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February 7, 2007
David McCall United Steelworkers Director, District 1 777 Dearborn Park Lane - J Columbus, Ohio 43085
RE: Payroll Guidelines Dear Mr. McCall:
Due to complications associated with the implementation and coordination of multiple payroll systems and the Companys desire to consolidate payroll procedures, there have been some inconsistencies with regards to the interpretation of the overtime and premium pay provisions of the Basic Labor Agreement (BLA). I have developed a set of guidelines and definitions of our understanding of the BLA provisions below for your review; if you concur with the guidelines, I would request that you counter sign this letter and return a copy to me.
Normal Schedule
Sunday Premium
Paid on first eight (8) hour turn worked on Sunday. Any hours worked on Sunday in addition to the first eight (8) hours are considered paid at overtime and are not used for the purpose of calculating overtime.
Holidays Unworked holidays are paid at eight (8) times an Employees Regular Rate of Pay. Worked holidays are paid at 2.5 times an Employees Regular Rate of Pay for all hours worked. Holidays whether worked or not shall be counted as time worked for the purpose of calculating overtime.
Overtime (paid at 1.5)
For hours worked in excess of eight (8) hours in a workday. For hours worked in excess of forty (40) hours in a payroll week. For hours worked on a 6th or 7th workday in a payroll week. For hours worked on a 6th or 7th workday in a 2 week period in which 5 consecutive days were worked (days may not be worked in the same payroll week) except where it is worked pursuant to a Local Working Condition Agreement. Hours worked on a second reporting in same workday after employee has worked eight (8) hours.
Article Five, Section C 1. c. Paid for all Shifts on Original Schedule
If a shift is canceled after the schedule is posted on Friday at 2:00 PM, an employee shall be paid for the canceled shift. Such shift will be used for the purpose of calculating overtime. If multiple shifts are canceled and rescheduled due to unforeseen circumstances or for valid operating reasons after the schedule is posted on Friday at 2:00 PM, the employee shall be paid for one (1) canceled shift and the rescheduled shifts shall be paid in accordance with Article Five, Section C 1. d. (see below).
Article Five, Section C 1. d. - Shift added after Schedule is Posted
If the Employee is required to work, due to a shift/ shifts being added to the schedule, after the schedule is posted on Friday at 2:00 PM; the Employee shall be paid at 1.5 times their Regular Rate of Pay for all hours worked. The hours worked will not be used for the purpose of calculating overtime.
Alternative Work Schedule (AWS)
Definition of AWS - In order for a schedule to be considered an Alternative Work Schedule it must consist of ten (10) or twelve (12) hour shifts in accordance
2 with Article Five Section C. 6. If the schedule does not meet the criteria then it must follow the rules of a normal workday and workweek, and the overtime rules outlined in Article Five Section D will apply. If a pattern of scheduled (or required) deviation from the AWS is established without agreement of the area Grievance Committeeman, the provisions of Article Five, Section D will apply until the normal pattern is re-established.
Sunday Premium
Paid on first shift (ten (10) or twelve (12) hours) worked on Sunday. Any hours worked on Sunday in addition to the first shift (ten (10) or twelve (12) hours) are paid at overtime and are not used for the purpose of calculating overtime.
Holidays
Unworked holidays that are not part of the agreed to AWS schedule are paid at eight (8) times employees Regular Rate of Pay. Unworked holidays that are part of the agreed to AWS schedule are paid at the number of hours -(ten (10) or twelve (12) hours) times employees Regular Rate of Pay. Worked holidays are paid at 2.5 times employees Regular Rate of Pay for all hours worked. Holidays whether worked or not shall be counted as time worked for the purpose of calculating overtime.
Overtime (paid at 1.5)
For hours worked in excess of the agreed to (ten (10) or twelve (12) hours) AWS hours in a workday. * For hours worked after reaching forty (40) hours in a payroll week. All hours worked in excess of normal agreed to AWS hours in a payroll week, provided the employee has worked as scheduled.
Article Five, Section C 1. c. - Paid for all Shifts on Original Schedule
If a shift is canceled after the schedule is posted on Friday at 2:00 PM, an employee shall be paid for the canceled shift. Such shift will be used for the purpose of calculating overtime. If multiple shuts are canceled and rescheduled due to unforeseen circumstances or for valid operating reasons after the schedule is posted on Friday at 2:00 PM, the employee shall be paid for one (1)
3 canceled shift and the rescheduled shifts shall be paid in accordance with Article Five, Section C 1. d. (see below).
Article Five, Section C 1. d. - Shift added after Schedule is Posted
If the Employee is required to work, due to a shift/shifts being added to the schedule, after the schedule is posted on Friday at 2:00 PM; the Employee shall be paid at 1.5 times their Regular Rate of Pay for all hours worked. The hours worked will not be used for the purpose of calculating overtime.
Employee Convenience
A pay code has been added that allows an Employee to change his/her schedule under certain circumstances. This will allow the Company the ability to accommodate the Employee without incurring additional overtime costs. The use of the pay code must be agreed to by the Local Union at each location pursuant to a Local Working Condition Agreement.
Sincerely yours,
Thomas F. Wood Vice President Labor Relations Mittal Steel USA
Confirmed: _________________
David McCall, Director USW District 1
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