COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN FIRST STUDENT INC. (COOS BAY, OREGON) AND UNITED FOOD AND COMMERCIAL WORKERS LOCAL 555

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1 11:06:52 AM DRAFT CBA/LR/July 15, 2010 COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN FIRST STUDENT INC. (COOS BAY, OREGON) AND UNITED FOOD AND COMMERCIAL WORKERS LOCAL 555 SEPTEMBER 1, 2009 TO SEPTEMBER 1, 2012

2 TABLE OF CONTENTS ARTICLE PAGE Preamble... 3 Article I - Recognition and Bargaining Unit... 3 Article II - Rights of Management... 3 Article III - Union Security and Employment... 3 Article IV - Bargaining Unit Work... 4 Article V - Hours of Work... 4 Article VI - Seniority... 5 Article VII - Wage Scale... 6 Article VIII - Holidays... 7 Article IX - Leaves of Absence... 7 Article X - Sick Leave... 8 Article XI - Extracurricular and Charter Trip Policy... 8 Article XII - Jury Duty Article XIII - Bereavement Leave Article XIV - General Conditions Article XV - Discharge and Discipline Article XVI - Health and Welfare Article XVII - No Strike No Lock Out Article XVIII - Grievance and Arbitration Article XIX - Substance Abuse Testing Policy Article XX - Expiration and Renewal Schedule A - Wages

3 PREAMBLE This Agreement is entered into between First Student, Inc. referred to hereafter as Employer and United Food and Commercial Workers Union Local 555, Tigard, Oregon, chartered by the United Food and Commercial Workers Union, referred to hereafter as the Union. It is the intent and purpose of the Employer and the Union to promote and improve labormanagement relations between them and set forth herein the basic terms of agreement covering wages, hours, and conditions of employment to be observed by the Employer and the Union. ARTICLE I RECOGNITION AND BARGAINING UNIT 1.1 The Employer recognizes the Union as the sole Collective Bargaining Agent with respect to work, rates of pay, hours, and all other terms and conditions of employment covered by this Agreement for all employees in the appropriate bargaining unit herein defined: The bargaining unit shall include all regular and substitute bus drivers employed by the Employer at its Coos Bay, Oregon facility, located at 190 Wall Street, covered by the wage schedules listed herein. ARTICLE II RIGHTS OF MANAGEMENT 2.1 The Employer retains, solely and exclusively, all the rights, powers and authority which it exercised or possessed prior to the execution of this Agreement, except as specifically amended by an express provision of this Agreement. Without limiting the generality of the foregoing, the rights, powers and authority retained solely and exclusively by the Employer and not amended by this Agreement include, but are not limited to the following: to manage, direct and maintain the efficiency of its business and personnel; to manage and control its facilities, equipment and operations; to create, change, combine or eliminate jobs and operations in whole or in part; to discontinue and/or to subcontract work for economic or other reasons; to direct the work force; to increase or decrease the work force and determine the number of employees needed; to hire, transfer, promote, demote, suspend, discharge and maintain the discipline and efficiency of its employees; to layoff employees; to establish operating standards, schedules of operation and work load; to specify or assign work requirements and require overtime; to assign work and decide which employees are qualified to perform work; to adopt reasonable work rules and rules of conduct, appearance and safety and penalties for violation thereof, and to amend these rules from time to time; to determine the type and scope of work to be performed and the services to be provided; to determine the methods, processes, means and places of providing services; to adapt, install or operate new equipment or operations; to determine the location and relocation of operations and to effect technological changes. Nothing contained in this Agreement is intended or shall be construed as a waiver of any of the usual inherent and fundamental rights of management, whether the same has been exercised heretofore or not. 2.2 Reasonable Work Rules: The Employer shall further have the sole exclusive right to adopt and enforce reasonable rules, regulations and policies to govern its operations and from time to time, change or amend such rules, regulations and policies. The Employer shall notify the Union, in writing, prior to implementing any changes and/or amendments to said rules, regulations and policies. 2.3 Revenue Contract: The revenue contract between First Student, Inc. and the Coos Bay School District will supersede in any conflicts that arise from this Collective Bargaining Agreement. ARTICLE III UNION SECURITY AND EMPLOYMENT 3.1 It shall be a condition of employment that all employees covered by this Agreement shall, on the thirtieth (30th) day following the beginning of such employment, become and remain members in good standing in the Union. For purposes of this Article an employee shall be considered to be a member in good standing of the Union if that employee tenders to the Union the uniformly required dues and initiation fees required by the Union for membership. For purposes of this Paragraph, the execution date of this Agreement shall be considered as its effective date. All employees hired prior to the effective date of this Agreement shall be given thirty (30) days in which they may choose 3

4 to join the Union 3.2 Termination - Failure to Meet Obligations: Upon failure of any employee to comply with any provision of Article III, Paragraph 3.1 of this Agreement, the Union may then notify the Employer in writing of such failure, and thereupon the employee shall neither be continued in employment thereafter, nor rehired until such employee is in good standing in the Union as defined by the National Labor Relations Act, as amended. The Employer will not be asked by the Union to discharge any employee for noncompliance with the provisions of Paragraph 3.1 until seven (7) days after the Union has furnished the Employer with notice in writing which contains the following: (b) (c) A statement that the Union has strictly complied with the necessary procedural steps pursuant to the International Constitution and By-Laws in making its demand. A statement that demand for termination is made for no reason other than the employee s failure to pay the dues and initiation fees uniformly required by the Union for membership in the Union, pursuant to the Union Security clause. The Union agrees to hold the Employer harmless for discharges made pursuant to this Article. 3.3 The Employer agrees to deliver to each new employee a statement to be furnished by the Union outlining the Union Security provisions of this Agreement. No less than once a month, the Employer shall provide the Union with a listing of the name, address, telephone number, Social Security number, job title, hourly wage rate and scheduled hours of work of newly hired employees. The Employer shall also provide the Union with names of employees terminating and employee changes including leaves of absence, return from leaves of absence, change in status, classification or work location. 3.4 The Employer shall deduct from each employee s wages the amount of Union dues, and initiation fees, as specified by the Union, of all employees covered by this agreement who have voluntarily provided the Employer with a written assignment authorizing such deductions. The deduction of the union dues shall be made on a bi-weekly basis (every two weeks) and shall be forwarded to the Union within ten (10) days of the beginning of the following month. Total deductions for union dues during any calendar month shall not exceed two (2) time the employee s regular monthly dues. Once signed, the authorization cannot be canceled for a period of one (1) year from the date appearing on such written assignment or with a fifteen (15) day period prior to the termination date of the current collective bargaining agreement between the Employer and the Union, whichever occurs sooner. 3.5 The Employer shall furnish to the Union no more frequently than once every three (3) months a written list of all bargaining unit employees along with the hire date, current wage rate and total hours worked for the covered period. 3.6 Political Check-0ff: For employees who voluntarily authorize a contribution to the UFCW Active Ballot club political action committee, the Employer agrees to deduct from those employees paycheck, on each regular pay period, the authorized amount via payroll deduction basis and forward same to the Union monthly. ARTICLE IV BARGAINING UNIT WORK 4.1 A bus is defined as any vehicle having a capacity of five (5) or more and conforming to Oregon State bus certification requirements. 4.2 Bargaining unit work may not be performed by anyone other than bargaining unit employees except in case of an emergency or as required due to business needs. ARTICLE V HOURS OF WORK 5.1 Workweeks: The workweek consists of seven days beginning on Friday and ending on Thursday. 5.2 Weekends: The weekend starts at 5:00 p.m. on Friday and continues through 11:59 p.m. on Sunday. 5.3 Workdays - Meal Periods: No employee shall be scheduled for more than five (5) consecutive hours without a meal period. 4

5 5.4 Time Off Between Shifts: No employee shall drive a school bus or other pupil transporting vehicle more than ten total hours during any consecutive fifteen hour period. At the end of ten hours of driving or a fifteen-hour period, whichever occurs first, the driver shall not again drive a school bus or pupil transporting vehicle until at least eight hours have elapsed. 5.5 Overtime: Overtime is defined as work in excess of 40 hours in a week, school related work performed after eight (8) hours in a day and school related work performed on Saturday, Sunday and Employer recognized Holidays. Overtime hours shall be compensated at one and one half (1 ½) times the employee s regular rate of pay and shall not be compensated for by time off in lieu of wages. 5.6 Rest Periods: Employees working three (3) consecutive hours or more in a workday shall receive one (1) fifteen (15) minute rest period during such working period. ARTICLE VI SENIORITY 6.1 Loss of Seniority: Employees shall lose all previous seniority, and their employment relationship shall be terminated for the following reasons: (b) (c) (d) (e) (f) Voluntary quit or retirement; Discharge for just cause; Absence or layoff when the employee does not return to work on the day specified by the Employer after having received one (1) weeks notice of recall; Layoff for a period of six (6) months or more; provided that for employees who have been employed for two (2) years or more, this period shall be extended to ten (10) months; Failure to return to work in accordance with the terms of a leave of absence as provided in Article IX of this Agreement. Layoff for a period of twelve (12) months or more. 6.2 Promotions: In promotion or creation of a new job or position within the driver class, including open routes, the Employer shall post the position for a period of 5 days for people to submit their names to be considered for that position. The Employer shall give first consideration to incumbent drivers based on their qualifications, experience and seniority. The Employer agrees to notify the Union of the pay rate for any new job or position within the driver class. 6.3 Term Shutdown: At the end of a regular school year, summer session or other work term, an employee shall be placed on layoff as his scheduled work is discontinued, without regard to his seniority and without affording the employee any opportunity to displace a less senior employee on another route or work assignment. When summer work is available, the drivers will have the ability to sign up for that work. In the event that there are not enough drivers to cover summer work, that work will be assigned from the bottom of the seniority list. 6.4 Scheduling Practices: (b) (c) Seniority lists will be posted in the terminal and will be updated by making the appropriate additions and deletions quarterly. The drivers shall vote once at the beginning of each new school year on whether or not to allow bidding for all routes or just the open routes. The drivers may opt for another bidding vote during the school year if there is a mandated school district route change, a school closure or any other significant event that requires the drivers to alter their existing routes. It shall be the obligation of the Employer to promptly investigate alleged abuses upon presentation, and to 5

6 rectify such abuses when justified within the meaning of this section. (d) (e) In the event of an alleged complaint, the Employer agrees to conduct a thorough investigation prior to the removal of said driver from their route. Route Cancellation: If entire route is cancelled, driver will receive entire pay, if not notified with at least one (1) hour notice. Portion of Route Cancelled: Driver will receive up to thirty (30) minutes pay for portion of route cancelled, without prior notification. Notice of Cancellation: If driver notified of route cancellation at least one (1) hour prior to report time, driver will receive no pay. If the District closes school (i.e. weather), the media notification will serve as notification for our drivers and the drivers will receive no pay for that day. (f) Special Education routes will be posted for five (5) days. Drivers who sign up for Special Education routes, with experience, shall be assigned by seniority. Those with existing Special Education routes during the regular school year shall have preference. Open summer routes shall be assigned by current SPED drivers first, then those with First Student SPED experience, and last seniority. Qualifying experience for SPED routes shall be determined by documented and practical SPED driving of a least 60 driving days while employed at First Student and/or an immediate prior employer and the Company shall bear the burden of providing such documentation to the Union upon request. It is understood that once an employee meets this qualification threshold, all qualifications become equal and that the employees that are in consideration for SPED shall be assigned by seniority. (g) (h) When scheduling Special Education routes, reasonable effort shall be made to balance routes. Preference shall be given to senior drivers. Unless stated otherwise in this agreement, seniority shall prevail in the assignment of all bargaining unit work. 6.5 Mid-day/Kindergarten Substitution List: Drivers may sign up to sub on mid-day/kindergarten routes. Signup periods will be in August and January. Signup sheets in January will start the rotations from the top of the list, no matter where the last assignment fell on the previous list. The names taken from the sheet will be placed on the sub list in order of seniority. Drivers may have their name added, to the bottom of the list, or removed, one time during the list period. There is no limit on the number of drivers who can be on the list. Subbed routes will be rotated according to the list, provided the driver is familiar with the route. The only exception to rotation will be if the subbed route interferes with a driver s regular route. If the subbed route is scheduled during the driver s regular route time, it will be assigned to the next person on the list. In the event the route cannot be covered by a driver on the list, the subbed route may be assigned to a sub/trip driver or a driver not on the list. There is no limit on the number of times a driver can turn down subbing a route. 6.6 If an extracurricular trip or charter gets cancelled within one hour or less from the start time, the driver will be paid two hour s wages. 6.7 Seniority shall be determined by the most recent date of hire. ARTICLE VII WAGE SCALE 7.1 The minimum wage rates and effective dates mutually agreed upon for employees working under this Agreement are set forth in Schedule A, which by reference is made part of this Agreement. 7.2 Contract Minimums: The terms of this Agreement are intended to cover only minimums of wages and other employee benefits. The Employer may place superior wages and other employee benefits in effect and may reduce the same to 6

7 the minimum herein prescribed without the consent of the Union. 7.3 Prior Experience Credit: All new hires with a Class A or Class B CDL with a passenger endorsement and experience driving a vehicle designed to carry 16 passengers or more within the past two years shall receive pay at the level corresponding to their years of prior service. Any credit for prior experience will be adjusted after the employee has provided proof of comparable experience. Proof must be provided within 90 days from the date of hire. 7.4 Wages Claims: All claims for back wages or overtime not paid must be presented through the Union to the Employer in writing within ten (10) working days of the date the employee is paid for the period in which back wages or overtime is claimed; otherwise the employee foregoes any right of appeal under this Agreement except as provided below: Wage increases due the employee in accordance with Schedule A of this Agreement. 7.5 If a driver takes a one-day trip that is scheduled for more than 15 hours but less than 24 hours, they will be required to take an 8-hour rest period upon arrival at their destination. The driver will receive $30.00 for this off duty rest period. 7.6 Direct Deposit is available to all employees. after 90 days of employment. ARTICLE VIII HOLIDAYS 8.1 Holidays: The following holidays will be paid at an average of the hours worked in the previous payroll period, including casual labor and route, excluding weekend trips. Thanksgiving, Day after Thanksgiving, & Memorial Day Substitute and Trip drivers will be paid four (4) hours for the holiday. 8.2 Eligibility: To be eligible to receive holiday pay, an employee must: Work the last scheduled shift prior to the holiday and the first scheduled shift after the holiday, unless unable to report to work due to a bona fide illness or injury, or if the employee has received prior approval from management for a leave of absence. 8.3 Work on Holidays: Rate of Pay: Employees eligible for holiday pay who work on an Employer recognized holiday shall receive time and one-half (1 ½) of the employee s regular straight hourly rate of pay for all hours worked, plus any regular earned holiday pay. ARTICLE IX LEAVES OF ABSENCE 9.1 Personal Leave of Absence: An employee who has completed one (1) year or more of continuous active service may be granted a personal leave of absence without pay for up to twelve (12) weeks during the life of this agreement. If the leave qualifies under the Family Medical and Leave Act (FMLA), it may be granted up to twelve (12) weeks per year. 9.2 Medical Leave of Absence: An employee who has completed one (1) year of continuous service shall be granted a leave of absence without pay for an on or off the job injury or illness for up to six months during the life of this Agreement. The Employer may extend the time limit shown by up to six months if the employee has five years of service, the employee requests such extension in writing and furnishes a physician s report stating that the extension is necessary and that the employee is likely to be able to return to work following such extension. Such leave extension shall be at the discretion of the Employer but shall not be reasonably denied. The Employer may require a doctor s verification of incapacity at any time during such leave of absence. If the leave qualifies under the Family Medical and Leave Act (FMLA), it shall be granted up to twelve (12) weeks per year. 7

8 9.3 Written Requests: A request for leave of absence or extension must be made in writing by the employee and approved in writing by the Employer. All requests must be made 14 days in advance, except when leave is unforeseen. The Employer shall respond in writing within 7 days. 9.4 Working on Leave: Unless approved in advance by the location manager engaging in any form of employment or selfemployment while on leave of absence shall subject the employee to discharge for just cause. ARTICLE X SICK LEAVE 10.1 Sick Leave: Each regular employee covered by this Agreement on the date of ratification of April 1, 2010 will earn sick leave at the rate of 5 days per year. Such employee s unused sick leave can be accumulated up to a maximum of 30 days. Sick leave will be paid at an average of the hours worked in the previous payroll period, including casual labor and route, excluding weekend trips. Also effective upon the ratification of this Agreement on April 1, 2010 all newly hired employees thereafter shall earn a maximum of five (5) sick leave days per year. Such employee s may not accumulate, bank or carryover unused sick days. However, any such employee hired before the Christmas school year break and who maintains Perfect Attendance (e.g., no absences, lateness) and subsequently return to work as scheduled the following school year for a minimum of thirty work (30) days will receive payment for the five (5) unused sick days less applicable Federal and/or State taxes If an employee is collecting Worker s Compensation Temporary Disability Benefits, and such benefits are less than a full days payment of the sick leave benefits in accordance with the provisions above, such employee shall only receive sick leave benefits in addition to such Worker s Compensation Temporary Disability Benefits in an amount sufficient to equal a full days payment, but in no event in excess of his total earned sick leave hours. A full sick day will be deducted from the employee s sick leave total. The employee has the option of requesting sick pay Sick leave may be used for employee illness, children s illness, hospitalization, and surgery for regular employees An employee who returns to work in the same workweek as an illness or accident occurs shall be restored to their regular route not later than the second day after notifying the Employer of their availability, provided employee is able to resume his normal duties. ARTICLE XI EXTRACURRICULAR AND CHARTER TRIP POLICY 11.1 Extracurricular and Charter Definition: Extracurricular trips are school trips for educational or athletic events. Charter trips are trips that are done for clients who are not part of the school district Extracurricular and Charter Procedure: Drivers may sign up for extracurricular and charter trips. Sign up periods will be in August and January. Sign up sheets in January will start the rotations from the top of the list, no matter where the last trip fell on the list. There are three separate trip lists. Weekend/Overnight Trip List: Route Drivers (Regular Route and SPED) who sign up will take weekend, overnight and non-school day trips longer than three (3) hours. Names are taken from the sign up sheet and put onto the list in order of seniority. The fifteen (15) most senior drivers who sign up will be placed on the list. The list will rotate as the trips come in; the most senior driver will get the first trip. (b) Old Between route trip drivers will be taken from the sign up sheet. There is no limit on the number of drivers who can be on the sheet. The names taken from the sheet will be placed on the trip list in order of seniority. Trips will be rotated according to the list. The only exception to rotation will be if the trip interferes with a route. If the trip is scheduled during route time (mid-day), it will be assigned to a driver who does not have a mid-day run. [New (b)-i do not have a notation if this was TA d by the parties] Short Weekend Trip List: Short weekened trips are any weekend trip scheduled for three (3) or less. Route Driver (regular Route and SPED) may sign up for the Short Weekend Trip List. Names are taken from the signup sheet and put onto the list in order of seniority. The ten (10) most senior drivers who sign up will be placed on the list. The list will rotate as the trips come in; the most senior driver will get the first trip. Drivers who are on the Weekend/Overnight 8

9 Trip List are not eligible to be on the Short Weekend Trip List. (c) Between Route Trip List: Route drivers (Regular Route and SPED) will be taken from the signup sheet. There is no limit on the number of drivers who can be on the sheet. The names taken from the sheet will be placed on the trip list in order of seniority. Trips will be rotated according to the list. The only exception to rotation will be if the trip interferes with a route. If the trip is scheduled during route time (mid-day), it will be assigned to a driver who does not have a mid-day run. Trips occurring after a route during the school week (excluding the last school day of the week) shall be assigned from the Between Route Trip List. Weekday trips will be paid eight (8) hours of straight time. Any hours over 8 will be paid at overtime pay one and one-half (1 ½) times the straight time rate. (d) Trips scheduled for weekdays will be taken by substitute/trip drivers. The only exception will be for trips that are scheduled as overnight trips or those trips on the last weekday of the week that begin befoe 5:00 PM and extend beyond 5:00 PM. These trips will be assigned on the trip list and route will be covered by substitute/trip drivers. Weekday trips will be paid eight (8) hours of straight time. Any hours over 8 will be paid at overtime pay one and one-halt (1 ½) times the straight time rate. (e) Weekend: For the purposes of trip assignment only, weekend trips will be all trips beginning at 5:00 PM on the last school day of the week through 11:59 PM on Sunday; or all trips which begin earlier on the last school day of the week and extend beyond 5:00 PM. Extracurricular weekend trips on Saturday or Sunday will be paid at the overtime rate. Friday trips will be paid at the overtime rate after eight (8) hours or after 5:00 PM. (f) Pay for overnight trips: (1) The first and last day of the trip are paid at actual time. Actual time is the time that the bus is needed by teacher/chaperones. (2) The driver will be paid 16 hours on the days that are in between the first and last day. This is for trips which are for 3 days or more. (g) (h) (i) If a trip is scheduled for more than 15 hours, the driver will be required to take an 8 hour rest period in a motel room that is provided and paid for by the Employer. Oregon Department of Education regulations and Federal Motor Carrier Safety Regulations state that a driver may not drive for more than 10 hours in a 15 hour period without 8 hours off duty. If a trip is scheduled for more than 15 hours and the driver is required to take the 8 hour rest period, the Employer will pay them $30.00 for the off duty rest period. In the event that a trip is scheduled on a weekend, but no one on the trip list wishes to take the trip, management has the right to assign the trip to a driver who is not on the list. Driver may turn down trips if they choose to do so. A driver who turns down 5 or more trips will have their name taken off the list and may not sign up again until the next sign up period Whenever possible, one week advance notice shall be given on all trips. It shall not be considered a turn down if a driver refuses a trip after receiving less than one week notice of the trip If a trip is cancelled without a minimum of one hour notice, the driver shall receive two (2) hours pay. 9

10 ARTICLE XII JURY DUTY 12.1 Any regular employee called for service on a municipal, district, circuit or federal court jury shall receive pay for each day on such jury service at their normal route pay rate for the day. Reimbursement by the Employer is provided herein for jury duty service shall be limited to one hundred and seventy three (173) hours of pay in any one (1) calendar year Jury Duty: If an employee is excused temporarily or permanently from jury service, on any scheduled workday, he shall report to work to complete the remaining hours of his route, providing transportation time will permit him to return to work prior to the start of his route. The employee must furnish the employer with a written statement from the appropriate public official showing the dates and time served and the amount of jury pay received Court Appearances: Employees are required to appear in court or in legal proceedings on behalf of their Employer shall receive compensation at their regular straight-time hourly rate of pay for the time spent in making such appearances less any witness fees received. If an employee appears in court or legal proceedings on behalf of the Employer on his days off, he shall receive his straight-time hourly rate of pay for the time spent making such appearance less any witness fees received; but such time shall not be considered part of the workweek under the terms of this Agreement. ARTICLE XIII BEREAVEMENT LEAVE 13.1 Eligibility - Calculation of Benefits: All regular employees will be paid up to 3 days bereavement leave upon the death of a member of their immediate family. Immediate family is defined as spouse, mother, father, brother, sister, son, daughter, stepchild, mother-in-law, father-in-law, grandparents or grandchildren. ARTICLE XIV GENERAL CONDITIONS 14.1 Physical Examinations: Physical examinations which are required by the Department of Education shall be paid by the Employer, provided that the employee works continuously for 90 days. Employees working less than 90 days shall reimburse the Employer for the physical exam unless the employee is terminated Union Visitation: The Union may designate in writing to the Employer the name of the Union Representative and alternate assigned to the Coos Bay facility. The Union Representative so designated shall be allowed to visit the Employer s facility at reasonable times for the purpose of administering the terms of this Agreement, providing he first notifies the Division Manager upon his arrival before proceeding into the facility. Such visits shall not interfere with the performance of work by an employee covered under this Agreement. ARTICLE XV DISCHARGE OR DISCIPLINE 15.1 Discharge and Discipline: The Employer shall have the right to discipline or discharge an employee for just cause. (b) Progressive Discipline: The Employer recognizes the principle of progressive discipline and agrees to follow such principle. The employee shall receive no less than a verbal warning and written warning prior to termination, except in cases of serious offenses. Serious Offenses: Employees who engage in serious offenses shall be subject to immediate discharge regardless of the employee s previous history. Serious offenses may include but are not limited to falsification of records, theft, dishonesty, incompetence, serious preventable accidents. 10

11 (c) Other Employment: A regular driver who works for another Company on a day when he refuses work at First Student, Inc. may be subject to termination. ARTICLE XVI HEALTH AND WELFARE 16.1 Health and Welfare: All regular employees are eligible for medical coverage after 90 days of continuous employment. The Employer will contribute toward the cost of medical insurance for each employee who chooses to take coverage through the Employer sponsored medical plan. The Employer shall offer medical and dental insurance. The Employer will contribute the current monthly amount listed in The Employer contribution will be made for all employees who work a minimum of 60 hours in a month. Any driver that meets the hour requirement during the two summer months will receive two months reimbursement at the start of the school year to apply toward their summer coverage Health and Welfare Reimbursement: First Student will reimburse each employee up to the current monthly reimbursement (see chart below) to any employee who produces a receipt for an individual or individual plus family medical and/or dental policy including any qualified Health Savings Plan. Any driver that meets the hours requirement during the two summer months will receive two months reimbursement at the start of school year to apply toward their summer coverage. Both Parties may, by mutual agreement, agree to alternative health plans any time during the life of this Agreement. It is understood by the Parties that $20.00 per month will be designated for Dental. 09/01/09 09/01/10 09/0111 $325 $325 $ Vision: The Employer will reimburse each employee up to $150 for one month, every 24 months to any employee who produces a receipt for vision costs for the employee or an individual vision policy (this will count as one of the 10 months stated in Article 16.2.) (k) Plan: All regular employees are eligible to participate in the First Student, Inc. 401(k) plan after one year of continuous employment. Employees can enroll on January 1, April 1, July 1 and October 1 only. The Employer retains the right to amend and/or modify the 401(k) plan. ARTICLE XVII NO STRIKE NO LOCK OUT No Strike: During the term of this Agreement neither the Union nor its agents or representatives, nor any employees, individually or collectively, shall call, sanction, support or participate in any strike, work stoppage, picketing, sit-down, slowdown, or any refusal to enter the Employer s premises, or any other interference with any of the Employer s services or operations or the services or operations of any customer of the Employer. Employee of the Company must continue to work in the event a strike picket line is present at a customer s property or on the Company s property by an organization not party to this Agreement. Employee s of the Company are not precluded from supporting a union member in a labor dispute, provided however that employees of the Company will not present themselves as or in any manner representing the Company. When assigned work for a customer involved in a labor dispute employees will not engage with passengers while performing work duties. The above section does not prohibit an employee from participating in labor disputes while off duty, provided that the employer and/or their customer is not involved in the dispute Included Prohibitions: The prohibitions of this section shall apply whether or not: 11

12 (b) (c) The dispute giving rise to the prohibited conduct is subject to arbitration; Such conduct is in support of a work stoppage or picketing conducted by any other organization or by this organization with regard to any other bargaining unit, and; Such prohibited conduct is in protest of an alleged violation of any state or federal law Discipline: Any employee who participates in any activity prohibited by Section 1 of this Article shall be subject to discharge or to such lesser discipline as the Employer, at its discretion, shall determine No Lockout: The Employer agrees that there shall be no lockout of employees by the Employer during the term of this Agreement. ARTICLE XVIII GRIEVANCE AND ARBITRATION 18.1 The grievance procedure provided herein shall be the sole and exclusive remedy for an alleged grievance under this Agreement and the result achieved through the application of this procedure shall resolve a grievance for all purposes. The following procedures shall apply in all cases: (b) (c) The specific steps provided for throughout this Article, as well as the time limits for each, are intended by the Parties to be followed strictly in all cases, except where the Parties shall agree in writing to delete or to add steps or to extend specific time limits. Any failure by the Employer to respond within the time limit provided for each step shall have the same result as that of a timely negative response in that the grievance may be pursued to the next step. Any failure by the grievant or the Union to comply with the specific steps and time limits shall result in the grievance being barred for all purposes. Step One: A grievance shall be taken up at the first step by the grievant or the Union Representative orally and/or in writing with his/her Division Manager (or Employer designee) not later than ten (10) working days after the grievant first knew or could reasonably have known of the facts giving rise to it. The grievance shall specify in detail the alleged Agreement violations, including the Agreement provision alleged to have been violated. The Division Manager (or Employer designee) shall respond within ten (10) working days of receipt of the grievance. Step Two: If the grievance is not resolved at Step One, the grievant may notify the Area Manager (or Employer designee) in writing of his desire to have his grievance heard by the Area Manager (or Employer designee) or by his designated representative. A grievance filed at this step must have been properly filed in Step One and it must be hand delivered or postmarked not later than ten (10) working days after receipt of the Division Manager s written response in Step One. If the Division Manager (or Employer designee) fails to respond in Step One, a grievance filed at this step must be hand delivered or postmarked not later than ten (10) working days after the time limit for the Division Manager s (or Employer designee) response has expired. The Area Manager (or Employer designee) shall contact the grievant or the Union not later than ten (10) working days after receipt of the written request to schedule a grievance hearing. The Area Manager (or Employer designee) shall respond in writing to the grievant not later than ten (10) working days after the close of the hearing Grievance and Arbitration: If the grievance is not resolved in the written response provided for in Step Two and if the Union has processed the grievance in strict adherence with the express time limits in this Article, the Union may file for arbitration. Such filing must take place not later than ten (10) working days after the response from the Area Manager (or Employer designee). The Union Representative for the Union can request from the Employer the permission to bypass Step One and go to Step Two. In the event of the failure of the Parties to reach a satisfactory adjustment within fifty (50) working days from the date the grievance is filed in writing by the aggrieved Party, the moving Party must request the Federal Mediation and Conciliation Service to submit a list of eleven (11) Arbitrators residing in the Northwest from which an Arbitrator shall be selected by alternately striking names, to settle the matter; otherwise the grievance shall become null and void. 12

13 (b) The Arbitrator shall have no authority to: (1) Add to, delete from, amend or in any way disregard any of the terms of this Agreement; (2) Accept for submission any issue other than a factual question as to whether or not a specific, written Provision of the Agreement has been violated by the Employer; (3) Fashion a remedy in any grievance in which he fails to find that the specific, written Provision of the Agreement alleged by the Union to have been violated by the Employer has, in fact, been violated; (4) Accept for submission or render an award in a grievance in which the specific procedures of this Article, including the express time limits at each step, have not been adhered to; (5) Fashion a remedy in any grievance which back pay is awarded retroactively for more than ten (10) working days prior to the date on which the grievance was filed. (6) Award any monetary compensation or pay other than actual wages lost unless said monetary lost is specifically addressed in the Agreement. (7) The compensation for the Arbitrator shall be borne equally between the Employer and the Union - except that in cases of discharge or discipline, the cost of the Arbitrator and any jointly acquired court reporter shall be borne by the losing Party. If the grievance is not completely sustained then it shall be considered split, and the Parties shall equally share in the cost of the Arbitrator (and a jointly acquired court reporter). ARTICLE XIX SUBSTANCE ABUSE TESTING POLICY 19.1 The Parties agree that all employees covered by this Agreement will be covered by the Employer s Drug and Alcohol policy. A copy of that policy will be provided to the employees and to the Union The Employer retains the right to amend and/or modify the Substance Abuse Testing Policy. ARTICLE XX EXPIRATION AND RENEWAL 20.1 This Agreement shall be in effect from September 1, 2009, through September 1, 2012, except as hereinafter provided, and shall continue from year to year thereafter unless either party shall give written notice to the other at least ninety (90) days prior to the expiration date of September 1, 20012, or at least ninety (90) days prior to the nearest Sunday to any subsequent September 1, of any succeeding year of its desire to negotiate the terms of a successor Agreement. A WAGES Year 09/01/09 09/01/10 09/01/11 1 $9.90 $9.90 $ Thereafter Each year, the driver s wages will be increased by taking their current rate and following the scale across and down. For example, a driver who is being paid at the $9.90 rate in 2009 will be increased to the $10.40 rate on September 1, This 13

14 method will apply to all drivers moving through the steps, once a driver reaches the top step, they will receive an increase each year by following the scale straight across. For example, a driver who is being paid at the $13.90 rate in 2009 will receive the $14.20 rate on September 1, School Trip and Charter Rate - Drivers will receive route rate for all driving time during trips and charters. All non-driving time will be paid at non-driving rate. Charter Trips-Will be paid at Route Pay for the entire trip. Non-Driving Rate - $0.30 above the then current Oregon minimum wage Special Ed Bonus - Add $0.30 per hour Company scheduled Driver Safety Meeting will be paid at Route Pay Rate Meal per Diem: 4-8 hour trips... $ hour trips... $20.00 Overnight/12+ hour trips... $30.00 per day ARTICLE XXI UNION VEST 21.1 The Company will allow a choice of safety vest for any Union employee who chooses to wear a UFCW Local 555 vest. The Company will provide a First Student button to be work on the Union vests. ARTICLE XXII SUCCESSORSHIP 22.1 This Agreement will be binding on the parties successors and assigns, including, but not limited to, all purchasers of any of the Employer s stock, assets or business acquired through sale, lease or other transfer. ARTICLE XXIII EXPIRATION AND RENEWAL This Agreement shall be in effect from September 1, 2009 through September 1, 2012, except as hereinafter provided, and shall continue from year to year thereafter unless either part shall give written notice to the other at least ninety (90) days prior to the expiration date of September 1, 2012, or at least ninety (90) days prior to the nearest Sunday to any subsequent September 1, of any succeeding year of its desire to negotiate the terms of a successor Agreement. Signed day of, 2010 FOR THE EMPLOYER: FOR THE UNION: FIRST STUDENT INC. UFCW LOCAL

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