ARTICLE 5

WAGES

Section 1. Wages.

It is agreed that it is the right and responsibility of Management to establish new job classifications and to grade employees in accordance therewith. Any such changes will be reviewed and discussed with the Union at least thirty (30) days in advance of the establishment of the new job classifications. Should a dispute arise concerning the exercise of this right and responsibility of Management, it shall be treated as a grievance and handled in accordance with Article 7 of this Agreement.

Section 2. Definitions.

The meanings of certain terms used in this Article 5 and elsewhere in this Agreement are stated below:

A. Base Rate. An employee's hourly rate of pay, excluding all allowances, differentials, adjustments, bonuses, awards, and premiums.

B. Base Rate Ranges. The minimum and maximum rates of pay for each labor grade are established under Schedule A.

Section 3. Wage Increases and Bonuses.

A. Year 2007 range minimums and maximums are set according to the markets for which we compete (See Schedule A).

B. On or before December 22, 2006, all bargaining unit employees, including those on leave of absence, will receive a ratification bonus of $1,250.

C. Effective January 11, 2007, all bargaining unit employees, including those on leave of absence, will have their base rates increased with a three (3) percent general wage increase.

D. Effective January 11, 2008, all bargaining unit employees, including those on leave of absence, will have their base rates increased with a three (3) percent general wage increase.

E. Effective January 11, 2009, all bargaining unit employees, including those on leave of absence, will have their base rates increased with a three (3) percent general wage increase.

Section 4. Job Progression Increases.

On their six (6)-month anniversary of the date of hire or date of the last job progression increase, all employees below the rate range maximum for their job classification will, subject to such maximum, receive a job progression increase to their base rate of fifty (50) cents per hour. Employees on approved leave of absence will continue to accrue time toward their next six (6)-month progression increase for the first ninety (90) days of the leave. Employees recalled from layoff within one (1) year will be credited with any time they had prior to their layoff toward their next six (6)-month progression increase.

Section 5. Cost-of-Living Allowance.

Employees on the payroll for a minimum of ninety (90) days will be eligible to receive Cost of Living Allowance (COLA) increases as defined below. This payment will be based on months of active service and prorated accordingly. COLA calculations will continue in the cumulative fashion as the prior Agreement.

A. In order to protect the buying power of its employees against changes in consumer prices, the Company agrees to a Cost of Living Allowance (COLA) which shall be adjusted, as set forth in Subsection C of this Section, for changes in the cost of living during the life of this Agreement.

B. Eligibility for the Cost of Living Allowance is extended to employees in the Bargaining Unit in accordance with Section 3 above.

C. The basis for determining Cost of Living Allowance adjustments will be as follows: The Cost of Living Allowance (COLA) will be determined in accordance with changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) (United States City Average, All Items, 1982-84 = 100), published monthly by the Bureau of Labor Statistics (BLS), United States Department of Labor, and hereinafter referred to as the “BLS Consumer Price Index”.

D. The COLA shall be calculated and paid on a semi-annual basis, in the form of a Lump Sum Payment, and will not be folded into one's Base Rate. Said payment will be paid in the first pay period of the second month following the end of July and January of each calendar year. (e.g., the first payment would be made commencing with the payroll on September 3, 2007. The second payment would be made commencing with payroll on March 3, 2008, etc.) The COLA generated for the second half of 2006 shall be paid on or before March 3, 2007.

E. The amount of the COLA which shall be effective for the periods provided above shall be based on the percent of increase between the average for the prior six (6) months and the Peg Point (152.3 or less = $.00) with one-cent ($.01) adjustment for each full 0.075% change in the average BLS Consumer Price Index for the appropriate six (6) month period indicated. In no event will a decline in the average of a quarterly period of the BLS Consumer Price Index cause a reduction in the Pure Base Rate.

F. No adjustments, retroactive or otherwise, shall be made due to any revision, which may later be made in the published figures of the BLS Consumer Price Index for any base month.

The parties to this Agreement agree that the continuance of the Cost-of-Living Allowance is dependent upon the availability of the official monthly BLS Consumer Price Index in its present form and calculated on the same basis as the BLS Consumer Price Index for March, 1996.

Section 6. Performance Bonus Plan.

Employees on the payroll for a minimum of ninety (90) days will be eligible to receive Lump Sum Performance Bonus increases as defined below. This bonus will be based on months of active service and prorated accordingly.

The Company will implement an annual (calendar year) Performance Bonus Plan for the life of this Agreement. Under this plan employees will be eligible to receive a Lump Sum Payment equal to a designated percentage (Target Bonus Percentage) as determined by Management, of one's Base Rate wagesannual earningsearned by the employee during the period covered by the Performance Bonus Plan. At the beginning of each calendar year Management will share with the Union and its employees Performance Targets and objectives. Lump Sum Payments will only be made if all performance targets are achieved. While the amount of the Target Bonus Percentage will be established by Management at the beginning of each calendar year, the Target Bonus Percentage for achievement of the plant’s Performance Targets will not be less than three (3) percent for any calendar year during the course of this Agreement. The Target Bonus Percentage and corresponding Lump Sum Payments may be increased if plan Performance Targets are exceeded.

These Lump Sum Payments will be based on the plant's annual business performance. An advance payment, if any, may be made on about July 31^st for the performance period January 1st - June 30th, with the amount of the advance payment to be determined at the sole discretion of Management.

Section 7. Lead Pay Premium.

Anyone required to act as a Lead person shall be notified in writing by his/her Supervisor and will be paid one dollar ($1.00) per hour above his/her current Base Rate, and will continue as Lead person until notified in writing that he/she is no longer to act as such.

Section 8. Certifications.

The Company will provide a list of required certifications. Anyone who, as approved by Management, obtains and maintains the required certifications, and is not in Classification A, shall move into it upon obtaining such certifications. All other things being equal, seniority will be the deciding factor for utilizing attained certifications and promotion into Classification A.