National Collective Bargaining Agreement - Liz Claiborne Inc. and Union of Needletrades, Industrial and Textile Employees (UNITE)
NATIONAL COLLECTIVE BARGAINING AGREEMENT
By and Between:
LIZ CLAIBORNE, INC. AND
UNION OF NEEDLETRADES, INDUSTRIAL AND TEXTILE EMPLOYEES
(UNITE)
Effective: June 1, 1997
Expires: May 31, 2000
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TABLE OF CONTENTS
ARTICLE 1: UNION RESPONSIBILITY - 2 -
ARTICLE 2: BARGAINING UNIT AND UNION RECOGNITION - 2 -
ARTICLE 3: UNION MEMBERSHIP - 4 -
ARTICLE 4: EMPLOYER'S OBLIGATIONS - 5 -
ARTICLE 5: AFTER ACQUIRED AND NEW FACILITIES - 5 -
ARTICLE 6: TRIAL PERIOD - 6 -
ARTICLE 7: HIRING RATES AND MINIMUM WAGE SCALES - 6 -
ARTICLE 8: CHANGE IN LEGAL MINIMUMS - 7 -
ARTICLE 9: COST OF LIVING ADJUSTMENT - 7 -
ARTICLE 10: JOB SECURITY/HANDLING AND DISTRIBUTION OF PRODUCT - 8 -
ARTICLE 11: CHANGE IN PAY SYSTEMS - 9 -
ARTICLE 12: WAGE INCREASES - 9 -
ARTICLE 13: CHECK-OFF - 10 -
ARTICLE 14: NO DISCRIMINATION - 10 -
ARTICLE 15: EMPLOYMENT STANDARDS - 11 -
ARTICLE 16: HEALTH AND SAFETY - 11 -
ARTICLE 17: HOURS OF WORK AND OVERTIME - 13 -
ARTICLE 18: TEMPORARY EMPLOYEES - 13 -
ARTICLE 19: HOLIDAYS, PERSONAL DAYS/PAID TIME OFF AND SICK DAYS - 14 -
ARTICLE 20: BEREAVEMENT PAY - 15 -
ARTICLE 21: SHOP STEWARD - 16 -
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ARTICLE 22: SENIORITY/LAYOFF - 16 -
ARTICLE 23: WORK ASSIGNMENTS - 16 -
ARTICLE 24: DISCHARGES - 16 -
ARTICLE 25: LEAVES OF ABSENCE - 17 -
ARTICLE 26: TIME CLOCK - 18 -
ARTICLE 27: RIGHT TO VISIT SHOP - 18 -
ARTICLE 28: EMPLOYEE BENEFIT FUNDS - 19 -
ARTICLE 29: DENTAL PLAN - 24 -
ARTICLE 30: DISABILITY - 24 -
ARTICLE 31: GRIEVANCES AND ARBITRATION - 25 -
ARTICLE 32: NO STRIKE/NO LOCKOUT PLEDGES - 27 -
ARTICLE 33: NO REDUCTION OF WAGES OR OTHER BENEFITS - 28 -
ARTICLE 34: STRUCK WORK-LABOR DISPUTE CROSSING PICKET LINES - 28 -
ARTICLE 35: TEMPORARY APPOINTMENT TO UNION STAFF - 29 -
ARTICLE 36: CONFORMITY TO LAW - 29 -
ARTICLE 37: JURY DUTY - 29 -
ARTICLE 38: UNION ACTIVITIES - 30 -
ARTICLE 39: JOINT LABOR-MANAGEMENT COMMITTEE - 30 -
ARTICLE 40: VACATIONS - 30 -
ARTICLE 41: CUTTING - 30 -
ARTICLE 42: REPORTING PAY - 31 -
ARTICLE 43: 401(k) PLAN - 31 -
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ARTICLE 44: NO WAIVER - 31 -
ARTICLE 45: MANAGEMENT RIGHTS - 32 -
ARTICLE 46: DURATION OF AGREEMENT - 33 -
- iii -
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THIS AGREEMENT is made and entered into as of this June 1, 1997 by and between
LIZ CLAIBORNE INC., (hereinafter designated as the "Company") and the Union of
Needletrades, Industrial and Textile Employee (hereinafter designated as the
"Union" or "UNITE").
W I T N E S S E T H:
WHEREAS, the Company is engaged in an integrated process of production, handling
and distribution of garments; and
WHEREAS, the Employer owns or leases and operates several distributions centers
and samplerooms in which the Union represents the majority of the employees
employed by the Employer, and the Employer recognizes the Union as the exclusive
bargaining representative of its warehouse and sampleroom employees; and;
WHEREAS, the various distribution centers and samplerooms have been governed by
separate collective bargaining agreements covering individual facilities; and
WHEREAS, to provide uniformity of conditions and ease of administration, the
parties choose to consolidate the separate bargaining units and collective
bargaining agreements into a national multi-plant agreement, to be supplemented
by local agreements covering specific facilities; and
WHEREAS, the Employer and the Union are parties to a Jobber's Agreement which
governs, among other things, the Employer's use of contractors to produce its
garments but does not govern the terms and conditions of employment of any of
the employees of the Employer; and
WHEREAS, the parties desire to cooperate in establishing conditions which will
tend to secure a living wage, fair conditions and standards of employment and to
provide for a fair and peaceful adjustment of all disputes so as to secure
uninterrupted operation of work.
NOW THEREFORE, the parties hereto agree as follows:
ARTICLE 1: UNION RESPONSIBILITY
1.1 The Union shall have the sole responsibility for administering and enforcing
this Agreement and for obtaining compliance with its terms. The sole persons
authorized or having the power to act as agents of the Union, or to bind the
Union legally with respect to matters arising out of this Agreement or arising
out of the relations between the Employer and the Union, or to subject the Union
to any liability whatever by reason of any acts or omissions is the President of
the Union and the managers of the signatory
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Locals thereof or such substitute or additional persons as the Union may
hereafter formally designate by written notice to the Employer. The Union shall
not be responsible for the acts or omissions of any other person, including
members and employees of the Union.
ARTICLE 2: BARGAINING UNIT AND UNION RECOGNITION
2.1 The scope of the bargaining unit covers the following distribution centers
and samplerooms presently located at:
1 Claiborne Avenue, North Bergen, NJ
4 Emerson Lane, Secaucus, New Jersey
10 Oxford Drive, Moonachie, New Jersey
1441 Broadway and 1450 Broadway, New York, New York
1 Liz Way, Mt. Pocono, Pennsylvania
151 Folmer Parkway, Montgomery, Alabama
15 Thatcher Road, Dayton, New Jersey
2.2 The bargaining unit consist of all distribution center and sampleroom
employees, including cutters and related crafts, employed by the Employer at the
covered facilities. Local supplemental agreements may further define the
bargaining unit at specific facilities. It is agreed that the Union represents a
majority of said employees and that during the term of this Agreement the Union
shall be the sole and exclusive bargaining representative of all employees in
the bargaining unit as hereinabove described. Office, clerical, supervisory and
executive employees, as well as any employees who may be employed at the retail
facility at any location, are excluded from the provisions hereof.
2.3 "Workers" or "employees" as used in this Agreement means those employees
covered by the bargaining unit as well as those who may be hereinafter included.
2.4 This Agreement shall be the National Agreement. There shall be Supplemental
Agreements which govern certain terms and conditions of employment at individual
facilities. In case of conflict between this National Agreement and a
Supplemental Agreement, the Supplemental Agreement shall govern. Any dispute
unresolved as to whether a conflict exists between the National and a
Supplemental Agreement or whether a particular dispute is subject to resolution
under the provisions of the National or a Supplemental Agreement shall be
subject to arbitration pursuant to Article 31 of this National Agreement.
ARTICLE 3: UNION MEMBERSHIP
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3.1 Good standing membership in the Union shall be a condition of employment
with the Employer for all bargaining unit employees who have such membership on
the date of execution of this Agreement; it shall also be a condition of
employment with the Employer for all other bargaining unit employees on and
after the thirtieth (30th) day following the execution or effective date of this
Agreement, or on or after the thirtieth (30th) day following the beginning of
their employment, whichever is the later. If the foregoing is prohibited by law,
then at the corresponding time all employees shall be required as a condition of
employment (unless prohibited by law) to pay to the Union a service charge to
reimburse it for the cost of negotiating and administering this agreement.
3.2 Good standing membership in the Union for purposes of this Article means
such membership in the Union through membership in any affiliate of UNITE.
3.3 In the event that paragraph 3.1 may not be lawfully applied, all employees
shall be informed by the Employer of the existence of this Agreement and the
terms thereof and shall be advised by the Employer that, in its opinion, good
labor-management relations are and will be best served and promoted if such
employees become and remain members of the Union. The Employer agrees to
implement and promote this provision by posting copies of the following notice
near all time clocks and in other prominent places such as bulletin boards in
its plants:
"NOTICE TO ALL EMPLOYEES"
This plant is being operated under the terms of an agreement with the Union of
Needletrades, Industrial and Textile Employees, AFL-CIO. All wages, hours and
other conditions of employment are regulated by the terms of this agreement.
Good labor management relations will be best served and promoted, in our
opinion, if all our employees covered by this agreement become and remain
members of this Union.
Signed:
Name of Employer:
ARTICLE 4: EMPLOYER'S OBLIGATIONS
4.1 All of the terms and provisions of this Agreement shall be binding upon the
Employer and upon its subsidiaries, successors and assigns. In the event the
Employer sells or transfers its business to another, it shall nevertheless
continue to be liable for the complete performance of the terms and provisions
of this Agreement by the purchaser or transferee until the purchaser or
transferee expressly, in writing, assumes such performance and agrees to be
fully bound by the terms and provisions of this Agreement.
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ARTICLE 5: AFTER ACQUIRED AND NEW FACILITIES
This National Agreement shall be binding on those presently existing facilities
described in paragraph 2 above as well as all future facilities operated by and
either owned or leased by the Employer, including manufacturing facilities, but
not including retail stores. This agreement shall be binding on facilities
acquired by merger, acquisition or consolidation two (2) years after such
acquisition, merger or consolidation. Local conditions for any future or
after-acquired facility shall be negotiated between the Employer and the Union.
ARTICLE 6: TRIAL PERIOD
The first thirty (30) calendar days of employment for newly-hired employees
shall be deemed their trial period during which time they may be discharged
without regard to cause. The trial period may be extended for another fourteen
(14) calendar days with the written consent of the Union. Upon the expiration of
the trial period, the newly-hired employee will be deemed a regular employee.
The trial period shall not be abused by the Employer and any claim of abuse
shall be the subject of arbitration hereunder.
ARTICLE 7: HIRING RATES AND MINIMUM WAGE SCALES
7.1 The hiring rates in effect in the various facilities and job
classifications, if any shall be set forth in the local Supplemental Agreements.
7.2 All hiring rates at all facilities covered by this agreement shall increase
$0.25 effective June 7, 1999. The hiring rates may not be decreased. They may
increase only upon mutual agreement of the parties.
7.3 Upon satisfactory completion of the trial period, an employee shall receive
an additional $0.25 per hour.
7.4 All employees who have completed their trial period as of June 1, 1997 shall
receive at least $0.25 an hour above the newly-established minimum wage rate in
Paragraph 7.3.
ARTICLE 8: CHANGE IN LEGAL MINIMUMS
If, during the term of this Agreement, a new applicable federal or state minimum
wage law is enacted or becomes effective which
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increases the applicable minimum wage hereunder, then the minimum wage set forth
herein shall be automatically increased so that such minimum wage shall be no
less than 15% above any newly-established state or federally mandated legal
minimum
ARTICLE 9: COST OF LIVING ADJUSTMENT
Should the cost of living, as reflected in the U.S. Consumer Price Index for the
period of June 1997 through November 1998 increase eight and one-half (8.5%)
percent over the consumer Price Index for May 1997, as published in June 1997,
then the regular hourly wages of all employees shall be increased ten cents
($0.10) per hour. Additionally, hourly increases of five cents ($0.05) per hour
shall be paid for each additional increase in the cost of living of one-half of
one percent (.5%). Cost of living increases payable under this provision shall
not exceed twenty-five cents ($0.25) per hour. Rises in the consumer Price Index
shall be measured over an eighteen (18) month period, as set forth above, by
utilizing the consumer Price Indices for the Urban Wage Earners and clerical
workers, U.S. Cities, Average, printed and released in the months of July 1997
through December 1998. Wage increases due hereunder shall be effective January
4, 1999.
ARTICLE 10: JOB SECURITY/HANDLING AND DISTRIBUTION OF PRODUCT
10.1 To protect the job security of the employees of the Employer and to
preserve labor standards among workers who are employed in the integrated
process of production of the Employer's garments, the parties agree to the
following:
10.1.1 No employee shall be involuntarily permanently laid off as a direct
result of the Employer's use of a third party contractor to distribute its
product.
10.1.2 To the extent permitted by law, the Employer may engage a third party
contractor to perform functions covered by this Agreement only if it uses its
best efforts to select a third party contractor which either has or is willing
to enter into a collective bargaining relationship with the Union or an
affiliate thereof. In any event, the Employer may engage a third party
contractor to operate a distribution facility entirely dedicated to the
distribution of the Employer's products for a period in excess of two (2) years
only if such third party contractor has a collective bargaining relationship
with UNITE or an affiliate thereof from the inception of the engagement.
10.2 Subject to the protections set forth above, nothing contained herein or in
any Local Supplement shall be deemed to restrain the Employer in its
determination as to the methods or means by which its products are handled and
distributed, including, but not limited to, the allocation of products and
functions among the
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Employer's facilities or the use of facilities not owned, leased or operated by
the Employer.
ARTICLE 11: CHANGE IN PAY SYSTEMS
The Employer reserves the right to change the method of payment for some of the
general distribution or quality assurance time employees to an incentive system.
Employees on the incentive system shall not be paid less than their current
hourly rate. The Union may assert reasonable challenges to the fairness of the
proposed incentive system. Any disputes regarding the implementation of such
systems may be submitted to the arbitrator for resolution.
ARTICLE 12: WAGE INCREASES
12.1 The wage increases for employees shall be as follows:
Effective June 2, 1997, employees shall receive a wage increase of $0.75 per
hour.
Effective June 1, 1998, employees shall receive a wage increase of $0.50 per
hour.
Effective June 7, 1999, employees shall receive a wage increase of $0.50 per
hour.
12.2 To correct market-created inequities and to promote greater uniformity
among facilities, the employees at the Mt. Pocono, PA and Montgomery, AL
facilities shall receive a raise of $0.25 effective June 2, 1997 in addition to
any other wage increases.
12.3 Any employee who would receive a greater wage increase under the wage
increase formula agreed upon between Locals 23-25 and 10 and the New York Skirt
and Sportswear Association for the collective bargaining agreement effective
June 1, 1997 shall receive such greater wage increase instead of the increase
set forth in Article 12.1.
ARTICLE 13: CHECK-OFF
13.1 Subject to the requirements of law concerning authorization and assignment
by the employees individually, the Employer shall deduct membership dues (which
shall be deemed to include periodic fixed dues, initiation fees and assessments)
or, to the extent permitted by law, service charges, from the earnings of its
employees monthly and transmit the same to the Union within 48 hours thereafter.
13.2 The Employer agrees to honor check-off authorizations for political
contributions to the UNITE Campaign Committee and AFL-CIO
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COPE from employees who are members of the Union.
13.3 Sums deducted by the Employer under the provisions of Paragraphs 13.1 and
13.2 this Article shall be kept separate and apart from general funds of the
Employer and shall be held in trust by the Employer for the benefit of the
Union, the UNITE Campaign Committee, and AFL-CIO COPE, as the case may be.
ARTICLE 14: NO DISCRIMINATION
The Employer shall not discriminate against any employee on the basis of race,
creed, religion, color, national origin, sex, age, sexual orientation,
citizenship status, disability, veteran's status or membership in or activities
on behalf of the Union, unless required by this Agreement. The Employer,
however, shall not employ children or adolescents where such employment is
prohibited by an applicable federal or state law or regulation.
ARTICLE 15: EMPLOYMENT STANDARDS
15.1 All wages, earnings, overtime and holiday pay shall be paid on the day they
were customarily paid, but no later than the Friday following the week in which
they were earned.
15.2 The Employer shall not charge an employee for any damage to materials
unless caused willfully.
15.3 The Employer shall supply necessary machines and tools to its employees.
15.4 No officer of the Employer, supervisory employee or any other person
outside of the bargaining unit shall perform any work covered by this Agreement,
except as specified in Article 18 or in the event of unexpected absenteeism, an
emergency, or for training purposes.
15.5 All paid breaks shall be fifteen (15) minutes.
15.6 Employees may elect to receive their pay by having the Employer make a
direct deposit to the employee's designated account.
ARTICLE 16: HEALTH AND SAFETY
16.1 The Employer shall fully comply with all standards, laws and regulations of
health, sanitation and safety, including all regulations of the local fire
department.
16.2 The Employer shall provide an adequate number of drinking fountains.
Restrooms and work areas shall be kept in a clean,
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sanitary condition, and will be well-lighted and heated. Air conditioning shall
be maintained in the Employer's facilities where it currently exists.
16.3 A worker may refuse to perform work which he reasonably believes would pose
a serious threat of injury or illness.
16.4 The Employer shall be exclusively responsible for health, safety and
sanitation conditions in its shop. Neither the Union nor its agents or
representatives shall be liable for any job-related injury, illness or death.
16.5 The Joint Labor-Management Committee set forth in Article 39 shall address
issues of health and safety and may make recommendations for the correction of
unsafe or harmful conditions and practices and may make recommendations for
rules and procedures to prevent accidents and disease and for the promotion of
the health, safety and sanitation of the workers.
16.5.1 The Employer shall facilitate limited safety training of employees by, at
the Union's request: 1) providing one day's paid leave of absence per year to
one employee in each shop designated by the Union to attend health and safety
training, and 2) permitting all employees to participate in one paid hour per
year of safety training in the shop during working time. The parties shall
schedule such training at a mutually convenient time. This safety-training
paragraph does not diminish in anyway the Employer's responsibility to provide a
safe and healthful workplace under this Agreement. The Union will provide such
training only to the extent feasible and is not obligated to provide such
training.
ARTICLE 17: HOURS OF WORK AND OVERTIME
The provisions governing hours of work and overtime, including overtime
premiums, in the 1994-1997 agreements covering the individual facilities and the
practices developed thereunder shall continue.
ARTICLE 18: TEMPORARY EMPLOYEES
18.1 The Employer, from time to time, may have the need for additional temporary
employees. Such temporary employees shall not be employed by the Employer for
longer than thirty (30) consecutive days.
18.2 Temporary employees shall not be considered to be in the bargaining unit.
The temporary employees shall be informed of their temporary status when hired
and shall acknowledge the same in writing, a copy of which shall be provided to
the Union.
18.3 In the event that a temporary employee remains employed beyond the thirty
(30) day period, then such employee shall be placed in
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the bargaining unit and benefit fund contributions for that employee shall be
paid retroactively form the original date of hire. Union obligations for such
employee shall be computed on the basis of the original date of hire.
18.4 The Employer shall not employ temporary employees if any of the bargaining
unit employees performing such work are on layoff. The Employer agrees that the
job security and earning opportunities shall not be diminished for the regular
bargaining unit employees when temporary employees are used. The Employer shall
not abuse its right to use temporary employees to avoid hiring regular
bargaining unit employees.
ARTICLE 19: HOLIDAYS, PERSONAL DAYS/PAID TIME OFF AND SICK DAYS
19.1 Each Supplemental Agreement shall set forth the number of designated
holidays and sick days, personal days or paid days off that shall be granted.
Employees shall be eligible for holidays at time of hire and those employees who
have completed their trial period shall be eligible for paid time off, sick
days, personal days or paid days off.
19.2 Employees may refrain from working one (1) additional day each year on a
national or ethnic holiday of their choice, but without pay.
19.3 An employee shall not be eligible for holiday pay if:
19.3.1 He or she is absent from work on the work day immediately before or after
the holiday, except for a justifiable cause, which shall include absence from
work when the shop is not in operation; or
19.3.2 He or she becomes disabled and the holiday falls on a day beyond the
sixtieth (60th) day after the said employee last worked in the shop.
19.4 When personal days are provided, they must be scheduled with the approval
of the Employer. Sick days and/or personal days may be taken in one-half (1/2)
day increments.
19.5 Employees shall be paid for unused sick days, personal days and paid days
off at the end of the applicable leave year. The local Supplemental Agreements
shall set forth the system for accruing days off, that is, calendar year,
contract year or anniversary date.
19.6 The Employer shall not count any compensated time off as absences for
disciplinary purposes.
19.7 Holiday pay shall be paid at an employee's regular hourly rate. When an
incentive system is in effect, the applicable local Supplemental Agreement shall
set forth the computation for holidays and other paid days off, which shall not
be lower than the extant holiday rate.
19.8 When a holiday falls during an employee's vacation, the employee shall
receive the holiday pay and shall not be charged a vacation day for that day.
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ARTICLE 20: BEREAVEMENT PAY
20.1 An employee who has successfully completed his trial period shall be
granted paid time off at the holiday rate for bereavement leave in the event of
a death in his/her immediate family.
20.2 Except in those facilities in which employees enjoy more favorable
benefits, bereavement leave shall be:
20.2.1 For the death of parents or legal guardians, children (including adopted
and step children), siblings or spouse, three (3) days.
20.2.2 For the death of grand-parents, grand-children, mother/father-in-law or
son/daughter-in-law, one (1) day.
20.3 Bereavement leave may be taken on any scheduled work day(s) within a
reasonable time after the employee is notified of the death. In the case of a
three (3) day benefit, the days taken must be continuous. The Employer may
require documentation for the basis for the leave promptly after the leave
period.
ARTICLE 21: SHOP STEWARD
There shall be in the facility of the Employer Shop Steward(s) designated by the
Union. The Shop Steward(s) shall be compensated by the Employer for time
unavoidably lost during working hours in the process of adjusting grievances.
For purposes of layoff only, shop Steward(s) shall have super-seniority over
other bargaining unit employees.
ARTICLE 22: SENIORITY/LAYOFF
The provisions governing seniority and lay off in the 1994-97 agreements
covering individual facilities and the practices developed thereunder shall
continue.
ARTICLE 23: WORK ASSIGNMENTS
The provisions governing transfers, promotions, job classifications,
cross-training and job postings in the 1994-97 agreements covering individual
facilities and the practices developed thereunder shall continue.
ARTICLE 24: DISCHARGES AND DISCIPLINE
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24.1 No employee shall be discharged without just and sufficient cause, except
during his trial period. If the discharge or disciplinary act is found to be
unjustified, the employee shall be reinstated and may be compensated for his
loss of earnings during the period of such discharge or disciplinary act.
24.2 All disciplinary notices, including those for absences, shall be of no
effect one year after the occurrence.
24.3 The Employer shall inform the Union of all discipline imposed on an
employee, including verbal warnings.
ARTICLE 25: LEAVES OF ABSENCE
25.1 The Employer shall grant reasonable leaves of absence to employees for a
justifiable cause. Except as may be required by law, the Employer is not
required to grant a leave for a period of less than five (5) consecutive work
days. Employees on leaves of absence shall not lose any job rights and shall be
entitled to return to their regular job prior to such absence.
25.2 RETURN FROM MILITARY SERVICE - Any employee who has been conscripted,
inducted or drafted into the military service of the United States Government,
shall, upon termination of such service, be restored to his former position or
to a position of like seniority status and pay provided he applied for
re-employment within ninety (90) days after the date of his discharge.
25.3 FAMILY LEAVE - The Employer shall grant, upon request of the Union, up to
six (6) months' leave of absence without pay to male and female employees for
the birth or adoption of a child or for the care of a seriously ill family
member or live-in partner (hereinafter "Family Leave"). The Employer may hire a
provisional employee for a period not to exceed six (6) months to take the place
of any employee who is on Family Leave. Upon the date of hire, the Employer
shall give the Union and the provisional employee notice of the employee's
provisional status. During such period, provisional employees shall be entitled
to all the rights of regular employees under this Agreement. The Employer may
retain a provisional employee as long as such action does not displace the
employee on Family Leave or any other regular employee.
An employee on Family Leave shall be entitled to return to his or her regular
job prior to such absence, or an equivalent position, and, subject to the
foregoing, shall not lose any rights or privileges under this Agreement.
25.4 The Employer may require proper medical certification for leaves relating
to an employee's own serious health condition, or for the care of a seriously
ill family member or live-in partner.
ARTICLE 26: TIME CLOCK
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The Employer shall maintain an adequate number of time clocks on its premises,
and each employee covered by this Agreement shall punch his or her time card
before starting work and at the completion of work and before and after lunch.
ARTICLE 27: RIGHT TO VISIT SHOP
Duly authorized representatives of the Union, including engineers and
accountants, shall have the right to visit the premises of the Employer at
reasonable times for the purpose of ascertaining whether the provisions of this
Agreement are being complied with. Such visits shall be conducted so as not to
cause interference with operations. In addition, the Employer shall provide
access to relevant accounting books and records as the Union may reasonably
request in order to ascertain whether the provisions of this Agreement are
being complied with.
ARTICLE 28: EMPLOYEE BENEFIT FUNDS
28.1 The Employer shall pay monthly to the Union an amount equivalent to a
percentage, as described in the applicable Supplemental Agreement, of each total
gross weekly payroll (before deduction for federal, state or local taxes) of all
bargaining unit employees (whether Union or non-Union employees, and whether
regular or trial period employees) employed in its facility. All payments shall
be due on the tenth (10th) day of the following month. Such payments shall be
allocated towards the following Funds:
28.1.1 Towards the ILGWU National Retirement Fund, a trust fund established by
collective agreement for the purpose of providing pensions or annuities on
retirement or death of employees.
28.1.2 Towards the ILGWU Health Services Plan, a trust fund established by
collective agreement for the purpose of providing employees with drugs,
medications, and other health services.
28.1.3 Towards the ILGWU Eastern States Health and Welfare Fund, a trust fund
established by collective agreement for the purpose of providing employees with
health, welfare and recreation benefits and services.
28.1.4 The Employer shall contribute to substitute employee benefit funds as may
be required by local Supplemental Agreement.
28.2 In addition to the regular employer contribution to the Union relating to
the ILGWU Eastern States Health and Welfare fund
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required by this Article, the Employer shall pay monthly to the Union, as
additional employer contributions toward the ILGWU Eastern States Health and
Welfare Fund for cafeteria plan benefits, twenty three dollars ($23.00) for
individual coverage and an additional thirty-two ($32.00) dollars, for a total
of fifty-five ($55.00) dollars, for dependent coverage per month per eligible
employee. Such additional employer contributions due under this Paragraph shall
be paid to the Union in advance and no later than the first day of each month.
In addition to the regular reports and information the Employer is required to
provide to the Union pursuant to this Article, the Employer shall submit to the
Union together with such reports a special monthly report in the form prescribed
by the Health and Welfare Fund listing at least: (a) the name and Social
Security Number of each employee for whom the Employer is required to submit
additional contributions by virtue of the said Cafeteria Plan, and (b) the
amounts of additional employer contributions attributable to such individual
employee's contribution obligations. An eligible employee is an employee who is
eligible to receive hospital, medical, surgical and major medical benefits under
the ILGWU Eastern States Health and Welfare Fund solely in accordance with the
Amended By-Laws, Rules and Regulations of the Fund. In addition to any other
requirements which the Fund may establish concerning an employee's eligibility
to participate in and/or receive benefits from the Fund, it is also understood
that no contributions will be required for any employee or former employee of
the Employer who is participating in and/or receiving benefits from the Fund as
a result of the Consolidated Omnibus Budget Reconciliation Act of 1985
("COBRA"). The Union shall provide the Employer with a copy of all benefit
enrollment forms for employees who have elected family coverage through the
Health and Welfare Fund. If those enrollment forms are not available on hard
copy, the Union shall provide the Employer with access to such data in whatever
form it is maintained. Additionally, the Union shall promptly supply copies of
enrollment forms reflecting a change in status to the Employer as soon as such
forms are completed.
28.3 If at any time during the life of this Agreement, as a result of government
mandated requirements, a benefit or a cost of any of the benefits shall be
increased, or a new benefit required, or the cost to any fund of providing
existing or new benefits is increased, the Union shall have the right to request
additional company contributions to cover the expense thereof.
28.4 The said Health and Welfare Fund shall continue to be maintained and
administered by the Board of Trustees in accordance with the by-laws or rules
and regulations adopted by the Board of Trustees for that purpose. The Employer
shall have no legal or equitable right, title, claim or interest in or to said
Fund, or the administration thereof. No individual employee shall have any legal
or equitable right, title or interest in, or claim against, his or any other
employer's payments towards the Health and Welfare Fund, or against said Fund,
except as may be provided by the by-laws or rules and regulations of said Fund.
28.5 The said Retirement Fund and the said Health Services Plan each shall be
administered in accordance with its by-laws or rules
<PAGE> 18
and regulations by a Board of Trustees. Each Board of Trustees shall be composed
of Union representatives and an equal number of representatives of employer
contributors to that Fund. In the event that the Board of Trustees shall be
deadlocked on any issue or matter arising in connection with its Fund, the same
shall be decided by a neutral person as set forth in the by-laws or rules and
regulations of said Fund, and his decision shall be final and binding. The
parties hereto hereby ratify, confirm and approve the composition and membership
of each Board of Trustees as now or hereafter constituted.
28.6 Each Board of Trustees mentioned in Paragraph 28.4 or 28.5 above shall
adopt and promulgate such by-laws or rules and regulations to effectuate the
purpose of its Fund as it may deem necessary and desirable, including the
detailed basis upon which payments from the Fund will be made, and shall have
the power to modify the same from time to time without notice, whenever it may
deem it necessary or desirable to do so. The parties hereby agree to be bound
thereby and they are hereby incorporated in and made part of this Agreement. It
is agreed that such Boards of Trustees may not increase the Company's level of
contribution during the term of this Agreement.
28.6.1 The Board of Trustees or other body administering
any of the benefit funds, except the ILGWU National Retirement Fund, is hereby
authorized and empowered, in its sole discretion and upon such basis as it deems
desirable, to transfer or mingle the assets of or to merge said Fund with any
other fund or funds now existing or hereafter established and provided for in a
collective agreement with UNITE or an affiliate thereof. In the event of such
mingling, transfer or merger, the amounts hereinabove provided to be allocated
towards the respective funds shall thereafter be paid over to the fund or funds
with which there has been such mingling, transfer or merger.
28.6.2 The Board of Trustees of the ILGWU National
Retirement Fund is hereby authorized and empowered, in its sole discretion and
upon such basis as it deems desirable, to transfer or mingle the assets of said
Fund or to merge said Fund with any other retirement fund or funds.
28.7 None of the monies paid into the Retirement Fund shall be used for any
purpose other than to provide for pensions or annuities on retirement or death
of employees and to pay the operating and administrative expenses thereof. The
monies of the other benefit funds shall be kept separate and apart from all
other monies except as allowed in Paragraphs 28.6.1 and 28.6.2.
28.8 Only the assets of each benefit fund shall be available for the payment of
the benefits provided by that benefit fund and only to the extent that such
benefit fund is financially able to make such payments.
28.9 The Employer shall have no legal or equitable right, title, claim or
interest in or to said Funds. No individual employee shall have any legal or
equitable right, title or interest in, or claim against, his or any other
employer's payments towards said Funds or against said Funds, except as may be
provided by the
<PAGE> 19
by-laws or rules and regulations of said Funds.
28.10 An annual audit of each Fund shall be made by accountants designated by
the Board of Trustees. A statement of the results of such audit shall be made
available for inspection by interested persons at the principal office of the
Fund and at such other places as may be designated by its Board of Trustees.
28.11 In the event benefit fund contributions are collected on behalf of a
health and welfare fund other than the Health and Welfare Fund listed in
Paragraph 28.1.3, the person who collected the contributions shall remit the
contributions to the proper health and welfare fund.
28.12 The Union or the Board of Trustees of a Fund, or both of them, shall be
proper parties-in-interest to enforce collection of payments due from the
Employer towards said Funds. Should the matter be submitted to arbitration and
the arbitrator find against the Employer, he may also order and direct the
Employer to pay interest at the current prime rate of interest as set by the
Amalgamated Bank of New York, 1710 Broadway, New York, New York. He may also
order and direct the Employer to pay the cost of investigation of payments due.
Should the matter be submitted to arbitration and the arbitrator find against
the Employer, the arbitrator may order and direct the Employer to pay the cost
of investigation together with reasonable attorneys' fees and other expenses
incurred in connection with the matter. In addition, the arbitrator may grant
such other relief as he deems appropriate under the circumstances.
28.13 The Union or the appropriate Board of Trustees or Boards of Trustees shall
have the right to enforce this Article, including the provisions pertaining to
delinquent contributions, by proceeding through arbitration or by instituting
appropriate action before a court or governmental agency or by pursuing any
other remedies provided by law or this Agreement.
ARTICLE 29: DENTAL PLAN
The Employer shall offer all bargaining unit employees the same dental plans on
the same terms as it offers to its non-unit employees. Premiums paid by
employees will remain for the duration of this Agreement at the levels in effect
on June 1, 1997. Employees who enroll must remain in the plan for a minimum two
year period.
ARTICLE 30: DISABILITY
Disability benefits currently in effect shall continue and shall be specified in
the applicable Supplemental Agreement.
<PAGE> 20
ARTICLE 31: GRIEVANCES AND ARBITRATION
31.1 Any and all disputes between the Union or any employees and the Employer
involving an alleged breach or issue of application or interpretation of this
Agreement or a local Supplemental Agreement shall be adjusted as follows:
31.1.1 The shop steward, together with a representative of the Union, shall
attempt to settle the matter with a representative of the Employer. No
adjustment shall be deemed binding on the Union unless approved by the Manager
of the Union or the designated Business Agent servicing the facility. Disputes
not specific to an employee or group of employees may be brought by a
representative of the aggrieved party.
31.1.2 A grievance is time barred if it is not submitted in writing to the
Employer within sixty (60) working days of the occurrence of the condition or
such time as the affected employee or the Union knew of the condition giving
rise to the grievance. In the case of a continuing violation, a remedy may be
granted for up to one year prior to the filing of the grievance. The time limit
for filing grievances shall not apply to disputes concerning payment of benefit
fund contributions or disputes regarding Article 10.
31.1.3 If they shall fail satisfactorily to dispose of any such grievance, the
matter shall be submitted to an arbitrator selected by mutual agreement from
the panel set forth herein. If the parties cannot agree on an arbitrator, they
shall select an arbitrator by alternately striking members of the panel. The
arbitrator who heard the previous case shall be struck first. The panel shall
consist of:
Daniel Brent
Robert Light
Joan Parker
John Sands
Arthur Stark
The arbitration panel and method of selecting a member of the panel for disputes
arising solely in the Alabama facility shall be set forth in the applicable
local supplement. The arbitrator shall base his decision on this Agreement
and/or the applicable local supplement and shall not alter or amend this
Agreement and/or a local supplement.
31.2 Either party desiring to use the arbitration procedure as herein provided
shall transmit a written notice to the other party no later than four (4) months
after the filing of the grievance. The award or decision of the arbitrator, in
addition to granting such other relief as the arbitrator may deem proper, may
contain provisions commanding affirmative acts or restraining acts and conduct
of the parties. If either party shall default in appearing before the
arbitrator, he is empowered nevertheless to take the proof of the party
appearing and render an award thereon. Any award or decision of the arbitrator
shall be final and binding and
<PAGE> 21
shall be enforceable by appropriate proceedings at law or in equity. His fee
shall be borne equally by the parties hereto.
31.2.1 The parties agree that any papers, notices or processes to
initiate or continue an arbitration hereunder may be served by mail, and all
papers, notices or processes in any application to a court to confirm or enforce
an arbitration award hereunder, including service of the papers conferring
jurisdiction of the parties upon the court, may be served by certified or
regular mail, directed to the last-known address of the Employer or the Union.
31.3 The procedure herein established for the adjustment of disputes shall be
the exclusive means for the determination of all disputes, complaints,
controversies, claims or grievances whatsoever, including the arbitrability of
any dispute. It is intended that this provision shall be interpreted as broadly
and inclusively as possible. Neither party shall institute any action or
proceeding in a court of law or equity, State or Federal, or before an
administrative tribunal, other than to compel arbitration, as provided in this
Agreement, or with respect to the award of an arbitrator. This provision shall
be a complete defense to and also grounds for a stay of any action or proceeding
instituted contrary to this Agreement.
31.4 Any dispute, complaint, controversy, claim or grievance hereunder which any
employee may have against the Employer may be instituted and processed only by
the Union in the manner herein provided. No employee shall have the right
individually to institute or process any action or proceeding with reference to
any dispute, complaint, controversy, claim or grievance, or to initiate or
compel arbitration in the event the Union fails or refuses to proceed with
arbitration.
ARTICLE 32: NO STRIKE/NO LOCKOUT PLEDGES
There shall be no strikes or lock-outs during the term of this Agreement for any
reason whatsoever, except as set forth in Article 34.
ARTICLE 33: NO REDUCTION OF WAGES OR OTHER BENEFITS
Wages and other terms and conditions of employment now existing or hereafter
established at any facility of the Employer shall not be lowered, except by
mutual agreement. Any custom or practice existing in a facility at the time of
the execution of this Agreement more favorable to the employees than the
provisions hereof shall be continued as heretofore.
<PAGE> 22
ARTICLE 34: STRUCK WORK-LABOR DISPUTE CROSSING PICKET LINES
34.1 To the extent that a contractor's manufacturing work involves the
integrated process of production of the Employer's garments, the Employer and
its contractors have a close unity of interest with each other and in any labor
dispute, and to such extent, the Employer and its contractors are not neutrals
with respect to each other but are jointly engaged in an integrated production
effort. Accordingly, to the extent permitted by law, it shall not be considered
a breach of this agreement on the part of the Union, any of its affiliates or on
the part of any employee if such worker refuses to cross any lawful picket line
recognized by the Union or its affiliates or to enter upon the lawfully picketed
premises of said contractor, either of his or her own volition or by direction
of the Union or the International or to refuse to handle garments from a
contractor with whom the Union or any of its affiliates has a lawful labor
dispute.
ARTICLE 35: TEMPORARY APPOINTMENT TO UNION STAFF
The Union shall have the right to appoint an employee to its staff on a
temporary basis, not to exceed nine (9) months, without said employee losing his
seniority rights.
ARTICLE 36: CONFORMITY TO LAW
36.1 If any provision of this Agreement or the enforcement or performance of
such provision is or shall at any time be determined to be contrary to law by or
enjoined by a court or administrative agency, then such provision shall not be
applicable or enforced or performed except to the extent permitted by law. The
Union and the Employer shall thereupon negotiate a substitute provision.
36.2 If any provision of this Agreement or its application is held invalid or
enjoined, the remainder of this Agreement shall not be affected thereby.
ARTICLE 37: JURY DUTY
An employee who has successfully completed his trial period and who
<PAGE> 23
is required on a non-voluntary basis to serve as a juror shall be paid his or
her full wage for a period not to exceed ten (10) working days once during each
year of this Agreement. Said employee shall be required to submit evidence as to
the length of jury service.
ARTICLE 38: UNION ACTIVITIES
38.1 Any employee who is called from his or her employment to serve on the
Union's Negotiating Committee shall be paid his or her full wage during the
entire time he or she shall serve on the Union's Negotiating Committee. A
maximum of one committee member for every twenty-five (25) bargaining unit
employees shall receive this benefit.
38.2 The Union shall have access to bulletin boards in the facilities.
ARTICLE 39: JOINT LABOR-MANAGEMENT COMMITTEE
The Employer and the Union shall designate an equal number of representatives to
form a Joint Labor-Management Committee. The Committee shall meet regularly at
least one (1) time per month. The Employer shall compensate employees at their
regular rate of pay for serving on the Committee during working time.
ARTICLE 40: VACATIONS
Each employee who has been employed ten (10) years shall receive a fourth week
of vacation paid by the Employer. Other aspects of vacation pay and time off
shall be set forth in the applicable local Supplemental Agreements.
ARTICLE 41: CUTTING
Any cutting and related tasks, such as marking, grading and digitizing, shall be
performed under the conditions specified in the Supplemental Agreement covering
employees represented by Local 10.
ARTICLE 42: REPORTING PAY
<PAGE> 24
Employees shall receive reporting (call-in) pay as set forth in the local
Supplement Agreements, which shall maintain the existing reporting pay benefit.
ARTICLE 43: 401(k) PLAN
The Employer shall provide access to a 401(k) plan for employees by
participating in the Textile Workers Pension Fund, National Plus 401(k) Plan.
The Employer's participation is on a non-contributory basis. The Employer shall
deduct voluntary employee contributions and forward such contributions in a
timely fashion to the Plan.
ARTICLE 44: NO WAIVER
The failure of either party to this Agreement to require strict performance of
any provision of the Agreement shall not be deemed a waiver or abandonment of
any of the rights or remedies provided herein for violation of the Agreement or
any provision thereof; nor shall it constitute a waiver or abandonment of any
right or remedy herein provided for a subsequent violation of any provision of
the Agreement.
ARTICLE 45: MANAGEMENT RIGHTS
All rights and prerogatives which may lawfully be exercised by management and
which are not specifically abridged or limited by this Agreement or the
applicable local Supplemental Agreement are reserved to the Employer.
ARTICLE 46: DURATION OF AGREEMENT
This Agreement shall be effective June 1, 1997 and continue in effect until
midnight of the 31st day of May, 2000. IN WITNESS WHEREOF, the parties have
hereunto set their hands and seals the year and date hereinabove written.
LIZ CLAIBORNE, INC.:
<PAGE> 25
By: /s/ John S. Moroz
UNION OF NEEDLETRADES INDUSTRIAL AND TEXTILE EMPLOYEES
By: /s/ Edgar Romney
Edgar Romney, Executive Vice President
By: /s/ Bruce Raynor
Bruce Raynor, Executive Vice President
LOCAL 10
By: /s/ Richard Rumelt
Richard Rumelt, Manager
LOCAL 23-25
By: /s/ Edgar Romney
Edgar Romney, Manager
LOCAL 99
By: /s/ Christine Kerber
Christine Kerber, Manager
SHIRT & LESIUREWEAR DIVISION, NEW YORK JOINT BOARD, LOCAL 150G/700
By: /s/ Olga Diaz
Olga Diaz, Manager
NORTHEAST DEPARTMENT, LOCAL 109
By: /s/ Sol Hoffman
Sol Hoffman, Director
SOUTHERN REGIONAL JOINT BOARD, LOCAL 310
By: /s/ Bruce Raynor
Bruce Raynor, Manager