UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 2000
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________to_______________
Commission file number 0-16567
Sanderson Farms, Inc.
(Exact name of registrant as specified in its charter)
Mississippi 64-0615843
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
225 North Thirteenth Avenue Laurel, Mississippi 39440
(Address of principal executive offices) (Zip Code)
(601) 649-4030
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirement for the past 90 days.
Yes X No _____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes _____ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $1 Per Share Par Value-----13,787,455 shares outstanding as
of January 31, 2000.
<PAGE>
INDEX
SANDERSON FARMS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--January 31, 2000 and
October 31, 1999
Condensed consolidated statements of income (loss)--Three months
ended January 31, 2000 and 1999
Condensed consolidated statements of cash flows--Three months ended
January 31, 2000 and 1999
Notes to condensed consolidated financial statements--
January 31, 2000
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Item 3. Quantitative and Qualitative Disclosure of Market Risk
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
January 31, October 31,
2000 1999
------------------------------
(Unaudited) (Note 1)
(In thousands)
Assets
Current assets:
Cash and temporary cash investments $ 4,665 $ 7,052
Accounts receivable, net 36,680 36,577
Inventories - Note 2 48,541 47,634
Refundable income taxes 1,147 426
Other current assets 7,696 7,503
------- -------
Total current assets 98,729 99,192
Property, plant and equipment 359,507 356,276
Less accumulated depreciation (179,279) (173,204)
------- --------
180,228 183,072
Other assets 732 1,246
------- -------
Total assets $279,689 $283,510
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and
accrued expenses $ 30,592 $ 27,877
Current maturities of long-
term debt 4,048 4,043
------ ------
Total current liabilities 34,640 31,920
Long-term debt, less current
maturities 101,546 104,651
Claims payable 1,100 1,100
Deferred income taxes 14,995 14,995
Stockholders' equity
Preferred Stock:
Series A Junior Participating
Preferred Stock, $100 par value:
authorized 500,000 shares; none issued
Par value to be determined by the
Board of Directors: authorized
4,500,000 shares; none issued
Common Stock, $1 par value: authorized
100,000,000 shares; issued and
outstanding shares - 13,787,455 shares
and 13,932,455 at January 31, 2000 and
October 31, 1999, respectively 13,787 13,932
Paid-in capital 4,649 5,835
Retained earnings 108,972 111,077
------- -------
Total stockholders' equity 127,408 130,844
------- -------
Total liabilities and stockholders' equity $279,689 $283,510
======== ========
See notes to condensed consolidated financial statements.
<PAGE>
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
Three Months Ended
January 31,
2000 1999
-----------------
(In thousands,except per share data)
Net sales $137,008 $126,229
Cost and expenses:
Cost of sales 131,180 114,208
Selling, general and
administrative 6,173 4,999
------- -------
137,353 119,207
OPERATING INCOME(LOSS) (345) 7,022
Other income (expense):
Interest income 70 104
Interest expense (1,678) (1,592)
Other 58 (23)
------- -------
(1,550) (1,511)
INCOME (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (1,895) 5,511
Income tax expense (benefit) (713) 2,067
------- -------
NET INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (1,182) 3,444
Cumulative effect of accounting change (net
Of income taxes of $140,000) (234) 0
------- -------
NET INCOME (LOSS) $ (1,416) $ 3,444
======= =======
Earnings (loss) per share:
Basic and diluted earnings (loss) before
Cumulative effect of accounting change $ (.08) $ .24
Cumulative effect of accounting change (.02) 0
------- -------
Basic and diluted earnings (loss) $ (.10) $ .24
======= =======
Dividends per share $ .05 $ .05
======= =======
Basic weighted average shares outstanding 13,858 14,381
====== ======
Diluted weighted average shares outstanding 13,858 14,501
====== ======
See notes to condensed consolidated financial statements.
<PAGE>
SANDERSON FARMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
January 31,
2000 1999
---------------
(In thousands)
Operating activities
Net income(loss) $ (1,416) $ 3,444
Adjustments to reconcile net income to
net cash provided by operating
activities:
Cumulative effect of accounting change 234 0
Depreciation and amortization 6,518 6,125
Change in assets and liabilities:
Increase (decrease) in accounts receivable (103) 5,216
Increase in inventories (907) (2,069)
Increase in refundable income taxes (721) 0
(Increase) decrease in other assets 44 96
Increase (decrease) in accounts payable and
accrued expenses 2,715 (625)
-------- ------
Total adjustments 7,780 8,743
------- -------
Net cash provided by operating activities 6,364 12,187
Investing activities
Net proceeds from sales of property and equipment 1 171
Capital expenditures (3,632) (7,746)
------- -------
Net cash used in investing activities (3,631) (7,575)
Financing activities
Principal payments on long-term debt (100) (995)
Net change in revolving credit (3,000) (3,000)
Retirement of common stock (1,331) 0
Net proceeds from common stock issued 0 325
Dividends paid (689) (719)
------- ------
Net cash (used in) financing
activities (5,120) (4,389)
------- -----
Net increase (decrease) in cash and temporary
cash investments (2,387) 223
Cash and temporary cash investments
at beginning of period 7,052 3,626
------- ------
Cash and temporary cash investments
at end of period $ 4,665 $ 3,849
====== ======
See notes to condensed consolidated financial statements.
<PAGE>
SANDERSON FARMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
January 31, 2000
NOTE 1 -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements. In the opinion of management, all
adjustments consisting of normal recurring accruals considered necessary for a
fair presentation have been included. Operating results for the three-month
period ended January 31, 2000 are not necessarily indicative of the results that
may be expected for the year ending October 31, 2000. For further information,
reference is made to the consolidated financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended October
31, 1999.
The balance sheet at October 31, 1999 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
NOTE 2--INVENTORIES
Inventories consisted of the following:
January 31, October 31,
2000 1999
---------------------------
(In thousands)
Live poultry-broilers and breeders $29,322 $29,323
Feed, eggs and other 6,278 6,494
Processed poultry 4,079 3,037
Processed food 4,617 4,900
Packaging materials 4,245 3,880
------- -------
$48,541 $47,634
======= =======
NOTE 3--INCOME TAXES
Deferred income taxes relate principally to cash basis temporary differences and
depreciation expense which are accounted for differently for financial and
income tax purposes. Effective November 1, 1988, the Company changed from the
cash to the accrual basis of accounting for its farming subsidiary. The Taxpayer
Relief Act of 1997 (the "Act") provides that the taxes on the cash basis
temporary differences as of that date are payable over the next 20 years or in
full in the first fiscal year in which the Company fails to qualify as a "Family
Farming Corporation". The Company will continue to qualify as a "Family Farming
Corporation" provided there are no changes in ownership control, which
management does not anticipate during fiscal 2000.
NOTE 4B-START-UP COSTS
<PAGE>
In April 1998, the American Institute of Certified Public Accountants issued
Statement of Position 98-5, "Reporting the Costs of Start-Up Activities", which
requires that costs related to start-up activities be expensed as incurred.
Prior to October 31, 1999, the Company capitalized its start-up costs. The
Company adopted the provisions of the SOP in its financial statements in the
first quarter of fiscal 2000. The effect of adoption of SOP 98-5 was to record a
charge for the cumulative effect of an accounting change of $234,000 (net of
income taxes of $140,000) or $.02 per basic and diluted earnings per share.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
The following Discussion and Analysis should be read in conjunction with
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in Item 7 of the Company's Annual Report on Form 10-K for
its fiscal year ended October 31, 1999.
This Quarterly Report, and other periodic reports filed by the Company under the
Securities and Exchange Act of 1934, and other written or oral statements made
by it or on its behalf, may include forward-looking statements, which are based
on a number of assumptions about future events and are subject to various risks,
uncertainties and other factors that may cause actual results to differ
materially from the views, beliefs and estimates expressed in such statements.
These risks, uncertainties and other factors include, but are not limited to the
following:
(1) Changes in the market price for the Company's finished products and feed
grains, both of which may fluctuate substantially and exhibit cyclical
characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or
the amount of growth, stagnation or recession in the global or U.S. economies,
either of which may affect the value of inventories, the collectability of
accounts receivable or the financial integrity of customers.
(3) Changes in laws, regulations, and other activities in government agencies
and similar organizations applicable to the Company and the poultry industry.
(4) Various inventory risks due to changes in market conditions.
(5) Changes in and effects of competition, which is significant in all markets
in which the Company competes with regional and national firms, some of which
have greater financial and marketing resources than the Company.
(6) Changes in accounting policies and practices adopted voluntarily by the
Company or required to be adopted by generally accepted accounting principles.
Readers are cautioned not to place undue reliance on forward-looking statements
made by or on behalf of Sanderson Farms. Each such statement speaks only as of
the day it was made. The Company undertakes no obligation to update or to revise
any forward-looking statements. The factors described above cannot be controlled
by the Company. When used in this quarterly report, the words "believes,"
"estimates," "plans," "expects," "should," "outlook," and "anticipates" and
similar expressions as they relate to the Company or its management are intended
to identify forward-looking statements.
<PAGE>
The Company's poultry operations are integrated through its control of all
functions relative to the production of its chicken products, including hatching
egg production, hatching, feed manufacturing, raising chickens to marketable age
("grow out"), processing, and marketing. Consistent with the poultry industry,
the Company's profitability is substantially impacted by the market prices for
its finished product and feed grains, both of which may fluctuate substantially
and exhibit cyclical characteristics typically associated with commodity
markets. Other costs, excluding feed grains, related to the profitability of the
Company's poultry operations, including hatching egg production, hatching,
growing, and processing cost, are responsive to efficient cost containment
programs and management practices.
The Company believes that value-added products are subject to less price
volatility and generate higher, more consistent profit margins than whole
chickens ice packed and shipped in bulk form. To reduce its exposure to market
cyclicality that has historically characterized commodity chicken market prices,
the Company has increasingly concentrated on the production and marketing of
value-added product lines with emphasis on product quality, customer service and
brand recognition. Nevertheless, market prices continue to have a significant
influence on prices of the Company's chicken products. The Company adds value to
its poultry products by performing one or more processing steps beyond the stage
where the whole chicken is first saleable as a finished product, such as
cutting, deep chilling, packaging and labeling the product. The Company believes
that one of its major strengths is its ability to change its product mix to meet
customer demands.
The Company's processed and prepared foods product line includes over 200
institutional and consumer packaged food items that it sells nationally and
regionally, primarily to distributors, food service establishments and
retailers. A majority of the prepared food items are made to the specifications
of food service users.
RESULTS OF OPERATION
Net sales for the quarter ended January 31, 2000 were $137.0 million as compared
to $126.2 million for the quarter ended January 31, 1999. The increase in net
sales of $10.8 million or 8.5% resulted primarily from an increase in the pounds
of poultry products sold of 16.2% and a decrease in the average sales price of
poultry products of 6.2%. The additional pounds of poultry products resulted
from an increase in the average live weight of chickens processed as the Company
shifted certain of its chicken production from the fast food market to the chill
pack and big bird deboning markets, this was offset by a planned decrease in the
number of chickens processed of 2.2% during the first quarter of fiscal 2000 as
compared to the first quarter of fiscal 1999. The poultry industry experienced
lower average sale prices of poultry products during the quarter ended January
31, 2000 as compared the quarter ended January 31, 1999 due to an over supply of
chicken and other meats. A simple average of the Georgia dock whole bird prices
for the first quarter of fiscal 2000 reflected a decrease of 10.5% as compared
to the first quarter of fiscal 1999. Net sales of prepared food products sold
increased $.9 million or 5.4% during the three months ended January 31, 2000 as
compared to the three months ended January 31, 1999.
<PAGE>
Cost of sales for the three months ended January 31, 2000 as compared to the
three months ended January 31, 1999 increased $17.0 million or 14.9%. This
increase in the Company's cost of sales during the first quarter of fiscal 2000
as compared to the first quarter of fiscal 1999 resulted primarily from the
increase in the pounds of poultry products sold of 16.2% and an increase in the
processing cost of poultry products related to the Company's increased presence
in the chill pack market. These factors were somewhat offset by lower average
cost of feed grains. Corn and soybean meal cash market prices reflected a
decrease of 7.5% and an increase of 4.2%, respectively. Cost of sales of
prepared food products were approximately the same during the first quarter of
fiscal 2000 as compared to the first quarter of fiscal 1999.
Selling, general and administrative expenses for the first quarter of fiscal
2000 increased $1.2 million or 23.5%, as compared to the first quarter of fiscal
1999. As a percentage of net sales for the quarter ended January 31, 2000,
selling, general and administrative expenses were 4.5%, as compared to 4.0% for
the quarter ended January 31, 1999. This increase reflects the additional
advertising and marketing costs related to the Company's change from the fast
food market to the chill pack and big bird deboning markets.
The Company's operating loss for the three months ended January 31, 2000 was $.3
million, a decrease of $7.4 million as compared to the three months ended
January 31, 1999. During the first quarter of fiscal 2000 compared to first
quarter of fiscal 1999, the weakness in the poultry market more than offset the
advantage of the lower average cost of feed grains. The company expects the
current weakness in the poultry market to continue through the first half of our
fiscal year. However, the Company is encouraged by a number of indicators
pointing to declining red meat production and moderating poultry production this
calendar year. After declining the last two years, poultry exports are actually
expected to increase 3.0%, which is also encouraging news. On the cost side, we
believe the poultry industry will continue to benefit from relatively low grain
prices. Although we continue to buy our corn and soybean meal needs on the
market, we will take advantage of opportunities to lock in low costs and reduce
the risk of material increases for our most significant input costs.
Interest expense increased approximately $.1 million during the three months
ended January 31, 2000 as compared to the three months ended January 31, 1999.
The Company adopted the AICPA Statement of Position 98-5, "Reporting the Costs
of Start-up Activities" in the first quarter of fiscal 2000. The effect of
adopting SOP 98-5 was to record a charge for the cumulative effect of an
accounting change of $234,000 (net of income taxes of $140,000).
The effective tax rate for the three months ended January 31, 2000 was 37.6% as
compared to 37.5% for the three months ended January 31, 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company's working capital at January 31, 2000 was $64.1 million and its
current ratio was 2.9 to 1, as compared to working capital of $67.3 million and
a current ratio of 3.1 to 1 at October 31, 1999. During the first three months
of fiscal 2000 the Company spent approximately $3.6 million on planned capital
projects and $1.3 million to repurchase 145,000 shares of its common stock under
its existing repurchase plan.
The Company's capital budget for fiscal 2000 was increased to $16.4 million from
$15.8 million. The increase of $.6 million pertains to items not approved at the
beginning of fiscal 2000, pending justification, field trial and alternate
costing. Included in the fiscal 2000 budget are items that include cost of
renovations, changes and additions to existing processing facilities to allow
better product flows and product mix for more product flexibility.
<PAGE>
The Company believes that anticipated capital expenditures for fiscal 2000 will
be funded from working capital and by cash flows from operations; however, as of
January 31, 2000 the Company had $37.0 million available under its revolving
credit agreement, if needed.
Impact of Year 2000 Issues
The Company completed its preparations for the Year 2000 issue and experienced
no significant Year 2000 problems. The Company believes no continued exposure to
Year 2000 issues exists. The cost of modifications to existing software and
conversions to new software for the Year 2000 issues totaled approximately $.5
million and was substantially completed by January 31, 1999. In addition,
approximately $.4 million was capitalized because certain personal computers
were replaced in the normal course of business.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK
There have been no material changes in the market risks reported in the
Company's fiscal 1999 Annual Report on 10K.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed with this report
Exhibit 15a Independent Accountants' Review Report
Exhibit 15b Accountants' Letter re: Unaudited Financial
Information
(b) The Company did not file any reports on Form 8-K during the three
months ended January 31, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned there-unto duly authorized.
_____ SANDERSON FARMS, INC. _______
(Registrant)
Date: February 29, 2000 By: /s/D. Michael Cockrell
Treasurer and Chief
Financial Officer
Date: February 29, 2000 By: /s/James A. Grimes
Secretary and Principal
Accounting Officer
<PAGE>
EXHIBIT 15a
INDEPENDENT AUDITORS' REPORT ON REVIEW OF INTERIM
FINANCIAL INFORMATION
Shareholders and
Board of Directors
Sanderson Farms, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of
Sanderson Farms, Inc. and subsidiaries as of January 31, 2000, and the related
condensed consolidated statements of income (loss) and cash flows for the
three-month periods ended January 31, 2000 and 1999. These financial statements
are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with auditing standards generally accepted in the United States,
which will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements referred
to above for them to be in conformity with accounting principles generally
accepted in the United States.
We previously audited, in accordance with auditing standards generally accepted
in the United States, the consolidated balance sheet of Sanderson Farms, Inc.
and subsidiaries as of October 31, 1999, and the related consolidated statements
of income, stockholders= equity and cash flows for the year then ended (not
presented herein) and in our report dated December 8, 1999, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying condensed consolidated balance
sheet as of October 31, 1999, is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.
/s/ERNST & YOUNG LLP
Jackson, Mississippi
February 24, 2000
<PAGE>
EXHIBIT 15b
Shareholders and Board of Directors
Sanderson Farms, Inc.
We are aware of the incorporation by reference in Post-Effective Amendment
No. 1 to Registration Statement (Form S-8 No. 33-67474) of Sanderson Farms,
Inc. for the registration of 750,000 shares of its common stock of our report
dated February 24, 2000 relating to the unaudited condensed consolidated
interim financial statements of Sanderson Farms, Inc. that are included in
its Form 10-Q for the quarter ended January 31, 2000.
/s/ERNST & YOUNG LLP
Jackson, Mississippi
February 24, 2000
10
435906-1
435906-1
A G R E E M E N T
BETWEEN
SANDERSON FARMS, INC.
(BRAZOS PROCESSING DIVISION)
AND
UNITED FOOD AND COMMERCIAL WORKERS UNION, LOCAL 408, AFL-CIO
Chartered by the
UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION,
AFL-CIO, CLC
OCTOBER 7, 1999 - OCTOBER 6, 2002
TABLE OF CONTENTS
ARTICLE PAGE
1. AGREEMENT 4
2. RECOGNITION 4
3. MANAGEMENT PREROGATIVES 5
4. SHOP STEWARDS 6
5. UNION BULLETIN BOARD 7
6. NO STRIKE - NO LOCK OUT 7
7. GRIEVANCE PROCEDURE 7
STEP 1 7
STEP 2 8
STEP 3 8
8. ARBITRATION 9
9. SENIORITY 10
10. SENIORITY LIST 12
11. HOURS OF WORK 12
12. LEAVES OF ABSENCE 14
13. VACATIONS 15
14. HOLIDAYS 16
15. INSURANCE 17
16. EMPLOYEE STOCK OWNERSHIP PLAN 18
17. WAGES 18
18. MISCELLANEOUS 19
19 NO DISCRIMINATION 20
20. COMPLETE AGREEMENT AND SEPARABILITY 20
21. AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF 21
22. DURATION OF AGREEMENT 21
SIGNATURES 22
APPENDIX A - WAGE RATES
APPENDIX B - CHECK OFF AUTHORIZATION
ARTICLE 1
AGREEMENT
Section 1.1. This Agreement made and entered into this ______ day of
____________, 1999, by and between Sanderson Farms, Inc. (Brazos Processing
Division) at its Bryan, Texas processing plant (hereinafter referred to as
"Employer" or "Company"), and United Food and Commercial Workers Union, Local
408, AFL-CIO, chartered by the United Food and Commercial Workers
International Union, AFL-CIO, CLC (hereinafter referred to as the "Union".
WITNESSETH
Section 1.2. WHEREAS, the Company and the Union are desirous of entering
into a contractual relationship covering rates of pay, hours of work and
other terms and conditions of employment of employees employed within the
unit of representation as hereinafter described; and
Section 1.3. WHEREAS, the parties have conferred, negotiated and agreed
upon the terms and conditions of employment to be applicable to the employees
covered by this Agreement for the contract period as herein specified.
Section 1.4. NOW, THEREFORE, in consideration of the mutual covenants
and agreements herein contained, the parties do hereby agree as follows:
ARTICLE 2
RECOGNITION
Section 2.1. The Employer recognizes the Union as the certified
bargaining representative (NLRB Case No. 16-RC-10107) for all production and
maintenance employees employed at its Bryan, Texas Poultry Processing Plant,
excluding office clerical employees, guards, professional employees, and
supervisors, as defined in the Act.
Section 2.2. No employee shall be required to make any written or verbal
agreement that will conflict with this Agreement. No employee shall be
reclassified so as to defeat the purpose of this Agreement.
ARTICLE 3
A. MANAGEMENT RIGHTS
Section 3.1
There shall remain in the Company the exclusive and unilateral right of
management of the Company's plant and facilities and the assignment and
direction of the working forces, not limited to but including the following:
to determine the number, location and type of plants it may operate; to
decide the products to be manufactured, the methods of manufacture, the
materials to be used and the continuance or discontinuance of any product
mater or method of production; to introduce new equipment, machinery or
processes and to change or eliminate existing equipment, machinery or
processes; to discontinue, temporarily or permanently, in whole or in part,
conduct of its business or operations; and to relocate its business or
operations in whole or in part; to decide the nature of materials, supplies,
equipment or machinery to be used and the price to be paid; to decide upon
the sales methods and sales price of all products; to subcontract any work
performed by or for the Company; to hire the workforce in accordance with the
requirements set by management; to transfer, promote or demote employees
subject to the seniority provisions of this Agreement; to lay off employees
for economic reasons and to terminate, discharge, suspend or otherwise
relieve employee from duty for just cause; to direct and control the
workforce; to establish and enforce reasonable rules governing employment,
conduct, and working conditions; to determine the size of the workforce; to
determine the number of employee assigned to any particular operation; to
determine the workplace and to set reasonable work performance levels; to
establish, change, combine or abolish job classifications and to determine
the length of the work week; to utilize job rotation as deemed necessary by
the company; to determine work starting and stopping time, the length of the
work day, when overtime shall be worked, to require overtime; and to
determine the qualifications of employees. All other rights of Management
are also expressly retained even though not particularly enumerated above
unless they are clearly limited by the explicit language of some other
provisions of this Agreement.
It is understood that the word "unilateral right" as used herein mean
that the company shall have the unquestioned right to take such action
without prior notification or consultation with the Union, except that any
such action, once taken, may be questioned, to the extent provided in this
Article or as specifically provided elsewhere in this Agreement, through the
grievance and arbitration procedures.
Section 3.2.
If the sub-contracting of work usually performed by bargaining unit
employees or partial or complete plant relocation will have the foreseeable
effect of causing the layoff of any unit employee, the Company will give
notice to the Union and the parties will negotiate on the effects of the
layoff. It is further understood that none of the provisions of this Article
shall have the effect to reduce or waive any rights of unit employees under
the Worker Adjustment and Retraining Notification Act (WARN).
Section 3.3.
Failure of the Company to exercise rights herein reserved to it or
exercising them in a particular way shall not be deemed a waiver of said
rights of the Company's rights to exercise said rights in some other manner
not in conflict with the terms of this Agreement.
ARTICLE 4
SHOP STEWARDS
Section 4.1. The Employer recognizes the right of the Union to designate
shop stewards, not to exceed twenty (20) in number who shall be assigned to
serve specific areas of the plant to handle such Union business as may
arise. The shop stewards shall be employees of the Company. The Union shall
notify the Company in writing as to the names of the stewards and of any
changes in designation of stewards.
Section 4.2. A representative of the Union shall be permitted to enter
the plant at reasonable times, upon Employer's premises and plant, provided
such representative shall in no way interfere with the operations of
Employer's business and shall make arrangements with the Employer's
manager.
Section 4.3. Upon reasonable notice from the Union, the Employer shall
grant an unpaid leave of absence to stewards up to one week per year for
training purposes. The Union agrees that it will not seek such leave for more
than half of the stewards at any one time.
ARTICLE 5
UNION BULLETIN BOARD
Section 5.1. The Employer will provide a bulletin board in the plant for
posting of Union notices. All matters to be posted shall be submitted to the
Division Manager or a designated representative for approval prior to
posting, and management's decision shall be final.
ARTICLE 6
NO STRIKE - NO LOCK OUT
Section 6.1. For the duration of this Agreement, there shall be no
strike, stoppages, slowdowns, picketing, or other interruption of or
interference with the operations of the plant.
Section 6.2. The Company shall not lock out employees for the duration
of this Agreement.
Section 6.3. Neither the violation of any provisions of the Agreement,
nor the commission of any act constituting an unfair labor practice, or
otherwise made unlawful, shall excuse the employees, the Union, or the
Company from their obligations under the provisions of this Article.
Section 6.4. An employee discharged or otherwise disciplined for
violation of this Article, may seek review of such discipline through the
grievance and arbitration procedures provided herein. In this event, the
only question to be reviewed shall be whether or not the employee
participated in the prohibited conduct.
ARTICLE 7
GRIEVANCE PROCEDURE
Section 7.1. Grievances arising under this contract are herein defined
as a claim by a party to this Agreement or an employee covered by this
Agreement that the Company or the Union has violated a provision of this
Agreement.
STEP I
The employee shall discuss the grievance or complaint with the
immediate supervisor within five (5) working days after the event giving rise
thereto occurs, or within five (5) working days following the date on which
the grievant had or reasonably would have had knowledge thereof. In the
event the employee so requests, the appropriate steward shall be present at
this step. The supervisor shall give an answer within five (5) working days
after the grievance is received.
STEP 2
If there is no settlement in Step 1, the grievance may be presented by
the employee and/or shop steward within five (5) working days from the date
on which the supervisor's answer was given in Step 1. The grievance must be
presented in writing to the department superintendent and must state the
following information:
(a) name or names of employee or employees involved;
(b) the department or departments involved;
(c) the date and time of the occurrence or discovery of the grievance;
(d) the facts complained about
(e) the specific provision of this Agreement alleged to have been
violated;
(failure to designate the correct provision will not affect the
merits of the grievance);
(f) the remedy requested.
The superintendent shall give the Company's answer in writing within five (5)
working days after the grievance is received by the superintendent.
STEP 3
In the event the grievance is not settled in Step 2, then the grievance
may be appealed in writing to the division manager or a designated
representative by the Union to Step 3 within five (5) working days from the
Company's answer in Step 2. The division manager or a designated
representative shall give an answer in writing within five (5) working days
from the date of the appeal. In the event the grievance is not settled then
the aggrieved party or parties shall have the right to request arbitration.
In the event a grievance arises on behalf of the Employer, the matter
shall be presented to the Union Business Agent in writing, who shall have
seven (7) days from the date of submission within which to endeavor to
reconcile the grievance presented and shall give an answer in writing within
that time. If not settled within that time, the aggrieved party or parties
shall have the right to request arbitration.
Section 7.2. Discharge grievances shall be processed initially under
Step 3 of the grievance procedure. The written grievance shall be filed with
the division manager within five (5) working days following the date of
discharge.
Section 7.3. A failure to observe the time limit specified herein for
original presentation of a grievance or presentation in any subsequent step
of the grievance procedure on the part of either the grievant or the Union
shall be conclusive evidence that the grievance has been settled and
abandoned.
Failure on the part of the Company to comply with the time limits
for delivering its answer in any step of the grievance procedure shall
automatically advance the grievance to the next step of the grievance
procedure.
The time limits of the grievance procedure may be extended by
mutual consent of the Union and the Company.
ARTICLE 8
ARBITRATION
Section 8.1. If a party to this Agreement desires to take a grievance to
arbitration, it shall within fifteen (15) calendar days after the denial of
the grievance, give written notice of his intention to the other party,
together with a written statement of the specific provision or provisions of
this Agreement at issue.
Section 8.2. The parties shall attempt to select an impartial
arbitrator. If they are unable to agree upon a choice within seven (7)
calendar days after the receipt of Notice of Intent to Arbitrate, either
party may request the Federal Mediation and Conciliation Service to submit a
list of five (5) arbitrators, from which the arbitrator will be selected.
Selection shall be made by the parties alternately striking any name from the
list (the first to strike shall be the party requesting arbitration) until
only one (1) name remains. The final name remaining shall be the arbitrator
of the grievance.
Section 8.3. The jurisdiction and the decision of the arbitrator of the
grievance shall be confined to a determination of the acts and the
interpretation or application of the specific provision or provisions of this
Agreement at issue. The Arbitrator shall be bound by terms and provisions of
this Agreement and shall have the authority to consider only grievances
representing solely an arbitration issue under this Agreement. The
arbitrator shall have no authority to add to, alter, amend, or modify any
provision of this Agreement. The decision of the arbitrator in writing on
any issue properly before the arbitrator in accordance with the provisions of
this Agreement, shall be final and binding on the aggrieved employee or
employees, the Union, and the Employer.
Section 8.4. Multiple grievances shall not be heard before one
arbitrator at the same hearing except by mutual agreement of the parties.
Section 8.5. The Union and the Employer shall each bear its own costs in
these arbitration proceedings, except that they shall share equally the fee
and other expenses of the arbitrator in connection with the grievance.
Section 8.6. The Grievance Committee of the Union shall have the sole
authority to determine whether or not the employee's grievance is qualified
to be submitted to arbitration by the Union. The decision of the Grievance
Committee shall be made at its first meeting after the Company's Step 3
answer, and the Union will promptly inform the Company of its decision.
ARTICLE 9
SENIORITY
Section 9.1. Seniority is defined as the length of an employee's
continuous employment in the bargaining unit at the Company's Bryan, Texas,
poultry processing plant since the last permanent date of employment. For
purposes of layoff, recall, promotion, and vacation only, this shall include
continuous service which began prior to the acquisition of the plant by the
Company.
Section 9.2. All newly hired or rehired employees shall be considered as
probationary employees for a period of ninety (90) days during which period
they shall not acquire seniority, and during which they may be discharged
without recourse to the grievance and arbitration procedures provided
herein. If retained as a regular employee upon satisfactory completion of
the probationary period, seniority shall be retroactive to the first day of
employment.
Section 9.3 In matters of promotion, consideration will be given to an
employee's skill, ability, attendance, versatility, training, physical
fitness, and seniority; and when, in the opinion of the Company, the factors
other than seniority are relatively equal, seniority will be the deciding
factor. In layoffs and recalls, seniority will prevail, provided the
employees involved are relatively equal in ability and fitness to immediately
perform the available work.
Section 9.4. An employee's seniority shall be lost and employment
considered terminated by:
(a) discharge for just cause;
(b) failure to return from layoff within five (5) working days after
written notice by certified mail is sent by the Company to the
employee's last known address on the Company's books. Actual
notice to the employee of recall by any other means shall satisfy
the terms of this provision;
(c) voluntary termination of employment;
(d) failure to report after termination of a leave of absence
approved by the Company in writing on the first scheduled day
following the expiration of such leave of absence;
(e) engaging in a gainful occupation while on leave of absence;
(f) absence from work for three (3) consecutive working days without
notice to the Company, which shall be considered as a voluntary
quit, unless notice was prevented by a cause beyond the control
of the employee;
(g) separation from the Company's active payroll for any reason,
exclusive of leaves of absence approved by the Company, for a
period exceeding an employee's length of service in the Bryan
plant, or three (3) months, whichever is less.
Section 9.5. For the purposes of this Agreement, layoffs shall be
classified as (a) "short term" and (b) "long term". A short term layoff is a
layoff which will not exceed ten (10) workdays in length. Short term layoffs
may be made without regard to seniority. A long term layoff is a layoff
which will exceed ten (10) workdays in length. Long term layoffs shall be
made subject to Section 3 of this Article.
Section 9.6. All permanent job vacancies in premium rated
classifications shall be posted for two (2) consecutive working days on the
plant bulletin board. Employees in lower rated classifications desiring
promotion to such jobs shall sign a bid sheet posted on the bulletin board.
An employee who does not sign such bid sheet shall have no right to
consideration for the vacancy. However, the fact that an employee did not
sign the bid sheet will not preclude that employee's selection for the job by
the Company if none of the signers is determined to be qualified. If no
qualified employee bids on the posted position, the Company may fill the
position in its discretion. If, after a reasonable period not to exceed
thirty (30) days, the employee selected for the posted position achieves an
acceptable level of performance, the employee shall receive the rate of the
new position. If the employee fails to perform in an acceptable manner, such
employee shall return to a job in their former classification and the premium
job shall be posted again. An employee who self-disqualifies shall return to
the extra board at the line operator's rate of pay and shall not be eligible
for bidding on a premium job for a period of six (6) months.
Section 9.7. Assignments involving employees on the extra board shall be
in order of seniority. Within a department, no extra board employee shall be
retained over a permanently assigned employee.
ARTICLE 10
SENIORITY LIST
Section 10.1. Upon request at any reasonable time, the Company
shall furnish to the Union a current seniority list. The list shall be
alphabetical and shall include department, social security number, date of
hire, and rate of pay.
ARTICLE 11
HOURS OF WORK
Section 11.1. The regular work week shall consist of five (5) days
or forty (40) hours. This shall not be construed as a guarantee of any
amount of hours or work. The basic work week shall be the seven (7) day
period from 12:01 a.m. Sunday until midnight the following Saturday.
Employees will be given at least one (1) calendar week's notice of any change
by the Company of the payroll week.
Section 11.2. An employee who works more than forty (40) hours in
any one week shall be paid at time and one-half the regular rate of pay for
all hours in excess of forty (40).
Section 11.3. When employees are called to work a shift outside
their regularly scheduled shift and report for work, or when they report to
work at their regularly scheduled time, they shall be given the opportunity
to work a minimum of three (3) hours or receive pay for same at the
applicable hourly rate, except that no such pay shall be made when the plant
cannot operate for reasons beyond the control of the Employer, such as, but
not limited to, strikes, utility failure, fire, flood, storms or other acts
of God interfering with work, or a breakdown of machinery or equipment when
the Company notifies the employees not to report to work at least four (4)
hours prior to the scheduled time to work.
Section 11.4. Employees will be paid at their regular rate for all
waiting time of thirty (30) minutes or less, so long as they do any job they
are assigned. Employees will not be paid for waiting time which exceeds
thirty (30) minutes if (1) they are relieved of all duties, (2) are free to
leave the plant, and (3) are told the time they must return to work.
Employees will not be relieved without pay more than once in any workday
except for a lunch break of not more than one (1) hour.
Section 11.5. The Company will provide one (1) unpaid break of not
less than thirty (30) minutes for lunch during each shift, and shall provide
one (1) twelve (12) minute paid rest period prior to lunch each day. In
addition, all employees will be allowed one (1) twelve (12) minute paid rest
period after the lunch break provided the work time is expected to be not
less than two and one-half (2 1/2) hours. No unpaid break shall be provided
for maintenance employees.
The Company shall have the right to provide a twenty-four (24) minute
paid lunch break to Clean-Up Line Operators on restricted hours in lieu of
all breaks provided in this Section.
Section 11.6. A Clean-Up Line Operator who has completed the
probationary period and is permanently assigned to restricted hours in the
clean up department shall receive an hourly adjustment of ninety (90) cents
for each hour worked in that assignment.
Section 11.7. Employees who have completed the probationary period
and are temporarily assigned for one or more consecutive hours to perform the
duties of an absent employee in a higher paid classification shall receive
the rate of that classification while performing the duties of the
classification. Employees who work at more than one pay rate during a week
in which they earn overtime shall receive overtime pay based upon an average
of the rates earned during that week
Section 11.8. When daily overtime in excess of fifteen (15) minutes
is required for processing employees, they shall be notified by second break,
or as soon as the Company knows such overtime is required.
ARTICLE 12
LEAVES OF ABSENCE
Section 12.1. An employee who has completed the probationary period
may be granted, at the Company's discretion, a leave of absence without pay
for a reasonable period of time, not to exceed one (1) month, for the
following reasons:
(a) emergency personal business; and
(b) Union business, upon written request by the Union's Business
Manager, provided that no more than three (3) employees shall be
on such leave simultaneously..
Section 12.2. Employees who have completed their probationary
period are eligible for up to thirteen (13) weeks per year of unpaid family
and medical treatment leave for the following reasons:
(a) Employee's serious health condition -- a medical
certification will be required which states that the employee is
unable to perform the functions of the employee's position.
(b) Family serious health condition -- spouse, parent, or
child. A medical certification will be required stating the
employee is "needed to care for the individual."
(c) New child leave -- the birth, adoption or foster care
placement by a state agency of a child, and, the need to care for
the child; such leave may be prior to the actual birth or
placement.
The provisions of this Section shall be administered in accordance with
the Family and Medical Leave Act of 1993 (FMLA).
Section 12.3. Employees who have completed their probationary
period who lose actual work time in order to attend the funeral of a family
member shall receive a paid funeral leave for time necessarily lost during
the employee's regularly scheduled shift, provided the employee would have
been scheduled and at work during that day. Said leave shall be up to three
(3) days with pay for a deceased parent, spouse, child, brother, or sister
and one (1) day for a deceased father-in-law, mother-in-law, grandparent,
brother-in-law, or sister-in-law. In order to receive pay under this
Section, an employee must be actively working, must make application for such
paid leave, and must attend the funeral. The Company may require
satisfactory evidence of attendance at the funeral and the relationship of
the deceased.
Section 12.4. If the Company has knowledge that an employee, in a
premium-rated classification, will be on family and medical leave, military
leave, or an industrial injury leave for more than thirty (30) calendar days,
the job will be posted and filled on a temporary basis. The successful
bidder will receive the rate of the premium classification for the period its
duties are performed. When employees on leave under this Section return,
they shall be immediately assigned to their old job; employees temporarily
filling the job shall return to their regular classification and pay rate.
Section 12.5. The Company shall pay each active employee who
reports for jury duty the difference between pay up to eight times the hourly
rate for time actually lost and the juror's daily fee for each day the
employee is required to serve on a jury. The employee must report to work
during those days of his regularly scheduled shift during which the employee
is not required to report for jury duty or be available at court for jury
service. The employee must present proof of jury service and the amount of
compensation received from the court.
ARTICLE 13
VACATIONS
Section 13.1. Regular full-time employees shall be eligible for one
(1) week's vacation after the first anniversary date of continuous
employment, and after the anniversary date of each succeeding year.
Employees shall be eligible for a second week of vacation after the
second anniversary date of continuous employment, and after the anniversary
date of each succeeding year of continuous employment.
Employees shall be eligible for a third week of vacation after the
tenth anniversary date of continuous employment, and after the anniversary
date of each succeeding year of continuous employment.
Employees shall be eligible for a fourth week of vacation after the
twentieth anniversary date of continuous employment and after the anniversary
date of each succeeding year of continuous employment.
Section 13.2. To be eligible for a vacation, an employee must have
worked sixteen hundred (1,600) hours during the preceding twelve (12) months
or eighty (80) percent of available hours for that period, whichever is
less. Vacations and holidays not worked shall be considered time worked for
purposes of this Section.
Section 13.3. Vacation pay shall be computed at forty (40) times
the Employee's regular straight time hourly rate.
Section 13.4. Due consideration will be given employees' choice of
vacation time, but all vacations scheduled are subject to the final approval
of the Company in keeping with the Company's scheduling needs. In the event
that two or more employees cannot be released at the same time, the employee
with the longest service with the Company will be given preference. An
employee who notifies the Company of a vacation choice thirty (30) days in
advance shall not lose that vacation choice to another employee. Vacations
may not be scheduled for periods of less than a week, and all vacations must
be taken within an anniversary year.
Section 13.5. The Company reserves the right to schedule a plant
shutdown for one .(l) week in any year, which shall be treated as a vacation
week for those employees entitled to vacation.
ARTICLE 14
HOLIDAYS
Section 14.1. The following shall be considered holidays:
New Year's Day Labor Day
Martin Luther King's Birthday Thanksgiving Day
Memorial Day Christmas Day
July Fourth Birthday Holiday
The birthday holiday shall be taken on the employee's birthday. If the
birthday falls on a Saturday or Sunday, the holiday shall be taken on a day
agreed upon by the Company and the employee within one week of the birthday.
In the event any other holiday falls on a Saturday or Sunday, the
Company will announce whether it will be observed on the Friday preceding or
the Monday following the holiday. Such notice shall be given at least four
(4) days in advance.
Section 14.2. All regular full-time employees who have completed
their probationary period shall be paid for eight (8) hours at their regular
straight time rate for each holiday enumerated above, provided they report
for work and work all scheduled hours on the workday preceding and the
workday next following the holiday, unless the employee was necessarily
absent due to personal illness, supported by a doctor's certificate, or
because of an emergency occurring to the employee or the employee's immediate
family (meaning only spouse, children, or parents). No employee shall lose
holiday pay because of missing no more than thirty (30) minutes on the
workday before or the workday following the holiday.
In any event, an employee must work at least one (1) day during the
calendar week in which a holiday falls in order to be eligible for holiday
pay, except the employee who is on vacation.
Section 14.3. Employees required to work on a holiday shall be paid
the amount provided above, in addition to their regular earnings for that
day. Hours not worked on a holiday shall not be considered as work time in
computing any additional compensation due under the overtime provisions of
this contract.
Section 14.4. If an employee is required to work and fails to
report or fails to work scheduled hours on a holiday, the employee shall
forfeit holiday pay for that day.
Section 14.5. Employees on vacation during the week in which a
holiday falls shall receive holiday pay.
ARTICLE 15
INSURANCE
Section 15.1. The Company shall provide a group insurance program
for employees covered by this Agreement. The Company will continue to make
monthly contributions toward group insurance premiums in the same proportion
as is currently in effect. Employees will bear the remaining costs of the
insurance.
ARTICLE 16
EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT
Section 16.1. Employees covered by this Agreement will continue to
be covered by the Employee Stock Ownership Plan of Sanderson Farms, Inc. and
Affiliates. Participation and benefits in the plan shall be in accordance
with the provisions of that plan.
ARTICLE 17
WAGES
Section 17.1. Wages shall be paid as provided in Appendix A
attached hereto and made a part of this Agreement.
Section 17.2. Whenever a new job classification is created by the
Company, or there is a change or merger of job classifications or the job
content of job classifications, the Company will discuss the appropriate wage
rate with the Union. If a mutually satisfactory rate cannot be agreed upon,
the Company will set the rate. The Union may file a grievance on the rate,
and the dispute shall be settled in accordance with the grievance and
arbitration procedures of this contract.
Section 17.3. The rates of pay set forth in Appendix A of this
Agreement are minimum straight time hourly wage rates, and nothing contained
herein shall be construed as prohibiting or requiring the Company to grant
individual employees, for length of service, efficiency, productivity, or
other reasons, a wage increase which would result in such employee's regular
straight time hourly wage rate being in excess of the minimum wage rate
herein specified for the work operation he or she performs. The Company will
notify the Union of any change pursuant to this Section in advance.
Section 17.4. Any employees who, upon the effective date of this
Agreement, are receiving a wage in excess of the applicable rate set forth in
Appendix A, shall continue to receive their current rate until the contract
rate equals or exceeds that rate.
Section 17.5. In addition to the wage rates as provided in Appendix
A, production employees who have been continuously employed for five (5) or
more years shall receive seniority pay of twenty (20) cents per hour.
Maintenance employees who have been continuously employed for five (5) or
more years will receive seniority pay of fifty (50) cents per hour.
Section 17.6. Employees who have been continuously employed for one
(1) or more years shall receive a night shift differential of twenty-five
(25) cents per hour for work performed on a shift starting during the hours
beginning 12:00 noon through 1:00 a.m. The starting time of a shift
determines if it is subject to the shift differential. Employees performing
work on a night shift which is not their regular shift will receive shift
differential for such work if it lasts three (3) or more hours.
ARTICLE 18
MISCELLANEOUS
Section 18.1. The Company shall maintain safe, sanitary, and
healthy working conditions at all times, and employees will be required to
cooperate in maintaining such conditions. Any complaints regarding safety or
health shall be processed through the grievance and arbitration provisions of
this Agreement.
Section 18.2. There shall be a Safety Committee consisting of
members selected from the bargaining unit, one-half selected by the Union and
one-half selected by the Company. A management representative shall be
designated Chairman of the committee by the Division Manager. The Safety
Committee shall perform whatever functions are assigned, which shall include
periodic meetings; review of safety related suggestions from any source; and
recommending corrective actions to facilitate safety related changes in work
environment and work practices.
Section 18.3. The Company will provide any uniforms required of
employees who have completed their probationary period.
The Company will furnish required safety equipment, gloves, aprons,
hair nets, freezer gloves, cotton gloves, raincoats, and smocks at no cost to
the employee. Needed replacements, through normal use, will be made at no
cost provided the worn out article is returned to the Company. If an item is
lost or destroyed through employee negligence, the employee will be charged
for its replacement.
Section 18.4. The Employer may require any employee to take a
physical examination at any time at the Employer's expense.
Section 18.5. It shall be the responsibility of all employees to
keep the Employer apprised of their current address, telephone number,
marital status and number of dependents.
Section 18.6. It is the intent of the parties hereto that no
provisions of this Agreement shall require either party to perform any act
which shall be unlawful under any Texas or Federal statute
Section 18.7. Employees will be allowed reasonable relief from the
line to visit the restroom. Employees who abuse this privilege will be
subject to discipline up to and including discharge.
Section 18.8. Verified emergency messages will be relayed to the
employee as soon as possible after receipt of the message.
Section 18.9. This Agreement shall be in both English and Spanish.
If there is a discrepancy in translation regarding contract language or
interpretation, the English language contract shall prevail. The Company
shall pay the cost of translation which shall be done by a qualified
translator.
ARTICLE 19
NO DISCRIMINATION
Section 19.1. The Company and the Union agree that they will not
discriminate against any person with regard to employment or Union membership
because of race, creed, color, sex, religion, age, national origin, or
disability (as defined in the Americans With Disabilities Act).
Section 19.2. Whenever masculine gender is used in this Agreement,
it shall apply to the feminine gender.
ARTICLE 20
COMPLETE AGREEMENT AND SEPARABILITY
Section 20.1. Complete Agreement: The parties expressly declare that
they have bargained between themselves on all phases of hours, wages, rate of
pay, conditions of employment and working conditions, and that this contract
represents their full and complete agreement without reservations or
unexpressed understanding. Any aspect of hours, rates of pay, wages,
conditions of employment and working conditions not covered by a particular
provision of this agreement is declared to have been expressly eliminated as
a subject for bargaining and during the life of this Agreement may not be
raised for further bargaining in negotiations without written consent of all
parties hereto.
It is further understood and agreed that neither party hereto has been
induced to enter into this Agreement by any representations or promises made
by the other which are not expressly set forth herein, and that this document
correctly sets forth the effect of all preliminary negotiations,
understandings, and agreements, and supersedes any previous agreements,
whether written or verbal. This contract constitutes the entire Agreement
and understanding between the parties and shall not be modified, altered,
change, or amended in any respect except on mutual agreement set forth in
writing and signed by both parties.
Section 20.2. Separability: In the event any of the provisions of this
Agreement are held to be in conflict with or in violation of any state or
federal statute or another applicable law, administrative rule or regulation,
such decision shall not affect the validity of the remaining provisions of
the Agreement. The parties further agree that they will meet within thirty
(30) days to re-negotiate the provisions of the Agreement held to be invalid,
provided that Article 6 shall remain in full force and effect during all such
negotiations.
ARTICLE 21
AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF
Section 21.1. During the term of this Agreement, the Company will
deduct initiation fees, assessments, and Union dues from the wages of
employees who individually authorize the Company on a form in compliance with
Appendix B to this Agreement.
Section 21.2. The Union shall save the company harmless against and
from all claims, demands, suits or other forms of liability that arise out of
or by reason of action taken or not taken by the company in reliance upon or
compliance with any provisions of this Article.
Section 21.3. It is agreed that by reason of institution of the
above check-off system, collections by any other method on the Company's
premises are prohibited, except with the permission of the Company.
Section 21.4. Credit Union: Upon receipt of a signed authorization,
the Company shall deduct from employees' wages and turn over to the proper
official of the Credit Union deductions from the pay of such members of the
Credit Union as individually and voluntarily certify in writing that they
authorize such deductions. Employees and officers of UFCW Local 408 Credit
Union may, with five (5) working days notice to management, be allowed access
to break areas to sign up new credit union members and promote credit union
activity only four (4) times a year.
ARTICLE 22
DURATION OF AGREEMENT
Section 22.1. This Agreement shall remain in full force and effect
from the 7th day of October, 1999 until the 6th day of October, 2002, and
shall continue thereafter from year to year until either party to this
Agreement desires to terminate this Agreement by giving written notice at
least sixty (60) days prior to October 6, 2002, or at least sixty (60) days'
written notice prior to any anniversary date thereafter. The parties to this
Agreement shall endeavor to satisfactorily negotiate any contemplated change
or execute a new Agreement during the sixty (60) day period, after proper
notice in writing has been given as provided herein and above. Notice, as
specified in this Article, shall be mailed via United States Certified Mail.
IN WITNESS WHEREOF, the parties have hereunto signed their names this
_______ day of ______________________________, 1999.
SANDERSON FARMS, INC. UNITED FOOD AND COMMERCIAL
(Brazos Processing Division) WORKERS UNION, LOCAL 408
AFL-CIO
_____________________________________ ____________________________________
_____________________________________ ____________________________________
_____________________________________ ____________________________________
____________________________________
____________________________________
____________________________________
____________________________________
____________________________________
____________________________________
435906-1
APPENDIX "A"
WAGE SCHEDULE
EFFECTIVE
CURRENT 1/2/00 1/7/01 1/6/02
PROCESSING
RECEIVING
Lift Truck Operator .............. 8.00 8.25 8.45 8.80
Receiving Dock ................... 7.85 8.10 8.30 8.65
PICKING
Killer ........................... 8.10 8.35 8.55 8.90
Floorworker ...................... 7.75 8.00 8.20 8.55
Line Operator .................... 7.60 7.85 8.05 8.40
EVISCERATING
Floorworker ...................... 7.75 8.00 8.20 8.55
Bird Chiller Operator ............ 7.75 8.00 8.20 8.55
Line Operator .................... 7.60 7.85 8.05 8.40
DRIP LINE
Lift Truck Operator .............. 8.05 8.30 8.50 8.85
Scale Operator ................... 7.85 8.10 8.30 8.65
Floorworker ...................... 7.75 8.00 8.20 8.55
Giblet Chiller Operator .......... 7.75 8.00 8.20 8.55
Grader ........................... 7.70 7.95 8.15 8.50
Line Operator .................... 7.60 7.85 8.05 8.40
SPECIALTY
Scale Operator ................... 7.85 8.10 8.30 8.65
Floorworker ...................... 7.75 8.00 8.20 8.55
Line Operator .................... 7.60 7.85 8.05 8.40
Grader ........................... 7.70 7.95 8.15 8.50
Lift Truck Operator .............. 8.05 8.30 8.50 8.85
OVERWRAP
Line Operator .................... 7.60 7.85 8.05 8.40
PAWLINE
Chiller Operator ................. 7.75 8.00 8.20 8.55
Line Operator .................... 7.60 7.85 8.05 8.40
Floorworker ...................... 7.75 8.00 8.20 8.55
BOX WASH
Line Operator .................... 7.60 7.85 8.05 8.40
Lift Truck Operator .............. 8.05 8.30 8.50 8.85
MARINATION
Line Operator .................... 7.60 7.85 8.05 8.40
Formulation Mixer ................ 7.75 8.00 8.20 8.55
Floorworker ...................... 7.75 8.00 8.20 8.55
Scale Operator ................... 7.85 8.10 8.30 8.65
DEBONING
Line Operator .................... 7.60 7.85 8.05 8.40
Stack Off ........................ 7.70 7.95 8.15 8.50
Front Half Puller ................ 7.70 7.95 8.15 8.50
Floorworker ...................... 7.75 8.00 8.20 8.55
Scale Operator ................... 7.85 8.10 8.30 8.65
SAW CUT
Line Operator .................... 7.60 7.85 8.05 8.40
Floorworker ...................... 7.75 8.00 8.20 8.55
Scale Operator ................... 7.85 8.10 8.30 8.65
POLY BAG
Line Operator .................... 7.60 7.85 8.05 8.40
Grader ........................... 7.70 7.95 8.15 8.50
Floorworker ...................... 7.75 8.00 8.20 8.55
MDM
Line Operator .................... 7.60 7.85 8.05 8.40
Machine Operator ................. 7.70 7.95 8.15 8.50
Jack Operator .................... 7.70 7.95 8.15 8.50
Floorworker ...................... 7.75 8.00 8.20 8.55
Forklift Operator ................ 8.05 8.30 8.50 8.85
CHILLING
Lift Truck Operator .............. 8.05 8.30 8.50 8.85
Chilling Room Operator ........... 7.70 7.95 8.15 8.50
PREPRICE
Data Print Operator .............. 7.85 8.10 8.30 8.65
Line Operator .................... 7.60 7.85 8.05 8.40
SHIPPING
Lift Truck Operator .............. 8.05 8.30 8.50 8.85
Billing Clerk .................... 7.75 8.00 8.20 8.55
Loading Crew ..................... 7.70 7.95 8.15 8.50
QUALITY CONTROL
QC Operator ...................... 7.85 8.10 8.30 8.65
QC Lab Tech ...................... 7.85 8.10 8.30 8.65
PURCHASING .............................
Supply Clerk ..................... 8.05 8.30 8.50 8.85
Line Operator .................... 7.60 7.85 8.05 8.40
WASTEWATER
Waste Treatment Operator ......... 7.70 7.95 8.15 8.50
BY-PRODUCTS
By-Products Operator ............. 7.85 8.10 8.30 8.65
MAINTENANCE
Master Skilled Operator I ........ 12.40 12.65 12.85 13.20
Master Skilled Operator II ....... 10.90 11.15 11.35 11.70
Skilled Maintenance Men 10.00 .... 10.25 10.45 10.80
Mechanic ......................... 9.40 9.65 9.85 10.20
Mechanic Helper .................. 7.90 8.15 8.35 8.70
Clean-Up Floor Worker ............ 7.75 8.00 8.20 8.55
Clean-Up Line Operators 7.60 7.85 8.05 8.40
Probationary employees shall receive a training rate of $6.05 per hour for
the first ninety (90) days of their employment, which shall be $6.15
effective January 2, 2000, $6.25 effective January 7, 2001, and $6.35
effective January 6, 2002. Upon the expiration of the ninety (90) day
period, the rate shall be $6.75 per hour, which shall be $7.05 effective
January 2, 2000, $7.15 effective January 7, 2002 and $7.25 effective January
6, 2002. After one year of employment, an employee's rate shall be as shown
hereinabove. Newly hired employees in premium classifications above shall
receive the rate of that classification upon the expiration of a forty-five
(45) day period.
APPENDIX "B"
CHECK-OFF AUTHORIZATION
To: Any Employer under contract with United Food and Commercial Workers
Union, Local 408, AFL-CIO.
You are hereby authorized and directed to deduct from my wages,
commencing with the next payroll period, an amount equivalent to dues
and initiation fees as shall be certified by the President of Local
408, of the United Food and Commercial Workers International Union,
AFL-CIO, and remit same to said President.
This authorization and assignment is voluntary, made in consideration
for the cost of representation and collective bargaining and is not
contingent upon my present or future membership in the Union. This
authorization and assignment shall be irrevocable for a period of one
(1) year from the date of execution or until the termination date of
the Agreement between the Employer and Local 408, whichever occurs
sooner, and from year to year thereafter, unless not less than thirty
(30) days and not more than forty-five (45) days prior to the end of
any subsequent yearly period, I give the Employer and Union written
notice of revocation bearing my signature thereto. The President of
Local 480 is authorized to deposit this authorization with any Employer
under contract with Local 408and is further authorized to transfer this
authorization to any other Employer under contract with Local 408 in
the event that I should change employment.
432586-1
A G R E E M E N T
BETWEEN
SANDERSON FARMS, INC.
(TRUCK DRIVERS)
AND
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA,
PROFESSIONAL EMPLOYEES LOCAL UNION #693, AFL-CIO
, 1999 -, 2002
<PAGE>
TABLE OF CONTENTS
ARTICLE PAGE
<PAGE>
432586-1
432586-1
ARTICLE ______
MANAGEMENT RIGHTS
Section __.1.
There shall remain in the Company the exclusive and unilateral right of
management of the Company's plant and facilities and the assignment and
direction of the working forces, not limited to but including the following: to
determine the number, location and type of plants it may operate; to decide the
products to be manufactured, the methods of manufacture, the materials to be
used and the continuance or discontinuance of any product mater or method of
production; to introduce new equipment, machinery or processes and to change or
eliminate existing equipment, machinery or processes; to discontinue,
temporarily or permanently, in whole or in part, conduct of its business or
operations; and to relocate its business or operations in whole or in part; to
decide the nature of materials, supplies, equipment or machinery to be used and
the price to be paid; to decide upon the sales methods and sales price of all
products; to subcontract any work performed by or for the Company; to hire the
workforce in accordance with the requirements set by management; to transfer,
promote or demote employees subject to the seniority provisions of this
Agreement; to lay off employees for economic reasons and to terminate,
discharge, suspend or otherwise relieve employee from duty for just cause; to
direct and control the workforce; to establish and enforce reasonable rules
governing employment, conduct, and working conditions; to determine the size of
the workforce; to determine the number of employee assigned to any particular
operation; to determine the workplace and to set reasonable work performance
levels; to establish, change, combine or abolish job classifications and to
determine the length of the work week; to utilize job rotation as deemed
necessary by the company; to determine work starting and stopping time, the
length of the work day, when overtime shall be worked, to require overtime; and
to determine the qualifications of employees. All other rights of Management are
also expressly retained even though not particularly enumerated above unless
they are clearly limited by the explicit language of some other provisions of
this Agreement.
It is understood that the word "unilateral right" as used herein mean that
the company shall have the unquestioned right to take such action without prior
notification or consultation with the Union, except that any such action, once
taken, may be questioned, to the extent provided in this Article or as
specifically provided elsewhere in this Agreement, through the grievance and
arbitration procedures. Section ___.2.
If the sub-contracting of work usually performed by bargaining unit
employees or partial or complete plant relocation will have the foreseeable
effect of causing the layoff of any unit employee, the Company will give notice
to the Union and the parties will negotiate on the effects of the layoff. It is
further understood that none of the provisions of this Article shall have the
effect to reduce or waive any rights of unit employees under the Worker
Adjustment and Retraining Notification Act (WARN).
Section ___.3.
Failure of the Company to exercise rights herein reserved to it or
exercising them in a particular way shall not be deemed a waiver of said rights
of the Company's rights to exercise said rights in some other manner not in
conflict with the terms of this Agreement.
<PAGE>
ARTICLE _______
AGREEMENT
Section .1. This Agreement made and entered into this ______ day of
____________, 1999, by and between Sanderson Farms, Inc. (Brazos Processing
Division) at its Bryan, Texas processing plant (hereinafter referred to as
"Employer" or "Company"), and United Food and Commercial Workers Union, Local
408, AFL-CIO, chartered by the United Food and Commercial Workers International
Union, AFL-CIO, CLC (hereinafter referred to as the "Union".
WITNESSETH
Section .2. WHEREAS, the Company and the Union are desirous of entering into a
contractual relationship covering rates of pay, hours of work and other terms
and conditions of employment of employees employed within the unit of
representation as hereinafter described; and Section .3. WHEREAS, the parties
have conferred, negotiated and agreed upon the terms and conditions of
employment to be applicable to the employees covered by this Agreement for the
contract period as herein specified. Section .4. NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties do hereby agree as follows:
<PAGE>
ARTICLE ________
RECOGNITION
Section .1. The Employer recognizes the Union as the certified bargaining
representative (NLRB Case No. 16-RC-10107) for all production and maintenance
employees employed at its Bryan, Texas Poultry Processing Plant, excluding
office clerical employees, guards, professional employees, and supervisors, as
defined in the Act. Section .2. No employee shall be required to make any
written or verbal agreement that will conflict with this Agreement. No employee
shall be reclassified so as to defeat the purpose of this Agreement.
<PAGE>
ARTICLE ________
SHOP STEWARDS
Section .1. The Employer recognizes the right of the Union to designate shop
stewards, not to exceed ______ (__) in number, who shall be assigned to serve
specific areas of the plant to handle such Union business as may arise. The shop
stewards shall be employees of the Company. The Union shall notify the Company
in writing as to the names of the stewards and of any changes in designation of
stewards. Section .2. A representative of the Union shall be permitted to enter
the plant at reasonable times, upon Employer's premises and plant, provided such
representative shall in no way interfere with the operations of Employer's
business and shall make arrangements with the Employer's manager.
<PAGE>
ARTICLE _________
GRIEVANCE PROCEDURE
Section .1. Grievances arising under this contract are herein defined as a claim
by a party to this Agreement or an employee covered by this Agreement that the
Company or the Union has violated a provision of this Agreement.
STEP I
The employee shall discuss the grievance or complaint with the immediate
supervisor within five (5) working days after the event giving rise thereto
occurs, or within five (5) working days following the date on which the grievant
had or reasonably would have had knowledge thereof. In the event the employee so
requests, the appropriate steward shall be present at this step. The supervisor
shall give an answer within five (5) working days after the grievance is
received.
STEP 2
If there is no settlement in Step 1, the grievance may be presented by the
employee and/or shop steward within five (5) working days from the date on which
the supervisor's answer was given in Step 1. The grievance must be presented in
writing to the department superintendent and must state the following
information:
(a) name or names of employee or employees involved; (b) the department or
departments involved; (c) the date and time of the occurrence or discovery
of the grievance; (d) the facts complained about
(e) the specific provision of this Agreement alleged to have been
violated;
(failure to designate the correct provision will not affect the
merits of the grievance);
(f) the remedy requested.
The superintendent shall give the Company's answer in writing within five (5)
working days after the grievance is received by the superintendent.
STEP 3
In the event the grievance is not settled in Step 2, then the grievance
may be appealed in writing to the division manager or a designated
representative by the Union to Step 3 within five (5) working days from the
Company's answer in Step 2. The division manager or a designated representative
shall give an answer in writing within five (5) working days from the date of
the appeal. In the event the grievance is not settled then the aggrieved party
or parties shall have the right to request arbitration.
In the event a grievance arises on behalf of the Employer, the matter
shall be presented to the Union Business Agent in writing, who shall have seven
(7) days from the date of submission within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration. Section .2. Discharge grievances shall be processed
initially under Step 3 of the grievance procedure. The written grievance shall
be filed with the division manager within five (5) working days following the
date of discharge. Section .3. A failure to observe the time limit specified
herein for original presentation of a grievance or presentation in any
subsequent step of the grievance procedure on the part of either the grievant or
the Union shall be conclusive evidence that the grievance has been settled and
abandoned.
Failure on the part of the Company to comply with the time limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.
The time limits of the grievance procedure may be extended by mutual
consent of the Union and the Company.
<PAGE>
ARTICLE __________
ARBITRATION
Section .1. If a party to this Agreement desires to take a grievance to
arbitration, it shall within fifteen (15) calendar days after the denial of the
grievance, give written notice of his intention to the other party, together
with a written statement of the specific provision or provisions of this
Agreement at issue. Section .2. The parties shall attempt to select an impartial
arbitrator. If they are unable to agree upon a choice within seven (7) calendar
days after the receipt of Notice of Intent to Arbitrate, either party may
request the Federal Mediation and Conciliation Service to submit a list of five
(5) arbitrators, from which the arbitrator will be selected. Selection shall be
made by the parties alternately striking any name from the list (the first to
strike shall be the party requesting arbitration) until only one (1) name
remains. The final name remaining shall be the arbitrator of the grievance.
Section .3. The jurisdiction and the decision of the arbitrator of the grievance
shall be confined to a determination of the acts and the interpretation or
application of the specific provision or provisions of this Agreement at issue.
The Arbitrator shall be bound by terms and provisions of this Agreement and
shall have the authority to consider only grievances representing solely an
arbitration issue under this Agreement. The arbitrator shall have no authority
to add to, alter, amend, or modify any provision of this Agreement. The decision
of the arbitrator in writing on any issue properly before the arbitrator in
accordance with the provisions of this Agreement, shall be final and binding on
the aggrieved employee or employees, the Union, and the Employer. Section .4.
Multiple grievances shall not be heard before one arbitrator at the same hearing
except by mutual agreement of the parties. Section .5. The Union and the
Employer shall each bear its own costs in these arbitration proceedings, except
that they shall share equally the fee and other expenses of the arbitrator in
connection with the grievance. Section .6. The Grievance Committee of the Union
shall have the sole authority to determine whether or not the employee's
grievance is qualified to be submitted to arbitration by the Union. The decision
of the Grievance Committee shall be made at its first meeting after the
Company's Step 3 answer, and the Union will promptly inform the Company of its
decision.
ARTICLE __________
SENIORITY
Section .1. Seniority is defined as the length of an employee's continuous
employment in the bargaining unit at the Company's Bryan, Texas, poultry
processing plant since the last permanent date of employment. For purposes of
layoff, recall, promotion, and vacation only, this shall include continuous
service which began at another Sanderson plant prior to the effective date of
this contract. Section .2. All newly hired or rehired employees shall be
considered as probationary employees for a period of ninety (90) days during
which period they shall not acquire seniority, and during which they may be
discharged without recourse to the grievance and arbitration procedures provided
herein. If retained as a regular employee upon satisfactory completion of the
probationary period, seniority shall be retroactive to the first day of
employment Section .3. In matters of promotion , consideration will be given to
an employee's skill, ability, attendance, versatility, training, physical
fitness, and seniority; and when, in the opinion of the Company, the factors
other than seniority are relatively equal, seniority will be the deciding
factor. In layoffs and recalls, seniority will prevail, provided the employees
involved are relatively equal in ability and fitness to immediately perform the
available work.. .Section .4. An employee's seniority shall be lost and
employment considered terminated by:
(a) discharge for just cause;
(b) failure to return from layoff within five (5) working days after
written notice by certified mail is sent by the Company to the
employee's last known address on the Company's books. Actual notice
to the employee of recall by any other means shall satisfy the terms
of this provision;
(c) voluntary termination of employment;
(d) failure to report after termination of a leave of absence approved
by the Company in writing on the first scheduled day following the
expiration of such leave of absence;
(e) engaging in a gainful occupation while on leave of absence; (f)
absence from work for three (3) consecutive working days without
notice to the Company, which shall be considered as a voluntary
quit, unless notice was prevented by a cause beyond the control of
the employee;
(g) separation from the Company's active payroll for any reason,
exclusive of leaves of absence approved by the Company, for a period
exceeding an employee's length of service in the Bryan plant, or
three (3) months, whichever is less.
Section .5. For the purposes of this Agreement, layoffs shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10) workdays in length. Short term layoffs may be made without
regard to seniority. A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article. Section .6. All permanent job vacancies in premium rated
classifications shall be posted for two (2) consecutive working days on the
plant bulletin board. Employees in lower rated classifications desiring
promotion to such jobs shall sign a bid sheet posted on the bulletin board. An
employee who does not sign such bid sheet shall have no right to consideration
for the vacancy. However, the fact that an employee did not sign the bid sheet
will not preclude that employee's selection for the job by the Company if none
of the signers is determined to be qualified. If no qualified employee bids on
the posted position, the Company may fill the position in its discretion. If,
after a reasonable period not to exceed thirty (30) days, the employee selected
for the posted position achieves an acceptable level of performance, the
employee shall receive the rate of the new position. If the employee fails to
perform in an acceptable manner, such employee shall return to a job in their
former classification and the premium job shall be posted again. An employee who
self-disqualifies shall return to the extra board at the line operator's rate of
pay and shall not be eligible for bidding on a premium job for a period of six
(6) months. Section .7. Assignments involving employees on the extra board shall
be in order of seniority. Within a department, no extra board employee shall be
retained over a permanently assigned employee.
<PAGE>
ARTICLE ________
SENIORITY LIST
Section .1. Upon request at any reasonable time, the Company shall furnish to
the Union a current seniority list. The list shall be by department and shall
include social security number, date of hire, and rate of pay.
<PAGE>
ARTICLE ________
NO DISCRIMINATION
Section .1. The Company and the Union agree that they will not discriminate
against any person with regard to employment or Union membership because of
race, creed, color, sex, religion, age, national origin, or disability (as
defined in the Americans With Disabilities Act). Section .2. Whenever masculine
gender is used in this Agreement, it shall apply to the feminine gender.
<PAGE>
ARTICLE _______
DURATION OF AGREEMENT
Section .1. This Agreement shall remain in full force and effect from the ____
day of __________________, _____ until the _____ day of _____________, _____,
and shall continue thereafter from year to year until either party to this
Agreement desires to terminate this Agreement by giving written notice at least
sixty (60) days prior to __________________, _____, or at least sixty (60) days'
written notice prior to any anniversary date thereafter. The parties to this
Agreement shall endeavor to satisfactorily negotiate any contemplated change or
execute a new Agreement during the sixty (60) day period, after proper notice in
writing has been given as provided herein and above. Notice, as specified in
this Article, shall be mailed via United States Certified Mail.
430524-1
A G R E E M E N T
BETWEEN
SANDERSON FARMS, INC.
(HAZLEHURST PROCESSING DIVISION)
AND
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA,
PROFESSIONAL EMPLOYEES LOCAL UNION #693, AFL-CIO
JULY 26, 1999 - DECEMBER 31, 2002
<PAGE>
TABLE OF CONTENTS
ARTICLE PAGE
<PAGE>
1. AGREEMENT 1
2. RECOGNITION 1
3. MANAGEMENT PREROGATIVES 2
4. SHOP STEWARDS 2
5. UNION BULLETIN BOARD 3
6. NO STRIKE - NO LOCK OUT 3
7. GRIEVANCE PROCEDURE 3
STEP 1 4
STEP 2 4
STEP 3 4
8. ARBITRATION 5
9. SENIORITY 6
10. SENIORITY LIST 8
11. HOURS OF WORK 8
12. LEAVES OF ABSENCE 9
13. VACATIONS 11
14. HOLIDAYS 12
15. INSURANCE 13
16. WAGES 13
17. MISCELLANEOUS 14
18. EMPLOYEE STOCK OWNERSHIP PLAN 15
19. NO DISCRIMINATION 15
20. AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF 15
21. UNION SECURITY 16
22. DURATION OF AGREEMENT 16
SIGNATURES 17
APPENDIX A - WAGE RATES *
APPENDIX B - CHECK-OFF *
<PAGE>
ARTICLE 1
AGREEMENT
Section 1. This Agreement made and entered into this 26th day of July, 1999, by
and between Sanderson Farms, Inc. (Hazlehurst Processing Division) at its
Hazlehurst, Mississippi, location (hereinafter referred to as the "Company"),
and Laborers' International Union of North America, Professional Employees Local
Union #693, AFL-CIO (hereinafter referred to as the "Union".
WITNESSETH
Section 1.2. WHEREAS, the Company and the Union are desirous of entering into a
contractual relationship covering rates of pay, hours of work and other terms
and conditions of employment of employees employed within the unit of
representation as hereinafter described; and Section 1.3. WHEREAS, the parties
have conferred, negotiated and agreed upon the terms and conditions of
employment to be applicable to the employees covered by this Agreement for the
contract period as herein specified. Section 1.4. NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties do hereby agree as follows:
ARTICLE 2
RECOGNITION
Section 2.1. The Employer recognizes the Union as the sole exclusive bargaining
agency for all production and maintenance employees employed by its Hazlehurst,
Mississippi Poultry Processing Plan, excluding office clerical employees,
guards, professional employees, and supervisors, as defined in the Act,
certified on March 15, 1995, by the National Labor Relations Board through an
NLRB election, Case No. 15-RC-7876.
The following jobs are excluded from coverage:
(1) Office Clerical Employees (2) Cost Counting Records Clerks
(3) Processing Accounting Clerks (4) Sales Clerks
(5) Live Haul Drivers (6) Cage Repair Employees
(7) Professional Employees (8) Guards and Supervisors
(9) Quality Control Technicians (10) Maintenance Parts Buyers
Section 2.2. No employee shall be required to make any written or verbal
agreement that will conflict with this Agreement. No employee shall be
reclassified so as to defeat the purpose of this Agreement.
ARTICLE 3
MANAGEMENT PREROGATIVES
Section 3.1. Nothing in this Agreement shall be deemed to limit the Employer in
any way in the exercise of the customary functions of management which are
recognized as the Employer's exclusive responsibility, including, but not
limited to, the right to plan, direct, and control operations, to utilize the
services of contractors, to determine the number, size and location of its
establishments, to close an establishment or departments thereof, to hire, to
promote, to demote, and for proper cause to discipline, suspend or discharge, to
assign and schedule work and transfer employees from one job or department to
another, and to make and enforce reasonable rules and regulations relative to
any and all of these matters or to the management of its operation, provided
that the reasonableness of rules may be tested in the grievance procedure. The
Employer shall be the exclusive judge of all matters pertaining to its
operations and their scheduling and the methods, processes, equipment, means of
operation and size of workforce. Section 3.2. The Employer retains all
prerogatives and rights of management and all privileges and responsibilities
not specifically limited by this Agreement.
ARTICLE 4
SHOP STEWARDS
Section 4.1. The Employer recognizes the right of the Union to designate shop
stewards, not to exceed eight (8) in number, who shall be assigned to serve
specific areas of the plant to handle such Union business as may arise. The shop
stewards shall be employees of the Company. The Union shall notify the Company
in writing as to the names of the stewards and of any changes in designation of
stewards. Section 4.2. A representative of the Union shall be permitted to enter
the plant at reasonable times, upon Employer's premises and plant, provided such
representative shall in no way interfere with the operations of Employer's
business and shall make arrangements with the Employer's manager.
ARTICLE 5
UNION BULLETIN BOARD
Section 5.1. The Employer will provide a bulletin board in the plant for posting
of Union notices. All matters to be posted shall be submitted to the Division
Manager or a designated representative for approval prior to posting, and
management's decision shall be final.
ARTICLE 6
NO STRIKE - NO LOCK OUT
Section 6.1. For the duration of this Agreement, there shall be no strike,
stoppages, slowdowns, picketing, or other interruption of or interference with
the operations of the plant. Section 6.2. The Company shall not lock out
employees for the duration of this Agreement. Section 6.3. Neither the violation
of any provisions of the Agreement, nor the commission of any act constituting
an unfair labor practice, or otherwise made unlawful, shall excuse the
employees, the Union, or the Company from their obligations under the provisions
of this Article. Section 6.4. An employee discharged or otherwise disciplined
for violation of this Article, may seek review of such discipline through the
grievance and arbitration procedures provided herein. In this event, the only
question to be reviewed shall be whether or not the employee participated in the
prohibited conduct.
ARTICLE 7
GRIEVANCE PROCEDURE
Section 7.1. Grievances arising under this contract are herein defined as a
claim by a party to this Agreement or an employee covered by this Agreement that
the Company or the Union has violated a provision of this Agreement.
STEP I
The employee shall discuss the grievance or complaint with the immediate
supervisor within five (5) working days after the event giving rise thereto
occurs, or within five (5) working days following the date on which the grievant
had or reasonably would have had knowledge thereof. In the event the employee so
requests, the appropriate steward shall be present at this step. The supervisor
shall give an answer within five (5) working days after the grievance is
received.
STEP 2
If there is no settlement in Step 1, the grievance may be presented by the
employee and/or shop steward within five (5) working days from the date on which
the supervisor's answer was given in Step 1. The grievance must be presented in
writing to the department superintendent and must state the following
information:
(a) name or names of employee or employees involved; (b) the department or
departments involved; (c) the date and time of the occurrence or discovery
of the grievance; (d) the facts of the incident on which the claim is
based; (e) the specific provision of this Agreement alleged to have been
violated;
(f) the remedy requested.
The department superintendent shall give the Company's answer in writing within
five (5) working days after the grievance is received by the superintendent.
STEP 3
In the event the grievance is not settled in Step 2, then the grievance
may be appealed in writing to the division manager or a designated
representative by the Union to Step 3 within five (5) working days from the
Company's answer in Step 2. The division manager or a designated representative
shall give an answer in writing within five (5) working days from the date of
the appeal. In the event the grievance is not settled then the aggrieved party
or parties shall have the right to request arbitration.
In the event a grievance arises on behalf of the Employer, the matter
shall be presented to the Union Business Agent in writing, who shall have seven
(7) days from the date of submission within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration. Section 7.2. Discharge grievances shall be processed
initially under Step 3 of the grievance procedure. The written grievance shall
be filed with the division manager within five (5) working days following the
date of discharge.
Section 7.3. A failure to observe the time limit specified herein for original
presentation of a grievance or presentation in any subsequent step of the
grievance procedure on the part of either the grievant or the Union shall be
conclusive evidence that the grievance has been settled and abandoned.
Failure on the part of the Company to comply with the time limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.
The time limits of the grievance procedure may be extended by mutual
consent of the Union and the Company.
ARTICLE 8
ARBITRATION
Section 8.1. If a party to this Agreement desires to take a grievance to
arbitration, it shall within fifteen (15) calendar days after the denial of the
grievance, give written notice of his intention to the other party, together
with a written statement of the specific provision or provisions of this
Agreement at issue. Section 8.2. The parties shall attempt to select an
impartial arbitrator. If they are unable to agree upon a choice within seven (7)
calendar days after the receipt of Notice of Intent to Arbitrate, either party
may request the Federal Mediation and Conciliation Service to submit a list of
five (5) arbitrators, from which the arbitrator will be selected. Selection
shall be made by the parties alternately striking any name from the list (the
first to strike shall be the party requesting arbitration) until only one (1)
name remains. The final name remaining shall be the arbitrator of the grievance.
Section 8.3. The jurisdiction and the decision of the arbitrator of the
grievance shall be confined to a determination of the acts and the
interpretation or application of the specific provision or provisions of this
Agreement at issue. The Arbitrator shall be bound by terms and provisions of
this Agreement and shall have the authority to consider only grievances
representing solely an arbitration issue under this Agreement. The arbitrator
shall have no authority to add to, alter, amend, or modify any provision of this
Agreement. The decision of the arbitrator in writing on any issue properly
before the arbitrator in accordance with the provisions of this Agreement, shall
be final and binding on the aggrieved employee or employees, the Union, and the
Employer. Section 8.4. Multiple grievances shall not be heard before one
arbitrator at the same hearing except by mutual agreement of the parties.
Section 8.5. The Union and the Employer shall each bear its own costs in these
arbitration proceedings, except that they shall share equally the fee and other
expenses of the arbitrator in connection with the grievance.
ARTICLE 9
SENIORITY
Section 9.1. Seniority is defined as the length of an employee's continuous
employment in the bargaining unit at the Company's Hazlehurst, Mississippi,
poultry processing plant since the last permanent date of employment. For
purposes of layoff, recall, promotion, and vacation only, this shall include
continuous service which began prior to the acquisition of the plant by the
Company. Section 9.2. All newly hired or rehired employees shall be considered
as probationary employees for a period of ninety (90) days during which period
they shall not acquire seniority, and during which they may be discharged
without recourse to the grievance and arbitration procedures provided herein. If
retained as a regular employee upon satisfactory completion of the probationary
period, seniority shall be retroactive to the first day of employment. Section
9.3. In matters of layoff, recall, and promotion, consideration will be given to
an employee's skill, ability, attendance, versatility, training, physical
fitness, and seniority; and when, in the opinion of the Company, the factors
other than seniority are relatively equal, seniority will be the deciding
factor. Section 9.4. An employee's seniority shall be lost and employment
considered terminated by:
(a) discharge for just cause;
(b) failure to return from layoff within five (5) working days after
written notice by certified mail is sent by the Company to the
employee's last known address on the Company's books. Actual notice
to the employee of recall by any other means shall satisfy the terms
of this provision;
(c) voluntary termination of employment;
(d) failure to report after termination of a leave of absence approved
by the Company in writing on the first scheduled day following the
expiration of such leave of absence;
(e) engaging in a gainful occupation while on leave of absence;
(f) absence from work for three (3) consecutive working days without
notice to the Company, which shall be considered as a voluntary
quit, unless notice was prevented by a cause beyond the control of
the employee;
(g) separation from the Company's active payroll for any reason,
exclusive of leaves of absence approved by the Company, for a period
exceeding an employee's length of service in the Hazlehurst plant,
or three (3) months, whichever is less.
Section 9.5. For the purposes of this Agreement, layoffs shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10) workdays in length. Short term layoffs may be made without
regard to seniority. A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article. Section 9.6. All permanent job vacancies in premium rated
classifications shall be posted for two (2) consecutive working days on the
plant bulletin board. Employees in lower rated classifications desiring
promotion to such jobs shall sign a bid sheet posted on the bulletin board. An
employee who does not sign such bid sheet shall have no right to consideration
for the vacancy. However, the fact that an employee did not sign the bid sheet
will not preclude that employee's selection for the job by the Company if none
of the signers is determined to be qualified. If no qualified employee bids on
the posted position, the Company may fill the position in its discretion. If,
after a reasonable period not to exceed thirty (30) days, the employee selected
for the posted position achieves an acceptable level of performance, the
employee shall receive the rate of the new position. If the employee fails to
perform in an acceptable manner, such employee shall return to a job in their
former classification and the premium job shall be posted again. An employee who
self-disqualifies shall return to the extra board at the line operator's rate of
pay and shall not be eligible for bidding on a premium job for a period of six
(6) months. Section 9.7. Assignments involving employees on the extra board
shall be in order of seniority. Within a department, no extra board employee
shall be retained over a permanently assigned employee.
ARTICLE 10
SENIORITY LIST
Section 10.1. Upon request at any reasonable time, the Company shall furnish to
the Union a current seniority list.
ARTICLE 11
HOURS OF WORK
Section 11.1. The regular work week shall consist of five (5) days or forty (40)
hours. This shall not be construed as a guarantee of any amount of hours or
work. The basic work week shall be the seven (7) day period from 12:01 a.m.
Sunday until midnight the following Saturday. Employees will be given at least
one (1) calendar week's notice of any change by the Company of the payroll week.
Section 11.2. An employee who works more than forty (40) hours in any one week
shall be paid at time and one-half the regular rate of pay for all hours in
excess of forty (40). Section 11.3. When employees are called to work a shift
outside their regularly scheduled shift and report for work, or when they report
to work at their regularly scheduled time, they shall be given the opportunity
to work a minimum of three (3) hours or receive pay for same at the applicable
hourly rate, except that no such pay shall be made when the plant cannot operate
for reasons beyond the control of the Employer, such as, but not limited to,
strikes, utility failure, fire, flood, storms or other acts of God interfering
with work, or a breakdown of machinery or equipment when the Company notifies
the employees not to report to work at least four (4) hours prior to the
scheduled time to work. Section 11.4. Employees will be paid at their regular
rate for all waiting time of thirty (30) minutes or less, so long as they do any
job they are assigned. Employees will not be paid for waiting time which exceeds
thirty (30) minutes if (1) they are relieved of all duties, (2) are free to
leave the plant, and (3) are told the time they must return to work. Employees
will not be relieved without pay more than once in any workday except for a
lunch break of not more than one (1) hour. Section 11.5. The Company will
provide one (1) unpaid break of not less than thirty (30) minutes for lunch
during each shift, and shall provide one (1) twelve (12) minute paid rest period
prior to lunch each day. In addition, all employees will be allowed one (1)
twelve (12) minute paid rest period after the lunch break provided the work time
is expected to be not less than two and one-half (2 1/2) hours. No unpaid break
shall be provided for maintenance employees and truck drivers.
The Company shall have the right to provide a twenty-four (24) minute paid
lunch break to Clean-Up Line Operators on restricted hours in lieu of all breaks
provided in this Section. Section 11.6. A Clean-Up Line Operator who has
completed the probationary period and is permanently assigned to restricted
hours in the clean up department shall receive an hourly adjustment of ninety
(90) cents for each hour worked in that assignment. Section 11.7. Employees who
have completed the probationary period and are temporarily assigned for one or
more consecutive hours to perform the duties of an absent employee in a higher
paid classification shall receive the rate of that classification while
performing the duties of the classification. Employees who work at more than one
pay rate during a week in which they earn overtime shall receive overtime pay
based upon an average of the rates earned during that week.
ARTICLE 12
LEAVES OF ABSENCE
Section 12.1. An employee who has completed the probationary period may be
granted, at the Company's discretion, a leave of absence without pay for a
reasonable period of time, not to exceed one (1) month, for the following
reasons:
(a) emergency personal business;
(b) serious illness in the immediate family (spouse, children or
parents), supported by a doctor's certificate; and
(c) Union business, upon written request by the Union's Business
Manager, provided that no more than three (3) employees shall be on
such leave simultaneously.
Section 12.2. Employees who have completed their probationary period are
eligible for up to thirteen (13) weeks per year of unpaid family and medical
treatment leave for the following reasons:
(a) Employee's serious health condition -- a medical certification will
be required which states that the employee is unable to perform the
functions of the employee's position.
(b) Family serious health condition -- spouse, parent, or child. A
medical certification will be required stating the employee is
"needed to care for the individual."
(c) New child leave -- the birth, adoption or foster care placement by a
state agency of a child, and, the need to care for the child; such
leave may be prior to the actual birth or placement.
The provisions of this Section shall be administered in accordance with
the Family and Medical Leave Act of 1993 (FMLA). Section 12.3. Employees who
have completed their probationary period who lose actual work time in order to
attend the funeral of a family member shall receive a paid funeral leave for
time necessarily lost during the employee's regularly scheduled shift, provided
the employee would have been scheduled and at work during that day. Said leave
shall be up to three (3) days with pay for a deceased parent, spouse, child,
brother, or sister and one (1) day for a deceased father-in-law, mother-in-law,
grandparent, brother-in-law, or sister-in-law. In order to receive pay under
this Section, an employee must be actively working, must make application for
such paid leave, and must attend the funeral. The Company may require
satisfactory evidence of attendance at the funeral and the relationship of the
deceased. Section 12.4. If the Company has knowledge that an employee, in a
premium-rated classification, will be on family and medical leave, military
leave, or an industrial injury leave for more than thirty (30) calendar days,
the job will be posted and filled on a temporary basis. The successful bidder
will receive the rate of the premium classification for the period its duties
are performed. When employees on leave under this Section return, they shall be
immediately assigned to their old job; employees temporarily filling the job
shall return to their regular classification and pay rate. Section 12.5. The
Company shall pay each active employee who reports for jury duty the difference
between pay up to eight times the hourly rate for time actually lost and the
juror's daily fee for each day the employee is required to serve on a jury. The
employee must report to work during those days of his regularly scheduled shift
during which the employee is not required to report for jury duty or be
available at court for jury service. The employee must present proof of jury
service and the amount of compensation received from the court.
ARTICLE 13
VACATIONS
Section 13.1. Regular full-time employees shall be eligible for one (1) week's
vacation after the first anniversary date of continuous employment, and after
the anniversary date of each succeeding year.
Employees shall be eligible for a second week of vacation after the second
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a third week of vacation after the tenth
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a fourth week of vacation after the
twentieth anniversary date of continuous employment and after the anniversary
date of each succeeding year of continuous employment. Section 13.2. To be
eligible for a vacation, an employee must have worked sixteen hundred (1,600)
hours during the preceding twelve (12) months or eighty (80) percent of
available hours for that period, whichever is less. Vacations and holidays not
worked shall be considered time worked for purposes of this Section. Section
13.3. Vacation pay shall be computed at forty (40) times the Employee's regular
straight time hourly rate. Section 13.4. Due consideration will be given
employees' choice of vacation time, but all vacations scheduled are subject to
the final approval of the Company in keeping with the Company's scheduling
needs. In the event that two or more employees cannot be released at the same
time, the employee with the longest service with the Company will be given
preference. An employee who notifies the Company of a vacation choice thirty
(30) days in advance shall not lose that vacation choice to another employee.
Vacations may not be scheduled for periods of less than a week, and all
vacations must be taken within an anniversary year.
Section 13.5. The Company reserves the right to schedule a plant shutdown for
one .(l) week in any year, which shall be treated as a vacation week for those
employees entitled to vacation.
ARTICLE 14
HOLIDAYS
Section 14.1. The following shall be considered holidays:
New Year's Day Labor Day
Martin Luther King's Birthday Thanksgiving Day
Memorial Day Christmas Day
July Fourth Birthday Holiday
The birthday holiday shall be taken on the employee's birthday. If the
birthday falls on a Saturday or Sunday, the holiday shall be taken on a day
agreed upon by the Company and the employee within one week of the birthday.
Section 14.2. All regular full-time employees who have completed their
probationary period shall be paid for eight (8) hours at their regular straight
time rate for each holiday enumerated above, provided they report for work and
work all scheduled hours on the workday preceding and the workday next following
the holiday, unless the employee was necessarily absent due to personal illness,
supported by a doctor's certificate, or because of an emergency occurring to the
employee or the employee's immediate family (meaning only spouse, children, or
parents). No employee shall lose holiday pay because of missing no more than
thirty (30) minutes on the workday before or the workday following the holiday.
In any event, an employee must work at least one (1) day during the
calendar week in which a holiday falls in order to be eligible for holiday pay,
except the employee who is on vacation. Section 14.3. Employees required to work
on a holiday shall be paid the amount provided above, in addition to their
regular earnings for that day. Hours not worked on a holiday shall not be
considered as work time in computing any additional compensation due under the
overtime provisions of this contract. Section 14.4. If an employee is required
to work and fails to report or fails to work scheduled hours on a holiday, the
employee shall forfeit holiday pay for that day. Section 14.5. Employees on
vacation during the week in which a holiday falls shall receive holiday pay.
ARTICLE 15
INSURANCE
Section 15.1. The Company will provide a group insurance program for employees
covered by this Agreement. The Company will continue to make monthly
contributions toward group insurance premiums in the same proportion as is
currently in effect. Employees will bear the remaining costs of the insurance.
ARTICLE 16
WAGES
Section 16.1. Wages shall be paid as provided in Appendix A attached hereto and
made a part of this Agreement. Section 16.2. Whenever a new job classification
is created by the Company, or there is a change or merger of job classifications
or the job content of job classifications, the Company will discuss the
appropriate wage rate with the Union. If a mutually satisfactory rate cannot be
agreed upon, the Company will set the rate. The Union may file a grievance on
the rate, and the dispute shall be settled in accordance with the grievance and
arbitration procedures of this contract. Section 16.3. Any employees who, upon
the effective date of the wage rate set forth in Appendix A, are earning in
excess of the applicable rate, shall, during the term of this Agreement,
continue to receive their current rate until the contract rate equals or exceeds
that rate. This section shall not apply to any employee in a classification
which has been paid on a salary basis under any past contract. Section 16.4. If,
during the term of this Agreement, Congress enacts new minimum wage legislation
which requires the payment of a minimum wage greater than the rate provided in
Appendix A for newly-hired employees, the rate for newly-hired employees shall
be raised to the federal minimum rate, and the spread between the rates provided
in this Agreement shall be maintained. Any such change shall be effective upon
the effective date of the new federal minimum rate.
Section 16.5. In addition to the wage rates as provided in Appendix A,
production employees who have been continuously employed for five (5) or more
years shall receive seniority pay of twenty (20) cents per hour. Maintenance
employees and distribution drivers who have been continuously employed for five
(5) or more years will receive seniority pay of fifty (50) cents per hour.
Section 16.6. Employees who have been continuously employed for one (1) or more
years shall receive a night shift differential of twenty-five (25) cents per
hour for work performed on a shift starting during the hours beginning 12:00
noon through 1:00 a.m. The starting time of a shift determines if it is subject
to the shift differential. Employees performing work on a night shift which is
not their regular shift will receive shift differential for such work if it
lasts three (3) or more hours. Distribution drivers shall not receive shift
differential regardless of the time they begin work.
ARTICLE 17
MISCELLANEOUS
Section 17.1. The Company shall maintain safe, sanitary, and healthy working
conditions at all times, and employees will be required to cooperate in
maintaining such conditions. Any complaints regarding safety or health shall be
processed through the grievance and arbitration provisions of this Agreement.
Section 17.2. The Company will provide any uniforms required of employees who
have completed their probationary period.
The Company will furnish required safety equipment, gloves, aprons, hair
nets, freezer gloves, cotton gloves, and smocks at no cost to the employee.
Needed replacements, through normal use, will be made at no cost provided the
worn out article is returned to the Company. If an item is lost or destroyed
through employee negligence, the employee will be charged for its replacement.
Section 17.3. The Employer may require any employee to take a physical
examination at any time at the Employer's expense. Section 17.4. It shall be the
responsibility of all employees to keep the Employer apprised of their current
address, telephone number, marital status and number of dependents. Section
17.5. It is the intent of the parties hereto that no provisions of this
Agreement shall require either party to perform any act which shall be unlawful
under any Mississippi or Federal statute.
ARTICLE 18
EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT
Section 18.1. Employees covered by this Agreement will continue to be covered by
the Employee Stock Ownership Plan of Sanderson Farms, Inc. and Affiliates.
Participation and benefits in the plan shall be in accordance with the
provisions of that plan.
ARTICLE 19
NO DISCRIMINATION
Section 19.1. The Company and the Union agree that they will not discriminate
against any person with regard to employment or Union membership because of
race, creed, color, sex, religion, age, national origin, or disability (as
defined in the Americans With Disabilities Act). Section 19.2. Whenever
masculine gender is used in this Agreement, it shall apply to the feminine
gender.
ARTICLE 20
AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF
Section 20.1. During the term of this Agreement, the Company will deduct
initiation fees, assessments, and Union dues from the wages of employees who
individually authorize the Company on a form in compliance with Appendix B to
this Agreement. Section 20.2. The Union shall save the Company harmless against
and from all claims, demands, suits or other forms of liability that arise out
of or by reason of action taken or not taken by the Company in reliance upon or
compliance with any provisions of this Article. Section 20.3. It is agreed that
by reason of institution of the above check-off system, collections by any other
method on the Company's premises are prohibited, except with the permission of
the Company.
<PAGE>
ARTICLE 21
UNION SECURITY
Section 21.1. It shall be a condition of employment that all employees of the
Employer covered by this Agreement become members of the Union in good standing
not later than thirty-one (31) days after the effective date of this Agreement,
and remain members in good standing of the Union. It shall also be a condition
of employment that all employees covered by this Agreement and hired on or after
its effective date shall on the thirty-first (31st) day following the beginning
of such employment become and remain members in good standing in the Union.
The Union shall save the Company harmless against and from all claims,
demands, suits, or other forms of liability that arise out of or by reason of
action taken or not taken by the Company in reliance upon or compliance with any
provisions of this Article.
It is understood and agreed that the provisions of this Article shall be
effective only to the extent permitted by applicable law.
ARTICLE 22
DURATION OF AGREEMENT
Section 22.1. This Agreement shall remain in full force and effect from the 26th
day of July, 1999 until the 31st day of December, 2002, and shall continue
thereafter from year to year until either party to this Agreement desires to
terminate this Agreement by giving written notice at least sixty (60) days prior
to December 31, 2002, or at least sixty (60) days' written notice prior to any
anniversary date thereafter. The parties to this Agreement shall endeavor to
satisfactorily negotiate any contemplated change or execute a new Agreement
during the sixty (60) day period, after proper notice in writing has been given
as provided herein and above. Notice, as specified in this Article, shall be
mailed via United States Certified Mail.
<PAGE>
IN WITNESS WHEREOF, the parties have hereunto signed their names this
______ day of ___________________________, 1999.
SANDERSON FARMS, INC. LABORERS' INTERNATIONAL UNION
(Hazlehurst Processing Division) OF NORTH AMERICA, PROFESSIONAL
EMPLOYEES LOCAL UNION #693
AFL-CIO
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<PAGE>
APPENDIX "A"
WAGE SCHEDULE
EFFECTIVE
7/26/99 1/2/00 1/7/01 1/6/02
PROCESSING
Receiving
Forklift Operator .................. 8.00 8.25 8.45 8.80
Hanging Dock ....................... 7.85 8.10 8.30 8.65
Picking
Killer ............................. 8.10 8.35 8.55 8.90
Floorworker ........................ 7.75 8.00 8.20 8.55
Line Operator ...................... 7.60 7.85 8.05 8.40
Eviscerating
Floorworker ........................ 7.75 8.00 8.20 8.55
Bird Chiller Operator .............. 7.75 8.00 8.20 8.55
Line Operator ...................... 7.60 7.85 8.05 8.40
By-Products Department
By-Products Operator ............... 7.85 8.10 8.30 8.65
CUSTOMER SERVICE
Saws
Floorworker ........................ 7.75 8.00 8.20 8.55
Line Operator ...................... 7.60 7.85 8.05 8.40
Packing
Scale Operator ..................... 7.85 8.10 8.30 8.55
Floorworker ........................ 7.75 8.00 8.20 8.55
Giblet Chiller Operator 7.75 ....... 8.00 8.20 8.55
Grader ............................. 7.70 7.95 8.15 8.50
Line Operator ...................... 7.60 7.85 8.05 8.40
Specialty
Forklift Operator .................. 8.05 8.30 8.50 8.85
Scale Operator ..................... 7.85 8.10 8.30 8.65
Floorworker ........................ 7.75 8.00 8.20 8.55
Stackoff ........................... 7.70 7.95 8.15 8.50
Line Operator ...................... 7.60 7.85 8.05 8.40
Marination
Scale Operator ..................... 7.85 8.10 8.30 8.65
Formulating Mixer .................. 7.75 8.00 8.20 8.55
Floorworker ........................ 7.75 8.00 8.20 8.55
Stack Off .......................... 7.70 7.95 8.15 8.50
Line Operator ...................... 7.60 7.85 8.05 8.40
<PAGE>
EFFECTIVE
7/26/99 1/2/00 1/7/01 1/6/02
SHIPPING
Forklift Operator .................. 8.05 8.30 8.50 8.85
Cooler & Shipping Dock ............. 7.70 7.95 8.15 8.60
Distribution Driver ................ 10.15 10.40 10.60 10.95
DEBONE DEPARTMENT
Deboning
Forklift Operator .................. 8.00 8.25 8.45 8.80
Scale Operator ..................... 7.85 8.10 8.30 8.65
Floorworker ........................ 7.75 8.00 8.20 8.55
Front Half Puller .................. 7.70 7.95 8.15 8.50
Combo Packer ....................... 7.70 7.95 8.15 8.50
Stack Off .......................... 7.70 7.95 8.15 8.50
Line Operator ...................... 7.60 7.85 8.05 8.40
MAINTENANCE DEPARTMENT
Master Skilled Operator I .......... 12.40 12.65 12.85 13.20
Master Skilled Operator II ......... 10.90 11.15 11.35 11.70
Skilled Maintenance Men............. 10.00 10.25 10.45 10.80
Mechanic ........................... 9.40 9.65 9.85 10.20
Mechanic Helper .................... 7.90 8.15 8.35 8.70
Clean-Up Line Operators ............ 7.60 7.85 8.05 8.40
Probationary employees shall receive a training rate of $6.05 per hour for the
first ninety (90) days of their employment, which shall be $6.15 effective
January 2, 2000, $6.25 effective January 7, 2001, and $6.35 effective January 6,
2002. Upon the expiration of the ninety (90) day period, the rate shall be $6.75
per hour, which shall be $7.05 effective January 2, 2000, $7.15 effective
January 7, 2002 and $7.25 effective January 6, 2002. After one year of
employment, an employee's rate shall be as shown hereinabove. Newly hired
employees in premium classifications above shall receive the rate of that
classification upon the expiration of a forty-five (45) day period.
<PAGE>
APPENDIX "B"
CHECK-OFF AUTHORIZATION AND ASSIGNMENT
TO: ALL EMPLOYERS BY WHOM I AM EMPLOYED
I, _________________________________________________________, do hereby
assign to Local Union No. 693, LIUNA Professional Employees, AFL-CIO, such
amounts from my wages as shall be required to pay the initiation fees,
readmission fees, membership dues and assessments of the Local Union as
may be established from time to time. My Employer is hereby authorized to
deduct amounts from my wages and pay the same to the Local Union and/or
its authorized representative, in accordance with the collective
bargaining agreement in existence between the Local Union and my Employer.
This authorization shall become operative upon the effective date of each
collective bargaining agreement entered into between my Employer and the
Local Union.
This authorization shall be irrevocable for a period of one year, or until
the termination of the collective bargaining agreement in existence
between my Employer and the Local Union, whichever occurs sooner; and I
agree and direct that this authorization shall be automatically renewed
and shall be irrevocable for successive periods of one year each, or for
the period of such succeeding applicable collective bargaining agreement
between my Employer and the Local Union, whichever be shorter, unless I
give written notice to my Employer and the Local Union not more than
twenty days and not less than ten days prior to the expiration of each
period of one year, or of each applicable collective bargaining agreement
between my Employer and the Local Union, whichever occurs sooner.
Dues and fees paid to Local Union No. 693 are not deductible as charitable
contributions for federal income tax purposes. Dues and fees paid to Local
Union 693, however, may qualify as business expenses, and may be
deductible in limited circumstances subject to various restrictions
imposed by the Internal Revenue Service.
This assignment has been executed this _____ day of
______________________________, 19_______
450148-1
A G R E E M E N T
BETWEEN
SANDERSON FARMS, INC.
(COLLINS PROCESSING DIVISION)
AND
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA,
PROFESSIONAL EMPLOYEES LOCAL UNION #693, AFL-CIO
JANUARY 13, 2000 - DECEMBER 31, 2003
<PAGE>
TABLE OF CONTENTS
ARTICLE PAGE
<PAGE>
1. AGREEMENT 1
2. RECOGNITION 1
3. MANAGEMENT PREROGATIVES 1
4. SHOP STEWARDS 2
5. UNION BULLETIN BOARD 2
6. NO STRIKE - NO LOCK OUT 2
7. GRIEVANCE PROCEDURE 3
STEP 1 3
STEP 2 3
STEP 3 3
8. ARBITRATION 4
9. SENIORITY 5
10. SENIORITY LIST 6
11. HOURS OF WORK 7
12. LEAVES OF ABSENCE 8
13. VACATIONS 9
14. HOLIDAYS 10
15. INSURANCE 11
16. WAGES 11
17. MISCELLANEOUS 12
18. EMPLOYEE STOCK OWNERSHIP PLAN 13
19. NO DISCRIMINATION 13
20. AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF 13
21. UNION SECURITY 13
22. DURATION OF AGREEMENT 14
SIGNATURES 14
APPENDIX A - WAGE RATES *
APPENDIX B - CHECK-OFF *
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ARTICLE 1
AGREEMENT
Section 1. This Agreement made and entered into this 13th day of January, 2000,
by and between Sanderson Farms, Inc. (Collins Processing Division) at its
Collins, Mississippi, location (hereinafter referred to as the "Company"), and
Laborers' International Union of North America, Professional Employees Local
Union #693, AFL-CIO (hereinafter referred to as the "Union".
ARTICLE 2
RECOGNITION
Section 2.1. The Employer recognizes the Union as the sole exclusive bargaining
agency for all production and maintenance employees, including truck drivers and
rendering employees, employed at its Collins, Mississippi facility, excluding
office clerical employees, truck shop employees, guards, professional employees,
and supervisors, as defined in the Act, certified on February 23, 1995, by the
National Labor Relations Board through an NLRB election, Case No. 15-RC-7846.
The following jobs are excluded from coverage:
(1) Office Clerical Employees (2) Cost Counting Records Clerks
(3) Processing Accounting Clerks (4) Sales Clerks
(5) Live Haul Drivers (6) Cage Repair Employees
(7) Professional Employees (8) Guards and Supervisors
(9) Child Care Employees (10) Maintenance Parts Buyers
ARTICLE 3
MANAGEMENT PREROGATIVES
Section 3.1. Nothing in this Agreement shall be deemed to limit the Employer in
any way in the exercise of the customary functions of management which are
recognized as the Employer's exclusive responsibility, including, but not
limited to, the right to plan, direct, and control operations, to utilize the
services of contractors, to determine the number, size and location of its
establishments, to close an establishment or departments thereof, to hire, to
promote, to demote, and for proper cause to discipline, suspend or discharge, to
assign and schedule work and transfer employees from one job or department to
another, and to make and enforce reasonable rules and regulations relative to
any and all of these matters or to the management of its operation, provided
that the reasonableness of rules may be tested in the grievance procedure. The
Employer shall be the exclusive judge of all matters pertaining to its
operations and their scheduling and the methods, processes, equipment, means of
operation and size of workforce. Section 3.2. The Employer retains all
prerogatives and rights of management and all privileges and responsibilities
not specifically limited by this Agreement.
ARTICLE 4
SHOP STEWARDS
Section 4.1. The Employer recognizes the right of the Union to designate shop
stewards, not to exceed eleven (11) in number, who shall be assigned to serve
specific areas of the plant to handle such Union business as may arise. The shop
stewards shall be employees of the Company. The Union shall notify the Company
in writing as to the names of the stewards and of any changes in designation of
stewards. Section 4.2. A representative of the Union shall be permitted to enter
the plant at reasonable times, upon Employer's premises and plant, provided such
representative shall in no way interfere with the operations of Employer's
business and shall make arrangements with the Employer's manager.
ARTICLE 5
UNION BULLETIN BOARD
Section 5.1. The Employer will provide a bulletin board in the plant for posting
of Union notices. All matters to be posted shall be submitted to the Division
Manager or a designated representative for approval prior to posting, and
management's decision shall be final.
ARTICLE 6
NO STRIKE - NO LOCK OUT
Section 6.1. For the duration of this Agreement, there shall be no strike,
stoppages, slowdowns, picketing, or other interruption of or interference with
the operations of the plant. Section 6.2. The Company shall not lock out
employees for the duration of this Agreement. Section 6.3. Neither the violation
of any provisions of the Agreement, nor the commission of any act constituting
an unfair labor practice, or otherwise made unlawful, shall excuse the
employees, the Union, or the Company from their obligations under the provisions
of this Article. Section 6.4. An employee discharged or otherwise disciplined
for violation of this Article, may seek review of such discipline through the
grievance and arbitration procedures provided herein. In this event, the only
question to be reviewed shall be whether or not the employee participated in the
prohibited conduct.
<PAGE>
ARTICLE 7
GRIEVANCE PROCEDURE
Section 7.1. Grievances arising under this contract are herein defined as a
claim by a party to this Agreement or an employee covered by this Agreement that
the Company or the Union has violated a provision of this Agreement.
STEP I
The employee shall discuss the grievance or complaint with the immediate
supervisor within five (5) working days after the event giving rise thereto
occurs, or within five (5) working days following the date on which the grievant
had or reasonably would have had knowledge thereof. In the event the employee so
requests, the appropriate steward shall be present at this step. The supervisor
shall give an answer within five (5) working days after the grievance is
received.
STEP 2
If there is no settlement in Step 1, the grievance may be presented by the
employee and/or shop steward within five (5) working days from the date on which
the supervisor's answer was given in Step 1. The grievance must be presented in
writing to the department superintendent and must state the following
information:
(a) name or names of employee or employees involved; (b) the department or
departments involved; (c) the date and time of the occurrence or discovery
of the grievance; (d) the facts of the incident on which the claim is
based; (e) the specific provision of this Agreement alleged to have been
violated;
(f) the remedy requested.
The department superintendent shall give the Company's answer in writing within
five (5) working days after the grievance is received by the superintendent.
STEP 3
In the event the grievance is not settled in Step 2, then the grievance
may be appealed in writing to the division manager or a designated
representative by the Union to Step 3 within five (5) working days from the
Company's answer in Step 2. The division manager or a designated representative
shall give an answer in writing within five (5) working days from the date of
the appeal. In the event the grievance is not settled then the aggrieved party
or parties shall have the right to request arbitration.
In the event a grievance arises on behalf of the Employer, the matter
shall be presented to the Union Business Agent in writing, who shall have seven
(7) days from the date of submission within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration. Section 7.2. Discharge grievances shall be processed
initially under Step 3 of the grievance procedure. The written grievance shall
be filed with the division manager within five (5) working days following the
date of discharge. Section 7.3. A failure to observe the time limit specified
herein for original presentation of a grievance or presentation in any
subsequent step of the grievance procedure on the part of either the grievant or
the Union shall be conclusive evidence that the grievance has been settled and
abandoned.
Failure on the part of the Company to comply with the time limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.
The time limits of the grievance procedure may be extended by mutual
consent of the Union and the Company.
ARTICLE 8
ARBITRATION
Section 8.1. If a party to this Agreement desires to take a grievance to
arbitration, it shall within fifteen (15) calendar days after the denial of the
grievance, give written notice of his intention to the other party, together
with a written statement of the specific provision or provisions of this
Agreement at issue. Section 8.2. The parties shall attempt to select an
impartial arbitrator. If they are unable to agree upon a choice within seven (7)
calendar days after the receipt of Notice of Intent to Arbitrate, either party
may request the Federal Mediation and Conciliation Service to submit a list of
five (5) arbitrators, from which the arbitrator will be selected. Selection
shall be made by the parties alternately striking any name from the list (the
first to strike shall be the party requesting arbitration) until only one (1)
name remains. The final name remaining shall be the arbitrator of the grievance.
Section 8.3. The jurisdiction and the decision of the arbitrator of the
grievance shall be confined to a determination of the acts and the
interpretation or application of the specific provision or provisions of this
Agreement at issue. The Arbitrator shall be bound by terms and provisions of
this Agreement and shall have the authority to consider only grievances
representing solely an arbitration issue under this Agreement. The arbitrator
shall have no authority to add to, alter, amend, or modify any provision of this
Agreement. The decision of the arbitrator in writing on any issue properly
before the arbitrator in accordance with the provisions of this Agreement, shall
be final and binding on the aggrieved employee or employees, the Union, and the
Employer. Section 8.4. Multiple grievances shall not be heard before one
arbitrator at the same hearing except by mutual agreement of the parties.
Section 8.5. The Union and the Employer shall each bear its own costs in these
arbitration proceedings, except that they shall share equally the fee and other
expenses of the arbitrator in connection with the grievance.
ARTICLE 9
SENIORITY
Section 9.1. Seniority is defined as the length of an employee's continuous
employment in the bargaining unit at the Company's Collins, Mississippi, poultry
processing plant since the last permanent date of employment. For purposes of
layoff, recall, promotion, and vacation only, this shall include continuous
service which began prior to the acquisition of the plant by the Company.
Section 9.2. All newly hired or rehired employees shall be considered as
probationary employees for a period of ninety (90) days during which period they
shall not acquire seniority, and during which they may be discharged without
recourse to the grievance and arbitration procedures provided herein. If
retained as a regular employee upon satisfactory completion of the probationary
period, seniority shall be retroactive to the first day of employment. Section
9.3. In matters of layoff, recall, and promotion, consideration will be given to
an employee's skill, ability, attendance, versatility, training, physical
fitness, and seniority; and when, in the opinion of the Company, the factors
other than seniority are relatively equal, seniority will be the deciding
factor. Section 9.4. An employee's seniority shall be lost and employment
considered terminated by:
(a) discharge for just cause;
(b) failure to return from layoff within five (5) working days after
written notice by certified mail is sent by the Company to the
employee's last known address on the Company's books. Actual notice
to the employee of recall by any other means shall satisfy the terms
of this provision;
(c) voluntary termination of employment;
(d) failure to report after termination of a leave of absence approved
by the Company in writing on the first scheduled day following the
expiration of such leave of absence;
(e) engaging in a gainful occupation while on leave of absence;
(f) absence from work for three (3) consecutive working days without
notice to the Company, which shall be considered as a voluntary
quit, unless notice was prevented by a cause beyond the control of
the employee;
(g) separation from the Company's active payroll for any reason,
exclusive of leaves of absence approved by the Company, for a period
exceeding an employee's length of service in the Collins plant, or
three (3) months, whichever is less.
Section 9.5. For the purposes of this Agreement, layoffs shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10) workdays in length. Short term layoffs may be made without
regard to seniority. A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article. Section 9.6. All permanent job vacancies in premium rated
classifications shall be posted for two (2) consecutive working days on the
plant bulletin board. Employees in lower rated classifications desiring
promotion to such jobs shall sign a bid sheet posted on the bulletin board. An
employee who does not sign such bid sheet shall have no right to consideration
for the vacancy. However, the fact that an employee did not sign the bid sheet
will not preclude that employee's selection for the job by the Company if none
of the signers is determined to be qualified. If no qualified employee bids on
the posted position, the Company may fill the position in its discretion. If,
after a reasonable period not to exceed thirty (30) days, the employee selected
for the posted position achieves an acceptable level of performance, the
employee shall receive the rate of the new position. If the employee fails to
perform in an acceptable manner, such employee shall return to a job in their
former classification and the premium job shall be posted again. An employee who
self-disqualifies shall return to the extra board at the line operator's rate of
pay and shall not be eligible for bidding on a premium job for a period of six
(6) months. Section 9.7. Assignments involving employees on the extra board
shall be in order of seniority. Within a department, no extra board employee
shall be retained over a permanently assigned employee.
ARTICLE 10
SENIORITY LIST
Section 10.1. Upon request at any reasonable time, the Company shall furnish to
the Union a current seniority list.
ARTICLE 11
HOURS OF WORK
Section 11.1. The regular work week shall consist of five (5) days or forty (40)
hours. This shall not be construed as a guarantee of any amount of hours or
work. The basic work week shall be the seven (7) day period from 12:01 a.m.
Sunday until midnight the following Saturday. Employees will be given at least
one (1) calendar week's notice of any change by the Company of the payroll week.
Section 11.2. An employee who works more than forty (40) hours in any one week
shall be paid at time and one-half the regular rate of pay for all hours in
excess of forty (40). Section 11.3. When employees are called to work a shift
outside their regularly scheduled shift and report for work, or when they report
to work at their regularly scheduled time, they shall be given the opportunity
to work a minimum of three (3) hours or receive pay for same at the applicable
hourly rate, except that no such pay shall be made when the plant cannot operate
for reasons beyond the control of the Employer, such as, but not limited to,
strikes, utility failure, fire, flood, storms or other acts of God interfering
with work, or a breakdown of machinery or equipment when the Company notifies
the employees not to report to work at least four (4) hours prior to the
scheduled time to work. Section 11.4. Employees will be paid at their regular
rate for all waiting time of thirty (30) minutes or less, so long as they do any
job they are assigned. Employees will not be paid for waiting time which exceeds
thirty (30) minutes if (1) they are relieved of all duties, (2) are free to
leave the plant, and (3) are told the time they must return to work. Employees
will not be relieved without pay more than once in any workday except for a
lunch break of not more than one (1) hour. Section 11.5. The Company will
provide one (1) unpaid break of not less than thirty (30) minutes for lunch
during each shift, and shall provide one (1) twelve (12) minute paid rest period
prior to lunch each day. In addition, all employees will be allowed one (1)
twelve (12) minute paid rest period after the lunch break provided the work time
is expected to be not less than two and one-half (2 1/2) hours. No unpaid break
shall be provided for maintenance employees and truck drivers.
The Company shall have the right to provide a twenty-four (24) minute paid
lunch break to Clean-Up Line Operators on restricted hours in lieu of all breaks
provided in this Section. Section 11.6. A Clean-Up Line Operator who has
completed the probationary period and is permanently assigned to restricted
hours in the clean up department shall receive an hourly adjustment of ninety
(90) cents for each hour worked in that assignment. Section 11.7. Employees who
have completed the probationary period and are temporarily assigned for one or
more consecutive hours to perform the duties of an absent employee in a higher
paid classification shall receive the rate of that classification while
performing the duties of the classification. Employees who work at more than one
pay rate during a week in which they earn overtime shall receive overtime pay
based upon an average of the rates earned during that week.
ARTICLE 12
LEAVES OF ABSENCE
Section 12.1. An employee who has completed the probationary period may be
granted, at the Company's discretion, a leave of absence without pay for a
reasonable period of time, not to exceed one (1) month, for the following
reasons:
(a) emergency personal business;
(b) serious illness in the immediate family (spouse,
children or parents), supported by a doctor's certificate; and
(c) Union business, upon written request by the Union's
Business Manager, provided that no more than three (3) employees
shall be on such leave simultaneously.
Section 12.2. Employees who have completed their probationary period are
eligible for up to thirteen (13) weeks per year of unpaid family and medical
treatment leave for the following reasons:
(a) Employee's serious health condition -- a medical certification will be
required which states that the employee is unable to perform the functions of
the employee's position.
(b) Family serious health condition -- spouse, parent, or child. A medical
certification will be required stating the employee is "needed to care for the
individual."
(c) New child leave -- the birth, adoption or foster care placement by a
state agency of a child, and, the need to care for the child; such leave may be
prior to the actual birth or placement.
The provisions of this Section shall be administered in accordance with
the Family and Medical Leave Act of 1993 (FMLA). Section 12.3. Employees who
have completed their probationary period who lose actual work time in order to
attend the funeral of a family member shall receive a paid funeral leave for
time necessarily lost during the employee's regularly scheduled shift, provided
the employee would have been scheduled and at work during that day. Said leave
shall be up to three (3) days with pay for a deceased parent, spouse, child,
brother, or sister and one (1) day for a deceased father-in-law, mother-in-law,
grandparent, brother-in-law, or sister-in-law. In order to receive pay under
this Section, an employee must be actively working, must make application for
such paid leave, and must attend the funeral. The Company may require
satisfactory evidence of attendance at the funeral and the relationship of the
deceased. Section 12.4. If the Company has knowledge that an employee, in a
premium-rated classification, will be on family and medical leave, military
leave, or an industrial injury leave for more than thirty (30) calendar days,
the job will be posted and filled on a temporary basis. The successful bidder
will receive the rate of the premium classification for the period its duties
are performed. When employees on leave under this Section return, they shall be
immediately assigned to their old job; employees temporarily filling the job
shall return to their regular classification and pay rate. Section 12.5. The
Company shall pay each active employee who reports for jury duty the difference
between pay up to eight times the hourly rate for time actually lost and the
juror's daily fee for each day the employee is required to serve on a jury. The
employee must report to work during those days of his regularly scheduled shift
during which the employee is not required to report for jury duty or be
available at court for jury service. The employee must present proof of jury
service and the amount of compensation received from the court.
ARTICLE 13
VACATIONS
Section 13.1. Regular full-time employees shall be eligible for one (1) week's
vacation after the first anniversary date of continuous employment, and after
the anniversary date of each succeeding year.
Employees shall be eligible for a second week of vacation after the second
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a third week of vacation after the tenth
anniversary date of continuous employment, and after the anniversary date of
each succeeding year of continuous employment.
Employees shall be eligible for a fourth week of vacation after the
twentieth anniversary date of continuous employment and after the anniversary
date of each succeeding year of continuous employment. Section 13.2. To be
eligible for a vacation, an employee must have worked sixteen hundred (1,600)
hours during the preceding twelve (12) months or eighty (80) percent of
available hours for that period, whichever is less. Vacations and holidays not
worked shall be considered time worked for purposes of this Section. Section
13.3. Vacation pay shall be computed at forty (40) times the Employee's regular
straight time hourly rate. Section 13.4. Due consideration will be given
employees' choice of vacation time, but all vacations scheduled are subject to
the final approval of the Company in keeping with the Company's scheduling
needs. In the event that two or more employees cannot be released at the same
time, the employee with the longest service with the Company will be given
preference. An employee who notifies the Company of a vacation choice thirty
(30) days in advance shall not lose that vacation choice to another employee.
Vacations may not be scheduled for periods of less than a week, and all
vacations must be taken within an anniversary year. Section 13.5. The Company
reserves the right to schedule a plant shutdown for one .(l) week in any year,
which shall be treated as a vacation week for those employees entitled to
vacation.
ARTICLE 14
HOLIDAYS
Section 14.1. The following shall be considered holidays:
New Year's Day Labor Day
Martin Luther King's Birthday Thanksgiving Day
Memorial Day Christmas Day
July Fourth Birthday Holiday
The birthday holiday shall be taken on the employee's birthday. If the
birthday falls on a Saturday or Sunday, the holiday shall be taken on a day
agreed upon by the Company and the employee within one week of the birthday.
Section 14.2. All regular full-time employees who have completed their
probationary period shall be paid for eight (8) hours at their regular straight
time rate for each holiday enumerated above, provided they report for work and
work all scheduled hours on the workday preceding and the workday next following
the holiday, unless the employee was necessarily absent due to personal illness,
supported by a doctor's certificate, or because of an emergency occurring to the
employee or the employee's immediate family (meaning only spouse, children, or
parents). No employee shall lose holiday pay because of missing no more than
thirty (30) minutes on the workday before or the workday following the holiday.
In any event, an employee must work at least one (1) day during the
calendar week in which a holiday falls in order to be eligible for holiday pay,
except the employee who is on vacation. Section 14.3. Employees required to work
on a holiday shall be paid the amount provided above, in addition to their
regular earnings for that day. Hours not worked on a holiday shall not be
considered as work time in computing any additional compensation due under the
overtime provisions of this contract. Section 14.4. If an employee is required
to work and fails to report or fails to work scheduled hours on a holiday, the
employee shall forfeit holiday pay for that day. Section 14.5. Employees on
vacation during the week in which a holiday falls shall receive holiday pay.
ARTICLE 15
INSURANCE
Section 15.1. The Company will provide a group insurance program for employees
covered by this Agreement. The Company will continue to make monthly
contributions toward group insurance premiums in the same proportion as is
currently in effect. Employees will bear the remaining costs of the insurance.
ARTICLE 16
WAGES
Section 16.1. Wages shall be paid as provided in Appendix A attached hereto and
made a part of this Agreement. Section 16.2. Whenever a new job classification
is created by the Company, or there is a change or merger of job classifications
or the job content of job classifications, the Company will discuss the
appropriate wage rate with the Union. If a mutually satisfactory rate cannot be
agreed upon, the Company will set the rate. The Union may file a grievance on
the rate, and the dispute shall be settled in accordance with the grievance and
arbitration procedures of this contract. Section 16.3. Any employees who, upon
the effective date of the wage rate set forth in Appendix A, are earning in
excess of the applicable rate, shall, during the term of this Agreement,
continue to receive their current rate until the contract rate equals or exceeds
that rate. This section shall not apply to any employee in a classification
which has been paid on a salary basis under any past contract. Section 16.4. In
addition to the wage rates as provided in Appendix A, production employees who
have been continuously employed for five (5) or more years shall receive
seniority pay of twenty (20) cents per hour. Maintenance employees and
distribution drivers who have been continuously employed for five (5) or more
years will receive seniority pay of fifty (50) cents per hour. Long haul drivers
who have been continuously employed for five (5) more years will receive an
additional one (1) cent on the applicable mileage rate. Section 16.5. Employees
who have been continuously employed for one (1) or more years shall receive a
night shift differential of twenty-five (25) cents per hour for work performed
on a shift starting during the hours beginning 12:00 noon through 1:00 a.m. The
starting time of a shift determines if it is subject to the shift differential.
Employees performing work on a night shift which is not their regular shift will
receive shift differential for such work if it lasts three (3) or more hours.
Distribution drivers shall not receive shift differential regardless of the time
they begin work.
ARTICLE 17
MISCELLANEOUS
Section 17.1. The Company shall maintain safe, sanitary, and healthy working
conditions at all times, and employees will be required to cooperate in
maintaining such conditions. Any complaints regarding safety or health shall be
processed through the grievance and arbitration provisions of this Agreement.
Section 17.2. The Company will provide any uniforms required of employees who
have completed their probationary period.
The Company will furnish required safety equipment, gloves, aprons, hair
nets, freezer gloves, cotton gloves, and smocks at no cost to the employee.
Needed replacements, through normal use, will be made at no cost provided the
worn out article is returned to the Company. If an item is lost or destroyed
through employee negligence, the employee will be charged for its replacement.
Section 17.3. The Employer may require any employee to take a physical
examination at any time at the Employer's expense. Section 17.4. It shall be the
responsibility of all employees to keep the Employer apprised of their current
address, telephone number, marital status and number of dependents. Section
17.5. It is the intent of the parties hereto that no provisions of this
Agreement shall require either party to perform any act which shall be unlawful
under any Mississippi or Federal statute.
ARTICLE 18
EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT Section 18.1.
Employees covered by this Agreement will continue to be covered by the Employee
Stock Ownership Plan of Sanderson Farms, Inc. and Affiliates. Participation and
benefits in the plan shall be in accordance with the provisions of that plan.
ARTICLE 19
NO DISCRIMINATION
Section 19.1. The Company and the Union agree that they will not discriminate
against any person with regard to employment or Union membership because of
race, creed, color, sex, religion, age, national origin, or disability (as
defined in the Americans With Disabilities Act). Section 19.2. Whenever
masculine gender is used in this Agreement, it shall apply to the feminine
gender.
ARTICLE 20
AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF Section 20.1.
During the term of this Agreement, the Company will deduct initiation fees,
assessments, and Union dues from the wages of employees who individually
authorize the Company on a form in compliance with Appendix B to this Agreement.
Section 20.2. The Union shall save the Company harmless against and from all
claims, demands, suits or other forms of liability that arise out of or by
reason of action taken or not taken by the Company in reliance upon or
compliance with any provisions of this Article. Section 20.3. It is agreed that
by reason of institution of the above check-off system, collections by any other
method on the Company's premises are prohibited, except with the permission of
the Company.
ARTICLE 21
UNION SECURITY
Section 21.1. It shall be a condition of employment that all employees of the
Employer covered by this Agreement become members of the Union in good standing
not later than thirty-one (31) days after the effective date of this Agreement,
and remain members in good standing of the Union. It shall also be a condition
of employment that all employees covered by this Agreement and hired on or after
its effective date shall on the thirty-first (31st) day following the beginning
of such employment become and remain members in good standing in the Union.
The Union shall save the Company harmless against and from all claims,
demands, suits, or other forms of liability that arise out of or by reason of
action taken or not taken by the Company in reliance upon or compliance with any
provisions of this Article.
It is understood and agreed that the provisions of this Article shall be
effective only to the extent permitted by applicable law.
ARTICLE 22
DURATION OF AGREEMENT
Section 22.1. This Agreement shall remain in full force and effect from the 13th
day of January, 2000 until the 31st day of December, 2003, and shall continue
thereafter from year to year until either party to this Agreement desires to
terminate this Agreement by giving written notice at least sixty (60) days prior
to December 31, 2003, or at least sixty (60) days' written notice prior to any
anniversary date thereafter. The parties to this Agreement shall endeavor to
satisfactorily negotiate any contemplated change or execute a new Agreement
during the sixty (60) day period, after proper notice in writing has been given
as provided herein and above. Notice, as specified in this Article, shall be
mailed via United States Certified Mail.
IN WITNESS WHEREOF, the parties have hereunto signed their names this
______ day of January, 2000.
SANDERSON FARMS, INC. LABORERS' INTERNATIONAL UNION
(Collins Processing Division) OF NORTH AMERICA, PROFESSIONAL
EMPLOYEES LOCAL UNION #693
AFL-CIO
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APPENDIX "A"
WAGE SCHEDULE
EFFECTIVE
1/16/00 1/07/01 1/06/02 1/05/03
PROCESSING
Receiving
Forklift Operator ......... 8.25 8.45 8.80 9.15
Hanging Dock .............. 8.10 8.30 8.65 9.00
Picking
Killer .................... 8.35 8.55 8.90 9.25
Floorworker ............... 8.00 8.20 8.55 8.90
Line Operator ............. 7.65 8.05 8.40 8.75
Eviscerating
Floorworker ............... 8.00 8.20 8.55 8.90
Bird Chiller Operator ..... 8.00 8.20 8.55 8.90
Line Operator ............. 7.85 8.05 8.40 8.75
PACKING
Drip Line
Forklift Operator ......... 8.30 8.50 8.85 9.20
Scale Operator ............ 8.10 8.30 8.65 9.00
Floorworker ............... 8.00 8.20 8.55 8.90
Giblet Chiller Operator ... 8.00 8.20 8.55 8.90
Grader .................... 7.95 8.15 8.50 8.85
Line Operator ............. 7.85 8.05 8.40 8.75
Specialty
Scale Operator ............ 8.10 8.30 8.65 9.00
Floorworker ............... 8.00 8.00 8.55 8.90
Line Operator ............. 7.85 8.05 8.40 8.75
Polybag
Scale Operator ............ 8.10 8.30 8.65 9.00
Floorworker ............... 8.00 8.20 8.55 8.90
Line Operator ............. 7.85 8.05 8.40 8.75
Paw Line
Scale Operator ............ 8.10 8.30 8.65 9.00
Chiller Operator .......... 8.00 8.20 8.55 8.90
Line Operator ................... 7.85 8.05 8.40 8.75
EFFECTIVE
1/16/00 1/07/01 1/06/02 1/05/03
CHILLING/PREPRICE/SHIPPING
Chilling
Forklift Operator .......... 8.30 8.50 8.85 9.20
Chilling Room Operator ..... 7.95 8.15 8.50 8.85
Preprice
Data Printer Operator ...... 8.10 8.30 8.65 9.00
Line Operator .............. 7.85 8.05 8.40 8.75
Shipping
Forklift Operator .......... 8.30 8.50 8.85 9.20
Billing Clerk .............. 8.00 8.20 8.55 8.90
Loading Crew ............... 7.95 8.15 8.50 8.85
Distribution Driver ........ 10.40 10.60 10.95 11.30
DEBONE DEPARTMENT
Deboning
Scale Operator ............. 8.10 8.30 8.65 9.00
Floorworker ................ 8.00 8.20 8.55 8.90
Knife Sharpener ............ 8.00 8.20 8.55 8.85
Cooler Arranger ............ 7.95 8.15 8.50 8.85
Combo Packer ............... 7.95 8.15 8.50 8.85
Dumper ..................... 7.95 8.15 8.50 8.85
Stack Off .................. 7.95 8.15 8.50 8.85
Line Operator .............. 7.85 8.05 8.40 8.75
QUALITY CONTROL
Quality Control Technician . 8.10 8.30 8.65 9.00
Purchasing
Supply Clerk ............... 7.90 8.10 8.45 8.80
Line Operator .............. 7.85 8.05 8.40 8.75
Waste Water
Waste Treatment Operator ... 7.95 8.15 8.50 8.85
<PAGE>
EFFECTIVE
1/16/00 1/07/01 1/06/02 1/05/03
MAINTENANCE DEPARTMENT
Master Skilled Operator I ....12.65 12.85 13.20 13.55
Master Skilled Operator II ...11.15 11.35 11.70 12.05
Skilled Maintenance Men.......10.25 10.45 10.80 11.15
Mechanic ..................... 9.65 9.85 10.20 10.55
Mechanic Helper .............. 8.15 8.35 8.70 9.05
Clean-Up Floor Worker ........ 8.00 8.20 8.55 8.90
Clean-Up Line Operators ...... 7.85 8.05 8.40 8.75
BY-PRODUCTS (Rendering)
Maintenance
Master Skilled Maint. I ......12.65 12.85 13.20 13.55
Master Skilled Maint. II .....11.15 11.35 11.70 12.05
Skilled Maintenance ..........10.25 10.45 10.80 11.15
Mechanic ..................... 9.65 9.85 10.20 10.55
Mechanic Production
Feather Loader ............... 8.30 8.50 8.85 9.20
Feather Cooker Operator ...... 8.30 8.50 8.85 9.20
Meat Cooker Operator ......... 8.30 8.50 8.85 9.20
Utility ...................... 8.30 8.50 8.85 9.20
By-Products Crew ............. 8.30 8.50 8.85 9.20
Bobcat Loader ................ 8.10 8.30 8.65 9.00
Driver
Raw Material Driver .......... 9.05 9.25 9.60 9.95
Finish Material Driver ....... 9.05 9.25 9.60 9.95
Probationary employees shall receive a training rate of $6.15
per hour for the first ninety (90) days of their employment, which
shall be $6.25 effective January 7, 2001, $6.35 effective January 6,
2002, and $6.45 effective January 5, 2003. Upon the expiration of
the ninety (90) day period, the rate shall be $7.05 per hour, which
shall be $7.15 effective January 7, 2001, $7.25 effective January 6,
2002, and $7.35 effective January 5, 2003. After one year of
employment, an employee's rate shall be as shown hereinabove. Newly
hired employees in premium classifications above shall receive the
rate of that classification upon the expiration of a forty-five (45)
day period.
Long haul drivers will be paid on a per mile basis as follows:
Trips in excess of 100 miles from Collins:
Less than one year 28 cents per mile
One year to five years 30 cents per mile
Over five years 32 cents per mile
Trips up to 100 miles from Collins:
Less than one year 32 cents per mile
One year to five years 34 cents per mile
Over five years 36 cents per mile
Double team operation:
Less than five years 19 cents per mile
After five years 22 cents per mile
Miscellaneous paid time, including breakdowns, is paid at the
distribution driver hourly rate.
<PAGE>
APPENDIX "B"
CHECK-OFF AUTHORIZATION AND ASSIGNMENT
TO: ALL EMPLOYERS BY WHOM I AM EMPLOYED
I,------------------------------, do hereby assign to Local Union No. 693,
LIUNA Professional Employees, AFL-CIO, such amounts from my wages as shall be
required to pay the initiation fees, readmission fees, membership dues and
assessments of the Local Union as may be established from time to time. My
Employer is hereby authorized to deduct amounts from my wages and pay the same
to the Local Union and/or its authorized representative, in accordance with the
collective bargaining agreement in existence between the Local Union and my
Employer.
This authorization shall become operative upon the effective date of each
collective bargaining agreement entered into between my Employer and the Local
Union.
This authorization shall be irrevocable for a period of one year, or until
the termination of the collective bargaining agreement in existence between my
Employer and the Local Union, whichever occurs sooner; and I agree and direct
that this authorization shall be automatically renewed and shall be irrevocable
for successive periods of one year each, or for the period of such succeeding
applicable collective bargaining agreement between my Employer and the Local
Union, whichever be shorter, unless I give written notice to my Employer and the
Local Union not more than twenty days and not less than ten days prior to the
expiration of each period of one year, or of each applicable collective
bargaining agreement between my Employer and the Local Union, whichever occurs
sooner.
Dues and fees paid to Local Union No. 693 are not deductible as charitable
contributions for federal income tax purposes. Dues and fees paid to Local Union
693, however, may qualify as business expenses, and may be deductible in limited
circumstances subject to various restrictions imposed by the Internal Revenue
Service.
This assignment has been executed this _____ day of
______________________________, 19_______
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000812128
<NAME> Sanderson Farms, Inc.
<MULTIPLIER> 1000
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Oct-31-1999
<PERIOD-START> Nov-01-1999
<PERIOD-END> Jan-31-2000
<EXCHANGE-RATE> 1.0
<CASH> 4,665
<SECURITIES> 0
<RECEIVABLES> 36,929
<ALLOWANCES> 249
<INVENTORY> 48,541
<CURRENT-ASSETS> 98,729
<PP&E> 359,507
<DEPRECIATION> 179,279
<TOTAL-ASSETS> 279,689
<CURRENT-LIABILITIES> 34,640
<BONDS> 101,546
0
0
<COMMON> 13,787
<OTHER-SE> 113,621
<TOTAL-LIABILITY-AND-EQUITY> 79,689
<SALES> 137,008
<TOTAL-REVENUES> 137,008
<CGS> 131,180
<TOTAL-COSTS> 131,180
<OTHER-EXPENSES> 6,045
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,678
<INCOME-PRETAX> (1,895)
<INCOME-TAX> (713)
<INCOME-CONTINUING> (1,182)
<DISCONTINUED> (0)
<EXTRAORDINARY> (0)
<CHANGES> (234)
<NET-INCOME> (1,416)
<EPS-BASIC> (.10)
<EPS-DILUTED> (.10)
</TABLE>
