2011 Uaw Ford Contract

2011 UAW-Ford

Contract Settlement Agreement

2011 UAW-Ford Contract Settlement Agreement

Table of Contents

Section Changed Pages Index Collective Bargaining Agreement Skilled Trades Supplemental Agreement Letters of understanding

Addendum Profit Sharing

Pages 1 A B C

Contract Settlement Agreement

Topic Page #

Volume I

Collective Bargaining Agreement 1A

Note: Terms of Agreement Vol I 2A

Collective Bargaining Agreement 3A

Memorandum of Understanding - Economic Matters 4A

Article II - Union Shop

Section 1. Requirement of Union Membership 6A

Article VI

Section 1. Unit Structure 7A

Section 4. Units of 1.400 or More (Except Rouge and Michigan Assembly Plant) 8A

Section 6. Rouge and Michigan Assembly Plant 9A

Section 9. (a-e) Unit Benefit Plans Representative 10A

Article VIII

Section 19. Layoff and Recall of Union Officers 12A

Article IX

Wages and Other Economical Matters* - Section 1. Wage Rates -- General 13A

Section 2. Wage Rate Increases 16A

Section 3. Rate Progression Under Merit Increase Agreement 18A

Section 4. Inflation Lump Sum Bonus 19A

Section 19. Bereavement Pay 24A

Section 22. Paid Holiday Plan 25A

Section 28. Moving Allowances 31A

Section 29. Application of Increases to Incentive Plans 33A

Article XI - Duration of the Agreement

Section 2. Expiration Date 34A

Section 3. Notice to Modify or Terminate; Automatic Renewal 35A

Section 4. Addressing of Notices 36A

Signature Page 37A

Appendix E

Appendix J

(Memorandum of Understanding - Continuous Improvement Forum)* 38A

Appendix K

Memorandum of Understanding - Temporary Part - Time Employees 48A

Appendix M

Memorandum of Understanding - Job Security Program (JSP) 54A

Attachment A 67A

Attachment B 69A

Memorandum of Understanding - Job Security/SUB Workforce Utilization 75A

Appendix N

Memorandum of Understanding Preferential Placement Arrangements 80A

Attachment A 90A

Attachment B 93A

Attachment C - Placement Hierarchy - Non-Skilled Preferential Placement Hierarchy 94A

Appendix O

Memorandum of Understanding Return to Basic Unit 97A

Appendix P

UAW-Ford Memorandum of Understanding Advanced Manufacturing and Sourcing 100A

UAW Ford Memorandum of Understanding Sourcing Addendum 108A

Appendix Q

UAW-Ford Memorandum of Understanding - "Best-In-Class" Quality Program 109A

Appendix S

UAW-Ford Memorandum of Understanding for the Health and Safety of Employees 118A

Appendix T

Memorandum of Understanding - National Programs Center 141A

Appendix U

Memorandum of Understanding - Employee Support Services Program 154A

Appendix V

Memorandum of Understanding UAW-Ford Entry Level Wage and Benefit Agreement 162A

Appendix W

Memorandum of Understanding Alternative Work Schedules 176A

Skilled Trades Supplemental Agreement 1B

1. Employees Covered 2B

2. Spread Rate Classifications 3B

3. Maintenance and Construction Work - Use of Seniority Employees 4B

4. New Die Construction Work - Use of Seniority Employees 5B

6. Skilled Trades Work Assignments 6B

Ratification of Agreement 7B

Exhibit I Apprenticeship Standards 9B

Exhibit I Article 6. Hours of Work 10B

Exhibit I Article 7. Ratios 11B

Exhibit I Article 9. Wages 13B

Exhibit I Article 11. Joint Apprenticeship Committee 18B

Exhibit I Article 12. Plant Subcommittees of the Joint Apprenticeship Committee 20B

Exhibit I Article 15. Seniority 22B

Exhibit I Appendices - Shop Training 25B

Exhibit II Skilled Trades Work Assignments 47B

Appendix F

Appendix F Classifications 49B

Letters of Understanding 1C

Note: Terms of Agreement Vol II 2C

2011 Conversion from Long Term Supplemental (LTS) to Entry Level (Dirksen to Settles) 3C

Access to Automated Reports (Dirksen to Settles) 4C

Access to Warehouse Management System - Parts Supply & Logistics (Dirksen to Settles) 6C

Addendum to the Memorandum of Understanding at Three Crew Schedule Locations - Altering

the Schedule (Cirbes to Gettelfinger, October 9, 1999) 7C

Addendum to Three Crew Agreement - Michigan Truck and Kentucky Truck Plants - Operating

Schedules (Cirbes to Gettelfinger, October 9, 1999) 8C

Addendum: 3 Crew Schedules - Bereavement Pay (Cirbes to Gettelfinger, October 9, 1999) 9C

Additional Health and Safety Representatives for Three shift Production Operating Pattern at

Assembly Plants (Dirksen to Settles) 10C

Administration of Job Placement Provision (Dirksen to King, April 20, 2009) 11C

Advanced Notice of Outside Contracting and Effective Clearing Procedure (Middlekauff to

Bannon, October 4, 1979) 12C

Alternate Operating Practices - Van Dyke and Sharonville Plants (Brown to Lofton, July 24, 1997) 14C

Alternate Work Schedules - Disciplinary Actions (Dirksen to Settles) 18C

Alternative Work Schedules (Cirbes to Gettelfinger, October 19, 1999) 19C

Alternative Work Schedules (Dirksen to King, February 23, 2009) 21C

Alternative Work Schedules (Dirksen to King, November 3, 2007) 22C

Appendix F Classification Updates (Dirksen to Settles) 23C

Application of Conversion to Entry Level Program to Former Employees of the Rawsonville and

Sterling Plants (Dirksen to Settles) 24C

Apprentice Preferential Placement and Return To Basic Unit Provisions (Dirksen to Settles) 25C

Apprentice Tool Box (Dirksen to Settles) 27C

Automation and Welder Fixture Repair Mechanical Team Participation (Dirksen to Settles) 28C

Back Up Time (Tetreault to Settles) 29C

Bereavement Pay for UAW-Represented Hourly Employees (Wright to Operations/Division) 30C

Best-In-Class Quality Program (Fleming to Settles) 37C

Birth Dates of Employees (Jones to Lofton,, September 16, 1996) 38C

Camshaft Machining Center of Excellence (Dirksen to Settles) 39C

Christmas - New Years Holiday Period (Dirksen to Settles) 40C

Christmas Bonus (Dirksen to King, November 3, 2007) 41C

Clarification To Changes in Article IX, Section 7, 9, and 10 (Dirksen to King, February 23, 2009) 43C

Code Section 120 and 501 ( c) (20) (Mezza to King, November 3, 2007) 44C

Communication of Quality Process Changes (Dirksen to Settles) 45C

Communications (Dirksen to Settles) 46C

Community Initiatives and Outreach (Mulloy to Settles) 47C

Competitiveness Bonus (Dirksen to Settles) 49C

Computer Access (Dirksen to Settles) 51C

Computer Access to Change Passwords (Dirksen to Settles) 53C

Computerizing the Grievance Procedure (Clark to Gettelfinger, October 9, 1999) 54C

Continuous Improvement "Best-in-Class" Benchmarking (Dirksen to Settles) 55C

Continuous Improvement (Dirksen to Settles) 56C

Continuous Improvement Forum (Dirksen to Settles) 57C

Continuous Improvement Initiatives (Dirksen to Settles) 59C

Continuous Improvement Principles (Dirksen to Settles) 61C

Cost-of-Living Allowance (Mezza to King, November 3, 2007) 62C

Dearborn Tool & Die Plant (Dirksen to Settles) 65C

Direct Deposit of Hourly Employees' Net Paychecks (Dirksen to Settles) 66C

Employee Information (Dirksen to Settles) 67C

Employee Resource Coordinator (Dirksen to Settles) 70C

Employee Resource Coordinator Reductions (Dirksen to King, November 3, 2007) 74C

Employee Transfers - Article VIII, Section 34 (Dirksen to Settles) 75C

Enterprise - Wide Offering of Special Retirement/Separation Programs (Dirksen to Settles) 76C

Entry Level Vehicle Voucher Program (Popp to Settles) 77C

Entry-Level (Dirksen to King, February 23, 2009) 78C

Equity of Sacrifice (Hinrichs to King, February 23, 2009) 79C

ESSP Representatives and Responsibilities Related to EDTP (Halverson to Settles) 80C

Exhaustion of SUB Cap (Popp to Settles) 81C

Family Day "R" Code Balance (Dirksen to Settles) 83C

Family Days (Dirksen to Settles) 84C

FCSD Network Review (Dirksen to King, November 3, 2007) 86C

Forty (40) Hour Overtime Threshold Exception (Dirksen to Settles) 87C

Fulfillment of Qualified Attrition Replacement Obligations Through Hiring and Conversion of

Entry Level Employees (Dirksen to King, November 3, 2007) 88C

Full Utilization of Protected Employees (Hall to Lofton, September 15, 1993) 89C

Funding for Skilled Trades Training (Dirksen to Settles) 90C

Future Plans for Cleveland Engine Plant 2 (Dirksen to King, November 3, 2007) 92C

Future Plans for Rawsonville (Dirksen to King, November 3, 2007) 93C

Future Plans for Sterling Axle Plant (Dirksen to King, November 3, 2007) 94C

Future Staffing Issues - Zone 6, Missouri (Dirksen to Settles) 95C

Future Staffing Issues - Zone 7, Louisville Assembly (Dirksen to King, February 23,2009) 96C

Health & Safety / Ergonomics Representatives - Parts Supply and Logistics Locations (Dirksen to

Settles) 97C

Health and Safety Continuous Improvement (Dirksen to Settles) 99C

Health and Safety Training and Culture Improvements (Dirksen to Settles) 101C

Health and Safety Training Improvements (Dirksen to Settles) 103C

Health and Safety Training Initiatives (Poynter to Bantom, September 15, 2003) 105C

Hiring Obligations (Dirksen to King, November 3, 2007) 107C

Hourly Ford Employees Assigned to ACH Locations (Dirksen to Settles) 109C

Implementation of 2007 "Housekeeping" Letter of Understanding at the Research and

Engineering Center ( Dirksen to Settles) 110C

Indemnity Clause (Settles to Mulloy) 111C

Information Sharing (Dirksen to Settles) 112C

Information to the Local Unions (Jones to Lofton, September 16, 1996) 113C

Integrated Control Systems (Tetreault to Settles) 115C

Investment Commitments (Hinrichs to King, February 23, 2009) 116C

Job Placement and Transitional Opportunities for Non-Skilled Employees at Closed/Idled

Facilities (Dirksen to King, November 3, 2007) 117C

Job Placement and Transitional Opportunities for Surplus Employees (Dirksen to King, November

3, 2007) 118C

Job Security -- Apprentice Development and Journeyperson Reskilling (Dirksen to Settles) 120C

Job Security Program - Job Security Data (Dirksen to King, November 3, 2007) 125C

Job Security Program - Layoff Alternative - JSP (Dirksen to King, November 3, 2007) 126C

Job Security Program -- Administration of Article VIII, Section 1(b) (Dirksen to King, January 30,

2008) 128C

Job Security Program - Commitment to Training (Dirksen to Settles) 130C

Job Security Program - GEN - Exclusion to Protection for Volume Related Layoffs (Poynter to

Bantom, September 15, 2003) 131C

Job Security Program - NJSOESC Monthly Review Meeting (Dirksen to Settles) 132C

Job Security Program - Reporting of SUB Program Expenditures (Dirksen to Settles) 133C

Job Security Program - Skilled Trades Employees' Refusal for Retraining Resulting in Layoffs

(Dirksen to Settles) 134C

Job Security Program - UAW-Ford Job Security Web Site (Dirksen to Settles) 135C

Job Security Program(s) - Appeals to the National Committee (Dirksen to Settles) 136C

Joint Program Computers (Halverson to Settles) 138C

Joint Programs Review Process (Dirksen to Settles) 141C

JSP - Mechanized Data System Enhancements (Dirksen to Settles) 142C

Layoff of Entry Level Employees (Dirksen to Settles) 143C

Legal Services Plan - Procedures and Funding Until Plan Termination (Popp to Settles) 144C

Long-Term Supplemental Employees (Dirksen to Settles) 145C

Maintenance General Plant Skilled - Parts Supply and Logistics (Dirksen to Settles) 149C

Manufacturing Operations Quality Operating System (QOS) Support Process (Dirksen to Settles) 150C

Material Flow Process - Parts Supply & Logistics (Dirksen to Settles) 152C

Military Appreciation Program (Dirksen to Settles) 153C

Mutual Growth Forum (Pestillo to Gettlefinger October 9, 1999) 154C

National Job Security Committee -- Unique Attrition Credit (Dirksen to King, November 3, 2007) 159C

New Employee Orientation Program (Halverson to Settles) 160C

New Technology - Parts Supply and Logistics (Dirksen to Settles) 162C

Non - Skilled Classification - Parts Supply & Logistics (Dirksen to Settles) 163C

Non-Ford Business Impact on Visteon Locations (Poynter to Bantom, September 15, 2003) 165C

North American Manufacturing Cost Objectives Efforts (Hinrichs to King November 3, 2007) 166C

Pay Adjustments (Dirksen to Settles) 167C

Payroll Matters - Vacation Pay-In-Advance (Dirksen to Settles) 169C

Personal Development Assistance (Halverson to Settles) 170C

Placement Opportunities for Ford Employees Working at ACH-LLC Locations (Dirksen to Settles) 172C

Plant Closing and Sale Moratorium (Dirksen to Settles) 173C

Preferential Hire for Automotive Components Holdings, LLC (ACH) Hourly Employees - Ford Entry

Level Opportunities (Dirksen to Settles) 174C

Production Seniority Leveling Date for Skilled Trades Employees Without Prior Production

Service (Dirksen to Settles) 177C

Profit Sharing - 2011 Plan Year Acceleration of Partial Payment (Popp to Settles) 178C

Profit Sharing Eligibility for Employees on Long Term Military Leave (Popp to Settles) 179C

Project Work for Skilled Trades (Shannon to Lofton, September 15, 1993) 181C

Quality Systems Access (Dirksen to Settles) 182C

Quality Targeted Training (Dirksen to King, November 3, 2007) 184C

Quality Upgrade Program (Dubensky to Lofton, September 16, 1996) 185C

Rawsonville Seat Insourcing (Hinrichs to King, February 23, 2009) 186C

Recall Bypass (Dirksen to Settles) 187C

Reflection of Year to Date TESPHE Contributions on Hourly Pay Check Stubs (Hanlon to Yokich

September 17, 1987) 188C

Representation (Hanlon to Yokich, September 17, 1987) 189C

Return to Basic Unit - Appendix O Administrative Guidelines (Dirksen to Settles) 190C

Return to Basic Unit - Employees Placed on Temporary Part-Time Status (Cirbes to Gettlefinger,

October 9, 1999) 192C

Sale of Operations (Dirksen to Settles) 193C

Scheduling Elected Representation on Saturdays, Sundays and/or Holidays for Locations with

varying Operating Patterns (Dirksen to Settles) 194C

Seniority Disparity - National Parts Distribution Center and Detroit High Velocity Center (Pointer

to Bantom, September 15, 2003) 195C

Skilled Trades Attrition and Staffing Levels (Dirksen to Settles) 196C

Skilled Trades Competitiveness (Dirksen to Settles) 197C

Skilled Trades Licensing (Dirksen to Settles) 199C

Skilled Trades Surplus - Redeployment to Production Clarification (Dirksen to King, February 23,

2009) 200C

Skilled Trades Training Resources (Dirksen to Settles) 201C

Skilled/Nonskilled Seniority Clarification (Dirksen to Settles) 202C

Sourcing - Communication Meetings (Dirksen to Settles) 204C

Sourcing - Training (Dirksen to Settles) 205C

Sourcing - Updates to Company Return on Investment Rates (Dirksen to Settles) 207C

Special Incentive for Skilled Trades Employees Who Voluntarily Elect to Redeploy to Production

Jobs (Dirksen to Settles) 208C

Special Incentives for Hourly Production Employees who Convert to Entry Level Employment

Status at the Rawsonville and Sterling Plants (Dirksen to Settles) 209C

Special Return-to-Production Opportunity for Surplus Skilled Tradespersons (Dirksen to King,

February 23, 2009) 211C

Stamping Business Unit / Dearborn Tool and Die (Dirksen to King, February 23, 2009) 213C

Starting Times - Part Supplies and Logistics (Dirksen to Settles) 214C

Sterling Axle Plant (Dirksen to King, February 23, 2009) 215C

Sterling Axle Plant Understandings regarding Transitioning non-skilled workforce to Entry Level

(Dirksen to Settles) 216C

Summary Tracking for Non Full-Time Ford Employees (Dirksen to Settles) 217C

Supplier Direct Ship Parts - Parts Supply and Logistics (Dirksen to Settles) 218C

Suspension of Certain Joint Programs (Halverson to Settles) 219C

Total Cost (Dirksen to Settles) 221C

Training Facilities (Proctor to Bantom, September 15, 2003) 224C

Transferees to a New State Location and SUB (Popp to Settles) 225C

Transition Assistance - Military Leaves Issued in Accordance with Article VIII, Section 33 ( Dirksen

to Settles) 226C

Twin Cities Assembly Plant - Ranger Assembly Extension (Dirksen to Settles) 228C

U.S. Armed Forces Reserves, United Nations or National Guard Missions Abroad (Dirksen to

Settles) 230C

UAW-Ford Collective Bargaining Agreement Training Program (Halverson to Settles) 231C

UAW-Ford Educational Initiative (Halverson to Settles) 233C

UAW-Ford Family Service and Learning Center (Halverson to King, November 3, 2007) 234C

UAW-Ford Joint Equality and Diversity Committees - National and Local (Mulloy to Settles) 236C

Understandings Regarding Special Program/Incentive Offerings - For Employees at Locations

Implementing Indefinite Layoffs (Dirksen to Settles) 241C

Unique Business Challenges - Parts Supply & Logistics (Dirksen to Settles) 242C

Up Front Lump Sum Payment (Popp to Settles) 243C

Updates of Personal Data (Jones to Lofton, September 16, 1996) 245C

Vacation Pay-in-Lieu (Dirksen to Settles) 246C

Voluntary Political Contributions (Popp to Settles) 247C

Volunteer Activities (Dirksen to Settles) 249C

Warehouse Management Systems - Parts Supply and Logistics (Dirksen to Settles) 250C

Warehouse Technician Classification (Fish to Lofton, October 7, 1990) 251C

Weekly Pay Statement (Dirksen to Settles) 252C

Addendum

Profit Sharing

Profit Sharing - Letters of Understanding

Collective Bargaining Agreement

~,JO'rE :

This booklet (Volume I) is being presented to you so that you may i<::now the terms of the agreements negotiated between the OAW and the Company ~

XX, 2011{}+, and certain other information which may be of '-- .. "---.--.-~--

.~nterest . Specifically. the following material is 1. collective Bargaining Agreement and

N, 0, P, Q. S, T. U, aftd-V an~.

presented in the order given: Appendices A, B, C·, G, H, J,

Skilled Trades Supplemental Agreement; Exhibit I. Apprenticeship Standards; and Exhibit II, Skilled Trades work Assignments.

K, fII,

3. Letter of January 20, 1949, concerning Maintenance and Construction operations.

4. Letter of october 4, 1979, concerning New Die Construction. 5. Settlement Agreement of May 29, 1949, as amended.

-6--~-+Jetter8 concerning Relief l\~-----4a:-Eed September 1-&-, 196'1. October 2-l--,--±967, and December "I, 1910.

~6. Three-Day Transfer Agreement of August 15, 1949. Portions of the Agreement reproduced here which are new or changed from

previous agreements are shown in bold type. Please note that any gender specific references in the Agreement language

shall apply to either sex. Other agreements and plans reproduced in separate booklets are: Volume II,

the Retirement Agreement and Plan and the Insurance Program; Volume III, the Supplemental Unemployment Benefit Agreement and plan, the Profit Sharing Agreement and Plan, the Tax Efficient Savings Agreement and plan, and the OAW-Ford Legal Services Plan; and Volume IV, the Letters of Understanding.

We hope you will find this booklet helpful.

BOB KING JIMMY SETTLES Vice President and Director UAW, National Ford Department

MARTIN J. MULLOY Vice President, Labor Affairs

* Such an Appendix is a part of each local seniority grouping agreement; there is no Appendix C attached to this Agreement.

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COLLECTIVE BARGAINING PI.GRSEMENT

Or; this Y'! ~otor Company, ~ Delaware corporation, ~ereinafter des ted as the Company. dnd the International Union, United Automobile. Aerospace and Agricultural Implement: Work.ers of America, UAW. an unincorporated voluntary association, hereinafter designated as the Union, hereby agree as follows:

CBAl/0004/1

A V(_l()~O/1/2011 ~, .~7:?

MEMORANIWM-{}F!----UNDERS' 'l'AND±NG-----Ee~mom-ie-M~ FebruaFY-J3, 2~ ~ra

F'era-Notor C6ffi-j3-ttny and the-VAl'; hane d' ehal1enges that are thre t' v lscussed at length the

significant businese a enlng the automat'" ,

G-empany, In response to these chall ,lve lndustry and changes, enges, the parties have

the viability of Our agreed to the following

CaLl. The Cost of Living ~ll a-l-l-- n miance (Article IX employees for the term Section '1)

is suspended for

Performance Bonua Section 2(b) and 1 Section IV are care costs,

of this agreement.

Performance Bonus pa)~ents

suspended in re " Bonus pa)~ent s in Appendi)( JT 0 rt i 1 , cognltlon of the d v n c-e nee to help offset health

~Chri8tmaa Bonus Christmas B . of Y d onuses are SHSP d d n erstanding titled "Ch ,en e . The November 3 sus d e rlstmas Bonus" f' ' 2007 Letter

pen~e, l\editionally, ,n,ppenei)( 17 1\ t' ~om Bl1l Dirksen to Bob King is nee to help offset health lS suspended, in recognltion of the d v, dr lC e I Section VI '

care costs.

Paid HOliday-p:~la~n:~~~~:::!::~~::~~~~~~~~~~~~~~re~~~~aat-~~~ >Lrticle IX, Section 22 13, 2009, April 5, 2010 --' is moeifiee to refl t I! l' a- anu April 25 20H . H

ee ehae i\t>Fil

ct<oe-±cll:-€1ial')'f"'9s-tUlfDH.diie:=-rr.---tt-l=h!:€e~pp.aa-iic€dHI.filo*l-iic€e~al')~' =;p4l~a~n~: 'If 1 no long e r be re c a gn i 53 e d as

Overtime ~ t' 1 dr lC e IX Section 7 " 'II ' half ' .. ill be 'd f' d be modlfiee as f 11 pal or tlme \.'orltee OHer

o o'.m. Time ane one

towards the 40 hours 'dill be n'· 40 compensatee hours per ',,'eek. ' P,rticle VIII, section 3l Lea"provlded, for verified hours '.mrlted 'h'l Creel:t Sect' £0 . e . Premlum pai t h leon an : ~lon 90r time ',mrk on Saturda ' I ~cn s in accordance , .. ith ~r ' nrtlcle IX Section lO for t' ) s and} or premium paymcnts ' • tlcle IX

e;:,,"eyee haB " eem"eneaMe'::u::r::aaen "_ye iB a""HeaM:ne:~;e::a::e "Hh 'n' lch the Saturday ane/or Sunday occur:~crlbed above during the '.mrk ~ieek in

.aca lons during their eligibilit ' ~ emp oyees schceule and talte ' eeHaberahvely ee i l ,"enea. "anagemene a a eh • . eheH eliminate thc need £0:: e:~n:n a ::obust vacation sChedulin; pro:e:;W \0'111 ",mrlt an e"ee"Ue. baeie in" > heu. vacahen"ay in lieu'" ehae ",H authorized vacatio~ i those rare incidents 'n'here a prop ~~ll only be paid. on

ee cake ehe "re"edy :e::::::~"e,;. ae ehe aheetiB. ef manae:"~n:e"e"""ea a~a the e.."leyee. ana can cd an. au'fieri_c';' vaeaHen i: .; , er ehe ab,liey hours of 8JECused tlbsen:: t ~ ~~ ~escheduled at a later date. :) ond the control of e"" e e' .. e,.anee ma,' be e I e mere 'Ran H

ec a lon is that all 81\" d' ,a cen as pay in lie' d "ill be modified accordin~ll;y a) s ;nll be utili:ced. Article I: =:ct~he . lon 26 (a)

Relief Time ~fl l' e re lef allO'lvance fo Eotal of 40 minutes e ' r employees on line opera+-l' ons se"eemb • r e"he heur sbiH The'" v- - ,,'ill 2 ,er l8, 1964, October 21 1967 d Hellef P,llmvance" lette

007 Collective Bargaining 1\' , an December 7, 1970 in Volume I orfs .,greement arc eliminated.

be a dated the

)( ft, d rf cbal/0386/1 ;1 --/- ~

~O/3/2011 AI~ -( ;'

1 ' ~_~ payments to em 10" ,,' . lnstltution th P Jees

wl11 be dir C cffiployce des' cet dep€lH;jS~i-€t"",ecddi-tB--t1'l:e-.Brt=k:-==

fequlationo, employeeo not ~gnate8. . H .ee~te:: .. the b~nl' 8<-#"" __ e cetln~lrec~ d . 1 applicable state c cpo 0 1 t >, i.ld-have their paycheck:

CCLLECTIVE BARGAINING AGREEMENT

ARTICLE II

~JNION SHOP

:~ec:::ion 1. Requirement of [Jnlon Membership

Emp covered by this Agreement at the time it becomes effective and who are members of the Union at that time shall be required as a condition of continued employment to continue membership in the Union for the duration of this Agreement. Employees covered by this Agreement who are not members of the Union at the time this Agreement becomes effective shall be required as a condition of continued employment to became members of the Union on or within ten days after the 30th day following xx 2011 ~9, 2007.

Employees hired, rehired, reinstated or transferred into the Bargaining unit after 0 ~49,--~ and covered by this Agreement shall be required as a condition of continued employment to become members of the Union an or within ten days after the 30th day following the beginning of their employment.

An employee who shall tender the initiation fees (if not already a member) and the periodic dues uniformly required as a condition of acquiring or retaining membership shall be deemed to meet this condition.

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S~C :. u~it Scruccure

For the purpose of ion and operating unde~ ~h_= , th-=: COir.parry shall be divided into Units. Each depot, la"d.oe'

~orks shall constitute such a Cni the Eo respective Units:

Maintenance and Construct 0earborn Truck Plant

tation

Dearborn Engine & Fuel Tank plant Dearborn Stamping Plant and Truck Body Dearborn Diversified Manufacturing Plant Tool and Die

Whenever operations 1n a unit of the Rouge Area are discontiiT,led or s(; curtailed as to make its continuance as a separate Unit impractical, .he parties shall mutual agreement eliminate such Unit or combine its remna~lt.S with one of the remaining Units, Where new buildings are placed in operar.ion, or operations are resumed in previously discontinued Units, the parcles sr.all by agreement determine whether a ne'J Unic: shall be added or 6.11 exisc.ing Unit expanded,

Nothing in the foregoing shall be deemed to modify the existing Ioca arrangements at the Cleveland Engine and Four;dry

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COLLECTIVE BA.p.GAINING AGREEr'IENT

Article VI, Section 4

Section 4. Units of 1,400 or More (Except Rouge,--H-i-gh±-a~a'!':-k; and WaYfi€o Michigan

In Units 1,400 or more employees, the Union will be accorded lves as follows:

(a) Number of Full-time Representatives

Each Unit, to the TIumber of therein, may ha'Je the TIumber -time representatives, including the Chalrperson of the Unit Committee, indicated in the following table:

No. of No. of Employees Representatives 1,400 to 1,599 7 1,600 to 1,799 8 1, 800 to 1,999 9 2,000 to 2,199 10 2,200 to 2,399 11

2,400 to 2,599 12 2,600 to 2,799 13

And so forth with one additional representative for each additional 200 employees.

(b) Size of Unit Committee; Handling of First Stage Grievances

Each Unit shall have a Unit Committee of three or four persons, the Chairperson,

grievances in the First Stage. District Committeepersons to handle

A Unit Committeeperson may be designated to handle First Stage Grievances within a specified district where necessary to provide adequate representation .

COLLECTIVE BARGAINING AGREEMENT

Article VI, Section 6

Section 6. Rouge, Highh±nd-Ptt£* and Wayne-Michigan Assembly Plant

NOt\'vichstanding Sections 3 and 4. 0: tt1is Article, the Union will be accorded representatives in the Rouge Jl.rea and Wayrte t'~I~~~i_~c_~~h ___ ~" __

=-=c::~=~ ~~~c~c.c-f'-±a.n:ts on a full-time basis, as follows:

\a) Size of Unit committee; Handling of First Stage Grievances

Each Unit shall have a Unit Committee of three or four persons, l~cludlng the Chairperson, plus District Committeepersons to handle

in the First Stage. A Unlt Committeeperson may be des ted to handle First Stage Grievances within a specified district where ~ecessary to provide adequate representation.

(b) Number of Representatives

The Union shall have one representative for every 200 emp fraction thereof working in the Rouge

and major and wa-yBe

~ , respectively. The apportionment of such representatives among the various Units comprising the Rouge Area shall be in the discretion of the Local Union, subject only to Subsection (al of this Section.

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Ar:l~ e VI, Sectron 9 [a e)

Section 9. Unit Benefit Plans Representative

Number; Appointment

Sach Uni of 600 or more s may have one full-trme Benef!t Plans Representative who shall be appointed by the Nati~na Ford

Department Director.

Ib) )1otice to Company

The National Ford Department Director shall advise Labor Afr in wr of the names of the appointed Benefit plans Represent tives and the Unit to which each is assigned. No representative shall function as such until the Company ha been so advised.

(c) Functions

The functions of the Unit Benefit Plans are lrmited to matters to t.he Retirement Plan, Insurance Program, and the Supplemental Unemployment Benefit Plan. The Unit Benefit Plans

will :

Retirement Plan (i) Discuss and assist in the resolution of employee, retiree and

spouse problems relating to creditable service, benefit eligibility, benefit amount, determinat10n de and payment delays.

Iii) Meet with local Company Personnel Benefits RepresEl:tatiue or other designated local Management representative as requrred.

Insurance Program (

. , 1;

, , .L "

Confer with emp , spouses, retirees --"---healthcare , beneficiaries or insurance carriers coverage eligibility, a denied claim, benef t ~mGunt , benefit payment

Me~t w1th lecal Ccmpa~y Ferccnne Eenef_ts

Supplemental Unemployment Benefit Plan

te~efit C1:

I \ /\ .. _/ 1\/ /1/ . \/ -~

1 , / ./

t" , /

(Yi' 'l \1 " " )

Artic!e VI, Section 9 (a-e)

S,~:_cn j Unit 3enefit Plans Representative (contd)

."----

(i i) Meet with designated local ~anagement representatlve required.

(iii) Discuss with Company deslgnated representati'7e those inst.,c]"Cces in which the Company determines benefit payments are not payable.

(iv) Participate in Local Supplemental Unemployment Benefit Plan Committee hearings as required.

(d) Duty to Remain in Unit; Reporting to Supervisor

A Benefit Plans Representative shall remain in his/her respective unit while on Company time.

A Benefit Plans Representative shall report to an employee's Supervisor, provided the Supervisor is in the department, before contacting such employee in pursuance of his/her duties.

(e) Hours on Company Time

It is understood that a Unit Benefit Plans Representative shall be entitled to be on Company time only for the same number of hours as the employees on the shift to which he/she is assigned are normally scheduled to work.

During periods of temporary layoff as defined by Article VIII, Section 21, a Unit Benefit Plans Representative will be consldered 3.S a Unit Committeeperson, and his/her entitlement to be on C:Jmpcm~r time will be determined ln accordance with the provisions of Section 13 (d) .

/! "~-, /-f. ,

CCL~ECT!VE BARGAINING AGREEMENT

A.rticle VIII, Section ::'8-1

Sectlon l8. Recall

,,"or the purpose of reei.ll , the p:-ocedure ClS Bt ted i:~ the abc'JE: S,.' -. ill be followed in reverse order.

Section 19. Layoff and Recall of Union Officers

Notwithstand their positions on the seniority list, all local bu] Ing or unit officers (that is, the President~ and Vice Pres SECE.Lil"e-i::-ct-F'y,-f~.fl-a·FH7"}-a-J:-t:7eeI'e1=--a-r'yL,·--'f.-l:"-€~~3-ttr€~""""C,-SE:-E€ieci"fl·1~--a·t,-,-+rm~i-7--G;llL de-elF',,"l

8wee-(-3-)-T-Fi±S-l:-ee-s) shall ha'le preferential senioLity in their LCS[X:Ct..i

Units in case of a f and subsequent recall, provided that the work available which they can perform, and provided further that n La ts 1'1 tll less thar. one hur.dred (laO) , deviation from this nde mc:/ be negotiated between Management and the International Union.

r)\ I l 1V "\ (I

I) I~l"v , I {

ARTICLE IX

;.,r.Z\.GES AND OTHER ECONOMIC MATTERS*

Section 1. Wage Rates General

The hourly rates for each classification covered by this Agreement will remain che same as at the expiration of the Agreement between the company and the Union dated NovembeJ::_~_' 2007 , except as otherwise provided in this Agreement, in the Settlement Agreement between the parties dated ~X~~XX, 2011. ~3, 2007, or in any local agreement referred to in Article X, Section 8 which provides for wage rate adjustments.

* Skilled Trades, Retirement and Supplemental Unemp_loyment Benefits, Profit Sharing Plan, Tax Efficient Savings Plan and Legal Services Plan are covered by separate agreements between the parties.

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ARTICLE IX

Section 2. Wage Rate Increases

~itH-e-that a continuing improvement in the standard of living of employees depends upon technological progrese,-better~T-met~ processes and equipment, and a cooperative attitude on the part oE all parties in ouch progreso. It Eurther recogni3es the principle that to produce IHore \.,ith the same amount---e-f-human effort is a sound

Accordingly, it is agreed that the follm"ing Performance Bonus pa)'ffient s-ha-ll be fRade to each eligible employee in accordance '<iith the follm.ing

t-ahle-.-

Eligibility Date Amount Payable During Week Ending

September 15, 2008 Three Percent October 12, 20G8 (3 . 0"6) of

September 21, 2009 Four Percent October 18, 2009 (4.0"6) of

Qualified Barnings

September 20, 2010 Three Percent October 17, 2010 (3.0"6) of

Qualified Earnings

ltD employee shall beeome eligible for a Performance Bonus payment----a-e hereinafter defined, provided he/she has seniority aD of the designated eligibility date oct forth above.

}\Xl employee I 8 Performance Bonus , .. ill be based on the Qualified Earnings during the S2 consecutive pay pcriods iffiffiediately preceding the pay period in \/hieh the designated eligibility date falls.

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,17' f 'ji I ~/ I I

COLLECTIVE BPlliGAINING .::l.GREEMENT

ARTICLE IX, SECTION 2

~.-.. --~

---Be-Eea¥effient Pay

~.-.---Jtt;ry--~--Pay

.-~~f.ra-ining Incentive Payment ··------Ca-ll I n Pay

Short Term Military Duty Pay

.( 2) An employee "ho retires dur~ the Perf.e.~Beftus Bligibility year provided in this Section and 'dho, but for such retirement, ',,'auld have had seniority as of the designated eligibility date, '.;ill qualify for the Performance Bonus as defined in this Section.

(3) In the ease of employees ',,'he die during the Performance Bonus eligibility year, a Performance Bonus shall become payable as if they ',,'ere seniority employees on the designated eligibility date and calculated based on their Qualified Earnings during the eligibility year as defined in this Section. Such Performance Bonus .. ~ill be paid to the estate or, if permitted by local law, to the next of kin.

+e+ ~Apprentice Rates

Provisions for wage adjustments for apprentices is made in Article 9 of the Apprenticeship Standards Agreement, Exhibit 1 of the Skilled Trades Supplemental Agreement.

+d+ ~Hiring-In Rates

Employees hired or rehired on or after October 4, 1993 on classifications other than those in Appendix F (Skilled Trades) will be paid a hiring-in rate of 70% of the negotiated classification rate of the job to which they are assigned.

Jl 1/ {t-~-±---I-n-e-:-d-de-s-o-v-e-rt-l-'m-e-,-s-at-u-r-day, Sunday and Holiday preffiium payments. ~. _A. '\ 2~~--- ~kJ 61:: \' \\..t..J ~ \F\..T~;<~ \

cba1/00126/2 . a ,) /\,11 10/1/2011 ~\./ f \

COLLECTIVE 8A.?GAINING AGREErvlENT

.IlliTICLE IX, SECT ION 2

: ) Upon completion oi 26 weeks of employment Guch emp ~ill recei'le in increase to 7St of the negotlated clas31Eication ~ate of the Job to which they are assigned.

i) Upon completion of 52 weeks of employment such employees will receive an increase to 80% of the negotiated classification rate of [he job to ~hich they are assigned.

(ili) Upon completion of 78 weeks of employment t31-1ch employees wi.;.l recelve an increase to 85% of the negotiated classificatio~ rate of the job to which they are assigned.

(iv) Upon completion of 104 weeks of employme~t, such employees will receive an increase to 90\ of the negotiated classiEication rate of the job to which they are assigned.

(v) Upon completion of 130 weeks of employment, such employees will receive an increase to 95t of the negotiated classification rate of the job to which they are assigned.

(vi) Upon completion of 156 weeks of employment such employees will receive the negotiated classification rate of the job to which they are assigned.

Probationary employees who were laid off due to a reduction in force and subsequently rehired within one year of their date of probationary layoff or seniority employees who were hired on or after October 22, 1979, laid off due to a reduction in force, and whose seniority was broken pursuant to Article VIII, section 5(6) and are rehired, will have their hiring-in rate determined by the hiring-in rate provision of the Collective Bargaining Agreement under which they were last hired or rehired prior to layoff based on the number of weeks of employment previously completed.

Under this Subsection, an employee will receive one week's credit toward acquiring the negotiated classification rate of the job the employee is assigned if the employee had worked in that given week. Credit will be given to seniority employees for the weeks worked while in the apprenticeship program. Credit will not be given for any week during which, for any reason, the employee does not work except:

• the full week comprising the Christmas holiday period,

• the time lost because of a compensable injury or occupational disease,

• full weeks of Family and Medical Leave Act (FMLA) leaves of absence,

• full weeks of time lost for vacation during the plant vacation shutdown weeks,

jl ;ttL; ~ 1,). v;;Z:?2

.I! )(1.\7 cba1/ 00126/3 .. 'Jj, a " '10/1/2011

COLLECTIVE a.llliGAINING AGREEMENT

• Bereavement, ~nd

"lilitary Ou::y.

ARTICLE IX, SECTION 2

Each increase will be effective at che beginnIng of the Eirst pay period following the completion of the number of '.>leeks of employrnent.

JL AIL, il 1

/1)(\',.\-, cbal/00126/ 'J \./ a

I." I' I i\ I \ , 'I' \ /: j ),' \

'.,..,( }O/1/2011 f"j \

COLLECTIVE BARGAINING .1\GREE1~EN"

Article IX, Section 3

Sectlon J. Increase Agreement

also be adEie4--\;;~he--ff\-i:-nimum and incremental rates.

Rate progression in spread rate classifications shall be as provided in the Merit Increase Agreement attached hereto as Appendix G.*

The application of spread rates for Appendix F (Skilled Trades) classifications shall be as provided in Section 2 of the Skilled Trades Supplemental Agreement.

*Reproduced in full beginning on page XX±4&.

JL ,1 ", ~bal/oo127

N/(fiylO/l/2011

COLLECTIVE BARGAINING AGREEr4ENT

Article IX, Section 4

Sect ion "*. Go~b-i--v-i:ng l\llm .. anee Inflation Bonus ______ ~ _____ ~ __ . __ ~_~ ________ L~ __ _

with the

• • • Act • On leave of absence beginning not earlier than ninety (90) days

prior to the eligibility date.

(2) In addition, should the International Union, UAW-Ford Department raise any question of equity in application regarding specific employees, the Company agrees to meet on such cases in order to review the facts.

(al Paj'ffient of AlloHance, Bffect on Other Payments

Effective on the Bffective Date, and thereafter during the period of this Agreement, each employee covered by this Agreement shall receive a cost of living allowance as set forth in this Section. This provision does not apply to employees co,.rered under Appendix V of this Agreement.

'FRe-cost of living allo'n'ance shall not be added to the base rate for-any classification, but only to each employee's straight time hourly earnings (including the earned rate only of employees on an incentive basis of pay) .

'.:'hc cost of living allmmnce shall be taken into account in com.puting overtim.e and shift premiums, and in determining call in pay and pay for vacations, umt'Orked holidays, jury duty, bereavement and short term military duty.

(1) '1J;J .r~,7

seas-EtHa-11'l adjust.ed) publishea-b-rt~au of Labor Statistics t±982 J 1 ~ lOO}-7

Hp~by the parties. If the Bureau of Labor Statist.ics changes th-e fe.r-fft-er-the--basio ofcalculat:ing t~e-1C, the parties agree to ask: the Bureau t~Jw available I for the life of this }',grecmen£,----a monthly Indcx in its prescnt fOFm and calculated on the same basis as the IndelE for July, 20~

--~justmento during the period of this Agreement shall be made at the follQ'.~in<:J times.

!~ __ ~ ;b

\ ,I I '--

Consumer Price Index

October, 2007

-_ .. _ ... _"- .. ~ t hre e o·aa,.J;l"'eOfn'Hd:l<a:<-:rE--'mmeo'flntttJohr-----ffiffi€lo'flntttcl'hr-..-:ibln't1t8ee.rr¥voaac±1",or-.;t:Hh"B,e~rreeoaacEf'ttOEeO£r

(1) The amount of coot of living allmiance beginning on the Effective Date, and ending December 2, 2007 shall be ten cents (10~) per hour.

(2) Effective December 3, 2007 and for any period thereafter as provided in Subsection (e), the east of living allm.'ance shall be in accordance ~vith the follmling table:

Three Hanth .werage Coot of Living Consumer Price Index Allmmnce

197. 24 197. 31 6~ per hour 197. 32 197. 39 7~ per hour 197. 10 197. 47 8~ per hour

and so forth calculated in accordance ',lith the Letter of Understanding signed by the parties.

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1;/1 ! /'.~ J

Article IX, Section 1 (conEd)

the computed average shall be rounded to the nearest 0.01 ~

point_

(4) In no event-w-H-l--u-declinc in the Three P10nth PtVerage IndeJE belo',I 197 _ 23 provide the baois for a re6tl€-aen--in the '",age scale by job classification.

(5) (i) For each increase to the cost of living allO'.Jance beginning on December 3, 2007 and continuing until the remainder of the se',renteen (17<;:) COL.". deferral required under the conditions of i'ohe settlement agreementln the Hard"dcl~ ease has been recovered, the amount of increase payable to employees shall be reduced by five cents (50) per three month period, or by the amount of the increase whichever is leso. Thereafter, for each increase to the cost of living allm,rance, the amount of increase i'oo employees ,till be reduced by t,,,,o cents (20) per three month period, or by the amount of the increase whichever is less and continue into perpetuity.

+i-i+-m For each increase to the cost of living allo'.,rance during the fifteen three month periods beginning December 3, 2007 and ending June 6, 2011, the amount of increase payable to employees shall be reduced by four cents (4<::), or by the amount of the increase 'dhichever io less. The sum of the diversions

( iii) during this period "Jill continue into perpetuity. For each increase to the coot of living allmvance during the fifteen three month periods beginning December 3, 2007 and ending June 6, 2011, the amount of increase payable to employees shall be reduced by four cents (H), or by the amount of the increase whichever is leso. In addition, in the quarter after the seventeen cent (179) COLA deferral as referenced in (i) above is completed, the amount of increase payable to employees shall be reduced until parity ',,,ith CH is achieved prior to any other diversiono being ta!ten. Once parity is achieved, this diversion will continue into perpetuity.

'Fhe diversions referenced herein ,,,'ill be applied in the order as referenced above.

Follo'ding the adjustment for the three month period beginning June 6' , 2011, the sum reduced during the fifteen periods shall be subtracted from the cost of living allO't"ance table and the table shall be adjusted 00 that the actual 'Fhree Month ."""erage Consumer Priee IndelE equates to the _allmmnce payable during the period beginning June 6, 2011.

".1 ,_:J

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b E Eft Ia . . ,HJ oli OHa of the pay pe£i~ appropriate IndelE on ore oreeegl:Hnl:

the east OE living allo-"HaH€e due to any revision 'dhich later fftay lae made in the published figures uoed in the ealculation OE the ConSUfftcr Price :fndex Eorany month on the basis of 'dhich the allmvance shall have been El:eterfftined.

IE) Transfer of Portion of Cost of Living Allowance Into Base

affective OH the Effective Date, ~ro dollars aHd three ceHts ($2.03) shall lae added to the base hourly rate for each classiEicatioH t

iHcludiHg l'llinimum and maldmum rate for spread rate classifications. An

equal amount of T,,,o dollars aHd three cents ($2.03) shall be deducted Erom the T' .. 'o dollars aHd thirteen cents ($2.13) coot of living allO'fo'ance '"hich '.o'a&-in effect immediately prior to that date, and thereafter the coot of living allowance shall be computed in accordance ,dth Subsections (b) I (c) and (d) of this Section.

Adjuotments in the base rate used for the purpose of incentive pay calculation by reason of the portion of the cost of living allowance transferred to base hourly rateo under thio Subsection 4(f) ahall be ao agreed upon in local negotiations at those Company locations having incentive plano.

COLLECTIVE BAI<GAINING AGREE~~ENT

~rticle IX, Section 19

Section 19. Bereavement Pay

When death occurs in 's immediate family (i.e., current spouse; parent or st or great-grandparent; parent, s~epparent or grandparent or great-grandparent of current spouse; child or stepchild; brother, half brother or stepbrother; sister, half sister or stepsister; grandchild) a seniori ty emp , on request, will be excused for any chree (3) scheduled days of work or any five (5) regularly scheduled days of work in the case of the death of an employee 1 s current spouse, parent, child, stepchild, or in the case of multiple dea~hs of members of the employee'S immediate family (or for such fewer days as the employee may be absent) during ~ three (3) days or five (5) days in the case of the death of an employee's current spouse, parent, child, stepchild, or in the case of mult deaths of members of the employee'S immediate family (excluding Saturdays and Sundays, or, in the case of seven-day operations, excluding days off) no later than the date of

the death provided the employee attends the funeral or ceo After making written application therefore, the employee shall receive pay for any scheduled hours of work up to eight (8) per day for which the employee is excused (excluding Saturdays and Sundays, or, in the case of seven-day excluding regular days off) provided the employee attends the funeral or~~vi~~. In the event the body of a member of the employee's immediate family is not buried in Continental North America solely because the death has physically destroyed the body or the body is donated to an accredited North American or medical center for research purposes, the requirement that the employee attend the funeral 2.E~service: will be waived. Payment shall be made at the employee's regular straight-time hourly rate on the last day worked (or I in the case of incentive employees, the employee's average straight-time hourly earnings, including incentive , for the last four (4) pay periods worked immediately preceding the week prior to the week in which the absence commences) inc::"uding shift premium and seven-day operations bonus, where applicable, but excluding overtime and any other premiums. Time thus paid .,;ill not be eounted as hours 'H'orked for purposes of overtime.

CBA1/14~'/l-, ~ c 10/ 11

COLLECTIVE BAECAINING AGREEMENT Article IX, Section 22

Section 22. Paid Holiday Plan

(d) General Eligibility Rules

Unless otherwise provided herein, employees who meet all of the eligibility rules below will be paid eight (8) hours' pay at their regular straight-time hourly rate including shift premium and seven-day operations bonus but excluding overtime premium for:

November 1G4, 20B-+ll

November n!, 20B-+11

November 2c3-~ , 209-+11

December 246 20~FH1

December 257, 209-+11

December 2G~, 209-+11

December 2+9, 20B-+11

December 2-S3 0, 209-+11

8eBember 3~9-+ January ±~, 20GB12 January 6 20&&12 Mttre~ ~pril 6, 20GB12 Ma-F€fr-.24-;-~

May 26!,!, 20-G-a12 July 4, 20-G-a12 September 20~12

November 46, 20-G-a12

November 14§., 20~12 November 2+2 20-G-a12

November 2B-l, 20~12 December 24, 20&&12

December 25, 20-G-a12 December 26, 20-G-a12

December 292, 20-G-a12

December ~28 20GB12 December 31, 20-G-a12

January I, 20~!l

January 2, 2009 January ~19, 20~1l April 10 March 29, 20~13

May , 20~13 J:-11y 3-!, 20&913

September +?:., 20@13

November , 20@13

November 26.§., 20@13

November 2+2.r 20@13

Cece:nber 24~, 20@13

December 254, 20~13

Dece:nber 2B-5, 20@13

December 296, 20~13

Veterans Day, Thanksgiving DaYr Day After Thanksgiving, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Martin Luther King, Jr. DaYr Good Friday, Day After Easter, Memorial DaYr Independence Day, Labor DaYr Federal Election DaYr Veterans Day, Thanksgiving DaYr Day After Thanksgiving r Christmas Holiday Period, Christmas Holiday Period r Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Martin Luther King, Jr. Day, Good Friday, Day After Easter, Memorial Day, Friday Before Independence Day Labor Day, Veterans Day, Thanksgiving Day, Day After Thanksgiving, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period,

I :::~~::6~27'(1;'U, ')" J, ~Christmas Holiday pe:iOd~y ,

,} i/ ('" -- 10/1/2 011 . '\ w,-svJ i /11 . 4:~-- t" _ /rc 12 . I -JO( ~'V V L" XI( .~ \I~ I uUJ t:.J

December , 200-9:!2

JanuaC'! 1, 20104

January 1-8-20, 201o.i

P,pril :H§., 20104

,'1ay 3+26, 2010':!.

July 5-'!" 201g.~

September ,20104 November a!, 201G~

i'lovember 15-4, 20104

November 25-7.., 2010.4

November 268, 20104

December 24, 2019-4

December 2=7-~, 20104

Oecember 28-6, 20104

December 29, 2019-4

December 30, 20H}4

December 31, 2019-4

January 1=7-~, 201±5 April ~2, 20l±~

May 342.5, 20

July 42, 20H~

September 5-7, 201±~

Christmas Holiday Period, Christmas Christmas Holiday Period, Martin Luther King, Jr. Day, Good Friday,

l'lemorial Day, Monday After Independence Day. Labor Day, Federal Election Day, Veterans Day, Thanksgiving Day, Day After Thanksgiving, Christmas Holiday Period. Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period, Christmas Holiday Period,

Christmas Holiday Period, Martin Luther King, Jr. Day, Good Friday, Day After Easter, Memorial Day,

Independence Day, Labor Day,

The parties also agreed that eligible employees shall receive up to two (2)

Family Days. Eligibility, scheduling, and payment for Family Days shall be as described in a Letter of Understanding on that subject dated XX/Xx/XXXX November 3, 2907, and signed by the parties.

Employees must meet the following eligibility rules to receive holiday pay:

(1) The employee has seniority as of the date of the holiday;

(2) The employee would otherwise have been scheduled to work on such day if it had not been observed as a holiday; and

(3) The employee must have worked the last scheduled working day prior to, and the next scheduled working day after, such holiday within the employee's scheduled workweek, except in the case of holidays which fall in the Christmas holiday period.

(i) In the case of the Christmas holiday period, in 20B+~, starting December 24~ through the following January ±~, in 20GS12, starting December 24 through the following January ~~, in 20~13, starting December 24l through the following January 1, in 20104, starting December 24 through the following December 31 20105 a seniority employee absent without excuse on both the last scheduled working day prior to and the next scheduled working day after a Christmas holiday period shall be ineligible for holiday pay for all of the holidays within the Christmas holiday period. A

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:-l'rl"-Lj(" All. i.): .' ~

seniority employee absent without excuse on either the last scheduled working day prior to or the next 3cheduled working after a Christmas holiday period shall be ineligible for one (1) oE the holidays Eor which he would otherwise be eligible in the ~hristrnas holiday period, but shall, if otherwise e1 . receive pay for the remaining holidays in the Christmas holiday period.

(ii) Employees will be called in to work only in emergencies on the following days which are not paid holidays under this Agreement:

Saturday, December 22:4, 20fFHI Sunday, December ,20&+I~

Saturday, December 2-93J,., 2

Sunday, December 30, 2007 Saturday, December 2+2, 20~~~ Sunday, December 2&3, 20~I2

Saturday, January 3 , ~ Sunday, -January 4, 20M Saturday, December Sunday, December

Saturday, Sunday,~~~~~~,-~~}-~~~~ml~~ __ 33~~~l Saturday, December 2&~, 20103 Sunday, December 2G~, 2010l Saturday, January 1 December 27, 201±4 Sunday, January 2 December 28, 2011-4 Saturday, January 3, 2015 Sund~~~I"l\l_ary 4, 2015

Employees shall not be disqualified for holiday pay, if otherwise eligible for such pay, if they decline a work assignment on one (1) or more of the above days.

The foregoing provisions shall not apply to (I) employees assigned to seven-day operations; and (2}employees who perform work on Sunday which is a part of the No. 1 shift, Monday.

(b) Sunday Holiday

When any of the above enumerated holidays falls on Sunday and the day following is observed as a holiday by the State or Federal Government, it shall be paid as such holiday.

(c) Saturday Holiday

When a holiday falls on Saturday, eligible employees shall receive holiday pay provided they have worked the last preceding scheduled work day within the week in which that holiday falls.

(d) Employee on Layoff or Sick Leave

Seniority employees who have been laid off in a reduction of force or Ail, who have gone on sick leave during the workweek prior to, or during the

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(1/ J '/

workweek in which the holiday falls shall receive pay Eor such holiday. A seniority employee who is laid ofE during the second workweek prior to a week in which one or more of the holidays in the Christmas holiday period falls, and who worked his last scheduled working day prior to "uch l.:tyof f, shall, if othenlise el , receive pay Eor the hoI idays Ealling ~ithin the Christmas hoI period. Seniority employees on layoff or sick leave of absence when the hoI (s) occurs who return to 'r/ork following the holiday (s) but during the week in which the holiday(s) falls shall receive pay for such holiday(s) .

A seniority employee who is laid off in a reduction in force and who qualifies for Christmas hoI pay as provided in this provision, and who also qualifies for Christmas holiday pay as provided in Appendix K

Memorandum of Understanding Temporary Part-Time Employees, will be provided the greater of the two Christmas holiday pay entitlements, but noc: both.

COLLECTIVE BARGAINING AGREEMENT A.rticle IX, Section 22 (al (contd)

(I'.:) Employee on Other Leave

[f an otherwise eligible seniority e~ployee is on an approved leave of lbsence (other than sick leave) of not more than lS days (total duration, including any extensions) during which a holiday occurs, he shall receive holiday pay for such holiday. A seniority employee on a personal leave of absence which expires during a Christmas holiday period, shall. if otherwise eligible. receive pay for the holidays in the Christmas holiday period which fall (1) after the final day of such leave, or (2) on and after the date he notifies his plant of his availability for work, whichever is later.

(fl Employee on Vacation

When one of the above holidays falls within an eligible employee's approved vacation period, and he is absent from work during his regularly scheduled workweek because of such vacation, he shall be paid for such holiday. A seniority employee who requests and is granted a vacation which includes the last scheduled working day prior to a Christmas holiday period and who also requests and is granted a vacation which includes the first scheduled working day after such Christmas holiday period, shall. if otherwise eligible. receive pay for the holidays which fall in such Christmas holiday period, provided the employee works the scheduled working days immediately preceding and following his vacation when such scheduled working days are within the workweeks which include what would have been the employee's last scheduled working day before and first scheduled working day after the Christmas holiday period if he had not been on vacation.

(g) Seven-Day Operations - Eligibility; Effect of Holiday Work

Employees working on necessary continuous seven-day operations shall receive holiday pay in the event the holiday falls on one of their regularly scheduled days off and they meet the other eligibility requirements of this procedure for paid holiday time.

When employees working on necessary continuous seven-day operations are scheduled to work on a holiday which is a regularly scheduled day of work and do work, they shall not receive holiday pay under this procedure (except for the number of hours less than 8 (i) that he shall have been requested to work or, if the following is greater, (ii) that he shall have worked), but shall be paid for time worked in accordance with Section 12 of this Article.

(h) Other Operations - Effect of Holiday Work

Employees not working on seven-day operations who work any of the above holidays shall receive full holiday pay (if otherwise eligible) in addition to the premium payable in accordance with Section 11 of this

/ ~I Article. AI. cbal/OI46/S

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(;) ?ailure to Perform Holiday Work A8si~~ent

who have accepted such holiday work assignment and then fall report Eor and perform such work. without reasonable cause

e to Management. shall not receive pay for the hol

(i) Incentive Employees

The hourly rate for an employee who is under an incentive plan the week in which the holiday(s) falls shall be his average stra tlme hourly including i;1centive earnings and shift premium, but other premiums for the last four pay periods worked immediately the week prior to the week in which the holiday(s) occurs.

(k) Effect of Unemployment Compensation

If, for a week which includes one or more holidays which fall after December 23 but before the following January 3, an employee supplements his holiday pay for such holidays by claiming and receiving an unemployment ion benefit or by claiming and receiving waiting period credit, to which he otherwise would not have been entitled if such holiday pay had been treated as remuneration and considered disqualifying income for unemployment compensation, a deduction of the lesser of the following amounts will be made from the employee's earnings from the

(1) An amount question, or,

to the employee's holiday pay for each week in

(2) An amount to either the unemployment compensation paid to the employee for each week in question or the unemployment compensation which would have been to the employee for each week in question if it had not been considered a waiting period.

A~ticle !Z. Section 28

SectioJ 28_ Moving Allowances

.... ~,t

(a) Eligibili~y

?"n viho is on t:.he active emp::'oyment roll on or a£cer September 1. 1961. shall be eligible for a i':oving Allol-!ance if l:e/she is

thereafter offered and accepts a transfer from one plant of t~.e Company (hereinafter called the original Plant) to another Plant: of t-he Company (he~einafter called the new Plant) if:

(i) the new plant is at least fifty (50) miles distant from the original Plant and

(ii) he/she files an application for a Moving Allowance not later than six months after the first day he/she worked at the new Plant and has not applied for a Separation Pa:ment under the Supplemental Unemployment Benefit Plan_

(b) When employees are relocated, they will be given a choice from the following Relocation Packages:

0159/1

jl-\,;\1 , ~'-.Jv"

(1) Option 1-Enhanced Relocation:

Employees will receive a Relocation Allowance up to a maximum of $30,000, $6,000 of which -will be provided as a signing bonus to cover miscellaneous up-front cash expenditures. An additional amount of $16,000 will be paid to the employee at the new location_

In addition, spousal relocation assistance will be provided_

Arter one (1) year of employment, employees may receive $8,000 if they com:inue to be employees of the ne\'l location

Employees -,-lho are placed in accordance with Appendix N and accept the Enhanced Relocation Allowance \-:i11 not be eligible to initiate another in zone or out of zone tl-ansrer as an active employee for a of 36 ;r,ontns 1.:-nless the employ-eels status changes to laid off or Protected In the event the plant has employees on permanent- .indefinite layoff G'=-p-l-ae€-"l-o:ec-P-]<e-~~d **B5 Hith no likelihood of recall into t~_e aC1:be -,'Joridorce, the 36 morrth ~ill be eliminated.

~mplo!ees receiving c~e Saharlced Relcc~tiQ~ ~llQ~a~ce will terminate cheir seniori at all other Fo~j Ioea

eligible f()~- recall/:re~:i Basic

Deta.iled iT!!02.712 t iO:-l regardi.::g pa;.rmer1c.s 0.=-'.8. RelQcat

t.he 2lli~an.ced Re loc-a r:. iGfl T~llc)"::ance ~·:i 11

~e made available to employees.

(r~) OptiOD ~~-Basic Relocation:

Employee will receive Relocation AIIO'.-lance in the amount of

$4,800

The employee who accep::'s the Basic Relocation to for retc:.rn to Basic Unit as pro'!ided in n.rc:icle

VIII, Section 1 (b) (iil , after working at of relocation for a of six (5) months or upon indefir:i:e frem the plant of relocation_

JL CBA1/160 a 10/1/2011

COLLECTIVE 8ARGAINH!G :\Crn.:::::r,lENT

Article IX, tlon 29

\ \j\}--0 L'J~~

COLLECT IVE i3ARGAINING AGREEt·1ENT

Article X:, Section 2

Section 2. Expiration Date

This Agreement and rela~ed supplemental agreements shall continue in full force and effect until 11:59 p.m. September 1'1, ~ 2015.

Artie e XI, Section 3

Section J. Notice co ~odify or Terminate; Automatic Renewal

This Agreement shall continue in effect for successive yearly periods 3.ft:.er September 14, 24-±-± 2015, unless notice is given in 'llriting by ether pa .. rty at leasc 3ixcy (1,0) days prior to September 14, :J-G.-l-t 2015,

or ilny .. mniversary date thereafter, of its desire to modi terminate this Agreement.

amend or

IE such notice is this Agreement shall be open to modification, amendment or termination, as such notice may indicate, on September 14, 2ti-H 2015, or the subsequent anniversary date, as the case may be.

CO~U;;CTI'/E DARGAIN ING AGREE;'IENT

Artic e XI, Section 4

Section 4. Addressing of Notices

~rot Lces st:a~l be in 'Nriting and shall be sufficient if ent 0'1 mail a.ddr,=ssed, E to the Union, to International Unlon, United j\utomobile Workers Qf Arnerica,

8000 East Je ferson Avenue, Detroit, ~ , 48214, or to such other address as the Union shall furnish to the Company, in writing; and, if to t~e Company, to Ford ~-1otor Company, Dearborn, Michigan, 18121 1-&9-9 48126

- 2701, or to such other address as the Company shall furnish to the Union,

:n writ

k * * * *

;r 1 CEAl/176

/ O(ScriO/1/2011

COLLECTIVE B.Z\RG.1\INING AGREEr1ENT

IN WITNESS ~HEREOF, the parties hereto have duly executed this Agreement as oE first above written.

William C. Ford, Jr. Alan R. Mulal1y

Fields

Joe Hinrichs James Tetreault William P. Dirksen !3:J:._ck p()~ Jack L. Halverson Sarah B. Orwig Frederiek TO!1€'!.Y Livia r!ezza Ken tlcfarlane Jeff C. Wood Ken Williams Helmut E. Nittmann }'\flU G a e 1 Elizabeth A. Peacock Keith A. Kleinsmith

International Union

Ron Gettelfinger Bob King

Wendy Fields-Jacobs Garry Hason Dave Curson Greg Drudi Chuck Browning Joseph Carter Dan Brooks Joe Gafa

jL CBA1/177 c 10/3/2011

FORD MOTOR COMPANY

Jim Larese James E. Brown Sandy r:;-:-Krus Steve Majer Richard J. KrolilcQ',wki Ted p,.. Sta'.IikmlSlti Gregory M. Stone

Stephen M. Brian Narren

UAW National Ford Council

Joel Goddard, Subcouncil #6 Hike Abell, 8ubcouncil #2 Jeff Washington, Subcouncils #2 &#3 Bernie Ricke, Subcouncil #1 Dmrino Ell Amin ¥lilson, 8ubeouneil#1 Dave Berry, 8ubeouneil #2 Chris Crump, 8ubeouneil#3 Chris Viscomi, 8ubeouneil #3 Charlie Gangarossa, 8uboouneil #4 Tim Levandus]ty, 8ubeouneil #4 Johnny VarolIan, Subcouncil, #5 Jaff Terry, Subcouneil#5 Jodey Dunn, Subcouneil #G Dave Rogers, Subeouneil #7 Scott Eskridge, Subcouncil #2 Dwayne Walker, Subcouncil #2 Anthony Richard, Subcouncil #1 Larry Brdak, Subcouncil #3 Mike Whited, Subcouncil #3 Jerry Lawson, Subcouncil #4 Tony Vultaggio, Subcouncil #4 Dave Mason, Subcouncil #5 Dan Weaver, Subcouncil #5 Tom Kanitz, Subcouncil, #6 Matthew Barnett, Subcouncil #7 Fnderson Robinson Jr., Secretarl

:he date

APPENDIX J

(MEMORANDUM OF UNDERSTANDING -CONTINUOUS IMPROVEMENT FORUM)

The Company ~nd the Union ze the interdependent relat of ,P131ity, operating eff , employee empowerment, and job security. E'ur::.hermore, the concepts of employee empowerment ._~_ ......... .L. ____ .... -'-...:..c:.'-'--'~~_

"continuous improvement" are supported fully by the National Ford Department and the Company. For Ford to remain a viable competitor and provide the opportunity for employee job security, every location must improve continuously to enable the Company to achieve its objective of being the "One Manufactur .We-F±d~'f

Automotive Company. Each location must strive to meet and beat the competition. The support of and dedication to the work force are essential. Accordingly, the parties to work together, F&rum prineip-±e-s-;- on continuous improvement initiatives at every organizational level to improve quality, operating effic including plant cost performance, work relationships, effectiveness job security, and quality of work life.

DUring these negotiations, the parties agreed this Memorandum is an on-going agreement, "1 document", permitting the parties to tively evolve and work towards continuous improvement outside the normal collective bargaining process. This Memorandum of Understanding will not concurrently with the Collective Agreement. Accordingly, the provisions of Article X, Section 10 and Article XI, Sections 2,3 and 4 will not apply to this Memorandum of Understanding.

To implement these and objectives, Ford and the UAW agree that the following committee structures will be the focus of cooperative efforts toward our common goal to improve the effectiveness of our operations, drive standardization and remove barriers to improvement and teamwork, increase job opportunities and fully utilize the work force.

A. Senior Advisory Continuous Improvement Forum

To an operational focus on continuous improvement, a Senior Advisory Forum is established comprised of senior Company Manufacturing

Management, senior members of the Labor Affairs Office and senior leadership of the UAW National Ford Department.

The Senior Advisory Forum's role is to provide leadership by:

giving direction to the National and Improvement Forums;

ions Continuous

a strong bond among all levels of the organization to empower employees to meet the Company's competiti'le chal

zing the entire seated objectives and ·jetermination;

\J(" f' i j

ion to move toward achieving tandardization with steadfast

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".~/? ~. ~TT1'?, IL \ t";£~'l

he ing Gpen communic~tion channels to share information;

discussing the Company's general operations, business developments and opportunities at each location;

strongly encouraging the local parties to work together to ement continuous improvement initiatives, including the

delivery of plant total cost objectives;

jointly providing ion of local continuous improvement successes (e.g., joint recognition letters, joint plant visits, and related activities); discussing the importance of job preservation and job creation;

jointly studying hourly human resources needs, trends, developments, concepts, etc., in industry and elsewhere; and

meeting semi-annually (in the first and third quarters) to review continuous improvement progress including local improvement plans, and to discuss new continuous improvement initiatives that may have an impact on a significant number of hourly employees.

B. National Continuous Improvement Forum

To provide a working level focus on continuous improvement, a National Continuous Improvement Forum is established to focus on continuous improvement efforts under the provisions of this Appendix, including Exhibit 1 and Exhibit 2, and Appendix M. This forum will consist of members from the Company designated by the Company's Vice President Labor Affairs, and from the Union designated by the Vice President and Director of the UAW- Ford Department.

The role of the National Continuous Improvement Forum is to:

report progress to the Senior Advisory Continuous Improvement Forum, share successes and discuss areas requiring reinforcement;

support and encourage the local parties to ~ake improvements on a continuous basis;

encourage and support the concept of team work as a fundamental pri~c of doing business;

ser'!e ,.15 d depository for Gollectir.g "S1JCCeSS stories" and ~.J/~/ infcrmation "nd disseminating them to 10caci,)ns that :leed /v

of hew pr.::;blems ha'Je been reso l'/·::d successful 1 ':Y~~,/' ~

i~\v~:::=>: ~O;\" ~) vf~ j\~~~ lil--Til '<, 1 (L ~ \ 1\/

'flsit lccat.ions upon eequest dnd offee on-site assistance bj'

meeting jointly with local committees, in conjunction with the UAW National Ford Depaetment Servicing Representatives and Plant Operations Managers or equivalent, to discuss the importance of job preservation and job creation dnd the reasons for the commitment to increase operatlonal efficiency, suggest possible

for consideration, and encourage good-faith efforts to develop and implement :neaningful local change;

provide coaching, mentor appropriate;

and support to local forums as

encourage local efforts to benchmark operations and practices of "best in-class" competitors and pursue mutually acceptable

methods of closing the competitive gap;

schedule periodic meetings between members of the UAW-Ford Department and the senior operating management of Ford Motor Company to provide greater information sharing and discussion with members of Management involved in important Company decisions;

monitor and provide support as required for implementation of GEompetitive local G~perating A~greements(CGAs); and

train the local parties on the aspects of this agreement provision.

C. Operations Continuous Improvement Forum

To further continuous improvement efforts at all levels of both the Union and Company organizations, the parties have agreed to implement Operations Continuous Improvement Forums. The Operations Continuous Improvement Forums will include key representatives of Manufacturing Operating Management and Human Resources, designated by the Company's Vice President of Manufacturing, and Union representatives designated by the Vice President and Director of the UAW-Ford Department. These forums will meet semi-annually (second and fourth quarters) at a minimum to discuss and review operation-wide matters and should function in alignment with the local, senior and national forums.

The role of the Operations Continuous Improvement Forum is to:

report progress to the National Continuous Improvement Forum, share successes and discuss areas requiring reinforcement;

scrongly encourage the local parties to work together to implement continuous improvement initiatives including the Gel of plant total cost objectives;

support. direction and encouragement for the local parties to make improvements

C'cib ~10

encourage dnd support the of team work!-j..r:~._~!~g~~r~ as a fundamental princ of rioing

b\~siness ;

maintain liaison with local forums and assist and encourage them as appropriate;

encourage local efforts to benchmark operations and practices of "best-in-class" competitors and pursue mutually acceptable

methods of closing the competitive gap;

discuss and review progress on implementing tive local g~perating A~greements+GGAs+from the local level; and

review continuous improvement progress, including local improvement plans, and discuss new continuous improvement initiatives that may have an impact on hourly employees.

D. Local Continuous Improvement Forum

At the local level, the joint forum will meet at least monthly and as of the work

Forum members will consist of equal Company and Union members, including the Plant Manager and other members of the Management operating committee selected by the Company, the Unit Chairperson, the Local Union President, if he/she so elects, and the Unit Bargaining Committee.

The Local Continuous Improvement Forums will review operational efficiency, consistent with this Appendix, including Exhibit 1 and Exhibit 2, and jointly develop and introduce continuous improvement initiatives. Elements in local continuous improvement initiatives can include:

identification of investments in improvements or equipment needed to product quality or operational effectiveness;

implementation of operating facility following the standards contained within the Continuous

concepts that support teamwork and result in operational efficiencies;

discuss the quality of the • s products and other 'Jeneral indicators of performance as '"ell as UAW Quality i ve issues of concern;

review opportunities for Local Continuous Improvement Forum bui , which would energize, sustain and support ongoing Continuous Improvement efforts, provide for further skill

and enhance the relationship;

3. ~ / f)2h..2/·1 (~ ~

\ ! Y .;.'1: 11

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V~~ \ \ .\ /' :q ) c ~" I 'Iff /1/

identification of total cost sav initiatives and efficIencIes;

discuss and review progress on implementing G£ompetitive local 0c:Jperating A~greements fGBAsi-;

~xploration of new forms of work organization that support dnd can be integrated into manufacturing systems;

procedures to review supervisory staffing and support for the initiatives in this l'1emorandum of Understanding;

local initiatives to promote employee attendance;

procedures for improved access by the Local Continuous Improvement Forum to product plans and other information affecting employment security and operational effectiveness, assuring confidential treatment of such information;

procedures and plans to review past outsourcing and outside contracting decisions, and identify opportunities for insourcing and new business;

exploration of initiatives to pursue job preservation and job creation;

implementation of work team concepts that fully utilize all employees;

the examination of alternative work schedules which provide greater employment opportunities;

discussion of the use of non-Company employees who would be contracted to provide development, training, and/or implementation toward continuous improvement which will be subject to prior approval of the National Continuous Improvement Forum;

understand the competitive gap to "best-in-class" competitors and pursue mutually acceptable methods of closing the gap;

provide a forum for discussion on the viability of the operations and means to implement necessary changes to allow Ford North America to create a competitive platform to be considered for future business versus the global alternatives;

address other matters that enhance continuous improvement initiatives that the local parties agree are appropriate for discussion.

Efforts of the local parties to improve operational effectiveness may change or waiver of certain agreements or practices. It is understood that any such changes or wai'lers would not be effecti'/e unless agreed to by the k·:al parties involved and approved in 'Ilriting by the Labor JI.ffairs Office of tIle Company and the National Ford Department of the Union. Such changes would

~~~ 1/0262/5

be effective only at the location(s) specifically des ted.

E. Principles/Process for Effecting Change

The parties agree that there are principles for effecting change to standardization across operations,

wlthout restricting local Management and the Union from designing alternative solutions for the location's competitive challenges7 with from

Conditioning the Environment

The support, empowerment and dedication of the hourly work force are critical factors to aChieving continuous improvement. The Company's most important resource and the source of its strength are its employees, who must be trained, trusted. relied upon, and given an ever-increasing role in making decisions to meet the Company's and Union's goals and objectives i3.~rt of a standardized work group/~eam structure.

The work force'S sentiments and beliefs are vitally important and should be secured and understood. Employees' trust and support can be gained by involving them in defining, participating in, and influencing decisions for the implementation of the assignment for which they are responsible. The way employees feel about management and each other, the things they focus attention on, their decision-making methods, and the expectations they establish for themselves directly influence the work they perform.

Effective Communications

Employee awareness of the Company and Union goals and their strategic plans for achieving those goals is important. Therefore, it is strongly recommended that Management at each facility share data relative to how the facility contributes to the Company's overall success. These data should identify positive and negative aspects of each location's performance, and should be shared on a regular basis.

Sharing data between the parties, open communications, and sensitivity to the concerns of each other are critical to building and maintaining trust. The local parties should collectively work to gain the work force's commitment to higher involvement and excellence.

The Plant Manager and Plant Controller will share with the Union Chairperson the total budget task that the plant is being assigned.

As each plant determines how to manage its task, plans will be .shared with the Plant Chairperson. The Union's input 'Nill be invited, especially as to additional or alternative ways the task can be met.

Workgroups will be encouraged to identify total cost savings and waste elimination ideas that may contribute to the pl~nt'3 task achievement.

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f)/:~ /11 I J\ .1 \)V--l~1§)S/ (;::() Q) 1~,[iJ ,~\l ~ C~/? \

Identification of Issues

When ng changes in existi~g agreements and practices, the proble~, precess, or system needing improve~ent should be clearly identified and its adverse impact on quality, customer satisfaction, job security, total cost or future business decisions should be understood. Data specific to the issue(s) being addressed should be shared and, if possible, the potential irnprove~ent quant if ied.

Guidelines

Having the work force participate in continuous improvement using teamwork is a fundamental principle for improving the entire operation and achieving the objectives of the business. Management and local union leadership should actively support the principles of employees working together, as well as being involved in identifying concerns and their resolutions. To this end, the local parties will commit to afford the opportunity for employees to participate and share their ideas in the plant's continuous improvement process. The structure and support of continuous improvement initiatives (e.g., forums) may vary by location and will be discussed on a regular basis by the local parties in the Local continuous Improvement Forum or in other meetings as appropriate.

The parties may, in certain cases, jointly set goals and objectives, strategically plan, measure the progress regularly, and communicate the results to the work force.

There should not be any intra- nor inter-plant competition for progress, but all locations should strive to improve their operation using appropriate benchmarking in order to determine opportunities for ongoing improvements. Resolutions of concerns addressed should be subject to change as business conditions change.

Local management and Union leadership must be involved personally and committed to bringing any agreed upon change to fruition.

Training

Before training is conducted, the training need and resources required to conduct the training should be clearly identified. The resources should not be reallocated without prior discussions between the lccal parties. The Company will ensure that necessary training, such as group problem solving, facilitation and instructional skills, effective listening and feedback, assertive communication, interpersonal skills, managing conflict, and diversity is provided on a timely basis to hourly employees, includin'J team leaders, group members, Union a.nd management leadership and others involved in the participative process. The local parties should Jointly select trainers or consultants based upon their proven tLlck recoc-d. These trainers or conmJ::'tants '~ollLi

·:1:ai./G262/7

9/29/11

prove to be 3 valuable asset in starting the improvement process. fuly

non-Company employees who will be contracted to provide training will be subject to prior approval of the National Continuous Improvement Forum. The approval wi I be based on the contractor'S credentials and proven trac~ record.

Because of the changing work force, the traditional role of the supervisor may change in the future to that of coach, innovator, educator and resource person; this transition will take time. Therefore, training members of supervision for this new role is important. All levels (supervisors, superintendents, area managers, union leadership and ) need to participate in training and retraining to implement the "new ways" of operating.

If required, training should be provided for newly appointed supervisors, union leadership and managers to ensure that progress 1S

not affected by leadership changes.

Utilize the skills. talents, and abilities of the skilled work force as an integral part of the production process. As such, they are a valuable resource to the continuous improvement work groups. Further training to enhance the abilities of the skilled work force will enable those employees to make an even greater contribution to these efforts.

(\ : \

\ b~).J\.J

APPENDIX J

EXHIBIT 2

Dear Mr.

During the 2011 negotiations the Union and Company had extensive disc~\lss~ons regarding the need to partner to deliver engaged and aligned work SLr-~ups7Eeams to a consistent standard, in all facilities, supporting the global_ manufacturing stra£e~

The parties recognize the contributions of our hourly workforce and a vision for fully integrated, motivated teams who work together to drive operational excellence and continuous improvement in support of "One Manufacturing - Best Iii.~theWorld". All work groups/teams will maintain and improve the business -against key objectives, within their span of control, and with the appropriate structure to support them.

The team leader rol~ is critical to each work group/team. They will be selected for this position through a jointly established process and will use standard roles and responsibilities to lead the team and continually improve the business.

E'or more automated areas, the parties agreed to the implementation of effective Manufacturing Work Groups(MWGs)comprised of production and skilled trade elllployees working together. The Company will not assign skilled trade team members to cyclical~production work. To ensure the success of manufacturing workgroups, a strong commitment to training is re<Ill.ire<!J2~ ~mployee, the Union, and the Company.

Manufacturing work groups will be modeled after those in place at the Ford of Europe, Valencia site. The parties will jointly develop a trainin5LEEQgram that provides the skills necessary forEE!plication of this model within North America. This pro9!am will be delivered in an efficient and cost effective manner utilizing o~-th,=.:-job, web-based, and/or classroom training, with the intent of delivering a program resulting in accreditation. Any new required production classification and wage rate within the manUfacturing work group shall be review!=d by the National Parties.

The Manufacturin~9.rk Group training..Erogram may include €!lements s\l.<:h_as work group effectiveness, improyin3...J?usiness results, technical skill~ including e~ent operation and other subjects deemed necessary. Training required to support manufacturing wor~groups will be administered comparable to the National Apprenticeship training program.

~bal/02~/

9/29/~_. f

11/L ,

t 9; 2'3/11

John Fleming. Executive Vice President 910balManufacturingand Labor Affairs

APPENDIX K MEMORANDUM OF UlIDERSTANDING

TEMPORARY PART-TIME EMPLOYEES

The parties ze that in certain circumstances, it may be necessary to utilize Temporary Part-Time employees to the work force. Where such , their rights and benefits shall be as indicated

belo'tJ:

T -'- . sions apply to Temporary Part Time employees hired

on or after File November 19, 2007 Effective Date of

1. Temporary part time employees are employees hired by the Company who shall normal be scheduled to work any two per week, in addition to premiulll ect to subparagraph B. below.

On the al or they are

are scheduled to work, may be scheduled for of the hours posted for the to which

They may be scheduled to work daily overtime or on full-time receive premium pay as such if di el e full time employees.

for which do not

C. The utilization of temporary part-time employees shall not be considered as an infringement of the rights of full time employees under the Ford-UAW Collective Bargaining Seniority may request to di employees who are be required to part-time

who are laid off or who are to be laid off ace temporary part-time . Seniority

utilized as temporary part-time will with the work schedule for temporary

D. Seniority who are utilized as temporary part time employees shall continue to accumulate seniority and shall be entitled to all the benefits of seniority employees except Supplemental Benefits (SUB). Such emp will not be entitled to earn SUB Credit Units on the basis of pay for such work and will not be considered to be on the active employme~t roll for purposes of credit Guaranteed A~nual Income Credit Units.

2. Temporary part-time employees shall be paid lthe Entry Level rate identified in Appendix Article I, III W-,- a,b,& c "Wages and Other

Matters" with ion. the regular rate for the jel3---tB

(}~ ~.

language moved from Appendix K, II,

30/1 ~"l

'J,,--jL ~/'3

o 28/2011 (51<.

3. temporary part time employee shall accrue no credit towards ring seniority. In the event such employees become full time employees, they shall be considered as rehires and shall receive no credit towards acquiring seniority for time were employed as temporary part-time employees.

4. The Company may discharge or terminate a temporary part time employee, in which case the employee shall have access to the Grievance Procedure in cases of claimed discrimination on account of race, color, national

, age, sex, or religion.

5. A temporary part time employee shall be entitled to Union ion, including access to the regular Grievance Procedure, in

cases of alleged violation of rights arising out of this Agreement.

6. For purposes of determining Union representation, temporary part-time employees will be counted only on days for which are scheduled to work. Representation will be determined by accumulating the number of temporary employees utilized each until the number reaches 200 at which time the Union will be authorized an additional representative for one (1) day.

7. A temporary part-time employee will be ect to the provisions of Article II and III of the Ford-UAW Collective Bargaining Agreement. Monthly dues for temporary part-time employees will be as determined by the National Ford Department, UAW.

8. A temporary part-time employee will not be ass to an operation expressly for the purpose of establishing a production standard on that operation; nor will hi performance be considered either in establishing a production standard or in a dispute over the production standard.

9. A temporary part-time employee shall not be covered by the Retirement Plan, the SUB Plan or the Insurance Program, except as provided in Sections ID, and 11 and 12 of this Agreement.

A. Such employees shall have only such , privileges, compensation or benefits as are express provided by the following provisions of the Ford-UAW Collective Bargaining Agreements:

Cbal/ 0/2 b 09/28/2011

Article IX, Section 5 Article IX, Section 6

Call-In Shift Premiums

Article IX, Sectio~ 11 -- HoI Premium Article IX, Section 15 - Medical Treatment

Hours -- Time Allowance Article X, Section 6 -- Lunch Periods

B. A seniority employee who is affected by a reduction in force and becomes a temporary part time will be eligible for a scheduled vacation and excused absence with respect to any unused vacation/excused absence hours at the time of the reduction in force. Further, in computing the number of weeks of enrollment and absences for purposes of determining vacation eligibility for the succeeding year, the of employment as a temporary part-time will be counted.

C. A seniority employee who becomes a temporary part time employee will be entitled, if otherwise eligible, to receive payment for the wage benefit payments in the following provisions of the Ford-UAW Collective Bargaining Agreement for days the employee would have been scheduled to work:

Article IX, Section 18 Article IX, Section 19 Article IX, Section 20

- Jury Duty Pay Bereavement Pay Short-term Military Duty Pay

10. Holiday Pay

A. A temporary part time will be eligible for holiday pay as set forth in Article IX, Section 22(a) of the Ford-UAW Collective Bargaining Agreement provided:

28/2011

( 1) The employee has actually worked at least 90 days the holiday (s) ;

(2) The employee worked the same day(s)as the holiday in the week prior to the week in which the holiday(s) falls and the employee would otherwise have been scheduled to work on such day if it had not been observed as a holiday; and

(3) The employee has worked the last scheduled working

to and the next scheduled working day after such holiday(s) within the employee's scheduled workweek. In the case of the Christmas hoI period, as defined in Article IX, Section 22 (a) (3) (i) of the Ford-UAW Collective Bargaining Agreement, a temporary part-time employee absent without excuse on both the last scheduled working day to and the next scheduled working day after such Christmas holiday period shall be ineligible for pay for all of the hoI fallon Monday or Friday within the Christmas holiday period. An otherwise eligible temporary part-time employee absent without excuse on either the last scheduled working prior to or the next scheduled working after a Christmas holiday shall be eligible to receive

~)LU .Pc(

hoI pay for only two (2) of the holidays for which would otherwise be eligible in the Christmas holiday period.

B. A seniority employee who is laid off in a reduction in force and becomes a temporary part-time employee will be entitled to holiday pay provided the meets the el lity requirements ouclined in A (2) and (3) of this paragraph; except that, if the employee i eligible for holiday pay under Article IX, Section 22(d) of the Ford-UAW Collective Bargaining Agreement the el lity rules in Subparagraph A of this paragraph shall not apply. However, should the employee quali for Christmas holiday pay as provided in this Memorandum and Article IX, Section 22(d), the employee will be provided the greater of the two Christmas holiday pay entitlements but not both.

C. A probationary who is laid off in a reduction in force and is utilized as a temporary part-time employee will be considered for holiday pay purposes as though hired ly as a temporary part-time employee with the number of days actually worked as a full time employee counted toward the 90 days

for holiday pay eligibility in Subparagraph A of this paragraph.

11. Insurance and H-S-M-D

A. Temporary part-time shall be provided life insura~ce coverage in the amount of $3,000 and accidental death and dismemberment insurance coverage in the amount of $1,500. An employee shall become eligible for such coverages commencing as of the first of the month following the month of hire or rehire. The Company shall pay the full premium for these coverages for any month in which an eligible employee receives pay from the Company for any time during such month. These coverages shall cease, if otherwise in effect, as of the day employment is terminated.

B. Temporary part time employees shall be provided hospital-medical drug coverages as specified in Section 1 of the

-BfB-3::-ac:r€iH:-ffle<a-±€i:I:±--€-OV'€'l"aiOle&- (bu t not drug coverage). Pill employee

commencing as of the first day of the eighth month following the month of hire or rehire (or earlier as required by law). The Company shall pay the full amount of the monthly premium for the following month's coverages for each month an eligible receives pay from the Company for any time during such month. These coverages shall cease, if otherwise in effect, as of the last day of the month in which employment is terminated. It is understood there shall be no duplication of benefits because of coverages provided under

company -medical-~ programs.

12. Retirement Plan

Economic Hatters Il lJith progression.

7\ ... I.

.B-.,.

Temporary employees "lill not be able to enroll sponsored dependents.

H-S-M enrollment is limited to the National Preferred Provider Organization (NPPO) Option, modified to inc~ude the cost-sharing requirements shown in the table below:

Annual Deductible In-Network

Single Family

Out-of-Network Single Fami

Co-Insurance In-Network

$300 $600

$1,200 $2,100

, \' , \ \i'

Out of-Network Out of-Pocket Maximum

In-Network

10% 35%

/~ ~', c~al/230/5 b 09/28/2011

~ 7J. ""'-0

Family

iLl $1,000 $2,000

Out of-Network S

GHiee Visit Co Insurance

No Limit No Limit

The Urgent Care Center co-payment and the Emergency Room co-payment will not apply.

ty for survivors to continue coverage, or for the subject continue coverage post-emp or for not in

active service will be limited to self-pay continuation that may be available under federal law.

Temporary employees are not el coverage in retirement.

for Company health care

retirement.Temporary employees are eligible to participate in the TaxEfficient savings Plan for Hourly Employees (TESPHE); however, they are not eligible for the Supplemental Contribution of an amount equal to $1.00 for every co~pensated hour into the TESPHE in lieu of Company contributions for health care coverage in retirement or Retirement Contributions.

21 2. Retirement Plan

Temporary employees shall not accrue pension benefits under any Companysponsored qualified defined benefit pension plan. However, service earned from date of hire by such employee as a temporary employee shall be recognized under such plan solely for eligibility, vesting and participation with respect to any benefit to which they may be entitled under such plan.

2 This language moved from Appendix K, I, 12

1/230/6

t 09 8/2011

~/''3 / D~,t:

APPENDIX M

MEMORANDUM OF UNDERSTANDING JOB SECURITY PROGRAM--(JSP)

The Company and the Union are committed to enhancing the job security of Ford Motor Company employees. The parties also recognize that such job security can only be realized within a work environment which promotes operational effectiveness, continuous improvement, and competitiveness.

Accordingly, the parties have agreed to this Job Security Program (JSP) , and have pledged to work together, consistent with this Program and other provisions of the Collective Bargaining Agreement, to enhance the Company's competitive position.

The cornerstone of the Program is protection against indefinite layoff for eligible employees, as eJcpressly provided herein a set of provisions including job placement and temporary income security - to assist employees who are impacted by Indefinite Layoff or who are otherwise defined as surplus.

I. SCOPE OF THE PROGRM!

Nothing in this Agreement is meant to alter the placement practices at MultiPlant Employment Locations, as defined in Appendix N, Attachment B.

A. EJEcluded Events

fJ ...... t-\) CBA1/0246/1

\\ a ~\\}\ 09/26/2011

No JSP eligible employee 'dill be laid off during the term of this }\greement except for the follm:ing reasons:

Volume related declines attributable to market related conditions as described in the attached letter, Job security Program JSP Volume Related Layoffs, not to exceed forty eight (48) 'deeks (inclusive of vacation shut dmm 'deeks) over the 1 i fe of the }',greement,

Acts of God and other reasons beyond the control of the Company,

Sale of a part of the Company operations as an ongoing business,

Layoffs of employees recalled or reassigned to fill openings knmm in advance to be temporary,

Model change or plant rearrangement.

±±I. JOB SECURITY ELIGIBILITY

A. All seniority non-Entry Level employees as of the Effective Date of the ~ 2011 ¥ere-UAW-Ford National Agreement are covered by this Memorandum. Such employees are considered IIJSP-eligible ll in that they are covered by the job security provisions of this Memorandum.

A plant by plant listing of the number of skilled and non-skilled employees covered by this Memorandum will be provided to the National Job Security, Operational Effectiveness, and Sourcing Committee iNJSOESCl and Local Job Security, Operational Effectiveness, and Sourcing Committees iLJSOESC~. This report will be updated monthly.

B. Discharged employees who are JSP~eligible will maintain their eligibility upon reinstatement.

e. I'lhen a seniority employee quits, dies, retires, or is placed on Salary, the seniority employee 'dill be replaced one for one as soon as possible, but within 30 days, as follows:

Non Skilled (1) Reeall a seniority employee first from layoff/in plant protected status from the facility, then from the preferential placement list or from employees othen:ise available through the placement hierarchy;

Skilled (1) Recall a skilled seniority employee from layoff/in plant protected status from the facility, then from the preferential placement list or othen:ise available through the placement hierarchy,

(2) Either (a) transfer a sll:illed trades employee v:orking in a non skilled job into the trade, or (b) place an .'\pprentice, or (e) place a retrained journey person,

(3) Hire a neve skilled trades employee

Issues arising from implementation of this Section II (e) '.:ill be referred to the National Parties for resolution. The NJSOESe is responsible for tracking attrition separately for non skilled and skilled employees.

The number of jobs out sourced minus the number of jobs insourced (as defined in }\ppendix P) 'dill be treated as attrition.

\~ CBAl/0246/2

a 09/26/2011

\ I JL.

Status \Jill be handled i n.-aeeerdanee ',{ith t~~J:eB

HHI. JOB SECURITY PROVISIONS FOR PROTECTED JSP-ELIGIBLE EMPLOYEES

A. The parties recognize that actions may occur during the course of

0246/3

chis Agreement that will cause the number of JSP Ie employees to exceed che Company's production requirements. ffle

following provisions shall apply to JSP-eligible employees who are placed on Indefinite Layoff or who are otherwise defined as surplus.~

Protected employee '"ho decline~ job offer "ill be placed on inactive status '",ith no Company p~ed--income or benefits.

remain in Protected Status until he or she receives an additional job offer. A Protected employee '."ho declines ~ additional job offer '.Jill be placed on inactive stat~.fr-.He Company provided income or benefits.

• A Protected employee ''''ho declines t' .. 'O job offers during t-h-ei-r t'dO year Protected Status period "Jill, upon declining the second offer, be placed on inactive status '"ith no Company provided income or bene-f.i~

1 o f1/~) \:JC 0

(~~ )L '\ J

GB. In-Zone/Out-of Zone Placements

CBA1/0246/4 a 09 2011

1. Placement of Protected Status JSP eligible employees will be in accordance with the provisions of Appendix N and associated Letters of Understanding.

2. Notwithstanding the above, available Protected fJ..t..a.t;.us--JSP eligible employees will be placed on a combined list of Protected 8tatus JSP-eligible employees in the same Preferential Placement Zone who are on Indefinite Layoff or who are otherwise defined as surplus Employees in -the same zone (the in-zone list). The number of ffi:l:€-h ~~number of employees 'liho have been laid off for the

ffoteeted JSP-eligible employees will be made available for in-zone placement in inverse order.

3. For placement purposes, employees on the combined in-zone list will be offered the opportunity to volunteer for openings; volunteers will be placed in seniority order. Absent volunteers, the junior employee on the combined in-zone Preferential Placement list must transfer to the new location.

An available Protected JSP-eligible employee mandatorily transferred permanently to another location may remain at the secondary location until afforded an opportunity to "return home" in accordance with Appendix 0 or until the employee is laid off from that location, at which time the employee may elect options available under Article VIII, Section l(b) of the Collective Bargaining Agreement.

4. Available Protected Status and JSP-eligible employees on Indefinite Layoff or who are otherwise defined as SUrplus will be offered the opportunity to volunteer for out-of zone opportunities.

Mr. JimmY$ettles Vice President and Director UAW, National Ford Department 8000 East Jefferson Avenue Detroit, Michigan 48214

Dear Mr. Settles:

XXjxxjxxxx

Subject: UAW Retiree Medical Benefits Trust

During these negotiations, the Company and the UAW discussed the prospect of diversions to the UAW Retiree Medical Benefits Trust ("VEBA") of amounts otherwise_payable in profit sharillg. Without makiIlg any commitment to the underlying concept, the Company expressed serious accounting, tax, legal, and oth:er concerns with respect to any such proposal. The parties agree to continue discussions on this topic and bring them to conclusion within 12 months following ratification of the 2011 UAW Ford Collective Bargaining Agreement to determine whetl1er these concerns can be adequately addr~ssed to the <::ompany's satisfaction. If the Compa,ny's concerns are resolved, then the parties are empowered to so divert 10% of such profit sharing payments annually.

Concur: Jimmy Settles

Very truly yours,

Rick Popp, Director Employee Benefits, Human Resources

2011 Uaw Ford Contract

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