Reply – Re: MWA MOU 11 January 2014
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Re: MWA MOU 11 January 2014
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MEMORANDUM OF AGREEMENT

AGREEMENT made on this 11th day of January 2014 by and between the Manufacturing Woodworkers Association of Greater New York, Inc. ("MWA") and the New York City District Council of Carpenters (the "District Council");

WHEREAS, the parties have negotiated in good faith regarding the terms and conditions of a successor collective bargaining agreement, inasmuch as the predecessor collective bargaining agreement expired on June 30, 2013; and

WHEREAS, the parties agree that all of the terms and conditions of the predecessor agreement shall continue in full force and effect for a ten year period except as specifically modified below;

NOW, THEREFORE, the MWA and the District Council agree that all terms and conditions of the MWA & District Council Collective Bargaining Agreement ("CBA''), with the exceptions of what are included in this Memorandum of Agreement ("MOA"), shall continue except as modified below.

1. Article I, ยง 7 shall be modified to delete the second sentence and Article XXIV (Conformity of Agreements) shall be deleted.

2. The special 2-person installation provision under CBA Article III, Section 9 shall continue and for all MWA shops where 50% of the bargaining unit members are members of the New York City District Council the number of shop personnel permitted to perform installation work at the modified rate under CBA Article Ill. Section 9, shall increase from two to three, with the District Council designating the employee who shall be responsible for reporting the personnel and hours electronically as provided in paragraph 13 of this MOA. One of the three must be a District Council certified Shop Steward. For installation projects with four or more employees, three shop personnel shall be permitted to perform installation work at the modified rate, and the fourth employee shall be a New York City District Council certified Shop Steward dispatched from the District Council's Out of Work list and shall perform installation work at the full rate; and any additional employees beyond the fourth employee shall also perform installation work at the full rate. The allowance of a third shop employee to perform installation work hereunder where the Employer does not employ at least 50% members of the District Council but employs UBC or other union members must, when increasing manpower, hire District Council members until the 50% ratio of District Council members is met. Any Employer's failure to maintain such ratios or currently compliant Employers that fall below the ratio shall result in its or theirs' losing the ability to utilize a third shop employee under the reduced rate for the term of the CBA or until returning to compliance.

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3. Upon ratification of this MOA, the wages and fringe benefits as set forth in the MWA CBA that expired on June 30, 2013 shall be restored and paid prospectively, with those employees at, or who were at, the hourly wage rate of $31.24 to remain or to be restored to that rate before any increases provided herein are implemented.

4. (a) All employees hired after this MOA is signed, subject to the caveat set forth in paragraph six (6) below, will be compensated at Tier II rates for wages and benefits, specifically Twenty two Dollars ($22.00) per hour for wages and Ten Dollars and Ninety Four cents ($10.94) per hour for fringe benefits.

(b) These Tier ll employees will receive medical benefits for shop work as per the Hollow Metal Fund Welfare Fund.

(c) Furthermore, all fringe benefit contributions for all shop hours paid at the Tier II rate will be capped at forty (40) hours per week. There shall be no capping of hours for those employees employed at Tier I.

(d) The special arrangements for installations allowed under Article ill, Section 9, of the CBA shall only be done by Tier 1 employees.

(e) Once an employee is raised from Tier II to Tier I, he/she cannot be reverted to Tier II.

(t) For the duration of the successor collective bargaining agreement, each MWA Employer shall employ employees at the Tier I level at the following percentages of the total employee compliment for each employer under the CBA: from July 1, 2013 through June 30, 2015, at least sixty percent (60%) of its employees at Tier I; from July 1, 2015 through June 30,2019, at least fifty percent (50%) of its employees at Tier I; and from July 1, 2019 through June 30, 2023, at least forty percent (40%) of its employees at Tier I. That means at least the specified percentage of an Employer's actively employed employees (i.e., employees not on layoff or otherwise out on disability, workers compensation, LOA, etc.) must be maintained at the specified ratios. Nothing contained herein shall prohibit an individual MW A Employer from employing more than the specified percentage of Tier I employees.

5. (a) All employees on the payroll or on a disability, workers compensation, or other recognized or approved leave of absence or layoff of any MW A Employer beginning on or after January 1, 2013 will be grandfathered and not subject to the Tier II rates in the event these grandfathered employees are subsequently laid off. Grandfathering applies across all MWA Employers. All employees who have historically been employed by a MWA Employer but who have left or will in the future have left employment to accept

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employment with the District Council shall be covered hereunder and be classified as Tier I employees.

(b) Any employees who were hired by any MW A employer after May 1, 2012, and/or who worked at the lower wage and benefit rate will not be brought up to MWA Tier I wage and benefits scale and will not be subject to the grandfather provision, but rather will be considered a Tier II employee. The MWA represents that as of the execution of this MOA the number of such employees is approximately nine (9) among all MWA Employer-members.

6. The District Council can allocate monies between wages and benefits.

7. The successor CBA will be ten (10) years, with a term from July I, 2013 through June 30, 2023.

8. During the first two years of the successor CBA, Tier I employees shall receive an increase of one percent (1 %) effective upon ratification of this MOA, and another increase of two percent (2%) effective July 1, 2014; and the Tier II employees shall receive an increase of two percent (2%) effective upon ratification of this MOA and another increase of two percent (2%) effective July 1, 2014. In addition, the Employer's actively employed employees (including employees on layoff or otherwise out on disability, workers compensation, LOA, etc.) on the ratification of this MOA or during the thirty (30) days before that date shall receive the following wage bonuses: $500 for Tier I and $250 for Tier II. It is understood that the bonus amount will be paid only once to an employee regardless of how many MWA Employers he/she worked during the qualifying period, with the Employers paying a pro rata share of the bonus. Beginning with years three (i.e., July 1, 2015) and seven (i.e., July 1, 2019) of the successor CBA there will be a wage and benefit re-opener with interest arbitration before Arbitrator Martin Scheinman or, if he is unavailable, at the American Arbitration Association if the parties cannot agree. The parties agree that the No Strike-No Lockout clause shall remain in effect during the course of the above-referenced contract re-openers.

9. (a) Upon ratification of this MOA, the District Council will pay to the MWA via an electronic wire transfer to Trivella & Forte LLP the full amount set forth in the January 21,2013 Townley remedy award of $8,030,781.46. And the District Council and the MWA agree that, by entering into this MOA and the District Council making the payment hereunder, the Townley awards of May 3, 2012 (liability award) and January 21, 2013 (remedy award) shall be nullities, subject to the MWA obtaining a mutually acceptable and executed release with the fringe benefit Funds, as well as from the District Council.

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(b) The District Council agrees to support by any lawful means the MWA having an Employer trustee position on the Hollow Metal Benefit Funds or any other funds or entities to which the MW A Employers are obligated to make contributions.

10. The parties agree to execute all documents necessary to effectuate the terms and conditions of this MOA.

11. This MOA shall become effective upon ratification by the District Council's Executive Committee and Delegate Body and by the MWA's governing body.

12. The District Council and the MOA will work to establish an electronic process for recording time worked by each District Council represented employee on a project. The electronic record and resulting reports will be used by both the Employer and the District Council to authenticate the time worked to ensure that the proper wages and benefits are paid for the hours worked. The cost of any timekeeping devices and related system and any training will be entirely borne by the District Council.

13. The District Council shall make no claims or charges and shall take no other adverse action against the MWA and/or its employer-members for conduct in support of, or alleged or believed to be in support of, the MWA's position in the negotiations resulting in this MOA. The MWA and its employer-members shall make no claims or charges and shall take no other adverse action against the District Council for conduct in support of, or alleged or believed to be in support of, the District Council's position in the negotiations resulting in this MOA, and shall make no claims or charges and shall take no disciplinary or other adverse action against any member of the District Council and/or any employee or former employee represented by the District Council for any acts occurring or alleged to have occurred prior to the date of execution of this MOA.

14. The parties agree any dispute as to the interpretation, application, or breach of this MOA shall be resolved by submission to arbitration before Martin Scheinman.

15. This MOA may be executed in counterparts and by facsimile or PDF e-mail.

16. It is expressly agreed by and between the MWA and the District Council that no MWA Employer shall be required to pay any wages, fringe benefits and/or any other financial obligation to or on behalf of any striking employees for the period of July 1, 2013 through and including July 21, 2013.

17. The current language in Article XI shall be deleted and replaced with the following: "The Employers will have sixty (60) days for the shop and thirty (30) days for the field to remit benefit contributions regardless of whether the Employer has posted a bond. For the purposes of determining when contributions are due, the pay date shall control."

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18. The current language of CBA Article X, Section ll(a) shall be modified by deleting the second through fifth sentences and Section 11 (b) shall be deleted and replaced with the following:

Whenever an Employer is in default in contributions to the Funds referred to in Article X of this Agreement, and reasonable written notice of at least fourteen (14) days of such default is given to the Employer, if payments are not made, the District Council may remove its members from the work of such Employer. If such members who are removed remain at the jobsite during regular working hours, they shall be paid for lost time not to exceed three (3) days' pay.

IN WITNESS WHEREOF, the Parties have caused this MOA to be executed by their duly authorized representatives on the dates indicated below.


New York City District Council of Carpenters

Dated: 1-11-14        By: Stephen McInnis


Manufacturing Woodworkers Association of Greater New York

Dated: 11-11-14      By Anthony Rizzo

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