section 4--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 any other compensation from the Company. (Excluding
previously earned Vacation pay. Vacation paid concurrent with a period of disability will in
no way extend the eligibility period of disability beyond the maximum),
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;
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
Section 1--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.
Section 2--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 (initiated after the commencement of
disability), or dependent benefits an 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.
Section 3--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.
Section 4--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.
Section 5--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.
Section 6--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.
Section 7--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.
Section 8--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.
Section 9--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.
Section 10--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.
Section 11--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 II
HOSPITAL, SURGICAL, MEDICAL, DRUG, DENTAL, & VISION CARE BENEFITS
ARTICLE I
EFFECTIVE DATES
The benefits provided by this Part II shall be payable with respect to services rendered on or
after February 1, 2023, unless specifically noted to employees or their dependents. Benefits
for services rendered prior to the date the employee acquired coverage provided by this Part
II, shall be paid under the applicable provisions of the health plan in effect for this purpose.
ARTICLE II
HOSPITAL, SURGICAL, MEDICAL, DRUG, & VISION CARE BENEFITS
Effective February 1, 2023, 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, 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 III
DENTAL BENEFITS
Effective February 1, 2023, 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:
January 1, 2023 – December 31, 2027 Weekly Premiums
Employee Employee + 1 Family
Standard Plan $1.00 $2.00 $3.00
Employee Employee + 1 Family
Standard Plan $26.62 $49.97 $69.90
Employee Employee + 1 Family
Standard Plan $26.62 $49.97 $69.90
Employee Employee + 1 Family
Standard Plan $27.42 $51.47 $72.00
Employee Employee + 1 Family
Standard Plan $28.24 $53.01 $74.16
Employee Employee + 1 Family
Standard Plan $29.09 $54.60 $76.38
January 1, 2023 – December 31, 2023 Weekly Premiums
January 1, 2024 – December 31, 2024 Weekly Premiums
January 1, 2025 – December 31, 2025 Weekly Premiums
January 1, 2026 – December 31, 2026 Weekly Premiums
January 1, 2027 – December 31, 2027 Weekly Premiums
PART III
GROUP LIFE INSURANCE PROGRAM
ARTICLE I
EFFECTIVE DATES
The benefits provided by this Part III shall be payable with respect to services rendered on or
after February 1, 2023 unless specifically noted to employees or their dependents. Benefits
for services rendered prior to the date the employee acquired coverage provided by this Part
III, shall be paid under the applicable provisions of the life insurance plan in effect for this
purpose.
ARTICLE II
LIFE INSURANCE BENEFITS
The amount of life insurance for employees who become covered under this Part III shall be
as follows:
Company-provided Life Insurance: $50,000 for any claim beginning on or after the
effective date of this agreement.
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 III
ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Company-provided Accidental Death & Dismemberment (AD&D) Insurance: $50,000 for
any claim beginning on or after the effective date of this agreement.
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 III
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.
(b) As to an employee who is classified as a daywork 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 costof-
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 work week during such period, his previously determined
"Base Hourly Rate" shall not be changed.
(c) 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.
(d) 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-ofliving
allowance, by 40 hours.
(2) 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 parttime
basis.
(3) 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.
(4) 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.
(5) 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.
(6) "Mental Illness" means only those mental, psycho-neurotic and personality
disorders listed in the International Classification of Diseases of the U.S. Department of
Health, and Human Services (V. #300-329), as amended.
(7) “Psychologist”
(a) 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.
(b) 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 II
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 III 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,
(a) 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.
(b) 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 III will commence as of the first
day of employment. Coverage under Part II 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 I, II and III 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 II, 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 2023 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
(a) 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 I, II or III 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.
(b) 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.
(c) The provisions of any Parts I through III 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.
(d) 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.
Section 8--Payment of Contributions
(a) 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 (1/7) for each day involved.
(b) 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.
ARTICLE III
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 II will be continued for one month following the month
in which the termination occurred, and coverage under Part III will be continued to the end of
the month the termination occurred. Thereafter, the employee will be entitled to continue
coverage as follows:
(b) for coverage under Part II, the full premium charge and,
(b) 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, their 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 reemployed
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 III 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 II
and III 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 III 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 III 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 II and Part III 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 III 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 II and III through COBRA and life
insurance conversion respectively.
Section 3--Laid-Off Employees
Laid-off employees will be eligible to continue coverage under Parts II and III at active
employee rates through the end of the month of layoff plus an additional 6 months.
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 II
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 II
(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 VII
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 III 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 III, 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.
ARTICLE VIII
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 II or Title XVI of the
Social Security Act will be entitled to an 11-month extension of COBRA coverage beyond the
initial 18 months. In order to qualify for the 11-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 II 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 11-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
During these 2023 negotiations, the Company and the Union agreed that on and after February
1, 2023 and continuing for the duration of the 2023 Collective Bargaining Agreement, the
Company would continue to provide retirement plan coverage to employees represented by the
Union through a defined contribution/401(k) retirement plan. Accordingly, such employees will
be eligible to participate in the Navistar, Inc. 401(k) Plan for Represented Employees (the
“401(k) Plan”), in accordance with its terms and provisions, as modified and supplemented,
however, by the provisions hereinafter contained in this Agreement:
1. Upon becoming eligible to participate in the 401(k) Plan, an employee will be given the
opportunity to elect to defer a percentage of eligible earnings in an amount allowable by the
401(k) Plan’s provisions. Employees represented by the Union are eligible for the 401(k)
Plan immediately upon hire or rehire. If no election is made by the employee (either to
participate or to not participate in the 401(k) Plan), the employee will be automatically
enrolled in the 401(k) Plan and be deemed to have elected to defer 6% of eligible earnings.
(Such contributions may be referred to hereinafter as “salary reduction contributions” or
“pre-tax deferrals.”) Such employee will be provided an effective opportunity to opt out of
the automatic deferral election (either canceling such deferral election or making a different
deferral election) in accordance with procedures established by the plan administrator by
contacting the record keeper of the 401(k) Plan. Such an employee may cancel or change
his or her automatic election on a prospective basis at any time.
2. During the term of the 2023 Collective Bargaining Agreement, the Company will make
“employer retirement contributions” to the 401(k) Plan on behalf of eligible employees as
set forth herein:
Such employer retirement contributions will be made on a yearly basis. The employee will
not be required to make pre-tax deferrals or Roth contributions in order to receive such
employer retirement contributions; however, the 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. The
employer retirement contributions will be contributed after the end of the applicable
calendar year and will be computed based on the eligible “compensation” paid to the
employee while an eligible employee during such applicable calendar year and will be
allocated to each such eligible employee based on the age-weighted percentages shown in
Table A, below. The first such employer retirement contribution for an eligible employee
who is hired or rehired on or after February 1, 2023, will be made after the end of the first
calendar year in which such employee becomes eligible. With respect to the employer
retirement contribution for any subsequent partial calendar year during the term of the 2023
Collective Bargaining Agreement, the contribution for such partial calendar year will be
based on eligible “compensation” paid during such partial calendar year while the 2023
Collective Bargaining 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%
3. For the term of the 2023 Collective Bargaining Agreement, the Company will make
matching contributions to the 401(k) Plan on behalf of eligible employees based on the
amount of each employee’s combined pre-tax deferrals and/or Roth 401(k) contributions
into the 401(k) Plan each payroll period. The matching contributions will be equal to 50%
of the first 6% of eligible earnings that the employee contributes on a combined pre-tax
and/or Roth basis to the 401(k) Plan each payroll period. (Employee catch-up pre-tax and
catch-up Roth contributions are not eligible for the employer match.)
Prior to February 1, 2023, the matching contributions were contributed as soon as
administratively practicable 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. Effective February 1, 2023, the matching contributions will be contributed
as soon as administratively practicable after the end of each calendar quarter. The
matching contributions for the first quarter in 2023 will include any matching
contributions based on pre-tax deferrals and/or Roth 401(k) contributions in the
401(k) Plan for payroll periods in January 2023. To be eligible for the matching
contribution for the applicable calendar quarter, the employee must be a seniority
employee on the last day of such calendar quarter, except in the event of death while
actively employed.
Any profit sharing or lump sum payments will continue to be subject to the regular employee
pre-tax deferral and Roth 401(k) contribution elections. The maximum combined pre-tax
deferral and Roth 401(k) contribution percentage is 25% of eligible earnings (subject to
various other limitations under the Internal Revenue Code). Eligible earnings include any
profit sharing or lump sum payments. No special elections will be available for the profit
sharing and lump sum payments. The pre-tax deferral and/or Roth 401(k) contribution
percentages that apply under the 401(k) Plan, in general, will apply to these payments.
4. Employer retirement contributions and employer matching contributions accounts in the
401(k) Plan 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 retirement at or
after normal retirement age (age 65), death or incurring a “total disability” (as defined in the
401(k) Plan). Any forfeitures will be used to offset future employer retirement and matching
contributions:
TABLE B
Full Years of Service Vesting Percentage
Less than 1 year 0%
At least 1 year and less than 2 years 20%
At least 2 years and less than 3 years 40%
At least 3 years and less than 4 years 60%
At least 4 years and less than 5 years 80%
5 years or more 100%
5. 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 or in
annual installments in an amount equal to his or her minimum required distribution in
accordance with the required distribution rules of the Internal Revenue Code (in accordance
with the provisions of the 401(k) Plan).
6. Individual Service Fees are fees charged directly against the 401(k) Plan account of an
employee who chooses to take advantage of a particular plan feature for which a third-party
service provider imposes a fee. Individual Service Fees are subject to change, and currently
include the following:
A one-time Loan Origination Fee for each loan initiated shall be charged directly
against the respective employee’s 401(k) Plan account.
The Company added a Professional Management Program feature to the 401(k)
Plan effective June 5, 2017. A quarterly Managed Account Fee shall be charged
directly against the respective employee’s 401(k) Plan account based on the
average daily assets under management while the employee is enrolled in Managed
Accounts during such period.
In the event a third-party service provider imposes other Individual Service Fee(s)
in the future, such fee(s) would similarly be charged directly against the respective
employee’s 401(k) Plan account for an employee who takes advantage of the
applicable feature.
7. A quarterly administration fee imposed by the third-party service provider shall be charged
directly against each employee’s 401(k) Plan account.
8. Each employee 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). To the extent an employee
fails to timely direct the investment of his or her 401(k) Plan accounts, such accounts will
be invested in a default investment option, as selected by the 401(k) Plan administrator,
provided that such employee may direct the investment of his or her 401(k) Plan accounts
on a prospective basis at any time.
9. All contributions (including the various employee, employer match and employer
retirement contributions) to the 401(k) Plan will be subject to the various limitations under
the Internal Revenue Code and any guidance issued thereunder (the “Code”), and the 401(k)
Plan will be established and maintained in accordance with ERISA and the requirements
under the Code.
10. The following provisions (as updated below) will continue to apply:
The Company will continue to provide coverage under the 401(k) Plan to employees
represented by the Union during the term of the 2023 Collective Bargaining Agreement
and thereafter from the termination of said 2023 Collective Bargaining Agreement 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
2023 Collective Bargaining Agreement between the parties.