2011

ENGINEERAGREEMENT

BETWEEN

REALTY ADVISORY BOARDON LABOR RELATIONS,

INCORPORATED

AND

LOCAL 94-94A-94BInternational Union ofOperating Engineers

AFL-CIO

Effective: January 1, 2011To December 31, 2014

Table of Contents

Page No.Annuity Fund . . . . . . . . . . . . . . . . . . . . . . . . . 28Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Building Acquisition

by Public Authority . . . . . . . . . . . . . . . . . . 21Bulletin Board . . . . . . . . . . . . . . . . . . . . . . . . 50Change of Employer . . . . . . . . . . . . . . . . . . . 47Complete Agreement . . . . . . . . . . . . . . . . . . . 22Disability Benefits Law . . . . . . . . . . . . . . . . . 35Dues Check-off . . . . . . . . . . . . . . . . . . . . . . . . 11Election Day . . . . . . . . . . . . . . . . . . . . . . . . . . 44Emergency Calls . . . . . . . . . . . . . . . . . . . . . . . 50Employer Fund Contributions . . . . . . . . . . . . 23Employment and Discrimination . . . . . . . . . . 52Excessive Overtime . . . . . . . . . . . . . . . . . . . . 11Family Death . . . . . . . . . . . . . . . . . . . . . . . . . 45Family and Medical Leave Act . . . . . . . . . . . 54Fire Safety Plan . . . . . . . . . . . . . . . . . . . . . . . 50First Aid Kit . . . . . . . . . . . . . . . . . . . . . . . . . . 50Grievance Procedure . . . . . . . . . . . . . . . . . . . 19Hazardous Work . . . . . . . . . . . . . . . . . . . . . . . 53Health and Benefits . . . . . . . . . . . . . . . . . . . . 23Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Job Definitions . . . . . . . . . . . . . . . . . . . . . . . . 54Jury Duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Leave of Absence . . . . . . . . . . . . . . . . . . . . . . 40Legal Assistance . . . . . . . . . . . . . . . . . . . . . . . 54Medical Check-up . . . . . . . . . . . . . . . . . . . . . 45

Table of Contents

Page No.No Strikes or Lockouts . . . . . . . . . . . . . . . . . 18Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Pyramiding . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Recognition and Union Security . . . . . . . . . . . 1Reducing Force . . . . . . . . . . . . . . . . . . . . . . . . 46Right of Management . . . . . . . . . . . . . . . . . . . 15Sale of Building . . . . . . . . . . . . . . . . . 21 and 47Sanitary Arrangements . . . . . . . . . . . . . . . . . . 49Saving Clause . . . . . . . . . . . . . . . . . . . . . . . . . 22Security Background Checks . . . . . . . . . . . . . 56Seniority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Sickness Benefits . . . . . . . . . . . . . . . . . . . . . . 29Sick Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Staff Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . 4Substance Abuse Testing . . . . . . . . . . . . . . . . 56Term of Agreement . . . . . . . . . . . . . . . . . . . . 23Termination Pay . . . . . . . . . . . . . . . . . . . . . . . 46Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Training Fund . . . . . . . . . . . . . . . . . . . . . . . . . 31Training Program . . . . . . . . . . . . . . . . . . . . . . 32Transferring Employees . . . . . . . . . . . . . . . . . 38Trial Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Unemployment Insurance Law . . . . . . . . . . . 35Uniforms and Other Apparel . . . . . . . . . . . . . 50Union Insignia . . . . . . . . . . . . . . . . . . . . . . . . 50Vacations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Wages, Hours and Working Conditions . . . . . 5

2011 ENGINEER AGREEMENT

This agreement is by and between theInternational Union of Operating Engineers,Local 94-94A-94B, AFL-CIO (hereinafterreferred to as the “Union”), acting on behalf of itsmembers and other employees for whom it is rec-ognized as the collective bargaining agent asdefined below, and the Realty Advisory Board onLabor Relations, Incorporated (hereinafterreferred to as the “RAB”), acting on behalf ofvarious owners of office and commercial build-ings in the City of New York and authorizedagents of such owners, who become signatory tothis agreement (hereinafter severally referred toas “Employer”).

ARTICLE 1

Recognition and Union Security

1. This agreement shall be binding on eachowner signatory to this agreement, as well asupon each agent of an owner who becomes signa-tory hereto as Employer.

2. The Union is recognized as the exclu-sive bargaining representative of all employeesemployed as engineers, mechanics, helpers (aswell as chief engineers and assistant chief engi-neers in such buildings where these classifica-tions are represented by the Union) and whereverthe word “employee” appears herein, it shall referto all such classifications of employee.

1

3. The Employer shall not enter into anyagreement contracting for the performance ofwork and/or for the categories of work heretoforeperformed by employees covered by this agree-ment except within the provisions and limitationsset forth below.

4. In the event that an Employer desires tocontract for the service performed by members ofthis Union, or change contractors for such servic-es, it shall do so in compliance with the followingprovisions:

(a) The Employer shall give advancewritten notice to the R.A.B. and the Union at leastthree (3) weeks prior to the effective date of itscontracting for such services, and set forth thename and address of the contractor.

(b) As a condition of such contracting,the Employer shall require the contractor tobecome a party to this agreement and to file asub-assent hereto with the Union through theRAB, and the contractor shall thereafter have allof the rights and obligations of the Employerhereunder. The Union has the right to reject suchsub-assent where the contractor has habituallyfailed to comply with the obligations of the laboragreements with the Union covering other build-ings in the industry or has failed to make properand timely payments to the Union Welfare,Annuity, Sick Pay, Training and/or PensionFunds. The Union shall not arbitrarily refuse to

2

accept a sub-assent and the Employer may havesuch refusal reviewed by grievance and/or arbitration.

(c) The Employer agrees that itsemployees then engaged in the particular workwhich is contracted out shall become employeesof the initial contractor or any successor contrac-tor, and agrees to employ or re-employ thoseemployees in the employ of the contractor at anytime that such contracts are terminated or can-celed. This provision shall not be construed toprevent termination of any employee’s employ-ment under other provisions of the agreementrelating to illness, retirement, resignation, dis-charge or lay-offs; however, a contractor may notreduce force or change the work schedule withoutfirst obtaining written consent of the Union,which consent shall not be unreasonably with-held, and which shall be subject to grievanceand/or arbitration.

(d) If a contractor fails to comply withall provisions of this agreement, the Employershall be liable jointly and severally with the con-tractor for any and all damages sustained by theemployees or by the Union as a result thereof, aswell as for any unpaid Welfare, Sick Pay,Annuity, Training and/or Pension contributions;provided, however, that the Employer’s liabilityshall commence when it receives written noticefrom the Union of the contractor’s failure to socomply.

3

(e) To determine which employeesemployed by the Employer should be members ofthe Union under the terms of this agreement, andto ascertain the amounts payable to the UnionWelfare, Annuity, Sick Pay, Training and/orPension Funds, the Union and/or the Funds, inde-pendently or in coordination and cooperation,shall have the right to inspect and audit the con-tractor’s social security and/or payroll recordsand all such records shall be made available to theUnion and to the Funds upon request.

5. The Employer shall give written noticeof vacancies in the staff to the Business Managerof the Union. If the Union is unable to supply aqualified person for such opening within five (5)business days of receipt of such notice, or if theUnion waives its right to attempt to supply such aperson or if there is an emergency need to fill theposition immediately, then the Employer mayhire a person. All employees must become mem-bers of the Union after the thirtieth (30) day fol-lowing their employment; provided, however,that the requirement to become a member shall bewaived if the Union refuses membership to suchpersons.

6. Upon the receipt by the Employer of aletter from the Union’s Recording CorrespondingSecretary requesting any employee’s dischargebecause the employee has not met the require-ments of Union membership under the Agree -ment, unless the Employer questions the propri-ety of so doing, the employee shall be discharged

4

within fifteen (15) days of said notice if priorthereto the employee does not take proper steps tomeet said requirements. If the Employer ques-tions the propriety of the discharge, he/she shallimmediately submit the matter to grievance and ifnot thus settled, to arbitration for final determina-tion. If it is finally settled or determined that theemployee has not met said requirements, theemployee shall be discharged within ten (10)days after written notice of the final determina-tion has been given to the RAB and the Employer.

The Union will hold the Employer harmlessfrom any liability arising from a discharge askedby the Union pursuant to this provision, providedthe Employer has done nothing to cause orincrease its own liability concerning removal ofemployees.

ARTICLE II

Wage, Hours and Working Conditions

1. Employees shall be paid in accordancewith the scale of wages as set forth on the assentfiled hereto.

Wage increase shall be granted as follows:

EFFECTIVE JANUARY 1, 2011:

ENGINEERS: Sixty six cents ($.66) per hour,at which time the minimum wage for theseemployees shall be one thousand three hundredand thirty-nine dollars and twenty cents($1,339.20) per forty (40) hour week and thirty-

5

three dollars and forty-eight cents ($33.48) perhour.

HELPERS: Fifty-one cents ($.51) per hour, atwhich time the minimum wage for these employ-ees shall be one thousand forty-two dollars andeighty cents ($1,042.80) per forty (40) hour weekand twenty-six dollars and seven cents ($26.07)per hour.

OTHERS: Employees receiving pay scales otherthan the scale engineers or helpers shall be givenpercentage wage increases based on the followingformula: (2010 Rate x .0201) (Rounded to thenearest penny).

EFFECTIVE JANUARY 1, 2012:

ENGINEERS: Sixty seven cents ($.67) per hour,at which time the minimum wage for theseemployees shall be one thousand three hundredand sixty-six dollars ($1,366.00 per week) perforty (40) hour week and thirty-four dollars andfifteen cents ($34.15) per hour.

HELPERS: Fifty-two cents ($.52) per hour, atwhich time the minimum wage for these employ-ees shall be one thousand sixty-three dollars andsixty cents ($1,063.60) per forty (40) hour weekand twenty-six dollars and fifty-nine cents($26.59) per hour.

OTHERS: Employees receiving pay scales otherthan the scale engineers or helpers shall be givenwage increase based on the following formula:

6

(The Employees’ 2011 Hourly Rate x .0200)(Rounded to the nearest penny).

EFFECTIVE JANUARY 1, 2013:

ENGINEERS: One dollar and three cents($1.03) per hour, at which time the minimumwage for these employees shall be one thousandfour hundred and seven dollars and twenty cents($1,407.20) per forty (40) hour week and thirty-five dollars and eighteen cents ($35.18) per hour.

HELPERS: Eighty cents ($.80) per hour, atwhich time the minimum wage for these employ-ees shall be one thousand ninety-five dollars andsixty cents ($1,095.60) per forty (40) hour weekand twenty-seven dollars and thirty-nine cents($27.39) per hour.

OTHERS: Employees receiving pay scalesother than the scale engineers or helpers shall begiven wage increases based on the following for-mula: (The Employees’ 2012 Hourly Rate x.0302) (Rounded to the nearest penny).

EFFECTIVE JANUARY 1, 2014:

ENGINEERS: One dollar and fifty-five cents($1.55) per hour, at which time the minimumwage for these employees shall be one thousandfour hundred and sixty-nine dollars and twentycents ($1,469.20) per forty (40) hour week andthirty-six dollars and seventy-three cents ($36.73)per hour.

7

HELPERS: One dollar and twenty-one cents($1.21) per hour, at which time the minimumwage for these employees shall be one thousandone hundred and forty-four dollars ($1,144.00)per forty (40) hour week and twenty eight dollarsand sixty cents ($28.60) per hour.

OTHERS: Employees receiving pay scales otherthan the scale engineers or helpers shall be givenwage increases based on the following formula:(The Employees’ 2013 Hourly Rate x .0441)

(Rounded to the nearest penny).

(a) Effective January 1, 2012, in the eventthat the percentage increase in the cost of living[Consumer Price Index for the City of New York– Metropolitan Area (New York-New Jersey)Urban Wage Earners and Clerical Workers] fromNovember 2010 to November 2011 exceeds sixand one-half percent (6.5%), then, in that event,an increase of ten cents ($.10) per hour for eachfull one percent (l%) increase in the cost of livingin excess of six and one half percent (6.5%) shallbe granted effective for the first full work weekcommencing after January 1, 2012. In no eventshall said increase pursuant to this provisionexceed twenty cents ($.20) per hour. In comput-ing increases in the cost of living above six andone-half percent (6.5%) less than one-half of onepercent (.5 %) shall be ignored and increases ofone-half of one percent (.5%) or more shall beconsidered a full point. Any increases hereundershall be added to the minimum.

8

(b) Effective January l, 2013, in the eventthat the percentage increase in the cost of living[Consumer Price Index for the City of New York– Metropolitan Area (New York-New Jersey)Urban Wage Earners and Clerical Workers] fromNovember 2011 to Novem ber 2012 exceeds sixpercent (6%), then, in that event, an increase often cents ($.10) per hour for each full one percent(1%) increase in the cost of living in excess of sixpercent (6%) shall be granted effective for thefirst full work week commencing after January 1,2013. In no event shall said increase pursuant tothis provision exceed twenty cents ($.20) perhour. In computing increases in the cost of livingabove six percent (6%), less than one-half of apercent (.5%) shall be ignored and increases ofone-half of percent (.5%) or more shall be consid-ered a full point. Any increases hereunder shall beadded to the minimum.

(c) Effective January l, 2014, in the eventthat the percentage increase in the cost of living[Consumer Price Index for the City of New York– Metropolitan Area (New York-New Jersey)Urban Wage Earners and Clerical Workers] fromNovember 2012 to November 2013 exceeds sixpercent (6%) then, in that event, an increase of tencents ($.10) per hour for each full one percent(1%) increase in the cost of living in excess of sixpercent (6%) shall be granted effective for thefirst full work week commencing after January 1,2014. In no event shall said increase pursuant to

9

this provision exceed twenty cents ($.20) perhour. In computing increases in the cost of livingabove six percent (6%), less than one-half of apercent (.5%) shall be ignored and increases ofone-half of a percent (.5%) or more shall be con-sidered a full point. Any increases hereunder shallbe added to the minimum.

2. (a) Each Employer agrees to deduct theUnion’s monthly dues, and all legal assessmentsfrom the pay of each employee from whom itreceived written authorization and will continueto make such deduction while the authorizationremains in effect.

(b) Each Employer agrees to deduct vol-untary political contributions based upon authori-zations signed by the employees in accordancewith applicable law.

(c) Such deductions will be made fromthe pay for the first full pay period worked bysuch employee following receipt of the authoriza-tion, and thereafter will be made the first paydayeach month, and forwarded to the Union not laterthan the twentieth day in each and every currentmonth. Such deductions shall constitute trustfunds while in the possession of the Employer.

(d) If an employee does not revoke theauthorization at the end of a year following thedate of the authorization, or at the end of the cur-rent contract, whichever is earlier, it shall bedeemed a renewal of authorization, irrevocable

10

for another year, or until the expiration of the nextsucceeding contract, whichever is earlier.

(e) The Employer agrees to use the law-ful forms supplied by the Union for check-off.The Union agrees to indemnify and save suchEmployer and the RAB harmless from any liabil-ity incurred without fault on the part of theEmployer by reason of such deduction.

3. It is the policy of the Employer to avoidexcessive overtime. Where an employee believeshe/she is required to work excessive overtime, thematter shall be submitted to grievance and arbi-tration. If it is alleged that the excessive overtimeis a regular and continuing practice, such griev-ance may be submitted directly to arbitration.

4. An employee hired as a replacement or anaddition to the force may be employed at the min-imum rate for an engineer or helper set forthabove, except that where an assent has estab-lished a rate for such classification higher thansuch minimum rate, the applicable assent rateshall continue to apply to such building.

5. Any employee required to replace a high-er classified employee shall be paid at the rate ofthe higher classified employee, when and if theabsent employee is not being paid by theEmployer or the Sick Pay Fund.

6. (a) The standard work week shall beforty (40) hours per week, consisting of five (5)days of eight (8) hours each, and overtime shall

11

be paid at the rate of time and one half (1½ x) theregular straight time hourly rate for all hoursworked in excess of eight (8) hours per day or inexcess of forty (40) hours per week, whichever isgreater. There shall be no split shifts.

(b) Employees required to work over-time shall be paid at least one (1) hour at the over-time rate except for employees working overtimedue to absenteeism or lateness.

(c) Any employee who has worked eight(8) hours and is required to work at least four (4)hours of consecutive overtime before or after theeight (8) hours shall be paid a fifteen dollar($15.00) meal allowance.

(d) Every employee shall be entitled totwo (2) consecutive days off in any seven (7)days. Any work performed on such days shall beconsidered overtime and paid for at the rate oftime and one half (1½ x) the regular straight timehourly rate of pay.

(e) Saturday and Sunday shall be premi-um days and any work performed on those daysshall be paid for at the rate of time and one half (1½ x) the regular straight time hourly rate of pay.The determination of whether a particular workshift falls on a premium day shall depend uponthe building’s practice now applicable to holidaywork in that building.

(f) The weekly working hours for regu-lar full-time employees shall include a thirty (30)

12

minute relief and lunch period. Such period, atthe Employer’s option, shall be taken on thepremises at a scheduled time within two (2)hours of the middle of the shift and at such suit-able place compatible with building needs asmay be designated by the Employer. Where anemployee works a shift of more than eight (8)hours in any day, all time beyond eight (8) hoursshall be considered overtime and paid for at therate of time and one half times (1½ x) the regu-lar straight time hourly rate.

7. (a) No provision of this agreement shall beconstrued as to lower the weekly, daily or hourlywage of any employee. Where in any building,the employees of said building have presently ineffect a practice of terms or conditions better thanthose provided for herein, applicable generally tothe employees in the building covered by thisagreement in respect to wages, hours, sick pay,vacations, holidays, premium pay for Saturdayand/or Sunday work, relief and lunch periods, andgroup life insurance, such better conditions shallbe continued in effect for all employees who maynow, or during the term of this agreement, beemployed in the said building, except that suchcontinuance shall be required for group life insur-ance only for those persons in the employ of theEmployer on the effective date this agreement issigned and except insofar as the provisions ofSection 1 above, of this Article may apply. TheArbitrator is empowered to afford relief from the

13

obligations expressed in the preceding sentenceon the ground that its enforcement would work anundue hardship, injustice or inequity upon theEmployer.

(b) A change of schedules or duties shallnot constitute a violation of this Section.However, every employee presently working aMonday through Friday work week (and if suchemployee leaves his job for any reason whatsoev-er, the person who fills his position) shall receivepremium pay at time and one half times (1½ x)the regular straight time hourly rate for any workperformed by him on a Saturday or Sunday. TheEmployer shall post a change of schedule at leastten (10) days in advance of the effective datethereof.

8. Any employee called into work by theEmployer for any time not consecutive with hisregular schedule shall be paid for at least four (4)hours of overtime.

9. The Employer may require, subject toexisting law and without cost to the employee,that an employee’s check be deposited electroni-cally at the employee’s designated bank orEmployees may be paid by paycheck card. TheUnion shall be notified by the Employer of thisarrangement.

10. The Union agrees to cooperate with theemployer in transitioning all bargaining unitemployees to a bi-weekly payroll cycle. The

14

Employer will make its best efforts to minimizewithholding tax consequences to employees inaccordance with applicable law.

11. Pay stubs and other compensation docu-ments required to be distributed to employees thatonly are available on-line shall be in a format thatcan be downloaded, printed and shall be madeavailable to the employees at the work site.

12. The RAB will encourage its memberswho are signatories to the Engineer Agreement toadopt a qualified transportation fringe benefitprogram (e.g. transit check) pursuant to whichemployees may pay certain qualified transporta-tion costs on a pre-tax basis, to the extent permit-ted by law. In order to encourage the adoption ofsuch programs, the RAB will issue an appropriatebulletin and/or arrange seminars for signatories tothis agreement.

ARTICLE III

Right of Management

1. The Union recognizes the right of manage-ment to direct and control the policies of manage-ment subject to the obligations of this agreement.

2. It is agreed that the employees will coop-erate with management within the obligations ofthis agreement to facilitate the efficient operationof the building.

3. If, through the grievance procedure or bydecision of the Arbitrator, it shall be found that an

15

employee has been unjustly discharged, suchemployee shall be reinstated to his former posi-tion without loss of seniority or rank and shallsuffer no reduction in salary, and in such event theGrievance Committee or the Arbitrator shall beempowered to determine whether, and to whatextent, the employee shall be compensated by theEmployer for time lost.

4. It is agreed that in the case of substantial orunreasonable reduction of force, the Union mayinvoke the grievance procedure on a claim thatsuch reduction has created an unreasonable hard-ship on the remaining employees. In the event offailure of the Grievance Committee to resolve theissue, it may be submitted to arbitration.

5. The Employer shall not impose disciplineon employees for events occurring more thanthirty (30) days prior to the imposition of disci-pline unless the Grievance Committee or theArbitrator find that the Employer did not andcould not reasonably have known of the existenceof said occurrence within thirty (30) days. Thisprovision shall not be construed to preclude anArbitrator from receiving evidence of past disci-pline at any proceeding under this agreement.

6. All written disciplinary warnings forabsenteeism, tardiness or any other attendanceissue shall be null and void two (2) years after thedate on which they were issued, provided that theemployee has not received any other disciplineduring that two (2) year period.

16

7. The Union will continue to cooperate withthe employer on issues involving security andqualifications of employees. Any disputes underthis provision shall be subject to grievance andarbitration.

8. The Union recognizes that many Em -ployers covered by this Agreement provide aservice of critical importance to a customer orcustomers. If a customer demands that anEmployer remove an employee from furtheremployment at a location, the Employer shallhave the right to comply with such demand.However, unless the Employer has cause to dis-charge the employee, the Employer will place theemployee in a job at another facility covered byArticle 1, Sec. 1 of this Agreement without loss ofseniority or reduction in pay or benefits, or termi-nate the employee and pay termination pay, in theamount of three months wages and benefit fundcontributions, provided that the employee exe-cutes a general release in a form satisfactory tothe Employer. Actions taken under this provisionare subject to the grievance and arbitration proce-dure (Articles V and VI). The Union has the rightto subpoena the customer to testify at the arbitra-tion, and unless extraordinary circumstances arepresent, it is expected that the customer willappear at the hearing. The Arbitrator may orderthe employee to be reinstated to the building.

17

ARTICLE IV

No Strikes or Lockouts

1. During the term of this agreement, thereshall be no stoppage of work, strike, lock out orpicketing in respect to any signatory building,except as provided in Section 2 of this Article. Inthe event of a violation of this provision by any ofthe parties to this Agreement, such matter shall besubmitted immediately to an Arbitrator for suchactions as the Arbitrator deems necessary.

2. (a) If an award against the Employer bythe Arbitrator for Welfare, Annuity, Sick Pay,Training or Pension Fund payment is not com-plied with within two (2) weeks after such awardis sent by registered or certified mail to theEmployer at his last known address, the Unionmay order a stoppage of work, strike or picketingin the building involved to enforce such award,and it may also thereby compel payment of lostwages to any employee engaged in such workstoppage or strike. Upon compliance with theArbitrator’s award and payment of lost wages, thestoppage of work or strike shall cease.

(b) The Union shall not be held liablefor any violation of this Article where it appearsthat it has taken all reasonable steps to avoid andend any violation.

18

ARTICLE V

Grievance Procedure

1. Any grievance or dispute arising out of theinterpretation, performance or applicability ofany term or provision of this agreement shall besubmitted to a Grievance Committee, in writingby the party complaining within thirty (30) daysof occurrence unless the Committee or theArbitrator finds that the complainant did not andcould not reasonably have known of the existenceof said occurrence within thirty (30) days.

2. The Grievance Committee shall consist ofone (1) representative chosen by the Union andone (1) representative chosen by the Employer, itbeing agreed that no issue shall be submitted toarbitration, except as provided in Section 3 of thisArticle, Article II (3) or Article IV, until it has beenprocessed by the Grievance Committee and thatsaid Committee has failed to reach an adjustment.

3. (a) If the Committee fails to schedule ahearing of the issue within five (5) days afterreceipt of notice of the grievance the matter shallbe immediately submitted to arbitration unlessthe parties otherwise agree. There shall be nounreasonable delay in the hearing of a grievance.

(b) In the event the grievance procedureis not completed within fourteen (14) calendardays after notice of the Union’s request for griev-ance in discharge cases, the matter may bereferred by either party to arbitration.

19

ARTICLE VI

Arbitration

1. In the event of failure of the GrievanceCommittee to determine an issue arising betweenthe parties as to the interpretation, performance orapplicability of any term or provision of thisagreement, such issue shall be submitted to anArbitrator.

2. (a) The parties agree to a panel ofArbitrators consisting of:

Robert Herzog, Howard Edelman, Roger Maher, Randi Lowitt andRay Fleishman.

Arbitrators shall be appointed in rotation.

(b) Either of said arbitrators may be ter-minated by either party upon thirty (30) daysnotice to the other party. If all of the Arbitratorsare so terminated and the parties are unable toagree upon substitute Arbitrators, pending mat-ters shall be submitted to the New York StateEmployment Relations Board.

3. The Procedure herein outlined withrespect to matters over which the Arbitrators havejurisdiction shall be the sole and exclusivemethod for the determination of all such issues,and the Arbitrator shall have the power to awardappropriate remedies, the award of the Arbitratorbeing final and binding upon the parties, and theemployee or employees involved; providing,however that nothing herein shall be construed to

20

forbid either party from resorting to court forrelief from, or to enforce rights under, any arbitra-tion award. In any proceeding to confirm theaward of the Arbitrator, service may be made byregistered or certified mail, within or without theState of New York, as the case may be.

4. Should either party fail to abide with anarbitration award within two (2) weeks after suchaward is sent by registered or certified mail to theparties, either party may, in its sole and absolutediscretion, take any action necessary to securesuch award including, but not limited to, suits atlaw. Should either party take such suit it shall beentitled, if it succeeds, to receive from the otherparty all expenses for counsel fees and court costs.

ARTICLE VII

Building Acquisition by Public Authority

Where a building is acquired by a publicauthority of any nature through condemnation,purchase or otherwise, the last owner shall guar-antee the payment of accrued vacations due to theemployees up to the date of transfer of title andtermination pay to the same date. TerminationPay, in this provision, shall include wages andfringe benefits. It is understood that the Unionwill, however, seek to have such public authorityassume the obligations for the payment of suchaccrued vacation and/or termination pay. Ifunsuccessful, and the last owner becomes liablefor such payments, the amounts thereof shall be

21

liens upon any condemnation award or on anyamount received by such last owner.

ARTICLE VIII

Saving Clause

If any provision of this agreement shall beheld to be illegal or of no legal effect, said provi-sion shall be deemed null and void without affect-ing the obligations of the balance of the contract.

Both parties agree to construe any provisionsheld to be contrary to law as closely to its bar-gained for purpose permissible by law and toagree on a revised draft of such provisions that asclose as legally possible mirrors and/or achievesthe purpose of such an invalidated or unenforce-able provision. All disputes under the savingsclause, including proposals for and the content ofany substitute provision, are subject to grievanceand arbitration (Articles V and VI).

ARTICLE IX

Complete Agreement

Except as the parties may otherwise mutual-ly agree, and except as set forth below, it is agreedthat during the lifetime of this agreement thereshall be no demands for collective bargainingnegotiations, as to any matter or issue not coveredby the provisions of this agreement, or for therenegotiation of any of the provisions of thisagreement.

22

ARTICLE X

Term of Agreement

1. This agreement shall continue in full forceand effect up to and including December 31,2014. The parties shall enter into direct negotia-tions looking toward a renewal agreement at leastsixty (60) days before the expiration date.

2. If fifteen (15) days before the expiration ofthis agreement the parties shall not have been ableto agree upon the terms of their new agreement,both parties will thereupon confer with the NewYork State Employment Relations Board for thepurpose of conciliating their differences.

ARTICLE XI

Employer Fund Contributions

1. Health and Benefits: (a) EffectiveJanuary 1, 2011, the Employer shall contributesix dollars and ninety cents ($6.90) for each hourpaid to an employee (except for sickness contri-butions and benefits) covered by this agreementto the Local 94-94A-94B Health and BenefitFund for coverage of the employee and his/herdependent family with welfare benefits providedthrough said Fund.

(b) Effective January 1, 2012, theEmployer shall contribute seven dollars andtwenty cents ($7.20) per hour for each hour paidto an employee (except for sickness contributionsand benefits) covered by this agreement to the

23

Local 94-94A-94B Health and Benefit Fund forcoverage of the employee and his/her dependentfamily with welfare benefits provided throughsaid Fund.

(c) Effective January 1, 2013, theEmployer shall contribute seven dollars and fiftycents ($7.50) per hour for each hour paid to anemployee (except for sickness contributions andbenefits) covered by this agreement to the Local94-94A-94B Health and Benefit Fund for cover-age of the employee and his/her dependent fami-ly with welfare benefits provided through saidFund.

(d) Effective January 1, 2014, theEmployer shall contribute seven dollars andeighty cents ($7.80) per hour for each hour paidto an employee (except for sickness contributionsand benefits) covered by this agreement to theLocal 94-94A-94B Health and Benefit Fund forcoverage of the employee and his/her dependentfamily with welfare benefits provided throughsaid Fund.

(e) In addition, the parties shall recom-mend to the Trustees of the Local 94 Health andBenefit Funds that modifications be made toimprove administration and the general financialcondition of the Fund including, but not limited to:

i. Mandatory use of generic drugs

ii. Creation of a Dental PPO to replace the current Dental Indemnity Plan

24

iii. Creation of a disease management program (including, but not limited to, diabetes)

iv. Other cost saving measures

(f) If, as of January 1, 2012 or thereafter,the Trustees of the Health Fund find the paymentprovided herein insufficient to maintain the bene-fits then in existence based on the contributionrate, they may, provided benefits added duringthe term of the agreement, if any, were actuarial-ly sound, in such emergency situations before thetermination of this Agreement, adjust benefits toa level sustainable by the current negotiated con-tribution rate and/or require that additionalmonies be transferred from wages in the maxi-mum amount of twenty percent (20%) (but in noevent more than five cents ($0.05) per hour) ofthe needed amount, with the Employer makingthe additional contribution of a maximum ofeighty percent (80%) (but in no event more thantwenty cents ($0.20) per hour) of the neededamount (which in total cannot exceed twenty-fivecents ($0.25) per hour with the Employer andemployee contributions combined), in order tofund the Health Fund at a sufficient level. TheTrustees shall notify the bargaining parties howmuch money is needed within these parameters.

(g) The parties agree that if the recentlypassed healthcare reform legislation or any futuregovernmental healthcare reform legislationrequires (i) any payment by contributing

25

Employers for some or all of the benefits alreadyprovided for in the Health Fund to participants, or(ii) any contributing Employers to pay any exciseor other tax, penalty (including assessable pay-ments), fee or other amount relating to or result-ing from the eligibility requirements of, or thelevel of benefits provided by the Health Fund orotherwise relating to the Health Fund, the partiesshall meet as soon as practicable thereafter to dis-cuss what actions are appropriate to eliminate anyadverse impact that such payments, excise orother tax, penalty (including assessable pay-ments), fee or other amount has on the HealthFund, its participants and the contributingEmployers.

2. Pension: (a) Effective January 1, 2011, theEmployer shall contribute three dollars and fifteencents ($3.15) per hour for each hour paid to anemployee (except for sickness contributions andbenefits) covered by this agreement to the CentralPension Fund of the International Union ofOperating Engineers and Participating Employersfor retirement benefits for the employee.

(b) Effective January 1, 2012, theEmployer shall contribute three dollars and twen-ty-five cents ($3.25) per hour for each hour paid toan employee (except for sickness contributions andbenefits) covered by this agreement to the CentralPension Fund of the International Union of Oper -ating Engineers and Participating Employers forretirement benefits for the employee.

26

(c) Effective January 1, 2013, the Employershall contribute three dollars and thirty-five cents($3.35) per hour for each hour paid to an employ-ee (except for sickness contributions and benefit)covered by this agreement to the Central PensionFund of the International Union of OperatingEngineers and Participating Employers for retire-ment benefits for the employee.

(d) Effective January 1, 2014, the Employershall contribute three dollars and forty-five cents($3.45) per hour for each hour paid to an employ-ee (except for sickness contributions and benefit)covered by this agreement to the Central PensionFund of the International Union of OperatingEngineers and Participating Employers for retire-ment benefits for the employee.

(e) To the extent that during the term of thisAgreement, any contributing Employer becomessubject to the automatic employer surchargeunder Section 432 of the Internal Revenue Codeof 1986, as amended (“Code”) or any excise tax,penalty, fee or other amount relating to the fund-ing of the Pension Fund including without limita-tion those under Section 4971(g) of the Code(collectively “Surcharge/Penalty Amounts”), thenthe parties agree to meet as soon as practicablethereafter to discuss what actions are appropriateto eliminate any adverse impact that suchSurcharge/Penalty Amounts may have on thecontributing Employers.

27

3. The above provisions relating to Healthand Benefit and Pension contributions will notapply in cases where the Employer presently pro-vides benefits determined by the Trustees of theWelfare or Pension Funds to be at least equivalentof those provided by such Funds. The discretionof the Trustees as to such equivalency shall not bearbitrable under this agreement.

4. Annuity (a) Effective January 1, 2011, theEmployer shall contribute three dollars and fortycents ($3.40) per hour for each hour paid to anemployee (except for sick pay contributions andbenefits) covered by this agreement to the Local94-94A-94B Annuity Fund.

(b) Effective January 1, 2012, theEmployer shall contribute three dollars and fiftycents ($3.50) per hour for each hour paid to anemployee (except for sick pay contributions andbenefits) covered by this agreement to the Local94-94A-94B Annuity Fund.

(c) Effective January 1, 2013, theEmployer shall contribute three dollars and sixtycents ($3.60) per hour for each hour paid to anemployee (except for sick pay contributions andbenefits) covered by this agreement to the Local94-94A-94B Annuity Fund.

(d) Effective January 1, 2014, theEmployer shall contribute three dollars and sev-enty cents ($3.70) per hour for each hour paid toan employee (except for sick pay contributions

28

and benefits) covered by this agreement to theLocal 94-94A-94B Annuity Fund.

5. The Employer shall continue to contributeto the Health Benefit, Annuity, Sick Pay andTraining funds during the illness or injury of aregular full time employee who has beenemployed within the bargaining unit covered bythis or a predecessor agreement on the basis ofone (1) month’s contribution for each year ofservice within the industry with a minimum offour hundred (400) hours and a maximum ofeight hundred (800) hours contribution.

6. In the case of an illness or injury of a reg-ular full time employee who has been employedwithin the bargaining unit covered by this or apredecessor agreement, the Employer shall con-tribute to the Central Pension Fund sufficientfunds to ensure that the total year-end contribu-tions are at least equivalent to one thousand(1000) hours contribution for said year, providedsuch contributions are permitted by the CentralPension Fund and under applicable law.

7. Sick Pay: (a) For employees who are paidfor one hundred (100) hours or more during anycalendar month, and who have been employedwith substantial continuity for one (1) year ormore in any building signatory to this agreement(whether a member of the R.A.B. or not), theEmployer shall, effective January 1, 2011, con-tribute one dollar and twenty-five cents ($1.25)per hour for engineers and ninety one cents ($.91)

29

per hour for helpers for each hour paid duringsuch calendar month.

Effective January 1, 2012, the Employershall contribute one dollar and twenty-eight cents($1.28) per hour for engineers and ninety-threecents ($.93) per hour for helpers for each hourpaid during the calendar month.

Effective January 1, 2013, the Employershall contribute one dollar and thirty-three cents($1.33) per hour for engineers and ninety-sixcents ($.96) per hour for helpers for each hourpaid during the calendar month.

Effective January 1, 2014, the Employershall contribute one dollar and forty cents ($1.40)per hour for engineers and one dollar and twocents ($1.02) per hour for helpers for each hourpaid during the calendar month.

For employees in pay scales other than scalehelpers or scale engineers the contribution rate forsick pay shall be computed on the followingbasis:

(Hourly Rate x 8 hours ÷ 173-.30) = HourlySick Pay Contribution

No contribution shall be made for employeeswho do not receive pay for at least one hundred(100) hours during any calendar month.

(b) An employee who is absent fromwork by reason of illness shall be entitled to draweight (8) hours pay for each full day of work

30

absent from the job due to illness up to the num-ber of paid hours credited to his/her account.Benefits from such fund shall be payable to theemployee in accordance with the rules and regu-lations of the Fund.

(c) Employees with unused sick paycredit at the end of each calendar year may carrysaid credit forward to the following year.

(d) Sick pay contributions and benefitsshall not be considered hours paid for the purpos-es of fringe benefit contributions.

(e) If an employee changes his/heremployment during a calendar month, the Em -ployer on whose payroll he/she is carried on thelast day of the month shall be responsible to paythe sick pay contribution for that month to whichthe employee is entitled. Hours worked for allemployers during that month shall be countedtoward the required one hundred (100) hours. Theresponsibility of a current Employer for sick payshall continue regardless of the number of times anemployee with sufficient seniority changes jobs.

7. Training: (a) Effective January 1, 2011,the Employer shall contribute the amount oftwenty-one cents ($.21) per hour paid peremployee (except for sick pay contributions andbenefits) covered by this agreement to the Local94-94A-94B Training Fund which shall bepayable on the same schedule as Health FundContributions.

31

Effective January 1, 2013 the Employer willcease to contribute to the Local 94-94A-94BTraining Fund.

(b) Employees newly hired in the indus-try shall be required to attend and participate inthe Training Program. Such employees shall havea starting rate of pay of seventy percent (70%) ofthe then current Helper minimum rate. Such start-ing rate shall be increased by five percent (5%)for each six (6) months of employment, providedthat such employee successfully continues in theTraining Program, until such employee reachesthe contract minimum rate.

(i.e.,) after six (6) months = seventy-five(75%) of helpers rate

after twelve (12) months = eighty percent (80%) of helpers rate

after eighteen (18) months = eight-fivepercent (85%) of helpers rate

after twenty four (24) months = ninetypercent (90%) of helpers rate

after thirty (30) months = ninety-five(95%) of helpers rate

after thirty six (36) months = one hundred percent (100%) of helpers rate

The employee must present a certificate ofsatisfactory participation or completion of theTraining Program in order to be eligible for eachstep increase.

32

An employee hired after January 1, 2011,shall attain a New York City certificate of qualifi-cation for refrigerating system operator withintwo years of completing the training program,and shall be available for any engineer position atany location and for any available shift with hisEmployer. Upon earning such certificate, theEmployer will consider the employee for an engi-neer’s position. In the event that no such positionis available or provided, then the employee shallbe paid a one-time payment of $250 upon presen-tation of his/her certificate to the Employer.

(c) Any employee who leaves or is ter-minated from the Training Program shall be ter-minated by the Employer. Such employees shallnot have recourse to the Grievance andArbitration provisions of the contract with respectto such termination.

(d) The parties hereto and the TrainingProgram shall establish criteria for admission tothe program and criteria for advanced standing inthe program. If employees are granted advancedstanding, their wage rate shall reflect suchadvanced standing.

(e) The duration of the Training Pro -gram shall be set by the Trustees of the TrainingFund, but shall not be less than thirty-six (36)months.

(f) There shall be an established proce-dure for a pre-employment physical examination

33

program for all newly hired employees. Suchexamination shall include but not be limited tourine and blood tests. The test results must besubmitted to the Training Fund for evaluation asto the eligibility of an employee to participate inthe Training Program. The RAB and the Unionshall determine the methodology for such pre-employment physicals.

(g) Employees who are hired as summerhelpers between the periods of April 15 throughOctober 15 shall be paid seventy percent (70%)of the regular helper rate and shall not be entitledto any benefit fund contributions. If such summerhelpers are continued beyond October 15 as reg-ular employees, they shall receive benefit fundcontributions as of October 15 and time credittoward the thirty-six (36) month start rate in para-graph (b), above, from the date of employment asa summer helper for that year.

8. Contributions to the Health and Benefit,Pension, Annuity, Training and Sick Pay Fundsshall be made on a monthly basis and shall bepaid by the end of the succeeding month. TheEmployer agrees to use the lawful forms suppliedby the Fund.

9. If the Employer fails to make the requiredpayments to any of the Funds, as set forth above,or fails to file required reports, the Trustees may,in their sole and absolute discretion, take anyaction necessary, including, but not limited to,immediate arbitration and suits at law, to enforce

34

such payments and reports, and in any such actionor proceeding shall be entitled to receive interestat the rate of one and one-half percent (1.5%) permonth and liquidated damages at the rate of onepercent (1%) per month (total of two and one halfpercent (2.5%) per month) on unpaid contribu-tions, except that interest only shall be chargedfor defaults of less than thirty (30) days, includingany and all expenses of collection, such as coun-sel fees, arbitrator’s costs, arbitration fees andcourt costs.

ARTICLE XII

General Clauses

1. Disability Benefits Law: (a) TheEmployer agrees to cover the employees underthe New York State Disability Benefits Law on anon-contributory basis, whether or not such cov-erage is required by law.

(b) The Employer will cooperate withemployees in the processing of their claims andany violation by the Employer, including but notlimited to the posting of notices or furnishing offorms, shall be subject to grievance and arbitration.

2. Unemployment Insurance Law: Theemployer agrees to cover the Employees underthe New York State Unemployment InsuranceLaw, whether or not such coverage is requiredby law.

35

3. Vacations: (a) Every employee employedwith substantial continuity in any building signa-tory shall receive each year a vacation with pay asfollows (where an Employer transfers an employ-ee from another building and the employee agreesto such transfer, length of service for the purposeof vacation entitlement shall be measured aslength of service with the Employer):

Employees who have worked for:

Six (6) months . . . . . . . . . . . three (3) daysOne (1) year . . . . . . . . . . . . . ten (10) daysFive (5) years . . . . . . . . . . . . fifteen (15) daysFifteen (15) years . . . . . . . . twenty (20) daysTwenty-one (21) years . . . . twenty-one (21) daysTwenty-two (22) years . . . . twenty-two (22) daysTwenty-three (23) years . . . twenty-three (23) daysTwenty -four (24) years . . . twenty-four (24) daysTwenty-five (25) years . . . . twenty-five (25) days

(b) Length of employment for the pur-pose of the foregoing schedule shall be computedon the basis of the amount of vacation that anemployee would be entitled to on September 15of the year in which the vacation is given. Onlyactual working days shall count as part of theallowed vacation and regular days off and holi-days falling during the employee’s vacation peri-od, the employee shall receive an additional day’spay therefore or, at the option of the Employer, anextra day off within ten (10) days immediatelypreceding or succeeding the employees’ vacationperiod.

36

(c) Vacation wages shall be paid at therate of pay in effect when the vacation is givenand paid prior to the vacation period unless other-wise requested by the employee.

(d) Employees are entitled to actualvacations and no employee shall be required toaccept money in lieu of his vacation.

(e) The vacation period shall be May 1,through April 30 each year.

(f) Employees shall be entitled to takevacation at any time during the year providedsuch vacation time is compatible with the properoperation of the building and no more than two(2) weeks may be taken between April 15 andOctober 15.

If an employee is to be denied a vacation dur-ing the April 15 and October 15 period because oflack of compatibility with the operation of thebuilding, the Employer shall inform the employeeand the Union no later than April 15 or two (2)weeks after the vacation request. Such denial shallbe subject to grievance and arbitration.

(g) Choice of vacation periods shall be according to building seniority in the job classification.

(h) Any employee leaving his/her jobfor any reason shall be entitled to a vacationaccrual allowance computed on his/her length ofservice as provided in the vacation schedule set

37

forth above based on the elapsed period from theprevious September 16th (or from the date ofemployment if later employed) to the date ofhis/her leaving; provided, however, that anyemployee who has received a vacation during theprevious year and who leaves his/her job afterApril 15th under circumstances which entitlehim/her to vacation accrual rights, shall be enti-tled to full vacation accrual allowances instead ofon the basis of the elapsed period from the previ-ous September 16th.

Any employee who is employed morethan six (6) months but less than one (1) year asof the date of termination shall receive three (3)days vacation pay, unless already taken.

(i) No employee who leaves his/herposition of his/her own accord shall be entitled tohis/her accrued vacation credit unless he/shegives two (2) week’s termination notice to theEmployer, in writing.

(j) The Employer will pay any accumu-lated unpaid vacation to the designated benefici-ary or the estate of a deceased employee.

4. Transferring Employees: (a) Anemployee who has been employed with substan-tial continuity for one (1) year or more in anybuilding signatory to this agreement (whether amember of the R.A.B. or not) will receive creditfor one (1) year’s service for the purpose of com-puting vacation pay eligibility in the event that

38

39

such employee changes his/her employment to adifferent building.

(b) An employee who has beenemployed with substantial continuity for five (5)years or more in any building signatory to thisagreement (whether a member of the R.A.B. ornot) will receive credit for five (5) years’ servicefor the purpose of computing vacation pay eligi-bility in the event that such employee changeshis/her employment to a different building, andshall be treated as having five (5) years service atthe building for the purpose of determining futurevacation entitlements. Provided, however that ifan employee changes his/her job on or after April15th, of any calendar year, with proper termina-tion notice, the original Employer shall be respon-sible for the payment of a full year’s vacation.

(c) An employee who has beenemployed with substantial continuity for one (1)year or more in any building signatory to thisagreement (whether a member of the R.A.B ornot) who changes employment to a differentbuilding, will receive credit for one (1) year’sservice for the purpose of determining eligibilityfor a medical check-up leave.

(d) For the purposes of this Article,“substantial continuity” shall mean less than one(1) month’s break in continued service for eachtwo (2) years of continued membership in theUnion. This rule will be waived in the event of a

break in service caused by illness covered byDisability Benefits, accident covered underWorkers Compensation Insurance, or providedthe employee is receiving UnemploymentCompensation.

5. Leave of Absence: (a) Once during theterm of this agreement upon written applicationto the Employer and the Union, a regular full-time employee who has been employed in thebuilding for five (5) years or more shall be grant-ed a leave of absence not to exceed six (6)months, subject to an extension for a period not toexceed six (6) months, in case of bona fide illnessor injury, whether or not covered by the NewYork State Workers Compensation Law. Whensuch employee is physically and mentally able toresume work, he/she shall on one (1) week’s priorwritten notice to the Employer, be then employed,with no loss of seniority.

(b) Once every five (5) years, upon six(6) weeks’ written application to the Employer, aregular full-time employee who has beenemployed in the building for five (5) years or moreshall be granted a leave of absence for personalreasons not to exceed two (2) months. Upon theemployee’s return to work, he/she shall be reem-ployed with no loss of seniority. Personal leave ofabsence shall not be used for the purpose of seek-ing or engaging in other employment and anyemployee so doing will be subject to termination.

40

(c) Any leave taken pursuant to any gov-ernment regulation shall be deemed to be a leaveunder this Section, except in cases of demonstra-ble undue hardship.

6. Holidays: (a) The following is the sched-ule of holidays:

2011:

New Year’s Day Labor Day(oberserved) (Sept. 5)(Dec. 31, 2010)

Memorial Day Thanksgiving Day(May 30) (Nov. 24)

Independence Day Christmas Day(July 4) (Dec. 26)

2012:

New Year’s Day Labor Day(Jan. 2) (Sep. 3)

Memorial Day Thanksgiving Day(May 28) (Nov. 22)

Independence Day Christmas Day(July 4) (Dec.25)

2013:

New Year’s Day Labor Day(Jan. 1) (Sept. 2)

Memorial Day Thanksgiving Day(May 27) (Nov. 28)

41

Independence Day Christmas Day(July 4) (Dec. 25)

2014:

New Year’s Day Labor Day(Jan. 1) (Sept. 1)

Memorial Day Thanksgiving Day(May 26) (Nov. 27)

Independence Day Christmas Day(July 4) (Dec. 25)

In addition, there shall be six (6) floating hol-idays per year. Said holiday may be taken by anemployee upon ten (10) days’ notice to theEmployer provided that no more than one (1)employee per building takes off on a particularday as the floating holiday. In buildings employ-ing more than twelve (12) members of Local 94-94A-94B, more than one (1) employee may takea floating holiday on a particular day providedthat employee selections do not result in a reduc-tion of Local 94-94A-94B employees below sev-enty-five percent (75%) of the normal work staff,by classification.

(b) Employees shall receive idle pay attheir regular straight-time hourly rates for the nor-mal eight (8) hour working day not worked. Anyemployee who is required to work on a holidayshall receive in addition to the idle pay abovementioned, premium pay at the rate of time and

42

one half (1½ x) his/her regular straight timehourly rate of pay for each hour worked, with aminimum of four (4) hours’ premium pay. Anyemployee who is required to work on a holidaybeyond eight (8) hours shall continue to receivethe compensation above provided for holidaypay, namely idle pay at his/her regular straight-time hourly rate plus premium pay at time andone half (1½ x) the employees regular straight-time rate.

(c) Any regular full-time employee whoshall be ill during the period in which a contractholiday falls shall be entitled to holiday pay orcorresponding time off if the employee worked atleast one (1) regular scheduled day during theemployee’s five (5) working days immediatelypreceding or succeeding the holiday.

(d) Any regular full-time employeewhose regular day off, or one of whose regulardays off falls on a holiday, shall receive an addi-tional days’ pay there-for, or at the option of theEmployer, shall receive an extra work day offwithin ten (10) days immediately preceding orsucceeding the holiday. If the employee receivesan extra day off before the holiday and his/heremployment is terminated for any reason whatev-er, he/she shall not be required to compensate theEmployer for that day.

(e) Employees newly hired in the indus-try, during their first year of employment, shall

43

receive floating holidays based on an accrual ofone (1) holiday for each three (3) months ofemployment and three (3) holidays in the lastquarter of the calendar year.

(f) Employees with substantial continu-ity in the industry who change Employers will bepaid for all accrued, unused floating holidays bytheir terminating Employer, based on the sched-ule in the preceding paragraph.

(g) The Employer on whose payroll anemployee is on the last day of the calendar quar-ter shall be responsible for the payment of theaccrued, unused floating holiday for such quarter.

(h) It is the intention of the parties thatemployees with substantial continuity in theindustry shall receive six (6) floating holidays,but no more than six (6) floating holidays in eachcalendar year.

(i) Employees who have not used theirfloating holidays by the end of the calendar yearshall be paid one (1) days’ pay for each unusedday at the rate in effect for the year in which theholiday was earned.

(j) Payment for unused floating holi-days shall be made as soon as possible afterDecember 31.

7. Election Day: Employees who are eligi-ble to vote shall be permitted two (2) hours off tovote on Election Day if they are unable to vote

44

during non-working hours. Employees shall givelegal notice of such intention and such hours areto be designated by the Employer, while the pollsare open.

8. Family Death: A regular full-timeemployee with at least one (1) year of employ-ment in the industry shall be granted bereavementleave following the death of his/her parent, broth-er, sister, spouse, child, father-in-law or mother-in-law, or grandparent and shall be paid his/herregular straight-time wages for any of such three(3) days on which he/she was regularly scheduledto work, or entitled to holiday pay. Such leaveshall be either the day of the funeral and the two(2) days immediately preceding the funeral, or theday of the funeral and the two (2) days immedi-ately following the funeral, at the option of theemployee.

9. Medical Check-Up: Every regular full-time employee employed in the industry for atleast one (1) year shall be entitled, upon one (1)week’s notice to the Employer, to take one (1) dayoff in each calendar year at straight time pay tovisit a diagnostic clinic operated by the WelfareFund under which the employee is covered or, ifnone, to visit such other clinic or physician of theemployees’ choice for reason of medical check-up. To receive payment for such day, the employ-ee shall exhibit a signed statement from the clin-ic or physician. If the examining physicianrequires a follow-up visit, in writing, the employ-

45

ee shall be entitled to an additional day off atstraight time rates.

10. Reducing Force: In reducing force,Employers are required, in addition to theiraccrued vacation credits and termination pay, ifany, to give employees who have been employedfor one (1) year at least two (2) weeks notice oflay-off or discharge, or in lieu thereof, an addi-tional two (2) weeks pay. In addition, except fornormal or routine reduction, the Union and theRAB shall be given at least one (1) week’sadvance written notice.

11. Jury Duty: An employee performingjury duty shall receive his/her full pay less juryduty compensation, not more than once in anytwo (2) year period.

12. Termination Pay: (a) In case of termi-nation of employment because of the employee’sphysical or mental inability to perform his/herduties or from reduction of force, the employeeshall receive, in addition to accrued vacationcredits, termination pay according to the employ-ee’s years of service in the building on the follow-ing basis:

Employees with

Five (5) and less than ten (10) years ................ one (1) weeks’ pay

Ten (10) and less thantwelve (12) years .......... two (2) weeks’ pay

46

Twelve (12) and less thanfifteen (15) years ....... three (3) weeks’ pay

Fifteen (15) and less thanseventeen (17) years ...... six (6) weeks’ pay

Seventeen (17) and less thantwenty (20) years ....... seven (7) weeks’ pay

Twenty (20) and less thantwenty five (25) years .. eight (8) weeks’ pay

Twenty-five (25) years or more ......................... ten (10) weeks’ pay

(b) An employee who is physically ormentally unable to perform his/her duties mayresign and receive the above termination pay pro-vided the employee submits satisfactory evidenceof such inability. In the event the Employer doesnot deem the evidence satisfactory, such questionmay be submitted to grievance and arbitration.

(c) The right to accept termination payand resign where there has been a reduction inforce shall be determined by seniority, i.e. in theevent of a reduction of force, notice is to be post-ed in the engine room prior to the effective date.If no senior employee wishes to exercise his/herrights under this provision, the least senioremployee or employees shall be terminated.

13. Change of Employer: In the event of achange of Employers in a building the RAB shalluse its best efforts to have the succeeding

47

Employer join the RAB and become bound to theterms of this agreement.

The Employer shall, if possible, give theUnion at least twenty (20) days advance notice ofany change of Employer in the building.

In the event an Employer terminates anemployee or employees as a direct result of thesale or transfer of a building and has not requiredthe purchaser or transferee to hire the existingemployees and continue the wages, terms andconditions in effect at the time of said sale ortransfer, the terminated employee(s) shall receivefrom such terminating Employer severance payin the amount of three (3) month’s pay, along withAnnuity Fund and Pension Fund contributions, inaddition to any other accrued payments due underthis Agreement. The terminating Employer shallalso cover terminated employees under theHealth Fund for up to three (3) months at forty(40) hours per week or until such employeeobtains coverage from a new job, whichever isless. If the existing or new Employer places thedisplaced employee in a comparable positionwith the same or new Employer, Managing Agentor employing entity the foregoing obligationsshall not apply.

14. Pyramiding: In no event shall there beany pyramiding of overtime pay, holiday pay orany other premium pay. Where more than one ofthe aforesaid overtime, holiday or other premium

48

pay are applicable, then compensation shall becomputed on the basis giving the greater amount.

15. Trial Period: All newly hired employeesin the industry shall have a sixty (60) day trialperiod.

16. Seniority: (a) The Employer agrees inprinciple that senior employees may pick theirshifts provided it is practical or possible withoutimpairing the efficiency of the work or the opera-tion of the building.

(b) Choice of vacations shall be grantedon the basis of seniority.

(c) For the purpose of lay-offs, decreaseof the working force and recall to work ofemployees who have been laid off, considerationshall be given to the employee’s length of servicein the particular classification of work and to theemployee’s ability to perform the work involved.Where factors other than length of service are rel-atively equal, an employee with the greatestlength of service shall be given preference.

17. Sanitary Arrangements: Adequate san-itary arrangements for employee shall be main-tained in every building, and an individual lockerand key thereto and rest room key, where restroom is provided, shall be furnished by theEmployer for the use of every employee. Soap,towels and washing facilities shall be supplied bythe Employer for all employees.

49

18. Uniforms and Other Apparel: Uni -forms and/or overalls, where necessary for the job,shall be supplied and maintained by the Employer.In addition the Employer will pay to the employ-ees within ten (10) days of receipt of proof of pur-chase of safety shoes that meet the AmericanNational Standards Institute Code Z-41, up to onehundred dollars ($100.00) per year for such shoes.The Employer may require the employee to wearsaid work shoes after payment.

19. First Aid Kit: An adequate and com-plete first aid kit shall be supplied and maintainedby the Employer in a place readily available to allEmployees.

20. Bulletin Board: A bulletin board shall befurnished by the Employer for Union announce-ments and notices of meetings.

21. Emergency Calls: (a) When on emer-gency call, employees shall be reimbursed for allloss of personal effects on such call.

(b) Loss of personal effects on such callshall include losses while traveling to and fromsuch emergency call in excess of insured losses.

22. Union Insignia: Employees may wearthe Union insignia while on duty.

23. Fire Safety Plan: (a) Employees whoserve as fire safety directors shall be paid the sumof fifteen dollars ($15.00) per week in addition to

50

their normal wage for performing such duties andholding a certificate of qualification from theNew York City Fire Department. If any employ-ee currently performs such duty and receives adifferential of more than fifteen dollars ($15.00)per week, said employee shall continue to receivethe higher amount. Employees who serve as firesafety directors shall do so on a voluntary basisand not as a condition of employment. The Unionand the Employer shall cooperate in attempting toachieve the needs of the job site.

(b) Separate and independent from theprovisions of subsection (a) above, in the sole andcomplete discretion of an Employer, for exampleif and when the law (including, without limitationthe New York City Fire Code, or other applicableregulation) requires a New York City certificateof qualification for refrigerating system operatorto be assigned as a Fire Safety/Emergency ActionSafety Plan Director (“FSD/EAP”), the separatefull time position of FSD/EAP shall be createdunder this Agreement, and shall be so recognizedby the RAB and its member Employers. If anEmployer chooses to fill the FSD/EAP position,the wages and benefits for FSD/EAP shall be setby the Employer, the RAB and the Union specif-ic to the site and job. This new position is sepa-rate and apart from the engineering operations ofthe building. No Employer can require anemployee to accept the FSD/EAP position, andthe employee must do so on a voluntary basis, at

51

the time of hire to that position. In the event thatthis becomes a Local 94 position, the contractexpiration date for this position shall be ninety(90) days after the expiration of this agreement.

24. Employment and Discrimination: (a)No employee shall be employed through feecharging agencies except where the Employershall pay the full amount of the fee.

(b) There shall be no discriminationagainst any present or future employee by reasonof race, creed, color, age, disability, national ori-gin, sex, union membership or any characteristicprotected by law, including, but not limited to,claims made pursuant to Title VII of the CivilRights Act, the Americans with Disabilities Act,the Age Discrimination in Employment Act, 42U.S.C. § 1981, the Family and Medical LeaveAct, the New York State Human Rights Law, theNew York City Human Rights Code, or any othersimilar laws, rules or regulations. All claimsalleging illegal discrimination under any of theabove authorities shall be subject to theAgreement’s grievance and arbitration procedureas the final, binding, sole and exclusive remedyfor such violations, and employees covered bythis Agreement shall not file suit or seek relief inany other forum. This provision shall apply toallegations arising out of events occurring beforeand/or after the effective date of this Agreement.Arbitrators shall apply applicable law as it would

52

be applied by the appropriate court in renderingdecisions on discrimination claims.

25. Tools: All tools, uniforms or other appar-el necessary for the job shall be furnished by theEmployer.

Employees shall be responsible for the lossof any hand tools issued to them by the Employer,provided that the Employer provides a securedlocker facility for the storage of such toolsbetween use.

26. Hazardous Work: (a) Where a claim ismade that work is hazardous, determination ofthe question shall be left to the Chief Engineer orManagement Representative and Shop Stewardof the building and, in the event they fail to agree,the matter shall be determined through the griev-ance and arbitration procedures. The Union andthe RAB shall appoint an equal number of repre-sentatives, between six (6) and ten (10) in total, toa Labor Management Committee, which shall beknown as the “Industrial Safety Committee.”

(b) In accordance with the requirementof the Occupational Safety and Health Act of1970, it shall be the exclusive responsibility of theEmployer to insure the safety of its employeesand compliance by them with any safety rulescontained herein or established by the Employer.Nothing in this agreement will make the Unionliable to any employees or to any other persons inthe event that injury or accident occurs.

53

27. Legal Assistance: The Employer shallsupply legal assistance where required to employ-ees who are served with summons regardingbuilding violations.

28. Family and Medical Leave Act: Theparties agree to comply with the Family andMedical Leave Act to the extent required by law.Leaves under this Agreement and/or the Familyand Medical Leave Act shall not pyramid.

29. Job Definitions: (a) Chief Engineer: Todirect the operation of employees in the bargain-ing unit in the performance of their duties. Thisdoes not preclude the Chief Engineer from stand-ing watch and performing manual duties consis-tent with the work performed by the employeesunder his direction.

(b) Assistant Chief Engineer: To assistthe Chief Engineer in the performance of his/herduties.

(c) Engineer: Operating, maintainingand repairing heating, ventilating and air condi-tioning equipment and other equipment inciden-tal to the operation of the building as directed bymanagement.

(d) Mechanic: By training and experi-ence possesses a certain amount of mechanicaltechnical skill that enables him/her to functionindependently of an engineer more than fifty per-cent (50%) of his/her time.

54

(e) Helpers: Assist the engineer and/ormechanic in the performance of their duties, andperform tasks appropriate to his/her skill leveloutside the presence of an engineer/mechanic as directed by management and/or engi-neers/mechanics. The parties recognize that man-agement’s hiring and use of helpers is essential tothe industry’s successful future. The position ofhelper is designed to be a step on the path tobecoming an engineer. Hence, after January 1,2011, it is the parties’ intent that the helper classi-fication will not be available to newly hiredhelpers on a “career” basis, except on the mutualconsent of the Employer and Union.Helpers:Assist the engineer and/or mechanic in the per-formance of their duties.

(f) Fire Safety/Emergency ActionSafety Plan Director (“FSD/EAP”) performs theduties and responsibilities as required by theapplicable sections of the New York City FireCode and/or other applicable laws or regulations,and any other related duties and responsibilitiesas directed by an Employer in its sole and com-plete discretion. The Employer shall hold theemployee harmless for any non-compliance,except in cases of that employee’s recklessness orgross negligence.

(g) The above classifications are intend-ed to describe the existing practices in the industry.

55

30. Substance Abuse Testing: The Em -ployer is permitted to test applicants and/oremployees for substance abuse, in accordancewith applicable law, at the time of hire or at thetime a new Employer takes over the owner-ship/management of a building/facility. No appli-cant and/or employee may refuse to submit to theabove described medically accepted substanceabuse testing. If an applicant and/or employeerefuses such testing or if the test result shows sub-stance abuse, the Employer may terminate suchemployee. If such termination is submitted toarbitration and the arbitrator determines that therewas a refusal or that a test showed substanceabuse, the arbitrator may not modify the dis-charge penalty.

31. Security Background Checks: Allapplicants and/or employees shall be subject tosecurity background checks at the time of hire orat the time a new Employer takes over the owner-ship/management of a building/facility. An appli-cant and/or employee shall cooperate with anEmployer as necessary for obtaining securitybackground checks. Any applicant and/oremployee who refuses to cooperate shall be sub-ject to termination. Applicants and/or employeeswho fail such security background checks shallbe subject to termination.

For the purpose of this provision, just causeto terminate an applicant and/or employee who

56

has failed a security background check existsonly if it is established that one or more of thefindings of the background security check isdirectly related to his/her job functions or respon-sibilities, or that the continuation of, or future,employment would involve an unreasonable riskto property or to the safety or welfare of specificindividuals or the general public or constitute aviolation of any applicable governmental rule orregulation.

57

ARTICLE XIII

Assents

The Union and the RAB will cooperatein facilitating the collection of assents and theCentral Pension Fund Participating Agreements.

In witness whereof, the parties have heretoset their hands and seals.

_____________________________

INTERNATIONAL UNION OFOPERATING ENGINEERSLOCAL 94-94A-94B, AFL-CIO

By: Kuba J. BrownPresident and Business ManagerDated: January 3, 2011

_____________________________

REALTY ADVISORY BOARD ON LABOR RELATIONS, INC.

By: Howard RothschildPresidentDated: January 3, 2011

58

59

60