Article 9: Hours of Work and Overtime

This Article shall not apply to special agreements between the Company and the Union concerning hours of work and overtime.

Section 9.1: Definitions

A. Eight Hour Shift Workday. Eight (8) consecutive hours of work shall constitute a day's work.

B. Ten Hour Shift Workday. Ten (10) consecutive hours of work shall constitute a day's work.

C. Twelve Hour Shift Workday. Twelve (12) consecutive hours of work shall constitute a day's work.

D. Eight Hour Shift Work Week. Five (5) consecutive eight-hour days followed by two (2) consecutive days off shall constitute one work week.

E. Ten Hour Shift Work Week. Four (4) consecutive ten-hour days followed by three (3) consecutive days off shall constitute one work week.

F. Twelve Hour Shift Work Week. Four (4) consecutive twelve-hour days followed by four (4) consecutive days off shall constitute one work week.

G. Payroll Work Week. Sunday through Saturday starting with the regularly scheduled day shift on Sunday. It is understood that for administrative purposes in the accounting department, the work week may be defined differently, but such definition shall not affect any provision of the agreement.

H. In the event any different work day or work week is desired by either party, such desire shall be subject to mid-term collective bargaining.

Section 9.2: Hours of Work

A. Eight (8) consecutive hours of work shall constitute a day's work. A lunch break with pay of twenty (20) minutes will be provided during the first five (5) hours of the work day. Each employee will be allowed a ten (10) minute paid break midway between the 2nd and 3rd hour and between the 6th and 7th hour of the work day. Employees unable to take their breaks during their shift due to the Company's operational requirements will receive additional straight time pay for the period of the lost break, however, such time will not be considered time worked for computing overtime.

B. The payroll work week will start with the regularly scheduled day shift on Sunday of each week.

C. Five (5) eight (8) hour days shall constitute a normal work week. The Company will make a diligent effort to schedule employees for work so that at least eighty-five (85%) of them shall be scheduled for five (5) days of work and two (2) consecutive days off. The provisions of this Article shall not be construed as guaranteeing to any employee any number of hours of work per day or per week.

D. Except and unless specifically and expressly provided otherwise in this Agreement, employees shall not be paid for time not worked.

Section 9.3: Shifts

A. Shifts shall be identified and shift premiums paid in accordance with the following:

1. The Day shift shall normally include all shifts regularly scheduled to commence between Six a.m. and Eight a.m. inclusive. The Day shift shall be known as the first shift of the day. No shift premium shall be paid for all hours worked before, during, and after a non-rotating day shift.

2. The Swing shift shall normally include all shifts regularly scheduled to commence between Two p.m. and Four p.m. inclusive. The Swing shift shall be known as the second shift of the day. In addition to their hourly rate, employees working on a non-rotating Swing shift shall receive twenty-five cents ($.25) per hour shift premium for all hours worked before, during, and after this shift. Such premium shall be included when calculating overtime after eight (8) hours.

a. Effective the first full pay period of April, 2006, the swing shift premium shall be thirty cents ($.30) per hour for all hours worked before, during, and after this shift.

b. Effective the first full pay period of April, 2007, the swing shift premium shall be thirty-five cents ($.35) per hour for all hours worked before, during, and after this shift.

3. The Graveyard shift shall normally include all shifts regularly scheduled to commence between Ten p.m. and Twelve Midnight, inclusive. The Graveyard shift shall be known as the third shift of the day. In addition to their hourly rate, employees working on a non-rotating Graveyard shift shall receive thirty cents ($.30) per hour shift premium for all hours worked before, during, and after this shift. Such premium shall be included when calculating overtime after eight (8) hours.

a. Effective the first full pay period of April, 2006, the graveyard shift premium shall be thirty-five cents ($.35) per hour for all hours worked before, during, and after this shift.

b. Effective the first full pay period of April, 2007, the graveyard shift premium shall be forty cents ($.40) per hour for all hours worked before, during, and after this shift.

B. Rotating Shifts -- There will be no shift premiums for employees working rotating shifts, but they shall be paid in accordance with the following:

1. Employees working a rotating two-shift schedule shall receive thirteen cents ($.13) per hour in addition to their hourly wage rate in Appendix A.

a. Effective the first full pay period of April, 2006, employees working a rotating two-shift schedule shall receive sixteen cents ($.16) per hour in addition to their hourly wage rate in Appendix A.

b. Effective the first full pay period of April, 2007, employees working rotating two-shift schedule shall receive nineteen cents ($.19) per hour in addition to their hourly wage rate in Appendix A.

2. Employees working a rotating three-shift schedule shall receive nineteen cents ($.19) per hour in addition to their hourly wage rate in Appendix A.

a. Effective the first full pay period of April, 2006, employees working a rotating three-shift schedule shall receive twenty-two cents ($.22) per hour in addition to their hourly wage rate in Appendix A.

b. Effective the first full pay period of April, 2007, employees working rotating three-shift schedule shall receive twenty-five cents ($.25) per hour in addition to their hourly wage rate in Appendix A.

Section 9.4: Ten and Twelve Hour Shift

A. Employees in the various departments or sub-departments may elect to work ten- or twelve-hour shifts. The Melt Shop and Yard departments must be on the same schedule if both elect to work twelve-hour shifts. Likewise, the Rolling Mill and Shipping departments must work the same shifts for twelve-hour shifts. This agreement is to modify the applicable provision of Article 9: Hours of Work and Overtime, under the Basic Labor Agreement for employees working ten- or twelve- hour shifts.

B. Overtime shall be paid at a rate of 1.65 for all hours worked in excess of forty (40) in the work week. Daily overtime shall be paid at a rate of 1.65 for all hours worked in excess of ten (10) hours on a 4 X 10 hour weekly schedule, or all hours worked in excess of twelve (12) hours on a 4 X 12 hour weekly schedule. Doubletime shall be paid for all hours worked in excess of fifty-six (56) per week.

C. A lunch break of twenty-five (25) minutes with pay will be provided approximately midway during a ten-hour shift. Two fifteen (15) minute breaks will be provided during the shift as close as practical to midway between each five-hour period considering production and other factors.

D. A lunch break of thirty (30) minutes with pay will be provided approximately midway during a twelve-hour shift. Three ten (10) minute breaks will be provided during the shift, as close as practical to midway between each four-hour period considering production and other factors.

E. Other Articles of the Basic Labor Agreement will be modified as follows:

1. A holiday shall be the twenty-four (24) hour period commencing at 3:00 a.m. or 7:00 a.m. the day of the holiday. Holiday pay shall be at eight (8), ten (10) or twelve (12) hours straight time for any qualified employee normally scheduled to work on the day of the holiday but who does not work because of its observance by the plant. Said ten (10) or twelve (12) hours straight time pay shall be counted in the computation to pay overtime for hours worked in excess of forty (40) in the work week. Holiday pay shall be eight (8) hours straight time for qualified employees not normally scheduled to work on the day the holiday is observed. Said eight (8) hours straight time pay shall not be in the computation to pay overtime for hours worked in excess of forty (40) in the work week. An employee who works on a holiday shall receive 1.65 times the employees' straight time hourly rate plus holiday pay.

2. Vacation shall be four (4) consecutive scheduled days off: 4 X 10 hour shift will be paid forty (40) hours straight time; 4 X 12 hour shift will be paid forty-eight (48) hours straight time.

3. It is the intent of Management and the Union to keep overtime to a minimum for employees working twelve (12) hour shifts. This will be done by utilizing Section 8.6 - Temporary Vacancies, and using employees from different crews. In the event overtime is needed the senior qualified individual who normally performs the job requiring overtime who is on his regularly scheduled day off will be called unless circumstances would require that employee to work two consecutive 12 hour shifts.

4. If an employee works on any day which is not part of his regular scheduled work week, he shall not be required to lose time or lay off from his regular scheduled work week.

5. Disciplinary suspensions shall be converted as follows:

1 week suspension = 4 working days
3 days suspension = 2 working days

6. Employees working the 3:00 a.m. to 3:00 p.m. or 7:00 a.m. to 7:00 p.m. shall receive no shift differential; Employees working the 3:00 p.m. to 3:00 a.m. shift or the 7:00 p.m. to 7:00 a.m. shall receive a thirty cent (.30) per hour shift differential.

a. Effective the first full pay period of April, 2006, employees working the 3:00 p.m. to 3:00 a.m. shift or the 7:00 p.m. to 7:00 a.m. shall receive a thirty-five cent ($.35) per hour shift differential.

b. Effective the first full pay period of April, 2007, employees working the 3:00 p.m. to 3:00 a.m. shift or the 7:00 p.m. to 7:00 a.m. shall receive a forty cent ($.40) per hour shift differential.

7. The Union and the Company shall mutually agree to starting times when setting schedules under this provision. There is no shift rotation under this provision unless mutually agreed upon by the parties.

F. When an employee transfers to a twelve hour shift position from an eight hour shift position, his existing vacation hours balance (if any) will be adjusted upwards by 120%. Example:

48

8 Hour Balance		Factor		12 Hour Balance
40	X	1.2	=
32	X	1.2	=	38.4
16	X	1.2	=	19.2

The opposite occurs when an employee transfers from a twelve hour shift position to an eight hour shift position. Example:

40

12 Hour Balance		Factor		8 Hour Balance
48	÷	1.2	=
36	÷	1.2	=	30
12	÷	1.2	=	10

Employees who have a vacation balance that does not allow them to take an entire day off may elect one of the following options to be scheduled in accordance with Article 14:

1. If the remaining balance is for half or more than half of the employee's current shift, he may request the entire day off with pay for only the amount of the vacation hours balance. Example: Employee is on 8 hour shifts and has a 30 hour balance. He may request 4 days, (3 days at 8 hours each, 1 day at 6 hours).

2. If the remaining balance is less than half of the employees current shift, the employee may request to take off a portion of one shift equal to the amount of hours in his balance. Example: Employee on 8 hour shifts and has a 10 hour balance, one full day must be taken. The employee may then request to leave 2 hours early with pay to use the remaining 2 hours. (The remaining amount may not be split and must be used on only one occasion.)

3. The employee can hold the excess portion of his vacation balance (that portion that equals less than one day of his current shift) until his overall balance changes to the point that the hours are usable.

This section conforms with the December 25, 1986 order (granting waiver to ORS 652.020) authorized by the Commissioner of the Bureau of Labor and Industries. The Company will submit semi annual reports, other reports or reapplications as may be required by the Bureau of Labor and Industries.

Section 9.5: Conditions Under Which Overtime is Paid

A. Daily overtime at the rate of 1.65 will be paid for all hours worked in excess of eight (8) hours during a 24-hour period for an employee working eight (8) hour shifts. Daily overtime at the rate of 1.65 will be paid for all worked in excess of ten (10) hours during a 24 hour period for an employee working ten (10) hour shifts. Daily overtime at the rate of 1.65 will be paid for all hours worked in excess of twelve (12) hours during a 24-hour period or in excess of 40 hours per week for employees working twelve (12) hour shifts. The 24-hour period commences when an employee begins work. Daily overtime at the rate of 1.65 shall be paid if the Company requires an employee to change shifts or days off. Although an employee may work more than eight (8) hours within the 24-hour period, no daily overtime shall be paid if an employee has a change in starting time on his normal shift as set forth in Section 9.2. If the Company requires or requests a change in shift, days off, or an extra day worked, daily overtime at the rate of 1.65 is required for that day. If an employee changes shifts or days off at his request, daily overtime is not required. The employee's new starting time shall start a new 24-hour period, and overtime will be paid for hours worked in excess of eight (8) hours. An employee held over from a Saturday Swing shift shall have all hours counted as worked on Saturday. An employee called in early for a Saturday Graveyard shift shall have all hours counted as worked on Saturday. Overtime shall be paid at the rate of 1.65 times the regular rate of pay for all hours worked in excess of forty (40) hours per week. Double time shall be paid for hours worked in excess of fifty-six (56) in a work week.

B. If a paid holiday falls on an employee's scheduled day off of work, the eight (8) hours straight-time holiday pay shall not be counted towards the computation of over forty (40) hours per week for overtime purposes. If the holiday falls on an employee's normal scheduled day of work but the employee does not work the holiday because the Company did not schedule work, the eight (8) hours straight- time holiday pay shall be counted towards the computation of over forty (40) hours per week for overtime purposes. If an employee is called in to work on a holiday that is not a normally scheduled work day, the holiday will be paid as though it was a regularly scheduled workday.

C. When obtaining advanced written permission from the Human Resources Department, straight-time hours not worked due to an absence shall be counted toward the computation of over forty (40) hours per week for overtime. Absences due to accident or sickness shall be excluded from this provision.

D. Notwithstanding any provisions of this Agreement, there shall be no pyramiding of any overtime or premium pay. In the event overtime or premium pay is applicable to the same hours worked under any two (2) or more provisions of this Agreement, only the single highest overtime premium or premium payment required under any one (1) provision of this Agreement shall be paid. Examples of this provision appear in Appendix "B".

E. There is no provision in this Agreement which provides for overtime or premium pay for paid time which is not worked, except for Section 9.6(C).

Section 9.6: Unscheduled Overtime Assignment

Whenever work is required in any job classification and such work cannot be performed at straight time, the Company has the right to use employees at time and 65/100ths before using employees at double time as long as the employees hold the jobs by bid award. The Company has the right to hold over an employee until the employee is properly relieved. An employee who fails to work on any regularly scheduled straight-time workday shall have no right to the assignment of overtime as provided herein during the week in which the absences occurred.

A. Overtime will be distributed in all departments, excluding Maintenance, on the following basis:

1. Those eligible and qualified senior employees by department seniority within the department who regularly perform the work, by bid award on the prior shift.

2. Those eligible and qualified senior employees by department seniority within the department who regularly perform the work, by bid award on the following shift.

3. When overtime is required on a shift because an employee is not trained or the Company cannot use straight-time employees, the overtime will be used to fill the job in which the vacancy occurred.

4. Overtime which is not contiguous with a normally scheduled shift will be offered to the eligible and qualified senior employees who regularly perform the work, by department seniority, by bid award on the shift affected.

5. The Company may require the eligible and qualified employee with the least amount of department seniority to accept the work.

B. Overtime in the Maintenance Department will be distributed on the following basis:

1. Overtime will first be offered to the senior eligible and qualified employees working the same assigned job (assigned to specific duties on shifts or within departments) in which the overtime is required.

2. If additional employees are required to work on a job, the senior eligible and qualified employee on the shift affected shall be assigned; however, because of differences in the capabilities of employees, this goal may not be achieved in every case.

3. The Company will not be required to remove an employee from a job they are performing in order to assign a job to another employee or change Maintenance personnel on a specific job when such action would adversely affect the continuity or satisfactory completion of the job.

4. The Company has the right to assign any Maintenance employee to operate any equipment or machinery in the performance of maintenance work.

C. If the Company causes the overtime to be worked by the wrong employee and such omission is made known to the Company within 72 hours, the Company will be obligated to offer the wronged employee(s)-equivalent overtime hours, with equivalent earnings, within the next two work weeks. (If the omission is not made known to the Company within 72 hours, the matter shall be deemed waived and not subject to the grievance procedure.) If the Company is unable to offer equivalent overtime hours and earnings to the wronged employee(s) within the following two weeks, such employee(s) will be paid the money he would have earned had the overtime not been improperly assigned. It is understood that the offering of equivalent overtime hours and earnings within the next two work weeks discharges the Company's obligation.

D. The parties agree that overtime procedures may vary from department to department and that such differences may be inconsistent with the terms and conditions contained in this Agreement, unless revoked. Such overtime procedures are attached to this Agreement in Appendix J, and may be revoked by either the Union or the Company with sixty (60) days advanced written notice to the other party. Any modifications to these Departmental overtime procedures subsequent to the signing of this Agreement shall require the approval of the Department Superintendent, Human Resource Manager, Local Union President, and the Local Union Grievance Chairperson.

Section 9.7: Light Duty Overtime

Employees assigned to light duty work are working with physical restrictions, while recovering from an occupational illness or injury, and being expected to recover progress back to their regular position. There are two types of Light Duty assignments:

A. Regular Production Job. Employees who are assigned into a regular production or maintenance job, but are physically unable to perform a portion of the work required due to limited temporary medical restrictions, shall be scheduled as follows:

1. If the entire crew is scheduled for overtime, the Light Duty employee assigned to a regular production job should also be scheduled for overtime unless medically restricted from working a certain number of hours in a day or week.

2. If a limited crew is scheduled for overtime, such as a loading crew or change over crew, Light Duty employees assigned to a regular production job would be offered the work, if they had the proper seniority, only when there will not be any work the employee might have to perform that would exceed a medical restriction.

B. Other than Regular Production Jobs. Employees who are assigned to positions outside of a regular production or maintenance, such as clean up work or an office assignment, shall not be offered any overtime, unless unusual circumstances require the Company to schedule the work.

C. The definition of Modified Duty is: any employee who has permanent medical restrictions and who has been placed into a position with a "reasonable accommodation" that allows the employee to perform all or most of the job functions without violating his/her restrictions. Employees on modified duty status normally would be assigned overtime work when the entire crew is scheduled for overtime, and could be offered overtime by seniority when there will be work the employee can perform that would not exceed a medical restriction.