AGREEMENTS - UAW | United Automobile, Aerospace and ... · Gloria Moya Rick Pack Angelique Peterson- ... Other agreements and plans reproduced in separate booklets are: ... required

♲ printed on recycled paperMICHIGAN

133

PRINTED IN U.S.A.

AGREEMENTSbetween

UAW®

and the

FORD MOTOR COMPANY

Volume I

Agreements Dated

November 5, 2015

(Ef fective November 23, 2015)

64348-UAW Ford Agreements Cvr 1up.indd 1 11/15/16 7:07 AM

Ford Motor Company and the UAW recognize their respective responsibilities under federal and state laws relating to fair employment practices.

The Company and the Union recognize the moral principles involved in the area of civil rights and have reaffirmed in their Collective Bargaining Agreement their commitment not to discriminate because of race, religion, color, age, sex, sexual orientation, union activity, national origin, or against any employee with disabilities.

Greg DrudiDon GodfreyDarryl NolenBob TiseoPhil ArgentoTracy AusenCarol BagdadyMatthew BarnettMonica BassDavid BerryCarlo BishopShawn CampbellJerry CarsonAlfonzo CashTiffany CogerGerard CoiffardSean CoughlinChris CrumpRonda DanielsonRocky Di IacovoGregg DunnJodey DunnBill EaddyBill Ellis

Roy EscandonJeffrey FaberBrett FoxKenneth GafaMichael GammellaRaenell GlennR. Brian GoffRuth GoldenJane GrangerAndre GreenJoe GucciardoDan HuddlestonMichael JosephThomas KanitzBrandon KeattsMichael KerrJerry LawsonJohn McCollumLisa MayberryArmando MedelRobb MillerWalter MillsGloria MoyaRick Pack

Angelique Peterson-MayberryGregory PoetReggie RansomLorenzo RobinsonMichael RobisonNick RutovicAngelo SacinoLes ShawMichael ShoemakerCasandra ShortridgeLarry ShraderGarry SommervilleJeffrey TerryKevin TolbertVaughan TolliverTony VultaggioDeneen WhitakerMike WhitedMark WilliamsMichael WoolmanSteve ZimmerlaRudy GomezDan Taylor

National Ford Department Staff2015 Negotiations

Jimmy SettlesVice President and Director

UAW Ford, Aerospace, Chaplaincy and Insurance


AGREEMENTSbetween

UAW®

and the

FORD MOTOR COMPANY

Volume I

Agreements Dated

November 5, 2015


♲ printed on recycled paper MICHIGAN133

PRINTED IN U.S.A.

NOTE:This booklet (Volume I) is being presented to you so that youmay know the terms of the agreements negotiated between theUAW and the Company November 5, 2015, and certain otherinformation which may be of interest.Specifically, the following material is presented in the ordergiven:

1. Collective Bargaining Agreement and Appendices A, B,C*, G, H, J, K, M, N, O, P, Q, S, T, U, V and W.

2. Settlement Agreement of May 29, 1949, as amended.3. Three-Day Transfer Agreement of August 15, 1949.

Portions of the Agreement reproduced here which are new orchanged from previous agreements are shown in bold type.Please note that any gender specific references in the Agreementlanguage shall apply to either sex.Other agreements and plans reproduced in separate booklets are:Volume II, the Retirement Agreement and Plan and the InsuranceProgram; Volume III, the Supplemental Unemployment BenefitAgreement and Plan, the Profit Sharing Agreement and Plan, theTax Efficient Savings Agreement and Plan, and the UAW-FordLegal Services Plan; Volume IV, the Letters of Understanding;and Skilled Trades Agreements and Letters ofUnderstanding.We hope you will find this booklet helpful.

JIMMY SETTLES WILLIAM P. DIRKSENVice President and Director Vice President, UAW, National Ford Department Labor Affairs

* Such an Appendix is a part of each local seniority grouping agreement; there isno Appendix C attached to this Agreement.

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COLLECTIVE BARGAINING AGREEMENT....................6Article I Recognition ........................................................7Article II Union Shop ....................................................9Article III Dues and Assessments ..................................11Article IV Company Responsibility ..............................15Article V Strikes, Stoppages and Lockouts....................24Article VI Representation ............................................25Article VII Grievance Procedure....................................45Article VIII Seniority and Related Matters ....................69Article IX Wages and Other Economic Matters ......98Article X Miscellaneous ..............................................134Article XI Duration Of Agreement ..........................139Appendix A, Assignment & Authorization for

Check-Off of Membership Dues ......................142Appendix B, Five Day Notice ......................................144Appendix G, Merit Increase Agreement ......................145Appendix H, Memorandum of Understanding

Voluntary Overtime............................................147Appendix J, Memorandum of Understanding

Continuous Improvement Forum ..................163Appendix K, Memorandum of Understanding

Temporary Part-Time Employees ..................207Appendix M, Memorandum of Understanding

Job Security Program (JSP) ..........................221Appendix N, Memorandum of Understanding

Preferential Placement Arrangements ..........230Appendix O, Memorandum of Understanding

Return to Basic Unit ........................................248Appendix P, UAW-Ford Memorandum of

Understanding Advanced Manufacturing/Product Intelligence and Sourcing ................251

Appendix Q, Memorandum of Understanding"Best-in-Class" Quality Program ..................262

Appendix S, UAW-Ford Memorandum of Understanding For the Health and Safety of Employees ........................................274

Appendix T, Memorandum of UnderstandingNational Programs Center; Education,Development and Training Program ............307

Appendix U, Memorandum of UnderstandingEmployee Support Services Program ............319

TABLE OF CONTENTS

Appendix V, Memorandum of Understanding UAW-Ford In-Progression Wage & Benefit Agreement for EmployeesHired on or After November 19, 2007 ..........330

Appendix W, Memorandum of UnderstandingAlternative Work Schedules ..........................341

Settlement Agreement, dated May 29, 1949 ..........................364Agreement dated August 15, 1949 Regarding

Three Day Transfers ....................................................365INDEX TO COLLECTIVE BARGAINING AGREEMENT

OF NOVEMBER 5, 2015 ..........................................367INDEX TO APPENDICES ....................................................380

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TABLE OF CONTENTS-Continued

COLLECTIVE BARGAINING AGREEMENT

On this 5th day of November, 2015, at Dearborn, Michigan, FordMotor Company, a Delaware corporation, hereinafter designatedas the Company, and the International Union, UnitedAutomobile, Aerospace and Agricultural Implement Workers ofAmerica, UAW, an unincorporated voluntary association,hereinafter designated as the Union, hereby agree as follows:

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ARTICLE I

RECOGNITION

Section 1. Recognition; "Contract Unit" (a) The Company recognizes the Union as the exclusive

collective bargaining representative relative to rates of pay,wages, hours of employment, and other conditions ofemployment, for all employees of the Company in theContract Unit.

(b) The term "Contract Unit," as used above and elsewhere inthis Agreement, refers collectively to the units of employeesat each Company location which were actually covered bythe last preceding Agreement between the parties as of theexpiration date thereof, except for such changes as may berequired as a result of pending actions before the NLRB;plus such additional units of employees as the parties mayagree to place under this Agreement pursuant to Section 4 ofthis Article.

(c) For the purposes of applying Subsection (b) of this Sectionto Company locations covered by the last precedingAgreement between the parties as of the expiration datethereof, the term "employees" shall be deemed at each suchlocation to include all categories of employees thereinactually covered by such Agreement as of such date, and toexclude all categories of employees therein not actuallycovered by such Agreement as of such date.

Section 2. New Classification and DepartmentsWhen a new classification or department covering workcomparable to that done by employees covered by thisAgreement is established in a plant or parts depot coveredby this Agreement, the Union will be notified andnegotiations will take place promptly as to whether suchclassification or department properly should be in theincluded or excluded group.

Section 3. Restrictions on Organizing Certain Employees (a) The Union shall not organize, or attempt or assist in the

organization of, executive employees, supervisory

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ARTICLE I RECOGNITION

employees, supervisors and any other individuals havingauthority in the interest of the Company to hire, transfer,suspend, lay off, recall, promote, discharge, or disciplineother employees or responsibly to direct them or to adjusttheir grievances or effectively to recommend such action;employees engaged in work relating to time study or otherIndustrial Engineering activities; employees engaged inHuman Resources activities; employees having access toconfidential information pertaining to employee and laborrelations matters; and other representatives of Management.

(b) Any dispute arising under this Section shall be appealed tothe Umpire for decision, and any National Labor RelationsBoard proceedings to which the decision of the Umpire onsuch dispute may be relevant shall be postponed byagreement of the parties until the Umpire shall haverendered such decision.

(c) Appeals under this Section shall be governed by theprocedure provided in Article VII, Section 9(b) of thisAgreement. Such appeals shall take precedence over allother cases, and shall be decided by the Umpire as promptlyas possible.

Section 4. Application of Agreement to New Units If it shall be determined (by either National Labor RelationsBoard certification or otherwise) that the Union is theexclusive collective bargaining representative for any unitof Company employees not covered by this Agreement(including a unit of employees in a new Company location),and if such unit comprises employees who are engaged inthe production of automobiles or trucks, or the productionand distribution of parts thereof, the production of which isnot generally regarded as part of a separate industry, thisAgreement shall extend automatically to such new unit;otherwise this Agreement shall not extend automatically tonew units for which the Union is determined to be theexclusive collective bargaining representative, but theparties shall determine by negotiations whether or not suchnew unit should be placed under this Agreement or shouldbe covered by separate agreement.

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ARTICLE I RECOGNITION

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ARTICLE II UNION SHOP

ARTICLE II

UNION SHOP

Section 1. Requirement of Union Membership Employees covered by this Agreement at the time itbecomes effective and who are members of the Union at thattime shall be required as a condition of continuedemployment to continue membership in the Union for theduration of this Agreement. Employees covered by thisAgreement who are not members of the Union at the timethis Agreement becomes effective shall be required as acondition of continued employment to become members ofthe Union on or within ten days after the 30th day followingNovember 23, 2015.Employees hired, rehired, reinstated or transferred into theBargaining Unit after November 23, 2015 and covered bythis Agreement shall be required as a condition of continuedemployment to become members of the Union on or withinten days after the 30th day following the beginning of theiremployment.

An employee who shall tender the initiation fees (if notalready a member) and the periodic dues uniformly requiredas a condition of acquiring or retaining membership shall bedeemed to meet this condition.

Section 2. Discharge for Failure to Tender Dues orInitiation Fee

Any employee to whom membership in the Union is deniedor whose membership is terminated by the Union by reasonof his failure to tender the periodic dues and initiation feesuniformly required as a condition of acquiring or retainingmembership shall not be retained in the Contract Unit. Noemployee shall be terminated under this Article, however,unless:

1. The Union first has notified him by letter addressed tohim at the address last known to the Union concerninghis delinquency in not tendering the periodic dues andinitiation fees required under this Section, and warning

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ARTICLE II UNION SHOP

him that unless such dues and fees are tendered withinseven days he will be reported to the Company fortermination from employment as provided herein; and

2. The Union has furnished the Company with writtenproof that the foregoing procedure has been followedbut the employee has not complied, and on this basisthe Union has requested in writing that he bedischarged.

Section 3. State RestrictionsThe provisions of Sections 1 and 2 of this Article shall bedeemed to be of no force and effect in any state to the extentto which the making or enforcement of such provisions iscontrary to statute or constitutional amendment of suchstate; provided, however, that wherever any such statute orconstitutional amendment is declared by the court of lastresort having jurisdiction of such questions to be invalid, theprovisions of Sections 1 and 2 of this Article immediatelythereupon will be deemed to cover the employees directlyaffected by such declaration of invalidity; and, provided,further, that in any state where the making or enforcement ofsuch provisions is lawful only after compliance with certainconditions precedent, Sections 1 and 2 of this Article shallbe deemed to take effect as to the employees concernedimmediately after such conditions have been complied with.

Section 4. Agency ShopIn any state in which Sections 1 and 2 of this Article are ofno force and effect under the provisions of Section 3 of thisArticle, at such time as the state's court of last resort havingjurisdiction of such questions may hold that employees maybe required to pay to the Union as a condition ofemployment an amount equal to the initiation fee andperiodic membership dues in consideration of the Union'sexpenses in acting as their collective bargainingrepresentative, such payments shall be a condition ofemployment in the same manner as membership is acondition of employment as provided in Sections 1 and 2 ofthis Article.

ARTICLE III DUES AND ASSESSMENTS

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ARTICLE III

DUES AND ASSESSMENTS

Section 1. Check-off of Membership Dues; EmployeeAuthorization; Revocation

The Company will deduct from the pay of each employeecovered by this Agreement, or notify the Trustee under theSupplemental Unemployment Benefit Plan to deduct asprovided in the Plan from each such employee's RegularSupplemental Unemployment Benefits, all current Unionmembership dues, provided that at the time of suchdeduction there is in the possession of the Company asubsisting written assignment, executed by the employee. Inthe case of each employee hired into the Contract Unit afterJanuary 1, 1974, and for any employee in employment priorto January 1, 1974 who is laid off after January 1, 1974 andauthorizes the deduction of dues from his/her RegularSupplemental Unemployment Benefits, the authorizationshall be in the form attached as Appendix A.

Assignments currently in effect will continue effective inaccordance with their terms; provided, however, that anyemployee shall have the right to revoke his assignment bywritten notice, signed by him, of such revocation receivedby the Company by registered mail, return receipt requested,(1) at any time before the end of the fifth day following theday on which this Agreement goes into effect; or (2) notmore than 5 days prior to the stated expiration date of thisAgreement set forth in Article XI of this Agreement.

Section 2. Authorization Forms The Company will explain the check-off arrangementsbetween the Company and the Union at the time of hiringnew employees and afford them an opportunity to signauthorization forms in the Employment Office. Previouslysigned and unrevoked authorizations shall continue to beeffective as to employees whose seniority is not broken;previous authorizations of employees rehired shall not beconsidered to be effective.


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Section 3. Pay Periods in Which Deductions to Be MadeThe Company will deduct current membership dues(including such initiation fees as may be a part thereof) fromthe employee's pay for pay periods ending in the calendarmonth, or will notify the Trustee under the SUB Plan todeduct such dues as provided in the Plan from theemployee's Regular Supplemental Unemployment Benefits,in a manner agreed upon with the Union. It is understoodthat deductions shall not be made from the first pay of a newemployee. The initial deduction from the pay of anemployee signing a new authorization shall be from thesecond pay period following the date of his authorization.

Section 4. Collection in Succeeding Months(a) Once each month, beginning with the month of January,

1974, the International Union may submit to the Company,not later than the tenth day of the month, tabulating cards (ormagnetic tape) containing the employee's name, socialsecurity number, local union, amount of Union dues(including initiation fee, if any) to be deducted and thespecified month or months (January, 1974 or thereafter) forwhich the Union certifies that (i) the specified dues wererequired for such month(s) under the International Union'sConstitution and Articles II and III of this Agreement and(ii) such dues were not deducted from wages earned in suchmonth(s) or from Regular Supplemental UnemploymentBenefits equivalent to forty (40) hours' pay received in suchmonth(s). An employee's name shall not be submitted in anymonth unless he is on the active employment rolls at thebeginning of such month.

(b) Union dues in the specified amount shall be deducted fromthe wages of each such employee, provided he has executedan Assignment and Authorization for Check-Off ofMembership Dues for the month or months for which and inwhich the deduction is made. Such deduction shall be madefrom the pay for the third pay period ending in the month,provided that the employee has sufficient earnings to coverthe Union dues.


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The Company shall have no responsibility for the collectionof membership dues not deducted pursuant to Sections 3 and4 of this Article.

Section 5. Deduction of Initiation FeesFor the purposes of applying the check-off provisions, itshall be presumed that reinstated and rehired employees donot owe initiation fees, and collection of any initiation feesfrom such employees shall be the responsibility of the LocalUnion. It shall be presumed that employees being hired bythe Company for the first time have not previously paidinitiation fees, and such fees will be deducted as set forth inSection 3 of this Article.

With respect to a newly hired employee who does not signan authorization form at the time he is hired, initiation feewill be deducted only if the Local Union subsequently shallfurnish an authorization form signed by the employee andadvise the Company therewith in writing that the employeeowes an initiation fee, in which case such initiation fee willbe deemed to become due and payable in the pay periodfollowing receipt of such notice.

The Company shall have no responsibility for the collectionof initiation fees not deducted pursuant to the foregoing.

Where an initiation fee has been deducted from the pay of anew employee who does not owe such fee, it shall be theresponsibility of such employee to obtain appropriate refundfrom the Local Union.

Section 6. Remittal of Deductions to Local UnionsAll sums deducted from pay shall be remitted to theFinancial Secretaries of the Local Unions in two payments,the first payment to be made as soon as available but no laterthan ten (10) days after the first pay period in each monthand the second payment, including deductions from theremaining pay periods of the month, to be made not laterthan the 10th day of the next succeeding month after whichsuch deductions are made, the same to be by them allocatedand distributed in accordance with the constitution, laws andregulations of the Union.


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Section 7. Record of Deduction for Local UnionsThe Company and the Union shall work out a mutuallysatisfactory arrangement by which the Company willfurnish the Financial Secretaries of the Local Unions semi-monthly a record of those for whom deductions have beenmade, together with the amounts of such deductions. It ispermissible for Local Unions and local Management towork out a system of reporting those for whom nodeductions are made, rather than those for whom deductionsare made, where they mutually desire to do so.

Section 8. Notice to Union of Employee RevocationsThe Company will advise the Financial Secretary of theLocal Union in writing of receipt by the Company of anywritten notice from an employee revoking his assignmentand authorization to deduct Union membership dues fromhis pay or Regular Supplemental Unemployment Benefits.Such written advice to the Union shall identify the employeeand specify the date notice was received by the Company,and shall be sent to the Union within ten (10) working daysof receipt of such notice.

The Union shall have the right to inspect such notice and itsmailing envelope within thirty (30) days from the date theUnion is sent advice of the receipt thereof, and following theexpiration of that time any objections not theretofore madeto the Company in writing to the effectiveness of such noticeof revocation shall be deemed waived by the Union.

Section 9. Requests for Additional DeductionsRequests to the Company by Local Unions to deductmembership dues (other than initiation fees) in excess of$1.50 each month, and notices of any increases in initiationfees, shall be effective only upon written assurance to LaborAffairs of the Company from the International Union thatsuch amounts are a part of the membership dues under theUnion's constitution, and have been duly approved by theInternational Union.

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ARTICLE IV COMPANY RESPONSIBILITY

Section 10. Notice of Transfer to Excluded ClassificationWhen an employee is transferred to an excludedclassification, the Company will give the Union a writtennotice of such transfer, within ten (10) working days fromthe date of transfer, said notice to list name and old badgenumber.

ARTICLE IV

COMPANY RESPONSIBILITY

Section 1. GeneralThe Company retains the sole right to manage its business,including the rights to decide the number and location ofplants, the machine and tool equipment, the products to bemanufactured, the method of manufacturing, the schedulesof production, the processes of manufacturing orassembling, together with all designing, engineering, andthe control of raw materials, semi-manufactured andfinished parts which may be incorporated into the productsmanufactured; to maintain order and efficiency in its plantsand operations; to hire, lay off, assign, transfer and promoteemployees, and to determine the starting and quitting timeand the number of hours to be worked; subject only to suchregulations and restrictions governing the exercise of theserights as are expressly provided in this Agreement.

Section 2. Promotions and Nonpromotional Job Transfers(a) Promotions

Promotions shall be based primarily upon merit and ability,but where these are equal, the employee having the greatestseniority shall receive preference.

With respect to promotions to higher paid jobs the Unionshall be notified of the opening as far in advance as possible.Arrangements shall be made locally by mutual agreement toestablish appropriate procedures for posting of suchopenings. By local agreement, other arrangements can bemade regarding any job openings.


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Complaints that Management has not exercised fairness injudging the qualifications of the available candidates may beprocessed through the Grievance Procedure.

(b) Nonpromotional Job TransfersIt is the policy of the Company to give consideration toseniority employees who wish to transfer from oneclassification to an equal or lower rated classification withinthe same seniority unit and plant or facility or from oneclassification to an equal or lower rated classification withina department on the same shift when a permanent vacancy(which is to be filled) occurs on the classification.

Accordingly, the Company will act on applications for suchtransfers, without limitation upon the Company's right totransfer or promote employees. With respect tononpromotional job transfers, the Union shall be notified ofthe opening as far in advance as possible.

In each plant where this has not been done or where amutually satisfactory procedure does not already exist, aprocedure which gives effect to this policy will be set up andadministered by the Company.

An employee who has made application in accordance withsuch local plant procedures shall be given preference over arecall, rehire and new hire and over an employee who hasnot applied for the classification for the next vacancyprovided the employee is qualified to do the job. In casethere is more than one applicant qualified to do the job, theapplicant with the longest seniority will be given preference.

An employee who has been offered and does not accept atransfer or who has transferred under the provisions of thisSubsection will not be considered for another such jobtransfer until at least six months have elapsed from the dateof the last offer or the effective date of the nonpromotionaljob transfer.

Any secondary job openings resulting from filling jobspursuant to this provision may be filled through promotionor through transfer without regard to seniority standing orby new hire.


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At any plant where the Local Union notified localManagement in writing within 30 days from the effectivedate of the 1967 Agreement, this Subsection shall not bedeemed in effect and local agreements in effect under theAgreement dated November 23, 1964, regarding any jobopenings will continue in effect.

Section 3. Discipline and DischargeThe Company retains the sole right to discipline anddischarge employees for cause, provided that in the exerciseof this right it will not act wrongfully or unjustly or inviolation of the terms of this Agreement.

In imposing discipline on a current charge, the Companywill not take into account any prior infraction whichoccurred more than 18 months previously. However, ininstances where an employee is on a medical leave ofabsence of 90 days or more during the 18 month time periodafter a disciplinary action is issued, the 18 month timeperiod will be extended by the amount of time of medicalleave occurring within the initial eighteen months to ensure18 months of active employment from the issuance of thedisciplinary action.

Complaints that the Company has violated this paragraphmay be taken up through the Grievance Procedure providedin this Agreement.

Section 4. Production Standards(a) Establishment; Disputes

The right of the Company to establish and enforceproduction standards is recognized. Such productionstandards shall be fair and equitable and shall be set on thebasis of normal working conditions, the quality ofworkmanship, and the normal working capacities of normalexperienced operators, with due consideration to fatigue andthe need for "personal" time.

When a production standard is established and is notdisputed, or is disputed and settled, the element times shallremain unchanged and not subject to dispute unless anduntil the operation is changed as a result of change in


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method, layout, tools, equipment, materials or productdesign.

When a study is to be made for the purpose of establishinga standard the employee on such job shall be notified at thetime the study is to be made. When a study is made forpurposes other than establishing a standard, the purpose ofthe study will be made known to a Union representative ifhe requests it.

The provisions of the strike Settlement Agreement of May29, 1949, as amended, and the rules for manning movingassembly lines established by the arbitration award of July8, 1949, shall apply to assembly line operations like thosecovered by such Settlement Agreement, unless otherarrangements have been or are mutually agreed to throughlocal plant negotiations.

The vehicle assembly plants will maintain procedures toprovide advance knowledge of mix changes which requirecompensating adjustments. Management will designatespecific offline operations from which manpower will bemade available when increased manpower is selected as ameans of adjusting for a mix change. Upon request,Management will advise the Union of the arrangementsmade.

On line operations relief persons will be designated to makerelief available at all times and in a ratio to provide eachemployee with a total of 40 minutes of actual personal reliefper 8 hour shift.

In determining the number of relief persons required for thispurpose, the Company shall take into account such factorsthat may be involved in relief assignments as walkingunusual distances from station to station, the securing ofspecial tools, clothing or equipment, the necessity ofwashing up prior to relieving the next operator and thefactor of time slippage involved in a tag relief system.Detailed implementation of the general rules stated in theforegoing paragraph is to be worked out locally, with theunderstanding that:


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(i) where the Local Union so requests, suchimplementation shall regularly be made on the basisthat relief for up to one hour at the start of the shift andup to one-half hour after lunch will not be requiredexcept in emergencies;

(ii) it shall not be deemed to affect any existingarrangements for relief based on environmental factorsin addition to that required for personal time;

(iii) it shall not interfere with any mutually satisfactorylocal practice or agreement.

It is recognized that disputes on production standards shouldbe resolved at the plant level wherever possible. The Unionmay designate a qualified person in each Bargaining Unitwho, upon his request, in the event of a work standardsdispute, will be advised as to the work content which is thebasis of the particular production standard.

The Union shall have the right to process grievances ondisputed production standards through the procedureprovided therefore by Article VII, Section 23 of thisAgreement.

(b) Enforcement; Discipline

When a standard is not established, an employee who isfollowing the prescribed method and using the toolsprovided in the proper manner and performing at a normalpace will not be disciplined for failure to obtain an expectedamount of production.

On being assigned to a job for which a production standardhas been placed in effect, the employee shall be advised bythe Supervisor as to what such standard is. Productionstandards now in effect and production standards as they arearrived at will be made available for inspection by theCommitteeperson.

Continued failure, or refusal, of an employee to produce onthe basis of such production standards shall be considereddue cause for discipline, including discharge, unless thefailure is due to causes beyond his control. Circumstances


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affecting the time of performance of a particular job thatwere not taken into account in establishing a productionstandard are known as nonstandard conditions. When suchnonstandard conditions exist which adversely affect theoperation and are brought to the attention of Management,an employee who is following the prescribed method andusing the tools provided in the proper manner andperforming at a normal pace will not be required to obtainthe expected amount of production.

No employee will be disciplined for failure to perform inaccordance with production standards unless he has beenadvised at least four days in advance as to what suchproduction standard is. When the Company contemplatesdisciplinary action for failure to perform in accordance withproduction standards, the Committeeperson shall be notifiedpromptly that the employee has been given the first warningand the reasons for such warning.

An employee physically incapable of meeting productionstandards will be given the opportunity to transfer to anoperation he is physically capable of performing, subject tothe provisions of Article VIII, Sections 9 through 13 of thisAgreement.

An employee shall not be subject to discipline for hisactivities during his relief period so long as he does notinterfere in any way with production, the work of his fellowemployees and order in the plant, and does not violate plantrules.

Any complaint that discipline imposed under this Section isimproper shall be taken up through the regular GrievanceProcedure provided for in this Agreement.

Section 5. Rules and RegulationsThe right of the Company to make such reasonable rules andregulations, not in conflict with this Agreement, as it mayfrom time to time deem best for the purposes of maintainingorder, safety, and/or effective operation of Company plants,and after advance notice thereof to the Union and theemployees, to require compliance therewith by employees,


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is recognized. The Union reserves the right to question thereasonableness of the Company's rules or regulationsthrough the Grievance Procedure.

Section 6. Assignment of Overtime WorkWhen, in the judgment of Management, overtime is requiredfor a given department, the regular employees assigned tothe department will work such overtime periods.

All reasonable means will be employed to equalize overtimeamong shifts.

When in the judgment of Management, overtime isnecessary for employees on a given classification within adepartment, the employees regularly performing theoperations involved shall work such overtime periods.Where such overtime is of a continuing nature,Management, insofar as is practicable, will rotate suchovertime among qualified employees within the department,it being understood that for this purpose, by localagreement, employees in General Cleaning, MaterialHandling, and other such classifications, may be consideredas if in one department within a Unit by classification. Inaddition, overtime shall be rotated insofar as is practicalbetween those employees on a given classification who, asa matter of routine assignment, are used interchangeablyduring the normal workweek.

Local deviations from the foregoing general rules regardingovertime assignments may be made by local agreementapproved by the National Ford Department of the UAW andLabor Affairs of the Company.

Except in emergencies or breakdowns, an employee shall benotified of required overtime work not later than thecompletion of his last hour of work on the day precedingsuch overtime.

The notice provisions in this Section shall also apply to theresumption of overtime work whenever there is a break inthe overtime schedule.

It is the policy of the Company to grant, where practicable,an employee's request to be excused from overtime on a


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given day, for good reason, especially during periods ofcontinuing overtime. Such a request should be made as farin advance as possible. The employee will be promptlynotified of the disposition of his request. When granted hewill not be required to work during the excused time withouthis consent.

The Company's right to require employees to performovertime work is subject to the Memorandum ofUnderstanding which is attached hereto as Appendix H.

Section 7. Layoff and Recall -- Deviations from SeniorityThe right of the Company to lay off and recall employees islimited by Sections of this Agreement, hereafter provided,covering that subject.

Notwithstanding those provisions, it is recognized that uponcertain occasions it is necessary in order to facilitate tooling,plant arrangement, starting of production or other unusualsituations, for the Company to retain or to call into work themost capable and efficient employees, out of line ofseniority.

When such occasions arise the Union Committeeperson willbe advised in advance of the number and classifications ofsuch employees.

The discretion hereby vested in the Company shall not beabused. Complaints that the Company has abused itsdiscretion in this respect may be taken up through theGrievance Procedure provided in this Agreement.

Section 8. Job Security and Outside ContractingIt is the policy of the Company that employees of an outsidecontractor will not be utilized in a plant or parts and supplydepot covered by this Agreement to replace seniorityemployees on production assembly or manufacturing work,warehousing work, or fabrication of tools, dies, jigs andfixtures, normally and historically performed by them, whenperformance of such work involves the use of Company-owned machines, tools or equipment maintained byCompany employees.

This policy shall not affect the right of the Company tocontinue arrangements currently in effect; nor shall it limitthe fulfillment of warranty obligations by vendors nor limitwork which a vendor must perform to prove out equipment.

It is the policy of the Company to fully utilize its seniorityemployees in the skilled trades (Appendix F) in theperformance of maintenance and construction work, inaccordance with its letter to the Union of January 20, 1949.It is the Company policy in all cases, except where time andcircumstances prevent it, to have advance discussion withLocal Union representatives prior to letting such a contract.In this discussion local Management is expected to reviewits plans or prospects for letting a particular contract. TheLocal Union should be advised of the nature, scope andapproximate dates of the work to be performed and thereasons (equipment, manpower, etc.) why Management iscontemplating contracting out the work. At such times,Company representatives are expected to afford the Unionan opportunity to comment on the Company's plans and togive appropriate weight to those comments in the light of allattendant circumstances.

In no event shall any seniority employee who customarilyperforms the work in question be laid off as a direct andimmediate result of work being performed by any outsidecontractor on the plant premises.

It is the policy of the Company that decisions by localManagement regarding the utilization of a non-Companysource to perform new die machining, fabrication, repair,

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ARTICLE V STRIKES, STOPPAGES AND LOCKOUTS

tryout and related checking fixture construction worknormally performed by seniority journeymen in the tool anddie classifications (Appendix F) shall be subject to thelimitations set forth in the Company's letter to the Uniondated October 4, 1979.

ARTICLE V

STRIKES, STOPPAGES AND LOCKOUTS

Section 1. Fair Day's WorkThe Union reaffirms its adherence to the principle of a fairday's work for a fair day's pay, and agrees to use its bestefforts towards this end, both as to work and as to conductin its performance.

Section 2. Intent of AgreementIt is the intent of the parties, in the interests of attainingpeaceful, orderly relations and efficient, uninterruptedoperations, to set forth in this Agreement the obligations ofthe Company to the Union and the employees it represents,and to provide the procedures through which the Union andthe employees shall resort to secure redress for anygrievances arising from this Agreement.

Section 3. Prohibited ActivitiesThe Union will not cause or permit its members to cause,nor will any member of the Union take part in, any sit-down,stay-in, or slowdown in any plant of the Company or anycurtailment of work or restriction of production orinterference with the operations of the Company.

Section 4. Limitations on Right to StrikeThe Union will not cause or permit its members to cause,nor will any member of the Union take part in, any strike ofany of the Company's operations, or picketing of any of theCompany's plants or premises, except with respect todisputes which are to be referred to the procedure providedfor in Article VII, Section 23 of this Agreement, and thenonly after such procedure has been exhausted.

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ARTICLE VI REPRESENTATION

No strike shall take place until such action has been fullyauthorized as provided in the constitution of theInternational Union, United Automobile, Aerospace andAgricultural Implement Workers of America.

Section 5. Discipline for Violations of Sections 3 and 4The Company shall have the right to discipline (includingdischarge) any employee who instigates, participates in, orgives leadership to an unauthorized strike in violation of thisAgreement.

The Umpire shall have power to review the reasonablenessof penalties imposed under this Section.

Section 6. Limitations on Right to Lock OutThe Company will not lock out any employees except withrespect to disputes which are to be referred to the procedureprovided for in Article VII, Section 23 of this Agreement,and then only after such procedure has been exhausted.

ARTICLE VI

REPRESENTATION

Section 1. Unit StructureFor the purpose of providing representation and operatingunder this Agreement, the Company shall be divided intoUnits. Each depot, plant or works shall constitute such aUnit. The Rouge Area shall be subdivided into the followingrespective Units:

Maintenance, Construction and TransportationDearborn Truck PlantDearborn Engine Plant Dearborn Stamping PlantDearborn Diversified Manufacturing Plant Tool and Die

Whenever operations in a Unit of the Rouge Area arediscontinued or so curtailed as to make its continuance as aseparate Unit impractical, the parties shall by mutualagreement eliminate such Unit or combine its remnants with

one of the remaining Units. Where new buildings are placedin operation, or operations are resumed in previouslydiscontinued Units, the parties shall by agreement determinewhether a new Unit shall be added or an existing Unitexpanded.

Nothing in the foregoing shall be deemed to modify theexisting local arrangements at the Cleveland Engine plant.

Section 2. Representation on Company TimeFor the purpose of operating under this Agreement, theemployees shall be entitled to representatives on Companytime in accordance with the following provisions.

Section 3. Units of 1,399 or LessIn Units containing 1,399 or less employees, the Union willbe accorded representatives as follows:

(a) Less than 150 (Single Shift Operation)In a Unit of less than 150 employees with a single shiftoperating pattern, there shall be one full-time Chairperson.The Chairperson shall have the right to devote his/herfull–time to his/her duties, as such, which shall includethose functions set forth in Sections 8(c), 9(c), and 10(c) ofthis Article.

(b) Less than 150 (Multiple Shift Operation)In a Unit of less than 150 employees with a multiple shiftoperating pattern, there shall be two Committeepersons,including the Chairperson. The Chairperson shall have theright to devote his/her full time to his/her duties, as such,which shall include those functions set forth in Sections8(c), 9(c) and 10(c) of this Article, but the remainingCommitteepersons shall be on a part-time basis.

(c) 150-199In a Unit of 150 to 199 employees, there shall be threeCommitteepersons, including the Chairperson. TheChairperson shall have the right to devote his/her full timeto his/her duties, as such, which shall include thosefunctions set forth in Sections 8(c), 9(c) and 10(c) of thisArticle, but the remaining two Committeepersons shall beon a part-time basis.

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(d) 200-399In a Unit of 200 to 399 employees, there shall be threeCommitteepersons including the Chairperson. When theUnit is operating three shifts on production, an additionalCommitteeperson may be allowed. The Chairperson shallhave the right to devote his/her full time to his/her duties, assuch, but the remaining Committeepersons shall be on apart-time basis.

(e) 400-599In a Unit of 400 to 599 employees, there shall be fourCommitteepersons including the Chairperson. TheChairperson and one other Committeeperson shall have theright to devote their full time to their duties, as such, but theremaining Committeepersons shall be on a part-time basis.

(f) 600-799In a Unit of 600 to 799 employees, there shall be fourCommitteepersons, including the Chairperson. TheChairperson and two other Committeepersons shall have theright to devote their full time to their duties, as such, but theremaining Committeeperson shall be on a part-time basis.

(g) 800-999In a Unit of 800 to 999 employees, there shall be fourCommitteepersons, including the Chairperson, all of whomshall have the right to devote their full time to their duties,as such.

(h) 1,000-1,199In a Unit of 1,000 to 1,199 employees, there shall be fiveCommitteepersons, including the Chairperson, all of whomshall have the right to devote their full time to their duties,as such.

(i) 1,200-1,399In a Unit of 1,200 to 1,399 employees, there shall be sixCommitteepersons, including the Chairperson, all of whomshall have the right to devote their full time to their duties,as such.

Section 4. Units of 1,400 or More (Except Rouge andMichigan Assembly Plant)

In Units containing 1,400 or more employees, the Unionwill be accorded representatives as follows:

(a) Number of Full-time RepresentativesEach Unit, according to the number of employees therein,may have the number of full-time representatives, includingthe Chairperson of the Unit Committee, indicated in thefollowing table:

No. of No. ofEmployees Representatives1,400 to 1,599 . . . . . . . . . . . . . . . . . . . . . . . . . .71,600 to 1,799 . . . . . . . . . . . . . . . . . . . . . . . . . .81,800 to 1,999 . . . . . . . . . . . . . . . . . . . . . . . . . .92,000 to 2,199 . . . . . . . . . . . . . . . . . . . . . . . . .102,200 to 2,399 . . . . . . . . . . . . . . . . . . . . . . . . .112,400 to 2,599 . . . . . . . . . . . . . . . . . . . . . . . . . .122,600 to 2,799 . . . . . . . . . . . . . . . . . . . . . . . . . .13

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

(b) Size of Unit Committee; Handling of First StageGrievancesEach Unit shall have a Unit Committee of three or fourpersons, including the Chairperson, plus DistrictCommitteepersons to handle grievances in the First Stage.

A Unit Committeeperson may be designated to handle FirstStage Grievances within a specified district where necessaryto provide adequate representation.

Section 4A. Part-time Representatives — Small ShiftsIn a Unit employing 1,001 or more people, an additionalCommitteeperson on a part-time basis shall be allowed onthe No. 1 and No. 3 shift when more than 25 but less than200 people are working on such shift. In view of specialconditions in the Rouge Area, implementation of theprinciples of the foregoing provision with respect to theRouge Area will be negotiated between Labor Affairs andthe Local Union.

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Section 5. Local Agreements on DeviationsDeviations from Sections 3 and 4 of this Article may benegotiated by the local Unit and local Management to meetlocal conditions, subject to the approval by Labor Affairs ofthe Company and the National Ford Department of theUnion.

In a Unit where a substantial number of employees workingon production on necessary continuous seven-dayoperations creates a demonstrable need, the local Unit (or inthe case of the Rouge Area, the Local Union), and localManagement will work out by local agreementarrangements for an additional part-time Committeeperson.

Section 6. Rouge and Michigan Assembly PlantNotwithstanding Sections 3 and 4 of this Article, the Unionwill be accorded representatives in the Rouge Area andMichigan Assembly Plant on a full-time basis, as follows:

(a) Size of Unit Committee; Handling of First StageGrievancesEach Unit shall have a Unit Committee of three or fourpersons, including the Chairperson, plus DistrictCommitteepersons to handle grievances in the First Stage. AUnit Committeeperson may be designated to handle FirstStage Grievances within a specified district where necessaryto provide adequate representation.

(b) Number of RepresentativesThe Union shall have one representative for every 200employees and major fraction thereof working in the RougeArea and Michigan Assembly Plant, respectively. Theapportionment of such representatives among the variousUnits comprising the Rouge Area shall be in the discretionof the Local Union, subject only to Subsection (a) of thisSection.

Section 7. Adjustments for Population ChangesWhere, in any Unit, a change in the number ofrepresentatives, or from a full-time to a part-time basis ofrepresentation or vice versa is required because ofdeviations in the number of employees working above or

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below the number on which its representation structure isbased, the requisite changes shall be accomplished withintwo weeks of the notice to the Local Union of theoccurrence of the deviation in employment requiring it;provided, however, that changes in the Rouge Area shall bebased upon the employment level in the Area rather thanindividual Units. Employees on layoff in accordance withArticle VIII, Section 21 of this Agreement shall be includedin the number working for purposes of this Section.

Section 8. Unit Health and Safety Representative(a) Number; Appointment

Each Unit of 600 or more employees may have one full-timeHealth and Safety Representative who shall be appointed bythe National Ford Department Director.

(b) Notice to CompanyThe National Ford Department Director shall advise LaborAffairs in writing of the names of the appointed Health andSafety Representatives and the Unit to which each isassigned. No representative shall function as such until theCompany has been so advised.

(c) FunctionsThe primary function of the Unit Health and SafetyRepresentative is to handle health and safety complaints inaccordance with the procedure set out in Article VII, Section23 (b)(1). In addition, the Unit Health and SafetyRepresentative will:

(i) accompany International Union Representatives onplant inspection tours; also accompany representativesof the Company’s Industrial Hygiene and SafetySections on regular plant surveys and upon requestreceive results of such surveys - advance arrangementsshould be made to permit participation in such surveys;

(ii) receive advance notice of health and safety inspectionsby private agency officials, licensed inspectorsrequired by statute, or consultants retained by theCompany, and whenever possible, by governmentofficials, including state, city, and county code

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enforcement officials, and be afforded an opportunityto accompany such officials or consultants and provideany pertinent information to them. Upon request,copies of reports of such parties, including those ofinsurance inspectors, will be provided regardingviolations of applicable local, state, or federal code orviolation(s). The parties recognize that such reportsmay not accurately or properly characterize issues thatrelate to employee health and safety matters;

(iii) receive from the appropriate Managementrepresentative a copy of the Unit’s OSHA Form 300A(Summary, Occupational Illnesses and Injuries) as it isnow constituted and the facility’s total man-hoursworked for the comparable period;

(iv) accompany a local Company safety representative tomeasure noise, air contaminants or air flow when andwhere conditions in the Unit indicate suchmeasurement is necessary; upon request be providedwith copies of photographs taken by Companypersonnel which relate to health and safety matters inthe plant-such photographs shall be for the confidentialuse of the Unit Health and Safety Representative onlyand shall not be reproduced, published or distributed inany way; once each week make inspections with thelocal Company safety representative and makenecessary and desirable recommendations regardingthe plant working environment; prior to suchinspections, be advised by the local Company safetyrepresentative of possible problem areas based on ananalysis of current OSHA Form 300 accidentexperience;

(v) be informed of work-related lost-time accidents asdefined by the OSHA Recordkeeping Guidelines forOccupational Injuries and Illnesses and other majoraccidents which occur in the workplace; review theresults of plant safety investigations (Form 1268 or itsequivalent) of such accidents and make necessary anddesirable recommendations; periodically review

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deletions from the OSHA 300 log and the rationale forsuch deletions, periodically review the listing ofworkers compensation cases to reconcile with theOSHA 300 log;

(vi) receive prompt notification of any serious work-relatedemployee injury or fatality as well as significantchemical spills in the workplace;

(vii) participate in formal employee job-related safetytraining or instruction programs, and review and makerecommendations to Company representativeconcerning appropriate content of such programs;

(viii) be advised in writing of breathing zone air sampleresults and known harmful physical agents orchemicals to which employees in the Unit are exposedand protective measures and applicable emergencyprocedures. In addition, whenever it is determined thatan employee has had a personal exposure exceedingthe permissible level as set forth in 29 CFR-1910.1000,Air Contaminants or other applicable standardsadopted by the Company, the Unit Health and SafetyRepresentative shall be informed in writing of suchexposure and the corrective action to be taken;

(ix) receive, upon request to the Company notice ofsignificant environmental remediation projects, spills,or releases that are subject to government reportingrequirements. The Unit Health and SafetyRepresentative(s) will forward such information to theNJCHS;

(x) conduct focused departmental health and safety auditson a weekly basis with area Company leadership. Theresults of these audits will be reported out at the plantSafety Process Review Board.

(d) Representative TrainingThe Company will provide annually the training orinstruction it deems necessary to qualify the Unit Health andSafety Representatives to perform their functionssatisfactorily. In addition to initial instruction, Unit Health

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and Safety Representatives will receive specialized trainingappropriate to the operations in their respective Units. TheNational Ford Department will be provided the opportunityto review and participate in such training or instructionprograms and make necessary and desirablerecommendations.

(e) Duty to Remain in Unit; Reporting to SupervisorA Health and Safety Representative shall remain in his/herrespective Unit while on Company time.

A Health and Safety Representative shall report to anemployee’s Supervisor, provided the Supervisor is in thedepartment, before contacting such employee in pursuanceof his/her duties.

(f) Hours on Company TimeIt is understood that a Unit Health and Safety Representativeshall be entitled to be on Company time only for the samenumber of hours as the employees on the shift to whichhe/she is assigned are normally scheduled to work.

During periods of temporary layoff as defined by ArticleVIII, Section 21, a Unit Health and Safety Representativewill be considered as a Unit Committeeperson, and his/herentitlement to be on Company time will be determined inaccordance with the provisions of Section 13 (d).

Section 9. Unit Benefit Plans Representative(a) Number; Appointment

Each Unit of 600 or more employees may have one full-timeBenefit Plans Representative who shall be appointed by theNational Ford Department Director.

(b) Notice to CompanyThe National Ford Department Director shall advise LaborAffairs in writing of the names of the appointed BenefitPlans Representatives and the Unit to which each isassigned. No representative shall function as such until theCompany has been so advised.

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(c) FunctionsThe functions of the Unit Benefit Plans Representative arelimited to matters pertaining to the Retirement Plan,Insurance Program, and the Supplemental UnemploymentBenefit Plan. The Unit Benefit Plans Representative will:

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

and surviving spouse problems relating to creditableservice, benefit eligibility, benefit amount,determination delays and payment delays.

(ii) Meet with local Company Personnel BenefitsRepresentative or other designated local Managementrepresentative as required.

Insurance Program(i) Confer with employees, spouses, retirees (excluding

retiree healthcare), beneficiaries or insurance carriersregarding coverage eligibility, a denied claim, benefitamounts, and benefit payment delays.

(ii) Meet with local Company Personnel BenefitsRepresentative or other designated local Managementrepresentative as required.

Supplemental Unemployment Benefit Plan(i) Confer with employees regarding eligibility for

benefits under the SUB Plan, a denied or suspendedbenefit or questions concerning appeal proceduresunder the SUB Plan.

(ii) Meet with designated local Management representativeas required.

(iii) Discuss with Company designated representative thoseinstances in which the Company determines benefitpayments are not payable.

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

(d) Duty to Remain in Unit; Reporting to SupervisorA Benefit Plans Representative shall remain in his/herrespective Unit while on Company time.

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A Benefit Plans Representative shall report to an employee’sSupervisor, provided the Supervisor is in the department,before contacting such employee in pursuance of his/herduties.

(e) Hours on Company TimeIt is understood that a Unit Benefit Plans Representativeshall be entitled to be on Company time only for the samenumber of hours as the employees on the shift to whichhe/she is assigned are normally scheduled to work.

During periods of temporary layoff as defined by ArticleVIII, Section 21, a Unit Benefit Plans Representative will beconsidered as a Unit Committeeperson, and his/herentitlement to be on Company time will be determined inaccordance with the provisions of Section 13(d).

Section 10. Employee Support Services ProgramRepresentative

(a) Number; AppointmentEach Unit of 600 or more employees may have one full timeEmployee Support Services Program Representative whoshall be appointed by the National Ford DepartmentDirector.

(b) Notice to CompanyThe National Ford Department Director shall advise LaborAffairs in writing of the names of the appointed EmployeeSupport Services Program Representatives and the Unit towhich each is assigned. No representative shall function assuch until the Company has been so advised.

(c) FunctionsThe functions of the Employee Support Services ProgramRepresentative are limited to matters pertaining to theEmployee Support Services Program. The EmployeeSupport Services Program Representative will:

(i) assist in the identification, education, referral andfollow up of employees with problems which impairjob performance relating to alcohol and drugdependency or emotional disorders while assuringrequisite confidentiality standards are observed;

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(ii) act as liaison with appropriate members of linesupervision, human resources, plant medical, otherUnion representatives, diagnosis and referral agencies,and with providers of treatment and medical care;

(iii) assist in evaluating the effectiveness of variousprograms, plans and services;

(iv) participate in formal employee assistance training orinstruction programs, and review and makerecommendations to Company representativesconcerning program content;

(v) assist in coordinating and implementing various localprogram applications and related services availableunder the Employee Support Services Program,including development of local proposals and requestsfor funding to the national Employee Support ServicesProgram Committee;

(vi) acquire appropriate certification and satisfy relatedconditions where required by laws or regulations.

(d) Representative TrainingThe Education, Development and Training Program willprovide training or instruction deemed necessary to qualifythe Unit Employee Support Services ProgramRepresentatives to satisfactorily perform their functionsrelating to the Employee Support Services Program.

(e) Duty to Remain in Unit; Reporting to SupervisorUnit Employee Support Services Program Representativesshall remain in their respective Unit while on Companytime.

Unit Employee Support Services Program Representativesshall report to an employee's Supervisor, provided theSupervisor is in the department, before contacting suchemployee in pursuance of their duties.

(f) Hours on Company TimeIt is understood that Unit Employee Support ServicesProgram Representatives shall be entitled to be on Companytime only for the same number of hours as the employees on

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the shift to which the Representatives assigned are normallyscheduled to work.

During periods of temporary layoff as defined by ArticleVIII, Section 21, Unit Employee Support Services ProgramRepresentatives will be considered as UnitCommitteepersons, and will be entitled to be on Companytime in accordance with the provisions of Section 13 (d).

Section 11. Provisions Applicable to Both Full and Part-time Representatives

(a) Functions of District CommitteepersonsThe function of a District Committeeperson is to handlegrievances in the First Stage, to represent employees athearings in disciplinary cases when called upon to do so,and to pass necessary information on with respect togrievances appealed. A District Committeeperson also mayperform certain other representation functions, includingparticipation in joint programs and related functions, as maybe provided for under the Agreement.

(b) Functions of Unit CommitteeThe function of the Unit Committee is to review andnegotiate grievances in the Second Stage, to preparegrievances not settled at this point for further review in theGrievance Procedure, and to negotiate with localManagement on negotiable local problems. A UnitCommitteeperson may also handle First Stage Grievances inthe cases provided for in Sections 3 and 4 of this Article, andrepresent employees at hearings in disciplinary cases whencalled upon to do so. A Unit Committeeperson also mayperform certain other representation functions, includingparticipation in joint programs and related functions, as maybe provided for under the Agreement.

(c) Assignment to Defined DistrictsExcept where otherwise agreed locally to meet exceptionalconditions, each Committeeperson handling First StageGrievances shall be assigned a definite district.

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(d) Notice to CompanyThe Chairperson of each Unit Committee shall promptlyadvise the Company in writing of the names, positions andassignments of the representatives in his/her plant, and ofany changes therein, except that in the Rouge Area it shallbe the duty of the President of the Local Union to furnishthis information. No representative shall function as suchuntil the Company has been so advised.

(e) Duty to Remain in Plant and Area; Reporting toSupervisorsAll Committeepersons except the Chairperson of the UnitCommittee shall remain in the plant, and, except when theirduty requires them elsewhere, in their respective areas,while on Company time.

A Committeeperson shall report to an employee’sSupervisor, provided the Supervisor is in the department,before contacting such employee in pursuance of his/herduties.

(f) Chairperson’s Privilege to Leave PlantThe Company recognizes the privilege of the Chairperson ofthe Unit Committee to leave the plant in the course of theperformance of his/her functions as such, but he/she shallnotify the designated Company representative, if he/she isavailable, when leaving and returning to the plant duringworking hours.

(g) Eligibility to Serve as RepresentativeAny representative provided for in the foregoing Sectionsshall be an employee of the Company selected from amongthe employees he/she represents, and to be eligible to holdsuch position, shall have been in the regular employ of theCompany, or on approved leave of absence, for at least oneyear immediately preceding his designation to such positionunless an employee of at least one year’s service is notavailable; provided, however, that in each Unit, excludingthose in the Rouge Area, having 100 or more skilled trades(Appendix F) employees and two or more full-timerepresentatives, including the Chairperson, pursuant toSections 3, 4 or 6, whichever is applicable, of this Article,

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one of these full-time representatives shall be elected fromamong those skilled trades (Appendix F) employeesworking in the Unit.

Section 12. Provisions Applicable to Part-timeRepresentatives

The following provisions are applicable to representativeswho are on a part-time basis:

(a) Privilege of Leaving WorkCompany accords to representatives the privilege of leavingtheir work for the time necessary to promptly perform theirduties as outlined in this Agreement without loss of time, onthe understanding that this privilege will not be abused andrepresentatives will continue to work at assigned jobs at alltimes not required for the performance of such duties.

A representative shall report to his/her Supervisor when itbecomes necessary to leave his/her job, and will report to anemployee’s Supervisor, provided the Supervisor is in thedepartment, before contacting such employee in pursuanceof his/her duties.

(b) Retention During LayoffsA representative shall be permitted to work during layoffs solong as one of his/her constituents is at work and there iswork available which he/she can perform, and so long ashe/she does not lose his status as a representative throughreadjustment of the representation structure as provided inSection 7 of this Article, without regard to seniorityprovisions of this Agreement.

(c) Overtime WorkA representative shall be entitled to work overtime, if he/sheso requests, whenever one or more of his constituents iscalled upon for overtime work, and there is work availablewhich he/she can perform.

His/Her privilege to leave his/her job during overtime hours,however, is limited to the handling of grievances relating toor arising from the work during these hours, in behalf ofconstituents working during such hours.

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The representative shall be notified, if he/she is in the Unit,of the overtime work at the same time as are his/herconstituents who are to work.

Section 13. Provisions Applicable to Full-timeRepresentatives

The following provisions are applicable to representativeswho are on a full-time basis:

(a) Assignment of Sufficient AreasWhere shifts in employment not affecting the overallemployment level of the Unit sufficiently to require achange in the structure of representation take place, it shallbe the responsibility of the Chairperson of the UnitCommittee to see that representatives are assigned areas insuch manner as to justify their devoting full time to theirfunctions, except that in the Rouge Area this principle shallbe applied on an area-wide basis and the responsibility shallbe upon the President of the Local Union.

(b) Hours on Company TimeIt is understood that all representatives shall be entitled to beon Company time only for the same number of hours as theemployees in such Unit are normally scheduled to work.

On continuous seven-day operations, the representativesshall be scheduled to cover the operations on rotatingschedules in the same manner as other employees on suchoperations.

When all of the employees in a Unit work overtime, all ofthe representatives in that Unit may come in overtime torepresent them. When part of the employees in a Unit workovertime, the number of representatives in that Unit whomay come in overtime to represent them shall beproportionate to the number of employees in that Unit whoare called in to work such overtime, subject to the followingprovisions:

(1) The Chairperson shall be entitled to function as such onCompany time for up to twelve hours daily, Mondaythrough Friday, excluding holidays, and for eight hourson a Saturday, Sunday, or a holiday, so long as

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employees in the Unit are scheduled to work on theChairperson’s shift for such hours on such days.

(2) Monday through Friday, excluding holidays, all otherelected representatives shall be scheduled to representemployees on the basis of their representationfunctions and a proportionate amount of the overtimeworked by the employees in the Unit on such dayswhen less than all are scheduled to work. Suchovertime shall be determined and authorized weekly bytotaling the Monday through Friday overtime workedin the Unit during the preceding week, excludingholidays and periods when all employees werescheduled to work, and multiplying that total by .01.Appointed representatives will receive overtime hoursequivalent to the average hours authorized for electedrepresentatives. The Chairperson will be notified of theUnit’s Monday through Friday overtime allocation andwill establish the daily work schedule for allrepresentatives and provide it to a designated Companyrepresentative. In addition the following provisionswill apply to this overtime allocation:

(i) Since the weekday allocation converts weekdayUnit overtime to an equivalent full-timerepresentation basis, full-time representatives,excluding the Chairperson, will not be scheduledto work overtime as part-time representatives.

(ii) Unused hours from the weekday allocation for theUnit may be carried over for use on weekendshifts and the following week; however, suchhours may not be used during holiday weeks (e.g.,Christmas holiday period) and the carryover shallnot exceed 200 hours for the Unit.

(3) Elected representatives, other than the Chairperson,will be entitled to come in to represent employees onovertime by shift on Saturdays, Sundays and holidaysbased on one full-time representative at the level of 50employees scheduled, the second full-timerepresentative at the level of 250 employees scheduled,

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and thereafter based on a 1 to 150 ratio. Suchrepresentatives will be scheduled to work the samenumber of hours as the employees normally scheduledon that shift. When less than 50 employees arescheduled for overtime on a shift on Saturday, Sundayor holidays, one full-time representative may functionpart-time. At such times, the provisions applicable topart-time representatives as set forth in Section 12 ofthis Article shall apply.

Appointed representatives will be allocated the averageamount of overtime as that to which electedrepresentatives, excluding the Chairperson, are entitledfor Saturdays, Sundays and holidays.

The hours generated by the overtime formula in thisSection for elected and appointed representatives maynot be increased to provide overtime as a representativefor any reason without prior approval of Labor Affairs.

The Unit Chairperson will be notified of and willestablish the Unit’s Saturday, Sunday or holiday workschedule for representatives and provide it to adesignated Company representative.

Time verification procedures will be continued todocument entitlement to payments, including anypremiums, for hours worked by Union representatives.

For Units where representatives cover wide geographicareas and represent employees in a number of differentlocations or there are other unusual considerations,special arrangements may be established by writtenagreement between Labor Affairs of the Company andthe National Ford Department of the Union to facilitatethe determination of the weekday Unit overtimeallocation or address other unique problems.

(c) Temporary Layoffs - District CommitteepersonA District Committeeperson will be entitled to devotehis/her full time to his/her duties as such during layoffs asdefined in Article VIII, Section 21 of this Agreement, whenthe number of employees in his/her District is sixty-five (65)

per cent or more of the number of employees normallyscheduled to work in his/her District at the time the layoffcommenced.

When the number of employees in his/her Districtremaining at work during such layoff is less than sixty-five(65) per cent of the number of employees normallyscheduled to work, the District Committeeperson shall bepermitted to come in so long as one of his/her constituentsis at work and there is work available which he/she canperform; but at such times he/she shall be governed by theprovisions applicable to representatives on a part-time basis,as set forth in Section 12 of this Article.

(d) Temporary Layoffs - Unit CommitteepersonDuring layoffs as defined in Article VIII, Section 21 of thisAgreement, the number of Unit Committeepersons entitledto be on Company time as such, in any Unit, will beproportionate to the number of employees working in thatUnit during such layoff, subject to the provisions ofSubsection (f) this Section. The proportion shall be based onthe ratio of employees working in the Unit during the layoffto the total number normally scheduled to work in the Unitat the time the layoff commenced.

A Unit Committeeperson not designated to come in as a full-time representative under the terms of this Subsection shallbe permitted to come in to work during such layoff if thereis a job available which he/she can perform; but shall haveno right to leave his/her work during such time except forthe purpose of attending the regularly scheduled UnitGrievance Meetings provided for in Article VII, Section 3(c)of this Agreement.

(e) Overtime and Temporary Layoffs - Chairperson Who IsSole Full-time RepresentativesIn a Unit where the Chairperson of the Unit Committee is ona full-time basis, but the remaining Committeepersons areon a part-time basis, the Chairperson shall be entitled tocome in during overtime hours or during layoffs as definedin Article VIII, Section 21 of this Agreement, subject to theprovisions of Subsections (b) and (f), respectively.

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(f) Temporary Layoffs - Less Than 150 Constituents atWorkWhenever, under Subsection (d) or (e) of this Section, onerepresentative only is entitled to come in as such, suchrepresentative shall be entitled to devote his/her full time tohis/her duties as such if more than 150 of his/herconstituents are at work. When 150 or less of his/herconstituents are at work, he/she shall be permitted to comein so long as one of his constituents is at work and there iswork available which he/she can perform, but at such timeshe/she shall be governed by the provisions applicable torepresentatives on a part-time basis, as set forth in Section12 of this Article.

Section 14. Compensation of Full-time Representatives(a) General

A full-time representative shall continue to be paid at therate he was receiving at the time of assuming his dutiesexcept that his rate shall be adjusted in accordance with anyadjustments made in the rate for the classification he/shethen held. He/She shall be deemed to be an active employeeof the Company for the purpose of applying the vacationplan.

(b) Promotion/Nonpromotional OpportunitiesNotwithstanding the above, full-time elected or appointedrepresentatives shall be entitled to receive consideration forpromotional or nonpromotional opportunities under theprovisions of Article IV, Section 2(a) or (b) of thisAgreement, except promotional opportunities toapprenticeable Appendix F classifications. Localarrangements permitting promotions within apprenticeableAppendix F classifications are permitted.

(c) Incentive PlansNotwithstanding Subsection (a) of this Section, it is agreedby the parties that if a full-time representative is elected tothat position from a job coming under a production bonus

Section 15. Alternate CommitteepersonWhen a regular Committeeperson is absent from the planton his/her own time during periods when he/she is entitledto act as such, the Company will recognize an alternateCommitteeperson designated by the Chairperson of the UnitCommittee.

ARTICLE VII

GRIEVANCE PROCEDURE

Section 1. IntroductionWhen an employee, or the Union collectively, has agrievance against the Company, it shall be processed inaccordance with the Grievance Procedure hereinafterprovided.

The parties shall make a sincere and determined effort tosettle meritorious grievances in the voluntary steps of theGrievance Procedure and to keep the procedure free ofunmeritorious grievances.

Any grievance that either (a) is not processed or (b) isdisposed of in accordance with this Grievance Procedureshall be considered settled, and such settlement shall be finaland binding upon the Company, the employee or employeesinvolved, the Union and its members.

Except with respect to the right to present an individualgrievance as expressly set forth in Section 2 of this Article,the Union shall, in the redress of alleged violations by theCompany of this Agreement or any local or other agreementsupplementary hereto, be the exclusive representative of theinterests of each employee or group of employees coveredby this Agreement, and only the Union shall have the rightto assert and press against the Company any claim,proceeding or action asserting a violation of this Agreement.

No employee or former employee shall have any right underthis Agreement in any claim, proceeding, action orotherwise on the basis, or by reason, of any claim that the

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ARTICLE VII GRIEVANCE PROCEDURE

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Union or any Union officer or representative has acted orfailed to act relative to presentation, prosecution orsettlement of any grievance or other matter as to which theUnion or any Union officer or representative has authorityor discretion to act or not to act under the terms of thisAgreement.

Section 2. First Stage GrievancesRecognizing the value and importance of full discussion inclearing up misunderstandings and preserving harmoniousrelations, every reasonable effort shall be made to settleproblems promptly at this point through discussion.

(a) Initial Oral DiscussionAn employee believing he/she has cause for grievance may,at his option, discuss the matter directly with his/herSupervisor or he may take it up with his DistrictCommitteeperson and Supervisor.

It shall be the obligation of the Supervisor and the DistrictCommitteeperson to make their best efforts to assure thattimely and thoughtful consideration is given to everygrievance that is discussed within the scope of their abilityand authority.

Initial oral discussion with the Supervisor shall be requiredfor further processing of a grievance and failure to honor arequest for oral discussion shall be a proper basis for takingthe grievance to a second oral discussion step.

In the event oral discussion with the employee’s Supervisordoes not satisfactorily resolve the grievance, the DistrictCommitteeperson shall complete a “Record of OralDiscussion” form which must include the time, date andnature of the complaint, and must be signed by theemployee(s) having the complaint. The Supervisor willverify thereon that oral discussion has been held.

(b) Second Oral DiscussionIn the event the grievance has not been satisfactorilyresolved in the initial oral discussion and the DistrictCommitteeperson wishes to appeal the grievance further, theDistrict Committeeperson shall meet with the

Superintendent and another representative designated by thelocal plant Management to discuss the grievance within twoworking days after the initial oral discussion. SuchCompany representative shall verify on the “Record of OralDiscussion” form that the second oral discussion has beenheld.

It is understood that if a Human Resources Representative isdesignated as the other Company representative and bothCompany representatives attend the meeting, then a UnitCommitteeperson may also attend.

Local arrangements for weekly meetings in the second oraldiscussion step may be established where deemed desirablefor improving the effectiveness of oral discussion ofgrievances.

(c) Disposition of GrievancesA settlement in either of the oral discussion steps shall beinformal and limited to the particular grievance adjusted.Written dispositions may be requested by either party. TheDistrict Committeeperson will be provided a record of aback pay award when such has been granted to settle theemployee’s grievance.

(d) Referral to Unit CommitteeIf the grievance is not satisfactorily resolved in the secondoral discussion step and the District Committeepersonwishes to appeal the grievance to the Second Stage, he shallso specify on the “Record of Oral Discussion” form andsubmit three copies of said form to the Companyrepresentative who conducted the second oral discussionwithin two working days following such discussion. TheCompany representative will enter thereon his report of thesecond oral discussion and return two copies to the DistrictCommitteeperson within two working days followingreceipt. The District Committeeperson shall enter thereonhis complete investigation of the facts and the results of theoral discussions. The District Committeeperson shall submitone copy of the completed form to the Unit Committee andone copy to the designated Company representative withintwo working days. If the Unit Committee believes the

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grievance to be well founded, and is satisfied that theobligation for oral discussion has been met, it may carry itto the Second Stage.

Section 3. Second Stage GrievancesSecond Stage Grievances shall be processed in accordancewith the following provisions:

(a) Written GrievanceIf the matter is not disposed of in the oral discussion steps,and it has been appealed to the Second Stage by the UnitCommittee, it shall be reduced to writing on the form knownas Employee Grievance, Second Stage; incorporated in thisform shall be a “statement” setting forth all the facts reliedon and specifying, when possible, the Section or Sections ofthe Agreement claimed to have been violated.

(b) Presentation to CompanyThe Unit Committee shall within one week followingreceipt of the “Record of Oral Discussion” form present thegrievance in writing to the designated Companyrepresentative for consideration at the Unit GrievanceMeeting. The grievance will be presented in triplicate.

(c) Unit Grievance MeetingsA Unit Grievance Meeting shall be held in each Unit at aregularly scheduled time each week (unless a longer intervalis agreed upon locally) if there is business to be transacted,and shall continue on consecutive working days, until allbusiness before it has been completed. It shall be attendedby not more than four members of the Unit Committeerepresenting the Union and by not more than four Companyrepresentatives. If either party wishes to do so, it may recordthe Unit grievance proceedings at its own expense in suchmanner as it desires.

(d) Unit Grievance Meeting - AgendaUnless it has previously been withdrawn or satisfactorilyadjusted, the grievance shall be considered at the next UnitGrievance Meeting which starts at least one week after thetimely written presentation of the grievance forconsideration.

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(e) Withdrawal or Adjustment of GrievanceThe Unit Committee shall have power to withdraw a SecondStage Grievance, and the designated Companyrepresentative shall have the power to adjust a Second StageGrievance.

(f) Time Limit on DispositionThe Company shall give its decision in writing to the UnitChairperson on all grievances considered at the UnitGrievance Meeting not later than one week after the lastsession of the meeting.

Section 4. Third Stage GrievancesIf a satisfactory disposition of the grievance is not made inthe Second Stage, the Chairperson of the Unit Committeemay, if he/she considers the grievance to be well founded,carry it to the Third Stage. Third Stage Grievances shall beprocessed in accordance with the following provisions:

(a) Appeal ProcedureThe Chairperson shall within one week of the writtendisposition in the Second Stage give written notice to thedesignated Company representative on triplicate copies ofthe Third Stage Grievance form that the grievance isappealed to the Plant Review Board. The grievance mustspecify as provided in Article X, Section 9, whether a claimof discrimination is included in the grievance.

Within one week after notice of appeal has been given bythe Chairperson the parties will prepare and exchange acomplete and detailed statement of all the facts andcircumstances surrounding the grievance.

No grievance shall be considered by the Plant Review Boardin the Third Stage until the next meeting after the prescribedstatement of facts has been presented on behalf of theUnion.

(b) Statement of Fact and PositionEach party’s statement shall be in detail sufficient toreasonably apprise the other party of the nature of (i) thegrievance and the issues involved, (ii) the contentions madein support of the party’s position on the issues, (iii) the basic

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facts relied upon in support of such position, and (iv) wherea claim of discrimination is included in the grievance, astatement of the facts and circumstances supporting suchclaim.

Such statements shall fix the nature of the grievance and ofthe issues for all subsequent consideration of the case in theGrievance Procedure (including the Fourth Stage), and ifeither party shall attempt to deviate materially from thecontents of such statement after furnishing it to the otherparty, the grievance shall be remanded to the Second Stagefor reconsideration unless the other party agrees otherwise.

It is the purpose and intent of this Subsection to assure thatthere shall be full discussion and consideration of thegrievance, on the basis of a full disclosure of the relevantfacts, in the voluntary stages of the Grievance Procedure.

(c) Referral to Local Civil Rights CommitteeThe Bargaining Chairperson or the Chairperson’sdesignated representative, before deciding whether to take agrievance which includes a claim of discrimination underArticle X, Section 9 to the Plant Review Board, may referthe grievance to the Chairperson of the Civil RightsCommittee of the Local Union for a factual investigationand report. Such report must be completed and the grievancereturned not later than one week following referral, providedthat such period may be extended by mutual agreement.Upon return, the grievance will be taken up at the nextscheduled meeting of the Review Board.

(d) Review BoardsA Review Board shall be established for each Unit providedfor in Article VI, Section 1 of this Agreement.

The Review Board for each Unit in a multi-plant area shallbe composed of three persons representing the Union andthree persons representing the Company. The Unionrepresentatives shall be an International Representativedesignated by the Regional Director of the area, who will bethe ranking Union representative on the Review Board, a

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representative of the Local Union concerned, and theChairperson of the Unit. The Company representatives shallinclude at least one member of line Management.

The Review Boards for all other plants shall be composed oftwo persons representing the Union and two personsrepresenting the Company. The Union representatives shallbe an International Representative designated by theRegional Director of the area, who shall be the rankingUnion representative, and the Chairperson of the Unit. TheCompany representatives shall include one member of lineManagement.

(e) Review Boards - Schedule of MeetingsThe Plant Review Board shall meet at a regularly scheduledtime every other week if there is business to be transacted,and shall continue on consecutive working days until allbusiness before it has been completed, unless a differentschedule is agreed upon locally.

(f) Review Boards - AgendaGrievances shall be heard, unless previously withdrawn orsatisfactorily adjusted, at the first regular session of theReview Board scheduled not less than 15 calendar days aftertimely written appeal thereof to the Board, unless a shorterperiod is agreed upon locally.

(g) Review Boards - Record of Proceedings; DispositionsIf either party wishes to do so, it may record the PlantReview Board proceedings at its own expense in suchmanner as it desires.

After the grievance has been discussed at the Plant ReviewBoard session the Company shall furnish a copy of itsdecision in writing and a copy of a summary of the minutesof the meeting to the Union representatives on the ReviewBoard within one week after the close of the session.

(h) Power to Withdraw or Adjust GrievancesThe Union Review Board Committee shall have power towithdraw a Third Stage Grievance, and the designatedCompany representatives shall have the power to adjust aThird Stage Grievance.

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(i) Authority of Regional DirectorThe Regional Director or his/her designated representativeshall have the power to settle or withdraw on behalf of theUnion any case or cases appealed to his level of theprocedure, either before or after the Third Stage dispositionby the Company is received, that in his judgment does notmerit appeal to the next step.

Section 5. Disciplinary Cases(a) Notice of Action Taken

When an employee is given a disciplinary discharge orlayoff, or a reprimand and warning, which is affixed to theemployee’s personal record, the employee’s DistrictCommitteeperson, if available, or if not, one of theemployee’s Unit Committeepersons, will be promptlynotified in writing of the action taken. When disciplinaryaction is taken against an employee who is absent, the UnitCommittee will be notified.

(b) Waiver of RepresentationThe Company will inform the employee of representationrights. When an employee signifies not wanting to have theemployee’s Committeeperson present at a disciplinaryhearing or during an investigatory interview, the employeeshall sign a waiver to that effect.

(c) Time Limit on GrievancesSuch disciplinary action will be deemed final andautomatically closed unless a written grievance is filedwithin three (3) working days from the time of presentationof written notice provided for in Subsection (a) of thisSection. For the purpose of this Section, the phrase“working days” shall not include regularly scheduled daysof rest for employees on necessary continuous 7-dayoperations.

(d) Stage at Which Grievance InitiatedWhere such disciplinary action is taken following a hearingat which the employee’s Committeeperson has been present,or is taken by a Company representative other than theemployee’s Supervisor, any grievance protesting such actionshall be initiated at the Second Stage of the Grievance

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Procedure, subject to the three-day time limit and therequirement that the employee sign the grievance, exceptthat this latter requirement shall not be applicable wheredisciplinary action is taken against an employee in absentia.

A grievance expressly subject to the Grievance Procedureunder Article VI, Section 6 of the Retirement Plan shall beinitiated at the Second Stage.

Section 6. General GrievancesGeneral grievances affecting the employees in a Unit as awhole may be initiated by the Unit Committee directly at theSecond Stage.

Section 7. Postponement of Action on GrievancesAt any Unit Grievance Meeting or meeting of a ReviewBoard, a grievance may be reserved by mutual consent forfurther investigation and consideration at a subsequentmeeting, in which event the applicable time limits shall bemeasured from the close of such subsequent meeting.

Section 8. Fourth Stage - Appeal to UmpireIf a satisfactory disposition is not made of a grievance by theReview Board and if the grievance is the type of case uponwhich the Umpire is empowered to rule, the case may beappealed by the National Ford Department of theInternational Union to the impartial Umpire hereinafterprovided for, in accordance with the following provisions:

(a) Time for AppealNotice of appeal shall be given within four weeks from thedate of the decision of the Review Board.

(b) Notice of Appeal - To Whom GivenSuch notice shall be given by the National Ford Director toLabor Affairs at Dearborn, Michigan, and to the Umpire,with a copy to the designated Company representative in theplant where the grievance arose.

(c) Notice of Appeal - ContentThe notice of appeal shall specify the issue raised by thegrievance and shall include a statement of the nature of thegrievance, together with the award requested.

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Section 9. Special Submissions to Umpire(a) Initiation of Issues; Right to Appeal to Umpire

Any issue involving the interpretation and/or the applicationof any term of this Agreement or supplement thereto may beinitiated by either party directly with the other party.

Upon failure of the parties to agree with respect to thecorrect interpretation or application of the Agreement to theissue, it may be appealed directly to the Umpire if it is anissue upon which he/she is empowered to rule.

(b) Appeal ProcedureIn cases appealed under Subsection (a) of this Section, awritten notice setting forth the specific issue shall be filedwith the Umpire by the appealing party, and copy shall besimultaneously given to the other party.

When the Union is the appealing party, the National FordDepartment shall file such notice, and the copy will be givento the Labor Affairs of the Company in Dearborn. When theCompany is the appealing party, Labor Affairs of theCompany will file such notice, and the copy shall be givento the National Ford Department.

Thereafter, the procedure set forth in Section 11 andfollowing of this Article shall be followed.

Section 10. Withdrawal or Settlement after AppealThe National Ford Department is authorized to withdraw orsettle with the Company any grievance appealed by theUnion to the Umpire at any time before it is heard by theUmpire.

After a case upon which the Umpire is empowered to rulehas been heard by him/her, it may not be withdrawn byeither party without the consent of the other.

Section 11. Briefs and Stipulations(a) Briefs in Umpire Cases

In special submissions, either party may file a brief with theUmpire at the time of the hearing or at any time priorthereto. Either party may file a reply brief not later than fivedays after the hearing.

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In all other cases, either party may file a brief with theUmpire ten days prior to the time of the hearing, and mayalso file a reply brief not later than five days after thehearing, provided that notice of intent to file a reply briefhas been given at least ten days prior to the time of hearing.

A copy of any brief filed with the Umpire shall be filedconcurrently with the opposing party.

The Umpire, for good cause shown, shall have the power toextend the time for filing of briefs.

(b) Stipulations of Facts and IssuesUpon issuance of the agenda by the Office of the Umpire,the parties may agree upon written stipulations concerningthe facts and issues in the cases scheduled for hearing.Agreed-upon stipulations shall be submitted to the Umpireand shall be final and binding upon the parties and theUmpire in the proceedings in the instant case. The Umpirewill not permit the introduction of testimony or evidence onmatters which have been stipulated.

Section 12. Umpire Office - Filing of Notices and Briefs The Umpire shall maintain an office where all notices andbriefs required to be filed with him may be delivered.

Section 13. Umpire Proceedings(a) Hearing Schedules; List of Pending Fourth Stage

Appeals; AgendaThe parties shall establish a schedule of Umpire hearingswhich assures that all Units with pending cases are accordedequality of opportunity in having cases heard by the Umpire.A list of pending Umpire cases will be published for eachUnit four months in advance of the scheduled Umpirehearing to facilitate review of the pending cases byCompany and local and regional Union representatives.Thirty days prior to the date of the hearing the Office of theUmpire shall issue the agenda for the hearing. It will listunresolved Fourth Stage appeals in chronological order bydate of appeal. Cases will be heard by the Umpire at thehearing in the same order. Notwithstanding the foregoing,procedures governing special submissions, discharge and

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similar cases, and further procedures governing hearingschedules, agendas and related matters shall be determinedby the designated representatives of the National FordDepartment and Labor Affairs of the Company.

(b) Investigations and Hearings by UmpireThe Umpire may make such investigation as he/she maydeem proper. The Umpire will hold hearings open to theparties and may examine the witnesses of each party andeach party shall have the right to cross-examine allwitnesses produced and to make a record of all suchproceedings.

Section 14. Time Limits for Umpire DecisionsIt shall be the obligation of the Umpire to the Company andthe Union to rule on cases heard by him/her within thirty(30) days after the hearing. Priority shall be given todeciding discharge cases. If, for good and proper reasonsadditional time is required, the Umpire may request anextension of the time limits set forth above by the partiesand a reasonable extension thereof shall be granted.

Section 15. Umpire’s Inability to Meet Time Limits;Temporary Umpires

Should the grievance case load become so great that theUmpire is unable to comply with the time limit specified inSection 14 of this Article, representatives of the NationalFord Department of the Union and Labor Affairs of theCompany shall analyze the situation and may select one ormore persons to serve as a temporary Umpire. The partiesalso shall determine, by mutual agreement, what cases are tobe submitted to the temporary Umpire.

The temporary Umpire shall follow the same procedure andshall be bound by the same provisions of this Agreement asthe regular Umpire, and all provisions of this Agreementapplicable to decisions of the regular Umpire shall apply todecisions by a temporary Umpire.

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Section 16. Powers of Umpire(a) Scope of Powers

It shall be the function of the Umpire, and he/she shall beempowered, except as his/her powers are limited below,after due investigation, to make a decision in cases ofalleged violations of the terms of this Agreement or writtenlocal or regional agreements supplementary thereto, ofgrievances expressly subject to the Grievance Procedureunder Article VI, Section 6 of the Retirement Plan, ofalleged improper classification of employees, of allegedviolations of negotiated rates, whether or not the Companyhas violated its express commitments set forth in Article IV,Section 8, and upon the scope of his powers.

(b) Limitations on PowersThe powers of the Umpire are limited as follows:

(1) Changes in AgreementsHe/She shall have no power to add to, or subtract from,or modify any of the terms of any agreement.

(2) Wage RatesHe/She shall have no power to establish wage scales,rates on new jobs or, except as he/she is hereinspecifically empowered, to change any wage.

(3) Matters within Company DiscretionHe/She shall have no power to substitute his/herdiscretion for the Company’s discretion in cases wherethe Company is given discretion by this Agreement orby any supplementary agreement, except that wherehe/she finds a disciplinary layoff or discharge is inviolation of the standards set up in this Agreement,he/she may make appropriate modifications of thepenalty.

(4) Negotiable MattersHe/She shall not have the power to provide agreementfor the parties in those cases where they have in theircontract agreed that further negotiations shall or may

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provide for certain contingencies to cover certainsubjects.

(5) Health and SafetyHe/She shall have no power to rule on cases arisingunder Article X, Section 4 of this Agreement.

(6) Production Standards; Management ResponsibilityHe/She shall have no power to rule on any disputearising under Article IV, Section 4(a) of thisAgreement, or to decide any question which, under thisAgreement, it is within the responsibility ofManagement to decide.

In rendering decisions, the Umpire shall have dueregard to the responsibilities of Management and shallso construe the Agreement that there will be nointerference with such responsibilities except as theymay be specifically conditioned by the Agreement.

(7) Job Security and Outside ContractingHe/She shall have no authority in cases of violations ofthe Company’s express commitments set forth inArticle IV, Section 8, except as he/she is hereinspecifically empowered.

Section 17. Disposition of Cases Beyond Powers of Umpire In the event that a case is appealed to the Umpire on whichhe has no power to rule, it shall be referred back to theparties without decision or recommendation on its merits.

Section 18. Government Approval of Awards WhereRequired

If any award of the Umpire requires the approval of anygovernmental agency, the said award will be subject to suchapproval.

Section 19. Finality of Umpire Awards; Exclusiveness ofRemedy

There shall be no appeal from an Umpire’s decision. It shallbe final and binding on the Union, its members, theemployee or employees involved and the Company. TheUnion will discourage any attempt of its members, and will

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not encourage or cooperate with any of its members in anyappeal to any Court or Labor Board from a decision of theUmpire.

Neither the Union nor its members will attempt to bringabout the settlement of any claim or issue on which theUmpire is empowered to rule by any other means.

Section 20. Umpire Fees and ExpensesThe fees and expenses of the Umpire will be shared equallyby the Company and the Union.

The expenses of any witness called by the Umpire shall beallocated to the parties by the Umpire, in his/her discretion.All other expenses shall be borne by the party incurringthem, and neither party shall be responsible for the expensesof witnesses called by the other.

Section 21. Selection and Tenure of UmpireThe impartial Umpire shall be a person jointly selected bythe parties and shall continue to serve only so long as he/shecontinues to be acceptable to both parties.

Section 22. Termination of Umpire(a) Notice

If at any time either party desires to terminate the service ofthe Umpire, it shall give notice in writing to that effect,specifying the date of termination, and sending one copy tothe Umpire and one copy to the other party.

(b) Disposition of Pending CasesThe party terminating the Umpire’s services shall specify inits notice whether or not it is agreeable to have said Umpirerender decisions in all cases pending before him/her up tothe date of said termination, and if it determines that theUmpire may decide such pending cases, the Umpire shallrender decisions thereon not later than thirty (30) days fromthe date of said notice.

If the party terminating the services of the Umpire elects notto have the cases pending before him/her decided by thatUmpire, he/she shall render no further decisions subsequent

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to the time fixed in the notice, and all cases then pendingbefore him/her shall be referred to his/her successor or toany other person the parties may agree upon.

Section 23. Special Procedures - Production Standard, JobSecurity and Outside Contracting, Health andSafety and New Job Rate Grievances

Disputes arising between the parties with respect to ArticleIV, Section 4(a) (Production Standards) and Article X,Section 4 (Health and Safety) of this Agreement, and withrespect to rates on new jobs and cases of violations of theCompany’s express commitments set forth in Article IV,Section 8 (Job Security and Outside Contracting), on whichthe Umpire is not empowered to rule, shall be handled in thefollowing manner:

(a) Production Standards; Job Security and OutsideContracting*(1) First Stage

A dispute involving a production standard shall behandled in the first instance as provided in Section 2 ofthis Article. If the dispute is not settled satisfactorily,the grievance may be referred in writing to the UnitCommittee.

In the event the Unit Committee is dissatisfied with thedisposition of the Supervisor, the grievance may beappealed in writing to the Unit Human ResourcesOffice.

Such appeal shall be made within three (3) workingdays of receipt of the Supervisor’s disposition.

* Grievances protesting violations of Article IV, Section 8, may be filed directly inthe Second Stage of this procedure.

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(2) Second StageWithin three (3) working days of receipt of the appeal,a meeting between the parties shall be held. Suchmeeting shall be attended by a committee of no morethan five (5) representatives of the Union, which mayinclude International Representatives, and by acommittee of no more than five (5) representatives ofthe Company. This committee shall negotiate on thedispute. However, before a dispute is appealed beyondthis stage to the National Ford Department, anInternational Representative will participate in thenegotiations.

At this level of the procedure, and all subsequent levelsof this procedure, with respect to a dispute involving aproduction standard, a representative designated asqualified by the Union shall have the right to examineall the data pertaining to the dispute, and to observe andstudy the job or jobs in question.

If the dispute is not settled within five (5) working daysafter the date of the first meeting, the grievance may beappealed by the Union to the National FordDepartment as provided in Subsection (d) of thisSection (except in cases in the Rouge Area).

(3) Third Stage (Rouge Area Only)If the dispute is not settled at the Second Stageprovided above, the Chairperson of the Unit may referthe grievance to the Third Stage. Such referral shall bemade within three (3) working days from the expirationof the negotiation period provided in the Second Stageabove.

The Third Stage committee for the Union shall consistof the Unit Chairperson, the local qualifiedrepresentative, an officer of the Local Union, and arepresentative of the International Union. TheCompany shall be represented by four (4) members ofManagement, two of whom shall not have participatedin the preceding stages.

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The joint committee provided for in the Third Stageshall have five (5) working days from date of appeal inwhich to attempt to settle the dispute. If the dispute isnot settled during this period of negotiations, thegrievance may be appealed by the Union to theNational Ford Department, as provided in Subsection(d) of this Section.

(b) Health and Safety(1) Local Complaint Procedure

In those Units where a Health and SafetyRepresentative has been appointed in accordance withArticle VI, Section 8, the following shall apply:

(i) An employee believing there is cause forcomplaint that the Company has not madereasonable provision for the employee’s health orsafety may either discuss the matter directly withthe employee’s Supervisor or may take it up withthe employee’s District Committeeperson, whoshall discuss the complaint with the employee’sSupervisor. Every reasonable effort shall be madeto settle complaints promptly at this point throughdiscussion.

(ii) In the event oral discussion with the employee’sSupervisor does not satisfactorily resolve thecomplaint, the District Committeeperson willcomplete a “Health and Safety Complaint Form”,which will include a statement of all the factsrelied on. The District Committeeperson willsubmit the form in quadruplicate to theemployee’s Supervisor who will sign and date theform upon receipt and verify the oral discussionhas been held. Within one (1) working day afterreceipt of the form (unless an extension ismutually agreed upon), the Supervisor willprovide a disposition.

In the event the complaint has not beensatisfactorily resolved under (i) above, and theDistrict Committeeperson wishes to pursue the

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complaint further, the District Committeepersonwill meet with the Superintendent to discuss thecomplaint within a reasonable time after the initialoral discussion in (i) above. The Superintendentwill within one (1) working day after receipt ofthe form (unless an extension is mutually agreedupon) verify on the “Health and Safety ComplaintForm” this second oral discussion has been heldand provide a disposition.

(iii) If the complaint continues to be unresolved, theDistrict Committeeperson shall submit the form intriplicate to the Unit Health and SafetyRepresentative who will investigate thecomplaint. If the complaint is deemed to be valid,the Unit Health and Safety Representative willmeet with the designated Company safetyrepresentative to discuss the matter. The UnitHealth and Safety Representative will present the“Health and Safety Complaint Form” in duplicateto the Company safety representative who willsign and date the form upon receipt.

(iv) The Company safety representative shall withinthree working days after receipt of the form(unless an extension is mutually agreed upon)provide a written disposition setting forth all thefacts relied upon, and return one copy to the UnitHealth and Safety Representative.

(v) If the written disposition is not satisfactory, theUnit Health and Safety Representative may,within three working days from the date of thewritten disposition, or the expiration of any statedtime period required to make necessaryadjustments to resolve the complaint, process awritten grievance into the First Stage as providedin Subsection (b)(2) of this Section.

(vi) General complaints affecting the employees in theUnit as a whole may be initiated by the UnitHealth and Safety Representative directly with the

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Company safety representative by submitting acompleted “Health and Safety Complaint Form.”

(vii) At any Company plant where the Local Unionshall within 30 days from the date hereof so notifylocal Management in writing, this Subsectionshall not be deemed to be in effect and thecontractual situation with respect to resolvinghealth and safety complaints as it existed underthe Agreement between the parties datedDecember 7, 1970, shall be deemed not to havebeen affected in any way by either the fact thatthis Subsection has been inserted in thisAgreement or that such notice of non-effectiveness has been given.

(2) First StageWhen a grievance on health and safety occurs, theCommitteeperson, or the Unit Health and SafetyRepresentative in those Units where one is appointed,will take the matter up with the Supervisor. However,if oral discussion occurred in (b), (1) above, theCommitteeperson/Health and Safety Representativewill not be required to take the matter up with theSupervisor.

If not settled, the grievance may be referred in writingto the Unit Chairperson who shall notify the UnitHuman Resources Office in writing of the existence ofthe dispute.

(3) Second StageThe parties will review the matter and attempt toresolve the dispute on the plant level. The RegionalDirector or his designated representative mayparticipate in such meetings.

If a satisfactory disposition of the grievance is notreached at the plant level, the dispute may be appealedby the National Ford Department under the provisionsof Subsection (d) of this Section.

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(4) Rouge Area ProcedureThe local procedure now in effect for handling healthand safety grievances on the local plant level in theRouge Area shall be continued.

(c) Rates on New Jobs(1) Temporary Rate; Notice to Union

When a new job has been placed in effect which cannotproperly be placed in the existing classification andrate structure, the Company, within thirty days, shallset up a temporary classification and rate covering thejob, and notify the Union thereof in writingimmediately.

(2) Local NegotiationsNegotiations on the rate for the new job shall begin atthe local plant level. If a satisfactory settlement is notmade at the plant level, the dispute may be appealed bythe National Ford Department under the provisions ofSubsection (d) of this Section.

(3) Approval and Effective Date of Negotiated RateAll new rates and classifications must be approved bythe Company’s Labor Affairs and the Union’s NationalFord Department.

The negotiated rate, if higher than the temporary rate,shall be applied retroactively to the date of theestablishment of the temporary classification and rateexcept as otherwise mutually agreed.

(d) Grievances Referred to National Ford Department(1) Local Investigation and Meetings

Upon receipt of appeal from a Local Union, theNational Ford Director shall, in an effort to attempt tosettle the dispute at the local plant level, send anInternational Representative to the plant to investigatethe grievance.

If after completing his/her investigation theInternational Representative so requests, a meetingwith representatives of the Company shall be held.

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Prior to sending an International Representative tomake such an investigation, the National FordDepartment shall notify Labor Affairs.

(2) Appeal to Labor AffairsIf a satisfactory disposition of the dispute is notreached as provided above, it may be appealed bywritten notice from the National Ford Department toLabor Affairs.

A joint committee composed of three (3)representatives of the Union designated by the NationalFord Director, and three (3) representatives of theCompany designated by Labor Affairs, will attempt tosettle the issue.

This committee shall have five (5) working days fromthe date of receipt of such written notice of appeal toLabor Affairs to attempt to settle the dispute by directnegotiations or by any other mutually satisfactorymanner.

Any notice given under this Subsection shall becancelled automatically sixty (60) working days fromthe date of such notice, unless this period is extendedby mutual agreement or the notice is previouslywithdrawn by the Union.

(e) Right to StrikeFailing to reach agreement as herein provided, the Unionshall have the right to strike over such dispute; providedsuch strike is properly authorized in accordance with theprovisions of the International Union’s Constitution and By-Laws.

No strike shall commence subsequent to sixty (60) workingdays from the date of notice given under Subsection (d)(2)of this Section, or any mutually agreed-to extension of suchperiod.

(f) Confinement of IssuesIt is expressly understood and agreed that no grievance,complaint, issue, or matter other than the strikeable issueinvolved will be discussed or negotiated in connection with

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disputes to which this Section is applicable, and the Unionshall not request or insist upon the discussion or negotiationof any extraneous issues either before the authorization of astrike or after the occurrence of a strike.

Section 24. Back Pay(a) Limitations on Retroactivity

The Company shall not be required to pay back wages morethan two working days beyond the verified date of the initialrequest for oral discussion as shown on the form “Record ofOral Discussion;”, unless the circumstances of the casemade it impossible for the employee, or for the Union as thecase may be, to know that he/she, or the Union, had groundsfor such a claim prior to that date, in which case the claimshall be limited retroactively to a period of sixty (60) daysprior to the date the claim was first filed in writing provided,however, that:

(1) In the case of a pay shortage of which the employeecould not have been aware before receiving his/her pay,any adjustments made shall be retroactive to thebeginning of the pay period covered by such pay, if theverified date of the initial request for oral discussion iswithin five working days after receipt of such pay.

(2) In the case of a grievance protesting disciplinary actionfiled in accordance with the time limits specified inSection 5(c) of this Article, the two-working-daylimitation on Company liability referred to above shallnot be applicable.

No decision of the Umpire or of the Company in any onecase shall require a retroactive wage adjustment in any othercase.

For the purpose of this Section the phrase “working days”shall not include regular scheduled days of rest foremployees on necessary continuous 7-day operations.

(b) Time for PaymentErrors resulting in pay shortages shall be corrected withinfive (5) working days from the filing of the grievance.

Back pay awards shall be paid within thirty days of suchaward except where the work involved makes it impractical.

(c) ComputationAll claims for back wages shall be limited to the amount ofwages that the employees otherwise would have earned lessany unemployment compensation or compensation forpersonal services that he/she may have received from anysource during the period of the back pay; provided, that ifthe employee is required to return amounts received asunemployment compensation benefits to the state, suchamounts shall not be deducted from the back pay, andsuitable arrangements will be worked out for the restorationto the state of the money due it; and provided, further, thatno award of back pay shall be reduced by reason of theemployee’s earnings in other employment which he/she hadhad during his previous employment by the Company, to theextent that he does not increase the hours devoted to suchother employment, or by reason of his receipt of incomefrom his/her investment in any business or agriculturalenterprise in which he/she had had an interest during hisemployment by the Company.

Section 25. Extension of and Failure to Meet Time LimitsThe time limits at any level of the Grievance Procedure maybe extended by mutual agreement of the parties. Anygrievance upon which a disposition is not made by theCompany within the time limits prescribed in this Article orsuch extension as may have been agreed to may be referredto the next step in the Grievance Procedure, the time limit torun from the date the time for disposition expired.

Any grievance not carried to the next step by the Unionwithin the time limits prescribed herein, or such extension asmay have been agreed to, shall be automatically closed uponthe basis of the last disposition.

The term “week” as used in this Article means calendarweek.

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Section 26. Notice to Other Party of GrievanceRepresentatives

Each party shall promptly notify the other in writing of therepresentatives it has designated pursuant to this Article, andof any changes therein.

Section 27. International Representatives - Permission toEnter Plants

To facilitate the operations of the Grievance Procedure,representatives of the International Union may enter theCompany’s plants to investigate grievances in the Third andFourth Stages, and grievances arising under Section 23 ofthis Article, when their presence is necessary andappropriate, provided they have secured prior permission ofthe Company.

In requesting such permission, the Union representativeshall designate the grievances he intends to investigate.

The Company representative will grant permission for theUnion representative to visit the plant after a mutuallyagreeable date and time has been set.

ARTICLE VIII

SENIORITY AND RELATED MATTERS

Section 1. Seniority Date(a) General

Seniority shall be computed from the date of hiring into ortransfer into a plant.

(b) Employees on Layoff From Unit Other Than Basic UnitAny employee who has basic seniority in one Unit and who,as of May 25, 1959, is on the active employment rolls ofanother Unit or who subsequently is placed in or transferredto another Unit under circumstances where he/she does notcarry his/her seniority with him/her, or who pursuant toSubsection 1(c) of this Article establishes the TransferLeveling Seniority Date as the employee’s plant senioritydate at a Unit other than his/her basic Unit shall, at his/her

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ARTICLE VIII SENIORITY AND RELATED MATTERS

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first layoff thereafter in a reduction in force, have his/herseniority determined by whichever of the following he/shethen elects:

(i) Such employee may irrevocably waive his/herseniority in his basic Unit and retain at the other Unithis/her latest date-of-entry seniority, which will thenbecome his/her basic seniority (it being understood thatsuch waiver will not break the employee’s “Companyseniority” for purposes of such plans as the vacation,holiday pay, jury duty pay, SUB or retirement planswhere Company, rather than plant, seniority is takeninto account); or

(ii) Such employee may elect to return to his/her basicUnit, in which event he/she shall be placed in, or on therecall list of, his/her basic seniority Unit with full creditfor seniority accumulated while working in the otherUnit to be included in determining his/her seniority insuch basic Unit, and he/she shall retain no seniorityrights in any other Unit, except as otherwise providedin Article VIII, Section 23(c) with respect to skilledtrades seniority.

Any employee who does not elect (i), above, in writingat the place designated by the Company within fivecalendar days after his/her layoff shall be deemed tohave elected (ii).

This Subsection (b) shall not supersede or precludelocal or area agreements pertaining to the seniority dateof an employee on layoff from a plant other thanhis/her basic Unit approved by the National FordDepartment and Labor Affairs.

(c) Transfer Leveling Seniority DateAny seniority employee either on the active employmentroll or on the inactive employment roll with recall rights onOctober 29, 1984 will establish a Transfer LevelingSeniority Date of October 29, 1984. Any employee hired orrehired after October 29, 1984 who becomes a seniorityemployee will establish a Transfer Leveling Seniority Date

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of his/her hire or last rehire date, whichever is the later. Anyemployee who was on the active employment roll as ofOctober 29, 1984, who had not yet established seniority, butwho thereafter was continuously employed and acquiredseniority, shall have established a Transfer LevelingSeniority Date of October 29, 1984.

The plant seniority date of any such employee who is placedin or transferred to another Unit other than his basic Unit,except employees subject to the provisions of Section 24 ofthis Article, will be his Transfer Leveling Seniority Date.When two or more such employees establish the sameTransfer Leveling Seniority Date as their plant seniority inthe new Unit, the employee with the greater Companyseniority or, in the case of skilled trades, the greaterCompany date-of-entry seniority into Appendix F, will beconsidered the senior employee.

Except as specifically provided, nothing in this Subsectionis intended to affect any other seniority provisions of theAgreement or local agreements including those in multi-plant locations.

Section 2. Employees on Rolls June 20, 1941 — SeniorityBreak Period

For those Local Unions which have not locally negotiated a“seniority break period” for use in computing the senioritystatus of employees who were on the payroll on June 20,1941, a four-year break period shall be consideredestablished.

Employees who were receiving Worker’s Compensation onJune 20, 1941, will be considered as having been on thepayroll and shall have cumulative seniority, provided thatthey do not have a seniority break as provided for by localagreement between the Company and the Union.

Section 3. Local Seniority AgreementsSeniority agreements, which have been negotiated locallyand which are still in effect, shall remain in full force andeffect unless changed by local agreement approved by theNational Ford Department of the UAW and Labor Affairs ofthe Company.

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Section 4. Acquiring Seniority; Probationary Employees(a) Acquiring Seniority

New employees and rehired employees shall be regarded asprobationary employees and shall establish seniority afterthe first three (3) months of continuous employment withthe Company, and if retained thereafter shall be placed uponthe seniority list in the seniority group in the Unit or plantwhere they are then working with seniority as of the date ofhiring.

In order to become a seniority employee, a probationaryemployee must have been employed for a total of three (3)months within the year following the date he was hired orlast rehired, whichever is the later. For the purposes of thisSection, periods during which the employee was laid off, oron leave of absence for any reason, or employed on anexcluded classification, shall not be considered as periods ofemployment.*

Following completion of his probationary period, theemployee shall be given seniority as of the date he/she washired or last rehired, whichever is the later, as set forth in thefirst paragraph of this Subsection.

(b) Rights to Transfer and Discharge ProbationaryEmployees The Company may discharge or transferemployees at any time during the probationary period.However, any claim by a probationary employee that his/herlayoff or discharge after 30 days of employment is not forcause, or any claim of discrimination in connection withhis/her transfer or discharge may be taken up as a grievance.

(c) Probationary Employees - Layoff and RecallWhen possible, the Company shall adhere to a policy oflaying off and rehiring probationary employees, within anoccupational group, or within the Labor Pool, in accordancewith their date of hire, provided that the Company shallretain the sole discretion as to the laying off, transferringand rehiring of probationary employees, except in cases ofclaimed discrimination.

* For crediting of periods of military service, see Article VIII, Section 33(b) ofthis Agreement.

When a probationary employee is laid off, his/heremployment shall be terminated unless it is anticipated thatthe layoff will be temporary. If the employee is recalledwithin a period not exceeding the period he/she wasemployed continuously by the Company immediatelypreceding the date of layoff, the Company shall reinstaterather than rehire him/her.

(d) Probationary Employees - Medical LeaveIf a probationary employee is absent on medical leave for aperiod not exceeding the period he was employedcontinuously by the Company immediately preceding thedate such absence commenced, he/she will be reinstated andreturned to work if there is work available in his Unit whichhe/she can perform.

If his period of absence exceeds his/her preceding period ofemployment, the Company shall be under no obligation toreinstate him/her.

(e) Rights of Probationary EmployeesWith respect to matters where provision otherwise has notbeen made, probationary employees are covered by theterms of this Agreement and shall have access to theGrievance Procedure for the enforcement of their rightsthereunder.

Section 5. Loss of SenioritySeniority shall be broken for the following reasons:*

1. (Quit) If the employee quits.

2. (Discharge) If the employee is discharged and the discharge is notreversed through Grievance Procedure.

3. (Absent from Work) If a seniority employee with less than six months’seniority is absent for three (3) working days without

* For expiration of sick leave, see Article VIII, Section 30 of this Agreement.* For retirement, see Retirement Agreement, Section 4.* For acceptance of Separation Payment, see SUB Plan, Article IV, Section 3.

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properly notifying the Company and giving asatisfactory reason for his absence, unless it is notpossible for him to do so.

4. (Failure to Report)If the employee does not, within five (5) working days(excluding Saturdays, Sundays and Holidays) afternotice to report has been sent to him/her, either reportfor work or give a satisfactory reason for his/herabsence, unless it is not possible for him/her to complywith either of these requirements; and provided at leastten (10) working days have elapsed since his/her lastday worked.

Such notice will not be sent where a medical leave hasbeen issued to cover an employee’s disability for aspecific extended period of time based upon a medicalexamination by the plant physician or when anemployee on conditional medical leave providesmedical evidence found acceptable by the plantphysician.

Medical leaves will not be cancelled except in unusualsituations such as suspected abuse of the medical leaveprovision.

In cases where conditional or approved medical leavesof absence have expired, the Company may send anotice to report.

Such notice shall be sent by certified mail with returnreceipt to the employee’s last known address accordingto the Company’s records, and except in cases of recall,the notice shall be substantially in the form set forth inAppendix B, attached. The date on the notice shall bethe same date the Post Office receives the notice formailing.

Disputes as to the Company’s failure to observe theprocedural requirements of this provision, (e.g.,timeliness of notice and transmittal to proper address)and the reasonableness of the employee’s failure torespond to a notice where his period of absence can be

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justified are subject to the regular GrievanceProcedure.

A copy of the notice to report sent an employee will befurnished to the Chairperson of the Unit Committeeand to a Unit Committeeperson designated by the localparties concurrent with the mailing of the notice. Anattending Physician’s report (Form 5166) will beincluded with the Notice sent upon the expiration of anapproved medical leave. However, failure to furnish acopy to the Chairperson of the Unit Committee and tothe designated Unit Committeeperson or failure toinclude a Form 5166 with a Notice will not be the basisfor any claim.

5. (Disability Settlement)If a settlement with the employee has been made withthe approval of the Union for total disability.

6. (Continuous Unemployment)For employees hired subsequent to June 20, 1941, whoare continuously unemployed by the Company for aperiod of time equal to their Company seniority but inno case less than eighteen (18) months.

For employees who have not broken seniority as ofMarch 1, 1982, the period of time shall be not less thanthe following: for employees with less than one yearseniority, eighteen (18) months; for employees withone year but less than two years seniority, thirty-six(36) months; for employees with two but less thanthree years seniority, forty-eight (48) months; foremployees with three but less than four years seniority,sixty (60) months; for employees with four but lessthan ten years seniority, for a period of time equal totheir Company seniority plus twelve (12) months; andfor employees with ten but less than eleven yearsseniority, not less than one hundred and thirty-two(132) months.

Section 6. Seniority ListsThe Company shall continue to furnish a sufficient numberof plant-wide and occupational group seniority lists, inseniority order to each plant and Unit President.

The seniority lists shall include plant and Companyseniority dates, and, in the case of skilled trades, their plantdate-of-entry seniority into their present Appendix Fclassification.

Any challenge as to the sequence of the seniority list shallbe protested on a form mutually agreed upon by theCompany and Union.

Revisions in such seniority lists shall be furnished by theCompany to the above-named Union and the Companyrepresentatives every thirty (30) days in those locationswhere lists are not machine prepared. In plants where saidlists are machine prepared, complete lists shall be furnishedevery thirty (30) days.

Section 7. Seniority-Operation Within OccupationalGroups

Seniority shall be by interchangeable occupational groups ashereinafter defined and agreed upon; such lists ofoccupations are referred to hereinafter as Appendix C.*

Section 8. Seniority-Operation Within Seniority Units(a) Other Than Skilled Groups

Occupational group seniority shall be plant-wide except inthe Rouge Area, where occupational group seniority shall beby separate seniority Units, as now established asBargaining Units; provided, however, that by mutualagreement, two or more Units may be grouped together forseniority purposes, and provided further, that by mutualagreement designated occupations and/or occupationalgroups may have seniority on a plant-wide basis.

(b) Skilled GroupsSeniority in the skilled groups (tool and diemakers,patternmakers, jobbing core makers, jobbing molders,

* Such an Appendix is a part of each local seniority grouping agreement, there isno Appendix C attached to this Agreement.

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power house, construction and maintenance employees)shall be by interchangeable occupational groups on a plant-wide basis.

Section 9. Procedure for Operating Occupational GroupSeniority

It is agreed that the procedure provided in Sections 10through 15 of this Article shall be used in setting up theoccupational groups in each of the seniority Units as nowdesignated as Bargaining Units; provided, however, that theRailroad Seniority Agreement dated February 7, 1945, shallremain in full force and effect, except as amended by mutualagreement.

Section 10. Occupational Groupings - GeneralEach occupational group shall consist of classifications ofsimilar work and may include classifications requiringvarying degrees of skill, training and experience and shall beset up as hereinafter provided.

Section 11. Occupational Groupings - “Designated” Jobs(a) Jobs Covered

The so-called “skilled” jobs in each occupational groupshall be designated and the remaining job classifications inthe group shall be undesignated.

(b) Classification SeniorityIn the designated jobs, employees, in the first instance, shallhave seniority by job classification.

(c) BracketingIf there are two or more designated job classifications in thesame group that are interchangeable, they shall be bracketedtogether and the employee with the least seniority in thegroup of interchangeable designated jobs shall be laid offfirst.

An employee in one designated job classification may notexercise his seniority against any other designated jobclassification in the occupational group, except as isprovided for in this Subsection.

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(d) Bumping into Undesignated ClassificationsAn employee in a designated job, if he/she is subject to alayoff, after having exhausted his/her classificationseniority, shall then exercise his/her seniority against theemployee with the least seniority in the group ofundesignated classifications in the occupational group.

(e) Bumping into Labor PoolIf an employee in the designated job classification does nothave sufficient seniority to displace the employee with theleast seniority in the group of undesignated jobclassifications, he/she then shall exercise his/her seniority,according to his seniority status and rate of pay, in the so-called General Labor Pool, hereinafter described and knownas Group No. 1.

The employee with the least seniority in the rate bracket inGroup No. 1 affected shall then exercise his seniorityagainst the employee with the least seniority in Group No. 1.

(f) Return to Designated Job - Demoted EmployeeIt is agreed that, in the event of a cut in production,necessitating a reduction in force, the Company, upon anincrease in production schedule, shall have the right to recallemployees demoted from a designated job, rather thanpromote an employee with greater seniority.

(g) Return to Designated Job - Laid-off EmployeeAn employee in a designated job classification in a groupwho is laid off shall not be recalled to his/her former job ina designated classification while there is a seniorityemployee in an undesignated job classification in theoccupational group who can qualify for the designated jobclassification, under the provision of Section 2, Article IV ofthis Agreement.

This shall not preclude the Company from moving qualifiedemployees from the Labor Pool to designated jobs.

Section 12. Occupational Groupings "Undesignated" Jobs(a) Bumping in Undesignated Classifications

An employee in the undesignated job classifications in thegroup shall, in the first instance, in the event of a layoff,exercise his/her seniority against the employee with the leastseniority in the group of undesignated job classifications inthe occupational group.

(b) Bumping into Labor PoolIf an employee in the undesignated group of jobclassifications in the occupational group does not havesufficient seniority to hold a job within the group ofundesignated jobs, he/she shall then exercise his/herseniority against the employee with the least seniority in theso called General Labor Pool hereinafter described andknown as Group No. 1.

(c) No Bumping into Designated ClassificationsEmployees in undesignated job classifications in anoccupational group shall not have the right to exercise theirseniority against any employee in a designated jobclassification within the occupational group.

Section 13. Occupational Groupings - General Labor Pool(Group No. 1)

(a) Classifications IncludedAll job classifications not specifically included in one of theoccupational groups in the seniority Unit shall be includedin a General Labor Pool which shall be called Group No. 1,provided that the allocation of new or unlistedclassifications shall be negotiated.

(b) Bumping Within Labor PoolProduction employees in Group No. 1, in the event of areduction in force, shall exhaust their seniority within theirclassification, within the department, and then exercise theirseniority against the employee in Group No. 1 with the leastseniority.

Non-production employees in Group No. 1, in the event ofa reduction in force, shall exhaust their seniority within theirclassification, within the Unit, and then exercise their

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seniority against the employee in Group No. 1 with the leastseniority.

Section 14. Local Occupational Group Agreements -Approval

Agreements between Local Unions and local Managementson changes and additions to Appendix C*, etc., must beapproved by the Ford Department of the International Unionand Labor Affairs of the Company before becomingeffective.

Section 15. Direct Referral of Disputes to Umpire(a) Groupings of Jobs

Upon failure of the designated representative of theCompany and the Union to agree as to the proper groupingof operations, the dispute may be referred directly to theUmpire.

(b) Interpretation of Occupational Group ClausesIt is further agreed that, in the event of a dispute as to theinterpretation of any of the provisions of the “occupationalgroup” clauses of this Agreement, either party shall have theright to refer the dispute forthwith to the impartial Umpire.

Section 16. Reduction in Force(a) Occupational Group Basis

All reductions in force shall be by occupational groups asprovided for in Sections 7 through 15 of this Article.

(b) Ten-Year EmployeesWhen employees with ten (10) years of seniority exhauststheir seniority within the Unit they may elect to:

(1) Take available work or take a layoff. If they takeavailable work, they will carry all their seniority totheir new classification and Unit and shall retain noseniority in their old Unit, except as otherwise agreedto locally.

(2) If there is no “available work” in the plant, they maydisplace probationary employees in any of the Labor

* Such an Appendix is a part of each local seniority grouping agreement, there isno Appendix C attached to this Agreement.

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Pools, plant-wide. In such an event they will carry allof their seniority with them and retain no seniority intheir former Unit.

(c) Deviations from SeniorityThe order of layoff and recall shall be governed by first,seniority of employment, and second, ability. The Companyshall consult with the Union before deviating from strictseniority except where prior consultation is renderedimpracticable because of a sudden interruption orresumption of work. Should there be any dispute involvingthe application of this clause, it shall be subject todetermination through the Grievance Procedure.

(d) Deviation from Normal Operation of OccupationalGroup or Unit Seniority(1) Imbalance Among Groups in a Unit

Recognizing that the normal operation of occupationalgroup seniority may result in the layoff of relativelyhigh seniority employees from one group, includingthe Labor Pool, and the retention of relatively lowseniority employees in another group with the resultthat a substantial and persistent imbalance in senioritybetween those working and those laid off from the Unitmay exist, the parties are free to agree locally in writingto adopt procedures, to the extent and for the timenecessary to meet the particular situation, to provideemployment opportunities for higher seniorityemployees who may be laid off and who are qualifiedto perform the jobs of junior employees who areworking.

(2) Temporary Agreements (Rouge Area)Recognizing that abnormal situations may affect theoperation of the seniority provisions of this Agreementin the Rouge Area in a manner resulting in the layoff ofrelatively high seniority employees in one Unit and theretention of relatively low seniority employees inanother Unit, Labor Affairs and the Local Union shallmeet and evaluate the situation and by mutualagreement may jointly deviate from the ordinary

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application of the seniority provisions of thisAgreement to the extent, and for the time, necessary toprovide employment opportunities for higher seniorityemployees who may be laid off, notwithstanding thatsuch action would displace junior employees whowould otherwise continue to work under the normalapplication of the seniority provisions.

(3) In connection with deviations provided for inSubsections(1) and (2) above, the parties recognize andagree that efficiency and quality in plant operationsmust not be jeopardized and that so-called leveling ofseniority is not a realistic or practical objective.

Section 17. Preparation of Layoff ListsIn the event of a reduction in force other than a temporarylayoff, the Company shall, in preparing the list of employeesto be affected by the layoff including their classification andseniority date, have prior consultation with the appropriateUnion representative where time permits.

After such consultation and the list of employees to be laidoff has been agreed upon, the Union shall not contest theaccuracy of the list through the Grievance Procedure unlessthe Company does not within three (3) days make suchcorrections as might later be suggested by the Union.

In the event of a dispute as to the proper method ofconducting the layoff, the Company’s method shall befollowed and the Union may have recourse to the GrievanceProcedure.

Section 18. RecallFor the purpose of recall, the procedure as stated in theabove Sections will be followed in reverse order.

Section 19. Layoff and Recall of Union OfficersNotwithstanding their positions on the seniority list, all localbuilding or Unit officers (that is, the President and VicePresident) shall have preferential seniority in theirrespective Units in case of a layoff and subsequent recall,provided that there is work available which they canperform, and provided further that in plants with less than

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one hundred (100) employees, deviation from this rule maybe negotiated between Management and the InternationalUnion.

Section 20. Scheduled Reductions in Working HoursIt is recognized that under normal circumstances, operationof the Company’s plants or Units on a forty (40) hour perweek schedule is a desirable objective. The Company willmake every effort, which in its judgment is feasible, to attainthis objective, but both parties recognize that its attainmentis not always possible in view of recurring changes incircumstances which may result in overtime beingscheduled in some weeks and less than forty (40) hours perweek being scheduled in others.

Except under unusual conditions, it is undesirable to operatea Unit at a schedule of employment providing for less thanthirty-two (32) hours per week for more than four (4)consecutive weeks.

In applying the above provisions, a week in which theemployees involved are not scheduled to work shall not betaken into account and shall not be considered inconsistentwith the foregoing objectives. Paid holidays shall becounted as eight (8) scheduled hours of work.

Section 21. Temporary Layoffs(a) Definition and Applicability

A temporary layoff, on model changes only, is defined as alayoff of not more than thirty (30) working days.

A temporary layoff for any other reason, is defined as alayoff of not more than twelve (12) working days.

The provisions covering temporary layoffs shall apply to allemployees, both production and non-production employees,and the so-called “skilled plant-wide” classifications in theRouge Area. The so-called “skilled plant-wide”classifications, are not subject to the model change layoffprovisions of this Agreement.

(b) Right to Deviate from SeniorityIn the event of a temporary layoff, the Company shall havethe right to lay off employees as their work is completed,

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irrespective of their group seniority; provided, however, thatno other employee will be used on the jobs of employeeswho are temporarily laid off.

Upon resumption of work, employees shall be recalled astheir jobs open up.

If necessary to retain some employees as members of askeleton crew in a department during a temporary layoff,seniority employees will be used when practical.

(c) Discussions After 5 DaysAfter five (5) days have elapsed following a temporarylayoff, the Union shall meet with the Company to discussthe practicability of recalling seniority employees to replacejunior employees for the remainder of such temporary layoffperiod; and where the Company agrees that it is practicableto do so, it will make such replacements.

(d) Local NegotiationsDeviations from the terms of Subsections (a), (b) and (c) ofthis Section may be made by agreement between localManagement and the Unit affected for a particulartemporary layoff. Any other agreement to deviate fromSubsections (a), (b) and (c) shall be subject to writtenapproval of the National Ford Department of the Union andLabor Affairs of the Company.

(e) Inverse SeniorityUpon request of the Local Union, the local parties shallenter into an agreement applying the concept of inverseseniority where: (1) the layoff is for a definite time andlimited duration, and (2) all probationary employees havebeen laid off from the affected group referred to below. TheUnion agrees that any such local agreement shall give fullconsideration to and shall not impair plant operatingefficiencies, including, but not limited to, thoseinefficiencies which might occur as a consequence ofundesirable bumping or replacement of employees.Consistent with this requirement, it is further agreed thatemployees shall be laid off and recalled under the terms ofthis inverse seniority layoff procedure by groups (defined by

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classification and department) to be negotiated by the localparties. It is expressly understood that the local parties shallnot enter into arrangements which permit employees oninverse seniority layoff to return to work to be replaced onlayoff by other employees during the period of limitedlayoff. Nor will an employee who is laid off pursuant to aninverse seniority arrangement be permitted to return to workas a result of exhaustion of, or disqualification from, StateUnemployment Compensation Benefits or Company-provided Supplemental Unemployment Benefits. Nothing inthe foregoing shall preclude the Company from recallingany employee prior to the expiration of the limited layoffperiod. Local Unions which believe that a particular layoffwhich does not meet the above criteria warrants theapplication of inverse seniority may make a request to thateffect to the National Ford Department. The National FordDepartment may take up any such requests which it believesto be meritorious with Labor Affairs.

Solely for the purpose of implementing this provision, aLocal Union which includes more than one representationUnit, as defined in Article VI, and local Management mayagree that the term local parties shall mean such respectiverepresentation Units and the local Managementcorresponding with such Units. Any such local agreementshall be in writing and subject to approval by the NationalFord Department of the UAW and Labor Affairs of theCompany.

(f) Limitation on UseThe temporary layoff provisions shall not be used for thepurpose of avoiding seniority adjustments by scheduling aseries of temporary layoffs to meet planned productionneeds.

Section 22. Loans(a) Within Plants

In the event it is necessary to loan employees from oneclassification to another classification within a Unit, or toloan employees from one Unit to another Unit within aplant, the employees with the least seniority on the

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operation, by classification, within the department affectedby the loan shall be the employees to be loaned.

When it is necessary to deviate from the above theCommitteeperson will be notified, and such notificationshall be given in advance when practicable.

(b) Between PlantsLoans from one plant to another plant may be made for aperiod of thirty (30) days; however, this period may beextended by mutual agreement.

Section 23. Transfers(a) Within Seniority Group

The Union recognizes the right of the Company, subject tothe restrictions of other applicable provisions of thisAgreement, to move employees from one occupationalclassification to another occupational classification withinthe employees’ seniority group. However, no employee shallbe moved indiscriminately.

(b) Between Groups or Units Within PlantWhen a seniority employee is transferred from oneoccupational seniority group or Unit to another within aplant, he/she shall carry his full accumulated seniority to thenew group or Unit and shall retain no seniority in his/her oldgroup or Unit. (This Subsection does not apply tooccupations listed in Appendix D to local seniority groupingagreements.)

(c) Between PlantsSeniority employees who are transferred from one plant toanother plant shall be considered seniority employees of thenew plant as provided in Section 1(c) of this Article, subjectto the provisions of Section 24 of this Article.

Transfers of seniority employees from one plant to anothermay only be made with the signed consent of the employeeand his Committeeperson (the National Ford Departmentwill be advised of these transfers) except where placementis provided under other provisions of this Agreement orSupplementary Agreements.

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In the event such transferred employees are affected by areduction in force in the new plant, they shall be laid off orreturned to their original plant according to their election asprovided in Article VIII, Section 1(b). Employees with basicnon-skilled trades seniority in their original plant who donot acquire skilled trades seniority there but who haveacquired skilled trades (Appendix D) seniority in the newplant shall retain such skilled trades seniority in the newplant on return to their original plant and shall be recalledaccording to such skilled trades seniority. If such employeefails to accept such recall, he/she shall retain no seniorityexcept at his original plant.

Section 24. Transfer of an Operation(a) Transfers Affecting Rouge Area Only

In the event of a transfer of an operation from one Unit toanother within the Rouge Area the employees affected shallbe transferred to the new Unit, taking their seniority withthem.

On the partial transfer of an operation, the method oftransferring the employees shall be subject to localnegotiation.

(b) Other Inter-Plant TransfersIn the event of a transfer of an operation from one plant toanother plant other than within the Rouge Area, providingboth plants are covered by this Agreement, an employeewho is offered and accepts a transfer with the operation shallcarry the seniority to the new plant which he had at the oldplant, regardless of the terms of any local agreement.

The foregoing rule shall also apply in the event of a partialtransfer of an operation to a new plant from an old plantwhich may be closed or continued on a reduced employmentbasis. It shall not apply, however, to partial transfers ofoperations incident to adjustments in production schedulesor changes in the products at any location.

Section 25. Discontinuance of Work(a) Classification or Operation Within Unit

In the case of a permanent discontinuance of a classificationor of an operation within a seniority Unit, the employees

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affected shall be transferred to a similar occupational groupon a plant-wide basis within five (5) working days.

(b) Occupational Group Within UnitIn the event of a permanent discontinuance of a group thedesignated and undesignated classifications within thegroup shall exercise their seniority according to theirseniority status and rate of pay in the Labor Pool, Group No.1.

(c) Seniority Unit Within Multi-Unit Plant AreaIn the case of a permanent discontinuance of a seniority Unitthe procedure will be as follows:

(1) If there is a similar group within another Unit thedesignated classifications within the discontinuedgroup will exercise “designated” seniority as defined inSection 11 of this Article, and the undesignatedclassifications shall exercise “undesignated” seniorityas defined in Section 12 of this Article.

(2) Employees of the Labor Pool in the discontinued Unitshall replace all probationary employees in allremaining Labor Pools plant-wide. If the number ofemployees in the discontinued Labor Pool exceeds thenumber of probationary employees in the Labor Poolsof other Units, the surplus employees in the Labor Poolin the Unit affected shall be assigned to jobs in LaborPool groups in other seniority Units, in line with theirseniority.

(d) Time Limit on Transfers - Rouge AreaIn the Rouge Area, in the event of a permanentdiscontinuance of a seniority group or seniority Unit, theCompany shall transfer the employees affected within five(5) working days.

(e) Employees Laid Off - Placement Consideration at OtherPlantsIn the event of permanent discontinuance of work in agroup, Unit, or plant, laid-off employees shall be givenplacement consideration at other plants of the Companyconsistent with the provisions of the Job Security Program,

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preferential placement or other applicable placementarrangements.

Section 26. Offers of Work in Other PlantsAny provisions of this Agreement to the contrarynotwithstanding, the Company, in order to providestabilized employment, shall have the right to offeremployees who have exhausted their seniority within theirseniority Unit any available work within any of the plantscovered by this Agreement, if the plants to which employeesare offered jobs are located in the same labor market area, asdefined by the State Employment Security Commission ofthe state in which the plants affected are located; provided,however, that those plants presently covered by the DetroitArea Availability List Agreement as amended shall beconsidered to be the same “labor market area.”

If no open jobs are available, such employees may beoffered, at the option of the Company, the right to displaceprobationary employees in any other plant in the same labormarket area.

In the event of the discontinuance or partial discontinuanceof a classification or of an operation within a seniority Unit,or the discontinuance or partial discontinuance of a seniorityUnit, the Company may offer the affected employees theopportunity to transfer to available work or to displaceprobationary employees in any of the plants covered by thisAgreement.

For skilled Tool and Die, Maintenance and Construction,and Power House employees, offers of available work andoffers to displace probationary employees shall be limited toTool Room Departments, Maintenance Departments andPower House Departments, respectively.

Employees who have displaced probationary employeesshall not be displaced by probationary employees.

Employees who refuse such offers of available work ordisplacement of probationary employees shall not, by suchrefusal, lose their seniority call back rights.

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Section 27. Employees With DisabilitiesAny employee who has been incapacitated at his regularwork by injury or compensable occupational disease whileemployed by the Company may be employed in other work,in the plant or in any Unit of a multi-unit plant, which he cando, at the discretion of the Company after consultation withthe Union without regard to any seniority provisions of thisAgreement. Laid-off employees with work-relatedincapacities will be recalled in line with seniority only asopenings occur.

The company will not invoke this provision to retainemployees with work related incapacities out-of-line ofseniority when a disparity in seniority of more than twoyears exists.

Section 28. Shift Assignments and Rotation(a) Assignment of Shifts

The Company agrees to the principle that seniorityemployees should be given consideration in assignment ofshifts. However, it is recognized that it is impossible tooperate the plants efficiently with all the older employees onany one shift and, therefore, seniority alone cannot be thesole determining factor in applying the above principle.

Agreements pertaining to shift preference may be negotiatedlocally subject to the approval of Labor Affairs and theNational Ford Department. Any such agreements shall beconsistent with the principle set forth above.

(b) Rotation of ShiftsRotation of shifts shall be determined by the members of thebuilding or Unit, whichever the case may be, with mutualagreement of Management.

Section 29. Personal Leaves of Absence(a) Procedure for Obtaining

An employee requesting leave of absence shall makeapplication to his/her Supervisor on a form to be providedfor that purpose and shall then take the signed form to theEmployment Office for his/her official leave of absence slip.An approved copy of the official leave of absence slip will

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be furnished to the employee before such leave shallbecome effective.

(b) Not Over 30 DaysLeave of absence may be granted for personal reasons for aperiod not to exceed thirty (30) days upon application of theemployee and approval of his Supervisor.

(c) Over 30 up to 180 DaysLeave of absence may be granted for personal reasons for aperiod not to exceed 150 days upon application of theemployee and approval of the Management when theservices of the employee are not immediately required andthere are employees available at the plant capable of doinghis/her work; provided that the employee does not work inany occupation for his/her own gain during the leave ofabsence unless mutually agreed by the Company and theUnion. Leave of absence may be granted under theforegoing conditions for a period exceeding 150 days butnot to exceed 180 days if required for the purpose oftraveling to a foreign country. Any violation of thisprovision may result in the employee losing his seniority,provided that proof of the violation is furnished by theUnion to the Company within fifteen (15) days after date ofreinstatement.

(d) ExtensionLeaves of absence may be extended upon the approval ofthe Employment Office.

(e) Copies to UnionA copy of all approved official leaves of absence formsgranted to employees shall be furnished by the Company tothe Financial Security of the Local Union involved.

Section 30. Medical Leaves of AbsenceAn employee who is unable to work because of injury orillness, and who furnishes satisfactory evidence thereof,shall be granted an automatic sick leave of absence coveringthe period of such disability, subject to the provisions ofSection 5 of this At the expiration of such period, theemployee will be returned to work which the employee can

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perform in accordance with the employee’s seniority, exceptas otherwise provided with respect to probationaryemployees in Section 4 of this Article.

No sick leave shall extend beyond a period of time equal tothe employee’s seniority at the time the employee wasremoved from the active employment rolls of the Companyor 18 months, whichever is greater; provided, however, thata sick leave because of compensable injury or occupationaldisease shall extend for the duration of compensabletemporary total disability. Not later than thirty (30) calendardays prior to the expiration of such period of time, theCompany will send a letter to the employee’s last knownaddress according to the Company’s records reminding theemployee that seniority is subject to being broken becauseof the period of time encompassed by the sick leave asprovided above. A copy of the letter will be furnishedpromptly to the Chairperson of the Unit Committee.However, failure through oversight to send the letter to theemployee or furnish a copy to the Chairperson of the UnitCommittee will not be the basis for any claim.

Section 31. Certain Other Leaves of Absence(a) Union Leaves of Absence

An employee elected to a Union position or selected by theUnion to do work which takes him/her from his/heremployment with the Company shall, upon written requestfrom the Union, submitted to the Company at least threedays prior to the first day of absence, receive a temporaryleave of absence for the period of his service with the Union,and upon his/her return shall be reinstated at work in linewith his/her seniority status in the classification in whichhe/she was engaged last prior to his/her leave of absence;his/her seniority shall accumulate throughout the period ofhis/her leave of absence and, solely for purposes of Art. IX,Sec. 2(c),full weeks of Union leave of absence shall becredited towards the hiring-in rate progression schedulewhen the employee is reinstated upon his/her return. Leavesof absence for a period of a year or more shall be renewedyearly.

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(b) Public Office Leaves of AbsenceA seniority employee elected or selected for a full-timepublic office which takes him/her from his/her employmentwith the Company shall, upon prior written request, receivea temporary leave of absence for the term of such office orone year, whichever is less, and upon his/her return shall bereinstated at work in line with his/her seniority status in theclassification in which he/she was engaged last prior tohis/her leave of absence. His/Her seniority shall accumulatethroughout the period of his/her leave of absence. Suchleaves of absence may be renewed yearly with the approvalof the Company.

(c) Peace Corps Leaves of AbsenceA seniority employee entering the Peace Corps shall, uponprior written request and submission of evidencesatisfactory to the Company, receive a leave of absence forthe period of his service in the Peace Corps, but not toexceed three (3) years. If the employee returns to workwithin thirty (30) days after completion of his/her servicewith the Peace Corps he/she shall be reinstated at work inline with his/her seniority status in the classification inwhich he/she was engaged last prior to his/her leave ofabsence. His/Her seniority shall accumulate throughout theperiod of his/her leave of absence.

(d) Credit Union Leaves of AbsenceA seniority employee who is elected or appointed to a full-time position with a credit union chartered by the federal orstate government and which serves Ford employeesprimarily shall, upon prior written request from the creditunion, receive a temporary leave of absence for the term ofhis position with the credit union or one (1) year, whicheveris less, and upon his/her return shall be reinstated at work inline with his/her seniority status in the classification inwhich he/she was engaged last prior to his/her leave ofabsence; his/her seniority shall accumulate throughout theperiod of his/her leave of absence. Such leaves of absencemay be renewed yearly with the approval of the Company.

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(e) Educational Leaves of AbsenceAn employee with one (1) or more years of seniority shall,upon written request at least sixty (60) days prior to thebeginning date of the leave and subject to the followingconditions, receive a leave of absence for up to one (1) yearto further the employee’s education. When applying for suchleave, the employee must present evidence satisfactory tothe Company of acceptance as a full-time student at anaccredited college, university, or vocational institution; andupon completion of each semester or other school termencompassed by the leave, the employee must presentsatisfactory evidence of continuous attendance at theeducational institution as a full-time student during suchterm(s). The course of instruction pursued must relate to theemployee’s employment opportunities with the Company.Such leave of absence may be renewed with the approval ofthe Company, subject to the same conditions set forth aboveconcerning evidence of acceptance and of continuousattendance at the educational institution as a full-timestudent.

The employee’s seniority shall accumulate throughout theperiod of the educational leave of absence. If the employeecompletes or discontinues such educational program prior tothe expiration date of the leave and makes application forreinstatement within five (5) calendar days of the date ofcompletion or discontinuation, the employee shall bereinstated at work in line with the employee’s senioritystatus in the classification in which the employee wasengaged last prior to the leave of absence.

Section 32. Leaves of Absence - Accumulation of SenioritySeniority shall accumulate during the period of an approvedleave of absence for seniority employees.

Section 33. Military Service; Veterans(a) Employees Reinstated Prior to October 4, 1993 -

Seniority CreditAny employee who, prior to October 4, 1993, has receivedseniority credit for military training or service subsequent toMay 1, 1940, pursuant to provisions of prior agreements

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between the parties, shall continue to receive such senioritycredit.

(b) Reinstatement Following Military ServiceEffective November 23, 2015, employees now serving inthe Armed Forces of the United States or employees whoshall hereafter serve in the Armed Forces of the UnitedStates shall be entitled to reinstatement upon the completionof such service to the extent and under the circumstancesthat reinstatement may be required by the applicable laws ofthe United States, provided that any employee whosedischarge from service is other than dishonorable, shall beaccorded the same reinstatement rights as such laws providein the case of persons honorably discharged. The leave shallnot exceed the term of the initial enlistment and one (1)consecutive reenlistment. In no event will the period ofsuch leave exceed a total of eight (8) years except whenadditional service is involuntary.If the employee is unable to apply for reinstatement byreason of physical disability during the period within whichsuch application is required by law to be made, applicationmust be made within ninety (90) days from the time suchdisability is ended.

For the purpose of this Section, it is understood that none ofthe employees covered by this Agreement has been or isemployed in a temporary position within the meaning of thatterm as used in the applicable laws of the United States, andthat probationary employees shall be entitled to credit forthe period of such service toward the completion of theprobationary period as well as the accumulation of senioritythereafter.

(c) Reinstatement Following Military Service - Effect ofDisabilityAny employee reinstated following a period of training orservice, who has incurred during such period a disabilitywhich prevents him/her from doing the work of the positionto which he/she would otherwise be reinstated shall betreated in the first instance only, the same as an employeewho has been incapacitated at his regular work by injury or

compensable occupational disease as set forth in Section 27of this Article.

To be eligible for these benefits set forth in this Subsection,the employee must have furnished to the EmploymentOffice for his/her plant within thirty (30) days of the timehe/she applied for reinstatement a statement from theVeteran’s Administration, that he/she sustained an injurywhile in such service.

(d) Leave for Government-Provided TrainingAny reinstated veteran who makes application to theEmployment Office for his/her plant shall be granted apersonal leave of absence in accordance with applicableprovisions of this Agreement in order to take full-timeinstitutional training provided by the Government.

The employee granted such leave shall be reinstated withfull seniority for the period of the leave if application forreinstatement is made to the Employment Office withinthirty (30) days from the time of completion ordiscontinuance of such training and not later than five (5)days following expiration of such leave of absence.

Section 34. Accumulation of Seniority - SupervisorsA seniority employee in a classification subject to thejurisdiction of the Union, who has been in the past or will bein the future promoted to Assistant Supervisor, Supervisor,or any other supervisory position, and is thereaftertransferred or demoted to a classification subject to thejurisdiction of the Union shall accumulate seniority whileworking in a supervisory position for any period prior toNovember 24, 1979, and when so transferred or demotedshall commence work in a job generally similar to the onehe/she held at the time of his/her promotion with theseniority ranking he/she had at the time of his/her promotionplus the seniority accumulated while he/she was working inthe supervisory position, for any period prior to November24, 1979, in conformity with the seniority rules of plantscovered by this Agreement.

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Notwithstanding the above, a seniority employee promotedto Assistant Supervisor, Supervisor, or any other supervisoryposition as a vacation replacement on or after October 22,1979, shall continue to accumulate seniority for a period notto exceed six (6) months.

No temporary demotions in supervisory positions will bemade during temporary layoffs.

Section 35. Accumulation of Seniority - Other ExcludedEmployees

A seniority employee in a classification subject to thejurisdiction of the Union, who, subsequent to June 20, 1941,is, or has been transferred to a classification excluded fromthe Contract Unit under Article I, Section 1, of thisAgreement other than plant and fire protectionclassifications, and is thereafter transferred to aclassification subject to the jurisdiction of the Union, shallaccumulate seniority while working on the excludedclassification and when so transferred shall commence workin a job generally similar to the one he/she held at the timeof his/her transfer, with the seniority ranking he/she had atthe time of his transfer, plus the seniority accumulated inaccordance with the provisions of the following paragraphwhile he/she was working in the excluded classification andin conformity with the seniority rules of plants covered bythis Agreement.

A seniority employee who has been transferred to anexcluded classification prior to October 22, 1979, shallcontinue to accumulate seniority while working in anexcluded classification. A seniority employee who istransferred to an excluded classification on or after October22, 1979, will not accumulate seniority while working in anexcluded classification.

An employee hired directly to an excluded classificationshall acquire no seniority rights under this Agreement.

No temporary transfers to or from excluded classificationswill be made during a temporary layoff.

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ARTICLE IX WAGES AND OTHER ECONOMIC MATTERS

ARTICLE IX

WAGES AND OTHER ECONOMIC MATTERS*

Section 1. Wage Rates - General The hourly rates for each classification covered by thisAgreement will remain the same as at the expiration of theAgreement between the Company and the Union datedOctober 4, 2011, except as otherwise provided in thisAgreement, in the Settlement Agreement between theparties dated November 5, 2015, or in any local agreementreferred to in Article X, Section 8 which provides for wagerate adjustments.

Section 2. Wage Rate Increases (a) General Wage Increase

(i) Employees whose straight time hourly wage ratewas $27.825 or more as of the effective date of thisagreement shall receive a three percent (3%)increase added to their base wage rate on theEffective Date of this agreement.

(ii) Effective September 17, 2017, employees who wereeligible for a base wage increase according toSection 2 (a) (i) shall receive a second base wageincrease of three percent (3%) increase added totheir base wage rate.

The General Wage Increase will not be applied to the“increment above” portion of classification pay rates.

(b) Performance Bonus Payments (1) The Performance Bonus provided for in this

Subsection recognizes the principle that acontinuing improvement in the standard of living ofemployees depends upon technological progress,better tools, methods processes and equipment, anda cooperative attitude on the part of all parties insuch progress. It further recognizes the principlethat to produce more with the same amount ofhuman effort is a sound economic and socialobjective.

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Accordingly, it is agreed that the following PerformanceBonus payment shall be made to each eligible employeewho was also eligible to receive a general wage increasein accordance with Section 2(a) above in accordancewith the following table:Eligibility Date Amount Payable During

Week EndingSeptember 19, 2016 Four Percent October 16, 2016

(4.0%) ofQualifiedEarnings

September 17, 2018 Four Percent October 14, 2018(4.0%) ofQualifiedEarnings

An employee shall become eligible for a PerformanceBonus payment as hereinafter defined, provided he/shehas seniority as of the designated eligibility date set forthabove. An employee's Performance Bonus will be based on theQualified Earnings during the 52 consecutive payperiods immediately preceding the pay period in whichthe designated eligibility date falls.Qualified Earnings, as used herein, are defined asincome received by an eligible employee from theCompany during the designated Performance Bonuseligibility year resulting from the following:

Hourly Base Wage*1

Shift Premium*Crew PremiumVacation and Excused Absence Allowance Holiday Pay

1* Including overtime, Saturday, Sunday and Holiday premium payments.

*Skilled Trades, Retirement and Supplemental Unemployment Benefits, ProfitSharing Plan, Tax Efficient Savings Plan and Legal Services Plan are covered byseparate agreements between the parties.

Seven-day Operations Bonus Bereavement PayJury Duty PayApprentice Training Incentive PaymentCall-In PayShort Term Military Duty PayBack pay awards related to the designatedeligibility year

(2) An eligible employee who retires during thePerformance Bonus Eligibility year provided in thisSection and who, but for such retirement, wouldhave had seniority as of the designated eligibilitydate, will qualify for the Performance Bonus asdefined in this Section.

(3) In the case of an eligible employee who dies duringthe Performance Bonus eligibility year, aPerformance Bonus shall become payable as if theywere a seniority employee on the designatedeligibility date and calculated based on theirQualified Earnings during the eligibility year asdefined in this Section. Such Performance Bonuswill be paid to the estate or, if permitted by locallaw, to the next of kin.

(c) Apprentice Rates

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

Section 3. Application of Increases to Spread Rates; RateProgression Under Merit Increase Agreement:

The amount of the increases provided in Section 2(a) ofthis Article that are added to the maximum rate for eachspread rate classification shall also be added to theminimum rates.

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Rate progression in spread rate classifications shall be asprovided in the Merit Increase Agreement attached hereto asAppendix G.

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

Section 4. Inflation Bonus Lump Sum PaymentDuring the current negotiations, the parties agreed toprovide a lump sum payment to each eligible employeerepresented by the Union in accordance with the followingtable:

Eligibility Date Amount Payable during week ending

May 15, 2016 $1500 June 12, 2016May 15, 2017 $1500 June 11, 2017May 15, 2018 $1500 June 10, 2018May 15, 2019 $1500 June 9, 2019Eligible employees are defined as those whose status withthe Company as of the eligibility date is one of thefollowing:

• Active with Seniority

• On temporary layoff status

• On leave pursuant to Family and Medical Leave Act

• On leave of absence beginning not earlier than ninety(90) days prior to the eligibility date.

In addition, should the International Union, UAW-FordDepartment raise any question of equity in applicationregarding specific employees, the Company agrees to meeton such cases in order to review the facts.

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Section 5. Call-in PayAny employee called to work or permitted to come to workwithout having been properly notified that there will be nowork shall receive a minimum of four (4) hours’ pay at theregular hourly rate, except in case of labor disputes or otherconditions beyond the control of the local Management.

Section 6. Shift Premiums(a) No. 3 (Afternoon) Shift

A shift premium of five per cent (5%) of No. 3 shiftearnings, including overtime premium, will be paid toemployees working on the No. 3 (afternoon) shift.

(b) No. 1 (Midnight) ShiftA shift premium will be paid to employees working on theNo. 1 (midnight) shift equal to ten per cent (10%) of No. 1shift earnings, including overtime premium.

(c) Identification of Shifts(1) An employee whose scheduled shift starts on or after 7

P.M. but before 5 A.M. shall be deemed to be workingthe No. 1 (midnight) shift.

(2) An employee whose scheduled shift starts on or after 5A.M. but before 10:30 A.M. shall be deemed to beworking the No. 2 (day) shift.

(3) An employee whose scheduled shift starts on or after10:30 A.M. but before 7 P.M. shall be deemed to beworking the No. 3 (afternoon) shift.

Section 7. Weekly Overtime Premium(a) Amount

Time and one-half will be paid for time worked over forty(40) compensated hours per week.

If an employee’s work schedule is modified by, or at therequest of, the Company, any hours not worked will count ascompensated hours for purposes of credit toward the forty(40) hour requirement. For applying this provision, eligibleShort Work Week hours are considered compensated hourseven though the resultant overtime hours may reduce anemployee’s Short Work Week benefit.

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(b) No. 1 Shift SaturdayExcept for employees working on necessary continuousseven-day operations, employees scheduled to work the No.1 Shift (midnight) Saturday whose shift starts on Fridayprior to midnight and who have not worked forty (40)straight-time hours in the workweek due to a contractualpaid absence, will have such paid absence hours included indetermining the over forty (40) compensated hours in (a)above.1

Section 8. Identification of WorkweekThe workweek shall be deemed to commence with the No.1 shift Monday and end one hundred sixty-eight (168) hoursthereafter.

Section 9. Saturday PremiumTime and one-half will be paid for time worked onSaturdays, provided the employee has worked over forty(40) compensated hours in the workweek, as defined inSection 7 of this Article, except as otherwise provided inSection 12 of this Article, Appendix W, Alternative WorkSchedules, and except for employees regularly scheduled towork Saturday or any portion thereof as the normal fifth dayworked such as (a) an employee whose shift starts Fridayand continues into Saturday, or (b) an employee who isassigned to work on No. 1 Shift (midnight) operationsregularly scheduled to start with the No. 1 Shift (midnight)Tuesday. Schedules described in (b) of the precedingsentence shall not be employed subsequent to thirty (30)days after October 18, 1976 except by mutual localagreement. Employees described in (b) above shall receivetime and one-half for time worked on the No. 1 Shift(midnight) Monday in lieu of Saturday premium.

Section 10. Sunday PremiumDouble time will be paid for work on the calendar Sunday,except as otherwise provided in Section 12 of this Articleand Appendix W, Alternative Work Schedules.

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Section 11. Holiday PremiumDouble time shall be paid for work on holidays asenumerated in Section 22 of this Article.

Section 12. Overtime Premiums - Seven-Day OperationsEmployees working on necessary continuous seven-dayoperations whose occupations involve work on Saturdays,Sundays, and holidays, shall be paid overtime for work onthese days only for time worked in excess of eight (8) hoursper day or in excess of forty (40) hours per week, except asotherwise provided below:

(1) Time and one-half shall be paid for hours worked onthe employee’s first scheduled day off in theworkweek.

(2) Double time shall be paid for hours worked on theemployee’s second regularly scheduled day off in theworkweek.

Time and one-quarter (1-1/4) shall be paid for hoursworked on Saturday or Sunday that are not payable onan overtime basis. Double time shall be paid for hoursworked on any of the designated holidays.

Section 13. Computation of Premium Time; PyramidingPremium payments shall not be duplicated for the samehours worked under any of the terms of Sections 7 through12, inclusive, of this Article.

For purposes of computing daily overtime, a day shall bedeemed to commence with the starting time of theemployee’s shift; provided, however, that daily overtimesubsequent to a change in the employee’s scheduled startingtime, other than daily overtime accrued during the 24-hourperiod commencing with the prior starting time, shall becomputed beginning with the new starting time.

Any hours for which an overtime premium has been paidpursuant to Article IX, Section 7, or a premium has beenpaid for work on Monday pursuant to Article IX, Section 9,or pursuant to Paragraphs 1 and 2 of Article IX, Section 12,shall be excluded from consideration in determining

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whether any premium payment shall be made for any otherhour or part thereof.

Section 14. Computation of Working TimeAs the machine equipment is installed in the various plants,the method of computing time will be changed from 15-minute (1/4 hour) to 6-minute (1/10 hour) periods.

Section 15. Medical Treatment During Working Hours -Time Allowance

An employee who suffers a work injury or contracts anoccupational disease in the course of employment by theCompany will be compensated for the working time lost onthe day in question when approved by the designatedrepresentative of Management, should the employee leavework with permission of supervision and receive medicaltreatment during working hours. In addition, on the day ofthe work injury, employees requiring medical treatmentbeyond their scheduled work hours will be paid for suchtreatment time up to four hours at their time and one halfpremium, provided such employees present suitableevidence of the time spent in treatment.

A claim that such approval has been improperly withheldmay be processed through the Grievance Procedure.

Section 16. Temporary Assignment to Other Plant - Timeand Expense Allowances

If an employee is assigned temporarily to work at a plantother than the one in which he regularly is employed, thefollowing rules shall apply:

(1) If on a day during which the employee is to perform atemporary assignment at another plant, he is requiredby the Company to report at his regular plant andproceed from there to his temporary assignment, and/orto report back at his regular plant following thecompletion of his temporary assignment, he shall becompensated for the resultant time necessarily spent intraveling between the two plants as if it were timeworked.

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(2) In any event, if the employee is required by theCompany to spend a portion of the time during whichhe normally is scheduled to work in traveling to orfrom the plant to which he is temporarily assigned, heshall be compensated for such portion as if it were timeworked.

(3) If the assignment requires inter-city travel (exceptbetween cities in the same metropolitan area), theemployee’s necessary transportation fare shall be borneby the Company.

Nothing in the foregoing shall supersede or cancel any localagreement covering the same subject now in effect.

Section 17. Deduction of OverpaymentsThe Company will not deduct from an employee’s payamounts by which he may have been overpaid in previouspay periods.

This does not apply, however, to overpayments which arethe result of clerical or mechanical errors in calculating anemployee’s pay, where such error is discovered and theemployee and Union are provided a written time stampednotification indicating the amount of the overpayments andthe pay ending dates of the overpayments within thirty (30)days of receipt of the erroneous pay. Deductions will beitemized on the employee’s paycheck stub, pay envelope orequivalent record.

Section 18. Jury Duty PayAny seniority employee who is called to and reports for juryduty (including coroner’s juries) will be paid by theCompany for each day partially or wholly spent inperforming jury duty, if the employee otherwise would havebeen scheduled to work for the Company and does not work,an amount equal to the difference between (i) theemployee’s regular straight-time hourly rate, including shiftpremium and seven-day operations bonus, where applicable,but excluding overtime and any other premiums (or in thecase of incentive employees, their average straight-timehourly earnings, including incentive earnings, but excluding

all other premiums, for the last four pay periods workedimmediately preceding the week prior to the week in whichthe employee reports for jury duty; for the number of hoursup to eight (8) that the employee otherwise would have beenscheduled to work and (ii) the daily jury duty fee paid by thecourt (not including travel allowances or reimbursement ofexpenses). To receive payment under this Section,employees must give the Company prior notice that theyhave been summoned for jury duty and must furnishsatisfactory evidence that jury duty was performed on thedays for which payment is claimed. The provisions of thisSection are not applicable to employees who, without beingsummoned, volunteer for jury duty.

Employees who are called to and report for an interview oran examination to qualify for selection to a jury will beconsidered to have performed jury duty and will qualify forjury duty pay if otherwise eligible as provided in thepreceding paragraph of this Subsection.

A No. 1 (midnight) or a No. 3 (afternoon) shift employeewill be excused from work on either the shift immediatelypreceding the jury service, or the shift immediatelyfollowing the completion of the jury service, at the option ofthe employee. Such employee must notify their immediatesupervisor of their election prior to being absent from work.It is understood that any one day of jury service may not beused to excuse the employee for more than one shift.

Employees who are called to and report for jury duty duringa work day that is within the employee’s scheduled vacationshutdown may request equivalent Excused AbsenceAllowance (EAA) hours for each day served (8 hours)provided the employee furnishes satisfactory evidence thatjury duty was performed. At Alternative Work Schedulelocations, the Excused Absence Allowance time may berequested in increments of one regular shift for each regularwork day served. It is understood that the vacation shutdownpay received will still be retained by the employee, but thedaily jury duty fee paid by the court (not including travelallowances or reimbursement of expenses) will be deducted.

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Section 19. Bereavement PayWhen death occurs in an employee’s immediate family (i.e.,current spouse; parent or stepparent; grandparent or great-grandparent; parent, stepparent or grandparent or great-grandparent of current spouse; child or stepchild; brother,half brother or stepbrother; sister, half sister or stepsister;grandchild) a seniority employee, on request, will beexcused for any three (3) regularly scheduled days of workor any five (5) regularly scheduled days of work in the caseof the death of an employee’s current spouse, parent, child,stepchild, or in the case of multiple deaths of members ofthe employee’s immediate family (or for such fewer days asthe employee may be absent) during three (3) days or five(5) days in the case of the death of an employee’s currentspouse, parent, child, stepchild, or in the case of multipledeaths of members of the employee’s immediate family(excluding Saturdays and Sundays, or, in the case of seven-day operations, excluding regular days off) beginning nolater than the date of funeral or service provided theemployee attends the funeral or service. After makingwritten application therefore, the employee shall receive payfor any scheduled hours of work up to eight (8) per day forwhich the employee is excused (excluding Saturdays andSundays, or, in the case of seven-day operations excludingregular days off) provided the employee attends the funeralor service. In the event the body of a member of theemployee’s immediate family is not buried in ContinentalNorth America solely because the death has physicallydestroyed the body or the body is donated to an accreditedNorth American hospital or medical center for researchpurposes, the requirement that the employee attend thefuneral or service will be waived. Payment shall be made atthe employee’s regular straight-time hourly rate on the lastday worked (or, in the case of incentive employees, theemployee’s average straight-time hourly earnings, includingincentive earnings, for the last four (4) pay periods workedimmediately preceding the week prior to the week in whichthe absence commences) including shift premium and

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seven-day operations bonus, where applicable, butexcluding overtime and any other premiums.

Section 20. Short-Term Military Duty PayAn employee with one or more years of seniority who iscalled to and performs short-term active duty of thirty (30)days or less, including annual active duty for training, as amember of the United States Armed Forces Reserve orNational Guard shall be paid by the Company for each daypartially or wholly spent in performing such duty, if theemployee otherwise would have been scheduled to work forthe Company and does not work, an amount equal to thedifference, if any, between (i) the employee’s regularstraight-time hourly rate on the last day worked (or, in thecase of an incentive employee, the employee’s averagestraight-time hourly earnings, including incentive earnings,for the last four (4) pay periods worked immediatelypreceding the week prior to the week in which the employeereports for military duty), including shift premium andseven-day operations bonus, where applicable, butexcluding overtime and any other premiums, for the numberof hours up to eight (8) that the employee otherwise wouldhave been scheduled to work and (ii) the employee’s dailymilitary earnings (including all allowances except forrations, subsistence and travel). The Company’s obligationto pay an employee for performance of military duty underthis Section is limited to a maximum of thirty (30)scheduled working days in any calendar year; except wherethe days of such active duty are the result of local states ofemergency or riot, in which case they shall not bechargeable against the thirty (30) scheduled working daymaximum.

In order to receive payment under this Section an employeemust give the Company prior notice of such military dutyand upon return to work must furnish the Company with astatement of the employee’s military pay while on such duty.

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Section 21. Seven-Day Operations BonusThe following provisions will apply to employees workingon forty (40) hour rotating schedules on necessarycontinuous seven-day operations:

An employee will be paid a bonus (if any is produced by themethod of calculation set forth in this Section) tocompensate for being so scheduled during any workweek(including a workweek in which such schedule happens torequire an employee to work only Monday through Friday)equal to thirty-five cents (35¢), times the number of hoursthe employee has worked during such workweek, it beingunderstood that, notwithstanding any other provisions of theAgreement:

(1) such bonus will be included in computing holiday pay,bereavement pay, jury duty pay, vacation pay, short-term military duty pay, Sunday, or any other overtimepremium pay;

(2) such bonus will not be added to the base rate of anyclassification, and will not be taken into account incomputing afternoon and night shift premiums, anyincentive earnings, or in computing any other paymentfor hours not worked except as noted in (1) above;

(3) such bonus will not be payable for any hours workedby an employee not working on a necessary continuousseven-day operation and on a forty (40) hour rotatingschedule involving work on Saturdays, Sundays andholidays.

Section 22. Paid Holiday Plan(a) General Eligibility Rules

Unless otherwise provided herein, employees who meet allof the eligibility rules below will be paid eight (8) hours’ payat their regular straight-time hourly rate including shiftpremium and seven-day operations bonus but excludingovertime premium for:

November 16, 2015 Veterans Day (Observed), November 26, 2015 Thanksgiving Day,November 27, 2015 Day After Thanksgiving,

December 24, 2015 Christmas Holiday Period,December 25, 2015 Christmas Holiday Period,December 28, 2015 Christmas Holiday Period,December 29, 2015 Christmas Holiday Period,December 30, 2015 Christmas Holiday Period,December 31, 2015 Christmas Holiday Period,January 1, 2016 Christmas Holiday Period,January 18, 2016 Martin Luther King, Jr. Day,March 25, 2016 Good Friday,March 28, 2016 Day After EasterMay 30, 2016 Memorial Day,July 4, 2016 Independence Day,September 5, 2016 Labor Day,November 8, 2016 Federal Election Day,November 11, 2016 Veterans Day,November 24, 2016 Thanksgiving Day,November 25, 2016 Day After Thanksgiving,December 26, 2016 Christmas Holiday Period,December 27, 2016 Christmas Holiday Period,December 28, 2016 Christmas Holiday Period,December 29, 2016 Christmas Holiday Period,December 30, 2016 Christmas Holiday Period,January 2, 2017 Christmas Holiday Period,January 16, 2017 Martin Luther King, Jr. Day,April 14, 2017 Good Friday,April 17, 2017 Day After EasterMay 29, 2017 Memorial Day,July 4, 2017 Independence Day,September 4, 2017 Labor Day,November 10, 2017 Veterans Day (Observed),November 23, 2017 Thanksgiving Day,November 24, 2017 Day After Thanksgiving,December 25, 2017 Christmas Holiday Period,December 26, 2017 Christmas Holiday Period,December 27, 2017 Christmas Holiday Period,December 28, 2017 Christmas Holiday Period,December 29, 2017 Christmas Holiday Period,January 1, 2018 Christmas Holiday Period, January 15, 2018 Martin Luther King, Jr. Day

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March 30, 2018 Good Friday,April 2, 2018 Day After EasterMay 28, 2018 Memorial Day,July 4, 2018 Independence Day,September 3, 2018 Labor Day,November 6, 2018 Federal Election Day,November 12, 2018 Veterans Day (Observed),November 22, 2018 Thanksgiving Day,November 23, 2018 Day After Thanksgiving,December 24, 2018 Christmas Holiday Period,December 25, 2018 Christmas Holiday Period,December 26, 2018 Christmas Holiday Period,December 27, 2018 Christmas Holiday Period,December 28, 2018 Christmas Holiday Period,December 31, 2018 Christmas Holiday Period,January 1, 2019 Christmas Holiday Period,January 21, 2019 Martin Luther King, Jr. Day,April 19, 2019 Good Friday,April 22, 2019 Day After EasterMay 27, 2019 Memorial Day,July 4, 2019 Independence Day,September 2, 2019 Labor Day,

The parties also agreed that eligible employees shall receiveup to two (2) Family Days. Eligibility, scheduling, andpayment for Family Days shall be as described in a Letter ofUnderstanding on that subject dated November 5, 2015, andsigned by the parties.

Employees must meet the following eligibility rules toreceive holiday pay:

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

(2) The employee would otherwise have been scheduled towork on such day if it had not been observed as aholiday; and

(3) The employee must have worked the last scheduledworking day prior to, and the next scheduled workingday after, such holiday within the employee’s

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scheduled workweek, except in the case of holidayswhich fall in the Christmas holiday period.

(i) In the case of the Christmas holiday period, in2015, starting December 24 through the followingJanuary 1, in 2016, starting December 26 throughthe following January 2 in 2017, startingDecember 25 through the following January 1, in2018, starting December 24 through the followingJanuary 1, 2019 a seniority employee absentwithout excuse on both the last scheduled workingday prior to and the next scheduled working dayafter a Christmas holiday period shall be ineligiblefor holiday pay for all of the holidays within theChristmas holiday period. A seniority employeeabsent without excuse on either the last scheduledworking day prior to or the next scheduledworking day after a Christmas holiday periodshall be ineligible for one (1) of the holidays forwhich he would otherwise be eligible in theChristmas holiday period, but shall, if otherwiseeligible, receive pay for the remaining holidays inthe Christmas holiday period.

(ii) Employees will be called in to work only inemergencies on the following days which are notpaid holidays under this Agreement:

Saturday, December 26, 2015Sunday, December 27, 2015Saturday, January 2, 2016Sunday, January 3, 2016Saturday, December 24, 2016Sunday, December 25, 2016Saturday, December 31, 2016Sunday, January 1, 2017Saturday, December 23, 2017Sunday, December 24, 2017Saturday, December 30, 2017Sunday, December 31, 2017

Saturday, December 22, 2018Sunday, December 23, 2018Saturday, December 29, 2018Sunday, December 30, 2018Employees shall not be disqualified for holiday pay, ifotherwise eligible for such pay, if they decline a workassignment on one (1) or more of the above days.

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

(b) Sunday HolidayWhen any of the above enumerated holidays falls on Sundayand the day following is observed as a holiday by the Stateor Federal Government, it shall be paid as such holiday.

(c) Saturday HolidayWhen a holiday falls on Saturday, eligible employees shallreceive holiday pay provided they have worked the lastpreceding scheduled work day within the week in which thatholiday falls.

(d) Employee on Layoff or Sick LeaveSeniority employees who have been laid off in a reductionof force or who have gone on sick leave during theworkweek prior to, or during the workweek in which theholiday falls shall receive pay for such holiday. A seniorityemployee who is laid off during the second workweek priorto a week in which one or more of the holidays in theChristmas holiday period falls, and who worked his lastscheduled working day prior to such layoff, shall, ifotherwise eligible, receive pay for the holidays fallingwithin the Christmas holiday period. Seniority employeeson layoff or sick leave of absence when the holiday(s)occurs who return to work following the holiday(s) butduring the week in which the holiday(s) falls shall receivepay for such holiday(s).

A seniority employee who is laid off in a reduction in forceand who qualifies for Christmas holiday pay as provided in

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this provision, and who also qualifies for Christmas holidaypay as provided in Appendix K Memorandum ofUnderstanding Temporary Part-Time Employees, will beprovided the greater of the two Christmas holiday payentitlements, but not both.

(e) Employee on Other LeaveIf an otherwise eligible seniority employee is on anapproved leave of absence (other than sick leave) of notmore than 15 days (total duration, including any extensions)during which a holiday occurs, he shall receive holiday payfor such holiday. A seniority employee on a personal leaveof absence which expires during a Christmas holiday period,shall, if otherwise eligible, receive pay for the holidays inthe Christmas holiday period which fall (1) after the finalday of such leave, or (2) on and after the date he notifies hisplant of his availability for work, whichever is later.

(f) Employee on VacationWhen one of the above holidays falls within an eligibleemployee’s approved vacation period, and he is absent fromwork during his regularly scheduled workweek because ofsuch vacation, he shall be paid for such holiday. A seniorityemployee who requests and is granted a vacation whichincludes the last scheduled working day prior to a Christmasholiday period and who also requests and is granted avacation which includes the first scheduled working dayafter such Christmas holiday period, shall, if otherwiseeligible, receive pay for the holidays which fall in suchChristmas holiday period, provided the employee works thescheduled working days immediately preceding andfollowing his vacation when such scheduled working daysare within the workweeks which include what would havebeen the employee’s last scheduled working day before andfirst scheduled working day after the Christmas holidayperiod if he had not been on vacation.

(g) Seven-Day Operations – Eligibility; Effect of HolidayWorkEmployees working on necessary continuous seven-dayoperations shall receive holiday pay in the event the holiday

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falls on one of their regularly scheduled days off orregularly scheduled days of work and they meet the othereligibility requirements of this procedure for paid holidaytime.

(h) Other Operations – Effect of Holiday WorkEmployees not working on seven-day operations who workany of the above holidays shall receive full holiday pay (ifotherwise eligible) in addition to the premium payable inaccordance with Section 11 of this Article.

(i) Failure to Perform Holiday Work AssignmentEmployees who have accepted such holiday workassignment and then fail to report for and perform suchwork, without reasonable cause acceptable to Management,shall not receive pay for the holiday.

(j) Incentive EmployeesThe hourly rate for an employee who is under an incentiveplan during the week in which the holiday(s) falls shall behis average straight-time hourly earnings, includingincentive earnings and shift premium, but excluding allother premiums for the last four pay periods workedimmediately preceding the week prior to the week in whichthe holiday(s) occurs.

(k) Effect of Unemployment CompensationIf, for a week which includes one or more holidays whichfall after December 23 but before the following January 3,an employee supplements his holiday pay for such holidaysby claiming and receiving an unemployment compensationbenefit or by claiming and receiving waiting period credit,to which he otherwise would not have been entitled if suchholiday pay had been treated as remuneration andconsidered disqualifying income for unemploymentcompensation, a deduction of the lesser of the followingamounts will be made from the employee’s earnings fromthe Company:

(1) An amount equal to the employee’s holiday pay foreach week in question, or,

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(2) An amount equal to either the unemploymentcompensation paid to the employee for each week inquestion or the unemployment compensation whichwould have been paid to the employee for each week inquestion if it had not been considered a waiting period.

Section 23. Vacations - Eligibility DatesVacation eligibility dates shall be determined as follows:

(a) 15 or More Years’ Seniority as of 12-1-50The eligibility date for an employee with fifteen or moreyears of seniority on December 1, 1950, shall be December1.

(b) Other EmployeesWith respect to employees not covered by Subsection (a) ofthis Section, the eligibility date for an employee whose hiredate falls after June 1, but not after December 1, shall beDecember 1; the eligibility date for an employee whose hiredate falls after December 1, but not after June 1, shall beJune 1.

(c) Identification of “Hire Date”The hire dates referred to in this Section shall be thoseshown by the seniority records.

If an employee’s seniority shall be broken and hesubsequently shall be rehired, his eligibility date shall bedetermined on the basis of his rehire date as shown by theseniority records.

Section 24. Vacations - Amount; Eligibility Rules(a) General

The amount of vacation to which an eligible employee shallbe entitled shall be based on the employee’s seniority andyears of enrollment on the active employment rolls as of hiseligibility date, and his weeks of enrollment on the activeemployment rolls and absences from his regularly scheduledwork in the year period immediately prior to his eligibilitydate. Further references in this Section to weeks on theactive employment rolls and to absences refer to thoseduring such year period and exclude absences excludedfrom the absence count by Subsection (h).

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(b) One or More Year Employees(1) An employee with one or more years of seniority on his

vacation eligibility date

(i) who is enrolled on the active employment rolls ofthe Company for thirty-two (32) or more weeks,and

(ii) whose absences have not aggregated more thanthirty-five (35) days, shall be entitled to a vacationduring the vacation period as follows:

Years of Years on VacationSeniority Active Rolls Entitlement1 but less One year or 2 weeks’-and 2 daysthan 3 more vacation with 96 hours’ pay_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 but less At some time 2-1/2 weeks’ vacationthan 5 in each of any with 100 hours’ pay

3 years_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5 but less At some time 3 weeks’ vacationthan 10 in each of any with 120 hours’ pay

5 years_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 10 but less At some time 3-1/2 weeks’ vacationthan 15 in each of any with 140 hours’ pay

10 years_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 15 but less At some time 4 weeks’ vacationthan 20 in each of any with 160 hours’ pay

15 years_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 20 or more At some time 5 weeks’ vacation

in each of any with 200 hours’ pay20 years

(2) With the above rules of this Subsection for vacationeligibility otherwise applicable, an employee who isenrolled on the active employment rolls of theCompany less than thirty-two (32) weeks shall receiveone-half of the vacation entitlement provided inSubsection (b)(1); except that an employee with oneyear but less than three years of seniority as of hiseligibility date who is enrolled on the activeemployment rolls of the Company less than thirteen(13) weeks shall be entitled to no vacation.

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(3) An employee who meets all of the other eligibilityrequirements for a full vacation entitlement but whoseabsences have aggregated more than thirty-five (35)days shall have his entitlement reduced by one week, orforty (40) hours.

(4) An employee with less than five years of seniority whohas been enrolled on the active employment rolls of theCompany less than thirty-two (32) weeks and has beenabsent more than thirty-five (35) days shall be entitledto no vacation.

(5) An employee with five or more years of senioritywhose vacation entitlement has been reduced becausehe has been enrolled on the active employment rolls ofthe Company for less than thirty-two (32) weeks shallnot have his vacation entitlement further reducedbecause of the fact that he shall have exceeded thirty-five (35) days of absence.

(c) Less Than One-Year Employees(1) An employee with less than one year of seniority on his

eligibility date

(i) who has seniority as of his first eligibility date,and

(ii) who is enrolled on the active employment rolls ofthe Company sixteen (16) or more weeks in theperiod from date of hire until his first eligibilitydate, and

(iii) whose absences in the period from date of hireuntil his first eligibility date have not aggregatedmore than seventeen (17) days, shall be entitled toa vacation of one (1) week during the vacationperiod with pay for forty (40) hours and two daysExcused Absence Allowance (subject to theprovisions of Article IX, Section 25 (c)) with payfor sixteen (16) hours.

(2) With the above rules of this Subsection (c) for vacationeligibility otherwise applicable, an employee who isenrolled on the active employment rolls less than

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sixteen (16) weeks shall be entitled to one-half weekvacation with pay for twenty (20) hours and two daysExcused Absence Allowance (subject to the provisionsof Article IX, Section 25 (c)) with pay for sixteen (16)hours.

(d) Effect of Workers’ Compensation Payments and ofHoliday Pay(1) A seniority employee who receives workers’

compensation payments while on an approved medicalleave of absence will be credited with one week on theactive employment roll for each week they are onmedical leave of absence and receive workers’compensation payments if:

(i) The employee would have otherwise beenscheduled to work during such week, and

(ii) The employee worked at least three (3) days in awork week during the employee’s eligibility year.

(2) A laid off employee who receives holiday pay will becredited with one week on the active employment rollfor the week in which the holiday falls.

(e) Equivalence of Active Employment(1) Military Service

Solely for the purpose of applying Subsections (a)through (c) of this Section, the time during which anemployee was not on the active employment rolls ofthe Company by reason of service with the ArmedForces of the United States will be deemed equivalentto enrollment on the active employment rolls of theCompany following his reinstatement on such rollsafter such service in determining the amount ofvacation for which he is eligible.

(2) Union Leave of AbsenceSolely for the purpose of applying Subsections (a) and(b) of this Section, entire year periods during which anemployee with one or more years of seniority was noton the active employment rolls of the Company due to

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a Union leave of absence pursuant to Article VIII,Section 31(a) will be deemed equivalent to years ofenrollment on the active employment rolls of theCompany following his reinstatement on such rolls indetermining the amount of vacation for which he iseligible.

(f) Employees Off Rolls on Eligibility Date(1) Reinstated in Following Year

Employees who are off the employment rolls on theireligibility date and who are reinstated during theensuing year will be entitled to a vacation providedthey are eligible for vacation benefits in conformitywith the rules described in Subsections (a) through (c)of this Section.

(2) Not Reinstated in Following YearExcept as otherwise provided in the next paragraph,employees who are off the employment rolls due to (i)a reduction in force, or (ii) being placed on medicalleave expired or medical layoff on their eligibility dateand who are not recalled or who do not return to workfrom such medical absence during the ensuing year,will be entitled at the end of such ensuing year to aproportional amount of vacation benefits. Suchemployees’ vacation will be based upon theiremployment during the vacation period in which theywere laid off or placed on medical leave expired ormedical layoff. Payment to such employees will beequivalent to one-twelfth of the full vacation benefitsthey would have been entitled to if they had continuedto be enrolled on the active employment rolls until theirnext eligibility date for each full calendar month theywere on the active employment rolls since their lastprevious vacation eligibility date.

Seniority employees covered by Subsection (c) of thisSection who are off the rolls due to (i) a reduction inforce, or (ii) being placed on medical leave expired ormedical layoff on their eligibility date and who are notrecalled or who do not return to work from such

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medical absence during the ensuing year, will beentitled at the end of such ensuing year to aproportional amount of vacation benefits. Suchemployees’ vacation will be based upon theiremployment during the vacation period in which theywere laid off or placed on medical leave expired ormedical layoff. Payment to such employees will beequivalent to one-sixth of the full vacation benefitswhich they would have been entitled to if they hadcontinued to be enrolled on the active employmentrolls until their next eligibility date for each fullcalendar month they were on the active employmentrolls since their dates of hire.

(3) Reinstatement Following Military ServiceAny employee who by reason of service with theArmed Forces of the United States is not on the activeemployment rolls of the Company in the yearimmediately prior to his vacation eligibility date, but isreinstated on such records as a full-time employeeduring the ensuing year, shall be entitled to vacationbenefits for the vacation period during which he isreinstated in accordance with the following:

(i) If he is reinstated during the first half of suchensuing year, he shall be entitled to the fullamount of such vacation benefits as he wouldhave been entitled to had he been enrolled as afull-time employee on his eligibility date for suchvacation period.

(ii) If he is reinstated during the last half of suchensuing year, he shall be entitled to one-half of theamount of vacation benefits he would have beenentitled to had he been enrolled as a full-timeemployee on his eligibility date for such vacationperiod.

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(g) Retiring Employees; Employees Laid Off in PlantClosing; Employees Entering Armed Forces; DeceasedEmployees(1) In the case of a seniority employee covered under

Subsections (a) and (b) of this Section, who (i) isretired under the provisions of Section 3 of theRetirement Agreement or retires under the normal orearly retirement provisions of the Retirement Plan, or(ii) is laid off as a result of the closing of the plant atwhich he worked, or who, after his vacation eligibilitydate on or after October 25, 1967, either (iii) enters theArmed Forces of the United States or (iv) dies, avacation benefit shall be paid upon his retirement,layoff, entering the Armed Forces, or death in aproportional amount based upon his employmentduring the vacation period in which he is so retired orso laid off or enters the Armed Forces or dies,equivalent to one-twelfth of the full vacation benefitswhich he would have been entitled to if he hadcontinued to be enrolled on the active employmentrolls until his next eligibility date for each full calendarmonth he has been on the active employment rollssince his last previous vacation eligibility date.

(2) Vacation payments on the same basis as set forth inParagraph (1) of this Subsection shall be made to anyemployee retired for total and permanent disabilityunder the provisions of Article IV, Section 3, of theRetirement Plan, except that eligibility for, andcomputation of the vacation benefit provided for in thisparagraph shall be determined on the basis of his lastday worked, rather than his retirement date.

(3) In the case of a seniority employee covered underSubsection (c) of this Section whose hire date is afterDecember 1, 1967, a vacation benefit shall be paidupon his layoff as a result of the closing of the plant atwhich he worked, his entering the Armed Forces of theUnited States or his death in a proportional amountbased upon his employment during the vacation periodin which he is so laid off, entered the Armed Forces or

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ARTICLE IX WAGES AND OTHER ECONOMIC MATTERSARTICLE IX WAGES AND OTHER ECONOMIC MATTERS

died, equivalent to one-sixth of the full vacationbenefits he would have been entitled to if he hadcontinued to be enrolled on the active employmentrolls until his first eligibility date for each full calendarmonth he has been on the active employment rollssince his date of hire.

(4) In the case of a deceased employee, the vacationbenefits provided under this Subsection shall be paid tothe estate or, if permitted by local law, to the next ofkin.

(5) Payments under this Subsection shall be computed asof the employee’s last day worked in the manner setforth under Subsection (i)(1) or (2) of this Section.

(6) If a retired employee, such laid off employee, or anemployee entering the Armed Forces who has receiveda vacation benefit pursuant to this Subsection is re-employed and becomes eligible for vacation under theother provisions of this Section, on the eligibility datefollowing his retirement, layoff, or entering the ArmedForces, such vacation shall be reduced by the amountof the vacation benefit received under this Subsection.

(h) Time Excluded from Absence Count(1) When employees are absent from their regularly

scheduled work because of work injury, occupationaldisease, leave of absence for reserve military training,Union Leave of Absence pursuant to Article VIII,Section 31(a), or Family and Medical Leave Act leaveto care for the employee’s qualified family memberswith a serious health condition, or because of the birthof an employee’s child or placement of a child with theemployee for adoption or foster care, such absent timewill not be counted in computing the thirty-five (35)days of absence.

(2) When employees are absent from their regularlyscheduled work because of sickness three (3)consecutive working days or more, but not to exceedninety (90) accumulated days in one year, and whofurnish acceptable proof of such sickness to the

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Company Medical Department within two (2) weeksfollowing their return to work, such absent time willnot be counted in computing the thirty-five (35) days ofabsence.Unless the Company Medical Department rejects thesubmitted proof of illness within two (2) weeksfollowing its submission by employees, it willautomatically be considered valid.Disputes as to validity may be subject to the GrievanceProcedure.

(3) In the case of any employee who is a veteran by reasonof service with the Armed Forces of the United States,whether reinstated or hired by the Company, absencesfrom work by reason of either(i) hospitalization at Government expense for a

service-connected disability, or(ii) treatment as an out-patient by a hospital at

Government expense for a service-connecteddisability,

will be regarded as sickness under the provisions ofParagraph (2) of this Subsection, provided, however,that such absence need not be for three (3) consecutiveworking days.

(i) Vacation Rate of Pay(1) Except as otherwise provided in this Subsection,

vacation pay will be computed at the employee’sregular straight-time hourly rate, inclusive of shiftpremium and seven-day operations bonus, whereapplicable, but exclusive of overtime and any otherpremiums, on the date the vacation begins.

(2) For employees under an incentive plan, the hourly rateto be used will be their average straight-time hourlyearnings, including incentive earnings, shift premiumand seven-day operations bonus where applicable, butexcluding all other premiums, for the last four payperiods worked immediately preceding the week priorto the week in which the vacation commences.

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ARTICLE IX WAGES AND OTHER ECONOMIC MATTERSARTICLE IX WAGES AND OTHER ECONOMIC MATTERS

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(3) If on the date an employee’s vacation pay is computed,the employee is temporarily employed at a wage ratelower than that at which the employee is regularlyemployed and which the employee received during themajor portion of the preceding year, the hourly rate forthe computation of vacation pay shall be the latterrather than the former.

Disputes under this Subsection may be consideredunder the Grievance Procedure of the Agreement.

Section 25. Vacations - Scheduling(a) Vacation Period

(1) The vacation period for an employee with a December1 eligibility date shall begin on December 1 and end onNovember 30 of the next year.

(2) The vacation period for an employee with a June 1eligibility date shall begin on June 1 and end on May31 of the next year.

(b) Vacation Time Off ProcedureManagement recognizes the importance of providingvacation time off, in a manner that maintains efficiency ofoperations while giving due consideration to the desires ofemployees.

Management will discuss with the Local Unionrepresentatives no later than February 1 Management’sdecision that: (i) employees will be given vacation time offfrom the job through a normal vacation scheduling programconsistent with the need for maintaining efficient operationsor (ii) a plant vacation shutdown will be scheduled duringprime vacation time. If subsequent to February 1,Management decides that a plant vacation shutdown shouldbe scheduled, such shutdown can be scheduled only bymutual agreement between the local Management and theLocal Union.

In the event Management selects the option of a plantvacation shutdown, the Union will be advised no later thanApril 1 as to the specific shutdown period and also whichemployees have been selected to work during the shutdown


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period consistent with good employee relations andefficiency of operations. Employees selected to work duringsuch shutdown will be given vacation time off from the jobthrough a normal vacation scheduling program duringperiods other than the shutdown period.

Separate and apart from the vacation shutdown, the practicefor granting vacation requests, using Form 2611(Vacation/Excused Absence Pay Requests), will remainunchanged. Approved vacation time off will not be canceledor changed without the consent of the employee.

(c) Excused Absence AllowanceAn employee may use up to one (1) week (40 hours) of hisvacation provided under Subsection (b) of Section 24, aslimited below, in units of no less than one-half day periods(4 hours), with pay at his basic hourly rate, as specified inArticle IX, Section 24(i), on the date each such period ofvacation shall begin, for any of the following purposes:

(1) Excused absences because of his illness for which hedoes not receive accident and sickness insurancebenefits,

(2) Absences excused by the Company because of anypersonal reason, or

(3) Additional scheduled vacation time immediately priorto or following his other vacation time.

Absences under (2) above will be excused provided that: (a)the employee makes written request on a form provided bythe Company at least one week in advance of the requestedday; (b) there will be no adverse impact on the operationsinvolved and if more than one employee is requesting thesame day this will be taken into consideration indetermining the operational impact; and (c) if moreemployees working for the same supervisor request thesame day off than can be accommodated, the employee(s)who requested first will be granted the day off.

The part of his vacation that an employee may use forexcused absences under purposes (1) and (2) above shall notexceed one week (40 hours). In the event his absences

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exceed 35 days or his weeks of enrollment are less than 32as used for determining vacation eligibility, the part of hisvacation that he may so use shall not exceed one-half week(20 hours).

(d) Right to Deny VacationManagement shall have the right to deny vacation, uponpayment of vacation pay as provided in Section 26 of thisArticle, if in its judgment the exigencies of production sorequire.

Section 26. Pay in Lieu of Vacation(a) Employee Denied Vacation

If by the last day of any vacation period an eligibleemployee has not received his proper vacation, theCompany shall pay him a lump sum as vacation pay in lieuof such vacation, the sum to be computed as the amount towhich the employee would be entitled if his vacation wereto begin on the last day of vacation period.

(b) Terminated EmployeeAn employee whose services are terminated for any reasonon or after the date upon which he becomes entitled to avacation and before he has received a vacation shall be paida lump sum in lieu of vacation computed as the amount towhich he would be entitled if his vacation were to begin onthe day on which his employment was terminated.

Section 27. Insurance(a) The Insurance Program

For the duration of this Agreement, the Insurance Programshall be that which is attached hereto, hereinafter referred toas the “Program.”* It consists of two parts, each negotiatedby the Company and the Union and made a part of thisAgreement, one known as “Group Life and DisabilityInsurance” and one known as “Hospital-Surgical- Medical-Drug-Dental-Vision Expense Coverages” or “H-S-M-D-D-V Program.”

* The Insurance Program has been reproduced in a separate booklet.

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(b) FinancingThe Company will make the payments or contributions(collectively “contributions”) due from it for the Program inrespect to insurance premiums, subscription rates,administrative services only arrangements or otherarrangements, in accordance with the terms of the Program.The Company by payment of its contributions shall berelieved of any further liability with respect to the benefitsof the Program, except as otherwise may be required by theEmployee Retirement Income Security Act of 1974(ERISA). The Company shall receive and retain anydivisible surplus, credits or refunds or reimbursementsunder whatever name arising out of the Program.

(c) AdministrationThe Company shall arrange for the administration of theProgram, subject to its provisions. The Company shall beunder no obligation by reason of the Program except in goodfaith to endeavor to obtain its coverages and to fulfill anyother obligations specifically required in this Section 27 orin the Program.

(d) Named Fiduciary and Allocation of ResponsibilitiesPursuant to ERISA, the Company (except where an insureror third party contractor must be treated as a fiduciary toprocess claims or hear appeals from benefit denials) shall bethe sole named fiduciary with respect to the Program and,except as otherwise specifically provided in this Program,shall have authority to control and manage the operation andadministration of the Program.

The Board of Directors of the Company shall have theauthority on behalf of the Company to approve Programamendments except that the Group Vice President andGeneral Counsel, Group Vice President-Human Resourcesand Corporate Services and Executive Vice President andChief Financial Officer are designated to approve Programadditions, deletions and modifications on behalf of theCompany to the extent deemed necessary or appropriateunder ERISA, HIPAA, the Affordable Care Act and such

other laws as may contain requirements for the InsuranceProgram in effect from time to time.

Except as otherwise provided in this Section or in theProgram, the Group Vice President-Human Resources andCorporate Services and Executive Vice President and ChiefFinancial Officer are designated to carry out the Company’sresponsibilities with respect to the Program. The Group VicePresident Human Resources and Corporate Services andExecutive Vice President and Chief Financial Officer mayallocate responsibilities between themselves and maydesignate other persons to carry out specific responsibilitieson behalf of the Company.

In the event of a change in a designed officer’s title, theofficer or officers with functional responsibility for theProgram shall have the authority to the extent described inthis subsection.

Any Company director, officer or employee who shall havebeen expressly designated pursuant to the Program to carryout specific Company responsibilities shall be acting onbehalf of the Company. Any person or group of persons mayserve in more than one capacity with respect to the Programand may employ one or more persons to render advice withregard to any responsibility such director, officer oremployee has under the Program.

(e) Exclusion from Umpire’s PowersThe Umpire shall have no jurisdiction over any matterarising under this Section 27 or under the Program.

(f) Effective Dates(1) Except as otherwise specifically provided in the

Program, its H-S-M-D-D-V Program provisions shallbecome effective November 23, 2015.

(2) Except as otherwise specifically provided in theProgram, its Group Life and Disability Insuranceprovisions shall become effective November 23, 2015,with respect to employees then at work, and on the firstday worked there-after with respect to otheremployees. Group Life and Disability Insurance for

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employees for whom the provisions of the Programshall not have become effective shall be governed bythe provisions, conditions, and limitations of theProgram as constituted on the date each such employeewas last actively at work.

(3) For those to whom they become applicable, theprovisions of the Program shall be used in lieu of theprovisions of the previous programs, and benefitsunder the Program shall be reduced where benefitsreceived under the previous programs would reducebenefits if they had been received under this Program.

Section 28. Moving Allowances(a) Eligibility

An employee who is on the active employment roll on orafter September 1, 1961, shall be eligible for a MovingAllowance if the employee is thereafter offered and acceptsa transfer from one Plant of the Company (hereinafter calledthe original Plant) to another Plant of the Company(hereinafter called the new Plant) if:

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

(ii) an employee files an application for a MovingAllowance not later than six months after the first dayan employee worked at the new Plant and has notapplied for a Separation Payment under theSupplemental Unemployment Benefit Plan.

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

(1) Option 1-Enhanced Relocation:

Employees will receive a Relocation Allowance up to amaximum of $30,000, $6,000 of which will beprovided 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 newlocation.

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In addition, spousal relocation assistance will beprovided.

After one (1) year of employment, employees mayreceive $8,000 if they continue to be employees of thenew location. If an employee is not employed by thenew location after one (1) year of employment solelydue to a subsequent mandatory in-zone placementunder Appendix N, the employee shall receive$8,000 as if the employee were employed by the newlocation after one (1) year. Employees who are placed in accordance withAppendix N and accept the Enhanced RelocationAllowance will not be eligible to initiate another inzone or out of zone transfer as an active employee fora period of 36 months unless the employee’s statuschanges to laid off or Protected. In the event the planthas employees on permanent indefinite layoff with nolikelihood of recall into the active workforce, the 36month period will be eliminated.

Employees receiving the Enhanced RelocationAllowance will terminate their seniority at all otherFord locations and, therefore, not be eligible forrecall/rehire or Return to Basic Unit.

Detailed information regarding payments and otherRelocation Help Services regarding the EnhancedRelocation Allowance will be made available toemployees.

(2) Option 2-Modified Enhanced Relocation:The Modified Enhanced Relocation Option is availableonly to an Employee transferred involuntarily underthe provisions of Appendix N.

An Employee will receive a Relocation Allowance upto a maximum of $30,000, $4,800 of which will beprovided as a signing bonus to cover miscellaneous up-front cash expenditures. An additional amount of$5,200 will be paid to the employee at the newlocation.

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In addition, spousal relocation assistance will beprovided.

If an Employee continues to be an active Employee atthe new location, the following schedule of additionalpayments shall be made on the anniversary of theEmployee’s start date at the new location:

After one (1) year: $10,000After two (2) years: $10,000

An Employee choosing the Modified EnhancedRelocation is eligible to exercise their recall and Returnto Basic Unit rights after six (6) months of employmentat the new location should an opening at their BasicUnit become available.

An Employee who chooses to Return to their BasicUnit will be entitled to receive a maximum amountof $5,000 which will be provided as an up-frontlump sum to cover miscellaneous expenses. AnEmployee choosing to return home, will terminatetheir seniority at all other Ford locations.

(3) Option 3-Basic Relocation:An Employee will receive Relocation Allowance in theamount of $5,000.The employee who accepts the Basic RelocationOption will be eligible to apply for return to Basic Unitas provided in Article VIII, Section 1(b)(ii), afterworking at the plant of relocation for a period of six (6)months or upon indefinite layoff from the plant ofrelocation.

ARTICLE X

MISCELLANEOUS

Section 1. Union Bulletin BoardsIn plants or Units covered by this Agreement the Companywill erect bulletin boards in suitable places mutually agreedupon, to be used solely by the Union for posting thefollowing notices, except that additional notices may beposted by mutual consent.

Notices shall be restricted to the following types:

1. Notices of Union recreational and social affairs.

2. Notices of Union elections, appointments and results ofUnion elections pertaining to the local plant.

3. Notices of Union meetings and educational classes.

The bulletin board shall not be used by the Union or itsmembers for disseminating propaganda of any kindwhatsoever; and among other things shall not be used by theUnion for posting or distributing pamphlets or politicalmatter of any kind whatsoever, or for advertising.

Section 2. Badges and Insignia(a) Plant Protection Employees

All Plant Protection employees shall conspicuously wearinsignia to clearly distinguish them from other employees.

(b) Hourly-Rated EmployeesAll hourly-rated employees shall wear their badgesconspicuously displayed on their outer clothing while onCompany premises.

Section 3. Use of Supervisors on Development WorkWhenever it becomes necessary to develop or perfect a newmechanical process or job, it is agreed that the Companymay use Supervisor or Assistant Supervisor for suchpurpose if a regular employee is not displaced thereby.

Section 4. Health and Safety The Company shall have the obligation to continue to makereasonable provisions for the safety and health of its

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ARTICLE X MISCELLANEOUS

employees during the hours of their employment. LocalManagement is responsible for implementing theseprovisions at each location with the objective of maintaininga safe and healthy work environment. The Union shallcooperate with the Company’s efforts to carry out itsobligations.

The Company shall provide protective devices, includinggloves, wristlets, pads, mitts or other special kind of wearingapparel which it requires employees to wear as a safetymeasure, and any other equipment necessary to protect theemployees from injury and sickness.

Section 5. Smoking Areas which the Company considers as unsafe for smokingwill be so designated and smoking will not be permitted insuch areas.

In undesignated areas smoking on the job will be permitted.Section 6. Lunch Periods (a) Length of Period

A lunch period of thirty (30) minutes shall be allowed toemployees not eating on Company time, except wheredifferent periods may now be in effect or may hereafter beagreed to locally, and provided that the Company mayreasonably alter the length of this period in abnormal orunusual situations.

(b) Scheduling The Company shall schedule each employee’s lunch periodat a regular time except on operations where it finds thatregular scheduling is not feasible, and will avoid requiringan employee to take his lunch period at another time exceptwhere it has a particular need for the employee’s servicesduring that period. Where time permits, the employeesaffected will be notified well in advance of such change.

Except in emergencies, an employee’s regular lunch periodshall not be advanced or delayed by more than one hourunless the employee agrees to such change.

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Section 7. Reporting Absences A system shall be established which will permit anemployee to verify the fact that he has notified the Companyby telephone of his inability to report for work.

Section 8. Local and Supplementary AgreementsAll local, supplementary or other agreements which werenot covered by the notice of desire to amend, modify orterminate given by either party, or any Local Union Unit orManagement are reinstated and such reinstated agreementsand all new local, supplementary or other agreements whichwere reached during the negotiations immediately precedingthe date of this Agreement shall continue in effect subject tothe terms thereof for the duration of this Agreement.

It is agreed that it may be beneficial for Local Unions andlocal Managements to consider and implement innovativeprograms, pilot projects, experiments or other changes topromote human resources development, enhancecompetitiveness, improve job security and related matters atselected Company locations. It is further agreed that, inorder to facilitate and encourage such changes, it may benecessary to change or waive certain provisions of thisAgreement, supplemental agreements and appropriate localagreements at such locations. It is understood that any suchchanges or waivers would not be effective unless agreed toby the local parties involved and approved in writing bothby Labor Affairs of the Company and the National FordDepartment of the Union. Such changes would be effectiveonly at the location(s) specifically designated.

Section 9. Equal Application of Agreement (a) In continuance of the policy established and maintained

since the inception of their collective bargainingrelationship, the Company and the Union agree that theprovisions of this Agreement shall apply to all employeescovered by the Agreement without discrimination, and incarrying out their respective obligations under thisAgreement neither will discriminate against any employeeon account of race, color, national origin, age, sex, sexual

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orientation, gender identity/expression, union activity,religion, or against any employee with disabilities.

(b) In an effort to make the Grievance Procedure a moreeffective instrument for the handling of any claims ofdiscrimination, special effort shall be made by therepresentatives of each party to raise such claims where theyexist, and at as early a stage in the Grievance Procedure aspossible. If not earlier, a claim of discrimination shall bestated at least in the Third Stage Grievance, as provided inArticle VII, Section 4 of this Agreement. The BargainingChairperson or his designated representative, beforedeciding whether to take the grievance to the Plant ReviewBoard, may refer the grievance to the Chairperson of theCivil Rights Committee of the Local Union for a factualinvestigation and report. The member of the Civil RightsCommittee designated by the Chairperson to investigate thegrievance shall not receive pay from the Company for timespent on such activity. The grievance and arbitrationprocedure shall be the exclusive contractual procedure forremedying such discrimination claims.

Section 10. Waiver of Bargaining During Contract TermThe Company and the Union, for the life of this Agreement,each voluntarily and unqualifiedly waives the right, andeach agrees that the other shall not be obligated, to bargaincollectively with respect to any subject or matter referred to,or covered in this Agreement, or with respect to any subjector matter not specifically referred to, or covered in thisAgreement, even though such subjects or matter may nothave been within the knowledge or contemplation of eitheror both of the parties at the time that they negotiated orsigned this Agreement.

Section 11. Partial Invalidity of Agreement (a) In the event that any of the provisions of this Agreement

shall be or become legally invalid or unenforceable, suchinvalidity or unenforceability shall not affect the remainderof the provisions hereof.

(b) If any legal proceeding to which Ford Motor Company orthe Union is a party invalidates or makes unenforceable any

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provision of this Agreement, and either party believes thatrevision of the provision to conform to legal requirementswould be preferable to having it remain invalid orunenforceable, the National Ford Department and LaborAffairs shall discuss such possible revisions. If, as a result ofthese discussions, any revisions are made to this Agreement,such revisions will become effective immediately and be ineffect for the duration of the Agreement without beingconditioned upon ratification by the Union.

Section 12. Recasting of Agreement The National Ford Department of the Union and LaborAffairs of the Company shall be authorized to rearrange,simplify, and clarify the language of the present Agreementto facilitate its use as a working document; but not to changein any way its substance or meaning.

When both the National Ford Department and Labor Affairsare satisfied that they have a revised version of theAgreement which meets the foregoing standards, they areauthorized to substitute the revised form of the Agreementfor this present form of the Agreement, but only upon theunderstanding that if any disputes should develop laterconcerning the meaning or intent of any of the terms of suchrevised Agreement, reference shall be made back to theAgreement in its present form for the purpose of resolvingsuch disputes.*

* This Agreement in its present form represents a rearrangement, withoutsubstantial revision in language, developed and approved pursuant to this Section.

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ARTICLE XI DURATION OF AGREEMENT

ARTICLE XI

DURATION OF AGREEMENT

Section 1. Ratification of Agreement This Agreement shall become effective on the first Mondayafter receipt by the Company from the Union of writtennotice that this Agreement and the other agreementsexecuted by the parties as of the date thereof have beenratified by the Union. Said other agreements executed by theparties as of the date thereof, which must be ratified andbecome effective as a condition of this Agreement becomingeffective, are the following:

Skilled Trades Supplemental Agreement, AgreementConcerning Retirement Plan, Agreement ConcerningSupplemental Unemployment Benefit Plan, AgreementConcerning Profit Sharing Plan, AgreementConcerning Tax-Efficient Savings Plan for HourlyEmployees, and the UAW-Ford New Legal ServicesPlan for UAW-Represented Hourly Employees.

Section 2. Expiration DateThis Agreement and related supplemental agreements shallcontinue in full force and effect until 11:59 p.m. September14, 2019.

Section 3. Notice to Modify or Terminate; AutomaticRenewal

This Agreement shall continue in effect for successiveyearly periods after September 14, 2019, unless notice isgiven in writing by either party at least sixty (60) days priorto September 14, 2019, or any anniversary date thereafter, ofits desire to modify, amend or terminate this Agreement.

If such notice is given, this Agreement shall be open tomodification, amendment or termination, as such noticemay indicate, on September 14, 2019, or the subsequentanniversary date, as the case may be.

Section 4. Addressing of NoticesNotices shall be in writing and shall be sufficient if sent bymail addressed, if to the Union, to International Union,United Automobile Workers of America, 8000 EastJefferson Avenue, Detroit, Michigan, 48214, or to such otheraddress as the Union shall furnish to the Company, inwriting; and, if to the Company, to Ford Motor Company,Dearborn, Michigan, 48126 - 2701, or to such other addressas the Company shall furnish to the Union, in writing.

* * * * *

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IN WITNESS WHEREOF, the parties hereto have duly executedthis Agreement as of the date first above written.

FORD MOTOR COMPANY

William C. Ford, Jr. Jim Larese Mark R. Fields James E. Brown Joe Hinrichs Steve GuilfoyleJohn J. Fleming Tyffani Morgan-SmithWilliam P. Dirksen Mark JonesBruce Hettle Julie LavenderStacey Allerton Stephen M. KulpBernie Swartout Terri FaisonJack L. Halverson John WrightAlan Evans Don GelinasFrederiek Toney Cameron RueschAnthony Hoskins Christine BakerAlex MaciagHelmut E. NittmannDavid Cook

UAW

International Union National Ford CouncilDennis Williams Bernie Ricke, Subcouncil #1Jimmy Settles Scott Eskridge, Subcouncil #2Greg Drudi Anthony Richard, Subcouncil #1Chuck Browning Tim Rowe, Subcouncil #2Darryl Nolen Fred Weems, Subcouncil #2Bob Tiseo Jeff Wright, Subcouncil #2Don Godfrey Greg Tyler, Subcouncil #3Garry Bernath Mike Beydoun, Subcouncil #3

T. J. Gomez, Subcouncil #4Mark Payne, Subcouncil #4Dave Mason, Subcouncil #5Jim Caygill, Subcouncil #5

Romeo Torres, Subcouncil #7Anderson Robinson Jr., Recording Secretary

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APPENDIX A

ASSIGNMENT & AUTHORIZATION FOR CHECKOFF OF MEMBERSHIP DUES*

INTERNATIONAL UNION, UNITED AUTOMOBILE,AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERSOF AMERICA (UAW)

To my employer:

I hereby assign to that Local Union of the International Union,United Automobile, Aerospace and Agricultural ImplementWorkers of America (UAW), designated by the International Unionto the Company, in writing, as having jurisdiction over the Unitwhere I am employed, from any wages earned or to be earned by meas your employee, or from any Regular SupplementalUnemployment Benefits to be paid to me, such amount as may bein effect, from time to time, during the effective period of thisassignment and authorization, and due from me to the Union as mymonthly membership dues in said Union, and (if owing by me) anyinitiation fee. I authorize and direct you or the Trustee of the Ford-UAW Supplemental Unemployment Benefit Plan Fund to deductsuch amounts from my pay or from any Regular SupplementalUnemployment Benefits payable to me during each calendar monthin accordance with such arrangements as may be agreed to betweenthe Company and the Union, and to remit the same to the aboveLocal Union.

This assignment and authorization may be revoked by me only atthe times and in the manner hereinafter provided. I may revoke thisassignment as of any anniversary date hereof by written notice,signed by me, of such revocation received by the Company byregistered mail, return receipt requested, not more than twenty (20)days and not less than ten (10) days before any such anniversarydate. I may also revoke this assignment by written notice, signed byme, of such revocation received by the Company by registered mail,return receipt requested, at any time when there is not in effectbetween the Company and the Union an agreement that theCompany will check off membership dues in behalf of the Union.

APPENDIX A CHECK-OFF OF MEMBERSHIP DUES

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Signed: ______________________________________________Note: Other information, including name, date, location and social security numbermay be on the form in such manner as to facilitate record keeping.

* This form will be utilized commencing January 1, 1980.

APPENDIX A CHECK-OFF OF MEMBERSHIP DUES

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APPENDIX B

FIVE-DAY NOTICE

Our records show that it has been five or more working days sinceyou last worked. If you do not, within 5 working days (excludingSaturdays, Sundays and Holidays) from the above date, eitherreport to the Employment Office for work or give a satisfactoryreason for your absence to the Employment Office in writing or bytelephone*, your employment will be terminated and you will loseyour seniority (unless it is impossible for you to comply with theabove). If you are unable to work because of illness or injury, andso report to the Employment Office within the time stated above,you will be granted a sick leave of absence to cover the period ofyour disability upon presenting satisfactory evidence thereof.

To telephone, call ________________________Ext. ________

*Request call-in code number.

APPENDIX B FIVE-DAY NOTICE

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APPENDIX G

MERIT INCREASE AGREEMENT

Ford Motor Company, hereinafter referred to as the “Company,”and the International Union, United Automobile, Aerospace andAgricultural Implement Workers of America, hereinafter referred toas the “Union,” enter into this Agreement superseding theAgreement on the same subject entered into in February, 1944:

(1) This Agreement embodies the plan for making merit increasesand the procedures which shall govern the making of meritincreases in all of the United States plants and branches of theCompany and covers all classifications and occupationscarrying spread rates. It does not apply to increases which arethe result of reclassifications.

(2) Increases between the minimum and maximum rate for anyoccupation or classification shall be based upon the merit andability of the employee involved.

(3) Except as provided in the next paragraph, a merit increase shallbe in the amount equal to one increment between the minimumand maximum of the spread rates. An increase is defined forpurposes of this Agreement as 5¢ per hour or such otheramount as results from the application to base hourly rates ofpercentage increases, whichever is greater.

(4) An employee having special merit and ability may receivespecial consideration for a merit increase in the amount of twoincrements. In determining whether an employee meritsspecial consideration, the Company shall take into account theemployee’s background in the occupation at which he isworking.

(5) No employee shall receive a merit increase before theexpiration of at least sixty days from the date his last precedingmerit increase went into effect.

(6) Merit increases will be considered upon recommendation bythe employee’s Supervisor on a form to be provided for suchpurpose. Such form shall be presented to a Wage Analyst orindividual assigned a Wage Analyst’s duties. All copies of the

APPENDIX G MERIT INCREASE AGREEMENT

145

form shall be initialed by the Wage Analyst, or person actingas Wage Analyst, and be dated by him when he is presentedwith such form. Two copies of the form shall be retained at theSupervisor’s desk, one of which shall be available to the Unitor Building Chairperson, as the case may be, and shall be forthe information of the Committeepersons. The effective date ofincrease, if finally approved, will be a date no later than thefirst day of the second pay period following the WageAnalyst’s initialed date shown on the form.

(7) The Wage Analyst shall have no authority to review the meritof any employee for whom a merit increase has beenrecommended and approved, but shall have the right todetermine whether or not the employee for whom an increasehas been recommended is actually working in theclassification concerned and that the recommended increasemeets the other eligibility requirements. Determination by theWage Analyst under this paragraph shall be subject to theGrievance Procedure provided in the Collective BargainingAgreement.

This Agreement shall become effective concurrently with the newCollective Bargaining Agreement which replaced the CollectiveBargaining Agreement dated September 20, 1958.

APPENDIX G MERIT INCREASE AGREEMENT

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APPENDIX H

MEMORANDUM OF UNDERSTANDING VOLUNTARY OVERTIME

Introduction The parties recognize that the operations of the Company are highlyintegrated. An interruption at one stage of the production process,whether during the regular workday, workweek, or overtime orother premium hours, can cause costly interruptions of the process.Thus regular attendance not only on straight-time, but duringovertime periods as well is essential.

It is recognized that employees should be able to exercise discretionconcerning the acceptance of certain overtime assignmentsconsistent with the needs of the Company. It is also recognized thatManagement needs sufficient notice of employee availability towork in order to plan efficient operations.

The provisions of this Memorandum of Understanding represent anaccommodation between the needs of the Company and the desireof individual employees for an option to decline overtime workassignments.PART A. RIGHT TO DECLINE CERTAIN OVERTIME ASSIGNMENTS Except as otherwise provided in Part B hereof:

1. Daily Overtime Hours in excess of nine (9) hours worked per shift shall bevoluntary, except as otherwise provided in this Memorandumof Understanding, for an employee who shall have notified theCompany in accordance with Paragraph 16.

2. Saturday Overtime Employees may be required to work Saturdays; however,except as otherwise provided in this Memorandum ofUnderstanding, an employee who has worked two or moreconsecutive Saturdays may decline to work the following(third) Saturday provided (a) the employee shall have notifiedthe Company in accordance with Paragraph 16, and (b) theemployee has not been absent for any reason (excluding

APPENDIX H MEMORANDUM OF UNDERSTANDINGVOLUNTARY OVERTIME

147

absences for which pay is received under Article IX, Sections18, 19, 22 and 25(c)) on any day during the week preceding theSaturday. Absences excluded under 25(c) above must beapproved in advance. For purposes of this Paragraph,Saturday work shall not include hours worked on Saturday byemployees regularly scheduled to work Saturday or anyportion thereof as the normal fifth day worked such as (i) anemployee whose shift starts Friday and continues intoSaturday, or (ii) an employee who is assigned to work on No.1 Shift (midnight) operations regularly scheduled to start withthe No. 1 Shift (midnight) Tuesday.

3. Sunday OvertimeExcept as otherwise provided in this Memorandum ofUnderstanding, overtime work on Sundays shall be voluntaryand employees may decline to work Sunday; provided that (a)the employee shall have notified the Company in accordancewith Paragraph 16, and (b) the employee has not been absentfor any reason (excluding absences for which pay is receivedunder Article IX, Sections 18, 19, 22 and 25(c)) on any dayduring the week preceding such Sunday, except for a Saturdaywhich the employee declined to work pursuant to Paragraph 2above. Absences excluded under 25(c) above must beapproved in advance. For purposes of this Paragraph, Sundaywork shall not include those hours worked on Sunday whichare part of an employee’s normal five-day workweek (SundayP.M. through Friday A.M.).

4. Daily and Saturday Overtime - Car and Truck AssemblyPlants and Tractor Assembly Operations Notwithstanding Paragraphs 1 and 2, above, the followingprocedure shall govern employees in the car and truckassembly plants and in the tractor assembly operations, exceptas otherwise provided in this Memorandum of Understanding.

(a) Management shall have the right to designate, during amodel year period, beginning at the completion of themodel launch exemption period stated in Paragraph 9,below, and ending two weeks preceding the announcedmodel build-out date, nine Saturdays as nonvoluntaryovertime workdays. All other Saturdays are voluntary,


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except as otherwise provided in this Memorandum ofUnderstanding, and employees may decline to work anyother Saturday during such model year, provided (a) heshall have notified the Company in accordance withParagraph 16 and (b) he has not been absent for anyreason on any day during the week preceding anySaturday which he elects not to work.

(b) In such plants or operations, daily hours in excess of tenhours worked per shift and Saturday hours in excess ofeight hours per shift shall be voluntary, except asotherwise provided in this Memorandum ofUnderstanding.

5. Employees Working on Necessary, Continuous Seven-DayOperations Notwithstanding Paragraphs 1 through 3 inclusive, employeeson necessary, continuous seven-day operations shall begoverned by the following:

(a) Daily Overtime - Hours in excess of nine (9) hoursworked per shift shall be voluntary except as otherwiseprovided in this Memorandum of Understanding for anemployee who shall have notified the Company inaccordance with Paragraph 16.

(b) First Regularly Scheduled Day Off in the Workweek -Employees may be required to work one of their regulardays off in a workweek; however, except as otherwiseprovided in this Memorandum of Understanding, anemployee who has worked one regular day off in two (2)or more consecutive weeks may decline to work oneregular days off in the following (third) week provided (1)the employee shall have notified the Company inaccordance with Paragraph 16, and (2) the employee hasnot been absent for any reason (excluding absences forwhich pay is received under Article IX, Sections 18, 19,22 and 25(c)) on any of the five preceding regularlyscheduled days of work. Absences excluded under 25(c)above must be approved in advance.


149

(c) Second Regularly Scheduled Day Off in the Workweek -Except as otherwise provided in this Memorandum ofUnderstanding, an employee may not be required to worka second regularly scheduled day off in a workweek;provided, however, that (1) the employee shall havenotified the Company in accordance with Paragraph 16,and (2) the employee has not been absent for any reason(excluding absences for which pay is received underArticles IX, Sections 18, 19, 22 and 25(c) on any of thefive preceding regularly scheduled days of work.Absences excluded under 25(c) above must be approvedin advance.

6. Exempt Operations Employees on the following operations shall be exempt fromthe provisions of this Memorandum of Understanding: (a)railroad operations and (b) over-the-road trucking operations.

7. Emergencies The provisions of this Memorandum of Understanding thatlimit or restrict the right of the Company to require employeesto work daily overtime or Saturdays or Sundays shall besuspended in any plant whose operations are interrupted byemergency situations, such as single breakdowns of four hoursor more,* government mandated work, power shortages,strike, fire, tornado, flood or acts of God, for a period of timenecessary to overcome such emergencies.

8. Critical Plants (a) Critical plants or parts of plants are those that are crucial

to the integrated supply system of the Company andwhose output is essential to meeting the scheduledproduction of one or more other plants or of customers,and as a result, must operate, in whole or in part, seven (7)days a week.

* Any breakdown is to be considered justification for suspending the limitations onthe Company’s right to require overtime work for purposes of correcting thebreakdown itself; the Company’s right to suspend such limitations for the purposeof making up lost production is, however, in the case of breakdowns, limited toproduction lost as the result of single breakdowns of four or more hours.


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(b) The Company may, from time to time, designate plants orparts of plants as critical, provided, however, that fifteen(15) days prior to making such designations, it willinform the National Ford Department of the InternationalUnion, which will indicate its objections, if any, to a plantor plants being so designated.

(c) Any plants or part thereof that the Company designates ascritical, shall, for a period of ninety (90) days after it is sodesignated, be exempt from the provisions of thisMemorandum of Understanding that limit or restrict theright of the Company to require employees to work dailyovertime or on Saturdays or Sundays or entitle employeesto decline to work at such times.

9. Changeover or Model Change (a) The provisions of this Memorandum of Understanding

that limit or restrict the right of the Company to requireemployees to work daily overtime or Saturdays orSundays shall be ineffective in each of the car and truckassembly plants, and tractor assembly operations (a)beginning on a date two (2) weeks preceding theannounced build-out date and ending on the build-outdate, i.e., when the plant produces for sale the last unit ofthe model it has been producing; provided, however, theabove mentioned provisions may be ineffective for up totwo (2) additional weeks, provided the Company givesadvance notice of supply or other problems which wouldinterfere with the build-out, and (b) for the week in whichit launches, i.e., after the build-out, frames the first unit ofa new model, and for three (3) weeks thereafter or untilthe line speed reaches scheduled production, whichever islater.

(b) Said provisions shall likewise be ineffective during modelchange time each year in plants other than car and truckassembly plants, or tractor assembly operations forperiods to be designated by plant Management that shallnot exceed, in the aggregate, four (4) weeks. LocalUnions will be advised in advance of such designatedperiods.


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10. New Plants, New Car or Truck Line Programs or NewShifts The provisions of this Memorandum of Understanding thatlimit or restrict the right of the Company to require dailyovertime work or work on Saturdays or Sundays shall beineffective:

(a) at any plant the Company builds or buys and remodels fora period of one year after regular production in such plantstarts;

(b) at any car and truck assembly plant at which theCompany launches a new car line or new truck line or acar or truck line that is new to that plant for a period ofone year after regular production starts in such plant andending with that model year build-out, i.e., when the plantproduces for sale the last unit of the model it has beenproducing, except an employee who has worked two ormore consecutive Saturdays may decline to work thefollowing (third) Saturday provided (1) the employeeshall have notified the Company in accordance withParagraph 16; and (2) the employee has not been absentfor any reason (excluding absences for which pay isreceived under Article IX, Sections 18, 19, 22 and 25(c))on any day during the week preceding the Saturday.Absences excluded under 25(c) above must be approvedin advance. For purposes of this Paragraph, Saturdaywork shall not include hours worked on Saturday byemployees regularly scheduled to work Saturday or anyportion thereof as the normal fifth day worked such as (i)an employee whose shift starts Friday and continues intoSaturday, or (ii) an employee who is assigned to work onNo. 1 Shift (midnight) operations regularly scheduled tostart with the No. 1 Shift (midnight) Tuesday; provided,however, that in such a plant, a model change periodspecified in Paragraph 9(a) shall not be applicable at suchplant at the beginning of the following model year.

(c) at any car and truck assembly plant for a period of sixmonths from the time a production shift is added orrestored at such plant.


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11. Concerted Activity (a) Any right to decline daily overtime or Saturday or Sunday

work that this Memorandum of Understanding confers onany employee may be exercised only by each employeeacting separately and individually, without collusion,conspiracy or agreement with, or the influence of, anyother employee or employees or the Union or pursuant toany other concerted action or decision. No employee shallseek by any means to cause or influence any otheremployee to decline to work overtime. Violation by anyemployee of the terms, purpose or intent of this Paragraphshall, in addition to subjecting him to discipline, nullifyfor one month (not including the periods mentioned inParagraph 9, above) his right to decline overtime.

(b) The Company shall have the right to suspend for a periodof two weeks (not including the periods mentioned inParagraph 9, above) as to an affected plant the provisionsof this Memorandum of Understanding that entitleemployees to decline to work daily overtime or Saturdaysor Sundays in each event employees collusively,concertedly or in response to the influence of anyemployee, or group of employees, or the Union (i) fail orrefuse to report for daily overtime work or work onSaturdays or Sundays that they have not declined asherein provided or (ii) decline, as so provided, dailyovertime work or work on Saturday or Sunday. Ifemployees who are scheduled to work daily overtime in aplant or department or on a Saturday or Sunday fail orrefuse to work as scheduled in significantly greaternumbers than the Company’s experience under thisMemorandum of Understanding can reasonably lead it toexpect, such evidence should be carefully considered bythe impartial Umpire in any decision involving thequestion of whether their failing or refusing to work thescheduled hours was collusive, concerted or influencedby other persons. The Union shall have the right tospecially submit to the impartial Umpire pursuant toArticle VII, Section 9 any claim that the Company hasacted wrongly in suspending the provisions of this


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Memorandum of Understanding as to employees or aplant. If the Umpire sustains the Union’s claim, theCompany shall, within 60 days of the date of theUmpire’s award, give each affected employee the right todecline overtime work on as many daily overtime days orSaturdays or Sundays as such right was suspended.

12. Local Option Nothing in this Memorandum of Understanding shall makeineffective any local past practice or agreement concerningvoluntary overtime that is mutually satisfactory to the LocalUnion and the plant Management. Local Unions and plantManagements may (i) continue in effect such practices oragreements as are now in effect, or (ii) comply with the termsof this Memorandum of Understanding, or (iii) agree fromtime to time to suspend the terms of this Memorandum for afixed period of time during which period productionemployees (non-Appendix F) shall be governed solely by theprovisions of Article IV, Section 6, excluding any referencetherein to Appendix H, except for this sub-paragraph.

13. Work Force Supplementation In order to implement this Memorandum of Understanding,the Company may supplement the work force. The followingare illustrative of actions which the Company may take to doso:

(a) Temporary part-time employees may be hired inaccordance with the terms of the Memorandum ofUnderstanding - Temporary Part-Time Employees, butshall not be entitled to Saturday or Sunday premium pay,except as required by law, until they are qualified toperform the work to which they are assigned, or forfifteen (15) working days, whichever is sooner.

(b) Nothing herein shall preclude a plant from expanding itswork force beyond the normal requirements of itsoperations by hiring new employees and adopting aprogram pursuant to which employees of said plant mayhave one (1) or two (2) days off per week (which daysneed not be Saturdays or Sundays); provided, however,that work performed on Saturday or Sunday shall be at


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present premium rates. Plans for such a program shall bediscussed in advance with the National Ford Departmentof the International Union, and any system of rotatingdays off among some or all of the employees shall be bymutual agreement between the Local Union and the plantManagement.

14. Legal Prohibitions The optional overtime provisions in this Memorandum ofUnderstanding shall not apply in any instance in which theywould make it impossible to run an operation without violatinga federal, state or local law or ordinance.

15. SUB Daily overtime hours or Saturday or Sunday work that anemployee declines under the terms of this Memorandum ofUnderstanding shall be deemed “Compensated or AvailableHours” within the meaning of the SupplementalUnemployment Benefit Plan.

16. NoticeWith respect to all voluntary hours provided for in thisMemorandum of Understanding in a given week, the employeemay decline to work such hours if he notifies his supervisor ona form to be provided by the Company before the end of theshift on the preceding Wednesday provided he has beennotified of the overtime schedules for such week not later thanthe preceding day. If the employee is not so notified, he shallgive such notice to his supervisor before the end of the shiftfollowing the day of such notice, provided that if he is not sonotified until the week in which the overtime is scheduled, heshall give such notice by the end of the shift in which hereceives such notice from the Company.

PART B. SKILLED TRADES (APPENDIX F) EMPLOYEES Appendix F (Skilled Trades) employees in any bargaining Unit mayelect, as a group, to have their overtime assignments governed byone of the following four mutually exclusive optional provisions.

1. Continuation of Current Overtime ProvisionsOvertime assignments shall be governed solely by (a) ArticleIV, Section 6, excluding any reference to Appendix H except


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for this paragraph, (b) the Sunday Work Assignment (“13-day”) letter dated October 21, 1967, and (c) existing localagreements and practices governing the administration ofovertime.

2. Overtime Bypass Overtime assignments shall be governed as set forth in the firstoption above, however, employees would be bypassed onweekend overtime under the following conditions:

When less than a full complement is required on a trade towork an overtime period, employees who would normally beassigned to work such overtime may elect to be bypassed ifthey so state at the time they are notified of the overtimeopportunity, provided a sufficient number of employees on thesame trade and shift are available to perform scheduledovertime work.

In the event an insufficient number of employees accept suchovertime assignments, the Company may schedule necessarymanpower by requiring employees on the same trade and shiftto work on the basis of low overtime hours or seniority on thetrade, as agreed upon locally.

The manner in which this option shall be applied in the RougeArea and at the Cleveland Engine and Casting complex is setforth in Exhibits 1 and 2, respectively.

3. Appendix H - Local Negotiations A Local Union may elect to have Appendix F (Skilled Trades)employees in any bargaining Unit as a group covered by theprovisions of Part A hereof provided that prior to itsimplementation but following completion of 1996 localnegotiations, including ratification thereof, the local partiesnegotiate mutually satisfactory arrangements, selected fromamong one or more of those enumerated in (a) through (c)below, to provide the means and method for assuring theavailability of sufficient manpower for the performance of allovertime work normally assigned to skilled trades employeeswhich the Company deems necessary. Such local negotiationsare authorized only on the method and procedure for coveringskilled trades work on overtime, shall not be related to or


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contingent upon resolution of any other issues and are notcovered by the exception to Article V of the CollectiveBargaining Agreement provided for in Paragraph 10 of the1996 Settlement Agreement. Except to the extent permittedunder Alternative (a) below, the local parties may not in anyway modify or agree to arrangements which are inconsistentwith or interfere with the implementation of any of theprovisions of Part A hereof. Local agreements negotiatedpursuant to this option shall be subject to the approval of LaborAffairs and the National Ford Department, and shall not beapproved if they exceed or are in any way inconsistent with theprovisions stated herein.

If this option is selected by the Local Union, overtimeassignments for skilled tradesmen shall continue to begoverned by the provisions of Article IV, Section 6 excludingPart A hereof, the Sunday Work Assignment (“13-day”) letterdated October 21, 1967 and existing local overtime agreementsuntil satisfactory local arrangements are negotiated andapproved and until the beginning of the week next following45 days from the date of such approval.

a. Revised Work Schedules Regular skilled trades employees assigned to five-day

operations may be placed on a schedule pursuant to whichenough employees would be scheduled with one or twodesignated days off other than Saturday or Sunday toassure that such employees could be required to workSaturdays and Sundays as needed. Preference may begranted to employees desiring particular days off duringthe week by mutual agreement on a seniority basis on thesame shift. (Work performed on Saturdays and Sundayson such operations would be at premium rates as providedin Article IX, Section 9 and 10.) The need for continuingsuch schedules will be reviewed semiannually.

b. Journeyman-Apprentice Supplementation-RelatedTrades

A need for supplementation on a particular trade may befilled by assignment of available journeymen and


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apprentices from other related trades, designated locally,at that location within the bargaining Unit.

Journeymen and apprentices supplementing on anothertrade will be regarded as “temporary” employees on thattrade and shall be subject to all local agreements and localwork assignment guidelines applicable to the trade theyare supplementing, for all hours worked thereon. Theyshall be paid the rate of their permanent classification.

c. Temporary-Changeover Pool Local agreements may be negotiated to permit the

establishment of a skilled trades supplementation poolconsisting of temporary changeover employees selectedfrom within the plant to help meet skilled manpowerneeds during overtime periods resulting from skilledtradesmen declining overtime opportunities underAppendix H.

4. Appendix H - October 26, 1973 and Related Letters A Local Union may elect to have Appendix F (Skilled Trades)employees as a group governed on overtime by the provisionsof Appendix H, Part A and by the letter from Mr. Bannon toMr. Denise dated October 26, 1973, acknowledging certainCompany rights that might be invoked if too many skilledtrades employees were to decline optional work assignments.

A request to elect options 2, 3 or 4 set forth above for all skilledtradesmen at any location must be submitted in writing by the LocalUnion to local plant Management no later than 30 days followingthe completion of 1996 local negotiations, including ratificationthereof. Where neither option 2, 3 or 4 is thus invoked, option 1shall be deemed elected. Any such election will be effective for theduration of the 1996 Collective Bargaining Agreement.

The provision of options 2, 3 or 4 set forth above, where adopted,shall supersede any conflicting provisions of local overtimeagreements.


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APPENDIX H

APPENDIX H

EXHIBIT 1

November 29, 1973

Mr. Ken Bannon, Vice President Director - Ford DepartmentInternational Union, UAW 8000 East Jefferson Avenue Detroit, Michigan 48214

Dear Mr. Bannon:

This letter supersedes the letter to you dated November 6concerning supplementation of the skilled trades force in RougeArea locations. It is our understanding that skilled tradesmen ineach of the Rouge Plant-Wide units, as a group, have opted to havetheir overtime arrangements governed by the provisions set forth inAppendix H, Part B, Paragraph 2.

In implementing these arrangements in the Rouge Area, theCompany is willing to work out practical procedures so that skilledtradesmen in the same classification assigned to Department 9961and other plants in the Rouge Area would be afforded anopportunity to work such overtime before requiring skilledtradesmen in the Rouge Area plant in which the overtime need hasarisen to work as provided in Appendix H, Part B, Paragraph 2.

Among the considerations of practicality in connection with suchprocedures are these:

(a) They would be utilized only if there is an insufficient numberof skilled tradesmen from among those who normally wouldbe assigned the overtime.

(b) There would have to be an identified group of qualifiedemployees within the classification known in advance who arewilling to work the required overtime and whose availabilityfor particular overtime needs could be quickly ascertained sothat the Company’s selection could be made in a timelymanner.

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(c) There would be no new or added overtime equalization orrotation obligations with respect to these supplementalovertime assignments. Nothing in these new arrangementswould alter existing Rouge Area overtime equalization orrotation agreements.

(d) Complaints about the operation of the new procedures couldbe taken up with Management, but could not be subject to theGrievance Procedures provided in Article VII of the CollectiveBargaining Agreement.

Procedures necessary to accomplish the basic purpose will bereviewed with representatives of the National Ford Departmentand/or Local 600 as appropriate. Such procedures will be effectivewith the effective date of the application of Appendix H to theskilled Unit involved.

Very truly yours,

MALCOLM L. DENISE Vice President - Labor Relations

APPENDIX H

EXHIBIT 2

November 29, 1973

Mr. Ken Bannon, Vice President Director-Ford Department International Union, UAW 8000 East Jefferson Avenue Detroit, Michigan 48214

Dear Mr. Bannon:

This letter supersedes the letter to you dated November 7concerning supplementation of the skilled trades work forces in theCleveland Engine and Casting complex. It is our understanding thatskilled tradesmen at this location, as a group, have opted to havetheir overtime arrangements governed by the provisions set forth inAppendix H, Part B, Paragraph 2.

In implementing these arrangements the Company is willing towork out practical procedures so that skilled tradesmen in the sameclassification assigned to other plants in the Cleveland Engine andCasting complex would be afforded an opportunity to work suchovertime before requiring skilled tradesmen in the plant in whichthe overtime need has arisen to work as provided in Appendix H,Part B, Paragraph 2.

Among the considerations of practicality in connection with suchprocedures are these:

(a) They would be utilized only if there is an insufficient numberof skilled tradesmen from among those who normally wouldbe assigned the overtime.

(b) There would have to be an identified group of qualifiedemployees within the classification known in advance who arewilling to work the required overtime and whose availabilityfor particular overtime needs could be quickly ascertained sothat the Company’s selection could be made in a timelymanner.


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(c) There would be no new or added overtime equalization orrotation obligations with respect to these supplementalovertime assignments. Nothing in these new arrangementswould alter existing overtime equalization or rotationagreements.

(d) Complaints about the operation of the new procedures couldbe taken up with Management but could not be subject to theGrievance Procedures provided in Article VII of the CollectiveBargaining Agreement.

Procedures necessary to accomplish the basic purpose will bereviewed with representatives of the National Ford Departmentand/or Local 1250 as appropriate. Such procedures will be effectivewith the effective date of the application of Appendix H to theskilled tradesmen at the Cleveland Engine and Casting Plants.

Very truly yours,

MALCOLM L. DENISE Vice President - Labor Relations


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APPENDIX J

MEMORANDUM OF UNDERSTANDINGCONTINUOUS IMPROVEMENT FORUM

The Company and the Union recognize the interdependentrelationship of quality, operating efficiency, employeeempowerment, and job security. Furthermore, the concepts ofemployee empowerment, work groups and teams and “continuousimprovement” are supported fully by the leadership of the UAWNational Ford Department and the Company. For Ford to remain aviable competitor and provide the opportunity for employee jobsecurity, every location must improve continuously to enable theCompany to achieve its objective of being the “One Manufacturing– Best in World”. Each location must strive to meet and beat thecompetition. The support of and dedication to the work force areessential. Accordingly, the parties pledge to work together oncontinuous improvement initiatives at every organizational level toimprove quality, operating efficiency including plant costperformance, work relationships, work group/team effectiveness,job security, and quality of work life.

During these negotiations, the parties agreed this Memorandum isan on-going agreement, “living document”, permitting the parties topositively evolve and work towards continuous improvementoutside the normal collective bargaining process. As such, thenational parties are empowered to review this Memorandum ofUnderstanding to identify improvement opportunities andmake adjustments to the provisions during the term of thisagreement. The National Continuous Improvement Forum willcommunicate any such changes to the Local ContinuousImprovement Forum.To implement these goals and objectives, Ford and the UAW agreethat the following committee structures will be the focus ofcooperative efforts toward our common goal to improve theeffectiveness of our operations, drive standardization and removebarriers to improvement and teamwork, increase job opportunitiesand fully utilize the work force.

APPENDIX J MEMORANDUM OF UNDERSTANDINGCONTINUOUS IMPROVEMENT FORUM

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A. Senior Advisory Continuous Improvement ForumTo provide an operational focus on continuous improvement, aSenior Advisory Forum is established comprised of seniorCompany Manufacturing Operating Management, seniormembers of the Labor Affairs Office and senior leadership ofthe UAW National Ford Department.

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

• giving direction to the National and OperationsContinuous Improvement Forums;

• inspiring a strong bond among all levels of theorganization to empower employees to meet theCompany’s competitive challenges;

• energizing the entire organization to move towardachieving stated objectives and driving standardizationwith steadfast determination;

• providing direction for work group/team implementationand the Continuous Improvement Charter. TheContinuous Improvement Charter, as mutually agreedupon, will contain operational standards and processesrequired for work group/team implementation; such asbut not limited to:

• Work group/team structure,• Team implementation flow chart, • Team leader roles and responsibilities, • Team leader (de-)/selection process, • Team related training, • Use of Visual Job Plan (VJP),• Team related wage material,• Charter change management process;The Continuous Improvement Charter will be maintainedby the National Continuous Improvement Forum (NCIF)and will be provided to the Local Continuous ImprovementForum (LCIF), including the Employee ResourceCoordinator (ERC);

APPENDIX J MEMORANDUM OF UNDERSTANDING CONTINUOUS IMPROVEMENT FORUM

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• helping open communication channels to shareinformation;

• discussing the Company’s general operations, businessdevelopments and savings opportunities at each location;

• strongly encouraging the local parties to work together toimplement continuous improvement initiatives, includingthe delivery of plant total cost objectives;

• jointly providing recognition of local continuousimprovement successes (e.g., joint recognition letters,joint plant visits, and related activities); discussing theimportance 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) toreview continuous improvement progress including localimprovement plans, and to discuss new continuousimprovement initiatives that may have an impact on asignificant number of hourly employees.

B. National Continuous Improvement ForumTo provide a working level focus on continuous improvement,a National Continuous Improvement Forum is established tofocus on continuous improvement efforts under the provisionsof this Appendix, including Exhibit 1 and Exhibit 2, andAppendix M. This forum will consist of members from theCompany designated by the Company’s Vice President –Labor Affairs, and from the Union designated by the VicePresident and Director of the UAW- Ford Department.

The role of the National Continuous Improvement Forum is to:

• report progress to the Senior Advisory ContinuousImprovement Forum, share successes and discuss areasrequiring reinforcement;

• support and encourage the local parties to makeimprovements on a continuous basis;


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• encourage and support the concept of team work as afundamental principle of doing business;

• oversee the implementation of work groups/teams andgovern the Joint Continuous Improvement Charter;

• encourage the progression of work groups/teams; insupport of this, the parties will develop an assessmenttool that incorporates employee feedback on thehealth and maturity of the work groups/teams thatcan be utilized on an as needed basis; results of theassessment will be shared with the NationalContinuous Improvement Forum, the Plant Manager,Human Resource Manager, and Chairperson;

• serve as a depository for collecting “success stories” andinformation and disseminating them to locations that needexamples of how problems have been resolvedsuccessfully;

• visit locations upon request and offer on-site assistanceby meeting jointly with local committees, in conjunctionwith the UAW National Ford Department ServicingRepresentatives and Plant Operations Managers orequivalent, to discuss the importance of job preservationand job creation and the reasons for the commitment toincrease operational efficiency, suggest possible topicsfor consideration, and encourage good-faith efforts todevelop and implement meaningful local change;

• provide coaching, mentoring and support to local forumsas appropriate;

• encourage local efforts to benchmark operations andpractices of key “best-in-class” competitors and pursuemutually acceptable methods of closing the competitivegap;

• schedule periodic meetings between members of theUAW-Ford Department and the senior operatingmanagement of Ford Motor Company to provide greaterinformation sharing and discussion with members ofManagement involved in important Company decisions;


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• monitor and provide support as required forimplementation of competitive local operatingagreements; and

• train the local parties on the aspects of this agreementprovision.

C. Operations Continuous Improvement ForumTo further continuous improvement efforts at all levels of boththe Union and Company organizations, the parties have agreedto implement Operations Continuous Improvement Forums.The Operations Continuous Improvement Forums will includekey representatives of Manufacturing Operating Managementand Human Resources, designated by the Company’s VicePresident of Manufacturing, and Union representativesdesignated 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 andreview operation-wide matters and should function inalignment with the local, senior and national forums.

The role of the Operations Continuous Improvement Forum isto:

• report progress to the National Continuous ImprovementForum, share successes and discuss areas requiringreinforcement;

• strongly encourage the local parties to work together toimplement continuous improvement initiatives includingthe delivery of plant total cost objectives;

• provide support, direction and encouragement for thelocal parties to make improvements on a continuousbasis;

• encourage and support the concept of team work,including work group/team standardization, as afundamental principle of doing business;

• drive implementation of work groups/teams and theContinuous Improvement Charter;

• maintain liaison with local forums and assist andencourage them as appropriate;


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• encourage local efforts to benchmark operations andpractices of key “best-in-class” competitors and pursuemutually acceptable methods of closing the competitivegap;

• discuss and review progress on implementing competitivelocal operating agreements from the local level; and

• review continuous improvement progress, including localimprovement plans, and discuss new continuousimprovement initiatives that may have an impact onhourly employees.

D. Local Continuous Improvement ForumAt the local level, the joint forum will meet at least monthlyand as often as necessary throughout implementation of thework groups/teams. Forum members will consist of equalCompany and Union members, including the Plant Managerand other members of the Management operating committeeselected by the Company, the Unit Chairperson, the LocalUnion President, if he/she so elects, and the Unit BargainingCommittee.

The Local Continuous Improvement Forums will reviewoperational efficiency, consistent with this Appendix,including Exhibit 1 and Exhibit 2, and jointly develop andintroduce continuous improvement initiatives. Elements inlocal continuous improvement initiatives can include:

• identification of investments in plant improvements orequipment needed to improve product quality oroperational effectiveness;

• implementation of work groups/teams throughout thefacility following the standards contained within theContinuous Improvement Charter that support teamworkand result in operational efficiencies;

• discuss the quality of the plant’s products and othergeneral indicators of performance as well as UAWQuality Representative issues of concern;

• review opportunities for Local Continuous ImprovementForum team building, which would energize, sustain and


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support ongoing Continuous Improvement efforts,provide for further skill development and enhance theworking relationship;

• identification of total cost saving initiatives andefficiencies;

• discuss and review progress on implementing competitivelocal operating agreements ;

• exploration of new forms of work organization thatsupport and can be integrated into manufacturingsystems;

• monitor and communicate ongoing work group/teamstaffing, and associated managerial supportrequirements; concerns may be elevated to theNational Continuous Improvement Forum for reviewand resolution;

• local initiatives to promote employee attendance;

• procedures for improved access by the Local ContinuousImprovement Forum to product plans and otherinformation affecting employment security andoperational effectiveness, assuring confidential treatmentof such information;

• procedures and plans to review past outsourcing andoutside contracting decisions, and identify opportunitiesfor insourcing and new business;

• exploration of initiatives to pursue job preservation andjob creation;

• implementation of work team concepts that fully utilizeall employees;

• the examination of alternative work schedules whichprovide greater employment opportunities;

• discussion of the use of non-Company employees whowould be contracted to provide development, training,and/or implementation toward continuous improvementwhich will be subject to prior approval of the NationalContinuous Improvement Forum;


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• understand the competitive gap to “best-in-class”competitors and pursue mutually acceptable methods ofclosing the gap;

• provide a forum for discussion on the viability of theoperations and means to implement necessary changes toallow Ford North America to create a competitiveplatform to be considered for future business versus theglobal alternatives;

• address other matters that enhance continuousimprovement initiatives that the local parties agree areappropriate for discussion.

Efforts of the local parties to improve operationaleffectiveness may require change or waiver of certainagreements or practices. It is understood that any suchchanges or waivers would not be effective unless agreedto by the local parties involved and approved in writingby the Labor Affairs Office of the Company and theNational Ford Department of the Union. Such changeswould be effective only at the location(s) specificallydesignated.

E. Principles/Process for Effecting ChangeThe parties agree that there are principles for effecting changeto provide standardization across operations, withoutrestricting local Management and the Union from designingalternative solutions for the location’s competitive challenges,with endorsement from the National Continuous ImprovementForum.

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 itsstrength are its employees, who must be trained, trusted, reliedupon, and given an ever-increasing role in making decisions tomeet the Company’s and Union’s goals and objectives as partof a standardized work group/team structure.

• The work force’s sentiments and beliefs are vitally importantand should be secured and understood. Employees’ trust and


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support can be gained by involving them in defining,participating in, and influencing decisions for theimplementation of the assignment for which they areresponsible. The way employees feel about management andeach other, the things they focus attention on, their decision-making methods, and the expectations they establish forthemselves 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 ateach facility share data relative to how the facility contributesto the Company’s overall success. These data should identifypositive and negative aspects of each location’s performance,and should be shared on a regular basis.

• Sharing data between the parties, open communications, andsensitivity to the concerns of each other are critical to buildingand maintaining trust. The local parties should collectivelywork to gain the work force’s commitment to higherinvolvement and excellence.

• The Plant Manager and Plant Controller will share with theUnion Chairperson the total budget task that the plant is beingassigned.

• As each plant determines how to manage its task, plans will beshared with the Plant Chairperson. The Union’s input will beinvited, especially as to additional or alternative ways the taskcan be met.

• Workgroups will be encouraged to identify total cost savingsand waste elimination ideas that may contribute to the plant’stask achievement.

Identification of IssuesWhen requesting changes in existing agreements and practices, theproblem, process, or system needing improvement should be clearlyidentified and its adverse impact on quality, customer satisfaction,job security, total cost or future business decisions should be


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understood. Data specific to the issue(s) being addressed should beshared and, if possible, the potential improvement quantified.

Guidelines• Having the work force participate in continuous improvement

using teamwork is a fundamental principle for improving theentire operation and achieving the objectives of the business.Management and local Union leadership should activelysupport the principles of employees working together, as wellas being involved in identifying concerns and their resolutions.To this end, the local parties will commit to afford theopportunity for employees to participate and share their ideasin the plant’s continuous improvement process.

• The structure and support of continuous improvementinitiatives (e.g., forums) may vary by location and will bediscussed on a regular basis by the local parties in the LocalContinuous Improvement Forum or in other meetings asappropriate.

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

• There should not be any intra- nor inter-plant competition forprogress, but all locations should strive to improve theiroperation using appropriate benchmarking in order todetermine opportunities for ongoing improvements.Resolutions of concerns addressed should be subject to changeas business conditions change.

• Local management and Union leadership must be involvedpersonally and committed to bringing any agreed upon changeto 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 priordiscussions between the local parties. The Company willensure that necessary training, such as group problem solving,facilitation and instructional skills, effective listening and


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feedback, assertive communication, interpersonal skills,managing conflict, and diversity is provided on a timely basisto hourly employees, including team leaders, group members,Union and management leadership and others involved in theparticipative process. The local parties should jointly selecttrainers or consultants based upon their proven track record.These trainers or consultants could prove to be a valuable assetin starting the improvement process. Any non-Companyemployees who will be contracted to provide training will besubject to prior approval of the National ContinuousImprovement Forum. The approval will be based on thecontractor’s credentials and proven track record.

• Because of the changing work force, the traditional role of thesupervisor 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 isimportant. All levels (supervisors, superintendents, areamanagers, union leadership and employees) need to participatein training and retraining to implement the “new ways” ofoperating.

• If required, training should be provided for newly appointedsupervisors, union leadership and managers to ensure thatprogress is not affected by leadership changes.

• Utilize the skills, talents, and abilities of the skilled work forceas an integral part of the production process. As such, they area valuable resource to the continuous improvement workgroups. Further training to enhance the abilities of the skilledwork force will enable those employees to make an evengreater contribution to these efforts.

APPENDIX J EXHIBIT 1

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APPENDIX J

EXHIBIT 1

Mr. Jimmy SettlesVice President and Director UAW-Ford Department 8000 East Jefferson Avenue Detroit, Michigan 48214

Dear Mr. Settles:Subject: Skilled Trades Operational Effectiveness

During these negotiations, the parties discussed the nature of theautomotive industry and the need to continuously evaluatecompetitive gaps and make appropriate adjustments to achievesustainable competitive advantages. The parties agree that a processmust be established to facilitate a more efficient use of skilled tradesif the Company is to provide the long-term job and income securitythat all our employees value.

This letter serves to acknowledge that the parties are aligned andcommitted to fully utilize the skills, talents, and abilities of theskilled work force. The parties recognize that effective teams mustbe empowered, supported and coached toward delivering thebusiness metrics for which they are accountable, with particularfocus on improving safety, quality, productivity and cost reduction.

It is envisioned that the role of the skilled trades employees willgrow as new technologies evolve and the Maintenance OperatingSystem matures within our manufacturing and assemblyprocesses.

It is also recognized that a fully participative skilled tradesworkforce within the manufacturing process is a critical componentof operational effectiveness. As such, we need to improve themanner in which we use the varied skills and talents of our skilledtrades workforce. Skilled trades expertise and versatility should beleveraged to improve competitiveness by focusing on theelimination of waste, which includes, but is not limited to:

• Reducing equipment downtime• Improving production yields• Eliminating process defects• Reducing set-up and adjustment time• Eliminating unnecessary costs• Driving standardization

Further, the parties agree that all skilled trades associated withinMaintenance Work Teams (MWT)/Manufacturing WorkGroups (MWG) will work to their full capabilities to increaseequipment uptime. Maintenance Work Teams will operateconsistently with the principles outlined in the letter titled“Maintenance Work Teams”. Team Leaders will work withmanagement to coordinate/allocate work assignments.Consistent with the principles of continuous improvement, theparties also reinforced that the purpose of implementingMaintenance Work Teams is to optimize manufacturing efficiencyand not to result in immediate, non- attrition related, reductions inthe skilled trades work force. If either party believes theimplementation of these actions are inconsistent with the intent ofthis provision the matter may be taken to the National Joint SkilledTrades Governance Team for resolution. In areas where MWT’s/MWG’s have not been implemented,the parties remain committed to fully utilizing the skills, talents,and abilities of the skilled trades workforce through continueduse of work practices identified in Exhibit 2 of the SkilledTrades Supplemental Agreement.Additionally, the National Parties agree to encourage the localparties, including the plant chairperson and skilled tradesrepresentative, where appropriate, to explore other areas that willimprove operating efficiencies and continuous improvementinitiatives. Elements to consider locally would include:

• Implementation of Maintenance Work Teams with theobjective of accomplishing assignments made by the TeamLeader up to the teams’ level of capability.

• Identification of additional training, including on-the-jobtraining, as required for the introduction of new technologiesor the need for upgraded skills. Further training to enhance the


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abilities of the skilled trades work force will enable thoseemployees to make an even greater contribution to theseefforts.

• When considering training that is intended to upgrade theskills of the basic trades, local parties may submit fundingproposals to the National Joint Skilled Trades GovernanceTeam to underwrite a variety of costs associated withimplementing these team concepts, including course materials,instructor fees, train-the- trainer sessions, and in someinstances, payment of wages for trainees or their replacements.Such funding proposals are subject to the approval of theUAW-Ford Education, Development and Training ProgramJoint Governing Body.

Minor maintenance actions will be performed by productionemployees to improve overall equipment effectiveness. Productionemployees currently performing minor maintenance tasks willcontinue to perform those tasks. Production employees will beassigned minor or preventive maintenance tasks as identified onthe visual job plan. Visual job plans will be jointly approved bythe local parties. If required, the national parties will reviewany discrepancies and provide guidance to the local parties onresolution. These actions include, but are not limited to:• Maintain proper fluid and lubrication levels in the operator’s

immediate work station machinery.

• Clearing of loose debris within fixtures and equipment (e.g.,weld slag, machine chips).

• Inspection and tightening of loose, non-critical componentsnot directly related to locating pins, blocks, and shims.

• Inspection and tightening of loose, leaking coolant, air, anddispensed product fittings.

The parties acknowledge that adoption of these concepts wouldresult in greater job security for the basic skilled trades workforceand increase the potential for growth as the Company becomesbetter positioned to meet future competitive challenges.

These efforts may require change or waiver of certain agreementsor practices. The local parties will meet regularly to review,


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discuss and proactively address concerns. In such cases,proposed changes to agreements or practices must becommunicated to and approved by the National Joint Skilled TradesGovernance Team.

Very truly yours,

Stacey Allerton,DirectorU.S. Labor Affairs

Concur: _______________ Jimmy Settles


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APPENDIX J

EXHIBIT 2

November 5, 2015Mr. Jimmy SettlesVice President and Director UAW, National Ford Department 8000 East Jefferson Avenue Detroit, Michigan 48214

Dear Mr. Settles:

Subject: Work Groups/Teams

During the 2015 negotiations the Union and Company hadextensive discussions regarding the need to partner to deliverengaged and aligned work groups/teams to a consistent standard, inall divisions (Vehicle Operations Assembly and Stamping, andPowertrain), supporting the global manufacturing strategy.The parties recognize the contributions of our hourly workforce anda vision for fully integrated, motivated teams who work together todrive operational excellence and continuous improvement insupport of “One Manufacturing – Best in the World”. All workgroups/teams will maintain and improve the business against keyobjectives, within their span of control, and with the appropriatestructure to support them.The mapping process outlined in the Continuous Improvementcharter is utilized to identify work group/team size using factorssuch as manufacturing processes, geography, complexity, andplant uniqueness. The NCIF will continue to monitor theaverage work group/team size to ensure work group/teamsremain manageable. While individual work group/team sizewill vary, the mapping process and operating conditions haveyielded an average work group/team member to team leaderratio of 10 to one in vehicle operations assembly departments(excluding support departments such as MP&L, Pre-Delivery,etc.). Local concerns regarding work group/team size may beelevated to the National Continuous Improvement Forum forresolution.


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The team leader role is critical to each work group/team. 1A single,trained team leader whose primary function is to perform thestandard roles and responsibilities contained in the ContinuousImprovement charter will lead the team and continuallyimprove the business. This team leader classification has anestablished wage rate of “$1.50 above” as outlined in theContinuous Improvement charter. They will be selected for thisposition through a jointly established process. Upon localagreement, the joint parties may submit a request to deviatefrom the selection process to the NCIF for review and approval.As necessary, the local parties shall establish a process toidentify an alternate Team Leader using work group/teamversatility.To provide team leaders an opportunity to meet, discuss issues,review solutions, and share processes to improve the business,the parties agree to establish regular team leader meetingforums. Team Leaders must submit meeting requests andagendas to the Local Continuous Improvement Forum forreview and approval.For more automated areas, the parties agreed to the implementationof effective Manufacturing Work Groups (MWGs) comprised ofproduction and skilled trade employees working together tosupport improving flow in production systems. The partiesagree the MWG work group/team will function as follows:• Skilled trade team members will utilize their skills, talents

and abilities to be an integral part and valuable resource tothe work group,

• Skilled trade team members will work to their fullcapabilities to increase equipment uptime as outlined inAppendix J, Exhibit 1 Skilled Trades OperationalEffectiveness,

• The team leader position for certain MWG teams may berequired to periodically backfill production operators aspart of their standardized roles and responsibilities (e.g.press room, cam cap assembly in head machining, etc.).Where this is applicable, skilled trade team members willnot be eligible to apply for the team leader position.


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Further, skilled MWG team leaders will not be used forproduction absentee coverage,

• The Company will not assign skilled trade team members toproduction work, excluding equipment validation,troubleshooting and tryout,

• Production team members will have upgraded skills.Operators will perform minor or preventativemaintenance tasks as outlined in Appendix J, Exhibit 1Skilled Trades Operational Effectiveness.

To ensure the success of manufacturing work groups, a strongcommitment to training is required by the employee, the Union, andthe Company. Training will be delivered in an efficient and costeffective manner utilizing on-the-job, web-based, and/orclassroom training. Local training options include workingwith a participating college that may result in accreditation,utilizing UAW-Ford resources to train internally, or otheroptions approved by the National Continuous ImprovementForum.The Manufacturing Work Group training program may includeelements such as work group effectiveness, improving businessresults, technical skills including equipment operation and othersubjects deemed necessary. This classroom training will provideproduction team members with upgraded skills to identifyissues and abnormalities. The MWG training is not an attemptto train production employees to replace skilled tradesemployees. Training required to support manufacturing workgroups will be monitored by the NCIF.Production employees assigned to an MWG must reach specificmilestones and complete the joint training program in order toreceive the incremental wage rate. With the exception ofpromotional opportunities, production employees will beexpected to remain in the workgroup for a minimum of 12months after MWG training completion, not to exceed a total of15 months.All plants will adopt the work group/team standard as expeditiouslyas possible. Plants receiving new investment will have a naturalopportunity to lead the way.

APPENDIX J (MEMORANDUM OF UNDERSTANDING— CONTINUOUS IMPROVEMENT FORUM)

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The local parties may need to adjust local agreements in support ofwork group/team implementation with approval by National FordDepartment and Labor Affairs. This approach will encompass allelements of Exhibit 1 contained within this Appendix. The NationalContinuous Improvement Forum will oversee the implementationof work groups/teams and standards governed by the JointContinuous Improvement Charter.

Efficiencies achieved as a direct result of implementation of theteams will not result in an indefinite layoff of work group/teammembers. Any reduction within the work group/team would be dueto other efficiencies, volume-related actions or attrition. Recognizing the business value of the team leader role, it is notthe Company’s intention to use annual productivity efforts totarget team leader reductions; however, team leader reductionsmay be necessary based on other business conditions. The localparties will review these reductions in advance. Remainingdisputes may be escalated to the NCIF for review andresolution.This partnership and employee commitment to personaldevelopment and continuous improvement will improve employeeengagement, competitive work practices and long-term job security.

Very truly yours,

John Fleming,Executive Vice PresidentGlobal Manufacturing andLabor Affairs

Concur: _______________ Jimmy Settles

APPENDIX J (MEMORANDUM OF UNDERSTANDING— CONTINUOUS IMPROVEMENT FORUM)

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APPENDIX J

EXHIBIT 2

ATTACHMENT A

UAW-FORD

NATIONAL CONTINUOUSIMPROVEMENT CHARTER

WORK GROUPS/TEAMS

This is a living document that may only be changed under theguidance and direction of the National Continuous ImprovementForum. The national parties are empowered to identifyimprovement opportunities and make adjustments to theseprovisions outside the normal collective bargaining process.

APPENDIX J (EXHIBIT 2 ATTACHMENT A NATIONALCONTINUOUS IMPROVEMENT CHARTER)

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UAW-FORD NATIONAL CONTINUOUS IMPROVEMENT CHARTER

WORK GROUPS/TEAMS

MISSION:

The joint parties are committed to implementing workgroups/teams to a consistent standard supporting the globalmanufacturing strategy as defined in Appendix J. Our beliefsand behaviors must honor standardization and continuousimprovement to enable our work groups/teams to deliver "OneManufacturing – Best in the World".

GUIDING PRINCIPLE:

The parties pledge to work together on continuous improvementinitiatives at every organizational level to improve quality,operating efficiency including plant cost performance, workrelationships, work group/team effectiveness, job security, andquality of work life.

CONTENTS:

- Aligned & Capable Organization - Work Group/TeamStructure

- Work Group/Team Implementation Flow Chart- Standard Team Leader Roles & Responsibilities- A standardized Team Leader selection / de-selection process - Team Related Training- Visual Job Plan (VJP)- Team Related Wage Material- Charter Change Management Process


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UAW-FORD NATIONAL CONTINUOUSIMPROVEMENT CHARTER:

WORK GROUP/TEAM STRUCTURE

PURPOSE:

Aligned & capable work group/team structure enabling self-managed work groups/teams, to improve the business againstkey objectives within their span of control.


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MAINTENANCE WORK TEAMS

The Mechanical Work Team (MWT) was revised to MaintenanceWork Team (MWT) with the addition of Electricians as part ofthe team structure.

In addition, other apprenticeable Mechanical Tradeclassifications (W, SM, T&D) may be included based on areaneeds and with National Joint Skilled Trades Governanceapproval.


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TEAM LEADER IMPLEMENTATION FLOW CHART


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UAW-FORD NATIONAL CONTINUOUS IMPROVEMENT CHARTER:

TEAM LEADER ROLES & RESPONSIBILITIES

ALIGNED ROLES AND RESPONSIBILITIES ANDPRIMARY TASKS OF A TEAM LEADER

Primary tasks may be broken down into secondary tasks forfurther definition of roles and responsibilities. Examples maybe provided upon request of the Joint Parties.


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TEAM LEADER (DE-)/SELECTION PROCESS

PURPOSE:

The purpose of the Team Leader selection/de-selection processis to reliably select qualified Team Leaders willing and able tofulfill the specific Team Leader roles and responsibilities byutilizing a standardized process.The joint parties agree that this standardized Team Leaderselection / de-selection process can:• Increase productivity of team leaders by selecting those

most committed to the work group/team model• Support work group/team effectiveness• Foster better teamwork between production and skilled trades• Increase morale of all employees through better

involvement in the business• Ensure Ford Motor Company's ongoing competitiveness

versus the competitionACTIVE MEMBERS:

The active members in the selection and de-selection of TeamLeaders are the Team Manager and the designated UAWRepresentative. The Local Continuous Improvement Forum(LCIF) will have responsibility for process oversight. Team Leader Selection Process:The selection process was developed to ensure:• A common process is used to interview and evaluate all

candidates• Evaluation criteria are consistent and based on skills and

competencies that would be required on the position• Team Leaders selected for the position will have the

opportunity to grow their skills and contribute positively tothe business

Upon local agreement, the joint parties may submit a request todeviate from the selection process to the NCIF for review andapproval.


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TEAM LEADER SELECTION PROCESS

New Team Leader process:• Plants will use their local posting procedure and include

the standard Team Leader roles and responsibilitiesdocument, plus a listing of specific job requirements

• Candidates will be selected from within the workgroupwhere the opening exists (if an acceptable candidate is notfound within the work group, the scope can be expanded toinclude additional areas)

• Equipment complexity will determine the level of technicalskills required, and whether a Production or Tradespersonwill fill the position.

• Initial screening will be based on the following criteria*:• Disciplinary record – No active discipline on record• Attendance record – No active attendance discipline

on record• Willingness to remain in the Team Leader position

and workgroup for a minimum of 12 months• All qualified candidates who have met the objective

criteria above, will be granted an interview• A formal interview conducted by a joint Union /

Management team


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• Candidates will be scored using a standard set of questions(a total of 100 points possible):1) Experience and versatility (25 points)2) SQDCPME knowledge and work habits (40 points)3) People and leadership skills (35 points)4) Bonus Attendance Points (2 points maximum)

Based on the scoring of the questions above, candidatesreceiving a threshold score of 70% will be considered qualifiedand capable of fulfilling the standardized Team Leader rolesand responsibilities. Team Leaders will be selected from thequalified candidate list.Once selected, the Team Leader will sign off on the Joint TeamLeader Verification acknowledging they understand thestandardized roles and responsibilities and attend the requiredtraining program for the New Team Leaders. * The Joint Leadership team of the Local Continuous Improvement

Forum (LCIF) will be responsible for monitoring objective criteriacontained within the initial screening.


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EXISTING TEAM LEADER VERIFICATION PROCESS

Existing Team Leaders:During the transition from current state to future WorkGroup/Team state, there will be a joint review of positionexpectations with Existing Team Leaders. The review willconsist of the position expectations and standardized roles andresponsibilities in the new Workgroups/Teams. It is importantto ensure Team Leaders understand the requirements of theposition and complete the tasks as required to the standard.Additionally, a joint verification of capabilities and the trainingnecessary to carry out his or her job effectively will beidentified. If an existing team leader decides they do not want to remain aTeam Leader, they can choose to “Opt out” and be placed in adifferent position following the Local Placement Guidelines. Ifthey want to continue as a Team Leader, then a “Joint TeamLeader Verification” is completed, a skill gap assessed and theTeam Leader signs-off on the standardized roles andresponsibilities.


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TEAM LEADER DE-SELECTION PROCESS

Team Leader De-Selection ProcessThe objective of the Team Leader de-selection process is toprovide a consistent and uniform process for the local UAW /Management team to identify and correct valid concerns. Theprocess is designed to provide opportunities for coaching andperformance improvement, and to provide Team Leaderprocess stability.There are four possible ways in which a Team Leader can be de-selected. Concerns regarding Team Leaders will be jointlyinvestigated by the Team Manager and district or other unionrepresentative with the Team Leader prior to removing theLeader from their position.

1) The Leader asks to be removed. (It is understood thatthe Leader concerns should be discussed and resolvedduring the ongoing development process and that thisformal request represents a last opportunity to keep avalued Leader on the job)

a) Determine reasons for the Leader's request forremoval, and as appropriate, plan and adjust thedevelopment process and/or the system to provideneeded and expected support for the leader

• If the Leader is satisfied with the adjustmentplan, review progress during the nextscheduled development meeting

• If not, (and Leader has fulfilled their 12-month commitment) the Leader will beremoved/disqualified per Local process*

*In the event all parties agree that the Leaderposition is not working for the employee, the Leadercan be disqualified during the 12-month window


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2) The Leader has exceeded the minimum attendance ordisciplinary criteria. In this situation, the leader willbe disqualified. Disagreements regardingdisqualification can be escalated to the Joint NationalParties for review and/or resolution.

3) The Leader is not fulfilling the Leader roles andresponsibilities, and not making reasonable progresswith their development plans.

a) Provide the Leader an opportunity to discussreasons for failing to fulfill the specific roles andresponsibilities

b) As needed, investigate potential shortfalls in theorganization's support of the Leader

c) If the system support is adequate, the employee isdirected to present a corrective action plan(within three days), and is provided 30 days toimplement their plan

d) Notify the employee that failure to implement thecorrective actions, within the 30 day timeframe,will result in disqualification

4) The Work Group members have submitted a "petitionfor leader development" (Cannot be initiated withinthe first six months).

a) Review the work group members' petitionprocess and the work group's specific concernswith the Leader

b) Follow steps (a through c) outlined in item #3above

c) After the 30 day implementation period, resurveywork group members to verify corrective actionshave been implemented

d) If the work group is still dissatisfied, the Leaderwill be removed*

e) Repeated petitions for the same concerns may because for immediate removal

*The Joint Leadership team of the Local Continuous ImprovementForum (LCIF) will be responsible for the oversight of this process.


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TEAM RELATED TRAINING

PURPOSE:

Proactive Training which provides knowledge on manufacturingand skills development, enabling teams to deliver safety, qualityand delivery metrics at world-class levels.MWG Training To ensure the success of manufacturing work groups, a strongcommitment to training is required by the employee, the Union,and the Company. Training will be delivered in an efficient andcost effective manner utilizing on-the-job, web-based, and/orclassroom training. Local training options include working witha participating college that may result in accreditation, utilizingUAW-Ford resources to train internally, or other optionsapproved by the National Continuous Improvement Forum.The Manufacturing Work Group training program may includeelements such as work group effectiveness, improving businessresults, technical skills including equipment operation and othersubjects deemed necessary. This classroom training will provideproduction team members with upgraded skills to identify issuesand abnormalities. The MWG training is not an attempt to trainproduction employees to replace skilled trades employees.Training required to support manufacturing work groups will bemonitored by the NCIF.

• Module 1 - Introduction to MWG Training• Module 2 - Safety Fundamentals• Module 3 – Measurement• Module 4 – Fasteners• Module 5 - Balancer/Hoist Safety• Module 6 - Visual Job Plans• Module 7 - Mechanical Safety


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• Module 8 - Lubrication Systems• Module 9 - Mechanical Principles• Module 10 - Electrical Safety• Module 11 - Electrical Principles• Module 12 - Electrical Systems and Components• Module 13 - Hydraulic and Pneumatic Principles• Module 14 – Fluids• Module 15 - Accessories


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MWG TRAINING

Fundamentals:Introduction to MWG Training #1 Estimated Contact Hours: 1

Module 1 of Fundamentals, Introduction to MWG Training, startsthe sequence of MWG Training. Included in this module are a:

• Brief description of class logistics• Participant Introduction• Brief discussion on perspectives• Management and UAW Support • An overview of the program• Purpose of the program including: o Improvement of base line knowledge o Improve communications o Additional skills and capability• Goals o Production engaged in minor maintenance

activities o Communication with skilled trades o Continue to develop skills and capability• A discussion of the Module structure

Fundamentals:Safety Fundamentals #2 Estimated Contact Hours: 7

Module 2 of Fundamentals, Safety Fundamentals, is areinforcement of various areas of safety. The intent is to remindthe participants that while they are preforming the newautonomous and minor maintenance tasks, they are to exercise theexpected safety precautions, wear the proper protection, andidentify safety issues for corrective maintenance if they are unableor do not possess the skills and capability to correct the issue.At the conclusion of this overview, participants are reminded ofvarious safety precautions and actions and understand that they


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must follow government, corporate and facility safety rules whileperforming autonomous and minor maintenance activitiesFundamentals:Measurement #3 Estimated Contact Hours: 5

Module 3 of Fundamentals, Measurement, is a review, and inother cases a deep dive into measurement. Participants come to the program with varying degrees of insightinto measurement and how to read the related measuring devicesfound in the manufacturing environment. During this module,they learn to recognize measurement systems (English andMetric) and how to identify and properly write values as it relatesto production and maintenance activities. Participants aretaught how to accurately communicate values to interestedparties including Skilled Employees, Process Coaches, andEngineers.At the conclusion of this module, participants understand howto read and communicate the readings from a scale, productiongauges, calipers and micrometers, in English and Metric. Theydemonstrate how to correctly convert measurements from onesystem to another, and interpret measurement to confirm orcorrect quality concerns or communicate to others in Metricand English. Fundamentals:Fasteners #4 Estimated Contact Hours: 4

Module 4 of Fundamentals, Fasteners, is a module that describesthe different types of fasteners, their characteristics, how todefine their size, recognize, inspect, and safely tighten fasteners. The intent of this module is to define fasteners use/applicationacross production and maintenance. At the conclusion of thismodule, participants understand:• Basics about bolt measurement, strength, torque, finish,

tensile strength, thread pitch, classification. • Metric, English, and Acme Threads• Types of bolts, screws, nuts, washers, set screws, and keys.• How to use a thread gauge


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• The function and how to use a Torque Wrench• Adhesives and SealantsFundamentals:Balancer/Hoist Safety #5 Estimated Contact Hours: 4

Module 5 of Fundamentals, Balancer/Hoist Safety, is a modulethat was totally re-written and concentrates on identification ofsafety related opportunities for balancers and lift equipment. The intent of this module is to increase awareness of balancerand lift equipment, the essentials of safety, and what to look forwhile inspecting and operating these pieces of equipment forproduction/engineered lifts. It also addresses that “free-lifts”should be handled by a skilled employee. The module starts with Balancers and what types of failures areassociated with this equipment. Participants are instructedwhat to look for in Lift Equipment including the lift fixtures.The participant is provided multiple failure modes for slings,hooks, shackles, and eye bolts. Fundamentals:Visual Job Plans #6 Estimated Contact Hours: 1

Module 6 of Fundamentals, Visual Job Plans, introduces theVisual Job Plan format. The intent is to walk participantsthrough the content of a Visual Job Plan.Mechanical:Mechanical Safety #7 Estimated Contact Hours: 4

Module 7 of Mechanical, Mechanical Safety, addresses safetywhen working with Mechanical Systems. The intent is toremind the participants that while they are preforming the newautonomous and minor maintenance tasks, they are to exercisethe expected safety precautions, wear the proper protection,and identify safety issues for corrective maintenance. Participants are introduced to safety as it relates to powertransmission, mechanical devices and mechanical systems.Items such as gravity, stored energy, and mechanical advantageare addressed.


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Time is spent on Energy Control for Setup and Permitted MinorTasks (ECSPMT) and describes the minor maintenance actionsthat are permitted with the “lock-key” system. Mechanical:Lubrication Systems #8 Estimated Contact Hours: 4

Module 8 of Mechanical, Lubrication Systems, is intended as adeep dive into centralized lubrication systems used onmanufacturing equipment. These oil systems include drip, wiper,and mist systems. The module then goes on to discuss theapplication of solid film lubricants and grease. Completing thismodule, participants should be able to replace lubricants, fillreservoirs, and complete greasing activities. As a result of thismodule and related modules the participant will:

• Identify and describe fault conditions to TeamMembers, Skilled Employees, or the Process Coach.

• Demonstrate an understanding of the various types oflubrication systems used on the production equipment.

• Apply knowledge of various valves, fittings, andcomponents used on lubrication systems.

• Identify and in some cases correct issues withlubrication systems

Mechanical:Mechanical Principles #9 Estimated Contact Hours:4

Module 9 of Mechanical, Mechanical Principles, utilizes the samesteps as previously reviewed by participants in Introduction toPrinciples in the Fundamentals Section. This module providesparticipants with an efficient and logical sequence of activities tomake decisions based on the input they absorb through the foursenses. Senses include seeing, hearing, smelling and touching.

• Investigate• Analyze• Act• Verify Results• Standardize


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This module concentrates on principles of mechanical elementsof production equipment and asks specific questions related tothe 4 senses to assist the production participant in completingstandardized steps in troubleshooting.At the conclusion of the module it identifies expectations basedon the 4 senses. (sight, hearing, smelling and touching)Electrical:Electrical Safety #10 Estimated Contact Hours: 8

Module 10 of Electrical, Electrical Safety, addresses safetywhen working with Electrical Systems. The intent is to remindthe participants that while they are performing the newautonomous and minor maintenance tasks, they are to exercisethe expected safety precautions, wear the proper protection,and identify safety issues for corrective maintenance. Otherobjectives for this module include the participant:

• Interpreting the information on the Arc Flash labelsand following all safety precautions as prescribed.

• Understanding the use of a GFCI and demonstratingthe proper application of the GFCI.

• Following 5 S’s for work place organization andkeeping areas in front of electrical panels clear.

Participants are introduced to safety as it relates to electricalsystems, electrical devices and electrical components. Itemsincluded in this safety section are.

• ECPL Review• ECSPMT Review• Proper method to operate an electrical disconnect• Arc Flash – Arc Blast - Boundary• How Electricity is conducted• Grounding• GFCI• Overview of NFPA 7E of the National Electric Code• Precautions to prevent injury


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Electrical:Electrical Principles #11 Estimated Contact Hours: 5

Module 11 of Electrical, Electrical Principles, is intended toprovide basic information to the participant starting at AC andDC current, basic electrical principles, understanding the typesof circuits through conditional inputs and outputs. It addresseshow a participant’s actions, can create conditions/movement inequipment. The participant will:

• Understand conditional inputs and outputs and howthey apply to the function of your productionequipment.

• Perform minor maintenance inspections.• Safely verify conditional inputs and outputs as

required in order to verify machine operations.• Understanding when a conditional input(s) is satisfied,

an output(s) will result as the consequence of thatinput(s).

Electrical:Electrical Systems and Components #12 Estimated Contact Hours: 5

Module 12 of Electrical, Electrical Systems and Components, isintended to provide participants with the basic theory ofprocess control and the skills to identify the various plugs,receptacles, sensors, switches and other components used onproduction equipment. At the conclusion of this module, participants again workthrough the steps as they relate to electrical components. This module is unique because it continues the discussion ofprocess control, and addresses complementary componentsconcurrent to the operation. Fluid PowerHydraulic and Pneumatic Principles #13 Estimated Contact Hours: 5

Module 13 of Fluid Power, Hydraulic and Pneumatic Principles,is intended to provide participants with the basic theory of


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hydraulics and pneumatics. It provides participants with anunderstanding of the components of the sytem, how they worktogether and how pressure is created. Pascal’s law is addressedas well as safety as it relates to Hydraulic and Pneumaticsystems. Fluid PowerFluids #14 Estimated Contact Hours: 5

Module 14 of Fluid Power, Fluids, is intended to provideparticipants with information to assist them in Identifying andcorrecting issues with hydraulic fluids. Participants are awareof the characteristics of fluids based on machine requirementsso when faced with filling the tank they are able to read theFord identification tags for fluid replenishment. After thismodule, participants are aware of contamination andbreakdown of hydraulic fluids and are able, with some OJT toreplace filters that do not require special tools or procedures.Fluid PowerAccessories #15 Estimated Contact Hours: 2

Module 15 of Fluid Power, Accessories, is intended to provideparticipants with information so that they can recognizedifferent accessories associated with hydraulic and pneumaticsystems. Accessories covered in this module include:

• Heat Exchangers• Accumulators • Intensifiers• Pressure Gauges• Flow Meters• Sound Dampening materials

Participants are introduced to each of these accessories and areinstructed on how they work in the system, safety precautionswhen working around these accessories, and associated issuesthat may cause a reduction in efficiency for these components.


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VISUAL JOB PLANS AND MINOR MAINTENANCE

Supporting MOS, the Visual Job Plan (VJP) is a standardmethod for formalizing job steps for tasks performed byproduction employees within a Production Work Group (PWG)and Manufacturing Work Group (MWG). Visual Job Plans alsoensure appropriate methods are utilized within the team tomaintain safety and quality. Training for a specific plan will beprovided through on-the-job training (OJT).Example of a generic VJP

• Production employees will be assigned minor orpreventative maintenance tasks as identified on the visualjob plan (VJP)

• Production employees currently performing minormaintenance tasks will continue to perform those tasks

• Visual job plans will be jointly approved by the local parties• If required, the national parties will review any

discrepancies and provide guidance to the local parties onresolution


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APPENDIX J AND MAINTENANCE WORK TEAM WAGE RELATED MATERIAL*


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CHARTER CHANGE MANAGEMENT PROCESS

A formal process for Plants to request review of the ContinuousImprovement documents by the NCIF.

Charter Document Change Request FormDate of Request: ______________ Change Requested by: __________

Description of Change Request:

Purpose of Change Request:

Date Submitted to NCIF: ________________________Date Reviewed by NCIF: ________________________Change Approval (A) / Denial (D) by NCIF: ___________

Change Approval Signature:_______________________________

Reason for Approval/Denial:

Date Approval / Denial Reviewed with Change Requestor: ___________


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APPENDIX K

MEMORANDUM OF UNDERSTANDING – TEMPORARYEMPLOYEES

During these negotiations the parties held lengthy discussionsregarding the use of temporary employees. The parties agreedthat in certain circumstances, it may be necessary to utilizetemporary employees to supplement the full-time work force.To that end, the parties recognize the following two categoriesof temporary employees:

• Temporary Part-Time Employees (TPT)• Short-Term Supplemental Employees (STS)

The following paragraphs set forth the terms and conditions foruse of the aforementioned temporary employees, as well as thewages, benefits and other provisions. I. Temporary Part-Time Employees (TPT) shall be employed

in accordance with the following provisions:a. TPTs are employees hired by the company who shall

be normally scheduled to work a maximum of threedays per week. TPTs may be utilized any day of theweek and at any Ford U.S. facility to replace hourlyemployees not at work for certain absence codes,specifically, unexcused absences, Intermittent FamilyMedical Leave Act (FMLA) leaves/absences, or sickleaves of absence of less than twelve (12) months.

b. The Company and the UAW National FordDepartment shall meet annually to determine themaximum allowable number of TPTs to be used ateach facility in each of the four subsequent quarters.The first such meeting will take place within 30 daysof ratification of the agreement. The parties will meetin advance of each quarter to mutually agree that thecalculation is still applicable.

APPENDIX K MEMORANDUM OF UNDERSTANDING TEMPORARY EMPLOYEES

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i. Such determination will be made by examiningunplanned absence data from the previouscalendar year. The number of TPTs allowed ateach facility will be based on that facility’squarterly average of the aforementionedabsences calculated as a percentage of totalabsenteeism multiplied by the number of full timeemployees (active on roll plus temporarilyinactive). This will represent the full-timeequivalent or percent of labor hours that may beworked by TPTs.

ii. The parties recognize there may be a need toutilize a mutually agreed upon higher number ofTPTs (than the calculated allowance) onMondays, Fridays, other “book end days”,Saturdays, Sundays, Holidays, and the dayspreceding and following Holidays toaccommodate the greater number of absencesthat occur on those days.

iii. If a facility is unable to obtain a sufficientnumber of TPTs based on candidate workpreferences, the parties will meet to discusssuitable alternatives.

c. The National parties will monitor the use of TPTemployees in the weekly NFD/Labor AffairsManpower meeting. Should the UAW-National FordDepartment determine that TPTs are being scheduledfor hours or for reasons beyond those allowed, it willbring it to the attention of the Director of U.S. LaborAffairs and the Vice President of North AmericaManufacturing. Violations will be corrected within 2weeks of such notice or the use of these temps will besubject to cancellation by the National FordDepartment.

d. For purposes of determining Union representation,TPT employees will be counted only on days for whichthey are scheduled to work. Representation will bedetermined by accumulating the number of TPT


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employees utilized each day until the number reaches200 at which time the Union will be authorized anadditional representative for one day.

II. Short-Term Supplemental Employees (STS) shall beemployed in accordance with the following provisions:a. STSs are employees hired by the Company who shall

be normally scheduled to work any five days per weekfor a period not to exceed twelve (12) calendarmonths.

b. In all instances where STS employees are to beutilized, the Company shall canvass existing TPTemployees at the requesting facility for their interestto become an STS employee.

c. The Company may hire, rehire or reinstate STSemployees for the purpose of summer vacationreplacements for the period beginning the firstMonday in May and ending no later than the firstSaturday following the Labor Day Holiday tosupplement seniority employees who take vacation.The Company will review the vacation coverage planswith the National Ford Department prior to May 1stand will address any concerns to the mutualagreement of both parties prior to employees beingplaced on roll. i. The National Parties will continue to monitor the

use of STS employees as vacation replacements inthe weekly NFD/Labor Affairs Manpowermeeting. Issues regarding the use of theseemployees will be brought to the attention of theDirector of U.S. Labor Affairs and the VicePresident of North America Manufacturing.These issues will be resolved within 2 weeks or theuse of these temps will be subject to cancellationby the National Ford Department.

d. The Company shall review with the National FordDepartment other situations requiring STS employeessuch as, but not limited to: product launches, attrition


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program transition, periods of high vacation (outsideof the summer vacation replacement period),placeholders awaiting transfer of laid off employeesfrom other locations, or other similar supplementalmanpower needs. i. Requests for STS employees in such cases shall be

made in writing to the National parties formutual agreement.

ii. If there are no existing TPT employees at therequesting facility, the Company may hire, rehireor reinstate STS employees for a period of up toone year. If a STS employee works for acontinuous period of more than one year, theywill gain seniority as an In-Progression employeewith a seniority date equal to the most recenthire, rehire or reinstatement date as an STSemployee. However, if the most recent hire,rehire, or reinstatement date as an STS employeewas prior to November 23, 2015, the STSemployee will establish a seniority date ofNovember 23, 2015.

iii. The UAW-National Ford Department may cancelthe use of STS employees following two weeksadvanced written notice of termination to theCompany.

e. STS employees will not be hired or rehired at a plantwhen there are laid off seniority employees from thatplant or laid off seniority employees within the samezone, until the laid off seniority employees have beencanvassed to work as a Short-Term Supplementalemployee and the need still remains.

f. For purposes of determining Union representation,STS employees on roll will be counted as part of theUnit.

g. The National parties will continue to review the use ofSTS employees on an on-going basis. STS employees


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are not to be employed to avoid hiring to fillpermanent positions.

III. The following provisions will apply to both TemporaryPart-Time and Short-Term Supplemental employees:a. On days they are scheduled to work, temporary

employees may be scheduled for all or any part of thehours posted for the department to which they areassigned.

b. Temporary employees may be scheduled to work dailyovertime or on days for which full-time employeesreceive premium pay as such if they do not displaceeligible full-time employees.

c. Temporary employees will not be assigned to anoperation expressly for the purpose of establishing aproduction standard on that operation; nor willhis/her performance be considered either inestablishing a production standard or in a disputeover the production standard.

d. The utilization of temporary employees shall not beconsidered as an infringement of the rights of full-timeseniority employees. i. Seniority employees who are laid off or who are

to be laid off may request to displace temporaryemployees.

ii. Seniority employees who are utilized astemporary employees will be required to complywith the work schedule for temporary employees.

iii. Seniority employees who are utilized astemporary employees shall continue toaccumulate seniority and shall be entitled to allthe benefits of seniority employees except asprovided in paragraph iv.

iv. Seniority employees who are utilized as TPTemployees shall not be entitled to SupplementalUnemployment Benefits (SUB). Seniority


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employees who are utilized as STS employeesshall be entitled to SUB.

v. A seniority employee who is affected by areduction in force and becomes a temporaryemployee will be eligible for a scheduled vacationand paid excused absence with respect to anyunused vacation/excused absence hours at thetime of the reduction in force. Further, incomputing the number of weeks of enrollmentand absences for purposes of determiningvacation eligibility for the succeeding year, theperiod of employment as a temporary employeewill be counted.

vi. A seniority employee who becomes a temporaryemployee will be entitled, if otherwise eligible, toreceive payment for the wage benefit payments inthe following provisions of the UAW-FordCollective Bargaining Agreement for the days theemployee would have been scheduled to work:Article IX, Section 18 – Jury Duty PayArticle IX, Section 19 – Bereavement PayArticle IX, Section 20 – Short-term MilitaryDuty Pay

e. Temporary employees will be considered for full-timejob openings in a fair and equitable manner, givingdue consideration to the length of employment withthe Company. Additionally, the Company willconsider temporary employees for full-time jobopportunities prior to hiring from the street and in thefollowing order:i. Temporary employees currently working and/or

laid off from the requesting facility.ii. Temporary employees currently working and/or

laid off within the same zone of the requestingfacility, except when the requesting facility iswithin the Rouge Site. After the requesting


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facility within the Rouge Site has exhausted itslist of temporary employees at that facility,working and/or laid off temporary employeesfrom the Rouge Site shall be given considerationprior to hiring from the zone.

f. Temporary employees will be laid off and recalled in afair and equitable manner, giving due consideration tothe length of employment with the Company. Recallwill follow the order from above.

g. Temporary employees shall accrue no credit towardsacquiring seniority. In the event such employeesbecome full-time employees, they shall be consideredas rehires and shall receive no credit towardsacquiring seniority for time they were employed astemporary employees. Temporary employees shall,however, receive credit for time worked as atemporary employee for all eligibility of benefits as anIn-Progression employee.

h. The Company may discharge or terminate temporaryemployees, in which case the employees shall haveaccess to the Grievance Procedure in cases of claimeddiscrimination on account of any race, religion, color,religion, age, sex, sexual orientation, gender identity,union activity, national origin, disability and veteranstatus

i. Temporary employees shall be entitled to Unionrepresentation, including access to the regularGrievance Procedure, in cases of alleged violation ofrights arising out of this Agreement.

j. Temporary employees will be subject to the provisionsof Article II and III of the UAW-Ford CollectiveBargaining Agreement. Monthly dues for temporaryemployees will be as determined by the National FordDepartment, UAW.

k. Wages beginning on the Effective Date of theAgreement:


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i. Temporary employees hired or rehired prior toNovember 23, 2015 will have their wage rate andprogression determined as follows:

Table 1:Wage Effective

Weeks Worked Current Wage 11/23/2015

Less than 52 weeks worked $15.78 $17.0052 – 104 weeks worked $16.66 $18.00105 – 156 weeks worked $17.53 $19.50157 – 208 weeks worked $18.41 $21.00After 208 weeks worked $19.28 $22.00Maximum Rate $19.28 $22.00

ii. Temporary employees hired or rehired afterNovember 23,2015 will have their initial wagerate and subsequent wage progressiondetermined as follows:

Table 2:Weeks Worked Wage Progression

At Hire $15.78 52 – 104 weeks worked $16.66 105 – 156 weeks worked $17.53 157 – 208 weeks worked $18.41 After 208 weeks worked $19.28

l. Such employees shall have only such rights, privileges,compensation or benefits as are expressly provided bythe following provisions of the UAW-Ford CollectiveBargaining Agreements:Article IX, Section 5 – Call-In PayArticle IX, Section 6 – Shift PremiumsArticle IX, Section 11 – Holiday PremiumArticle IX, Section 15 – Medical Treatment DuringWorking Hours – Time AllowanceArticle X, Section 6 – Lunch Periods


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m. Holiday Pay:i. A temporary employee will be eligible for holiday

pay as set forth in Article IX, Section 22(a) of theUAW-Ford Collective Bargaining Agreementprovided:1. The employee has actually worked at least 90

days prior to the holiday(s);2. The employee worked the same day(s) as the

holiday in the week prior to the week inwhich the holiday(s) falls and the employeewould otherwise have been scheduled towork on such day if it had not been observedas a holiday; and

3. The employee has worked the last scheduledworking day prior to and the next scheduledworking day after such holiday(s) within theemployee’s scheduled workweek. In the caseof the Christmas holiday period, as definedin Article IX, Section 22(a) (3) (i) of theUAW-Ford Collective Bargaining Agreement,a temporary employee absent without excuseon both the last scheduled working day priorto and the next scheduled working day aftersuch Christmas holiday period shall beineligible for pay for all of the holidayswithin the Christmas holiday period. Anotherwise eligible temporary employeeabsent without excuse on either the lastscheduled working day prior to or the nextscheduled working day after a Christmasholiday period shall be eligible to receiveholiday pay for all but one of the holidays forwhich he would otherwise be eligible in theChristmas holiday period.

ii. A seniority employee who is laid off in a reductionin force and becomes a temporary employee willbe entitled to holiday pay provided the employee


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meets the eligibility requirements outlined in A(2) and (3) of this paragraph; except that, if theemployee is eligible for holiday pay under ArticleIX, Section 22(d) of the UAW-Ford CollectiveBargaining Agreement the eligibility rules inSubparagraph A of this paragraph shall notapply. However, should the employee qualify forChristmas holiday pay as provided in thisMemorandum and Article IX, Section 22(d), theemployee will be provided the greater of the twoChristmas holiday pay entitlements but not both.

iii. A probationary employee who is laid off in areduction in force and is utilized as a temporaryemployee will be considered for holiday paypurposes as though hired originally as atemporary employee with the number of daysactually worked as a full-time employee countedtoward the 90 days required for holiday payeligibility in Subparagraph A of this paragraph.

n. Benefits for temporary employees are provided asindicated in Attachment A of this Appendix.


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ATTACHMENT A

TEMPORARY EMPLOYEES

A. Temporary part-time employees and Short TermSupplemental employees shall be provided hospital-surgical-medical H-S-M coverages commencing as of the 90th dayfollowing hire or rehire. In addition, Short TermSupplemental employees shall be provided with drugcoverage commencing on the same date. The Company shallpay the full amount of the monthly premium for the followingmonth’s coverages for each month an eligible employeereceives pay from the Company for any time during suchmonth. These coverages shall cease, if otherwise in effect, asof the last day of the month in which employment isterminated. It is understood there shall be no duplication ofbenefits because of coverages provided under Company H-S-M programs.

Temporary Part Time and Short Term Supplementalemployees will not be able to enroll sponsored dependents.

H-S-M enrollment is limited to the National Preferred ProviderOrganization (NPPO) Option, modified to include the cost-sharing requirements shown below:

Annual Deductible In-Network Single $300 Family $600

Out-of-Network Single $1,200 Family $2,100

Co-Insurance In-Network 10% Out-of-Network 35%

APPENDIX K MEMORANDUM OF UNDERSTANDING— TEMPORARY PART-TIME

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Out-of-Pocket Maximum In-Network Single $1,000 Family $2,000

Out-of-Network Single No Limit Family No Limit

Drug coverage for Short Term Supplemental employeeswill be limited to the NPPO Option, modified to include thecost-sharing requirements shown below: Prescription Drugs – Retail Generic $ 7.50 co-pay Brand $15.00 co-pay Prescription Drugs - Mail Order Generic $15.00 co-pay Brand $30.00 co-payThe opportunity for survivors of Temporary Part Time andShort Term Supplemental employees to continue coverage,or for the subject employees to continue coverage post-employment or for periods not in active service will be limitedto self-pay continuation that may be available under federallaw.


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ATTACHMENT ASavingsB. Temporary employees are eligible to participate in the Tax-

Efficient Savings Plan for Hourly Employees (TESPHE);however, they are not eligible for the SupplementalContribution of an amount equal to $1.00 for everycompensated hour into the TESPHE in lieu of Companycontributions for health care coverage in retirement orRetirement Contributions.

Retirement PlanC. Temporary employees shall not accrue pension benefits under

any Company-sponsored qualified defined benefit pensionplan. However, service earned from date of hire by suchemployee as a temporary employee shall be recognized undersuch plan solely for eligibility, vesting and participation withrespect to any benefit they accrued while a seniorityemployee.


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ATTACHMENT ALife InsuranceD. Temporary employees shall be provided life insurance

coverage in the amount of $3,000 and accidental death anddismemberment insurance coverage in the amount of $1,500.An employee shall become eligible for such coveragescommencing as of the first of the month following the monthof hire or rehire. The Company shall pay the full premium forthese coverages for any month in which an eligible employeereceives pay from the Company for any time during suchmonth. These coverages shall cease, if otherwise in effect, asof the day employment is terminated.


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APPENDIX M

MEMORANDUM OF UNDERSTANDING JOB SECURITY PROGRAM (JSP)

The Company and the Union are committed to enhancing the jobsecurity of Ford Motor Company employees. The parties alsorecognize that such job security can only be realized within a workenvironment which promotes operational effectiveness, continuousimprovement, and competitiveness.

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

The cornerstone of the Program is a set of provisions – includingjob placement and temporary income security – to assist employeeswho are impacted by Indefinite Layoff or who are otherwise definedas surplus.

Nothing in this Agreement is meant to alter the placement practicesat Multi-Plant Employment Locations, as defined in Appendix N,Attachment B.

I. JOB SECURITY ELIGIBILITY

A. All seniority employees as of the Effective Date of the2015 UAW-Ford National Agreement are covered by this Memorandum. Such employees are considered “JSP-eligible” in that they are covered by the job securityprovisions of this Memorandum.

A plant by plant listing of the number of skilled and non-skilled employees covered by this Memorandum will beprovided to the National Job Security, OperationalEffectiveness, and Sourcing Committee (NJSOESC) andLocal Job Security, Operational Effectiveness, andSourcing Committees (LJSOESCs). This report will beupdated monthly.

B. Discharged employees who are JSP-eligible will maintaintheir eligibility upon reinstatement.

APPENDIX M MEMORANDUM OF UNDERSTANDINGJOB SECURITY PROGRAM (JSP)

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II. JOB SECURITY PROVISIONS FOR JSP-ELIGIBLEEMPLOYEESA. The parties recognize that actions may occur during the

course of this Agreement that will cause the number ofJSP-eligible employees to exceed the Company’sproduction requirements. The following provisions shallapply to JSP-eligible employees who are placed onIndefinite Layoff or who are otherwise defined as surplus.

B. In-Zone/Out-of-Zone Placements

1. Placement of JSP-eligible employees will be inaccordance with the provisions of Appendix N andassociated Letters of Understanding.

2. Notwithstanding the above, available JSP-eligibleemployees will be placed on a combined list of JSP-eligible employees in the same PreferentialPlacement Zone who are on Indefinite Layoff orwho are otherwise defined as surplus (the in-zonelist). JSP-eligible employees will be made availablefor in-zone placement in inverse seniority order.

3. For placement purposes, employees on thecombined in-zone list will be offered the opportunityto volunteer for openings; volunteers will be placedin seniority order. Absent volunteers, the junioremployee on the combined in-zone PreferentialPlacement list must transfer to the new location.

An available JSP-eligible employee mandatorilytransferred to another location may remain at thesecondary location until afforded an opportunity to“return home” in accordance with Appendix O oruntil the employee is laid off from that location, atwhich time the employee may elect options availableunder Article VIII, Section 1(b) of the CollectiveBargaining Agreement.

4. Available JSP-eligible employees on IndefiniteLayoff or who are otherwise defined as surplus willbe offered the opportunity to volunteer for out-of-zone opportunities.


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C. A JSP-eligible employee who is permanently transferredto another location in accordance with this Program, or ifso transferred and upon later layoff elects to return to aformer location under Article VIII, Section 1(b) of theCollective Bargaining Agreement, will be eligible toreceive a moving allowance as provided in Article IX,Section 28 of the Collective Bargaining Agreement.Applicants may receive a maximum of two (2) suchrelocation allowance payments during the term of thethen applicable UAW-Ford Collective BargainingAgreement. Any problems connected with the above maybe raised with the National Committee.

D. A JSP-eligible employee on a Qualifying Layoff will beeligible for benefits under the SupplementalUnemployment Benefit (SUB) Plan. A Qualifying Layoffis either of the following:

• Indefinite Layoff;

• temporary layoff in an instance, as jointly identifiedby the parties, in which the Company modifies shiftsor work schedules to enhance operating performanceand continues to actively employ employees whootherwise would be placed on Indefinite Layoff.

E. A JSP-eligible employee on a Qualifying Layoff whoexhausts his or her maximum eligibility for SUB RegularBenefit payments shall be eligible for subsequent benefitsunder the Transition Assistance Plan (TAP).

F. JSP-eligible employees placed on Indefinite Layoff shallmaintain their recall rights in accordance with applicableprovisions of the Collective Bargaining Agreement, withthe exception of employees who elect to opt out of TAPbenefit eligibility.

G. JSP-eligible employees on Indefinite Layoff or who areotherwise defined as surplus will be placed into availablejobs in accordance with the provisions of Appendix N andrelated Letters of Understanding.

H. In the event the Local and National Committeesdetermine that the number of JSP-eligible employees


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exceeds the number of expected openings at the facilityand within its area within the next succeeding twelve (12)months, Special Programs as set forth in the Attachmentto this Memorandum may be considered. Localmanagement must obtain Finance approval beforesubmitting a request to the National Committee.Thereafter, to the extent JSP-eligible employees stillexceed expected openings, such employees, under thedirection of the National Committee, may be transferredout of the zone area pursuant to Section II, B., above.

III. ADMINISTRATION OF THE JOB SECURITY PROGRAMThe Company and the Union agree that:

A. At each bargaining Unit covered by the 2015 CollectiveBargaining Agreement, a Local Job Security, OperationalEffectiveness, and Sourcing Committee (LocalCommittee) will be established to administer theProgram.

B. The parties have agreed that a Local Job Security,Operational Effectiveness, and Sourcing Committee(Local Committee) will consist of equal members ofCompany and Union representatives including, for theCompany, the Plant Manager or Parts Distribution CenterManager, Controller or Office Operations Manager,Human Resources Manager or Labor RelationsSupervisor, and other management representatives asdesignated by the Plant Manager or Parts DistributionCenter Manager; and, for the Union, the PlantChairperson, the Local Union President, (if he/she soelects), Bargaining Committeepersons, the local UAWJob Security Representative, and other local Unionrepresentatives as designated by the Plant Chairperson.

C. The duties of the Local Committee will be to:

1. Review the number and status of employees on amonthly basis.

2. Coordinate with the National Committee (SectionIII., D., below) the placement of an employeeoutside the zone area. As used in this Memorandum,


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zone area means an area as specified under AppendixN of the Collective Bargaining Agreement pertainingto Preferential Placement for Laid-Off Employees.

3. Monitor indefinite layoffs of JSP-eligibleemployees.

4. Participate in discussions regarding sourcingdecisions as outlined in Appendix P of the 2015Collective Bargaining Agreement on the subject ofsourcing.

5. Participate in discussions regarding the introductionof new or advanced technology as provided in theLetter of Understanding regarding New Technologydated September 15, 2003.

6. Review manpower changes in the workplace. Asrequired, assist in developing plans to replaceattrition, including the use of hires or rehires, to meetoperational needs when other appropriate placementsources have been exhausted.

7. Review the manpower requirements of forwardproduct, facility, and business plans, maintaining theconfidentiality of the material being evaluated.

8. Assist in planning and coordinating the relocation ofIndefinitely Laid-Off and/or otherwise surplus JSP-eligible employees to other Units in or outside thezone area, and the application of special programs tosuch employees and active workforce employees asdescribed in this Memorandum of Understanding.

9. Review any complaint regarding the administrationof the Program. Refer unresolved complaints to theNational Committee (Section III., D., below). Thenational parties will limit the review of complaints tothose raised, in writing, within 60 days of themonthly LJSOESC meeting giving rise to thecomplaint unless the time limit is waived by theNational Committee. If disputes cannot be resolvedby the National Committee, only those mattersgoverning the treatment of JSP-eligible employees


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will be subject to the Grievance Procedure. Suchgrievances will be filed at the Second Stage of theGrievance Procedure. All other unresolvedcomplaints will be settled expeditiously between theparties at the national level. Disputes arising fromlayoffs may be submitted within thirty (30) days ofthe monthly LJSOESC meeting, in writing, to theVice President and Director of the UAW, NationalFord Department and the Director, Labor Affairs,Ford Motor Company. If unresolved, the disputemust be appealed to the umpire in accordance withArticle VII, Section 9 of the Agreement within thirty(30) days of receipt of the appeal. The umpire’sdecision shall be final and binding on the parties andthe umpire shall have the authority to enforce suchdecision.

10. Jointly coordinate appropriate local trainingactivities, working closely with the joint localEducation, Development and Training ProgramCommittee and the UAW-Ford National Education,Development and Training Center to ensure thatquality, cost-efficient training is provided andappropriate funds are secured from both within Fordand from external sources.

11. Jointly develop and initiate proposals to improveoperational effectiveness to secure existing jobs andto attract customers and additional business, thusproviding additional job opportunities. Whenrequired, secure necessary approvals from thebargaining Unit membership and the nationalparties.

12. Make recommendations to the National Committee,as appropriate, regarding any aspect of the Program.This may include any aspect of the contractualrelationship between the Company and the Unionthat is relevant to the duties of the Local Committee.

13. Efforts of the local parties to improve operationaleffectiveness will be encouraged and supported by


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the national parties including, as may be appropriate,approval of requests to waive, modify, or change theCollective Bargaining Agreement.

D. A National Job Security, Operational Effectiveness, andSourcing Committee will be established at the Company-International Union level consisting of representativesselected by the Vice President, Labor Affairs, Ford MotorCompany and representatives selected by the VicePresident and Director of the UAW, National FordDepartment. Funding for the activities of the NationalJSOES Committee will be provided from the Education,Development and Training Program fund upon approvalby the Joint Governing Body — UAW-Ford NationalEducation, Development and Training Center.

E. The National Committee will be responsible to the VicePresident, Labor Affairs, Ford Motor Company and theVice President and Director of the UAW, National FordDepartment, and will meet periodically as required to:

1. Monitor the efforts of the Local Committees.

2. Maintain liaison with the Joint Governing Body -UAW-Ford National Education, Development andTraining Center to coordinate (a) assessment andtraining programs, and (b) funding through LocalTraining Funds and, (c) if appropriate, theEducation, Development and Training Program.

3. Approve Local Committee efforts to improveoperational effectiveness and coordinate theseactions when appropriate.

4. Coordinate, where applicable, the execution ofSpecial Programs described above and in theAttachment, as well as the movement of JSP-eligibleemployees within or between zone areas. Forexample, where a permanent loss of jobs hasoccurred or is scheduled for a location, the partiesmay discuss transfer of employees to other locations;such a transfer could be in advance of the scheduled


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job loss, if it could be accomplished withoutadversely affecting quality or operating efficiency.

5. Act on requests from Local Committees to waive,modify, or change the Collective BargainingAgreement provisions when such action wouldresult in the preservation of or increase in jobopportunities. Approval of such requests will becountersigned by the Vice President and Director ofthe UAW, National Ford Department, and the VicePresident, Labor Affairs, Ford Motor Company,regarding the operation of the Program.

6. Make periodic reports to the Vice President andDirector of the UAW, National Ford Department,and the Vice President, Labor Affairs, Ford MotorCompany, regarding the operation of the Program.

F. The National Committee is specifically empowered toreview periodically and evaluate the operation of thisMemorandum of Understanding and mutually makesatisfactory adjustments to its provisions during the termof this Memorandum.

IV. EFFECTIVE DATE - TERMINATION DATEThe Company and International Union agree that:

A. Unless indicated otherwise, the Effective Date of thisMemorandum means the Effective Date of the 2015Collective Bargaining Agreement.

B. This Memorandum of Understanding shall expire withthe expiration of the 2015 Collective BargainingAgreement.


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APPENDIX M

ATTACHMENT A

The National Job Security, Operational Effectiveness, and SourcingCommittee (NJSOESC) may recommend the following SpecialPrograms for designated eligible JSP-eligible employees or mayapprove requests from Local Job Security, OperationalEffectiveness, and Sourcing Committees for implementation ofsuch programs. Details of any Special Programs offerings will bejointly agreed upon and presented to all eligible JSP-eligibleemployees.

The Special Programs offerings may include the following options:

• Special Retirement Incentive (SRI)• Special Termination of Employment Program (STEP)• Mandatory Decision Making

In addition to the Special Programs options above, eligible JSP-eligible employees may be offered job placement opportunities, ifavailable (with relocation benefits as applicable).

The National Parties may expand or limit these Special Programsoptions and job opportunity offerings, based on mutual agreement.

The NJSOESC is empowered to offer STEP and SRI at Ford MotorCompany locations where UAW represented JSP-eligible Fordsurplus employees exist. The decision of the NJSOESC to offerSTEP and SRI may be based upon either (a) a written joint requestfrom the Company and UAW leadership at the location, submittedto the NJSOESC, or (b) a determination by the NJSOESC that theSTEP and SRI offerings are warranted at the location.

APPENDIX M ATTACHMENT A

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APPENDIX N

MEMORANDUM OF UNDERSTANDING PREFERENTIAL PLACEMENT ARRANGEMENTS

This memorandum explains arrangements under which employeeslaid off on or after October 22, 1979 as a result of a permanentdiscontinuance of operations or other reduction in force where theCompany and the Union agree there is no reasonable likelihood ofrecall will be eligible for preferential placement opportunities.Otherwise eligible skilled tradespersons laid off from their trade,but employed by the Company on production work, may apply forpreferential placement opportunities in their trade.

NON-SKILLED PREFERENTIALPLACEMENT HIERARCHY

Step 1 After being placed on the preferential placement list(s) inaccordance with procedures established by the Company,those employees retaining seniority recall rights shall begiven preference for placement on available work, or ifnone is available, the opportunity to displace probationaryemployees, on jobs for which they are qualified or couldqualify within a reasonable period of time in other plantscovered by the Agreement in the same zone, as defined bythe parties, or in plants covered by the Agreement indifferent zones as might be specified by mutual agreementbetween the Company’s Labor Affairs Office and theUAW’s National Ford Department. An in-zone area iscomprised of all plants listed under a specified zonenumber as described in Appendix N, Attachment A.Attachment A includes zone definitions for all Companylocations. It is understood that these zone definitions maybe modified by mutual agreement between the Company’sLabor Affairs Office and the UAW’s National FordDepartment.

a) When a non-skilled manpower need is identified at afacility, a combined list of employees with rights tothat facility will be developed and include:

• Employees on Indefinite Layoff

APPENDIX N MEMORANDUM OF UNDERSTANDINGPREFERENTIAL PLACEMENT ARRANGEMENTS

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• Employees on no-pay/no-benefits status

• Legacy employees (hired or rehired prior to November 19, 2007) who bumped In-Progression employees in-zone as a result ofa workforce reduction

Employees on the list will be canvassed for placementin seniority order.

b) If openings still exist, employees who have Returnto Basic Unit (RTBU) rights to the hiring facilitywill be advised of available opportunities viaRTBU canvass for voluntary transfer. Onceauthorized by the Company’s Labor Affairs Office,Local Hourly Personnel Offices at the impactedlocations will begin the canvass opportunities forthe eligible employees.

Step 2 If openings still exist, in-zone employees who are onIndefinite Layoff and/or defined as surplus will be advisedof available in-zone posting opportunities for voluntarytransfer. Once authorized by the Company’s Labor AffairsOffice, Local Hourly Personnel Offices at the in-zonelocation(s) will post a notice:

• Employees on Indefinite Layoff• Employees defined as surplus• Employees on active rolls and are currently working at

a facility with employees on Indefinite Layoff ordefined as surplus

• Closed Plant Return to AreaAll active volunteer transfers will be limited to the numberof non-skilled employees on Indefinite Layoff or defined assurplus at that location.

If the in-zone opportunities have not been filled, theopenings will be filled through the mandatory transfer ofin-zone employees on Indefinite Layoff or those defined assurplus.


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Mandatory placement of these employees will be fromlowest-to-highest seniority order:• Non-Skilled employees on Indefinite Layoff• Non-Skilled employees on temporary loans• Those defined as surplus

Step 3 If openings still exist, out-of-zone employees who are onIndefinite Layoff and/or defined as surplus, and “active”employees at out-of-zone facilities with employees onindefinite layoff will be advised of available out-of-zoneposting opportunities for voluntary transfer. Onceauthorized by the Company’s Labor Affairs Office, LocalHourly Personnel Offices at the out-of-zone location(s) willpost a notice for volunteers. Eligible volunteers areemployees on Indefinite Layoff, those defined as surplus,and employees who are on active rolls and are currentlyworking at the eligible facility. Volunteers will be limitedto the number of non-skilled employees on IndefiniteLayoff or defined as surplus at that location.

Step 4 If openings still exist, active and surplus skilled tradepersons with or without production service may volunteerfor the available opportunities. Volunteers will be limitedto the number of surplus in the identified trade(s) atthat location.

Step 5 If openings still exist, employees will be extended a joboffer according to the provisions outlined below:

The intent of this provision is to ensure that themandatory decision regarding out-of-zone transfers ispresented to the lowest–seniority JSP-eligible employee- active or on Indefinite Layoff – in a zone with surplus.To simplify administration of this provision, out-of-zoneoffers are to be extended by lowest to highest seniorityin zones with surplus until the openings are filled or thesurplus is exhausted. In-zone backfills resulting fromthis process are to be filled by placing the lowestseniority surplus in-zone employees in openings. If thereare multiple openings in zone, the surplus employeeswill be canvassed for their preference in placementopportunities.


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• If an employee is extended any job offer at an out-of-zone facility, the employee must elect one of thefollowing options:

1) Accept the job offer and report to work at theout-of-zone facility

2) Decline the job offer and be placed on inactivestatus with no Company-provided income orbenefits (but remain eligible for additional jobopportunities for a period of time not to extendbeyond the employee’s seniority or 18 months,whichever is greater)

3) Decline the job offer and bump the lowestservice temporary employee in the zone aslong as there are still temporary employeesworking in the zone, if all temporaryassignments in zone are exhausted employeewill be placed on inactive status with noCompany-provided income or benefits (but remain eligible for additional jobopportunities for a period of time not toextend beyond the employee’s seniority or 18months, whichever is greater)

• If an employee fails to respond to notification of a joboffer at an out-of-zone facility or fails to elect one ofthe three options above, the employee will beterminated, the employee’s seniority will be broken,and the employee’s recall rights shall cease.

• To the extent practicable, employees on IndefiniteLayoff shall be provided early indications of potentialjob openings, in order to provide reasonable time fortheir consideration of such potential job opportunities


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Step 6 If openings still exist, the Company may place, at itsoption, surplus skilled trade persons into production jobs atfacilities where production openings exist. Placement ofsurplus skilled trade persons into production jobs underthese circumstances shall be accomplished in lowest-to-highest Company seniority order. Skilled trade personsmay be placed into production jobs regardless of whetheror not they have previously held production jobs within theCompany. A skilled trade person placed into a productionjob shall be paid at the applicable wage rate for theproduction classification. Skilled trade persons thus placedin production jobs shall retain their applicable rights toreturn to skilled trade jobs for which they are qualified (bypreviously held skilled classifications and/or UAW-Fordsponsored reskilling efforts).

Step 7 An applicant availability list shall continue to bemaintained monthly for each plant. A plant after exhaustingits recall list (or in the case of a multi-plant location, acommon recall list if one exists) shall fill its hiringrequirements as determined by the National Job Security,Operational Effectiveness and Sourcing Committee.

NON-SKILLED PREFERENTIAL PLACEMENT HIERARCHY ADMINISTRATION:

1. It is recognized that the Company has to maintain ability topromptly fill employment requirements and assure thatpersonnel are capable of performing jobs. Accordingly, theCompany shall endeavor to place applicants in seniority order,consistent with their prior job experience. It is understood thatplacement on the basis of seniority will not be feasible in everyinstance. However, where deviations are contemplated,particularly with respect to evaluation of employment records,the circumstances shall be discussed in advance with the LocalUnion and disputes shall be subject to immediate appeal to theCompany’s Labor Affairs Office and the UAW’s National FordDepartment for resolution. In those instances wherepreferential placement applicants are not offered employmentopportunities, in line with their seniority, based on an


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evaluation of their employment records, the parties haveagreed to a process which provides for a joint review of suchcases, by representatives of the Company’s Labor AffairsOffice and the UAW’s National Ford Department, to determinethe appropriate remedial action. This process is intended toprovide a fair evaluation to employees, while concurrentlyrecognizing the parties’ joint commitment to quality andefficiency of operations. It is further understood that whenpreferential placement applicants are available for placement,the Company will not hire new employees for either temporaryor permanent positions, without the approval of the UAW’sNational Ford Department.

2. If employees, who are selected for preferential placementopportunities outside of their zone, are given a re-employmentphysical examination, such examination shall be given at theplant in which they have basic Unit seniority or if such plant isclosed, at another designated plant within the same zone. Incases where this procedure is impractical because of unusualcircumstances, alternative procedures may be established tocover such cases by mutual agreement between the Company’sLabor Affairs Office and the UAW’s National FordDepartment.

3. Employees placed in a new plant shall have seniority in thatplant in accordance with Article VIII, Section 1(c) of theAgreement. In the event of a subsequent layoff, suchemployees shall be covered by the terms of Article VIII,Section 1(b) of the Agreement.

4. Employees that voluntarily apply for available in-zone or out-of-zone opportunities will be considered in seniority order.

5. Ford Service Date will be used to determine placement foremployees in production classifications. In the case of a tie, theemployee whose last four digits of their social security numberis the greatest will be determined to have the greater seniority.

6. In a zone in which In-Progression employees are employedand a workforce reduction occurs within that zone, whichcould result in the layoff of Legacy employees, the Companywill place those surplus Legacy employees into jobs held


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by In-Progression employees; thus bumping those In-Progression employees to layoff. If there are multipleopenings in zone, the surplus employees will be canvassedfor their preference in placement opportunities.

SKILLED PREFERENTIALPLACEMENT HIERARCHY

Step 1 When a skilled manpower need is identified at a facility;a) A combined list of employees with rights to that

facility will be developed and include:

• Employees in the requested trade on IndefiniteLayoff

• Employees in the requested trade on temporaryassignment

• Employees in the requested trade working inproduction

• Employees in the requested trade on no-pay/no-benefits status

Employees on this list will be considered in seniorityorder (Date of Entry), and then will be canvassed forplacement in seniority order (Date of Entry).

b) If openings still exist, employees who have Returnto Basic Unit (RTBU) rights to the hiring facility inthe requested trade will be advised of availableopportunities via RTBU canvass for voluntarytransfer. Once authorized by the Company’s LaborAffairs Office, Local Hourly Personnel Offices atthe impacted locations will begin the canvassopportunities for the eligible employees.

Step 2 If openings still exist, skilled trade persons with recallrights to the requested trade working in production at thehiring facility with recall rights to another facility, will berecalled in Date of Entry order until the need is filled.


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Step 3 If openings still exist, in-zone employees who are onIndefinite Layoff and/or defined as surplus will be advisedof available in-zone posting opportunities for voluntarytransfer. Once authorized by the Company’s Labor AffairsOffice, Local Hourly Personnel Offices at the in-zonelocation(s) will post a notice for volunteers. Eligiblevolunteers are:

• Employees in the requested trade on Indefinite Layoff• Employees in the requested trade defined as surplus• Employees on active rolls in the requested trade and

are currently working at a facility with employees onIndefinite Layoff or defined as surplus

• Closed Plant Return to AreaAll active volunteer transfers will be limited to the numberof skilled employees in the requested trade on IndefiniteLayoff or defined as surplus at that location.

If the in-zone opportunities have not been filled, theopenings will be filled through the mandatory transfer ofin-zone employees on Indefinite Layoff or those defined assurplus.

Mandatory placement of these employees will beaccomplished according to lowest-to-highest seniorityorder (Date of Entry):• Skilled Trade employees on Indefinite Layoff• Skilled Trade employees on temporary loans• Skilled Trade employees working in production

Step 4 If openings still exist, out-of-zone employees in therequested trade who are on Indefinite Layoff and/or definedas surplus, and “active” employees in the requestedtrade at out-of-zone facilities with employees onindefinite layoff will be advised of available out-of-zoneposting opportunities for voluntary transfer. Onceauthorized by the Company’s Labor Affairs Office, LocalHourly Personnel Offices at the out-of-zone location(s) willpost a notice for volunteers. Eligible volunteers areemployees on Indefinite Layoff, those defined as surplus,and employees who are on active rolls and are currently


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working in the requested trade at the eligible facility.Volunteers will be limited to the number of skilledemployees in the requested trade on Indefinite Layoff ordefined as surplus at that location.

Step 5 If openings still exist, employees in the requested trade willbe extended a job offer according to the provisions outlinedbelow:

The intent of this provision is to ensure that themandatory decision regarding out-of-zone transfers ispresented to the lowest–seniority JSP-eligible employeein the requested trade -- active or on Indefinite Layoff –in a zone with surplus. To simplify administration ofthis provision, out-of-zone offers are to be extended bylowest to highest seniority in zones with surplus untilthe openings are filled or the surplus is exhausted. In-zone backfills resulting from this process are to befilled by placing the lowest seniority surplus in-zoneemployees in openings. If there are multiple openings inzone, the surplus employees will be canvassed for theirpreference in placement opportunities.• If an employee in the requested trade, with the

exception of skilled trades working in production,is extended any job offer at an out-of-zone facility, theemployee must elect one of the following options:

1) Accept the job offer and report to work at theout-of-zone facility

2) Decline the job offer; active Skilled Tradeemployees who decline the job offer mayelect to transfer to a production (non-skilled)classification and maintain their Date ofEntry with recall rights to their skilledclassification; active, declared surplus,or laidoff Skilled Trade employees who decline the


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job offer will be placed on inactive status withno Company-provided income or benefits (butremain eligible for additional job opportunitiesfor a period of time not to extend beyond theemployee’s seniority or 18 months, whicheveris greater)

• If an employee fails to respond to notificationof a job offer at an out-of-zone facility or failsto elect one of the two options above, theemployee will be terminated, the employee’sseniority will be broken, and the employee’srecall rights shall cease.

• To the extent practicable, employees onIndefinite Layoff shall be provided earlyindications of potential job openings, in orderto provide reasonable time for theirconsideration of such potential jobopportunities

Step 6 If openings still exist, the Company will discuss with theUAW the feasibility of reskilling surplus trades or utilizingapprentices. If it is not feasible, the Company will proceedwith direct hiring.

Step 7 An applicant availability list shall continue to bemaintained monthly for each plant. A plant after exhaustingits recall list (or in the case of a multi-plant location, acommon recall list if one exists) shall fill its hiringrequirements as determined by the National Job Security,Operational Effectiveness and Sourcing Committee.

SKILLED PREFERENTIAL PLACEMENT HIERARCHY ADMINISTRATION:

1. It is recognized that the Company has to maintain ability topromptly fill employment requirements and assure thatpersonnel are capable of performing jobs. Accordingly, theCompany shall endeavor to place applicants in seniority order,consistent with their prior job experience. It is understood thatplacement on the basis of seniority will not be feasible in every


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instance. However, where deviations are contemplated,particularly with respect to evaluation of employment records,the circumstances shall be discussed in advance with the LocalUnion and disputes shall be subject to immediate appeal to theCompany’s Labor Affairs Office and the UAW’s National FordDepartment for resolution. In those instances wherepreferential placement applicants are not offered employmentopportunities, in line with their seniority, based on anevaluation of their employment records, the parties haveagreed to a process which provides for a joint review of suchcases, by representatives of the Company’s Labor AffairsOffice and the UAW’s National Ford Department, to determinethe appropriate remedial action. This process is intended toprovide a fair evaluation to employees, while concurrentlyrecognizing the parties’ joint commitment to quality andefficiency of operations. It is further understood that whenpreferential placement applicants are available for placement,the Company will not hire new employees for either temporaryor permanent positions, without the approval of the UAW’sNational Ford Department.

2. If employees, who are selected for preferential placementopportunities outside of their zone, are given a re-employmentphysical examination, such examination shall be given at theplant in which they have basic Unit seniority or if such plant isclosed, at another designated plant within the same zone. Incases where this procedure is impractical because of unusualcircumstances, alternative procedures may be established tocover such cases by mutual agreement between the Company’sLabor Affairs Office and the UAW’s National FordDepartment.

3. Employees placed in a new plant shall have seniority in thatplant in accordance with Article VIII, Section 1(c) of theAgreement. In the event of a subsequent layoff, suchemployees shall be covered by the terms of Article VIII,Section 1(b) of the Agreement.

4. In instances where it is determined that these arrangements aresubject to being utilized for purposes beyond the intent of theparties, modifications may be made by mutual agreement


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between the Company’s Labor Affairs Office and the UAW’sNational Ford Department.

The preferential placement arrangements covered by thisappendix have potentially complex administrativeimplications. The Company at times may not be able to fullyconform with these provisions, and accordingly, shall not beliable for back pay on any claims arising from theiradministration with the remedy for any violation limited tofuture placement opportunities for aggrieved employees. It isunderstood that if the aggrieved employee is adjudged by theCommittee to have a valid claim for in-zone consideration,he/she will be offered an available opening within two weeksof such decision; if no such opening develops, he/she will beoffered the opportunity to bump a junior employee in-zone, asdetermined by the Committee.

ATTACHMENT A

PREFERENTIAL PLACEMENTZONE ALIGNMENT

Zone 1 Michigan – West SideFlat Rock AssemblyBrownstownDearborn Engine (Rouge Site)Dearborn Stamping (Rouge Site)Dearborn Diversified Mfg. (Rouge Site)Dearborn Truck Plant (Rouge Site)Dearborn M&C/Transportation Unit (Rouge Site)Dearborn T&D Unit (Rouge Site)Dearborn Research & Engineering (R&E)Detroit Parts / HVCLivonia TransmissionMichigan Assembly – Body Stamping UnitMichigan Assembly – Final AssemblyNational PartsNew Model Product Development Center (Pilot Plant)RawsonvilleWoodhaven ForgeWoodhaven Hot Metal Forming

Zone 2 Michigan – East SideHighland ParkMichigan Proving GroundsRomeo EngineSterlingVan Dyke Transmission

Zone 3 New York HVCZone 4 Ohio – Cleveland Area

Cleveland Engine #1Ohio Assembly

Zone 5 IllinoisChicago AssemblyChicago Stamping

APPENDIX N ATTACHMENT A

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Zone 6 Kansas CityKansas City AssemblyKansas City HVC

Zone 7 Louisville AreaLouisville AssemblyKentucky Truck

Zone 8 Twin CitiesTwin Cities HVC

Zone 9 Atlanta HVC

Zone 10 Ohio-SharonvilleSharonville

Zone 11 Ohio – Lima Engine

Zone 12 Buffalo Stamping

Zone 13 Denver HVC

Zone 14 Fort Worth HVC Zone 15 Greensboro HVCZone 16 Hartford HVC Zone 17 Houston HVC Zone 18 Lakeland HVC Zone 19 Memphis HVC Zone 20 Ontario HVC Zone 21 Portland HVC Zone 22 Sacramento HVCZone 23 Washington DC HVC Zone 24 Indianapolis HVC

APPENDIX N ATTACHMENT A

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ATTACHMENT B

MULTI-PLANT EMPLOYMENT LOCATIONS

Employment Location Facilities Covered

Rouge Area Units Central LabDearborn EngineDearborn Diversified Manufacturing Dearborn StampingDearborn Tool & DieDearborn TruckPower Utility & CentralMaint. Opns.Transportation &Technical ServiceVehicle Service CenterWorld Headquarters Grounds

Research & EngineeringCenter Eng. Mfg. Devel. Ops (EMDO)

NMPDC (Local 245)NMPDC (Local 931)R&E Admin. GarageR&E Central StaffResearch &Innovation Center (RIC)Site Management Opns.

APPENDIX N ATTACHMENT B

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ATTACHMENT C

PLACEMENT HIERARCHY

Non-Skilled Preferential Placement Hierarchy

ADMINISTERED BY THE HIRING LOCATION:STEP 1 a) IN-PLANT RECALL LIST

• A combined seniority list to include employeeswho are on indefinite layoff (ILO), and are on nopay/no benefits status and have rights to the hiringfacility shall be canvassed for placement.

• Legacy employees (hired or rehired prior toNovember 19, 2007) who bumped In-Progression employees in-zone as a result of aworkforce reduction

b) RETURN TO BASIC UNIT RIGHTS ELIGIBLEEMPLOYEES

• Eligible employees with Return to Basic UnitRights

ADMINISTERED BY EMPLOYMENT SECURITY PROGRAMS,LABOR AFFAIRS OFFICE:

STEP 2 COMBINED IN-ZONE PREFERENTIALPLACEMENT LIST

– In-Zone Posting Process offered voluntarily; • Employees on Indefinite Layoff • Active Employees at locations with employees on

Indefinite Layoff • Employees defined as surplus • Closed Plant Return To Area – Mandatory Placement

APPENDIX N ATTACHMENT C

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STEP 3 COMBINED OUT-OF-ZONE PREFERENTIALPLACEMENT LIST

– Out-of-Zone Posting Process • Employees on Indefinite Layoff • Employees defined as surplus • Active Employees at locations with employees

on Indefinite Layoff or defined as surplusSTEP 4 SKILLED TRADES VOLUNTEERS FOR NON-

SKILLED (PRODUCTION) OPENINGS

STEP 5 FORMAL JOB OFFERS TO OUT-OF-ZONEEMPLOYEES

• Mandatory job offers to lowest seniority employeesin a zone with surplus

STEP 6 IN-ZONE SKILLED TRADES EMPLOYEES STEP 7 REHIRE-NEW HIRE • Rehires are considered before hiring new employees

Skilled Preferential Placement HierarchyADMINISTERED BY THE HIRING LOCATION:

STEP 1 a) IN-PLANT RECALL LIST

• A combined seniority list to include employees inthe requested trade who are on indefinite layoff(ILO), temporary assignment, working inproduction, or are on no pay/no benefits status andhave rights to the hiring facility shall be canvassedfor placement.

b) RETURN TO BASIC UNIT RIGHTS ELIGIBLEEMPLOYEES

• Eligible employees with Return to Basic UnitRights

APPENDIX N ATTACHMENT C

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ADMINISTERED BY EMPLOYMENT SECURITYPROGRAMS, LABOR AFFAIRS OFFICE:

STEP 2 SKILLED WORKING IN PRODUCTION

• Skilled trade persons with recall rights to therequested trade working in production at the hiringfacility with recall rights to another facility will berecalled in Date of Entry order until the need is filled

STEP 3 COMBINED IN-ZONE PREFERENTIALPLACEMENT LIST

– In-Zone Posting Process offered voluntarily;• Employees in the requested trade on IndefiniteLayoff

• Employees in the requested trade defined assurplus

• Active Employees in the requested trade atlocations with employees on Indefinite Layoff ordefined as surplus

• Closed Plant Return To Area– Mandatory Placement

STEP 4 COMBINED OUT-OF-ZONE PREFERENTIALPLACEMENT LIST– Out-of-Zone Posting Process• Employees in the requested trade on IndefiniteLayoff

• Employees in the requested trade defined assurplus

• Active Employees in the requested trade atlocations with employees on Indefinite Layoff ordefined as surplus

STEP 5 FORMAL JOB OFFERS TO OUT-OF-ZONEEMPLOYEES

• Mandatory job offers to lowest seniority employeesin the requested trade in a zone with surplus

STEP 6 CONSIDER RESKILLING SURPLUS TRADES ORUTILIZING APPRENTICES

STEP 7 REHIRE-NEW HIRE

APPENDIX N MEMORANDUM OF UNDERSTANDING —PREFERENTIAL PLACEMENT ARRANGEMENTS

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APPENDIX O

MEMORANDUM OF UNDERSTANDING RETURN TO BASIC UNIT

The parties recognize that some employees placed in a plant mayhave the desire to return to their “home” plant or Basic Unit or, inthe case of employees from closed locations, to return to otherplants in the same zone as their Basic Unit. The parties recognizealso that, in affording such employees the opportunity to return, itis necessary to do so in a manner consistent with the maintenanceof quality and efficiency in both the releasing and accepting plants.Accordingly, the purpose of this Agreement is to provide methodsand procedures and to detail the circumstance whereby eligibleemployees will be offered the opportunity to return to their BasicUnit or, in the case of employees from closed locations, to return toother plants in the same zone as their Basic Unit.

1. Eligible employees are those active employees who have beenassigned, subsequent to October 24, 2011, to a plant other thantheir Basic Unit pursuant to the provisions of Appendix N, orother special placement programs. Employees who havetransferred among plants where local agreements allowemployees to be placed in a plant other than their Basic Unitare not eligible for transfer under this provision. ActiveEmployees who have voluntarily transferred to a permanentjob opportunity within the same zone terminate their seniorityto all other facilities. Employees who transfer to a permanentjob opportunity outside of their current zone will maintaintheir Basic Unit so long as they do not take the enhancedrelocation moving allowance.

2. In-Progression employees will be eligible for Return toBasic Unit (RTBU) rights under Appendix O upontransferring to an out-of-zone location so long as they donot take the enhanced relocation moving allowance.Additionally, after four years of seniority; they will becomeeligible for in-zone RTBU rights under Appendix O.

3. Eligible employees will automatically be considered toreturn to the plant which is their Basic Unit or, in the case of

APPENDIX O MEMORANDUM OF UNDERSTANDINGRETURN TO BASIC UNIT

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employees from closed locations, to return to other plants inthe same zone as their Basic Unit. Local management isresponsible for communicating this process to employees.Copies of acceptances and declines will be forwarded to theNational Ford Department.

4. Employees placed in-zone or out-of-zone subsequent to theEffective Date of the Agreement will be eligible to return totheir Basic Unit as set forth below. Such employees shall beplaced (in seniority order) on a “return home” list at the plantwhich is their Basic Unit. Employees will be surveyed forReturn to Basic Unit opportunities in seniority order. Anemployee (in-zone and out-of-zone transfers) will not beeligible for Return to Basic Unit opportunities prior to sixmonths from the date on which the employee is transferred toa plant other than their Basic Unit. A separate list ofemployees from closed locations who have applied to returnto the zone of their Basic Unit will be maintained by theLabor Affairs Office and the National Ford Department.

5. Each facility will maintain an applicant listing for use by thelocal parties.

6. Should a Ford Motor Company plant with a “return home”list have employment requirements, it will combine its“return home” list and recall list (if any) in seniority orderand recall from such combined list until its needs are met orsuch combined list is exhausted. Should the combined list beexhausted and additional employment required, it will fillfurther openings in accordance with the provisions of thismemorandum and other applicable agreements between theparties and then by hire or rehire. However, employees fromclosed locations will be returned to available work at otherplants in the same zone as their Basic Unit in accordancewith the Placement Hierarchy, Appendix N, Attachment C.

7. Should an employee return to their Basic Unit or, in the caseof employees from closed locations, to a plant in the samezone as the employee’s Basic Unit, under the provisions ofparagraph 5 above, the employee will retain no seniorityrights at the “releasing” plant. Should an employee on theReturn to Basic Unit list, as described under paragraph 3


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above, subsequently refuse an offer of return, the employeeshall be offered no other rights under this Memorandum.

8. The provisions of this Memorandum will have no impact onthe application of Article VIII, Section 1(b) of the CollectiveBargaining Agreement. 8.

9. It is recognized that the plant from which the eligibleemployee is released must do so in a manner consistent withthe maintenance of quality and efficiency. Accordingly, noeligible employee will be released until a fully trainedreplacement is available. Consistent with these principles, itis recognized that the rate at which employees are releasedmay vary due to the types of jobs held by “returnees”, theavailability of replacement personnel, product or new modellaunch, releasing plant staffing requirements, etc. Wherepossible, Management will endeavor to release employeeswithin 30 days provided the location has the flexibility toemploy a provisional workforce. Disputes regarding thisissue may be immediately referred to the Company’s LaborAffairs Office and the UAW’s National Ford Department forresolution. Division and Operations Labor Relationspersonnel will be re-advised of the importance of promptrelease of returning employees.

10.Employees transferring pursuant to the provisions of thisMemorandum will be eligible for moving allowancesprovided by Article IX, Section 28(b) of the CollectiveBargaining Agreement on the same basis as a laid offemployee. Such employee also, upon acceding to their homeplant will be placed on available work and will not be eligibleto alter the vacation schedules in effect at the time of theirreturn.

11.The parties recognize that the provisions of thisMemorandum have complex administrative implications.Accordingly, claims of violation are not subject to theGrievance Procedure (Article VII of the CollectiveBargaining Agreement) but instead may be resolved throughthe Appeal Procedure to the National Job Security,Operational Effectiveness and Sourcing Committee.


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APPENDIX P

UAW-FORD MEMORANDUM OF UNDERSTANDINGADVANCED MANUFACTURING/PRODUCT

INTELLIGENCE AND SOURCING

The Company will work with and assist the Union at both the Localand International levels to preserve jobs, replace jobs which may belost by outsourcing action, and to create jobs for Protectedemployees in the Job Security Program (JSP) and laid offemployees. It is an objective of the Union and the Company to growthe business and to continue to rely upon its employees andfacilities as the source of its products. In order to achieve such anobjective, however, it is imperative that the parties mutuallyembrace and continually enhance the precepts long established byother joint forums, such as Continuous Improvement and Quality.Only through the exhaustive efforts of both parties will the Unionand the Company be able to establish and sustain the highest levelsof efficiency, productivity, and quality that are necessary to remaintruly competitive in the automotive marketplace and provide thelevel of job security that both parties desire.

During the term of the 2015 Agreement, the Company will advise,in writing, the Union members of the Sourcing group of themonthly Sourcing Council meeting results, including the number ofpotential jobs affected. Additionally, data regarding work broughtin-house and work outsourced will be given to the InternationalUnion in a monthly meeting. (The Company will provide this datato the International Union via email or on a computer disk, and tothe impacted local parties, via email, reflecting their individualplant status). In this manner, the parties can judge the success ofmutual efforts toward improved job security. The Company furtheragrees to address its sourcing during the 2015 Agreement, inaccordance with the guidelines herein.

The rationale for sourcing actions will consider the criteria ofquality, technology, cost, timing, statutory requirements,occupational and related environmental health and safety issues, theimpact on long-term job stability, the degree to which theCompany’s resources can be allocated to further capital

APPENDIX P UAW-FORD MEMORANDUM OF UNDERSTANDINGADVANCED MANUFACTURING AND SOURCING

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expenditures, the overall financial stability of affected facilities, andthe impact on related UAW-Ford facilities. Other factorsconsidered by the Company before a final sourcing decision ismade will include the effect on employment, job and incomesecurity costs, on both a short and long-term basis, and Companyassets and their utilization (see Volume IV, Sourcing – StandardizedFinancial Form). The National parties will jointly further developthe above criteria to be used to address sourcing issues. Indeveloping financial criteria appropriate Corporate return oninvestment and burden will be considered. Pertinent criteria will beapplied consistently in comparisons of internal and external supplycapability.

In addition, the following specific commitments have been made toaddress sourcing-related job security concerns of UAW members:

1. Implementation of Appendix Pa. National Job Security, Operational Effectiveness and

Sourcing Committee (NJSOESC)

The parties have agreed to create a National Job Security,Operational Effectiveness and Sourcing Committee(NJSOESC), comprised of Company and Unionrepresentatives including the Vice President and Directorof the National Ford Department and a senior member ofLabor Affairs. With respect to sourcing, the NJSOESCwill be responsible to implement any training during theterm of the 2015Agreement. The parties agreed to jointtraining on an annual basis and will workcollaboratively to develop such training as warranted.Expenses will be paid by Joint Funds. The partiesrecognize the value of materials available on thesourcing website and agreed that modifications maybe made to the website by mutual agreement betweenthe parties during the term of the Agreement. TheNJSOESC is responsible for maintaining and updatingthe Sourcing Process Flow Charts. The NJSOESC alsowill monitor sourcing at the national level and addresssourcing concerns and their impact on the workforce. TheInternational Union and, where appropriate, the LocalUnion, will be provided full and timely access to all


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appropriate data, including financial information, that ispertinent to evaluate product competitiveness andcontemplated sourcing.

The appropriate member(s) of the NJSOESC will overseeand assist the Local Job Security, OperationalEffectiveness and Sourcing Committee (LJSOESC) inimplementing the parties’ objectives. If the parties cannotresolve a sourcing issue, the Local Union may file agrievance at the second step of the regular GrievanceProcedure.

b. Local Job Security, Operational Effectiveness andSourcing Committee (LJSOESC)

The parties have agreed that a Local Job Security,Operational Effectiveness and Sourcing Committee(LJSOESC), will consist of equal members of Companyand Union representatives including, for the Company,the Plant Manager/Parts Distribution Center Manager,Controller/Office Operations Manager, Human ResourcesManager or Labor Relations Supervisor, and othermanagement representatives as designated by the PlantManager/Parts Distribution Center Manager; and, for theUnion, the Plant Chairperson, the Local Union President,if he/she so elects, Bargaining Committeepersons, thelocal UAW Job Security Representative, and other localUnion representatives as designated by the PlantChairperson. A regular meeting will be scheduled andboth parties may agree to withdraw the meeting ifthere are no topics for discussion. With respect tosourcing, the LJSOESC will monitor sourcing at the locallevel, including review of all market test and outsourcingnotices, and address sourcing concerns and their impacton the workforce utilizing the Sourcing Process FlowCharts provided by the NJSOESC.

2. InsourcingThe NJSOESC and, where appropriate the LJSOESC, willdiscuss the practicality of insourcing, in whole or in part, workpreviously outsourced or new work which the Union identifies

as that which might be performed competitively within thelocation based on the criteria outlined above.

To assist in this process, the Company will provide, on anannual basis, an electronic file of current information related tothe vehicle sourcing patterns for the assembly and componentsof vehicles manufactured and sold in North America, and willupdate the information as changes occur to the make/buypattern. The file will be delivered electronically to the UAWNational Ford Department Advanced Manufacturing/ProductIntelligence and Sourcing Coordinator(s).Upon request of the Union, the assessment of the cancellationcost associated with discontinuing a sourcing agreement withan outside supplier will be provided to the Union as soon aspracticable, but in no event later than 30 days from the initialdate of request.

If the Union, at either the Local or National level, identifieswork that it believes it can perform competitively inaccordance with the criteria outlined above, it may utilizeavailable resources to submit a business case in writing to theCompany on a template to be agreed upon by the parties. If thebusiness case is based upon cost, the Union is to complete andattach the Standardized Financial Form. The business case is tobe signed by the LJSOESC and the UAW National FordDepartment Sourcing Coordinator(s). The Union, thereafter,will present its proposal to the applicable Company decision-making party/parties.

If it is established that certain work can be performedcompetitively, judged by the above criteria, Management willadopt the Committee’s proposal and, barring unique orunforeseen circumstances, bring the work in-house. The Unionshall thereafter obtain any necessary approval or ratificationwithin 30 days of the decision to bring the work in-house.

3. Temporary InsourcingWhen temporary insourcing from an outside supplier is beingconsidered, the Company will provide to the Chairperson ofthe Local Union a written notice containing the reason(s) forthe temporary action and the length of time that the work is


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estimated to remain inside. A copy of the notice will beprovided to the National Ford Department and Labor Affairs.A temporary insourcing action is not to exceed 12 months,unless agreed upon by the parties, and will not require writtenmarket test or outsourcing notification when the Companysubsequently moves the work to an outside supplier. In theunlikely event that a temporary action exceeds 12 months, orthe extension to the 12-month period as agreed upon by theparties, the work will be subject to written outsourcingnotification as contained in the provisions of thismemorandum.

4. OutsourcingOutsourcing as used herein means the Company’s sourcing ofwork from UAW employees covered by this Agreement,including work connected with current, new or redesignedvehicles, fabricated parts, powertrain, and componentproducts.

The Company will establish fair and consistent guidelines forconducting market tests to allow both internal and externalorganizations to bid on work. Such guidelines will bepublished and communicated to Company Buyers and theInternational Union. Prior to a market test being initiated, theInternational Union and the Local Union at the affectedlocation(s) will be notified in writing by the Company. At suchtime, the LJSOESC will meet to discuss the reason(s) for themarket test. The written notification letter, among other things,will identify the sponsoring activity and the potential suppliersbeing asked to participate in the market test. Copies of theRequest for Quotation package, along with a list of thesuppliers that have been identified to participate in the markettest, will be sent to the Local Job Security Representative ofthe affected location(s) four days in advance of copies beingsent to external supplier(s). The Local Job SecurityRepresentative will have the responsibility to share thepackage with the other members of the LJSOESC. Followingreceipt of the request for quotation package (or writtennotification in the rare case where a quotation package is notutilized), the LJSOESC will have the opportunity to jointly


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develop a plan to perform the work competitively, judged bythe criteria listed earlier in this Appendix. As required, theSourcing Authority, or other Company activities involved inthe sourcing decision-making process, will assist and supportthe LJSOESC. The LJSOESC should utilize the StandardizedFinancial Form to jointly calculate the cost associated with thecomponent(s) being market tested. The local Union will beprovided full and timely access to all appropriate data,including financial information that is pertinent to evaluateproduct competitiveness and the potential effect of thesourcing action. The Company will complete the market testwithin six months from the initial notice to the Union. Whenthis six-month period expires, the market test will beconsidered closed and no further activity related to theproduct(s) covered by the notice will occur unless the Unionhas been notified by way of a re-issued market test letter.

In circumstances where early supplier involvement isnecessary because there is insufficient information to conducta market test or make a sourcing decision based on traditionalselection criteria, a non-traditional selection process, e.g.,design competition, may be utilized. When this process isused, the Company will discuss such process in advance withNFD-UAW representatives.

At such time as the sponsoring activity has received the resultsof a market test (or a similar point in the sourcing processwhen a market test is not applicable, e.g., design competition)and an outsourcing decision is contemplated, the InternationalUnion and the Local Union will be given written notice. Thenotice shall be provided to the Union as far in advance aspossible or promptly following Sourcing Council approval,and consistent with the timing requirements of the GlobalProduct Development System (GPDS). The notice willprovide, on a confidential basis, the reason for the outsourcing,a description of the work involved, the impact on theworkforce including identification of any offsetting insourcedwork, when applicable, the identification of the sourcingauthority, the quality status of the recommended supplier, anda copy of all data contained in the financial analysis submitted


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to the Sourcing Council. The financial analysis shouldincorporate the costs jointly calculated by the LJSOESC, andthe other applicable Company activities, during the market testprocess.

a. When such an outsourcing decision is contemplated atany level of the Company, the written notice will be givento the Vice President and Director of the National FordDepartment. A copy of such notice will be given to theChairperson of the Unit Committee at the same time.

b. When such a contemplated outsourcing decision isinitiated by the Company at a level external to theaffected location(s), the Company will provide sufficientadvance written notice to allow the designatedManagement representative at the affected location(s) tocomply with the notification procedure.

c. Additionally, International Union and Local Union inputwill be sought by the Company as early as possible in theoutsourcing decision-making process. The intent of theevaluation period and Union input being sought as earlyas possible is to allow for more thorough discussion andto permit the parties to assess better the impact ofoutsourcing on the long-term job stability of employeesand the financial viability of given Company locations.

d. The Company will not enter into a contractualrelationship with a non-UAW-Ford supplier until suchtime as the designated Management representative of theaffected location provides written verification that theabove notification procedure and discussion by theLJSOESC has taken place.

A proposal to keep the work in-house will be made by theUnion within 90 days of the receipt of the written notice.Such proposal shall be in the form of a written businesscase and be signed by the LJSOESC and the UAWNational Ford Sourcing Coordinator(s). If the businesscase is based upon cost, the Union is to complete andattach the Standardized Financial Form. During suchtime, if the LJSOESC agrees, resources will be provided


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to jointly study the feasibility of reducing internaloperating costs in an attempt to keep the work in-house.The Union, thereafter, will present its proposal to theapplicable Company decision-making party/parties. If itis established that the work can be performedcompetitively, judged by the criteria listed earlier in thisAppendix, Management will, barring unique andunforeseen circumstances, keep the work in-house. TheUnion shall thereafter obtain any necessary approvals orratification within 30 days of the decision to keep thework in-house.

e. In cases where the Union believes that the decision by theCompany to outsource is improper, the Union may appealto the Executive Committee of the sourcing authority’sSourcing Council for further consideration. The appealshall be made by the Vice President and Director of theUAW National Ford Department through the Company’sExecutive Director of U.S. Labor Affairs. The Union’sappeal shall be made within the 90-day period describedin paragraph 4d above, and the Sourcing Council shallhear the appeal as soon as practicable.

Thereafter, if the Union so decides, it may appeal its casedirectly to the Umpire, in accordance with the Sourcing –Grievances letter of understanding.

f. The Company agrees to a full disclosure to theInternational Union of the procedures utilized in thesourcing decision-making process.

When a temporary outsourcing action is beingconsidered, the Company willmeet with the Chairpersonof the Local Union and provide written notice containingthe reasons it is considering the temporary outsourcing atthat facility, an estimated date the work will be returned,and provide status updates as required. The notice ofthe outsourcing action will be given as soon aspracticable, consistent with the reasons such outsourcingbecomes necessary. Copies of this notice also will beprovided to the National Ford Department. Labor Affairs


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and the National Ford Department will work togetherto improve compliance to the notification process.

5. Advanced Manufacturing/Product Intelligencea. Quarterly Meetings

Quarterly UAW-Ford Meetings will be continued withthe V.P. of Manufacturing to review Sourcing andAdvanced Manufacturing/Product Intelligence topics.Attendees will include UAW Assistant Director ofSourcing, UAW Assistant Director of AdvancedManufacturing/Product Intelligence, Director-LaborAffairs, Labor Affairs Sourcing Manager, and othersas deemed necessary. These reviews will includediscussions about insourcing plans, job creation, andoperational effectiveness opportunities at U.S.assembly, stamping, and powertrain plants. Inaddition, separate meetings will be scheduled toinclude twice per year reviews (by July 1st and January 1st) of the 5 year global cycle plans as they relateto U.S. plans for assembly, stamping and powertrain. Aconfidential summary of these plans which identify newor redesigned vehicles, subsystems or component partswill be provided to the Vice President and Director of theUAW National Ford Department or their designee.

b. Early UAW Involvement/Meetings To provide the Union full involvement at the earliest

stages of the decision-making process, the applicable

Company Vehicle Line Director, or his/her designatedrepresentative, at the Pre-Program Start (PPS) MilestoneMeeting, will inform the respective UAW AdvancedManufacturing/Product Intelligence Representative ofNew Major Vehicle Programs or Major RedesignedVehicles. Information discussed at this meeting willtypically include program objectives, major programmilestone dates, marketing objectives and customerrequirements, and potential assembly plant loading.Additionally, to provide access to the Powertraindecision-making process, the applicable PowertrainDirector, or his/her designated representative, will


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inform the respective UAW AdvancedManufacturing/Product Intelligence Representative ofNew Major Powertrain Programs or MajorRedesigned Powertrains.

c. Vehicle Program Overview Following the Pre-Program Start Milestone Meeting for

New Major Vehicle Programs/Major RedesignedVehicles, subsequent meetings (Program Overviews) willbe scheduled by the Company to review specific vehicle,subsystem or component plans. Chief NameplateEngineers will conduct such meetings. Typically, suchmeetings will cover vehicle objectives and targets,processes and timing, the sourcing pattern for assemblyand major components (including known or anticipatedchanges to existing sourcing patterns) and plans forprototypes.

d. Powertrain Plans Review Meeting Senior management from Powertrain Operations will

meet twice per year with the leadership of the UAWNational Ford Department to review 5 year globalPowertrain cycle plans as they relate to Powertrain plants.

e. Product Development It is imperative that sourcing discussions and notification

become an effective and trusted tool. It is recognized thatearly involvement by the UAW will greatly enhance thechances for mutual success and will not jeopardize theproduct development objectives of quality, speed tomarket, product innovation, and lower total cost.

The Company’s continuing objective is to furthercompress product development time frames and improvespeed to market. The timing for achieving productdevelopment milestone events will fluctuate dependingon the risk inherent in each product program. Therefore,future sourcing notification timing will vary uniquelywith each program on a case-by-case basis. Specificproduct development target dates will be disclosed at theProgram Start Milestone Meeting. The reality of variableprogram timing and ongoing system change dictates


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frequent and structured communication for effectivesourcing discussion and notification.

The product development cycle for New Major VehiclePrograms or Major Redesigned Vehicles will generallyrange from approximately 50 months before Job 1 forProgram Start, to approximately 36 months before Job 1for Program Overviews, to approximately 18 monthsbefore Job 1 for Program Approval. In the case of nichevehicles, it is understood that the product developmentcycle time could be condensed.

f. Meetings with OperationsUpon the request of the Union and submission of arelated agenda provided by the Union, the Companywill schedule subsequent meetings with ProgramManagement, the Manufacturing Business Office,Purchasing, Engineering and/or Operations Managers ortheir designated representatives to discuss issues ofconcern to the Union.

Further follow-up meetings will be scheduled as requiredat the request of either party.

The implementation of this process should provide the partiesthe mechanism to take advantage of every opportunity to useinternal resources.

The commitments expressed in this Memorandum ofUnderstanding are intended to contribute significantly to ourcooperatively working together to provide Ford MotorCompany employees in the United States improved jobsecurity by expanding the business.


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APPENDIX Q

MEMORANDUM OF UNDERSTANDING "BEST-IN-CLASS" QUALITY PROGRAM

The parties recognize that continuous improvement in the quality ofthe Company’s products and services to meet customer needs andvalues is essential to securing Ford’s long term success in the globalmarketplace and real job security for its UAW representedemployees.

For a number of years, the UAW, Ford Motor Company, and itsemployees, including those represented by the UAW, have workedtogether in a spirit of teamwork, cooperation and mutual interest toimprove product quality. These efforts have produced substantialresults. Ford and the UAW further recognize that local union andemployee support and involvement have been key elements of theprogress that has been achieved.

From the time the “Best-In-Class” Quality Program was establishedin 1987, the parties have worked toward achieving mutual goals andhave demonstrated the ability to take a problem solving approach toissues. The strengthening of this joint relationship has created ahighly successful program based upon a foundation of mutual trustand respect that assures all issues can be resolved on a day-to-daybasis. Therefore, this Memorandum and the “Local QualityRepresentative” Letter of Understanding are “living documents”permitting the parties to continuously improve, support and expandthe UAW-Ford “Best-In- Class” Quality Program outside thenormal collective bargaining process.

This Memorandum is an on-going agreement which will not expireconcurrently with the Collective Bargaining Agreement.Accordingly, the provisions of Article X, Section 10 and Article XI,Sections 2, 3 and 4 will not apply to this Memorandum ofUnderstanding or the “Local Quality Representative” Letter ofUnderstanding. The UAW-Ford National Quality Committee willprovide the overall coordination for the continuous improvement ofthis Program. The Committee will continually review and updatethe direction of the parties’ joint quality efforts, including internalProgram processes, and will make recommendations to the UAW-

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Ford Quality Improvement Steering Committee on a periodic basis.The Committee also will be responsible for communicating anychanges in the Program to Ford-UAW locations. Should either partybelieve it would be more appropriate for the “Best-In-Class”Quality Program to have an expiration date that coincides with thepresent Collective Bargaining Agreement, the party may submit thisrequest to the Vice President and Director of the UAW-FordDepartment and the Company’s Vice President Labor Affairs forreview and approval.

The structure and responsibilities within the “Best-In-Class”Quality Program are set forth below.

I. UAW-Ford Quality Improvement Steering CommitteeThe joint UAW-Ford Quality Improvement SteeringCommittee will continue to direct and expand the qualityimprovement activities of the UAW-Ford “Best-In-Class”Quality Program to support continuous improvement in theCompany’s products, services and processes, including:

• Review annual quality objectives, strategies, andindicators for the UAW-Ford “Best-In-Class” QualityProgram and for the Company Quality Operating System(QOS). The Committee will jointly develop measurablesto support the annual objectives and the QOS.

• Drive joint actions to improve quality of products,processes, and services.

• Conduct discussions concerning the Company’smanufacturing, assembly, and parts distribution facilities,as well as suppliers and dealers.

• Review and support joint exploration (includingconsideration of pilot efforts) of new and enhancedprocesses to improve quality of components and vehiclesproduced by Ford.

• Support the Company objective of producing “Best-In-Class” vehicles that meet or exceed expectations ofpresent and future customers.

• Create a work environment which allows the fullcontribution of each employee toward the achievement ofquality leadership by Ford.


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The Steering Committee will:• Be co-chaired by the Vice President, Manufacturing and

by the Vice President and Director of the UAW-FordDepartment and include an equal number of Union andCompany representatives designated by the respective co-chairpersons.

• Be supported by a full-time UAW-Ford National QualityCommittee to implement the provisions of the UAW-Ford“Best-In-Class” Quality Program and maintain liaisonwith operations working quality committees and localquality committees guided by a chartering processrecognizing that program design may vary among theorganizations involved.

• Review and have access to the Ford Motor CompanyGlobal Quality website for quality data and metric reportsincluding but not limited to: J.D. Powers, Global QualityResearch System (GQRS), Consumer’s Report,Analytical Warranty System (AWS), US Market ResearchSchedule, and The Customer Speaks.

• Oversee and provide for development of new UAW-Ford“Best-In-Class” Quality Program education and trainingthrough the Targeted Training process based uponspecific business needs.

• Review the activities and recommendations of theNational Quality Committee, plans for operations andfacility quality initiatives, and the results of local andnational quality actions.

II. UAW-Ford National Quality CommitteeA full time UAW-Ford National Quality Committee willcontinue to develop and recommend programs to the SteeringCommittee, provide feedback to that Committee, transformSteering Committee strategies into actions for implementationby the local quality committees, participate on operationsworking quality committees and assist local facility qualitycommittees.

The National Quality Committee will be co-chaired by anappointed representative of the Vice President and Director of


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the UAW-Ford Department and an appointed representative ofthe Global Vice President of Quality. The National QualityCommittee shall continue to be comprised of equal numbers ofrepresentatives from the Union and the Company. The Union’srepresentatives on the National Quality Committee will beappointed by the Vice President and Director of the UAW-FordDepartment.

The committee will support the chartering process byreviewing, updating, and cascading the annual chartersthrough each level of the Quality Governance Structure.The Quality charters will contain agreed to, enforceableelements required to support a “Best in Class” Qualityprogram such as a mission statement, roles andresponsibilities and quality operations and procedures.

III. UAW-Ford Operations Quality CommitteesPresently established operations quality committees willcontinue to function and their application and activities will beon a uniform basis to all operations with employees covered bythis Agreement.

These operations quality committees will continue to includerepresentatives of operating Management, the UAW-FordNational Quality Committee, and other Company and UAWrepresentatives as appropriate.

These committees will meet at least semi-annually, or morefrequently as they determine necessary, to discuss and reviewquality performance objectives and indicators concerning theoperations’ products and services and joint actions that couldbe taken to drive and support improvement. Other topics ofdiscussion or activities include:

• Transform the strategies from the UAW-Ford QualityImprovement Steering Committee into a roadmap andactions for implementation by the UAW-Ford LocalQuality Committees.

• Discuss quality matters in Vehicle Quality Reviews /Product Commodity Team Meetings, weekly operationsmeetings, and monthly Quality conference-calls.


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• Assure the Company and Union leadership’s commitmentto driving customer satisfaction, continuousimprovement, and full workforce involvement inachieving Best-In-Class Quality.

• Emphasize the importance of customer satisfaction in thequality improvement process.

• Review specific operations and local education andtraining needs to support continuous qualityimprovement, including specific tracking and monitoringof such training.

• Share information on Company, operations and facilitycompetitive quality positions including future goals forcontinuous improvement.

• Emphasize the importance of total involvement andcommitment of the entire workforce in qualityimprovement.

• Provide recognition and positive reinforcement for thequality improvement process.

IV. UAW-Ford Local Quality CommitteesFacility committees will be co-chaired by the facility managerand the unit chairperson. Other committee members willinclude the Facility Operating Committee, to include theProduct Vehicle Team (PVT) Manager or Product ResidentEngineer and Supplier Technical Assistance (STA) Residentand other representatives of local management as appropriate,the local union president (if he or she so elects), the Local UnitQuality Representative, the Employee Resource Coordinator,and other members of the unit committee designated by theunit chairperson.

These local committees will continue to meet at least monthly,or more frequently as they determine necessary. They mayagree to meet consistent with local Time and DataManagement processes. The unit quality representative andfacility quality manager will be responsible for coordinatingthe resolution of local quality committee matters and reportingthe results to the co-chairs of the local quality committeebetween scheduled meetings.


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The focus of these committees is to discuss and review qualityinformation and indicators concerning the facility’s productsand services and joint actions that could be taken to driveimprovement. Additionally, local committees will:

• Develop and implement local plans for qualityimprovement consistent with the objectives and strategiesdesignated by the UAW-Ford Quality ImprovementSteering Committee and the Operations QualityCommittees.

• Provide direction and support for the unit qualityrepresentative in the quality improvement process,including supporting the principle that all employees haveresponsibility for quality in their work.

• Assure that the quality representative has regular accessto the quality operating system management includingweekly meetings with the facility quality manager, or adesignated representative in that manager’s absence.

• Review internal processes and establish a system locallyto address vehicle concerns, with a goal of minimizing thequality representative’s involvement in this area.

• Assure that a process is in place to advise the qualityrepresentative of reworks and campaigns and to ensureproper communication with the affected employees.

• Establish a process locally that allows employees to raiseproduct quality concerns, make the necessary corrections,and stop the operation, when necessary. This processmust ensure that the concerns are immediately addressed,appropriate containment measures implemented, and theoperation restarted.

• Ensure the quality system addresses the hourly andsalaried employees’ role in the containment of non-conforming parts. The system will incorporate theresponsibility of these employees to contain non-conforming parts, the process for rejecting/releasing theparts and the communication plan to provide feedback tothe affected employees.


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• Monitor performance against quality objectives tosupport and maintain a continuous quality improvementprocess.

• Establish a mutually acceptable process for the unitchairperson and facility management to identify hourlyemployees to visit other facilities or suppliers, asappropriate, to resolve quality concerns.

• Establish teams of hourly and salaried employees,including the Local Unit Quality Representative, to workwith and visit outside suppliers to identify and resolvequality issues and concerns, as appropriate.

• Review local education and training needs to supportquality improvements.

• Integrate “Best-In-Class” Quality Program and otherquality improvement activities with employeeparticipation and other joint activities to address commonareas of interest and assure mutually supportiverelationships.

• Oversee the process to ensure that all scrap materials arepurged from the facility in an expeditious fashion.

• Review product launch progress and other engineeringchanges and ensure timely communication of appropriateinformation to affected facility employees. Exploreopportunities for greater hourly employee involvement inthe product launch process.

• Facilitate communication between product engineeringand work groups, ensuring necessary engineeringassistance as appropriate.

V. Local Unit Quality RepresentativeProvisions for a local unit quality representative, includingsuch topics as number, appointment, functions, trainingrequirements and other matters, are set forth in a separate letterof understanding.

The functions and responsibilities of the quality representativeinclude the following:


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• Participate on the local joint quality committee to handlejoint quality initiatives.

• Coordinate the resolution of local quality committeematters and reporting the results to the facility managerand building chairperson between scheduled meetings.

• Participate in product launch quality reviews.

• Investigate and close Quality Hot Line calls and QualityConcern Resolution cases.

• Participate in the development and implementation oflocal strategies to achieve facility internal and externalquality performance objectives.

• Participate on the facility team completing quality self-assessments.

• Participate in local Incoming Quality meetings, and onfacility teams of hourly and salaried employees toidentify and resolve quality issues and concerns withoutside suppliers.

• Assist in the preparation of quality performanceinformation and related material to be shared with UAWrepresented employees to enhance their understandingand support of facility quality initiatives.

• Verify compliance with QPS sheets when investigating aquality issue or customer concern.

• Participate in the development and implementation of jobrelated quality training.

• Maintain communication with the UAW-Ford NationalQuality Committee, and attend meetings as required bythe UAW-Ford National Quality Committee.

• Perform other functions associated with joint qualityinitiatives as may be required from time to time by mutualagreement of the Company and the Union.

VI. Quality Concern Resolution Process• The Company and Union recognize that it is in the best

interests of both parties to resolve employees’ productquality concerns as soon as possible, at the facility where


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they originate. This quality concern review process willoriginate at the location and may include review by theoperations quality committees and, if required, the UAW-Ford National Quality Committee.

• The UAW-Ford National Quality Committee will provideongoing coordination of this process, which will beindependent of the grievance procedure provided in theCollective Bargaining Agreement.

VII. Supplier Relationships• It is recognized the “Best-In-Class” quality principle of

“Working Together for Quality” includes the employees’relationships with all suppliers, both external and internal.It is the hourly and salaried employees’ responsibility toensure quality parts are used in the production of Fordvehicles, regardless of their manufacturing source.

• Accordingly, all suppliers will be responsible for theirquality performance (consistent with the SupplierCorporate Citizenship letter dated November 03, 2007).Additionally, the Company is responsible for theadministration of policies consistent with the provisionsset forth in the Q1 2nd Edition. The National QualityCommittee will have timely access to the list of suppliersthat have been placed on Q1 probation or had their Q1status revoked and may visit outside supplier locations inconjunction with the Ford on-site Supplier TechnicalAssistance Engineer. If issues arise with the ability toaccess an outside supplier facility, the National QualityCommittee will work through the Supplier TechnicalAssistance Manager to address the concern. Further, theUAW-Ford National Quality Committee shall be affordedperiodic meetings as needed with Supplier TechnicalAssistance/Purchasing and the various operations toobtain information on supplier improvement processesand discuss outside supplier concerns.

VIII.Customer Satisfaction Activities• Building upon our significant long-term efforts and

progress in improving product quality, the UAW and theCompany agree to discuss alternative means of utilizing


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consumer insights and feedback to improve customersatisfaction. Joint activities to support this objective willbe the subject of ongoing discussion between the Unionand the Company.

• The parties agree to continue to utilize local dealer panelswhere mutually agreeable, whereby, after appropriateorientation and training, the National Ford Departmentand local union offices may communicate with theCompany’s customer services activities on customerconcerns and other quality matters. Such local VehicleConcern Service Resolution Process/dealer panels will beaffiliated with and under the jurisdiction of the UAW-Ford National Quality Committee. In addition, the UAW-Ford National Quality Committee will utilize a multi-stepprocedure for Company locations to follow to resolveemployee vehicle complaints, where no dealer panelsexist. Members of the UAW-Ford National QualityCommittee will visit each facility to communicate thenew procedure, and make recommendations, asappropriate.

• The parties also agree that it continues to be important toimprove communication among representatives of theUnion, the Company, and the dealers on issues ofcommon concern regarding the achievement of theirrespective quality objectives. As a key step in achievingand maintaining this level of communication, the partiesagree that Ford Motor Company will continue to seek tohave the Vice President and Director of the UAW-FordDepartment invited to meet with the officers of the Fordand Lincoln Dealer Councils. The Steering Committeemay develop other appropriate quality relatedcommunications or actions for discussion with the DealerCouncils.

IX. Other Matters• The Company and the UAW reaffirms support of certain

quality promotional activities to increase employee andconsumer quality awareness and recognize employeecontributions in product and service quality


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improvements. Opportunities could include auto shows,certain sporting venues, community activities, andcharitable events where mutually agreeable and beneficialto UAW-Ford employees, subject to verification byappropriate market research in those cases wherecustomer contact and other marketing and advertisingconsiderations are involved.

• Further, the Company continues to acknowledge thesupport of the UAW National Ford Department, localunions and UAW represented employees in various waysin advertising campaigns, the introduction of certain newproducts, and other similar activities which likewise haveproven to be mutually beneficial. Accordingly, theCompany intends to continue to provide similaropportunities in the future.

• A generic Joint quality decal or sticker will be affixed toUAW built vehicles indicating that these products wereproudly built by UAW-Ford members. This decalsignifies the UAW’s commitment to the improvement ofFord Motor Company product quality. The UAW-FORDNational Quality Committee will continue to be theprovider of these decals/stickers.

• The UAW-Ford National Quality Committee will use anassessment tool, including a coaching document, to assessthe effectiveness of Local Quality Committees forconformance to Appendix Q. Self assessments will beconducted in conjunction with the QOS assessmentprocess.

• The UAW-Ford National Quality Committee willdesignate Targeted Training Single-Point Lessons to beincluded in the New Employee Orientation Program fornew employees.

• The UAW-Ford National Quality Committee will developTrain-the-Trainer Modules for QOS updates as required.

• The UAW-Ford National Quality Committee, therespective Operations Quality Offices, and the Local


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Quality Committees will conduct Quality communicationand training based on resource specific business needs.

• The UAW-Ford National Quality Committee shall receiveadvance notification of field service actions.

X. Funding• Funding for program development and agreed upon

training programs in support of this Memorandum ofUnderstanding and the UAW-Ford “Best-In-Class”Quality Program will continue to be provided by theUAW-Ford Education, Development and TrainingProgram, in accordance with provisions governing thatProgram. Local initiatives will be charged to localtraining funds.


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APPENDIX S

UAW-FORD MEMORANDUM OF UNDERSTANDING FORTHE HEALTH AND SAFETY OF EMPLOYEES

The UAW and Ford are proud of their accomplishments and longstanding dedication to education, training, a positive safety cultureand the resolution of employee health and safety concerns. Jointly,the parties will continue to strive for a lasting culture where healthand safety is an integral part of how we do business. ThisMemorandum of Understanding reinforces this commitment by theUAW and Ford to build an environment that continues to embraceevery aspect of workplace health and safety as a way of life anduncompromised core value in everyday activities at every level ofthe organization. Jointly, the parties will continue to strive for ahealthier and safer workplace through the involvement of allemployees.

The UAW and Ford leadership are dedicated to continuouslyimproving the health and safety culture through employeeengagement, awareness, and accountability at all levels. Thisdedication builds upon the long standing commitments of the UAWand Ford to health and safety and Best-In-Class joint trainingprograms. With a goal of zero fatalities and serious injuries, theleadership of the UAW and Ford will continue to jointly sponsoractivities that support a relentless daily focus on health and safetythat protects employees, prevents accidents and injuries, andprovides a safe workplace. The UAW and Ford leadership willstrive to achieve a safety culture in which everyone looks out forone another. Our efforts will continue to focus on:

• improving the health and safety culture and engagementfor all employees;

• enforcing and complying with health and safetyprograms, procedures, and safe work practices;

• protecting all employees when performing non-standard,non-routine, and high risk work;

• improving the Pre-Task Analysis process to ensure high-risks are addressed;

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• maintaining adherence to the company’s safety operatingsystem;

• improving the effectiveness of the ergonomics process;• supporting effective and efficient NJCHS best-in-class

training;• expanding upstream pro-active engineering and design,

including new technologies, for health and safety;• conducting effective joint Safety Process Review Boards;• exploring methods to enhance safe PMHV/pedestrian

movement;• inspecting and maintaining combustion equipment;• emphasizing energy control and power lockout, electrical

safe work practices and walking and working surfacesafety;

• expanding the involvement of employees, teamleaders/coordinators, supervisors, and work teams in theoverall safety process;

• using joint health and safety audits of all plants andfacilities to achieve continuous improvement;

• support the development of determining a set ofleading metrics for proactive injury prevention; and

• ensuring necessary personal protective equipment isavailable to and worn by employees.

The parties have worked together to improve the UAW-Ford jointhealth & safety program and have demonstrated the ability to takea joint problem solving approach to issues. This relationshipcontinues to build a highly successful program based upon afoundation of mutual trust, respect and the desire to ensure allemployees are provided a safe working environment.

The NJCHS is specifically empowered to periodically jointlyreview and evaluate this Memorandum of Understanding to identifyimprovement opportunities to the provisions during the term of thisagreement.

The NJCHS will jointly provide the direction of the continuousimprovement of this program. Any changes or variations to theprogram for any reason must be jointly agreed to by the co- chairsof the NJCHS with a final approval by the Vice President andDirector UAW, National Ford Department and the Vice

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President of Labor Affairs or their designees. The NJCHS willbe responsible for communicating any changes in the program toUAW-Ford locations.

It is expressly understood that this language has no impact on thecontractual provisions under Article VI, Section 8; Article VII,Section 23 (b); and Article X, Section 4; or related Letters ofUnderstanding. These provisions will remain in full force andeffect.

The Company and the International Union agree that the effectivedate of this Memorandum means the effective date of thisCollective Bargaining Agreement and will expire with theexpiration of this Collective Bargaining Agreement.The Company shall have the obligation to continue to makereasonable provisions for the health and safety of its employeesduring the hours of their employment. The Union shall cooperatewith the Company’s efforts to carry out its obligations. Therefore,the following Memorandum of Understanding for the Health andSafety of Employees is adopted.

1. National Joint Committee on Health and SafetyThe parties recognize that efforts directed toward a safe andhealthy workplace must represent a fully joint commitment.Therefore, the National Joint Committee on Health and Safety(NJCHS) was established as a mechanism to guide health andsafety concerns in the appropriate direction. The National JointCommittee shall continue to be comprised of equal numbers ofrepresentatives from the Union and the Company. Unionrepresentatives of the Committee will be appointed by theDirector of the National Ford Department. Each party willappoint to the Committee at least one member who hasprofessional training in industrial hygiene or safety.

Among those matters that would continue to be appropriate fordiscussion by the NJCHS would be significant developmentsof a mutual interest in the health and safety fields, changes inthe Company’s health and safety programs due to legalrequirements or Company policy revisions, review of themeaningful injury and illness experience of the Company’s


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plants, and procedures to minimize employee exposure toknown harmful physical agents or chemicals.

In the course of NJCHS discussions, the Company willcontinue to disclose the identity of any known harmfulphysical agents or chemicals to which employees are exposed.In addition, the Company will continue to arrange for surveysof specific plants at the request of the National FordDepartment. Results of such surveys, as well as regular plantsurveys conducted will be provided to the International Unionthrough its representatives on the NJCHS.

Past arrangements will continue to be made through theNJCHS for professional health and safety representatives ofthe International Union to visit Company plants in connectionwith particular health and safety problems.

The NJCHS has access to plant data required on OSHA Form300A(“Summary of Occupational Injuries and Illnesses”), orany successor document, the total manhours worked and theincident rate for each plant for the comparable period. Also,the Company will continue to provide to the InternationalUnion through the NJCHS prompt notification of fatalities andserious injuries resulting from work-related accidents.

Additional National Joint Committee functions are asfollows:• Sponsor joint conferences that provide training and

education, and stimulate interest in health and safetyprograms and procedures.

Conferences/meetings sponsored by the NJCHS forCompany and Union Health and Safety Representativeswill be held no less than annually or as deemed necessaryby the NJCHS to provide required training and educationand to stimulate renewed interest in health and safetyprograms and procedures to further improve theworkplace for all employees. Conference expenses,including wage payments for lost time, will be paid withjoint funds. Joint funds will pay for lost time (eight hoursper day) for Unit Health and Safety Representatives whoparticipate in these conferences. The Company willrecognize and compensate properly appointed alternates


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when the Unit Health and Safety Representative is out ofthe plant to attend such training. The NJCHS willconsider appropriate requests to provide financial supportfor periodic Operations meetings of safety professionalsto share best practices and receive current health andsafety information. The parties will develop a strategyto ensure Union and Company health and safetyprofessionals attend joint health and safetyconferences. Unresolved concerns will be elevatedthrough the issue resolution process.

In addition, the NJCHS supports further developmentof safety professionals through their participation instate and national health and safety conferences.

• Oversee joint training and education. The Company will continue to provide additional joint

health and safety training to enhance safety awareness,hazard recognition, and technical skills of employeescovered under the terms of this agreement. To provide forconsistency and uniformity, the NJCHS will continue toconsider joint funding requests from the plants to enablethem to design training programs to meet local needs (forexample, specialized training to address unique healthand safety concerns of electric vehicle batteries). Aftersubmission to the NJCHS for review, funding requestscovering projects which are consistent with NJCHSobjectives will be referred to the Joint Governing Body ofthe Education, Development and Training Program forapproval.

• Evaluate health and safety research needs andrecommend appropriate research projects.

The parties recognize that certain health and safetymatters require thorough study and appropriate analysisand research to identify and address the issues. TheNJCHS will continue to evaluate health and safetyresearch needs, recommend appropriate research projectsand communicate the findings to affected employees. TheNJCHS will make recommendations to the JointGoverning Body for funding of the specific project(s)


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under consideration as described in Section III of thisAppendix S. The results of research conducted withinCompany facilities will only be used for purposesspecifically authorized by the NJCHS.

• Participate in Manufacturing Safety Council (MSC)and Operations Safety Process Review Boards(SPRB).

These meetings, co-chaired by a senior member ofOperations management and a member of the NationalFord Department Health and Safety Staff (or other similararrangement approved by the Company and the UAWNational Ford Department) has been established in eachOperations having employees covered by this agreement.The NJCHS will continue to participate in activities ofthese forums which are expected to meet monthly orotherwise by mutual agreement to proactively review andresolve health and safety issues and to disseminatecorrective actions and information throughout theirrespective Operations.

• Conduct joint health and safety reviews of plantfacilities.

The NJCHS will continue to sponsor and oversee anational joint team of Company and Unionrepresentatives to review Company facilities andactivities with regard to NJCHS programs, federal andstate regulations and Company health and safety policiesand procedures. The NJCHS will develop specifictraining requirements for review-team members. Theteam’s principal functions will continue to be toencourage Local Union and Management cooperationconcerning continuous improvement in health and safetymatters, and to highlight strengths and assist inidentifying areas where improvements are needed. Jointreviews will be conducted as deemed necessary by theNJCHS, but in no case less frequently than once every 18months for manufacturing and parts distributionlocations. The NJCHS joint audit process will includeboth scheduled and unscheduled facility audits. In


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addition, facilities are required to conduct quarterly selfassessments using the Company’s current safetyoperating system. Joint Leadership at the facility areresponsible for ensuring the accuracy of the facility’s self-assessment. Results, action plans, and status are to bereviewed quarterly at the Plant Safety Process ReviewBoard Meetings. The NJCHS will continue to provideinput into the development of the SOS and engage inthe implementation, monitoring, and measuring of it.As part of our overall efforts for continuousimprovement, the Union and Company agree to the jointselection and appropriate use of third parties for certainaspects of joint health and safety audits.

II. Existing ProvisionsThe following separate contractual provisions are reaffirmedas being in full force and effect in conjunction with thisMemorandum of Understanding.Article VI, Section 8;Unit Health and Safety RepresentativeArticle VII, Section 23(b);Special Procedures - Health and SafetyArticle X, Section 4;Health and SafetyLetters of Understanding:The following letters of understanding are unpublished.

• Additional Health and Safety Representatives (10-31-73)• Limitations on the Addition of a Health and Safety

Representative and Benefits Representative for Unitsbetween 600 and 1,000 Employees Already Having SuchRepresentation (10-4-79)

III. Ongoing ResearchThe Company and Union agree to examine and conductresearch projects on subjects that address immediate healthand safety needs such as ergonomics or serious acute injuryprevention. The NJCHS, where appropriate, will meet, shareinformation and coordinate research agendas with UAW-


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General Motors and UAW-Chrysler with respect to futureprojects.

IV. Training and EducationThe parties recognize the desirability of wide dissemination ofinformation concerning the causes of illness and accidents andpreventive measures which can be implemented and, therefore,are continuing to address the need for health and safetyeducation and training through ongoing programs and projectslisted below.

Orientation training is acknowledged as an important step inproviding a new employee’s understanding of health andsafety procedures. The NJCHS will provide input to updatehealth and safety related training material.

Evaluation of training programs, including monitoring post-training awareness and understanding, will be conducted asdetermined by the NJCHS.

Existing programs and those developed and rolled-out bythe NJCHS will be reviewed by the NJCHS co-chairs andadded to the Regional OHS Training matrix.The NJCHS will create a process flow diagram for localaccess of employee safety training records.Chemical Safety Training The Hazard Communication Program, first initiated in

1984 to address federal OSHA requirements, is anongoing program to satisfy requirements relative torecognizing and avoiding chemical hazards.

The Hazard Communication training program wasupdated, renamed (Chemical Safety Training Program),and redesigned in 1997. In 2011, the program wasupdated and redesigned following the format of morerecently developed NJCHS programs. The frequency ofrefresher Chemical-Safety Training will be determined bythe NJCHS.

• Energy Control and Power Lockout (ECPL) In 2015, the NJCHS revised the ECPL training

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Authorized Person training. ECPL Awarenesstraining was developed in both web-based andinstructor-lead format. The ECPL Authorizedtraining was developed as web-based only. Theupdated training which included significant updatesreflecting advancements in safety technology andprocesses was delivered to all affected employees. Inthis regard, it is understood that local Management andthe Unit Health and Safety Representative will reviewperiodically the machinery and equipment lockoutprogram currently in effect. UAW Health and SafetyRepresentatives and Plant Safety Engineers will conductsample follow-ups with employees to verify competency.Necessary modifications to the local implementation ofthe ECPL program will be documented and supplied tothe Unit Health and Safety Representatives with theunderstanding that they will have an opportunity todiscuss the local implementation of the program andmake recommendations. To maintain the effectiveness ofthe ECPL program standard (FAS08-100), includingplacarding standard (FAS08-102) Energy Control andPower Lockout Placard, the rules regarding annualrefresher training must be strictly followed.

The Energy Control and Power Lockout Standard(FAS08-100) and the Energy Control and Power LockoutPlacard Standard (FAS08-102) outlines criteria andpresents a method that will satisfy the identification andspecific written procedures requirements of 29 CFR1910.147 for the control of hazardous energy duringservicing and maintenance of production machines andequipment with multiple energy sources.

For single energy source equipment where the energydisconnect is not evident at the operation, the location ofthe disconnect will be identified.

The placarding teams established in the 1993 CollectiveBargaining Agreement remain in effect to ensure theaccuracy of all placards.


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A committee which includes the Plant Safety Engineer,UAW Health and Safety Representative (or a PlantChairperson who functions as a Health and SafetyRepresentative), a facility engineer and an experiencedskilled tradesperson has been established and meets on anas needed basis. This committee will determineplacarding needs and ensure compliance with theplacarding process. The Committee’s functions include,but are not limited to developing and implementing aprocess for:

• ECPL training that addresses advancements orchanges in safety technology and lockout proceduresshall be provided as part of the launch process.

• Installation and verification of placarding on newequipment.

• Updating of existing placards during local engineeringchanges (scheduled or unscheduled).

• Replacement of damaged or missing placards, and• Immediate identification and rectification of inaccurate

placards.

The committee will report the placarding status to the PlantSafety Process Review Board.

• Guidelines, Responsibilities, and Safe Practices(GRASP)

The NJCHS will update the GRASP training programdesigned to train: (1) committeepersons, team leaders, process coaches/supervisors, and teammanagers/superintendents on their health and safetyroles and responsibilities; and (2) all employees on jobhazard recognition. The program requires an OperatorInstruction Sheet/Job Safety Analysis (OIS/JSA) for eachproduction job or group of jobs in a specific work area.Reinforcement videos to aid supervisors in the delivery ofsafety talks also will continue to be provided. TheNJCHS will update the GRASP refresher. Therecipients and frequency will be determined by theNJCHS.


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In the case of skilled trades and other non-productionemployees, the NJCHS developed, and launched a newGRASP application, which includes a process to identifyhigh risk tasks associated with machines and equipment,describes the hazards involved with such tasks, anddetermines appropriate health and safety controls. Thebasis for determination of appropriate controls will be thehierarchy, which gives preference to engineeringsolutions over procedures or personal protectiveequipment. Additional methods of describing andplacarding off standard tasks will be reviewed andimplemented for recurring jobs that are performed byemployees.

• Die Handling In 2014, the NJCHS jointly developed safe die

handling training. The training was designed toreaffirm safe practices for routine die handlingoperations.

• Arc Flash Web-based Arc flash refresher training for electrically qualified

personnel was developed and launched during the2011 contract period.

• Lifting & Rigging Refresher Refresher training was initiated in 2015 to reinforce

safe lifting and rigging practices to all affectedemployees.

• Skilled Trades and Apprenticeship Training Accidents involving skilled employees continue to be a

major concern of the UAW and Ford. Safety training willcontinue to be provided, consistent with the requirementsof each plant, to all Appendix F employees includingapprentices. Training programs have been developedcovering lifting and rigging, working at heights, electricalsafe work practices, skilled trades chemical safety,troubleshooting, maintenance vehicles, mobile crane andoverhead gantry crane (which included additional liftingand rigging training). Where appropriate, future trainingprojects will be developed, piloted, and delivered for


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specific skilled trades classifications or groups. TheNJCHS will explore alternative methods of delivery toenhance training effectiveness and minimize disruption tooperations. In addition, the NJCHS will work with theJoint Apprenticeship Committee to ensure apprentices areadequately evaluated on safe work practices.

• Air Sampling/Industrial Hygiene Workshops Periodic Industrial Hygiene Workshops have been

conducted by the Union and the Company. Theseworkshops will be scheduled as needed to train UnitHealth and Safety Representatives and Company SafetyEngineers.

• Powered Material Handling Vehicle (PMHV) Powered Material Handling Vehicle (PMHV) Program

training has been designed and conducted to instructoperators of material handling industrial trucks in the safeoperation of their vehicles. The parties agree thatprospective operators will receive the appropriate UAW-Ford PMHV training, properly satisfy certificationrequirements prior to operation of powered materialhandling vehicles and receive refresher training inconjunction with license renewal. The parties alsorecognize that “pedestrian” training is an essentialelement of the PMHV effort and agree that employeeswho work and walk around powered material handlingvehicles will receive such training.

The parties recognize that loading dock safety training isan essential element of the PMHV effort. Videos, singlepoint lessons, and other methods, are currently used toprovide training to appropriate personnel who areinvolved in the process of loading and unloading trailers,railroad boxcars and using column load dividers.

The Company has established a PMHV/Pedestrian SafetyCore Team which develops strategies to prevent PMHVand pedestrian incidents. The NJCHS and Companyleadership jointly participate on this team. Newprocedures and equipment being considered will bejointly reviewed in this forum.


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• Confined Space Entry (CSE) In 2010, the confined space entry training program was

updated and redesigned following the format of recentlydeveloped NJCHS programs. Work assignments thatinvolve entry into confined spaces are a concern of theNJCHS because of the potential for serious injury ordeath if proper procedures are not followed. TheCompany has conducted and continues to conductsurveys at each location to identify confined spaces andthe NJCHS developed and implemented a comprehensivetraining program on this subject for permit issuers, rescueteam members and entrants/attendants. Rescue teams willreceive refresher training annually on practice rescuesfrom typical confined spaces, basic first aid, and CPR.The frequency of future confined space entrant andattendant refresher training will be determined by theNJCHS.

• Shiftwork In 1995, the UAW-Ford NJCHS and ESSP jointly

developed a training program to assist employees andtheir families to make healthy lifestyle adjustments torotating shifts and non-traditional hours. The Program hasbeen made available to all locations for use as determinedby the local parties.

• Safety Talks The parties continue to agree that effective safety talks

conducted at least monthly by members of plantsupervision and/or team leaders/coordinators will beconducted to review near-miss incidents and injuries,remind employees of the importance of work rules andsafe practices, and encourage awareness of potentialhazards in the workplace. The parties recognize thebenefit of prompt sharing of near-miss or seriousincidents with affected employees in a safety talk formatin order to alert employees in the immediate area(s) ofpotential hazards, appropriate safe work practices, and/orcorrective actions to prevent recurrence. The partiescontinue to agree that conditions, equipment and


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processes differ by plant and, therefore, the safety talksare best handled on a plant-by-plant basis. The review ofthese programs is a proper subject for discussion by theNJCHS. Safety Stand-downs are considered a positiveway to communicate special health and safety messages.The practice will be utilized as appropriate, for examplein conjunction with, vacation shutdown, Christmasholiday period, or extended plant-wide shutdowns of atleast two weeks. GRASP reinforcement videos have beenproduced and will continue to be available to serve aspotential safety talk topics.

• Health and Safety Training for Supervisors andCommitteepersons

The NJCHS has developed comprehensive training forsupervisors and committeepersons on health and safetyfundamentals, accident investigations, communications,and ergonomics.

• Web Conferencing and Teleconferences The parties agree that web conferencing and

teleconferences are effective tools in education andtraining. The NJCHS will continue to utilize webconferencing and teleconference facilities at the NationalPrograms Center for these purposes.

• Representative Training NJCHS sponsored training will be conducted periodically

for full-and part-time elected Union representatives andproperly appointed alternate Unit Health and SafetyRepresentatives. Alternate H & S representativetraining will be identified by the NJCHS andfacilitated locally.

• Train-The-Trainer Certification The NJCHS has implemented a system for competency of

health and safety trainers through in-plant certification. Inaddition, train-the-trainer sessions will continue to beconducted, as required, during the term of thisAgreement. The NJCHS will develop replacement criteriato maintain best-in-class trainers.


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• Orientation for new Unit Health and SafetyRepresentatives, Alternates and Company SafetyEngineers

The NJCHS will continue to provide orientation for newUnit Health and Safety Representatives and SafetyEngineers. Properly appointed alternate Unit Health andSafety Representatives appointed after the effective dateof the Agreement will receive a comprehensive in-plantorientation with plant safety professionals based oncriteria developed by the NJCHS. In addition, new safetyprofessionals and alternates will be provided studymaterial on all three levels of core competency as soon aspractical after appointment. Should an alternatesubsequently be appointed as a full-time Unit Health andSafety Representative, they must commence theassessment process to become certified as describedbelow.

• Training for Health and Safety Representatives/SafetyEngineers

Present and newly appointed Unit Health and SafetyRepresentatives (UHSR) and Company Safety Engineerswill be required to be certified to a level of corecompetency which satisfies the disciplines for health andsafety personnel in industrial hygiene, ergonomics andsafety. An educational curriculum, appropriatecompetency criteria, and an assessment process, has beendeveloped by the NJCHS. Safety professionals (bothUAW and Ford) who fail to achieve core certificationwithin an appropriate period will be counseled by theNJCHS co-chairs and required to take supplementaltraining provided by the NJCHS with the intent to achievecertification. Experienced UHSRs, and Company SafetyEngineers may elect to take a proficiency assessment inlieu of attending the specific training. When allcompetencies are demonstrated, a certificate will beissued by the NJCHS. In addition to the NJCHScertification, present and newly appointed Unit Healthand Safety Representatives (UHSR) and Company Safety


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Engineers will be required to complete the OSHA 30 hourGeneral Industry Outreach Course or equivalent. All costsassociated with the delivery of the internal certificationprogram and OSHA course will be covered by theNJCHS. All health and safety personnel are encouraged topursue additional educational opportunities andcertification such as, Certified Safety Professional orOccupational Health and Safety Technologist. TheNJCHS will identify and implement relevant courses thatwill more closely align the UAW Health and SafetyRepresentative (both full and part-time) and PlantSafety Engineer knowledge bases, as well as improvingoverall competency for both.

V. Other Important Matters• Issue Resolution Process The parties agree that health and safety issues will be

promptly resolved at the base level of the organization. Ifnecessary, the matter may be addressed at the local PlantSafety Process Review Board or with assistance from theChairperson and Plant / Facility Manager. If the mattercannot be resolved locally, the item may be referredthrough Operations to the NJCHS for review andresolution.

The NJCHS will create/maintain a flowchart specificto the Issue Resolution Process.

• Combustion Safety A Combustion Safety Core Team, consisting of the

NJCHS and Company leadership, has beenestablished to provide strategic oversight for all issuesrelated to gas-fired equipment (e.g. standards andprocedures, safety training resources, processverification reviews, and maintenance procedures).Also, the Combustion Safety Team will jointly reviewproposed new equipment and procedures.

• Hazardous Materials and Environmental Control Company and Union Health and Safety Representatives

will continue to monitor hazardous materials andenvironmental control activities (including review of


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materials for local use, toxic waste handling or disposal)having a direct bearing on employee occupational healthand safety. Hazardous materials and environmentalcontrols affecting employee health and safety will berecognized as appropriate subjects for discussion by theNJCHS.

• Review of Technology and Launch Launch is an additional and separate activity in our

facilities. The Company may submit a request withsupported business rationale for the request to LaborAffairs to approve additional hours for safetyactivities based on local needs.

The UAW Health and Safety Representatives willcontinue to participate in change management for newequipment and processes, which could include reviewsof:

• new plant layouts• machine and equipment buy-offs,• PMHV applications and associated equipment,• new and retooled work stations,• major process changes where employee health

and/or safety may be affected,• material flow,• part racks (in process or shipping), and• PROTAG.

The NJCHS will be provided the opportunity toevaluate new technologies to the company and reviewthe associated risk assessments.

The parties agree that focus should be given to upstreampro-active engineering and design, and reviews should beconducted in the planning or tryout stages and prior to thetime that new equipment or processes are released toregular production operations. In addition, pro-activeconsideration should be taken during rebalances.Where appropriate, other hourly employees, such asskilled tradesperson(s) and/or member(s) of the LocalErgonomics Committee, may be involved in this process.


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The Company will provide additional training forlaunch support activities as needed. Any issues thatcannot be resolved locally regarding review oftechnology and launch should follow the IssueResolution Process. The Issue Resolution Processprovides a method to resolve concerns related toequipment review and buy-off.

To improve the launch buy-off process, a focus groupwill be jointly assembled to review things-gone-rightand things-gone-wrong, and may include VO, PTO,and SBU. This information will be used to developbest practices and share lessons learned with allfacilities.

• Ergonomics (Fitting Jobs to People) The Union and the Company recognize that

musculoskeletal disorders (MSDs) are occupationalillnesses that are prevalent and preventable in theautomobile industry worldwide. The Union and theCompany established the UAW-Ford ergonomics process,“Fitting Jobs to People” in 1989. The Union and theCompany are committed to continually improving theefficiency and effectiveness of the ergonomic processthrough:

(1) proper application of ergonomic principles to thework environment, and

(2) increased emphasis on upstream, proactive analysisthrough advanced ergonomics training for engineersand Local Ergonomics Committee (LEC) membersselected by those LECs and the continueddevelopment and implementation of ergonomicanalysis tools and processes with the ManufacturingEngineering Departments,

(3) Triannual Joint Ergonomic Summit with PTME,VOME, SBU, Corporate Ergonomics,Manufacturing Safety, and others identified bythe NJCHS. Collaborative focus will be placed onupstream engineering, analysis, tools, training,and cross functional best practice sharing.


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The Union and the Company have increased awareness ofergonomic principles and practices by jointly developingand implementing education and training programs for:

• employees and their supervisors;• Company Safety Engineers;• UAW Health and Safety Representatives;• other Union representatives as jointly appointed by the

Co-chairs of the NJCHS;• certain plant engineers; and• appropriate Medical personnel.

These efforts will continue as required to maintain suchawareness, including appropriate refresher training with anergonomics handbook for employees. The NJCHS willcontinue to conduct classes annually for LEC members asappropriate.

Each manufacturing location of 125 or more employees hasestablished a Local Ergonomic Committee (LEC) to reviewand analyze jobs for the purpose of identifying ergonomicstressors and recommending solutions. At manufacturinglocations, the bargaining unit members of the LEC will beallocated, as a group, time consistent with the requirements ofthe planned ergonomics activities, up to a total of forty straighttime hours per week as the LEC Ex-officio Co-chairs sodetermine to conduct LEC functions outside of normal LECmeeting time, such as:

• Conducting current state mapping using the ErgonomicSurveillance Tool after program launch and rebalance;

• Conducting investigations of reports of ergonomicillnesses and injuries;

• Conducting job analyses using approved tools to evaluateergonomic risk;

• Managing the implementation and verification ofergonomic solutions;

• Maintaining required documentation;• Participating in ergonomic reviews and sign-offs for new

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• Providing “high-hurt” data to new model program teamsAt locations where a LEC bargaining unit member is affordedtime in accordance with the above provisions, such member willbe designated by the Vice President and Director, UAW,National Ford Department.The Ex-officio Co-chairs may submit a joint request to the NJCHSCo-chairs for approval to temporarily authorize additional hours tothe LEC, as a group, based on local needs.

Any issues regarding the release of employees to conduct theirergonomic duties will be referred through the Issue ResolutionProcess.

Should problems arise concerning the proper functioning of thelocal ergonomic process, including availability of appropriateengineering or technical resources, the issue should be referredthrough the Issue Resolution Process.

The Company will continue its ergonomic activities at the corporatelevel including training for hourly and salaried employees. TheNJCHS may review the LEC activity by generating the semi-annualreport using ErgoRx.

One hourly and one salaried member of the LEC, at eachmanufacturing location, will be required to be certified to a level ofcore competency in ergonomics. This process will be developed andadministered by the NJCHS.

In addition, the NJCHS sponsors an annual training conference forLEC co-chairs and designated members of their committees toreview project funding procedures and other ergonomicadministrative matters and to share information on successfulergonomic projects. Additional content will be added as jointlydecided by the NJCHS to maximize the effectiveness of themembers of the committee. The NJCHS will continue to sponsorjoint ergonomic meetings with Manufacturing Engineering tofacilitate issue resolution, information sharing, and steeringfunctions as needed.

The Union and the Company recognize that “area ergonomiccommittees” are a natural evolution of the UAW-Ford ErgonomicsProcess in certain large manufacturing operations and locations that


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have distinct areas each with unique problems and solutions. Areacommittees, where mutually agreed to, will meet on a regular basisand report to the central LEC for direction, support andcoordination of ergonomic activities. The local parties shoulddecide if the function of these committees can be included with thatof other established teams or committees. Problems that ariseconcerning the establishment or functioning of area ergonomiccommittees will be referred through the Issue Resolution Process.

The Company will encourage representatives of major suppliers ofproduction machinery and equipment to attend appropriateergonomic training. Company Ergonomics Technical Bulletin 1.0and subsequent documents were developed describing the UAW-Ford Ergonomics Process. These documents outline the use ofDesign for Ergonomics concepts as design specifications for newand retrofitted machinery and equipment and the development ofstandards or best practices for specific types of machinery andequipment.

The parties understand the importance of implementing soundergonomic guidelines at the earliest stages of the product/processdevelopment cycle. In that context, the Company has allocatedresources in VO and PTO Manufacturing Engineering to managethe design for ergonomics process. This process includes ergonomic principles in product/process design, identifiesprocedures/guidelines and best practices, and establishes a reviewprocedure for appropriate machines, equipment and workstations.Engineers review the principles, procedures/guidelines, and bestpractices outlined in the Design for Ergonomics process. Lessonslearned from past programs are identified by LECs in ErgoRx andare taken into account.

An ergonomic training strategy has been developed by the NJCHSthat addresses appropriate methods, contents, participants,procedures and resources to deliver the training, including advancedcourses.

The Company and the Union recognize the benefits of guidelines toidentify ergonomic risk factors, to prioritize jobs needingergonomic improvements and to establish measurables with timingand progressive checkpoints for review with Company managementand the NJCHS. The development of these standard methods has


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been provided to NJCHS through such mechanisms as semi- annualreports and ErgoRx.

Ergonomic issues are identified through employee medical reportsof injury and illness, employee complaints and reports, and throughthe use of risk analysis. A good faith effort shall be made to conductan initial job analysis within two weeks after a concern is placed onthe concern log. Appropriate ergonomic job analysis will beperformed and documented within one month after a concern isentered onto the LEC Concern Log. Each facility will use ErgoRxto record progress with ergonomic modification efforts. A goodfaith effort will be made to implement permanent ergonomicsolutions within a six (6) month time frame after the LECdetermines that corrective action is required and has prioritized theremediation. The parties acknowledge that there may be times whenit may take longer than six (6) months to make the propercorrection, and the reasons need to be documented in ErgoRx.Formal follow-up on improvement actions should be completedwithin one (1) month after the final solution is in place to confirmits effectiveness.

The Company agrees that it will not remove ergonomic supportequipment, job aides (such as ergonomic chairs, mats, and tools)and mechanical assists, that are currently in use for ergonomicreasons without mutual agreement of the LEC co-chairs.

Ergonomic analysis tools are an appropriate approach to resolveergonomic problems. Tools that will be used by the LEC forevaluating risk factors are documented in FAS08-402 andErgonomics Surveillance Tool (EST) that was developed throughthe NJCHS Ergo research project, or other approved ergonomicanalysis tools.

• No Hands in Dies Almost all stamping operations utilize automatic feeding

equipment. However, the parties continue to recognizethe potential danger of employees placing their hands intothe point-of-operation of mechanical power presses. TheCompany’s policy in this regard is restated as follows:“Company policy has been and continues to be ‘NoHands in Dies.’ Implementation of ‘No Hands in Dies’ inthe plant requires provision for appropriate hand feeding


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tools, slide feeds, sliding bolsters, automatic or semi-automatic operation, die cutouts or other means andprocedures whereby the operators are not required toplace their hands into the point of operation. In addition,well defined procedures for use of press slide locks,safety blocks and lockout points for maintenance andsetup personnel are imperative.”

• Communications The Company and the UAW agree to continue to explore

methods to further improve communications between theparties on health and safety matters. In this regard, theNJCHS will be given advance notice of proposed andupdated Company standards and standards deviations.The NJCHS will be made aware of significant eventsas part of the initial communication. UAW Health andSafety representatives will continue to receive copies ofIndustrial Hygiene Reports, Company standards, singlepoint lessons, and significant incident reports. The UAWHealth and Safety Representative(s) are providedcomputer access to MATS, OHSIM, and the Company’semail system. In addition, computer access to SafetyTalks is provided. The NJCHS will be given access toinjury investigation data upon request. The NJCHSand UAW Health and Safety Representatives will begiven access to ISN or equivalent upon request toreview contractor safety related records.

• Preventive and Environmental Maintenance andPlant Housekeeping

An important element of the Company’s preventivemaintenance program is to conduct regularly-scheduledpreventive maintenance on safety-related items requiringperiodic inspections. The Unit Health and SafetyRepresentative will be permitted to review preventivemaintenance records upon request.

• Industrial Hygiene/Occupational Health The Company continues to recognize its obligation to

provide a safe and healthy working environment.Accordingly, the Company is committed to the continued


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improvement of the services provided by its industrialhygiene staff.

As part of the improvement effort, the Companyrecognizes the need for establishing periodic surveillanceprograms designed to monitor unique health concerns andassociated abatement procedures. The Company willcontinue to utilize professionally accredited hygienelaboratory services. The Company also will continue toprovide employees who are exposed to known harmfulphysical agents or chemicals, at no cost to them, thosemedical services, physical examinations, and otherappropriate tests, including lung function at a frequencyand extent necessary to determine whether the health ofsuch employees is being adversely affected. In addition,the Company will continue to administer to employees injobs with special physical requirements the specific testsas required by state or federal regulations. A writtenreport of the results of such examinations or tests whichare related to occupational exposure will be provided toan employee upon the employee’s request.

These results, and those instances where a breathing zoneair sample is collected, as well as instances where theIndustrial Hygiene section determines that an employeehas had a personal exposure exceeding the permissiblelevels as set forth in 29 CFR 1910.1000, AirContaminants or other applicable standards adopted bythe Company, will be entered on the employee’s medicalrecord and will be provided to the employee. Also, uponthe employee’s written request, copies of suchinformation will be forwarded to the employee’s personalphysician.

The NJCHS and the Company’s Industrial Hygiene staffwill regularly review established permissible exposurelimits in light of available scientific evidence todetermine if change is required. The Company willcontinue to use the American Conference ofGovernmental Industrial Hygienists chemical ThresholdLimit Values as guidelines to control health hazards.


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Exposures exceeding 50% of the TLV shall result inadditional monitoring and corrective actions if warranted.The Company will advise the NJCHS of TLVs that arenot feasible. The Company agrees to discuss limits lowerthan OSHA Permissible Exposure Limits, wherenecessary, taking into consideration such things as OSHAproposals, NIOSH recommendations, consensus standardrecommendations and other validated and consensusscientific evidence.

Additionally, the Unit Health and Safety Representativemay continue to use technologically current directreading equipment, such as for measuring noise, aircontaminants and air flow, which is provided to localCompany Safety Representatives or is specificallyauthorized by the Company’s Occupational Health andSafety Department for use by the local Company SafetyRepresentative.

Finally, during plant industrial hygiene reviews, theCompany will survey facility ventilation systems forproper application and function. Significant occupationalhealth concerns related to ventilation will be referred tothe NJCHS for review and subsequent discussion, ifconsidered necessary by that committee, with theappropriate Operations SPRB. In reviewing suchoccupational health concerns, the NJCHS will considerthe need for further study, including the possibility of apilot research project as warranted.

When outside industrial hygiene services are used, theCompany will, in advance of the services beingperformed, notify the Local Union of the identity of thesupplier. The results of any such services will be providedto the UAW Health and Safety Representatives.

The Company will ensure that NA ConstructionSpecification 15500 for ventilation is followed duringmajor facility and process changes. Unresolvedconcerns to this process will be escalated through theIssue Resolution Process.


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The NJCHS will facilitate a periodic meeting, or uponrequest, with Industrial Hygiene to review samplingwork plans, results from sampling done, work plansinitiated from sampling and proactive measures, andcollaborative opportunities to improve the process orpotential exposures in our facilities.

To continue improvement in the overall workingconditions of employees in machining operations, theCompany will strive to continue as the industrybenchmark.

The OSHA Standard presently has set an oil mist personalOccupational Exposure Limit (OEL) of 5.0 mg/m3. TheCompany has established an internal employee exposurelevel of 1.0 mg/m3 and will continue to strive towardreducing employee oil mist exposures. Personalexposures of 50% or more of the Company’s internalemployee exposure level will be treated the same as ourapproach stated above to TLV’s. The Company willcollect enough personal samples to identify employeesexposed above 0.5 mg/m3. When an employee’s exposurein a similar exposure group (SEG) is found to be greaterthan 0.5 mg/m3, personal sampling for the SEG will beconducted annually to identify opportunities and to takeappropriate steps to improve.

The Company will specify that new equipment beengineered and designed to attain a level of 0.5 mg/m3 forinitial start-up and efforts will be made to maintain thislevel after start-up.

Each applicable facility will have oil mist levels mappedonce per year during the winter and more frequently ifrequired in areas identified over 0.5 mg/m3 to identifyexposure sources. Data collection for the mist mappingwill be conducted by PTO Manufacturing Engineering.The Unit H&S representative will be trained and mustaccompany engineering personnel during mist mapping.

Progress on the overall topic will be discussed annuallywith the NJCHS including the status and progress onpersonal exposures above 0.5 mg/m3.


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Medical Surveillance (consisting of a standardizedrespiratory symptoms questionnaire) for respiratoryeffects of machining fluids will be offered to employeeswho regularly work in operations with machining fluids.Records of laboratory testing on coolant systems andcoolant additions will be maintained and, upon request,made available to the Unit Health and SafetyRepresentative(s).

The NJCHS will meet periodically or as needed uponrequest with Corporate Medical to discuss concerns,trends, improvements, best pratices and othercollaborative topics as jointly agreed to.

To assist in educating employees on heat stresssymptoms, precautions, and procedures, the CompanyHeat Stress letter will be distributed annually to facilityjoint leadership. The contents of the annual heatstress letter will be shared, in advance, with theNJCHS for review and input. Information on heatstress will also be provided annually to all employees.Local heat stress plans will be forwarded to the NJCHSfor review. Modifications to the heat stress programwill be completed jointly by the NJCHS andCorporate Health and Safety to ensure theeffectiveness, viability, and adherence of the program.

To ensure appropriate preparations are taken prior tothe onset of cold weather, the Company will issue anannual Cold Weather Preparedness letter to bedistributed to facility joint leadership. The contents ofthe annual Cold Weather Preparedness letter will beshared, in advance, with the NJCHS for review andinput. Modification to the cold weather preparednessplan will be completed jointly by the NJCHS andCorporate Health and Safety to ensure effectiveness,viability, and adherence of the program.

• Noise Control and Hearing Conservation The Company will continue to administer a noise control

and hearing conservation program which emphasizes thereduction of noise exposure to employees. This program


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will continue to provide for periodic employee noiseexposure studies to determine the need for noiseabatement actions, employee hearing protection,employee hearing conservation training, and employeeaudiometric examinations. The Plant Noise EngineeringControl Coordinator will review local noise control andhearing conservation efforts with the Unit Health andSafety Representatives to provide ample opportunity todiscuss efforts and provide input into noise control andhearing conservation plans. The Company will provideappropriate training to the plant noise engineering controlcoordinator to support the following:

• ensure audiometric testing is performed for employeesexposed above 85 dBA (8 hour TWA),

• perform an annual evaluation of the noise abatement planand provide recommendations for improvement to thePlant Safety Process Review Board,

• provide annual reports to show the effectiveness of thenoise control and hearing conservation process,

• ensure provisions of Ford Manufacturing StandardSX1(Noise Control) are met, and the NJCHS will benotified of deviations to the noise standard prior to itsapproval, and

• identify planned maintenance items related to noisecontrol.

Noise control and hearing conservation will be reviewedat the PSPRB. The NJCHS will review the plant’s noisecontrol and hearing conservation process during jointhealth and safety audits.

The Company will make periodic reports on noise controlto the NJCHS upon request, including data on noiseexposure levels and the number of employees by location:given audiometric tests, (2) required to wear hearingprotection, and (3) having hearing loss. The NJCHS willcontinue to explore methods for reporting the number ofjobs where noise improvements have been accomplished.


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• Radon Gas The Company agrees to continue to conduct tests at

Company facilities where significant levels of radonemissions are suspected.

• Tasks in Isolated Locations When assignments involve what are locally recognized as

work situations hazardous to an employee, includingtasks in isolated locations; basements/roofs; wastetreatment; powerhouses and confined, closed-entryspaces; appropriate precautions will continue to be takenin accordance with safe work practices, including airsampling and ventilation when necessary, provision ofnecessary protective equipment, communicationssystems, personnel surveillance arrangements, and, asrequired, adequate support personnel.

Individual work assignments that require adequatesupport personnel because of the hazards involved shouldbe reviewed at the Plant Safety Process Review BoardMeetings. If not resolved at the PSPRB, the matter will bereferred for discussion with appropriate managementpersonnel. If still unresolved, the matter may be referredthrough the Issue Resolution Process.

The NJCHS will develop guidelines to assist locationsin the risk assessment of these assignments.

• Tag Procedures Each plant has described to the NJCHS its process for

maintaining: (1) the Company leak-tag program, and (2)Form 1249 Danger Tag process for removing containers,tools, ladders, and equipment from service, and (3)responses to imminent danger situations. Thesedescriptions were prepared jointly and included the use ofprocess flow charts.

• Plant Safety Process Review Boards Operations Safety Process Review Boards have been an

important pro-active forum to resolve health and safetyissues, disseminate corrective actions and tocommunicate health and safety events such as training


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programs, conferences and future programs. TheCompany and Union agree that joint Safety ProcessReview (SPR) Boards at the plant level will meet at leastonce a month to discuss: plant injury and illnessincidents/investigations, status of incident investigations,quarterly self assessments on health and safety, status ofhealth and safety training initiatives, action plans basedon analysis of injury data, ECPL placarding, preventivemaintenance, ergonomics and safety teams, noise controlprograms, near-miss incident reporting process, outsidecontractor safety requirements, the status of daily GRASPwork area checklists, focused audit findings, heat stressand cold weather preparation plans, parking lot androof repair, snow and ice plans and issues regardingreviews of new technology and other appropriate healthand safety matters.

If problems arise concerning the availability of funding orother resources to resolve health and safety issues, theissues will be referred through the Issue ResolutionProcess.

Suggested agendas and attendees for these meetings havebeen developed by the NJCHS. Each SPR Board will beco-chaired by the Plant Manager and UAW Chairpersonor, if a co-chair is unable to attend, by a designatedrepresentative.

• Safety/Work Teams The utilization of safety/work teams can be an essential

tool to improve each plant’s health and safetyperformance. A safety/work team would consist ofemployees who undertake a team approach to improvespecific health and safety performance in their respectivework area. The establishment and utilization of thesesafety teams will be determined by the Plant SafetyProcess Review Board. The NJCHS has developed aGRASP reinforcement video and guidelines to define thefunctions and selection process of safety/work teams.Problems that arise concerning the establishment andproper functioning of safety/work teams may be referredthrough the Issue Resolution Process.


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The NJCHS will continue to utilize workerengagement and team building tools as opportunitiesare identified during the course of this agreement.

Emergency Response and Notification The Company will ensure that each manufacturing and

parts distribution facility has an effective emergencyresponse plan and a notification system which, asappropriate, includes trained and properly equippedpersonnel and simultaneous notification or alarm system.Periodic drills will be conducted to test the notificationsystem and achieve the best possible response time for theemergency involved. Where Emergency Response Teams(ERT) are established, the Company will train the ERT tothe prescribed levels of response as identified in the localEmergency Response Plan. Sites will establish theirmonthly drills and practice sessions locally. TheCompany will ensure there is a plan to release ERTmembers to fulfill their training requirements.

Each manufacturing facility will select an ERTcoordinator (hourly, salaried, or co-lead) in writingand shall allocate the appropriate training and time toperform the designated duties as outlined in the ERTcoordinator training program. Local Leadership willmonitor effectiveness of the ERT coordinator.

PS&L warehouse locations not required to maintainan ERT will have a maximum of two volunteers (inaddition to the UAW Health and Safety / ErgonomicsRepresentative) as First Aid/CPR/AED trainedresponders. There will be an annual review and drillof site specific medical response at each of theselocations. These first aid responders will be allowed toparticipate in emergency medical situations at thefacility and allowed access to the appropriate medicalequipment.

There will be an emergency response focus groupmade up jointly of key UAW and Company personnel.This group will develop a charter including meetingcadence, ERT recognition and standing agenda items


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with the NJCHS. The NJCHS will pursueopportunities to hold the ERT challenge or equivalentactivity once during the term of this contract.

Each location is required to conduct an annualdepartmental stand down to address severe weather /natural disaster preparedness. Severe weather and naturaldisaster preparedness messages should be based upon thelocal Emergency Response Plan risk assessment.

• Near-miss Reporting Fostering a near miss reporting process that is a

valued cultural principle is crucial to injury prevention. Each location will establish a near-miss reporting process

with an option of reporting anonymously. Thereporting process must ensure that employees clearlyunderstand and are encouraged to report near-missincidents without fear of reprisal. This process willinclude a provision for feedback to the originator. Nearmiss information will be shared with workgroups asappropriate.

The NJCHS will help define the scope of near-missesand develop a communication strategy to refresh keycomponents of the near-miss reporting process.

• Worker Memorial Day In remembrance of workers who have lost their lives

while on the job, the parties agree to pause for a momentof silence annually, on a date specified by the NationalFord Department. Each location will receive instructionsprior to the specified date.

The parties recognize the uniqueness of non-manufacturinglocations with regard to training programs and other health andsafety issues. The NJCHS will work with these locations to identifythe appropriateness of programs and processes to meet the intent ofthe joint health and safety initiatives.

Finally, it continues to be understood that, with respect to theparties’ joint health and safety initiatives, nothing in the agreements,booklets, manuals, or joint programs is intended to make, andshould not be construed as making, the International Union, Local


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Unions, Union Health and Safety Committees and Union officials,employees or agents legally or financially responsible for either thehealth and safety of Company employees or for any job-relatedinjury, illness, death or related losses incurred by employees of theCompany or its subsidiaries or by third parties while on property ofthe Company or its subsidiaries.

This Memorandum supersedes and supplants the 2011Memorandum set forth in Appendix S.


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APPENDIX T

MEMORANDUM OF UNDERSTANDING NATIONAL PROGRAMS CENTER;EDUCATION, DEVELOPMENT AND

TRAINING PROGRAM

INTRODUCTIONThe UAW and Ford Motor Company have partnered todevelop one of the most comprehensive and far-reachingeducation and training programs in either the private or thepublic sector. The parties’ relationship has producedsignificant breakthroughs in health and safety, quality,efficiency, customer satisfaction, and employee work lifeimprovements that have been important to Ford’scompetitiveness and its ability to provide job security forUAW-represented Ford employees.

To function successfully in the 21st Century, additional skillsrequiring greater competencies and technological expertise arerequired to meet future safety, quality, productivity and jobsecurity goals, as well as, the challenge of future competition.

The parties must jointly improve their capabilities to match thepower of the advanced technologies that are reaching everycorner of the plants. The parties must jointly provide thetraining that will give UAW-represented Ford employees thecapacity to solve difficult problems and achieve creativesolutions.

The Company and the UAW reaffirm their commitment to theprinciples and objectives of the UAW-Ford Education,Development and Training Program and to the various JointPrograms and activities, the parties have established or havesupported thereunder. In addition, the parties agree that newprograms and activities may be funded when authorized by theJoint Governing Body.

JOINT GOVERNING BODY (JGB)A Joint Governing Body, consisting of an equal number ofrepresentatives of the UAW and the Company, selected fromwithin or outside their respective organizations by the Vice

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President and Director of the UAW National Ford Departmentand the Vice President, Labor Affairs, Ford Motor Company,will provide general direction and guidance to establish policyand provide funding for the UAW-Ford National ProgramsCenter; Education, Development and Training Program; andother agreed upon activities.

The Company and/or the UAW will provide a reasonableamount of legal, accounting and other professional services toassist the JGB. The Company will endeavor to provide theseand appropriate other services that the Company has or canreadily obtain, on a reasonable, mutually agreed-upon costbasis.

Members of the JGB will meet annually to assess programsand to determine if progress is being made towardaccomplishing their principal objectives and if the needs of theparties are being met. In light of these considerations, the JGBmay decide whether the joint programs should be continued,reinstated, modified, realigned or discontinued. The JGB mayat such time or at any time thereafter as mutually agreed upontake such action as provided in the Collective BargainingAgreement (Agreement) or the Settlement Agreement.

UAW-FORD NATIONAL PROGRAMS CENTER (NPC)A UAW-Ford NPC has been established as a separate anddistinct entity to provide a focal point for the parties’ efforts.The NPC is under the general direction and guidance of theJGB. Staffing of the NPC is subject to approval of the JGB. Itis understood that the Company and the UAW jointly, throughthe NPC, will continue to make available a wide range ofeducational, training and retraining services and activities, aswell as support other joint activities as agreed by the partiesconsistent with the intent of this Memorandum ofUnderstanding and the level of funding as provided in theSettlement Agreement.

Principal Objectives • Provide individual and group training, retraining and

developmental opportunities to enhance the dignity andon-the-job skills and abilities of employees, which canlead to greater job security and personal development.

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• Seek ways of arranging (and, in some cases, providing)for training, retraining and development assistance foremployees displaced by new technologies, newproduction techniques and shifts in customer productpreference. Similar efforts would be undertaken foremployees displaced as a result of facility closings ordiscontinuances of operations.

• Energize, sustain and support local and national effortsunder the UAW-Ford “Best-In-Class” Quality processes,employee participation and other joint activities. Provideresearch and studies in new techniques and methods tofurther employee participation, “Best-In-Class” Qualityand other joint activities and cooperative efforts betweenthe Company and the UAW.

• Provide opportunities for the exchange of ideas andinnovations with respect to employee development andtraining needs within the framework of job requirementsand Union/Management relations.

• Support national and local initiatives dedicated to theexpansion of developmental activities for hourlyemployees, which would include continuousimprovement training, generic technical literacyapplications, technical readiness training, versatilitytraining, and training in support of activities to maximizeemployee capabilities;

• Coordinate use of existing resources within the Companyand the UAW to assist, where feasible, in meetingemployee educational/training needs;

• Promote and publicize the parties’ training/educationalactivities to encourage similar constructive undertakingsthat are clearly in the interest of the private sector as wellas the public sector;

• Invite high-level academic, professional, government,labor and industry representatives to conduct/participatein national and local conferences for Union, Managementand employees related to the NPC’s objectives;

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• Commission studies and research activities (bothinternally and by outsiders) on topics of mutual interestand importance to the parties;

• Sponsor international, national, regional and localconferences, workshops, meetings and seminars topromote joint cooperative efforts and related subjects;

• Serve in an advisory capacity to those locations whichmay be interested in setting up their own training centers;and

• Establish public advisory committees to provideassistance and counsel to the JGB.

Education, Development and Training Program (EDTP)Education, Development and Training Program (EDTP)Establishment of the EDTP has provided the parties withunusual opportunities to develop and implement a wide varietyof mutually agreeable training and education programs andservices, as well as support other joint activities. Theseactivities focus on the needs of all employees and includespecific efforts to assure Union and Managementrepresentatives are trained in participative, cooperativetechniques and concepts. Additionally, In-Progressionemployees will be covered by the joint activities as outlined inAppendix V, Section V.

The parties recognize the EDTP: provides added impetus andongoing resources to involve employees to a greater degree inrelevant workplace matters and to improve worklife; enhancesoccupational and work group skills, thereby contributing togreater job security and competitiveness; provides employeesaffected by plant closings or other major capacity restructuringevents the opportunities for career and/or personaldevelopment; stimulates and sustains employee contributionsthrough communication, motivation, changes in attendanceand work habits and inter-group relationships; supports mutualgoals of achieving the highest product quality and operationalcompetitiveness; supports and encourages displacedemployees; and, finally, contributes in a focal way to theparties’ endeavors and goals.

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The parties reaffirm that training/educational courses can bemade available to upgrade/sharpen present job skills, provideupdating on the state-of-the-art technology for skilled andsemiskilled employees based on present and anticipated jobrequirements and improve the job satisfaction andperformance of all employees.

The EDTP is not intended to replace the Company’s obligationto provide the training specified in the Agreement and lettersof understanding (e.g., apprentice training, skilled tradestraining, etc.); however, notwithstanding this intent, the partiesagree that EDTP funds may be used for joint endeavors insupport of such programs, projects and activities newlyspecified in the Agreement, or as subsequently agreed by theJGB, as eligible for EDTP funding. In this regard, the partiesagree that it would be inappropriate to use EDTP funds to trainemployees who will be required to service newly introducedtechnology. However, use of these funds, when agreed by theparties, to provide subsequent general training of othertradespersons on this equipment to broaden their skills isappropriate. Further, EDTP funds should not be used fortraining of skilled tradespersons to implement a newlynegotiated change in classifications, but the use of EDTP fundsto freshen or update generally the skills of tradespersons isappropriate.

A. Principal Objectives of the EDTP A major objective of the EDTP is to recognize the

significant progress of UAW-represented Ford employeesin the area of formal educational development and also todevelop a program vehicle that will prepare theorganization and its people for the work environment ofthe 21st Century. This can only be done by creating alearning organization that involves its employees at everylevel of training, education and all facets of programadministration. This new learning organization shouldencompass all educational experiences undertaken byemployees both inside and outside of the workplace.

Therefore, under the direction of the UAW-Ford JGB, theEDTP principal objective shall be the continuation of a

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program dedicated to a university-style approach toworkplace education and training: one that recognizesand rewards group and individual achievement, providesresearch and development on advanced education,training and communication technologies and helpsprepare UAW-represented Ford employees for theworkplace of the future.

Responsibilities and Functions of the EDTP While various administrative, procedural and eligibility

details of the EDTP will be resolved by the JGB, theEDTP’s efforts and resources should take intoconsideration:

• Identifying education, training and retraining needs(including updating on state-of-the-art technologyfor skilled and semiskilled employees) for bothactive and displaced employees by utilizing varioussources such as operating components, LocalUnions, studies, surveys, research and employeesthemselves;

• Identifying existing educational resources,publicizing them to meet employee needs andencouraging employee participation;

• Providing local on-site classroom training andoutside consulting services (where needs cannot bemet through existing internal resources), andtraining trainers, etc., to deliver required training;

• Determining the level and type of educational,training and retraining assistance that is availableand may be provided to displaced employees,including pre-layoff counseling in the event ofindefinite layoff without the prospect of recall orfuture Ford placement and financial aid to cover inwhole or in part tuition costs and fees forcourses/classes that contribute directly to enhancingthe employability of such employees;

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• Maintaining contact with Company and UAW fieldorganizations to provide visibility for the EDTP andpromote participation.

Employee Tuition Plans Employee Tuition Plans for active and inactive UAW-

represented seniority Ford employees will be continuedand funded under the EDTP. In-Progression employeeswill be entitled to Tuition Assistance – Active workersand Tuition Assistance – Inactive workers; as it relatesto the guidelines established below.

The Employee Tuition Plans will continue to beadministered by the UAW-Ford NPC under the generalguidance of the JGB and in accordance with the terms andconditions established by that Body from time to time.

The NPC has the authority and discretion to interpret theterms of the Employee Tuition Plans, including but notlimited to the authority and discretion to approve schoolsand courses and to issue guidelines interpreting theEmployee Tuition Plans.

Courses taken under the Employee Tuition Plans will besubject to applicable federal, state, and local income taxprovisions, (current 2015 federal non-taxable limit is$5,250).Tuition Assistance - Active Workers

Education Training Assistance Plan (ETAP) ETAP,the basic education and training assistance feature ofthe Employee Tuition Plans provides for prepaymentof tuition, and approved fees and books up to$6,000 per calendar year for approved coursesleading to GED, Associates Degree, Bachelor’sDegree, Master’s degree or Ph.D. and approvedCertificate/Diploma Programs from regionallyaccredited educational institutions; up to $400 ofthe $6,000 may be used for the purchase of books.ETAP generally covers:

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- all courses required for high schoolcompletion (or high school equivalencycertificate);

- university, college, business, trade, orvocational school courses or adulteducation classes.

• Personal Development Assistance (PDA)The PDA feature of the Employee Tuition Plansprovides for prepayment of tuition and approvedfees included but not limited to testing andlicensing fees and books up to $2,700 per calendaryear upon approval of the Joint Governing Body.The focus of this program will include job relatededucation and training for active employees; jobrelated courses in the areas of technical skills,communication skills, and computer applicationcourses that may prepare active employees for futurejob opportunities; and career related training foremployees affected by announced plant closings orother major capacity restructuring events. Examplesof this would include certifications or licensesrequired for certain occupations, targeted training,piloted courses and others approved by the JGB.o Educational Enrichment Courses - $500 of

the $2,700 PDA allotment may be used forEducational Enrichment Courses, includingtuition, approved fees and books. Thesecourses are to be taken at approvededucational institutions.

Active employees participating in both the ETAPand PDA features of the Employee Tuition Plans willnot be eligible to receive more than an aggregate of$6,000 of assistance for tuition, approved fees andbooks (up to $400 may be used for the purchase ofbooks for approved ETAP/PDA courses) during anyone calendar year. Similarly, any tuition assistancereceived by a recalled employee while on layoff

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during that calendar year would be counted againstthis $6,000 aggregate limit.

• Deceased Employee - Spouse/DependentEligibility The spouse or dependent child(ren) of an employeewho dies while on the active rolls, or while on amedical leave (active or inactive), will be entitledto utilize the remaining balance of the employee’stuition assistance eligibility plus one additionalyear, excluding any advance payment, for college oreducational pursuits during a period equal to thelength of the present Agreement following the dateof the employee’s death. The spouse or dependentchild(ren) will receive information about ETAPbenefits related to approved tuition, books andfees from the EDTP Department of the UAW-Ford National Programs Center in the lettermailed to the surviving spouse or dependentchild(ren).

Tuition Assistance - Inactive Workers• National Vocational Retraining Assistance Plan

(NVRAP)The maximum amount of tuition, books andapproved fee assistance under the NVRAP feature ofthe Employee Tuition Plans will be $9,400 while anemployee is on indefinite layoff.

Eligibility for such assistance is established byseniority as of the last day worked prior to layoff asfollows:

Years of Total Maximum Company Seniority Amount 1 to less than 3 Years $7,400 3 to less than 4 Years $8,400 4 or more Years $9,400

The above specified amounts will constituteindividual accounts upon which employees maydraw so long as they retain recall rights while on

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indefinite layoff. In no event will total assistance toan employee exceed $6,000 per calendar year andthe total maximum amount specified above in anyfour consecutive calendar year period of indefinitelayoff, which period begins on the date the employeebegins to draw on the Employee Tuition Plans.

• Tuition Assistance - Employees on Certain Leavesof Absence Seniority employees on approved leaves of absenceunder Article VIII, Section 31 of the Agreement,provisions a, b, c and d are eligible to participate inthe Employee Tuition Plans of the EDTP consistentwith all other provisions of the Employee TuitionPlans.

• Education or Training Recall Deferral Laid-off seniority employees recalled to their basicseniority unit, who are engaged in education ortraining courses under the Employee Tuition Planswill, upon notice and subsequent presentation ofsatisfactory evidence of course enrollment to theCompany, be permitted to defer their return to workto complete the courses in which they are thenenrolled.

Those employees electing to defer their return towork under these circumstances will remain onlayoff status until their completion of ordiscontinued participation in the courses in whichthey were enrolled at the time of recall.

If such employees apply for reinstatement withinfive days of the date their courses are com pleted orparticipation is discontinued, and satisfactoryevidence of continuous participa tion in the courses ispresented by the employees, they will be reinstatedat work in line with their seniority status at theirbasic seniority unit; otherwise they will be deemedto have voluntarily quit.

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• Daily Allowance for Laid-Off EmployeesUtilizing Certain Features of the EmployeeTuition Plans A daily allowance of $20.00 may be establishedthrough the Employee Tuition Plans to help offsetexpenses incurred by seniority employees on layoffwho are not receiving Supplemental UnemploymentBenefits or Guaranteed Income Stream benefitswhile participating in full-time targeted vocationalretraining programs, job seeking skills workshops,or other formal job placement counseling or relatedservices arranged or approved by the UAW-FordNPC.

Such allowance would be reduced by any otherallowance or similar payment displaced workerswould be eligible to receive from other sources,including federal, state or local governmentprograms.

Enhanced Apprenticeship Training Enhanced apprenticeship training may be considered forpotential funding. In addition to present education and trainingefforts, the following apprentice program concepts will remainas follows.• Develop the means to deliver more uniform

apprenticeship-related instruction at all locations havingan apprenticeship program.

• Conduct task analyses of the various apprenticeabletrades so that shop area learning and performanceobjectives can be expanded to all locations as conditionspermit.

• Adopt as standard elements of the apprentice program thehighly successful core skills training for new apprenticesand in-course progress assessment of participants mid-way through the program.

• Pilot a graduation requirement and assessment to verifydelivery of appropriate shop training and relatedinstruction, and to ensure the successful job performanceof apprentice program graduates.

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• Conduct a benchmarking study of exemplaryapprenticeship programs to further continuousimprovement in all aspects of the Apprentice Program.The benchmarking would focus on industrial tradeswithin and outside the United States.

Establishment of the EDTP Programs will not limit the right ofeither party to provide educational and training programs on thesame, similar or other subjects, as each may deem appropriate.Finally, the Grievance Procedure set forth in Article VII of theAgreement has no application to, or jurisdiction over, any matterrelating to this Memorandum of Understanding.

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APPENDIX U

MEMORANDUM OF UNDERSTANDINGEMPLOYEE SUPPORT SERVICES PROGRAM

I. INTRODUCTIONFord Motor Company and the UAW reaffirm their commitment tothe principles and objectives of the UAW-Ford Employee SupportServices Program (ESSP). In addition, the parties recognize thatbalancing the competing demands of the workplace with personaland family responsibilities presents challenges to working men andwomen as they strive to reach their potential both on and off the job.ESSP has evolved over the past decade to encompass a broad rangeof programs well beyond the original Employee Assistance Plan(EAP) to effectively address emerging societal changes and theaccompanying needs of employees and their families to adapt tothese changes.

II. PROGRAM STRUCTUREA. Funding

The Education, Development and Training Program (EDTP)will fund the development, central administration, andarrangement of necessary services, regarding delivery of theEmployee Support Services Program. The Program and theNational Program Center (NPC) professional staff will assistlocations in implementing the Program as well as arrange fornecessary promotional, training, professional, referral, andother support services from appropriate national and localCompany and external resources.

B. National Joint Employee Support Services ProgramCommitteeA joint ESSP Committee established by the National ProgramsCenter Joint Governing Body will direct and guide theProgram’s development, administration, and delivery at thenational level. The Committee will be comprised ofrepresentatives of the UAW appointed by the UAW VicePresident and Director of the National Ford Department andCompany representatives appointed by the Company’s VicePresident of Labor Affairs. Under the sponsorship of the Joint

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Governing Body, the effectiveness of these programs will beevaluated periodically by an outside third party.

The UAW-Ford National Employee Support ServicesProgram is committed to building better, more effectiverelationships through the common chartering process. Thiscreates a culture that makes it a common practice to sharebusiness goals and objectives and discuss openly andhonestly how we will accomplish these goals. The ESSPCharter will be reviewed and updated annually withmonthly working matrix meetings discussing theobjectives, goals, and contractual commitments ofAppendix U.

C. Local CommitteesJoint local ESSP committees established by localManagements and local Unions will coordinate Programfunctions and activities at their locations, consistent with theprovisions of this appendix and the guidelines established bythe National ESSP Committee. The local Union and CompanyESSP representatives, local medical activity, as appropriate,and other local program support services are recognized asresources which can assist the local committee in performingits responsibilities. The parties recognize that alternativecounseling techniques provided by a UAW Chaplain will beuseful during certain situations.

Proposals and requests for funding concerning delivery oflocal programs and related services under the ESSP arereviewed and subject to approval by the National ESSPCommittee as authorized by the National Joint GoverningBody.

D. Local Employee Support ServicesProgram Representatives• Article VI, Section 10 is reaffirmed as being in full force

and effect in conjunction with this Memorandum ofUnderstanding.

• The locations and setup of the local ESSP office willprovide a safe, secure working environment. Approvedsafety measures such as panic buttons and fish eyes will


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be determined locally with the appropriate parties. TheNational ESSP Committee will work with the locationsthat do not have panic buttons, to ensure they areprovided locally as required.

• In order to protect the privacy of the employeesutilizing ESSP services, the ESSP office will includesecure printing, copying, fax, and cross cut shreddingcapabilities as determined locally with the appropriateparties. Equipment requests will be reviewed by theNational ESSP Committee and funded through EDTP.The funding will be limited to $25,000 for the durationof the 2015 contract. The equipment will be providedwithin six months of contract ratification, on an asneeded basis.

• Employee Support Services Representatives may utilizePool vehicles that are Company-owned during workinghours, if available, for Company business transportation.They are assigned to organizational componentsaccording to their transportation needs for business useonly. Personal use of pool vehicles is prohibited.

• Efforts will continue toward facilitating the professionaldevelopment of local ESSP representatives. In this regard,access to and request for materials, appropriate training,and the use of professional, developmental resources,including materials and resources related to work/familyissues, will be supported.

• To enhance and strengthen the skills of local ESSPrepresentatives, the parties have also agreed:

- The UAW-Ford National ESSP Committee will providetraining for local ESSP representatives in use of nationalESSP standards, and how to coordinate these standardswith current UAW-Ford ESSP Committee guidelines forthe implementation of local program services. Training inthe use of these standards and guidelines will be providedannually for local ESSP representatives.

- Newly appointed local ESSP representatives will, aftertheir initial appointment, be provided a “mentoring”


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opportunity by National ESSP representatives at theoffice of the UAW-Ford National ESSP Committee. It isexpected that new representatives will receive a thoroughorientation on the background, history, development, andfocus of ESSP, as well as methods for coordinating aquality ESSP program during this mentoring period.

- UAW appointed ESSP representatives will be required toearn an EAP Certification, through the LaborAssistance Professional Association (LAP) andbecome LAP members in addition to any othercertifications the individual ESSP representatives mayhold. UAW appointed Representatives will be given up to(3) three years, upon its availability, to attain certification.Those representatives who fail to achieve certificationwill be counseled by the National ESSP Committee Co-Chairs and will be required to take supplemental trainingwith the intent to achieve certification.

- ESSP Representatives will be required to furnish theNational Committee for ESSP a quarterly report onactivities at their location, and any additional informationwhich might be requested.

III. EMPLOYEE ASSISTANCE PLANThe UAW and Ford recognize it is of mutual interest toprovide a framework within which UAW-represented Fordemployees voluntarily and confidentially may seekprofessional counseling, treatment, or other assistance toaddress personal and family concerns. Similarly, it is in theparties’ interests to generally encourage, educate and otherwisehelp employees pursue more healthful life styles, and toremind employees of these resources during demonstratedtimes of need. Working together, the Union and the Companycan achieve common goals in these areas.

The parties recognize that alcoholism and drug dependency arehealth concerns which may be successfully treated, given earlyidentification and appropriate rehabilitation therapy.Furthermore, alcoholism, drug dependency, emotionaldisorders and serious personal or family issues can adverselyaffect job performance.


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The EAP provides for: (1) early identification, interventionand voluntary assessment of employees demonstratingalcoholism or other drug dependency concerns as well asemotional disorders or other serious personal or family issues;(2) referral of such employees for professional diagnosticevaluation, counseling or treatment through the services of aCentral Diagnostic and Referral (CDR) Agency; and (3)appropriate follow-up on their counseling or rehabilitationprogress.

While the Plan’s primary purpose is to assist employeesdemonstrating such concerns and help Union and Companyrepresentatives deal effectively with such situations, it alsoallows employees to obtain information about availablecounseling or treatment referral services for immediate familymembers having such concerns.

Employees demonstrating alcoholism, drug dependency,emotional, personal or family concerns will be able to seekhelp voluntarily without having to be worried that theiremployment status will be affected because they have soughthelp for such concerns. Such employees, however, wouldcontinue to be subject to the same standards of performanceand conduct expected of any other employee, irrespective ofparticipation in the EAP. Employees requiring a leave ofabsence for the treatment of health issues will be providedsuch leave in accordance with the provisions of the CollectiveBargaining Agreement. Insurance benefits, if any, fortreatment and absence will be determined in accordance withthe Agreement.

A. Supervisor, Committeeperson, and Labor RelationsRepresentative Training

An integral part of a successful EAP is training. In thisregard, the parties reaffirmed that early intervention bysupervisors, committeepersons, team leaders and/orlabor relations representatives, to assist employees inobtaining quality, confidential EAP support is animportant element in the recovery process. Earlyintervention is key to helping employees understand howabuse of alcohol and drugs can lead to excessive


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absenteeism and declining job performance. Supervisors,committeepersons, team leaders and labor relationsrepresentatives must be aware of available ESSPresources as tools for early intervention.

To facilitate understanding of their critical roles in theintervention process, the parties agreed to keep updated,with the help of outside technical experts as necessary, theEAP related training module directed toward localsupervision, Management, and Union leadership. Thetraining will focus on providing supervisors,committeepersons, team leaders and labor relationsrepresentatives with basic awareness of their role in EarlyIntervention with employees, the negative impact ofenabling, refresher information on BehavioralEmergency/Critical Incident Stress DebriefingProcedures (BE/CISD), and the impact of work/familyissues on employee productivity.

Additionally, information on resources available throughESSP will be provided to employees as a means toemphasize Early Intervention and the availability of ESSPservices.

B. Central Diagnostic and Referral Agency The role of the Central Diagnostic and Referral (CDR)

Agency is acknowledged as being critical in the EAP. Inthat regard, the parties recognize that the CDRs play a keyrole in: the professional, accurate assessment of anindividual employee’s concern, those of the employee’sfamily members, and/or those of an organization needingassistance, and in developing and implementing strategiesto address those concerns. As a result, the parties agreethat the Central Diagnostic Referral Agency will functionas the professional resource and primary service providerfor the EAP-related components of the Employee SupportServices Program. The CDR also acts as the CaseManager under the Mental Health and Substance UseDisorder Managed Care Program, which is part of theFord health plan, (offering assessment, differential


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diagnosis, treatment plans, and referral services) for allUAW represented employees and their eligibledependents covered under traditional health care plans.

C. Behavioral Emergency/Critical Incident StressDebriefing Procedures

It is important to recognize the value of conductingcritical incident “stress debriefings” after a trauma, suchas an employee suicide, a major injury accident, violenceor death at the work site, etc. Appropriate debriefings foremployees traumatized by such events are in the bestinterest of the Union and the Company. In this regard, theparties developed and established a national and localcritical incident stress debriefing procedure and nationaland local procedures dealing with behavioral emergencieswhich may occur in the work place.

The parties updated the BE/CISD procedures onworkplace violence, and agree to survey LocalResponse Teams (LRT) to determine the need foradditional awareness, education and training on theBE/CISD procedures. Additional refresher trainingwill be offered as required.

D. Support Groups It is mutually agreed that there is value in providing social

support to employees making positive life style changes.Where the local parties jointly agree, on-site supportgroup meetings coordinated by a trained CDR or otherprofessional provider(s) retained by UAW-Ford will bepermitted for employees, on their own time withappropriate meeting space available.

IV. FITNESS CENTERSFitness Centers National fitness center guidelines have been established

to provide locations with the necessary criteria for thesafe and effective fitness center operation. Theseguidelines will be revised in a timely manner wheneverthere are changes to the criteria and/or support documentsas jointly agreed upon by the National ESSP Committee.Space allocation will be considered for any newly


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constructed facility with over 200 employees forestablishment of an on-site fitness center. Existingfacilities that do not have an on-site fitness center maysubmit a proposal for review to the National ESSPCommittee to secure equipment to furnish one. Fitnesscenter approval is subject to space allocation and mustbe previously approved by local Company leadership.

Existing Fitness Centers Locations will be responsible for facility and other

necessary costs that do not qualify for support under thenational guidelines. Certain local costs pertaining tofacility enhancements, including equipment, mayappropriately be charged to Local Training Funds. In thisregard, it is understood that such local costs will beconsistent with provisions of the Letters of Understandingon Local Training Funds and related guidelines.

The Company and Union recognize the importance ofmaintaining viable equipment in the UAW-Fordsanctioned Fitness Centers. Consistent with new andongoing wellness initiatives, the parties have agreed toestablish a process assisting locations in themaintenance, repair, and replacement of specific fitnesscenter equipment, primarily cardio, strength, and groupexercise equipment. The UAW-Ford Fitness Centerguidelines will be updated detailing the equipmentreplacement, repair and maintenance process and thesteps necessary to apply for central funds, including aprofessional equipment evaluation.

The parties have discussed the concerns of Parts Supplyand Logistics (PS&L) location employees that do nothave access to onsite or near-site UAW-Ford FitnessCenters. The parties have agreed to provide employees indesignated PS&L locations, up to $200 per year at anapproved provider. The UAW-Ford Fitness CenterGuidelines will be updated to detail the eligibility andindividual fitness center membership application process.Requests for fitness center equipment maintenance,repair, replacement, and individual membership will be


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reviewed by the National ESSP Committee and fundedthrough the Education, Development and TrainingProgram (EDTP). The funding will be limited to$2,000,000 for the duration of the 2015 contract, forexisting and newly approved facilities.

Retiree Use of Fitness Centers Retirees will be eligible to utilize in-plant fitness centers

on a space available basis, at non-peak usage periods,when the local fitness center is in operation. The scheduleof usage will be determined by the local joint partiesbased on factors such as location of the fitness center,present hours of operation, present plant membershipusage, and other locally determined criteria.

Retirees will be required to present proof of retirement,and complete a liability waiver.

V. CHILD CARE/ELDER CARE/PARENTINGA. Family Consultation and Referral Services The Family Consultation and Referral Services were

established to provide employees with a greaterunderstanding of services available for themselves andfamily members. The Family Consultation and ReferralServices include Child Care Consultation and Referraland Elder Care Consultation and Referral.

The parties explored options for web-based informationto identify resources to assist in child care, adoptionassistance, education assistance, elder care and parentingeducation. In addition, a committee comprised ofrepresentatives from the National ESSP Committee andlocal ESSP Representatives explored and identifiedcommunity resources to assist in these areas. Informationgathered by the committee will be updated and sharedwith all local ESSP Representatives.

Child Care Consultation and Referral Program For employees with child care needs, a consultation and

referral service is available. The service assists employeesin finding and selecting quality child care suited to theirindividual needs and requirements and provides


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information intended to make them more informedconsumers of child care.

In many locations, community based child care resourcesand options available to employees are limited, especiallyfor those employees working different shift patterns. In aneffort to increase these resources, the UAW-Ford NationalESSP Committee will provide assistance to meet theneeds of employees, especially those working differentshift patterns. These efforts may include but are notlimited to identifying and influencing child and eldercare providers where markets are large enough toencourage leverage (i.e. discounts and extendedhours).

Adoption Assistance The Adoption Assistance service helps employees who

are contemplating or pursuing the adoption of a child,domestically or internationally, with finding informationon the process of adoption in order to make a wellinformed decision.

Education Assistance The Education Assistance service helps employees who

are planning for their children’s education beyond highschool select a college, university or vocational schoolappropriate to the interest and talents of the child. Theservice can also help parents locate sources of financialassistance, if available.

Elder Care Consultation and Referral Program For employees having responsibility for the care of elder

relatives, a consultation and referral service is available.The service acts as a liaison by providing informationabout the programs and services available. It helps theemployee make an informed decision in locatingappropriate care.

Funding of the Family Consultation and Referral Serviceswill be provided by the EDTP. Employees will pay thedirect cost of care.


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B. Parenting Education Resources and information on parenting will continue to

be provided to requesting locations by the National JointESSP Committee. Locations also may request fundingand design support for special local pilot projects in thearea of parenting education.

VI. GENERALIt is understood that nothing contained herein or in existing orfuture statements concerning the ESSP or steps taken toimplement its programs and related services shall be construedor interpreted as constituting a waiver of either the Company’sor the Union’s rights or responsibilities under the CollectiveBargaining Agreement, nor is the Program intended in any wayto create for any employee any enforceable obligation againstthe Company, the Union, or their representatives.

In addition, it is the parties’ intent that any programs,approaches or related services provided under the ESSP are notto be construed as benefits or insurance programs.

Finally, the Grievance Procedure set forth in Article VII of theCollective Bargaining Agreement shall have no application to,or jurisdiction over, any matters related to the Program.

This Memorandum of Understanding supersedes and replaces thefollowing letters:

• Child Development Center, dated (9-16-96)• Employee Fitness Centers and Rehabilitation Units, dated

(9-16-96)• Employee Support Services Program, dated (9-16-96)• Joint Child Care Initiative, dated (9-16-96)• Retiree Use of Plant Employee Fitness Centers, dated

(9-16-96)

APPENDIX U MEMORANDUM OF UNDERSTANDING—EMPLOYEE SUPPORT SERVICES PROGRAM

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APPENDIX V

MEMORANDUM OF UNDERSTANDING UAW-FORD IN-PROGRESSION WAGE & BENEFIT AGREEMENT

FOR EMPLOYEES HIRED ON OR AFTERNOVEMBER 19, 2007

During 2007 negotiations, the parties discussed the economicrealities associated with the global automotive industry. The partiesare acutely aware of the unrelenting competitive pressures that facethe U.S. automotive industry and have consistently sought to jointlyidentify courses of action that would respond to these competitivepressures and help secure the long term viability of the Companyfor all employees.

Together the parties have recognized through several negotiationsand agreements, as well as during the present negotiations, thatcompetitiveness, increasing market share and job security go handin hand. In addition, the parties discussed obstacles the Companymust overcome to close the competitive gap to best-in-classcompetitors and the need to pursue appropriate adjustments thatallow Ford to close the competitive gap and to retain presentbusiness.

The parties acknowledged the importance of factors such as cost,quality, and productivity in sustaining and promoting profitablebusiness opportunities at Ford that employ UAW-representedemployees. The application and implementation of thisMemorandum of Understanding will impact the blended labor costat all U.S. Ford Motor Company facilities. By taking an EnterpriseWide perspective, the parties can maximize the competitiveness ofall functions and facilities while maintaining seniority rights and allcurrent contract provisions for current employees in order toleverage the subsequent positive impact on job security.

Therefore, in accordance with and as part of the 2015 (UAW-FordNational Agreement between the International Union, UAW(hereinafter referred to as UAW) and Ford Motor Company(hereinafter referred to as Ford), the UAW and Ford agree asfollows regarding competitive wage and benefit levels, and othermatters applicable to certain employees hired or rehired on or after

APPENDIX V MEMORANDUM OF UNDERSTANDINGENTRY LEVEL WAGE & BENEFIT AGREEMENT

330

the Effective Date of the 2007 UAW-Ford National Agreement.Except as otherwise specified in this Memorandum, employeeshired or rehired on or after November 19, 2007, will be covered inall respects by the UAW-Ford 2015 National Agreement.Notwithstanding the foregoing, or anything else to the contrary, thisMemorandum applies to all UAW-represented Ford facilitiescovered by the 2015 UAW-Ford National Agreement.

ARTICLE 1I. ApplicabilityThe terms of this Memorandum apply to all regular full-timeemployees, hired, rehired, or reinstated on or after November19, 2007 at all Ford Motor Company facilities covered by theUAW-Ford National Agreement who have not previouslyconverted to non-Entry Level status.II. Seniority and Transfers Employees hired, rehired, or reinstated under this Memorandumwill be eligible to transfer within classifications in accordance withapplicable National or Local Agreement provisions, and may applyand be transferred, if qualified, to the skilled trades, or apprenticeclassifications. Notwithstanding any such transfer, these employeeswill continue to be covered in all respects by this Memorandum.

III. Wages and Other Economic MattersPresent and future employees covered by this Memorandum willreceive rates of pay in accordance with paragraphs A through Cbelow:A. Production Employees (excluding Rawsonville, Sterling

and Woodhaven Hot Metal Forming Plant)a. Employees hired, rehired, or reinstated on or after

November 19, 2007 and prior to the effective date ofthe 2015 UAW-Ford National Agreement, shall beplaced at a rate in accordance with their current ratestep effective November 23, 2015 in accordance withthe table below. Those employees whose rates areincreased to the next step on November 23, 2015 shallmaintain those rates until they meet the requiredtiming for subsequent rate step increases. This SectionIII, A is not applicable to Sterling, Rawsonville orWoodhaven Hot Metal Forming Plant employees.


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TABLE 1Wage increases for this group will be effective upon ratificationand then in twelve month intervals thereafter. For clarity,increases occurring for In-Progression employees will beemployee specific and will be effective on the Monday followingthe anniversary of the employees hire date.


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Years of

Service on

Legacy

the Effective

Effective

Classification

Date

Date

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Wage Rate*

Less than 1

$17.00

$18.00

$19.50

$21.00

$22.50

$24.00

$26.00

$28.00

*

1<2

$18.00

$19.50

$21.00

$22.50

$24.00

$26.00

$28.00

**

2<3

$19.50

$21.00

$22.50

$24.00

$26.00

$28.00

**

*

3<4

$21.00

$22.50

$24.00

$26.00

$28.00

**

**

4<5

$22.50

$24.00

$26.00

$28.00

**

**

*

5<6

$24.00

$26.00

$28.00

**

**

**

6<7

$26.00

$28.00

**

**

**

*

7<8

$28.00

**

**

**

**

* Legacy classification wage rate

i. Employees who reach the legacy classificationwage rate effective on or before September 18,2017 will be eligible for the Performance BonusPayment provided in Article 9. Section 2(b).

b. All regular, non-temporary production employeeshired, rehired or reinstated in Assembly, Powertrain,Stamping and PS&L facilities after the Effective Dateof the agreement, new hire rates and wage progressionrates shall be established as follows:

TABLE 2 Rate at Hire and Ongoing At Hire $17.00 After 12 Months $18.00 After 24 Months $19.50 After 36 Months $21.00 After 48 Months $22.50 After 60 Months $24.00 After 72 Months $26.00 After 84 Months $28.00

B. Sterling, Rawsonville and Woodhaven Hot Metal Forming Planta. Employees hired, rehired, or reinstated on or after

November 19, 2007 and prior to the effective date ofthe 2015 UAW-Ford National Agreement shall beplaced at a rate in accordance with their current ratestep effective November 23, 2015 in accordance withthe table below. Those employees whose rates areincreased to the next step on November 23, 2015 shallmaintain those rates until they meet the requiredtiming for subsequent rate step increases.


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Rawsonville, Sterling and Woodhaven Hot Metal FormingPlantTABLE 3Years of Service on Rate as of November 23,the Effective Date 2015 and OngoingLess than 1 $16.251<2 $17.162<3 $18.063<4 $18.96Over 4 $19.86

Employees who progress to the maximum rate of $19.86 willreceive an annual three percent (3%) increase on theanniversary date of the agreement in 2016, 2017 and 2018 anda 3.7% increase on August 26, 2019.

b. Employees hired, rehired, or reinstated on or after theeffective date of the 2015 UAW-Ford NationalAgreement shall have the following wage rate andprogression:

TABLE 4Rate at Hire and

OngoingAt Hire $16.25After 12 Months $17.16 After 24 Months $18.06 After 36 Months $18.96After 48 Months $19.86Over 48 Months $19.86

C. Employees who convert directly from Temporary Part-Timeor Short-Term Supplemental employee status to regularfull-time In-Progression status on or after September 14,2015 will be considered new hires and shall be paid thegreater of: a) their present hourly rate at the time of conversionto full-time or b) the corresponding “at hire” rate for their


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full-time position as provided in the applicable (based uponwork location) above wage progression tables. In the eventtheir present hourly rate is greater than the “at hire” rateprovided for their full-time position, they will remain atthat rate until they are eligible to progress to the nexthigher wage rate as provided in the applicable rate table.

D. Increases listed in Tables 1 through 5 are effective theMonday following attaining the threshold for a rate stepincrease.

E. The wage rates for Appendix F skilled trades employeesprovided in the 2015 UAW-Ford National Agreement willcontinue to cover Appendix F skilled trades employees,including journeypersons hired or rehired on or after theEffective Date, new apprentices hired directly into anapprentice classification on or after the Effective Date, andnon-Appendix F employees hired under this Memorandumwho are subsequently promoted to a journeypersonclassification, or indentured as an apprentice.

IV. Vacation EntitlementThe maximum annual vacation entitlement for employees coveredby this Memorandum shall be 160 hours.V. Memorandum of Joint Activities and Legal ServicesThe funding provisions of the Education, Development andTraining Program will be applicable for In-Progression employees.In addition, In-Progression employees covered by thisMemorandum will be included within the scope of theMemorandum of Understanding concerning legal servicesbenefits provided in the UAW-Ford 2015 National Agreement.VI. New Employee Orientation ProgramThe New Employee Orientation Program will incorporate athorough understanding of the industry’s need to transform to meetthe challenges of the marketplace. The program will include the roleof the parties in preserving jobs while still maintaining the corevalues historically provided in the parties’ bargaining agreements.

APPENDIX V MEMORANDUM OF UNDERSTANDINGENTRY LEVEL WAGE & BENEFIT AGREEMENT -

335

VII. Benefit PlansExcept as set forth in this Appendix V Memorandum and itsAttachment A, employees covered by this Memorandum will becovered by the benefit plans set forth in the 2015 UAW-FordNational Agreement.VIII. ScopeExcept as specifically provided in this Memorandum, all provisionsof the 2015 UAW-Ford National Agreement, SupplementaryAgreements and understandings, and local agreements existing asof the Effective Date shall apply to employees covered by thisMemorandum.

Any future changes to the UAW-Ford National Agreement,Supplementary Agreements and understandings, and localagreements will apply to employees covered by this Memorandumonly by express agreement between the National Parties.IX. Compliance – Administration and Dispute ResolutionThe parties believe that these actions will increase the potential forgrowth as all locations become better positioned to meet futurecompetitive challenges and for the long-term job and incomesecurity that employees value. It is recognized that these effortsmay require change or waiver of certain agreements or practicesbeyond those identified in this Memorandum. In such cases,proposed changes to agreements or practices must becommunicated to and approved by the Labor Affairs Office of theCompany and the National Ford Department of the Union. TheLabor Affairs Office and the National Ford Department will meet,as required, to review proposed changes in this regard and todevelop and implement processes to assist and support locationsintroducing these provisions.

Disputes, local and national, involving the application orinterpretation of this Memorandum, including but not limited to thecommitments set forth in Article I above, will be reviewed by aJoint Committee consisting of three (3) members appointed by theUAW Vice President and Director of the UAW-Ford Departmentand three (3) members appointed by the Vice President, LaborAffairs, Ford Motor Company.


336

The Joint Committee shall meet on an ongoing basis. Ford and theUAW shall advise the Joint Committee at each meeting of anyissues surrounding the administration and implementation of thisMemorandum. Ford will provide information such as but notlimited to seniority lists of both In-Progression and non- In-Progression employees, of work being insourced and jobsassociated with that work, any increase in volumes and newprograms as necessary on any issues raised for discussion orresolution. The parties commit to the thorough investigation of andthe prompt resolution of all issues discussed relative to thisMemorandum.

The Joint Committee will have full authority to settle all mattersthat are properly before it, recognizing that disputes governed byappeal procedures of the respective Benefit Plans, and other issuesconsistent with applicable law, are outside the scope of theCommittee’s authority. If the Joint Committee is unable to resolve amatter properly before it, the matter will be referred directly toarbitration, using the arbitration provisions, including therestrictions on the powers of the Umpire, contained in the UAW-Ford National Agreement (Article VII). Such matters willimmediately move to the top of the arbitration docket.


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ATTACHMENT A

BENEFIT PLANS AGREEMENT

This Attachment A supersedes the Entry Level Attachment A as setforth in the 2011 Collective Bargaining Agreement. In general, theterms of the 2015 Collective Bargaining Agreement covering theBenefit Plans between the UAW and Ford are the same for In-Progression Employees as they are for Traditional Employeesexcept as noted below. Benefits described herein reflect the generalstructure agreed upon by the parties.

SECTION I: PENSIONSIn-Progression Employees are not entitled to benefits under theFord-UAW Retirement Plan.SECTION II: TAX EFFICIENT SAVINGS PLAN FOR HOURLYEMPLOYEES (TESPHE)In-Progression Employees are eligible to receive certainCompany contributions in TESPHE as reflected in Volume III.SECTION III: LIFE AND DISABILITY BENEFITSPROGRAMA. LIFE INSURANCE BENEFITS

Eligibility• In-Progression Employees shall be eligible for Basic

Life Insurance and Accidental Death andDismemberment (AD&D) on the first day of employmentwith the Company.

• Basic Life Insurance- For active In-Progression Employees, the

Company shall provide Basic Life Insurancecoverage in the amount of $45,000.

• Accidental Death and Dismemberment (AD&D)- The Company shall provide AD&D in the amount of

$22,500.

• Optional Insurance Programs- Eligibility, coverage amounts and rates are based on

the Optional Insurance Program provisions.

APPENDIX V ATTACHMENT ABENEFIT PLANS AGREEMENT

338

• Continuation of Company Provided Life Insurance PostEmployment for In-Progression Employees.- An insured In-Progression Employee with ten (10)

or more years of seniority and at least age 55 or 30years of seniority at any age at the time ofseparation from employment with the Company, willbe eligible for continuation of Basic Life Insurancecoverage in the amount of $15,000 and AD&Dcoverage in the amount of $7,500. Continuation ofAD&D coverage post employment shall beconsistent with eligibility for Retirees as set forthin Volume II.

B. WORK RELATED DEATH BENEFIT:

The work related death benefit coverage will be based on theamount of Accidental Death and Dismemberment (AD&D)then in force for In-Progression Employees of $22,500.

C. ACCIDENT AND SICKNESS (A&S) BENEFITS:

• Eligibility- Accident and Sickness Benefits and Extended

Disability Benefits coverage under the Group Lifeand Disability Insurance Program will apply on theday after the Employee acquires one year ofseniority.

• Duration:- 1 year seniority but less than 3 years seniority - 26

weeks.- 3 or more years seniority - 52 weeks.

D. EXTENDED DISABILITY BENEFITS:

• Duration:- 1 year seniority but less than 3 years seniority - 13

weeks- 3 years seniority but less than 5 years seniority - 26

weeks- 5 years but less than 10 years seniority – time for

time


339

- 10 or more years seniority – maximum 10 years orage 65 whichever comes first

- At the end of the month in which the maximum EDBamount is payable, the Employee’s coverage forhealth care will cease. Life Insurance postemployment rules will apply.

SECTION IV: SUPPLEMENTAL UNEMPLOYMENT BENEFIT(SUB) PLAN

• Based on 2015 Plan provisions.SECTION V: PROFIT SHARING PLAN

• Based on 2015 Plan provisions.


340

APPENDIX W

MEMORANDUM OF UNDERSTANDING ALTERNATIVE WORK SCHEDULES

During 2011 Negotiations, the parties discussed the importance ofalternative work schedules (AWS) to meet changing customerdemand, maximize the utilization of our facilities, and ensure thatwe have the flexibility to respond quickly to market fluctuations.

Alternative Work Schedules have a long and successful history atFord Motor Company. Both parties acknowledge the mutualbenefits derived from such schedules. These benefits include but arenot limited to increased employment levels and greater job security,improved work-life balance, enhanced plant utilization, expandedproduction capability, improved asset utilization, increasedprofitability, and focused responsiveness to customer demand.

The parties also recognize that alternative work schedules must beflexible enough to provide local parties the ability to implement aschedule that meets the requirements of the business and supportsthe unique operating conditions and workforce makeup of theirfacility. Consequently, there are key principles that will govern thefuture establishment and use of alternative work schedules. Theseprinciples are as follows:

• Provisions of an alternative work schedule agreement maydiffer from the provisions of the Master Agreement;however, the agreement as a whole generally should neitheradvantage nor disadvantage either party as compared to atraditional schedule.

• Pay and compensation practices for AWS schedulesidentified in this Appendix should not differ among plantsusing the same pattern. For example, employees on the samealternative work schedule at two different facilities should begoverned by the same overtime premium provisions.

• Employees will receive premium time when they work ontheir regular day(s)off (RDO) provided they have firstworked and/or been compensated for their base schedule.Where an employee’s regular day off falls on a Sunday,

APPENDIX W MEMORANDUM OF UNDERSTANDINGALTERNATIVE WORK SCHEDULES

341

and the employee works, those hours will be compensableper Article IX, Section 10 of the Master Agreement,without meeting the base schedule threshold.

The parties acknowledge alternative work schedules are complex. Itis important all employees understand the schedule they may beassigned, including all the provisions associated with that schedule.The information must be clear, concise, and accessible. Thus, theparties have established this Alternative Work Schedule Appendixfor the benefit of all employees.Article 1

I. Effective DateThis Memorandum shall take effect upon ratification of

the 2015 UAW-Ford Collective BargainingAgreement (CBA) (“Effective Date”).

II. Applicability The terms of this Memorandum apply to all employees at

all Ford Motor Company facilities covered by the CBA.This Memorandum does not establish or govern wagerates, wage rate increases, overtime equalization,compensable codes, benefits, shift premiums, or vacationeligibility.

III. Right to Establish When considering an alternative work schedule contained

in this Appendix, local management will notify anddiscuss the business rationale for the change with thelocal Union leadership, the National Ford Department,and Labor Affairs. Following those discussions, theCompany may, with a minimum of fourteen (14) daysnotice, transition between a traditional work scheduleand/or an alternative work schedule selected from thealternative work schedules provided in thisMemorandum.

When considering alternative work schedules not contained in thisAppendix, Local parties may develop unique alternative workschedules that are different in order to address unique operatingissues. Local parties do not have the authority to negotiatecompensation or pay rules. Prior to implementation of a unique


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alternative work schedule, approval in writing is required from theNational Ford Department and Labor Affairs, consistent withAppendix J, Section D of the Collective Bargaining Agreement.Article 2I. Four 10 Hour Shift Agreementa. Schedule

The AWS shall consist of a regular forty (40) hour weeklywork schedule, starting on Monday of each week, based onfour (4) ten (10) hour straight-time working days as follows:

If production requirements exceed forty (40) hours per week,the plant will work the traditional, five (5) day work schedule,and all current provisions of the CBA will apply. TheCompany will ensure that employees are notified by Thursdayof the prior week of the requirement for the additional day ofproduction.

b. Overtime PremiumsThe base schedule for this pattern is forty (40) hours workedand/or compensated; RDO premiums will not apply until thisthreshold is reached.

Hours worked and/or compensated in excess of forty (40) perweek will be paid as follows:

• Time and one-half for all hours on the first and secondRegular Day Off (RDO)

• Double time for all hours on the third RDO• RDO Premiums are determined by the RDO day• Time and one-half is paid for hours worked in excess of

ten (10) straight time hours unless the employee qualifiesfor double time.

c. Holiday Pay• Employees who meet all of the General Eligibility Rules

outlined in Article IX, Section 22 of the CBA will be paidten (10) hours at their regular straight-time hourly rate


343

Mon1

Tues2

Weds3

Thu4

Fri(RDO-1)

Sat(RDO-2)

Sun(RDO-3)

10 hoursstraighttime




RDO RDO RDO

including shift premium, but excluding overtimepremium for each holiday falling on a day when theyotherwise would have been scheduled to work.

• On a holiday when they would not otherwise bescheduled to work, employees will be paid eight (8) hoursat their regular straight-time hourly rate.

• All hours worked on the holiday that fall on a regular dayof work (RDW) will be paid at double time. In addition,up to ten (10) straight time hours of holiday pay may bepaid if eligible.

• All hours worked on the holiday that fall on an RDO willbe paid at double time. In addition, up to eight (8) straighttime hours of holiday pay may be paid if eligible.

• Holiday hours are midnight to midnight.• Holiday pay for the full week of holidays between

Christmas and New Year’s will not exceed forty (40)straight-time hours of pay.

d. Bereavement PayIn situations where bereavement pay is appropriate, theprovisions of Article IX, Section 19 of the CBA will beapplicable except an eligible employee will receivebereavement pay of up to ten (10) straight-time hours, for eachregularly scheduled workday up to three (3) days for aqualifying immediate family member, or five (5) regularlyscheduled days of work up to forty (40) hours for the death ofa current spouse, parent, child, stepchild, or in the case ofmultiple deaths of members of the employee’s immediatefamily.

e. Jury Duty and Short-Term Military LeaveJury duty pay and short-term military pay will be compensatedon the basis of the amount of wages the employee otherwisewould have earned, ten (10) hours per day up to forty (40)hours a week less the amount of earnings received from thecourt, government, or military for that same time period. Allother provisions of Article IX, Section 18 and 20 of the CBAapply.

f. Vacation, Excused Absence Allowance, and Family DaysVacation and Excused Absence Allowance days will be paid


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based on the regular schedule, up to forty (40) straight timehours per week. Half days will be in increments of five (5)hours and full days will be in increments of ten (10) hours.Family days will be based on the regularly scheduled workday, up to ten (10) straight time hours. All other provisions ofArticle IX, Section 24 (i) of the CBA apply.

Article 3I. Four Crew, Two Shift Agreement

a. Schedule The AWS shall consist of two (2) twelve (12) hour shifts

seven (7) days a week, using four (4) crews of employees,with each crew working four (4) days one week and three(3) days the next week as follows:

3 Day Work Week

4 Day Work Week

b. Overtime Premiums The base schedule for the three (3) day work week is

(thirty six) 36 hours worked and/or compensated. Thebase schedule for the four (4) day work week is forty


345

Mon1

Tues(RDO-1)

Weds(RDO-2)

Thu2

Fri3

Sat(RDO-3)

Sun(RDO-4)

12

10 hoursstraighttime, 2hours attime andone-half

RDO RDO

12


12


RDO RDO

Mon(RDO-1)

Tues1

Weds2

Thu(RDO-2)

Fri(RDO-3)

Sat3

Sun4

RDO

12


12


RDO RDO

12


12

10 hoursstraighttime, 2hours atdouble time

eight (48) hours worked and/or compensated. RDOpremiums will not apply until these thresholds arereached.

Hours worked and/or compensated in excess of the baseschedule per week will be paid as follows:

• Time and one-half for all hours on the first and secondRegular Day Off (RDO)

• Double time for all hours on the third and fourth RDO• RDO Premiums are determined by the RDO day• Time and one-half is paid for hours worked in excess of

ten straight time hours unless the employee qualifies fordouble time.

• Double time is paid for hours worked in excess of ten (10)straight time hours on the Sunday in the four (4) dayweek.

c. Holiday Pay• Employees who meet all of the General Eligibility

Rules outlined in Article IX, Section 22 of the CBAwill be paid twelve (12) hours at their regularstraight-time hourly rate including shift premium butexcluding overtime premium for each holiday fallingon a day when they otherwise would have beenscheduled to work.

• On a holiday when they would not otherwise bescheduled to work, such employees will be paideight (8) hours at their regular straight-time hourlyrate.

• All hours worked on the holiday that fall on a regularday of work (RDW) will be paid at double time. Inaddition, up to twelve (12) straight time hours ofholiday pay may be paid if eligible.

• All hours worked on the holiday that fall on an RDOwill be paid at double time. In addition, up to eight(8) straight time hours of holiday pay may be paid ifeligible.

• Holiday hours are midnight to midnight.


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• Holiday pay for the full week of holidays betweenChristmas and New Year’s will not exceed forty (40)straight-time hours of pay.

d. Bereavement Pay In situations where bereavement pay is appropriate, the

provisions of Article IX, Section 19 of the CBA will beapplicable except an eligible employee will receivebereavement pay of up to twelve (12) straight-time hours,for each regularly scheduled workday up to three (3) daysfor a qualifying immediate family member, or five (5)regularly scheduled days of work up to forty (40) hoursfor the death of a current spouse, parent, child, stepchild,or in the case of multiple deaths of members of theemployee’s immediate family. For purposes of three (3)day bereavement only, if an employee has not receivedforty (40) hours pay and/or compensated hours, theemployee will be offered opportunities which mayinclude overtime to ensure forty (40) hours of pay duringthe week in which he receives bereavement pay.

e. Jury Duty and Short-Term Military Leave Jury duty pay and short-term military pay will be

compensated on the basis of the amount of wages theemployee otherwise would have earned, twelve (12)hours per day up to forty (40) hours a week less theamount of earnings received from the court, government,or military for that same time period. All other provisionsof Article IX, Section 18 and 20 of the CBA apply.

f. Vacation, Excused Absence Allowance, and FamilyDays

Vacation and Excused Absence Allowance days will bepaid based on the regular schedule; thirty six (36) straighttime hours for each week of vacation on the three (3) daywork week and forty (40) or forty eight (48) straight timehours for each week of vacation on the four (4) day week.Half days will be in increments of six (6) hours and fulldays will be in increments of twelve (12) hours. Familydays will be based on the regularly scheduled work day,


347

up to twelve (12) straight time hours. All other provisionsof Article IX, Section 24 (i) of the CBA apply.

g. Other Premiums Notwithstanding Article IX, Section 6 of the CBA,

employees assigned to the four crew, two shift AWS willbe paid a two and one-half percent premium.

Article 4I. Seven on Seven Off

a. Schedule The AWS shall consist of two shifts of between ten (10)

and twelve (12) hour shifts seven days a week, using four(4) crews of employees, with each crew working four (4)days or three (3) days a week as follows:

Mon - Thurs

Fri, Sat, Sun

b. Overtime Premiums Article IX, Section 12 Overtime Premiums-Seven-Day

Operations will apply except as otherwise noted below.The base schedule in the example provided for the three(3) day work week is thirty four (34) hours workedand/or compensated. The base schedule for the four (4)day work week is forty (40) hours worked and/orcompensated. RDO premiums will not apply until thesethresholds are reached. The base schedule threshold will


348

Mon1

Tues2

Weds3

Thu4

Fri(RDO-1)

Sat(RDO-2)

Sun(RDO-3)





RDO RDO RDO

Mon(RDO-1)

Tues(RDO-2)

Weds(RDO-3)

Thu(RDO-4)

Fri1

Sat2

Sun3

RDO RDO RDO RDO 10 hoursstraighttime

1210 hourstime andone quarter2 hours attime andone half

1210 hourstime andone quarter2 hours attime andone half

differ if the regular base schedule hours are less thanthose provided in the example.

Hours worked and/or compensated in excess of the baseschedule per week will be paid as follows:• Time and one-half for all hours on the first and

second Regular Day Off (RDO), double time for allhours on the third and fourth RDO

• RDO Premiums are determined by the RDO day• Time and one-quarter is paid for the first ten (10)

hours worked on Saturday and Sunday unless theemployee qualifies for time and one-half or doubletime

• Time and one-half is paid for hours worked in excessof ten (10) straight time hours unless the employeequalifies for double time

c. Holiday Pay• Consistent with Article IX, Section 12 and Section

22 (g), Employees who meet all of the GeneralEligibility Rules outlined in Article IX, Section 22 ofthe Master Agreement will be paid between ten (10)and twelve (12) hours at their regular straight-timehourly rate including shift premium but excludingovertime premium for each holiday falling on a daywhen they otherwise would have been scheduled towork. The hours paid will be based on the regularbase schedule hours.


• All hours worked on the holiday that falls on aregular day of work (RDW) will be paid at doubletime. In addition, straight time hours of holidaypay up to the employee’s base hour schedule forthe RDW, may be paid if eligible.

• All hours worked on the holiday that falls on anRDO will be paid at double time. In addition, up toeight (8) straight time hours of holiday pay may bepaid if eligible.


349



provisions of Article IX, Section 19 of the CBA will beapplicable except an eligible employee will receivebereavement pay of up to twelve (12) straight-time hours,for each regularly scheduled workday up to three (3) daysfor a qualifying immediate family member, or five (5)regularly scheduled days of work up to forty (40) hoursfor the death of a current spouse, parent, child, stepchild,or in the case of multiple deaths of members of theemployee’s immediate family. The hours paid will bebased on the regular base schedule hours. For purposes ofthree (3) day bereavement only, if an employee has notreceived forty (40) hours pay and/or compensated hours,the employee will be offered opportunities which mayinclude overtime to ensure forty (40) hours of pay duringthe week in which he receives bereavement pay.


compensated on the basis of the amount of wages theemployee otherwise would have earned, twelve (12)hours per day up to forty (40) hours a week less theamount of earnings received from the court, government,or military for that same time period. All other provisionsof Article IX, Section 18 and 20 of the CBA apply. Thehours paid will be based on the regular base schedulehours.


Vacation and Excused Absence Allowance days will bepaid based on the regular schedule. Half days will be inincrements of six (6) hours and full days will be inincrements of twelve (12) hours or up to forty (40)straight time hours for each week of vacation. Familydays will be based on the regularly scheduled work day,


350

up to twelve (12) straight time hours. The half day andfull day increments will differ if the regular base schedulehours are less than twelve (12) hours (e.g. ten (10) hours).All other provisions of Article IX, Section 24 (i) of theCBA apply.

g. Other Premiums Consistent with Article IX, Section 21 of the CBA,

employees assigned to the seven on seven off AWS willbe paid a seven-day operations bonus.

Article 5I. Four on Four Off

a. ScheduleThe AWS shall consist of two shifts of between eleven and

one-half (11.5) and twelve (12) hours seven days a week,using two (2) crews of employees, with each crewworking four (4) days or three (3) days a week as follows:

Schedule Runs On An Eight Week Cycle


351

Mon1

Tues2

Weds3

Thu4

Fri(RDO-1)

Sat(RDO-2)

Sun(RDO-3)





RDO RDO RDO

Mon(RDO-1)

Tues1

Weds2

Thu3

Fri4

Sat(RDO-2)

Sun(RDO-3)

RDO





RDO RDO


352

Mon(RDO-1)

Tues(RDO-2)

Weds1

Thu2

Fri3

Sat4

Sun(RDO-3)

RDO RDO




1210 hourstime andone quarter,2 hours attime andone-half

RDO

Mon(RDO-1)

Tues(RDO-2)

Weds(RDO-3)

Thu1

Fri2

Sat3

Sun4

RDO RDO RDO





Mon(RDO-1)

Tues(RDO-2)

Weds(RDO-3)

Thu(RDO-4)

Fri1

Sat2

Sun3

RDO RDO RDO RDO




Mon1

Tues(RDO-1)

Weds(RDO-2)

Thu(RDO-3)

Fri(RDO-4)

Sat2

Sun3


RDO RDO RDO RDO



Mon1

Tues2

Weds(RDO-1)

ThuRDO-2)

Fri(RDO-3)

Sat(RDO-4)

Sun1



RDO RDO RDO RDO


Mon1

Tues2

Weds3

Thu(RDO-1)

Fri(RDO-2)

Sat(RDO-3)

Sun(RDO-4)




RDO RDO RDO RDO


Operations will apply except as otherwise noted below.The base schedule in the example provided for the three(3) day work week is thirty six (36) hours worked and/orcompensated. The base schedule for the four (4) daywork week is forty eight (48) hours worked and/orcompensated. RDO premiums will not apply until thesethresholds are reached. The base schedule threshold willdiffer if the work hours are less than twelve (12) hours(e.g. eleven and one-half (11.5) hours).

Hours worked and/or compensated in excess of the baseschedule per week will be paid as follows:

• Time and one-half for all hours on the first andsecond Regular Day Off (RDO), double time for allhours on the third and fourth RDO.

• RDO Premiums are determined by the RDO day• Time and one-quarter is paid for the first ten (10)

hours worked on Saturday and Sunday unless theemployee qualifies for time and one-half or doubletime

• Time and one-half is paid for hours worked in excessof ten (10) straight time hours unless the employeequalifies for double time.


22 (g), Employees who meet all of the GeneralEligibility Rules outlined in Article IX, Section 22 ofthe Master Agreement will be paid twelve (12) hoursat their regular straight-time hourly rate includingshift premium but excluding overtime premium foreach holiday falling on a day when they otherwisewould have been scheduled to work. The hours paidwill be based on the regular base schedule hours.



353

• All hours worked on the holiday that falls on aregular day of work (RDW) will be paid at doubletime. In addition, up to twelve (12) straight timehours of holiday pay may be paid if eligible.




provisions of Article IX, Section 19 of the CBA will beapplicable except an eligible employee will receivebereavement pay of up to twelve (12) straight-time hours,for each regularly scheduled workday up to three (3) daysfor a qualifying immediate family member, or five (5)regularly scheduled days of work up to forty (40) hoursfor the death of a current spouse, parent, child, stepchild,or in the case of multiple deaths of members of theemployee’s immediate family. The hours paid will bebased on the regular base schedule hours. For purposes ofthree (3) day bereavement only, if an employee has notreceived forty (40) hours pay and/or compensated hours,the employee will be offered opportunities which mayinclude overtime to ensure forty (40) hours of pay duringthe week in which he receives bereavement pay.


compensated on the basis of the amount of wages theemployee otherwise would have earned, twelve (12)hours per day up to forty (40) hours a week less theamount of earnings received from the court, government,or military for that same time period. All other provisionsof Article IX, Section 18 and 20 of the CBA apply. Thehours paid will be based on the regular base schedulehours.


354


Vacation and Excused Absence Allowance days will bepaid based on the regular schedule. Half days will be inincrements of six (6) hours and full days will be inincrements of twelve (12) hours or up to forty (40)straight time hours for each week of vacation. Familydays will be based on the regularly scheduled work day,up to twelve (12) straight time hours. All other provisionsof Article IX, Section 24 (i) of the CBA apply.


employees assigned to the four on four off AWS will bepaid a seven-day operations bonus.

Article 6I. Three Crew Agreement

a. Schedule The AWS shall consist of a regular forty (40) hour weekly

work schedule, with three (3) crews, based on four (4)straight-time ten (10) hour working days as follows:

A Crew

B Crew

C Crew


355

Mon1

Tues2

Weds3

Thu4

Fri(RDO-1)

Sat(RDO-2)

Sun(RDO-3)





RDO RDO RDO

Mon(RDO-1)

Tues1

Weds2

Thu3

Fri4

Sat(RDO-2)

Sun(RDO-3)

RDO 10 hoursstraighttime




RDO RDO

Mon1

Tues(RDO-1)

Weds(RDO-2)

Thu(RDO-3)

Fri2

Sat3

Sun4


RDO RDO RDO 10 hoursstraighttime

10 hours at time and onequarter

10 hours at time and onequarter

b. Overtime Premiums The base schedule for this pattern is forty (40) hours

worked and/or compensated; RDO premiums will notapply until this threshold is reached. Hours worked and/orcompensated in excess of forty (40) per week will be paidas follows:• Time and one-half for all hours on the first and

second Regular Day Off (RDO)• Double time for all hours on the third RDO• RDO Premiums are determined by the RDO day• Time and one-half is paid for hours worked in excess

of ten (10) straight time hours unless the employeequalifies for double time.

c. Holiday Pay• Employees who meet all of the General Eligibility

Rules outlined in Article IX, Section 22 of theMaster Agreement will be paid ten (10) hours at theirregular straight-time hourly rate including shiftpremium, but excluding overtime premium for eachholiday falling on a day when they otherwise wouldhave been scheduled to work.

• On a holiday when they would not otherwise bescheduled to work, employees will be paid eight (8)hours at their regular straight-time hourly rate.

• All hours worked on the holiday that fall on a regularday of work (RDW) will be paid at double time. Inaddition, up to ten (10) straight time hours of holidaypay may be paid if eligible.

• All hours worked on the holiday that fall on an RDOwill be paid at double time. In addition, up to eight(8) straight time hours of holiday pay may be paid ifeligible.

• Holiday hours are midnight to midnight.• Holiday pay for the full week of holidays between

Christmas and New Year’s will not exceed forty (40)straight-time hours of pay.


provisions of Article IX, Section 19 of the CBA will be


356

applicable except an eligible employee will receivebereavement pay of up to ten (10) straight-time hours, foreach regularly scheduled workday up to three (3) days fora qualifying immediate family member, or five (5)regularly scheduled days of work up to forty (40) hoursfor the death of a current spouse, parent, child, stepchild,or in the case of multiple deaths of members of theemployee’s immediate family.


compensated on the basis of the amount of wages theemployee otherwise would have earned, ten (10) hoursper day up to forty (40) hours a week less the amount ofearnings received from the court, government, or militaryfor that same time period. All other provisions of ArticleIX, Section 18 and 20 of the CBA apply.


Vacation and Excused Absence Allowance days will bepaid based on the regular schedule, up to forty (40)straight time hours per week. Half days will be inincrements of five (5) hours and full days will be inincrements of ten (10) hours. Family days will be basedon the regularly scheduled work day, up to ten (10)straight time hours. All other provisions of Article IX,Section 24 (i) of the CBA apply.

g. Other Premiums Employees assigned to the C Crew will be paid a ten

percent premium for all hours worked on regularlyscheduled work days regardless of shift, excluding theSaturday shift and Sunday shift, which will be paid attime and one quarter for all hours worked.

Article 7I. Three Twelve Hour Shifts Agreement

a. Schedule The AWS shall consist of two (2) twelve (12) hour shifts

with two (2) consecutive days a week and one (1) floatingday a week, each crew working three (3) days a week asfollows:


357


Operations will apply except as otherwise noted below.The base schedule for the work week is thirty six (36)hours worked and/or compensated. RDO premiums willnot apply until this threshold is reached.

Hours worked and/or compensated in excess of the baseschedule per week will be paid as follows:• Time and one-half for all hours on the first and

second Regular Day Off (RDO), double time for allhours on the third and fourth RDO

• RDO Premiums are determined by the RDO day• Time and one-quarter is paid for the first ten hours

worked on Saturday and Sunday unless theemployee qualifies for time and one-half or doubletime

• Time and one-half is paid for hours worked in excessof ten (10) straight time hours unless the employeequalifies for double time.


22 (g), Employees who meet all of the GeneralEligibility Rules outlined in Article IX, Section 22 ofthe Master Agreement will be paid twelve (12) hoursat their regular straight-time hourly rate includingshift premium but excluding overtime premium foreach holiday falling on a day when they otherwisewould have been scheduled to work.



358

Mon(RDO-1)

Tues(RDO-2)

Weds1

Thu(RDO-3)

Fri(RDO-4)

Sat2

Sun3

RDO RDO


RDO RDO



• All hours worked on the holiday that falls on aregular day of work (RDW) will be paid at doubletime. In addition, up to twelve (12) straight timehours of holiday pay may be paid if eligible.




provisions of Article IX, Section 19 of the CBA will beapplicable except an eligible employee will receivebereavement pay of up to twelve (12) straight-time hours,for each regularly scheduled workday up to three (3) daysfor a qualifying immediate family member, or five (5)regularly scheduled days of work up to forty (40) hoursfor the death of a current spouse, parent, child, stepchild,or in the case of multiple deaths of members of theemployee’s immediate family. For purposes of three (3)day bereavement only, if an employee has not receivedforty (40) hours pay and/or compensated hours, theemployee will be offered opportunities which mayinclude overtime to ensure forty (40) hours of pay duringthe week in which he receives bereavement pay.


compensated on the basis of the amount of wages theemployee otherwise would have earned, twelve (12)hours per day up to forty (40) hours a week less theamount of earnings received from the court, government,or military for that same time period. All other provisionsof Article IX, Section 18 and 20 of the CBA apply.


359


Vacation and Excused Absence Allowance days will bepaid based on the regular schedule. Half days will be inincrements of six (6) hours and full days will be inincrements of twelve (12) hours up to forty (40) straighttime hours. Family days will be based on the regularlyscheduled work day, up to twelve (12) straight timehours. All other provisions of Article IX, Section 24 (i) ofthe CBA apply.


employees assigned to the three twelve hour schedule willbe paid a seven-day operations bonus.

Article 8I. Unique Situations

a. Christmas Holiday Scheduling During these negotiations, the parties discussed

employees assigned to an alternative work schedule withSaturday and/or Sunday as a regularly scheduled workday. We recognize the impact this will have on theChristmas Holiday period production schedule during thecourse of this agreement, specifically, the waiver ofArticle IX, Section 22 (a)(3)(ii) of the CBA. This willresult in the plant being scheduled to run and/or supportproduction as follows:

Saturday, December 26, 2015Sunday, December 27, 2015Saturday, December 24, 2016Sunday, December 25, 2016Saturday, December 30, 2017Sunday, December 31, 2017Saturday, December 29, 2018Sunday, December 30, 2018

The Company recognizes the issues inherent with runningproduction on the aforementioned days, and agrees to notschedule production on those days provided the localparties continue to work together, as they have in the past,


360

to develop and execute a volume recovery plan thatmakes up the lost units prior to the time off specifiedabove.

For pay periods ending December 27, 2015, December25, 2016, December 24, 2017, and December 30, 2018,the Company agrees to pay an employee an amount equalto the difference between the total number of hours paid,including overtime, plus all hours made available to theemployee to be paid and forty (40) straight time hours.Should any issues arise surrounding this agreement, theymay be referred to the National Ford Department andLabor Affairs.

b. Weekend Shifts Management shall have the right to designate, during a

model year period, Saturday shifts and Sunday shifts asmandatory overtime workdays. Because the opencapacity in a three crew operation is on both Saturday andSunday, the number of mandatory Saturday and Sundayshifts per crew shall be consistent with the number ofmandatory Saturday shifts outlined in Appendix H Part A,Section 4 and Appendix H Part A, Section 3 will bewaived.

The parties agree that these mandatory Saturday andSunday shifts shall be up to ten (10) hours in length.Local management and the local union will develop aplan to utilize volunteers for mandatory overtimeweekend shifts. In the absence of enough qualifiedvolunteers, employees on the B Crew will be mandatorilyscheduled on the Saturday shift; employees on the ACrew will be mandatorily scheduled on the Sunday shift.

All other Saturdays and Sundays are voluntary, except asotherwise provided in Appendix H Section 7, andemployees may decline to work any other Saturday orSunday during such model year, provided (i) he shallhave notified the Company in accordance with Paragraph16 and (ii) he has not been absent for any reason on anyday during the week preceding any Saturday/Sundaywhich he elects not to work.


361

c. Hours in Excess of Ten Per Shift/Crew It was agreed that the Company may schedule mandatory

production hours up to 10.7 hours per shift/crew to meetten (10) hour production schedules, except for the CCrew which may be scheduled mandatory productionhours up to 10.5 hours. It is understood that scheduledproduction hours beyond 10.7 per shift/crew, and 10.5for the C Crew, require mutual agreement of the localunion and management.

Disputes involving the application of this provision willbe reviewed by the National Ford Department and LaborAffairs.

d. Altering the Schedule The parties recognize that there may be occasions when it

may be beneficial to alter the work schedule at AWSlocations, resulting in the movement of a scheduled workday to another more convenient period, particularlysurrounding holiday weekends. It is understood that thelocal parties may jointly agree to such changes, providedthey do not result in a decrease in productivity or capacityor increase in costs.

e. Benefits Benefits for employees on an alternative work schedule

will continue to be administered by the Memorandum ofUnderstanding entitled, “Handling of Benefits forAlternative Work Schedule Employees”.

f. Changes to Existing Patterns and FutureAdministration

The parties recognize that this Appendix has implicationsto existing alternative work schedules. As soon aspracticable after ratification, the National FordDepartment and Labor Affairs will review theadjustments to current schedules including overtimepremiums and base schedule requirements with the localparties to ensure that employees are compensatedconsistent with the intent of this Appendix.


362

Local Labor Relations will continue to be responsible forensuring that the appropriate departments (i.e. TWOS,Central Timekeeping, and Employee Payments) receiveany programming changes to payroll systems in a timelymanner.

Except as specifically provided in this Memorandum, allprovisions of the 2015 CBA, Supplementary Agreementsand understandings, and local agreements existing as ofthe Effective Date shall apply to employees covered bythis Memorandum.

Disputes, local and national, involving the application orinterpretation of this Memorandum and/or locallydeveloped alternative work schedules will be reviewed bythe National Ford Department and Labor Affairs.


363

*SETTLEMENT AGREEMENT

On this 29th day of May, 1949, Ford Motor Company andInternational Union, United Automobile, Aircraft and AgriculturalImplement Workers of America, C.I.O., hereby agree that ...:No. 1. To meet its daily production schedules, the Company willmaintain each line at a constant speed. The Company will space unitsto provide a uniform flow of work for individual employees. It isrecognized that this uniform flow of work contemplates the expectednormal ratio of body types upon which the work standards arecomputed and the regular work assignments are made. On request,local Management will notify the Union of its expected dailyproduction schedules and of the line speeds to achieve such schedules.No. 2. The following question, with respect to the lines specified inthe Union’s notices of dispute at the Lincoln and Dearborn AssemblyPlants dated March 11 and April 14, 1949 shall be submitted fordecision by an arbitrator or arbitration panel as provided below:“Does the Company under the contract, on the basis of health andsafety or otherwise, have the right to require an employee to performhis work assignment on any unit in less time than the Company’stime study shows for his assignment, provided the employee is notassigned more than 480 minutes of work as measured by time studyin an eight hour shift?”The decision of the arbitrator or arbitration panel, as the case maybe ... shall be in writing, and shall be binding upon both parties.No. 3. When additional work is required because the mix of bodytypes differs from the expected normal ratio upon which the workstandards are computed and the regular work assignments are made,the Company will make adjustments where necessary by one or moreof the following means:

(a) addition of manpower(b) greater spacing of units(c) reducing speed of line(d) stopping line momentarily(e) adjusting employee work assignments

No. 4. The normal amount of work required of employees shall notbe increased because of absenteeism.

* As amended October 20, 1961.

EXHIBIT II SKILLED TRADE WORK ASSIGNMENTS

364

August 15, 1949

AGREEMENT

Ford Motor Company and International Union, United Automobile,Aircraft and Agricultural Implement Workers of America, agree thatwhere weekly pay periods are presently in effect and as the variousplants and branches adopt the weekly pay period, the following rulesshall be followed with respect to transfers:

When employees covered under the present (277) “Three DaysTransfer Agreement” are reclassified on a Form 277 (Change ofOccupation), the resultant change in rate shall take effect the firstday of the first pay period following the reclassification date. Thereclassification date shall be considered the date the employee startedworking on the new classification; but this shall not constitute awaiver of Article VII Section 13A.*

Forms 277 shall be processed in each plant in the manner nowfollowed at the Rouge Plant. All 277’s where a badge change is notinvolved will be made in triplicate. The original copy shall beretained by the Rate Adjuster, one duplicate copy shall be madeavailable for the Supervisor and the other duplicate copy shall bemade available for the Union representative. In cases where badgechanges are involved the 277 will continue to be made up in singlecopy and presented to the Union representative for his signature, withthe understanding he can take from such 277 Form any informationhe deems necessary. As in the past no 277 will be considered asofficial until it carries the initial of the Rate Adjuster in plants whereRate Adjusters are employed. In plants where Rate Adjusters are notemployed the forms will carry the initials of the employee designatedby the manager as having such authority to check such forms. TheUnion shall be notified promptly of the rejection of any Form 277.

* (The corresponding section of the current Collective Bargaining Agreement, towhich this now is deemed to refer, is Article VII, Section 24(a).)

EXHIBIT II SKILLED TRADE WORK ASSIGNMENTS

365

This agreement is subject to ratification by the membership of theUnion, and shall be submitted for ratification promptly.

By FORD MOTOR COMPANYM. E. BeamanManton M. CumminsMalcolm L. DeniseE. M. BakerClarence C. DonovanKarlton W. PierceWilliam C. Ford

By INTERNATIONAL UNION, U.A.A.A.I. (CIO)Ken BannonGene PratoDavid H. HarmonB. F. TyraJames B. ConwayWilliam M. PayneJames H. WarrenFrank GuerroEdward H. JirousekJames RomanowNeil RiceWilliam NevilleG. H. WynneAndrew D. NeidefferDon Primo

MAINTENANCE AND CONSTRUCTION WORK

366

INDEX TOCOLLECTIVE BARGAINING AGREEMENT

Article Section Page

— A —Accumulation of Seniority — OtherExcluded Employees .............................. VIII 35 97Accumulation of Seniority —Supervisors .............................................. VIII 34 96Acquiring Seniority; ProbationaryEmployees................................................ VIII 4 72Acquiring Seniority................................ VIII 4(a) 72Rights to Transfer and DischargeProbationary Employees .................... VIII 4(b) 72

Probationary Employees — Layoff andRecall .................................................. VIII 4(c) 72

Probationary Employees — MedicalLeave .................................................. VIII 4(d) 73

Rights of Probationary Employees ........ VIII 4(e) 73Addressing of Notices................................ XI 4 140Adjustments for Population Changes .... VI 7 29Agency Shop .............................................. II 4 10Alternate Committeeperson .................... VI 15 45Application of Agreement to NewUnits ........................................................ I 4 8Assignment of Overtime Work ................ IV 6 21Authorization Forms ................................ III 2 11

— B —Back Pay .................................................... VII 24 67

Limitations on Retroactivity .................. VII 24(a) 67Time for Payment .................................. VII 24(b) 67Computation .......................................... VII 24(c) 68

Badges and Insignia .................................. X 2 134Plant Protection Employees .................. X 2(a) 134Hourly-Rated Employees ...................... X 2(b) 134

Bereavement Pay ...................................... IX 19 108Briefs and Stipulations.............................. VII 11 54

Briefs in Umpire Cases.......................... VII 11(a) 54Stipulations of Facts and Issues ............ VII 11(b) 55

367

INDEX COLLECTIVE BARGAINING AGREEMENT


— C —Call-in Pay.................................................. IX 5 102Certain Other Leaves of Absence ............ VIII 31 92

Union Leaves of Absence .................... VIII 31(a) 92Public Office Leaves of Absence .......... VIII 31(b) 93Peace Corps Leaves of Absence ............ VIII 31(c) 93Credit Union Leaves of Absence .......... VIII 31(d) 93Educational Leaves of Absence ............ VIII 31(e) 94

Check-off of Membership Dues;Employee Authorization; Revocation .. III 1 11Collection in Succeeding Months ............ III 4 12Company Responsibility .......................... IV — 15Compensation of Full-timeRepresentatives ...................................... VI 14 44General .................................................. VI 14(a) 44Promotion/NonpromotionalOpportunities.......................................... VI 14(b) 44Incentive Plans ...................................... VI 14(c) 44

Computation of Premium Time;Pyramiding .............................................. IX 13 104Computation of Working Time................ IX 14 105

— D —Deduction of Initiation Fees .................... III 5 13Deduction of Overpayments .................... IX 17 106Direct Referral of Disputes to Umpire .... VIII 15 80

Groupings of Jobs .................................. VIII 15(a) 80Interpretation of Occupational GroupClauses ................................................ VIII 15(b) 80

Discharge for Failure to Tender Duesor Initiation Fee ...................................... II 2 9Disciplinary Cases .................................... VII 5 52

Notice of Action Taken.......................... VII 5(a) 52Waiver of Representation ...................... VII 5(b) 52Time Limit on Grievances .................... VII 5(c) 52Stage at Which Grievance Initiated ...... VII 5(d) 52

Discipline and Discharge .......................... IV 3 17Discipline for Violations of Sections 3and 4 ........................................................ V 5 25

368



Discontinuance of Work .......................... VIII 25 87Classification or Operation Within Unit VIII 25(a) 88Occupational Group Within Unit .......... VIII 25(b) 88Seniority Unit Within Multi-Unit PlantArea .................................................... VIII 25(c) 88

Time Limit on Transfers — Rouge Area.......................................... VIII 25(d) 88

Employees Laid Off — PlacementConsideration at Other Plants ............ VIII 25(e) 88

Disposition of Cases Beyond Powers ofUmpire .................................................... VII 17 58Dues and Assessments .............................. III — 11Duration of Agreement ............................ XI — 139

— E —Employee Support Services ProgramRepresentative ........................................ VI 10 35Number; Appointment .......................... VI 10(a) 35Notice to Company ................................ VI 10(b) 35Functions................................................ VI 10(c) 35Representative Training ........................ VI 10(d) 36Duty to Remain in Unit; Reporting toSupervisor............................................ VI 10(e) 36

Hours on Company Time ...................... VI 10(f) 36Employees on Rolls June 20, 1941 —Seniority Break Period .......................... VIII 2 71Employees With Disabilities .................... VIII 27 90Equal Application of Agreement.............. X 9 136Expiration Date ........................................ XI 2 139Extension of and Failure to Meet TimeLimits ...................................................... VII 25 68

— F —Fair Day's Work ........................................ V 1 24Finality of Umpire Awards;Exclusiveness of Remedy ...................... VII 19 58First Stage Grievances .............................. VII 2 46

Initial Oral Discussion .......................... VII 2(a) 46Second Oral Discussion ........................ VII 2(b) 46

369


370


Disposition of Grievances...................... VII 2(c) 47Referral to Unit Committee .................. VII 2(d) 47

Fourth Stage — Appeal to Umpire.......... VII 8 53Time for Appeal .................................... VII 8(a) 54Notice of Appeal — To Whom Given .. VII 8(b) 54Notice of Appeal — Content ................ VII 8(c) 54

— G —General Grievances .................................. VII 6 53General ...................................................... IV 1 15Government Approval of Awards WhereRequired .................................................. VII 18 58Grievance Procedure ................................ VII — 45

— H —Health and Safety ...................................... X 4 134Holiday Premium ...................................... IX 11 104

— I —Identification of Workweek ...................... IX 8 103Inflation Bonus Lump Sum Payment...... IX 4 101Insurance.................................................... IX 27 128

The Insurance Program.......................... IX 27(a) 128Financing................................................ IX 27(b) 129Administration ...................................... IX 27(c) 129Named Fiduciary and AIIocation ofResponsibilities .................................. IX 27(d) 129

Exclusion from Umpire's Powers .......... IX 27(e) 130Effective Dates ...................................... IX 27(f) 130

Intent of Agreement .................................. V 2 24International Representatives —Permission to Enter Plants .................... VII 27 69Introduction .............................................. VII 1 45

— J —Job Security and Outside Contracting.... IV 8 23Jury Duty Pay............................................ IX 18 106


371


— L —Layoff and Recall — Deviations fromSeniority .................................................. IV 7 22Layoff and Recall of Union Officers ...... VIII 19 82Leaves of Absence — Accumulation ofSeniority .................................................. VIII 32 94Limitations on Right to Lock Out .......... V 6 25Limitations on Right to Strike ................ V 4 24Loans .......................................................... VIII 22 85

Within Plants.......................................... VIII 22(a) 85Between Plants ...................................... VIII 22(b) 86

Local Agreements on Deviations.............. VI 5 29Local and Supplementary Agreements .. X 8 136Local Occupational Group Agreements— Approval ............................................ VIII 14 80Local Seniority Agreements .................... VIII 3 71Loss of Seniority ........................................ VIII 5 73Lunch Periods............................................ X 6 135

Length of Period .................................... X 6(a) 135Scheduling.............................................. X 6(b) 135

— M —Medical Leaves of Absence ...................... VIII 30 91Medical Treatment During WorkingHours — Time Allowance ...................... IX 15 105Military Service; Veterans........................ VIII 33 94

Employees Reinstated Prior to October 4, 1993 — Seniority Credit .. VIII 33(a) 94

Reinstatement Following MilitaryService ................................................ VIII 33(b) 95

Reinstatement Following Military Service — Effect of Disability............ VIII 33(c) 95

Leave for Government-ProvidedTraining .............................................. VIII 33(d) 96

Miscellaneous ............................................ X — 134Moving Allowances.................................... IX 28 131

Eligibility .............................................. IX 28(a) 131When Employees are Relocated, TheyWill be Given a Choiceof Relocation Packages ...................... IX 28(b) 131


372


— N —New Classification and Departments ...... I 2 7Notice of Transfer to ExcludedClassification .......................................... III 10 15Notice to Modify or Terminate;Automatic Renewal ................................ XI 3 139Notice to Other Party of Grievance ........Representatives ...................................... VII 26 69Notice to Union of EmployeeRevocations.............................................. III 8 14

— O —Occupational Groupings —"Designated" Jobs .................................. VIII 11 77Jobs Covered.......................................... VIII 11(a) 77Classification Seniority.......................... VIII 11(b) 77Bracketing .............................................. VIII 11(c) 77Bumping into UndesignatedClassifications .................................... VIII 11(d) 78

Bumping into Labor Pool ...................... VIII 11(e) 78Return to Designated Job — DemotedEmployee ............................................ VIII 11(f) 78

Return to Designated Job — Laid-offEmployee ............................................ VIII 11(g) 78

Occupational Groupings — GeneralLabor Pool (Group No. 1)...................... VIII 13 79Classifications Included ........................ VIII 13(a) 79Bumping Within Labor Pool.................. VIII 13(b) 79

Occupational Groupings — General ...... VIII 10 77Occupational Groupings —"Undesignated" Jobs.............................. VIII 12 79Bumping in UndesignatedClassifications .................................... VIII 12(a) 79

Bumping into Labor Pool ...................... VIII 12(b) 79No Bumping into DesignatedClassifications .................................... VIII 12(c) 79

Offers of Work in Other Plants .............. VIII 26 89Overtime Premiums — Seven-DayOperations .............................................. IX 12 104


373


— P —Paid Holiday Plan...................................... IX 22 110

General Eligibility Rules ...................... IX 22(a) 110Sunday Holiday .................................... IX 22(b) 114Saturday Holiday .................................. IX 22(c) 114Employee on Layoff Of Sick Leave...... IX 22(d) 114Employee on Other Leave .................... IX 22(e) 115Employee on Vacation .......................... IX 22(f) 115Seven-Day Operations — Eligibility;Effect of Holiday Work ...................... IX 22(g) 115

Other Operations — Effect of HolidayWork .................................................... IX 22(h) 116

Failure to Perform Holiday WorkAssignment.......................................... IX 22(i) 116

Incentive Employee's ............................ IX 22(j) 116Effect of Unemployment Compensation...................................... IX 22(k) 116

Partial Invalidity of Agreement .............. X 11 137Part-time Representatives — SmallShifts ........................................................ VI 4A 28Pay in Lieu of Vacation ............................ IX 26 128

Employee Denied Vacation.................... IX 26(a) 128Terminated Employee ............................ IX 26(b) 128

Pay Periods in Which Deductions to BeMade ........................................................ III 3 12Personal Leaves of Absence...................... VIII 29 90

Procedure for Obtaining ........................ VIII 29(a) 90Not Over 30 Days .................................. VIII 29(b) 91Over 30 up to 180 Days ........................ VIII 29(c) 91Extension................................................ VIII 29(d) 91Copies to Union .................................... VIII 29(e) 91

Postponement of Action on Grievances .. VII 7 53Powers of Umpire ...................................... VII 16 57

Scope of Powers. .................................. VII 16(a) 57Limitations on Powers .......................... VII 16(b) 57

Preparation of Layoff Lists ...................... VIII 17 82Procedure for Operating OccupationalGroup Seniority ...................................... VIII 9 77Production Standards .............................. IV 4 17

Establishment; Disputes ........................ IV 4(a) 17


374


Enforcement; Discipline ........................ IV 4(b) 19Prohibited Activities .................................. V 3 24Promotions and Nonpromotional J27Transfers .................................................. IV 2 15Promotions ............................................ IV 2(a) 15Nonpromotional Job Transfers .............. IV 2(b) 16

Provisions Applicable to Both Full andPart-time Representatives...................... VI 11 37Functions of District Committeepersons .............................. VI 11(a) 37

Functions of Unit Committee ................ VI 11(b) 37Assignment to Defined Districts............ VI 11(c) 37Notice to Company ................................ VI 11(d) 38Duty to Remain in Plant and Area;Reporting to Supervisors .................... VI 11(e) 38

Chairperson's Privilege to Leave Plant.. VI 11(f) 38Eligibility to Serve as Representative.... VI 11(g) 38

Provisions Applicable to Full-timeRepresentatives ...................................... VI 13 40Assignment of Sufficient Areas ............ VI 13(a) 40Hours on Company Time ...................... VI 13(b) 40Temporary Layoffs — DistrictCommitteeperson ................................ VI 13(c) 42

Temporary Layoffs - UnitCommitteeperson ................................ VI 13(d) 43

Overtime and Temporary LayoffsChairperson Who Is Sole Full-timeRepresentatives.................................... VI 13(e) 43

Temporary Layoffs — Less Than 150Constituents at Work .......................... VI 13(f) 44

Provisions Applicable to Part-timeRepresentatives ...................................... VI 12 39Privilege of Leaving Work .................... VI 12(a) 39Retention During Layoffs ...................... VI 12(b) 39Overtime Work ...................................... VI 12(c) 39

— R —Rate Progression Under Merit Increase Agreement ................................ IX 3 100


375


Ratification of Agreement ........................ XI 1 139Recall .......................................................... VIII 18 82Recasting of Agreement ............................ X 12 138Recognition ................................................ I - 7Recognition; "Contract Unit".................. I 1 7Record of Deduction for Local Unions .. III 7 14Reduction in Force .................................... VIII 16 80

Occupational Group Basis .................... VIII 16(a) 80Ten-Year Employees .............................. VIII 16(b) 80Deviations from Seniority...................... VIII 16(c) 81Deviation from Normal Operation ofOccupational Group or Unit Seniority .............................................. VIII 16(d) 81

Remittal of Deductions to LocalUnions ...................................................... III 6 13Reporting Absences .................................. X 7 136Representation on Company Time .......... VI 2 26Representation .......................................... VI — 25Requests for Additional Deductions ........ III 9 14Requirement of Union Membership........ II 1 9Restrictions on Organizing CertainEmployees................................................ I 3 7Rouge and Michigan Assembly Plant...... VI 6 29

Size of Unit Committee; Handling ofFirst Stage Grievances ........................ VI 6(a) 29

Number of Representatives.................... VI 6(b) 29Rules and Regulations .............................. IV 5 20

— S —Saturday Premium .................................... IX 9 103Scheduled Reductions in WorkingHours ...................................................... VIII 20 83Second Stage Grievances .......................... VII 3 48

Written Grievance.................................. VII 3(a) 48Presentation to Company ...................... VII 3(b) 48Unit Grievance Meetings ...................... VII 3(c) 48Unit Grievance Meeting — Agenda ...... VII 3(d) 48Withdrawal or Adjustment of Grievance ............................................ VII 3(e) 49

Time Limit on Disposition .................... VII 3(f) 49


376


Selection and Tenure of Umpire .............. VII 21 59Seniority and Related Matters ................ VIII — 69Seniority Date ............................................ VIII 1 69

General .................................................. VIII 1(a) 69Employees on Layoff From Unit OtherThan Basic Unit .................................. VIII 1(b) 69

Transfer Leveling Seniority Date .......... VIII 1(c) 70Seniority Lists ............................................ VIII 6 76Seniority-Operation WithinOccupational Groups ............................ VIII 7 76Seniority-Operation Within SeniorityUnits ........................................................ VIII 8 76Other Than Skilled Groups.................... VIII 8(a) 76Skilled Groups ...................................... VIII 8(b) 76

Seven-Day Operations Bonus .................. IX 21 110Shift Assignments and Rotation .............. VIII 28 90

Assignment of Shifts.............................. VIII 28(a) 90Rotation of Shifts .................................. VIII 28(b) 90

Shift Premiums .......................................... IX 6 102No.3 (Afternoon) Shift .......................... IX 6(a) 102No.1 (Midnight) Shift ............................ IX 6(b) 102Identification of Shifts .......................... IX 6(c) 102

Short-Term Military Duty Pay ................ IX 20 109Smoking...................................................... X 5 135Special Procedures — ProductionStandard, Job Security and OutsideContracting, Health and Safety andNew Job Rate Grievances ...................... VII 23 60Production Standards; Job Security andOutside Contracting ............................ VII 23(a) 60

Health and Safety .................................. VII 23(b) 62Rates on New Jobs ................................ VII 23(c) 65Grievances Referred to National FordDepartment .......................................... VII 23(d) 65

Right to Strike........................................ VII 23(e) 66Confinement of Issues .......................... VII 23(f) 66

Special Submissions to Umpire ................ VII 9 54Initiation of Issues; Right to Appeal toUmpire ................................................ VII 9(a) 54


377


Appeal Procedure .................................. VII 9(b) 54State Restrictions ...................................... II 3 10Strikes, Stoppages and Lockouts ............ V — 24Sunday Premium ...................................... IX 10 103

— T —Temporary Assignment to Other Plant— Time and Expense Allowances ........ IX 16 105Temporary Layoffs.................................... VIII 21 83

Definition and Applicability .................. VIII 21(a) 83Right to Deviate from Seniority ............ VIII 21(b) 83Discussions After 5 Days ...................... VIII 21(c) 84Local Negotiations ................................ VIII 21(d) 84Inverse Seniority .................................... VIII 21(e) 84Limitation on Use .................................. VIII 21(f) 85

Termination of Umpire ............................ VII 22 59Notice .................................................... VII 22(a) 59Disposition of Pending Cases ................ VII 22(b) 59

Third Stage Grievances ............................ VII 4 49Appeal Procedure .................................. VII 4(a) 49Statement of Fact and Position .............. VII 4(b) 50Referral to Local Civil Rights ..............Committee .......................................... VII 4(c) 50

Review Boards ...................................... VII 4(d) 50Review Boards — Schedule of Meetings .............................................. VII 4(e) 51

Review Boards — Agenda .................... VII 4(f) 51Review Boards — Record ofProceedings; Dispositions .................. VII 4(g) 51

Power to Withdraw or AdjustGrievances .......................................... VII 4(h) 51

Authority of Regional Director.............. VII 4(i) 52Time Limits for Umpire Decisions .......... VII 14 56Transfers .................................................... VIII 23 86

Within Seniority Group ........................ VIII 23(a) 86Between Groups or Units Within Plant VIII 23(b) 86Between Plants ...................................... VIII 23(c) 86

Transfer of an Operation.......................... VIII 24 87Transfers Affecting Rouge Area Only .. VIII 24(a) 87Other Inter-Plant Transfers .................... VIII 24(b) 87



— U —Umpire Fees and Expenses ...................... VII 20 59Umpire Office — Filing of Notices andBriefs ........................................................ VII 12 55Umpire Proceedings .................................. VII 13 55

Hearing Schedules; List of PendingFourth Stage Appeals; Agenda............ VII 13(a) 55

Investigations and Hearings by Umpire VII 13(b) 56Umpire's Inability to Meet Time Limits;Temporary Umpires .............................. VII 15 56Union Bulletin Boards .............................. X 1 134Union Shop ................................................ II — 9Unit Benefit Plans Representative .......... VI 9 33

Number; Appointment .......................... VI 9(a) 33Notice to Company ................................ VI 9(b) 33Functions................................................ VI 9(c) 34Duty to Remain in Unit; Reporting toSupervisor............................................ VI 9(d) 34

Hours on Company Time ...................... VI 9(e) 35Unit Health and Safety Representative .. VI 8 30

Number; Appointment .......................... VI 8(a) 30Notice to Company ................................ VI 8(b) 30Functions................................................ VI 8(c) 30Representative Training ........................ VI 8(d) 32Duty to Remain in Unit; Reporting toSupervisor............................................ VI 8(e) 33

Hours on Company Time ...................... VI 8(f) 33Unit Structure ............................................ VI 1 25Units of 1,399 or Less................................ VI 3 26Units of 1,400 or More (Except Rougeand Michigan Assembly Plant).............. VI 4 28Number of Full-time Representatives.... VI 4(a) 28Size of Unit Committee; Handling ofFirst Stage Grievances ........................ VI 4(b) 28

Use of Supervisors on DevelopmentWork ........................................................ X 3 134

378



— V —Vacations — Amount; Eligibility Rules .. IX 24 117

General .................................................. IX 24(a) 117One or More Year Employees .............. IX 24(b) 118Less Than One-Year Employees............ IX 24(c) 119Effect of Workers' CompensationPayments and of Holiday Pay ............ IX 24(d) 120

Equivalence of Active Employment ...... IX 24(e) 120Employees Off Rolls on Eligibility Date .................................................... IX 24(f) 121

Retiring Employees; Employees Laid Offin Plant Closing; Employees EnteringArmed Forces; Deceased Employees.. IX 24(g) 122

Time Excluded from Absence Count..... IX 24(h) 124Vacation Rate of Pay.............................. IX 24(i) 125

Vacations — Eligibility Dates .................. IX 23 11715 or More Years' Seniority as of12-1-50 ................................................ IX 23(a) 117

Other Employees.................................... IX 23(b) 117Identification of "Hire Date" ................ IX 23(c) 117

Vacations — Scheduling .......................... IX 25 126Vacation Period ...................................... IX 25(a) 126Vacation Time Off Procedure ................ IX 25(b) 126Excused Absence Allowance ................ IX 25(c) 127Right to Deny Vacation.......................... IX 25(d) 128

— W —Wage Rate Increases ................................ IX 2 98Wage Rates — General ............................ IX 1 98Wages and Other Economic Matters ...... IX — 98Waiver of Bargaining During ContractTerm ........................................................ X 10 137Weekly Overtime Premium ...................... IX 7 102

Amount .................................................. IX 7(a) 102No.1 Shift Saturday .............................. IX 7(b) 103

Withdrawal or Settlement afterAppeal ...................................................... VII 10 54

379


INDEX TO APPENDICESPage

Appendix A; Assignment and Authorization For Check-Off of Membership Dues ........ 142

Appendix B; Five-Day Notice .................................... 144Appendix G; Merit Increase Agreement...................... 145Appendix H; Memorandum of Understanding

Voluntary Overtime ............................ 147Appendix H; Exhibit 1 ................................................ 159Appendix H; Exhibit 2 ................................................ 161Appendix H; Part B — Skilled Trades (Appendix F)

Employees .......................................... 155Appendix J; Memorandum of Understanding —

Continuous Improvement Forum........ 163Appendix J; Exhibit 1 — Skilled Trades

Operational Effectiveness .................. 174Appendix J; Exhibit 2 — Work Groups / Teams ...... 178Appendix K; Memorandum of Understanding

Temporary Part- Time Employees .... 207Appendix M; Memorandum of Understanding

Job Security Program (JSP) ................ 221Appendix M; Attachment A — Special Programs ...... 229Appendix N; Memorandum of Understanding

Preferential Placement Arrangements 230Appendix N; Attachment A — Preferential

Placement Zone Alignment ................ 242Appendix N; Attachment B — Multi-Plant

Employment Locations ...................... 244Appendix N; Attachment C — Placement

Hierarchy ............................................ 245Appendix O; Memorandum of Understanding

Return To Basic Unit .......................... 248Appendix P; Memorandum of Understanding

Sourcing .............................................. 251Appendix Q; Memorandum of Understanding

“Best-In-Class” Quality Program........ 262Appendix S; Memorandum of Understanding

For the Health and Safety of Employees .......................................... 274

380

INDEX APPENDICES

Page

Appendix T; Memorandum of Understanding NPC; EDTP ........................................ 307

Appendix U; Memorandum of Understanding Employee Support Services Program .............................................. 319

Appendix V; Memorandum of Understanding Entry Level Wage & Benefit Agreement .......................................... 330

Appendix V; Attachment A — Benefit Plans Agreement .................... 338

Appendix W; Memorandum of Understanding Alternative Work Schedules................ 341

381

INDEX APPENDICES

NOTES

NOTES

NOTES

Ford Motor Company and the UAW recognize their respective responsibilities under federal and state laws relating to fair employment practices.

The Company and the Union recognize the moral principles involved in the area of civil rights and have reaffirmed in their Collective Bargaining Agreement their commitment not to discriminate because of race, religion, color, age, sex, sexual orientation, union activity, national origin, or against any employee with disabilities.

Greg DrudiDon GodfreyDarryl NolenBob TiseoPhil ArgentoTracy AusenCarol BagdadyMatthew BarnettMonica BassDavid BerryCarlo BishopShawn CampbellJerry CarsonAlfonzo CashTiffany CogerGerard CoiffardSean CoughlinChris CrumpRonda DanielsonRocky Di IacovoGregg DunnJodey DunnBill EaddyBill Ellis

Roy EscandonJeffrey FaberBrett FoxKenneth GafaMichael GammellaRaenell GlennR. Brian GoffRuth GoldenJane GrangerAndre GreenJoe GucciardoDan HuddlestonMichael JosephThomas KanitzBrandon KeattsMichael KerrJerry LawsonJohn McCollumLisa MayberryArmando MedelRobb MillerWalter MillsGloria MoyaRick Pack

Angelique Peterson-MayberryGregory PoetReggie RansomLorenzo RobinsonMichael RobisonNick RutovicAngelo SacinoLes ShawMichael ShoemakerCasandra ShortridgeLarry ShraderGarry SommervilleJeffrey TerryKevin TolbertVaughan TolliverTony VultaggioDeneen WhitakerMike WhitedMark WilliamsMichael WoolmanSteve ZimmerlaRudy GomezDan Taylor

National Ford Department Staff2015 Negotiations

Jimmy SettlesVice President and Director

UAW Ford, Aerospace, Chaplaincy and Insurance


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Agreements Dated

November 5, 2015



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