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AGREEMENT

BETWEEN

SHEET METAL AIR, RAIL

And

TRANSPORTATION WORKERS UNION

LOCAL # 2

TOPEKA, KANSAS

AND

TOPEKA AREA CONTRACTORS

EFFECTIVE JULY 1, 2014

EXPIRES JUNE 30, 2017

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TABLE OF CONTENTS

ARTICLE DESCRIPTION PAGE

ARTICLE I Scope

ARTICLE II Subcontracting

ARTICLE III Employees

ARTICLE IV Hiring Procedures

ARTICLE V Future Use

ARTICLE VI Work hours

ARTICLE VII Travel

ARTICLE VIII Wages

ARTICLE IX Tools and Safety

ARTICLE X Grievances

ARTICLE XI Apprentices

ARTICLE XII Pre-Apprentices

ARTICLE XIII Recognition & Duration

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STANDARD FORM OF UNION AGREEMENT SHEET METAL, ROOFING, VENTILATING AND AIR CONDITIONING

CONTRACTING DIVISIONS OF THE CONSTRUCTION INDUSTRY

This Agreement entered into July 1, 2014 by and between Topeka Area Contractors and

each business establishment individually, whether represented by a contractor association

or not, hereinafter referred to as the “Employer”, and Local Union No. 2 of The

International Association of Sheet Metal, Air, Rail and Transportation Workers’ Union,

hereinafter referred to as the “Union” for the following counties:

Brown, Cheyenne, Clay, Cloud, Decatur, Ellis, Geary, Gove, Graham,

Jackson, Jewell, Lincoln, Logan, Lyon, Marshall, Mitchell, Morris,

Nemaha, Norton, Osage, Osborne, Ottawa, Phillips, Pottawatomie,

Rawlins, Republic, Riley, Rooks, Russell, Saline, Shawnee, Sheriden,

Sherman, Smith, Thomas, Trego, Wabaunsee, Wallace, Washington

Counties in Kansas.

Other counties within the jurisdictional boundaries of Local #2:

Allen, Anderson, Atchison, Bourbon, Cherokee, Coffey, Crawford,

Doniphan, Douglas, Franklin, Jefferson, Johnson, Labette, Leavenworth, Linn, Miami,

Montgomery, Neosho, Wilson, Woodson and Wyandotte Counties, Kansas and Andrew,

Atchison, Barton, Bates, Benton, Buchanan, Caldwell, Camden, Carroll, Cass, Chariton,

Clay, Clinton, Daviess, Dekalb, Gentry, Grundy, Harrison, Henry, Hickory, Holt,

Howard, Jackson, Johnson, Lafayette, Linn, Livingston, Mercer, Miller, Moniteau,

Morgan, Nodaway, Pettis, Platte, Ray, St. Clair, Saline, Vernon and Worth Counties,

Missouri.

ARTICLE I

SCOPE

Section 1. This agreement covers the rates of pay and conditions of employment

of all current, potential and future Sheet Metal Workers represented by the Union

engaged in but not limited to the:

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(a) manufacture, fabrication, assembling, handling, erection, installation,

dismantling, conditioning, adjustment, alteration, repairing and servicing of all ferrous

and non-ferrous metal work and all materials used in lieu thereof and all HVAC Systems,

air veyor systems, exhaust systems, and air handling systems regardless of material used

including the setting of all equipment and reinforcements in connection therewith;

(b) all lagging over insulation and all duct lining;

(c) testing and balancing of all air handling equipment and duct work;

(d) the preparation of all shop and field sketches manually drawn, used in

fabrication and erection including those taken from original architectural and engineering

drawings or sketches;

(e) metal roofing;

(f) all other work included in the jurisdictional claims of the International

Association of Sheet Metal, Air, Rail and Transportation Workers’ Union.

Section 2. It is further understood that employees covered by this Agreement

shall cut all openings, through walls, floors, ceilings and roofs that are to receive sheet

metal work of all descriptions except, hole cutting in concrete, masonry, lath and plaster

at contractors option, provided that these openings do not interfere with the structural

capacity of any part of the building or when the structural lintels are specified. This does

not apply to new buildings under construction where common practice provided that

openings be left for sheet metal work by General Contractor as construction progresses.

Section 3(a). The Employer agrees to work with the Union and obtain all of the

work that comes within the jurisdiction of the International Association of Sheet Metal,

Air, Rail and Transportation Workers’ Union.

Section 3(b). The Union agrees to work with owners, architects and engineers to

obtain all of the work that comes within jurisdiction of the International Association of

Sheet Metal, Air, Rail and Transportation Workers’ Union.

Section 4(a). During work hours, the Business Manager or Representative(s) of

the Union shall have free access to the Employer’s shop or jobs where employees are

employed upon notification of management office.

Section 4(b). In the event security reasons require an escort into the shop or job,

the Employer will cooperate in making the necessary arrangements for the Business

Manager or Representative(s) access.

ARTICLE II

SUBCONTRACTING

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Section 1. No Employer shall subcontract or assign any of the work described

herein which is to be performed at a job site to any contractor, subcontractor or other

person or party who fails to agree in writing to comply with the conditions of

employment contained herein including, without limitations, those relating to union

security, rates of pay and working conditions, hiring and other matters covered hereby for

the duration of the project.

Section 2. Subject to other applicable provisions of this Agreement, the Employer

agrees that when subcontracting for prefabrication of materials covered herein, such

prefabrication shall be subcontracted to fabricators who pay their employees engaged in

such fabrication not less than the prevailing wage for comparable sheet metal fabrication,

as established under provisions of this Agreement.

ARTICLE III

EMPLOYEES

Section 1(a). The Employer agrees that none but journeyman, apprentice and pre-

apprentice sheet metal workers shall be employed on any work described in Article I and

further, for the purpose of providing jurisdiction, agrees to provide the Union with

written evidence of assignment on the Employer’s letterhead for certain specified items

of work to be performed at a jobsite prior to commencement of work at the site. List of

such specific items, which may be revised from time to time, as agreed to by and between

SMACNA and SMART, shall be provided to the Employer.

Section 1(b). It is agreed that the Employer who is party to this Agreement will

not discharge employees because of legal union activities.

Section 1(c). Stewards appointed by the Business Manager or Representative(s)

of Local #2 shall not be subject to discrimination by the Employer because of the

performance of his/her duties as steward. A steward shall receive the regular

journeyman’s rate of pay and be subject to the same terms of employment as any other

employee.

Section 1(d). The Business Manager or Representative(s) may appoint a steward

for each shop or jobsite. The steward shall be selected from employees having at least six

months tenure with the Employer. If no such employee is available, the steward will be

the first man on the job other than the foreman. The Employer will receive notice in

writing at his place of business of the appointment of all stewards. It will be the

responsibility of the Employer to cooperate with the Union to promote the efficiency of

appointed stewards in the performance of their assigned duties.

Section 1(e). The shop steward may be laid off or terminated due to lack of work,

lack of productivity, insubordination or any just cause. In case a union steward is laid off

or terminated, the Employer shall notify the Business Manager or Representative(s) prior

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to the steward being laid off or terminated. This section in no way supersedes the

Employer, Union or the employee of their rights under Article X.

Section 1(f). The duties of a steward shall be outlined in the Constitution and

Ritual of the International Association of Sheet Metal, Air, Rail and Transportation

Workers’ Union and as follows:

It shall be the duty of a steward to observe conditions of employment and the

conduct of members to the end that duties and obligations of members and the provisions

of existing Union Agreements shall be complied with; to assist whenever possible in

adjusting differences or misunderstandings which arise out of the interpretations or

application of the provisions of existing Union Agreements in connection with the

employment of members in shops or on jobs; to advise eligible applicants for

membership regarding the requirements of membership and refer said applicants to the

Financial Secretary or the Business Manager or Representative(s) of the Local Union; to

direct traveling members of other Local Unions, who are seeking employment, to report

to the Financial Secretary, Business Manager or other official and comply with the

provisions of the Constitution regarding the deposit of transfer cards; to submit regular

reports to the Local Union and to immediately report to the Business Manager or

Representative(s) any matter which requires his/her attention.

Shop stewards shall require absolute compliance with all provisions and

requirements of the Constitution regarding the issue and use of Union Label, and all rules

and regulations governing wages and conditions of employment, and immediately report

any violations or evasions to the Business Manager or Representative(s) of the Local

Union.

Section 1(g). It shall not be a violation of this Agreement and it shall not be a

basis for discharge or discipline for any employee to refuse to cross any picket line

involving a primary dispute.

Section 2. Each steward has a right to call the Business Manager or

Representative(s) during working hours at no lost time to him/her to notify the Business

Manager or Representative(s) of any violations or misunderstandings that may arise in

the shop or on any jobsite. However, any other members will lose time except reporting

violations to steward.

Section 3. It shall not be a violation of this agreement, and shall not be cause for

discharge or disciplinary action, in the event an employee:

(a). Refuses to enter upon any property of his/her Employer involved in a lawful

primary labor dispute or refuses to go through or work behind any lawful primary picket

lines at his/her Employer’s place of business, including picket lines of Union parties to

this Agreement; or

(b). Refuses to go through or work behind any picket line, including picket lines

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of Union parties to this Agreement, at places of business of any other Employer where

the employees of such Employer are engaged in a strike ratified or approved by the

Union of such employees whom such Employer is legally required to recognized.

Section 4. It shall not be violation of this agreement and it shall not be cause for

discharge or disciplinary action if any employee refuses to perform any service which

his/her Employer performs by arrangement with an Employer or person whose

employees are on strike, and which service, but for such strike, would be performed by

the employees of the Employer or persons on strike.

Section 5. The working rules of Local # 2 and he International Association of

Sheet Metal, Air, Rail and Transportation Workers’ Union are hereby incorporated into

this Agreement and made a part hereof as fully as if set forth herein at length provided

they are not inconsistent with Federal or State laws, and if the terms and provisions

thereof are in conflict with any provisions of this contract such working rules shall

govern; provided, however, that any Employer may establish and maintain safety rules

and conditions setting higher standards than those specified by said working rules.

Section 6. Journeyman will receive, outside of working hours, upgrade training to

improve their skills and increase their knowledge of new technology and emerging markets

for the sheet metal industry. They shall receive 14 hours of training per year. Training shall

consist of mechanical licensing continuing education units, skills upgrade, foreman training

and emerging market technology. If a contractor schedules any mandatory contractor specific

training, this training shall be during working hours and the responsibility of the contractor

employing the journeyman.

Section 7. The parties are committed to maintaining a workplace that is safe,

productive, and free of alcohol and illegal drugs. SMART Local Union No. 2

acknowledges each Area 6 contractor may do pre-employment, post-accident or work

opportunity mandated drug/alcohol testing covered by individual policies of the

individual contractors. The employer shall provide the Union with a copy of the

employer’s policy and shall immediately notify the Union upon any changes to that

policy. In addition, the company shall notify the Drug Officer of the Union immediately

upon a positive test of a member. Should any dispute arise with respect to the application

or implementation of the Employer’s individual policy between workers employed

pursuant to the collective bargaining agreement, such disputes shall be submitted to the

grievance and arbitration provisions of the agreement.

Section 8. Code of Excellence. SMART Local Union No. 2 and the Topeka Area

Contractors agrees to adopt the SMART Code of Excellence Program as amended and

adopted by Local Union No. 2 and the Topeka Area Contractors. Please note that in any

instance in which the SMART Code of Excellence is inconsistent with the Local Union No. 2

Referral Procedures and/or the Topeka Area Building Trades Collective Bargaining

Agreement, the Local Union No. 2 Referral Procedures and CBA shall take precedence.

ARTICLE IV

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HIRING PROCEDURE

Section 1. It is mutually agreed among the parties hereto that the following

conditions shall govern hiring practices under this Agreement.

Section 2. When qualified journeymen sheet metal workers are required to

properly execute work contracted for by the Employer in the manner and under the

conditions specified in this Agreement, the Employer shall give the Union first

opportunity with all other sources to provide suitable journeymen sheet metal workers. If

the Union fails to supply journeymen sheet metal workers within forty-eight hours, the

Employer may hire such employees and shall notify the Union Hall of the name, address

and phone number of such employees for enrollment

Section 3. When additional qualified apprentices are required to properly execute

work contracted for by the Employer in the manner and under conditions specified in this

Agreement, the Employer shall obtain same from the Business Manager, or Business

Representative, of Local Union No. 2.

Section 4. The Union shall refer applicants for employment without

discrimination against such applicants because of race, color, religion, national origin,

age, sex, or in any way affected by Union membership, by-laws, regulation,

constitutional provisions or any other aspect or obligation of Union membership, policies

or requirements.

Section 5. The Employer shall have the right to reject any applicant for

employment except for reason of race, color, religion, national origin, sex, or age.

Section 6. The Union, if requested, shall advise the Employer of the unemployed

sheet metal workers who are qualified to perform the specific class of work.

Section 7. The Employer agrees to notify the union immediately upon the

employment of any sheet metal worker and how they were accepted for employment.

Section 8. A copy of the hiring procedure shall be posted in the Union Hall and at

the shop of each Employer.

Section 9. The Employer shall furnish a termination slip, approved by Local No. 2

with the final pay of each employee. Copies shall go to the employee and Local No. 2.

Section 10. Each employer, who requests that the union refer additional

manpower, will pay the first assigned journeyman at the foreman’s rate.

ARTICLE V

FUTURE USE

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ARTICLE VI

HOURS OF WORK - OVERTIME

Section 1(a). The regular workday shall consist of eight (8) consecutive hours per

day, labor in the shop or on the jobsite, between the hours of six o’clock am (6:00 am)

and four-thirty p.m.(4:30 pm) and the regular workweek shall consist of five (5)

consecutive eight (8) hour days in the shop or on the jobsite, beginning with Monday and

ending on Friday of each week. The starting and ending times of the regular working day

may be changed when mutually agreed upon by the Employer and the employee and

approved by the Business Manager or Representative(s) of the Union. All full-time and

part-time labor performed during such hours shall be recognized as regular working hours

and paid for at the regular hourly rate. Except otherwise provided pursuant to Section

1(b), Section 4 and Section 5 of this Article, all work performed outside the regular

working hours and performed during the regular workweek, shall be at one and one-half

(1 ½) times the regular rate of pay, except as otherwise provided in this Agreement.

Section 1(b). On any project that is shut down due to inclement weather or with

documented customer requirements, Monday thru Friday, Saturday may be worked at the

regular straight time rate of pay, by mutual agreement of the Employer, employees and

Business Manager or Representative(s) of the Union, however it will not be mandatory

that employees work on Saturday. No employee shall suffer any disciplinary action for

refusing to work Saturday make-up day.

Section 1(c). The regular workweek may be changed to a scheduled four (4) ten

(10) hour days, Monday through Thursday, or Tuesday through Friday, by mutual

agreement of the Employer, employees and Business Manager or Representative(s) of the

Union.

Section 2. All work performed on Saturday will be paid for at the one and one-

half (1 ½) times the taxable portion of the regular hourly rate as otherwise provided in

this Agreement. All Sundays, New Year’s Day, Memorial Day, Independence Day, Labor

Day, Thanksgiving Day and Christmas Day if worked will be paid for at two (2) times

the taxable portion of the regular hourly rate. If these holidays fall on Sunday, Monday

will be considered the legal holiday and, if worked, will be paid at the two (2) times the

taxable portion of the regular hourly rate.

Section 3. In order to equalize the overtime work as much as possible, preference

to overtime work shall be given to employees on the job or in the shop, provided the

employee due to be given overtime work is qualified.

Section 4(a). Shift work, pay and conditions therefore shall be only as provided

below in this section.

Section 4(b). Shift work shall be recognized as two (2) or more consecutive eight

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(8) hour shifts per day. The first shift shall be paid at the straight time hourly rate. Second

and Third shift work will be paid at the taxable rate of pay plus fifteen percent (15%) for

shop fabrication or field installation. Any work after eight (8) hour per shift will be paid

at one and one half (1½) times the hourly shift rate.

Shift work shall be done at the following schedule:

Elapsed Hours Work Hours Pay Hours

Daylight Shift 8.5 8.0 8.0

Second Shift 8.5 8.0 8.0 +15%

Third Shift 8.5 8.0 8.0 +15%

24.0 24.0

Shift work week to be from 12:01 a.m. Monday to 11:59 p.m. Friday. Saturday,

Sunday and Holidays shall be at the established overtime rates.

Section 4(c). All personnel being assigned to shift work should be given twenty-

four (24) hours’ notice when possible. If more than eight hours are worked in any one

day it will be paid at the overtime rate.

Section 4(d). If a Third Shift is discontinued before ending the workweek and any

or all employees are returned to the day shift, the following day such employees will

report at 9:30 a.m. and work six and one-half (6½) hours for eight (8) hours pay for the

first day.

Section 5. Work on retrofit or remodeling of existing buildings where it’s

occupants operation prevents work from being performed within the regular workday,

shall be worked in accordance with Section 4(a) of this Article.

ARTICLE VII

TRAVEL EXPENSE OF LOCAL #2 KANSAS

Section 1(a). It is understood and agreed that for the purpose of identifying travel

within Local #2 Area #6 the following conditions shall apply:

Zone #1 : When employed on jobs in Geary, Jackson, Lyon, Morris,

Pottawatomie, Osage, Riley, Shawnee and Wabaunsee counties in Kansas.

Zone #2 : When employed on jobs in Brown, Clay, Marshall, Nemaha and

Washington counties in Kansas.

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Zone #3: When employed on jobs in Cheyenne, Cloud, Decatur, Ellis, Gove,

Graham, Jewell, Lincoln, Logan, Mitchell, Norton, Osborne, Ottawa, Phillips, Rawlins,

Republic, Rooks, Russell, Saline, Sheriden, Sherman, Smith, Thomas, Trego and Wallace

counties in Kansas.

If travel is necessary in Local #2 Areas 1, 2, 3, 4 or 5, except Atchison,

Douglas, Franklin or Jefferson counties all travel shall be paid at a

minimum of $25.00 a day. If overnight stay is required then per diem

shall be negotiated between the Union and Contractor.

Section 1(b). When employed in a shop or on a job within Area #6 employees

shall be governed by the regular working hours specified herein and shall provide for

themselves necessary transportation within Area #6 from home to shop or job at starting

time and from shop or job to home at quitting time, and the Employer shall provide and

pay for all necessary additional transportation during working hours.

Section 1(c). If travel is necessary outside of Zone #1 compensation for

subsistence will be negotiated between the Employer and the employee on job by job

basis, once subsistence is agreed upon, the employer agrees to notify the union.

Section 1(d). All travel time outside the established work week will be paid at

one and one-half (1½) times the regular rate of pay. Note that no straight time is paid for

travel unless it is during normal working hours. If the Employer sends an employee from

the Employer’s original place of business, the Employer shall pay travel time and

transportation expenses from the Employer’s original place of business, regardless of job

location.

In the event additional transportation, during the working hours, is

provided by an employee in his/her vehicle, he/she will be compensated for such

transportation at the current rate of the Internal Revenue Service mileage

deduction. The Employer shall pay for all parking expense, road and bridge tolls

incurred. The Employer may designate parking locations and routes and

employees shall furnish receipts for all expenditures.

Section 1(e). Travel outside Local #2’s Jurisdictional Area, the Employer shall

pay all necessary transportation, travel time, parking, road and bridge tolls room and

board while employed in that Area.

Section 1(f). In the event the jurisdiction is increased notification will be given

immediately to the Employer and the added counties will automatically be included.

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ARTICLE VIII

WAGES

Section 1(a). The minimum rate of wages for journeymen sheet metal workers

covered by this Agreement when employed in a shop or on a jobsite within the

jurisdiction of the Union to perform any work specified in Article I of this Agreement

shall be per Section 1(b) or 1(c), except as hereinafter specified in Section 2 of this

Article.

Section 1(b). Overtime rates of pay will be figured on amount paid for each hour

worked that is taxable.

Section 1(c).

JOURNEYMAN WAGE RATE AND FRINGE BENEFIT SUMMARY.

7/1/2014 7/1/2015 7/1/2016 Total Wage Increase $1.00 $0.80 $0.70

Journeyman Hourly

Wage Rate $30.69 $31.06 $31.31

Deductions After Taxes

Working Assessment 3.75% of Beneficial Wage

Per Capita $0.11 $0.11 $0.11

Fringes Paid by the Employer on Behalf

Of Employee and Employer:

National Pension $5.79 $6.20 $6.63

Mo-Kan Health* $5.91 $5.91* $5.91*

Retiree Mo-Kan

Health Subsidy $0.30 $0.32 $0.34

ITI/NEMI $0.15 $0.15 $0.15

SMOHIT $0.02 $0.02 $0.02

401(k) (Currently $1.79) $1.79 $1.79 $1.79

Local Training $0.94 $0.94 $0.94

Total Fringe Package $14.90 $15.33 $15.78

Total Wage &

Fringe Package $45.59 $46.39 $47.09

Foreman Pay $32.84 $33.24 $33.50

General Foreman Pay $33.76 $34.17 $34.44

Superintendent Pay $34.68 $35.10 $35.38

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7/1/2014 7/1/2015 7/1/2016

Shift Pay for

2nd & 3rd Shift $34.12 $34.43 $34.73

Effective July 1st, increases shall be added to the total package with the

distribution of the increases to be determined by the Union.

* Allocations subject to change by MoKan Trustees recommendation at a Special Order

of Business Meeting, prior to contractual increase.

Section 2. On all work specified in Article I of this Agreement, fabricated and/or

assembled by journeymen sheet metal workers, apprentices and/or pre-apprentices within

the jurisdiction of this Union or elsewhere, for erection and/or installation within the

jurisdiction of any other Local Union affiliated with SMART whose established wage

scale is higher than the wage scale specified in this Agreement the higher wage scale of

the job site Union shall be paid to the journeymen employed on such work in the home

shop or sent to the job site.

Section 3. The provisions of Article II, Section 2; Article III, Section 1 or Section

2 of this Article shall not be applicable to the manufacture for sale to the trade or

purchase of the following items:

1. Ventilators

2. Louvers

3. Automatic and Fire Dampers

4. Radiator & Air Conditioning unit enclosures

5. Fabricated pipe and fittings for residential installation and light commercial work as

defined in the locality.

6. Mixing (attenuation) boxes

7. Plastic Skylights

8. Air Diffusers, grilles, registers

9. Sound Attenuators

10. Chutes and appendages.

11. Double-wall panel plenums

12. Angle rings

Section 4. The provisions of Section 2 of this Article shall not be applicable to

AIR POLLUTION CONTROL SYSTEMS fabricated for the purpose of removing air

pollutants, excluding air conditioning, heating and ventilating systems. In addition, the

provisions of Section 2 of this Article will not be applicable to the manufacture of spiral

pipe and fittings, except when such a provision is contained in the local union agreement

or addendum to the SFUA.

Section 5. Except as provided in Section 2 and 6 of this Article, the Employer

agrees that journeymen sheet metal workers hired outside of the territorial jurisdiction of

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this Agreement shall receive the wage scale and working conditions of the local

Agreement covering the territory in which such work is being performed and supervised.

Section 6. When the Employer has any work specified in Article I of this

Agreement to be performed outside of the area covered by this Agreement and within the

area covered by another Agreement with another union affiliated with SMART and

qualified sheet metal workers are available in such area, he may send no more than

two(2) sheet metal workers per job into such area to perform any work which the

Employer deems necessary, both of whom shall be from the Employer’s home

jurisdiction. All additional sheet metal workers shall come from the area in which the

work is to be performed. Journeymen sheet metal workers covered by this Agreement

who are sent outside of the area covered by this Agreement shall be paid at least the

established minimum wage scale specified in Section 1 of this Article but in no case less

than the established wage scale of the local Agreement covering the territory in which

such work is being performed or supervised, plus all necessary transportation, travel time,

board and expenses while employed in that area and the Employer shall be otherwise

governed by the established working conditions of that local Agreement. If employees

are sent into an area where there is no local Agreement of SMART covering the area then

the minimum conditions of the home local union shall apply.

Section 7. In applying the provisions of Sections 2, 5 and 6 of this Article, the

term “wage scale” shall include the value of all applicable hourly contractual benefits in

addition to the hourly rate provided in said Sections.

Section 8(a). Welfare Benefit Contributions shall not be duplicated.

When sheet metal workers are employed temporarily outside the jurisdiction of

their home local union, the parties signatory to this Agreement agree to arrange through

the Health & Welfare Trust Fund to transmit health & welfare contributions made on

behalf of the employee to the Health & Welfare Fund in the employee’s home local

union.

The parties to this Agreement agree to establish a system for continuing health &

welfare coverage for employees working temporarily outside the jurisdiction of the local

collective bargaining agreement when health & welfare contributions are transmitted on

their behalf by trust funds from other areas.

Section 8(b). Each Employer working under this agreement agrees to pay to Mo-

Kan Sheet Metal Workers Welfare Fund as per Section 1(c) of this Article per hour

starting July 1, 2008, for each hour worked by the employee covered by this Agreement.

Payments to be made to Mo-Kan Sheet Metal Workers Welfare Fund, P.O. Box 300019,

Kansas City, MO., 64130-0019.

Section 8(c). When sheet metal workers are temporarily employed outside the

jurisdiction of their home local union, the parties signatory to this agreement shall

arrange to transmit any 401(k) contributions required to be made to a 401(k) plan where

the work is performed to a 401(k) plan established for the employee's home local union,

and/or to the National Supplemental Savings Fund.

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Section 9(a). Wages at the established rates specified herein shall be paid weekly

in cash or by check in the shop or on the jobsite at or before quitting time and no more

than three (3) days’ pay withheld. Alternative payroll procedures, i.e. electronic and/or

direct deposit may be used if agreed to by the employee.

Section 9(b). When employees are discharged an appropriate amount of time

shall be allowed so employees can gather their tools and belongings. All Employers shall

pay employees in full immediately upon discharge due to layoff or summary dismissal;

wages at the overtime rate must be paid for all time that expires after the hour of

dismissal pending this payment.

Section 9(c). The failure of an Employer to pay wages due may be considered a

breach of this Agreement in its entirety.

Section 10. Journeymen, Apprentices and Pre-Apprentices who report for work

by direction of the Employer and are not placed to work shall be entitled to two (2) hours

pay at the established rate. This provision, however, shall not apply under conditions over

which the Employer has no control.

Section 11(a). Each Employer covered by this Agreement shall employ at least

one (1) Journeyman Sheet Metal Worker who is not a member of the firm on all work

specified in Article I of this agreement. However, it will be permissible for an

owner/member to be the Journeyman Sheet Metal Worker.

Section 11(b). The selection and appointment of Superintendent, General

Foreman and any other Foreman is solely the responsibility of the Employer. The

Employer agrees that there shall be a designated Foreman after six (6) employees are

employed on any given project. After sixteen (16) employees are employed on a given

project there will be two (2) Foreman. After twenty-four (24) employees on a given

project there will be three (3) Foreman and one (1) General Foreman. All

Foreman/General Foreman/ Superintendent will be licensed Journeyman Sheet Metal

Workers.

The foregoing are minimum standards;

6-1-2014through 6-30-2017

Foreman/Shop Foreman 107% of tax.

General Foreman 110% of tax.

Superintendent 113% of tax.

Should over thirty-one (31) employees be employed on one job site by one company or

one contractor, there shall be one Superintendent who will be a Journeyman Sheet Metal

Worker.

Foreman may perform Journeyman’s duties, if no more than seven (7) persons are under

the Foreman’s supervision in the crew. Non-working Foreman may perform layout and

handling of tools and materials.

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Section 11(c). Each Employer employing six or more employees in the shop will

have a shop foreman, who will be a journeyman sheet metal worker. Shop Foreman's

rate of pay shall be seven percent (7%) per hour above journeyman minimum wages.

Section 11(d). Shop Foreman is a journeyman sheet metal worker who is in

charge of the employees in the shop. If shop foreman is absent for more than three (3)

days then another journeyman shall be paid shop foreman wages.

Section 11(e). Each Employer will notify the Business Representative who their

foremen are in the shop and on the job site.

Section 11(f). Any employee who is running from one job site to other job sites

or who is in charge of men on different jobs will not be considered as a foreman on any

of these jobs or job sites; the employee is not considered as working on one job or one

job site.

Section 11(g). A job site is a job where employees are working which can be in a

plant, new building or a group of new buildings as long as they are on one job site.

Employees can be in different parts of the plant or building but will be considered as

working on one job site.

Section 12(a). Effective as of the date of this Agreement the Employers will

contribute to the International Training Institute (ITI) for the Sheet Metal and Air

Conditioning Industry twelve cents (.12) per hour or an amount assessed by the trustees

for each hour worked by each employee of the employer covered by this Agreement.

Payment shall be made on or before the 15th day of the succeeding month and shall be

remitted to Brotherhood Bank & Trust, P.O. Box 412416, Kansas City, MO. 64141.

Section 12(b). Effective as of the date of this Agreement the employers will

contribute to the National Energy Management Institute Committee(NEMI), a jointly

administered trust fund, three cents (.03) per hour or an amount assessed by the trustees

for each hour worked by each employee of the Employer covered by this Agreement.

Payment shall be made on or before the 15th day of the succeeding month and shall be

remitted to Brotherhood Bank & Trust, P.O. Box 412416, Kansas City, MO. 64141.

Section 12(c).Effective as of the date of this Agreement the Employers will

contribute to the Sheet Metal Occupational Health Institute Trust(SMOHIT), two cents

(.02) per hour or an amount assessed by the trustees for each hour worked by each

employee of the employer covered by this Agreement until the Institute Trustees

determine that the trust is financially self-sufficient. Payment shall be made on or before

the 15th day of the succeeding month and shall be remitted to Brotherhood Bank & Trust,

P.O. Box 412416, Kansas City, MO. 64141.

19

Section 12(d). The parties agree to be bound by the Agreement and Declaration

of Trusts establishing the International Training Institute (ITI) for the Sheet Metal and

Air Conditioning Industry, the National Energy Management Institute Committee

(NEMI), and the Sheet Metal Occupational Health Institute Trust (SMOHIT) and the

separate agreements and declarations of trusts of all other local or national programs to

which it has been agreed that contributions will be made. In addition, the parties agree to

be bound by any amendments to said trusts agreements as may be made from time to time

and hereby designate as their representatives on the Board of Trustees such trustees as are

named together with any successors who may be appointed pursuant to said agreements.

Section 12(e). The parties authorize the trustees of all national funds to

cooperatively established uniform collection procedures to provide for efficient and

effective operation of the various national trusts.

Section 13(a). Sheet Metal Workers’ Local No. 2 401(k) Plan (Sheet Metal

Workers' Local Union Number 77 Pension Fund): Each Employer agrees to pay the

same rate for each hour worked by the employees as listed in Article VIII Section 1 (C).

Payments to be made to Brotherhood Bank & Trust, P.O. Box 412416, Kansas City, MO.

64141.

Section 13(b). Each employer working under this agreement agrees to pay into

the 401(k) Plan for each hour worked by a journeyman and apprentice at the appropriate

rate covered in this bargaining agreement (the employee’s mandatory deferred savings

account). A participant may voluntarily change the amount of the tax deferred savings as

of January 1st and July 1st each year (with at least 21 days advance notice) in units of .50

cents, up to the maximum permitted by federal law each year. Such a change must

comply with the Internal Revenue Code nondiscrimination guidelines. Changes in

deductions as set out in this Agreement must be mutually agreed to by the Trustees of the

Sheet Metal Workers’ Local No. 2 401(K) Plan and the Sheet Metal Contractors

signatory to this agreement and SMART Local Union No. 2.

The Sheet Metal Workers’ Local No. 2 401(K) Plan shall be administered

pursuant to the Plan Document, Declaration of Trust dated July 1, 1998, and Agreement

and Plan of Merger & Transfer of the Sheet Metal Workers Local #77 Pension Plan and

Trust into the Sheet Metal Workers Local No. 2 401(k) Plan dated October 22, 2008.

Said Plan Document, Declaration of Trust, and Agreement shall be considered a part

hereof as if set forth in detail.

The monies paid and/or deducted shall be forwarded monthly to a financial

institution as selected by the Employer and the Union, along with all other fringe benefit

payments due under this Agreement.

Employers contributing to the Sheet Metal Workers’ Local No. 2 401(k) Plan

shall be responsible for forwarding all deductions from the employee’s wages to the

financial institution within the terms and conditions of the Plan and Trust Document and

20

shall comply with all federal and state law with regard to forwarding such deductions to

the Plan. In addition, employers are responsible for forwarding to the Plan each

employee’s compensation information required by the IRS for discrimination testing of

the Plan. Except as required by law, the employer shall not be deemed to be a Plan

administrator, or a fiduciary with respect to the Plan, unless they accept a position on the

Board of Trustees.

Except as otherwise allowed by the Board of Trustees of the Sheet Metal

Workers’ Local No. 2 401(k) Plan, certain employers shall be required to deposit and

maintain a surety bond to guarantee the prompt forwarding of employee deductions

required by this agreement. Employers that are subject to such bonding requirement

include those employers working under this bargaining agreement that are classified as

(1) delinquent contractors, (2) new contractors, or (3) out of town contractors. An

employer is considered a “delinquent contractor” the first month that the employer fails

to forward employee deductions within the terms and conditions of the Plan, the Trust

Document, this bargaining agreement, or federal or state law. Such employer will retain

“delinquent contractor” status and is required to fulfill and maintain the bonding

requirement until twelve (12) months after all required employee deductions are

forwarded and all applicable interest, costs, and damages are paid in full. An employer is

considered a “new contractor” for the first twelve (12) months after becoming a signatory

to this bargaining agreement. Such employer will retain “new contractor” status and is

required to fulfill and maintain the bonding requirement for the first twelve (12) months

of becoming a signatory to this bargaining agreement. An employer is considered an “out

of town contractor” if such employer is not located in the jurisdictional area of Local 2

and does not regularly perform services within the jurisdictional area of Local 2. Such

employer will retain “out of town contractor” status and is required to fulfill and maintain

the bonding requirement for all time periods in which such employer is not located in the

jurisdictional area of Local 2 and does not regularly perform services within jurisdictional

area of Local 2.

The bond shall be in a form satisfactory to the Board of Trustees and in an amount

of $__________/employee covered in this agreement. The bond shall guarantee payment

of all delinquent employee deductions, interest, liquidated damages, attorney’s fees, and

other costs of collection owed by the employer. The number of employees per employer

shall be based on the average number of employees reported to the Plan during the

preceding _____month period. The Board of Trustees shall have the authority to adjust

the bond amount or increase the bond required under this section if the employer is

delinquent _____ times in forwarding employee deductions or the Board of Trustees

determines that such increase is required to protect employees and ensure prompt

payment of employee deductions. In lieu of a security bond, an employer may, with

written permission of the Board of Trustees, deliver an irrevocable letter of credit or

deposit cash into an escrow account (in the same amount as required for the bond) under

the terms of which the escrow trustee will pay to the Plan such employee deductions

which the employer is determined to owe under this agreement. In the event an employer

fails to deposit and maintain said bond, letter of credit, or escrow account, the Union shall

21

have the right to enforce the bond requirement and payment of employee deductions by

whatever legal means (including, but not limited to, pulling men from the service of the

employer, or notifying other parties of the delinquencies) against delinquent employer

without resorting to any grievance procedure set forth in this or any other agreement;

however, in such event, the Union shall notify Sheet Metal Contractors signatory to this

agreement of such intent at least two working days prior to taking any such action.

Section 13(c). The Parties to this Agreement have adopted the NPF’s

Alternative Schedule as in effect when the Collective Bargaining Agreement is entered

into and as amended, as applicable. The Employer will contribute to the Sheet Metal

Workers' National Pension Fund at the hourly Contribution Rates set forth in this

Agreement, and in accordance with the Alternative Schedule and NPF’s Trust Document.

The Alternative Schedule and the NPF Trust Document are incorporated into this

Agreement and form a part of this Agreement. The Employer will pay its required

monthly NPF contributions on or before the 20th day of the month, after the month in

which Covered Employment was performed, via the Fund’s on-line reporting and

remittance system.

No additional accrual monies will be allocated for the duration of this agreement,

only monies to meet the needs of the Alternative Schedule.

Section 14(a). Working Assessment and Per Capita Check-off: The Employer

agrees to deduct working assessment and Per Capita from the wages of any employee

covered by the Agreement upon receipt of a dues deduction authorization card from the

employee. The employee shall give at least thirty (30) days advance written notice of

such termination to the Employer in advance of the contract date or the expiration of the

year period, or, the employee's dues deduction shall be deemed to automatically renew.

Payments to be made to Brotherhood Bank & Trust, P.O. Box 412416, Kansas City, MO.

64141 for supplemental dues.

Section 14(b). Training Fund: Each Employer agrees to pay as per schedule in

Article VIII Section 1 (C), for all hours worked by the Employees employed by them.

Payments to be made to Brotherhood Bank & Trust, P.O. Box 412416, Kansas City, MO.

64141.

Section 14(c). All Fringe Benefits, including Mo-Kan Health & Welfare Fund,

National Pension, National SMOHIT Fund, National Training, National NEMI Fund,

SMART Local No. 2 Supplemental Dues Fund, Local Pension Fund and Local Training

Fund payments shall be made by the 15th of the succeeding month. Fringe report forms

are available from SMART Local No. 2 office.

Section 14(d.). All Fringe benefits listed in this agreement shall be due the

fifteenth of the month following the month they were earned and delinquent after the

twentieth day of each month.

Section 15. The Employers doing work in the area covered by this Agreement

22

and failing to pay Contributions as stipulated under Section 1(c) of Article VIII shall

suffer a work stoppage on all their jobs and in shops until proper payments have been

brought up to date, at no loss of pay to the men employed by them on their respective

jobs.

Section 16(a). If the Employer becomes delinquent in payment to said Funds, the

Union shall have the power to cancel this Agreement. The power of cancellation

notwithstanding, the Employer may cause this Agreement to be automatically reinstated

by becoming current with such Funds within a reasonable length of time; and in addition

by posting either a cash bond, a surety bond or an irrevocable “Letter of Credit” from a

financial institution, any of which should be in the amount of the following Schedule “ A

“ (reference Section 16(d)) for a period of one year to secure the payment of future

contributions due the respective Funds. Employer shall pay all regular wages lost by his

employees while this Agreement is cancelled and all fees as outlined below. Employer

shall pay all regular wages lost by his employees while this Agreement is cancelled and

all fees as outlined below.

Section 16(b). In addition to said surety, the Employer shall pay an additional ten

percent (10%) delinquent fee for the first month and five (5%) per month thereafter and

the Employer shall be liable to the particular Funds for any cost relating to the collection

of any delinquent monies due such Funds covered under this collective bargaining

agreement, including attorney fees.

Section 16(c). The Employer agrees to make available to the Union all records of

employees covered by this Agreement. The employer further agrees to retain all payroll

records including time cards for a period of three years.

Section 16(d). Thirty (30) days after execution of this Agreement by the parties

hereto, all Employers new to this Union's jurisdiction shall post either a cash surety bond

or irrevocable Letter of Credit from a financial institution in the minimum amount of the

following schedule for a period of one year naming: SMACNA and Local #2 Joint

Collection Committee, as oblige:

Schedule “A” on the bonding requirements are as follows:

0 to 2 employees $10,000.00 Bond

3to 15 employees $60,000.00 Bond

16 and over employees $120,000.00 Bond

Section 17. Liability Insurance under Workmen's Compensation Act. Each

member of the party of the first part shall carry Workmen's Compensation Insurance

under the State of Kansas Workmen's Compensation Act for all Employees, Sheet Metal

Journeymen, Apprentices and Applicants. Each member of the party of the first part shall

cover all Employees under the State of Kansas and Federal Unemployment

Compensation Act.

23

ARTICLE IX

TOOLS AND SAFETY EQUIPMENT

Section 1(a). Journeymen, apprentice and pre-apprentice sheet metal workers

covered by this Agreement shall provide for themselves all necessary hand tools. This

will not construed to include power tools or recognized accessories and attachments, nor

will it include tools in excess of eighteen inches (18”) in any one dimension or Whitney

punches in excess of nine inches (9”) or items which are normally considered

expendable. The Union and the Employer agree to the following hand tools:

Tinners hammer 18 oz. Drift pin

Snips 1 left 1 right Awl

Center punch Combination square

Sheet metal tongs Screw driver 1 regular 1 Phillips

Vise grips 1 regular 1 c grips Cold chisel

Adjustable wrench Tape measure

7/16-3/4 end wrenches 1 pr. Dividers

Section 1(b). The Employer shall furnish all safety equipment such as welding

hoods, leathers, welding gloves, goggles, safety glasses, face shields and ear plugs, to

insure the protection and safety of the employee in the proper performance of his job,

hard hats with liners when required by rules of the Employer or applicable Federal and

State safety laws. The employer may implement safety program and/or training to insure

employee and co-worker safety.

Section 2(a). Journeymen, apprentice and pre-apprentice sheet metal workers

covered by this Agreement shall not be permitted or required as a condition of

employment to furnish the use of an automobile or other conveyance to transport men,

tools, equipment or materials from shop to job, job to job, or from job to shop; facilities

for such transportation to be provided by the Employer. This provision shall not restrict

the use of an automobile or other conveyance to transport it’s owner and personal tools

from home to shop or job at starting time or from shop or job to home at quitting time.

Section 2(b). All materials, devices, fixtures, equipment and tools used in the

construction of sheet metal work shall be handled, placed in position and connected by

members of Local #2. They shall also handle, unload and distribute all aforementioned

upon and after it’s arrival at the jobsite or premises. They shall also do the loading for

removal of any of the aforementioned. When materials, fixtures or equipment are

protected by covering during construction, such covering shall be put on and removed

and fixtures cleaned by members of Local #2.

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ARTICLE X GRIEVANCE AND JOINT ADJUSTMENT BOARD PROCEEDINGS

Section 1. Grievances of the Employer or the Union, arising out of interpretation

or enforcement of this Agreement, shall be settled between the Employer directly

involved and the duly authorized representative of the Union, if possible. Both parties

may participate in conferences through representatives of their choice. The local

employer or the local Union, on its own initiative, may submit grievances for

determination by the Board as provided in this Article. The grievance procedure set forth

in this Article applies only to labor-management disputes.

To be valid, grievances must be raised within thirty (30) calendar days following

the occurrence giving rise to the grievance, or, if the occurrence was not ascertainable,

within thirty (30) days of first knowledge of the facts giving rise to the grievance.

Section 2. Grievances not settled as provided in Section 1 of this Article, may be

appealed by either party to the Local Joint Adjustment Board where the work was

performed or in jurisdiction of the Employer’s home local and such Board shall meet

promptly on a date mutually agreeable to the members of the Board, but in no case more

than fourteen (14) calendar days following the request for it’s services, unless the time is

extended by mutual agreement of the parties or Local Joint Adjustment Board. The Board

shall consist of three (3) representatives of the Union (Local #2) and three (3) local

Employer representatives and both sides shall cast an equal number of votes at each

meeting. Except in deadlocks, a decision of a Local Joint Adjustment Board shall be final

and binding.

Notice of appeal to the Local Joint Adjustment Board shall be given within thirty

(30) days after termination of the procedures prescribed in Section 1 of this Article,

unless the time is extended by a mutual agreement of the parties.

Section 3. Grievances not disposed of under the procedure prescribed in Section 2

of this Article, because of a deadlock of failure of such Board to act, may be appealed

jointly or by either party to a Panel consisting of one (1) representative appointed by the

Labor Co-Chairman of the National Joint Adjustment Board and one (1) representative

appointed by the Management Co-Chairman of the National Joint Adjustment Board.

Appeals shall be mailed to the National Joint Adjustment Board.* Notice of appeal to the

Panel shall be given within thirty (30) days after termination of the procedures prescribed

in Section 2 of this Article. Such Panel shall meet promptly but in no event more than

fourteen (14) calendar days following receipt of such appeal, unless such time is extended

by mutual agreement of the Panel members. Except in case of deadlock, the decision of

the Panel shall be final and binding.

In establishing the grievance procedure of the Standard Form of Union

Agreement, it was the intent of The International Association of Sheet Metal, Air, Rail

and Transportation Workers’ Union and the Sheet Metal Air Conditioning Contractors’

National Association, Inc. to establish a method for resolving grievances permitting for

25

out-of-town Employers from grievance arbitration procedures established for the territory

in which the work is performed. An Employer who was not a party to the Labor

Agreement of the area in which the work in dispute is performed may appeal the decision

of the Local Joint Adjustment Board from the area, including a unanimous decision as

well as a decision of any alternative arbitration tribunal established for that area, and

request a Panel hearing as set forth in Section 3 of this Article, providing such appeal is

approved by the Co-Chairmen of the National Joint Adjustment Board. Such a right of

appeal shall exist despite any contrary provision in the agreement covering the area in

which the work is performed.

For the purpose of this Section, an Employer who is party to the Labor Agreement

of the area in which the work in dispute is performed, but has no permanent shop within

the area served by the Local Joint Adjustment Board that rendered the unanimous

decision, may also be entitled to appeal a deadlocked or unanimous Local Joint

Adjustment Board decision, and request a Panel hearing.

Section 4. Grievances not settled as provided in Section 3 of this Article may

appeal jointly or by either party to the National Joint Adjustment Board. Submissions

shall be made and decisions rendered under such procedures as may be prescribed by

such Board. Appeals to the National Joint Adjustment Board shall be submitted within

thirty (30) days after termination of the procedures described in Section 3 of this Article.

The Procedural Rules of the National Joint Adjustment Board are incorporated in this

Agreement as though set out in their entirety. (Copies of the procedures may be obtained

from the National Joint Adjustment Board.)*

Section 5. A Local Joint Adjustment Board, Panel and National Joint Adjustment

Board are empowered to rendered such decisions and grant such relief to either party as

they deem necessary and proper, including awards of damages or other compensation.

Section 6. In the event of non-compliance within thirty (30) calendar days

following the mailing of a decision of a Local Joint Adjustment Board, Panel of National

Joint Adjustment Board, a local party may enforce the award by any means including

proceedings in a court of competent jurisdiction in accord with applicable State or

Federal law. If the party seeking to enforce the award prevails in litigation, such party

shall be entitled to it’s costs and attorney’s fees in addition to such other relief as is

directed by the courts. Any party that unsuccessfully challenges the validity of an award

in a legal proceeding shall also be liable for the costs and attorney fees of the opposing

parties in the legal proceedings.

* All correspondence to the National Joint Adjustment Board shall be to the following

address:

National Joint Adjustment Board

P.O. Box 220956 Or 4201 LaFayette Center Drive

Chantilly, VA. 20153-0956 Chantilly, VA. 20151-1209

26

Section 7. Failure to exercise the right of appeal at any step thereof within the

time limit provided thereof shall void any right of appeal applicable to the facts and

remedies of the grievances involved. There shall be no cessation of work by strike or

lockout during the pendency of the procedures provided for in this Article. Except in case

of deadlock, the decision of the National Joint Adjustment Board shall be final and

binding.

Section 8. Not included in this agreement

Section 9. Employers not contributing to the industry Fund of the United States

(IFUS) will be assessed a fee to be determined periodically by the Administrator of the

National Joint Adjustment Board. Proceeds will be used to reimburse IFUS for costs of

arbitration under the provisions of Article X.

Section 10. In addition to the settlement of disputes provided for in Sections 1

through 7 of this Article, either party may invoke the services of the National Joint

Adjustment Board to resolve disputes over the initial establishment of terms for specialty

addenda, if the provisions of Article X have been adopted in their entirety, and without

modifications.

Such disputes may be submitted upon request of either party any time that local

negotiations for such an agreement have been unsuccessful. Such a dispute shall be

submitted to the National Joint Adjustment Board pursuant to the rules as established and

modified from time to time by said Board. The unanimous decision of said Board shall be

final and binding upon parties. There shall be no strike or lockout over such a dispute.

Section 11. In administrating and conducting dispute resolution activities under

the arbitration procedures of the Standard Form of Union Agreement, the National Joint

Adjustment Board, the International Association of Sheet Metal, Air, Rail and

Transportation Workers’ Union and the Sheet Metal Air Conditioning Contractors’

National Association, Inc. and their representatives, are functioning as arbitrators and not

as the representative of any entity that is party to such dispute. Therefore, they shall enjoy

all the rights, privileges and immunities afforded to arbitrators under applicable law.

ARTICLE XI

APPRENTICES

Section 1. All duly qualified apprentices shall be under the supervision and

control of a Joint Apprenticeship Training Committee composed of an equal number of

trustees, half of whom shall be selected by the Employers and half by the Union. There

shall be a minimum of six (6) trustees, with two additional alternate trustees (one from

labor and one from management) from Area #6. Said Joint Apprenticeship Training

Committee shall formulate and make operative such rules and regulations as they may

27

deem necessary and which do not conflict with the specific terms of this Agreement, to

govern eligibility, registration, education, transfer, wages, hours and working conditions

of duly qualified apprentices and the operation of an adequate apprentice system to meet

the needs and requirements of the trade. Said rules and regulations when formulated and

adopted by the parties hereto shall be recognized as part of this Agreement.

Section 2. The Joint Apprenticeship Training Committee designated herein shall

serve for the life of this Agreement, except that vacancies in said Joint Apprenticeship

Training Committee caused by resignation or otherwise, may be filled by either party

hereto and it is hereby mutually agreed by both parties hereto, that they will individually

and collectively cooperate to the extent that duly qualified apprentices be given every

opportunity to secure proper technical and practical education experience in the trade,

under the supervision of the Joint Apprenticeship Training Committee. The parties will

review the needs for specialized and skill-upgrade training and cooperate to establish

necessary programs which will then be supervised by the Joint Apprenticeship Training

Committee.

Section 3(a). It is the understanding of the parties to this Agreement that the

funds contributed by signatory Employers to the International Training Institute (ITI) and

the Local Joint Apprenticeship and Training Fund (Local JATC) will not be used to train

apprentices or journeymen who will be employed by Employers in the Sheet Metal

Industry not signatory to a collective bargaining agreement providing for contributions to

the ITI or JATC. Therefore, the trustees of the ITI and local JATC shall adopt and

implement a Scholarship Loan Agreement Program which will require apprentices and

journeymen employed by signatory Employers to repay the cost of training either by

service following training within the union sector of the industry or by actual repayment

of the cost of training if the individual goes to work for a non-signatory Employer in the

Sheet Metal Industry. The cost of training shall include the reasonable value of all ITI

and local JATC materials, facilities and personnel utilized in training. If a local JATC

does not implement the Scholarship Loan Agreement, the local JATC shall be prohibited

from utilizing ITI materials and programs.

Section 3(b). Sections 1, 2 and 3 of this Article authorizes the JATC to administer

an effective apprenticeship training program. Any work experience, as part of the

program, must be incurred within the authority of the JATC as established by this

Agreement. An apprentice cannot be utilized under the “Two Man Rule”, unless

previously arranged and agreed to by the local Union and the Local where said apprentice

would be traveling into, under no circumstance is traveling allowable if it interferes with

classroom training.

Section 4. Employers will be permitted to hire apprentices and pre-apprentices

with journeymen according to Appendix “A”

Section 5. All applicants for apprenticeship shall serve an apprenticeship of five

(5) years and such apprentices shall not be in charge of any work on any job and shall

work under the supervision of a journeyman until apprenticeship terms have been

28

completed and they have qualified as journeymen; except after notification to the

Business Manager or Representative(s) an apprentice in the last half of their third year

(sixth six-months of their apprenticeship) may work by themselves on a project in order

to gain self-confidence.

Section 6. Apprentices that have quit or been terminated by the Apprentice

Program may be replaced by the Apprentice Committee with the next available

Apprentice. If an Apprentice is not immediately available for replacement then the

Apprentice Committee may allow a pre-apprentice replace the Apprentice until an

Apprentice is available. This shall be at written request by the contractor with written

reply and approval by the Apprentice Committee.

Section 7. If current contractor levels of Appendix A entitle an Employer to an

apprentice and there are no apprentices available, a pre-apprentice may be hired. If

current contractor levels fall below Appendix A ratios the pre-apprentice shall be the first

laid off. Any Employer found by the Local Joint Adjustment Board to be misusing this

section and not employing apprentices, this employer will not be entitled to pre-

apprentices.

Section 8. The parties will establish on a local basis the SMART Youth to Youth

program (the program) and the procedures to enable all apprentices to participate in the

program. The activities of the program that deal with organizing and other traditional

union activities shall be funded by the Local Union through a check off in compliance

with the provisions of Section 302 (c) of the Labor Management Relations Act 1947.

Activities that may be funded by Employer contributions shall be so funded if, and to the

extent, the parties shall agree locally to sponsor and implement the same.

Section 9. The parties agree that career long skill upgrade training is necessary for

an effective workforce.

Section 10. A graduated wage scale for apprentices shall be established and

maintained on the following rates of pay

Section 11. Apprentices may be laid off in any order if the apprentice has less

than 18 months of employment with the contractor. After 18 months of service,

apprentices shall be laid off by seniority, last hired, first laid off, and layoff for cause

shall be according to Article 10 Grievance Procedure.

* SEE CHART

ARTICLE XII

PRE-APPRENTICES

Section 1. Pre-Apprentices shall be granted on the basis of the ratios spelled out

29

in Article XI Section 4.

In the event the Employer is entitled to employ a pre-apprentice, the Employer

may hire such employees and shall inform the Union Hall of the name, address, phone

number and social security number of such employees.

Pre-apprentices shall make application for future openings in the apprenticeship

program. The JATC shall evaluate the qualifications of the pre-apprentices for such

openings during the first year of employment. No pre-apprentice shall be retained beyond

twelve (12) months unless the pre-apprentice has been found to be qualified as an

applicant.

The wage scale for pre-apprentice shall be a minimum of thirty (35%) percent of

wage rate for journeymen sheet metal workers.

National Pension, SMOHIT, ITI and NEMI contributions will be paid on all hours

worked beginning with the first payroll period in the amount of 5% of Journeyman’s

contribution rate for National Pension, .02 an hour SMOHIT and .15 an hour for

ITI/NEMI for each hour worked on or after the effective date of this Agreement.

30

ARTICLE XIII

RECOGNITION, NEGOTIATIONS AND REOPENING

Recognition

The Employer recognizes that the National Labor Relations Board has conducted

an election at their place of business and the Employer’s employees have elected to have

the “union” to serve as their exclusive bargaining representative in respect to wages,

hours and other terms and condition of employment, on any and all work described in

Article I and Article II of this Agreement, pursuant to Section 9(a) of the National Labor

Relations Act.

Section 1(a). This Agreement and Addenda Numbers ARTICLE I through

ARTICLE XIII hereto shall become effective on the 1st day of July, 2014 and remain in

full force and effect until the 30th day of June, 2017 and shall continue in force from year

to year thereafter unless written notice of reopening is given not less than ninety (90)

days prior to the expiration date. In the event such notice of reopening is served, this

Agreement shall continue in force and effect until conferences relating hereto have been

terminated by either party, by written notice

Section 1(b). The Union agrees not to furnish sheet metal workers to any person,

firm or corporation who has not become signatory to and abides by this Agreement

except under an organizing effort.

Section 1(c). The Local Union agrees to furnish to the Employers a list of

persons, firms or corporations who become signatory to this local agreement.

Section 2. If, pursuant, to Federal or State law, any provision of this Agreement

shall be found by a court of competent jurisdiction to be void or unenforceable, all of the

other provisions of this Agreement shall remain in full force and effect. The parties agree

to meet and negotiate a substitute provision

Section 3. Notwithstanding any other provision of this Article, or any other

Article of this Agreement, whenever an amendment to the Standard Form of Union

Agreement shall be adopted by the National Joint Labor Relations Adjustment

Committee, any party to this Agreement, upon the service of notice to all other parties

hereto, shall have this Agreement reopened thirty(30) days thereafter, for the purpose of

attempting to negotiate such amendment or amendments into this Agreement for the

duration of the term hereof. There shall be no strike or lockout over this issue.

Section 4. The employer hereby agrees not to repudiate this Agreement during the

term of this Agreement or during the term of any extension, modification or amendment

to this Agreement. This Agreement may be reopened by mutual consent between the

Employer and the Union for the purpose of making specific alterations or deletions.

Section 5. Topeka Area Contractors and the SMART Local 2 are committed to

31

promoting productive and cooperative labor-management relations. In furtherance of this

goal the local Employers and the local Union agree to establish a labor-management

committee which shall meet on a regular basis, but not less often than quarterly, to

discuss industry issues of mutual concern. Such committee will strive to improve

communications, understand and respond to industry direction and trends, and resolve

common issues collaboratively; if parties agree to meet.

In witness whereof, the parties hereto affix their signatures and seal this

__________ day of________, 2014.

SMART Local #2

___________________________ _____________________________

Jim Huffman Jack Craver

Business Manager Custom Sheet Metal & Roofing, Inc.

___________________________ _____________________________

Mark Shughart Josh McHugh

Business Representative Kruse Corporation

___________________________ ____________________________

Greg Chastain Dan Beal

Business Representative McElroy’s, Inc.

_____________________________

Skip Cansler Mid-American Water & Plumbing

____________________________

Joe Pennington

Stevenson Co., Inc.

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Appendix A

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Total

Journeyman X X X X X X X X X X X X X X X X X X X X X X X 23

5th Yr Apprentice

n/a

Neutral - No max or min

1st - 4th Yr Appr

X X X X X X X X X X X X 12

Pre-Apprentice

X X X X X X X X X X X X X X X X X X X X X X X 23

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ADDENDUM #1

ARCHITECTURAL

Section 1. This Addendum #1 covers the rates of pay, rules and working

conditions of all Sheet Metal Worker bargaining unit employees of the Employer

engaged in the fabrication, handling, erection, installation, alteration, repairing, and

servicing of all ferrous or nonferrous metal work and all material used in lieu thereof of

those item set fourth in Section 2 of this Addendum. Any provision not covered by this

Addendum shall be covered by the Standard Form Agreement (as amended).

Section 2. Any and all types of architectural sheet metal work, siding, decking,

metal roofing, etc. including metal underlayment. And any other architectural sheet metal

work covered by the jurisdictional claims of the International Association of Sheet Metal,

Air, Rail and Transportation Workers’ Union Constitution and Ritual.

Section 2(a). The Employer agrees that none but Journeyman, Apprentices, Pre

Apprentices and Specialty Workers shall be employed on any job described in this

addendum.

Section 3(a). The work week, hours worked and holidays shall be the same as

spelled out in Article VI of the SFUA.

Section 3(b). Any project outside of a twenty (20) mile radius from the shop,

where two (2) hours or less of work remains to be completed, it shall not be a violation of

this Addendum for the employees to remain and complete the work at the regular rate of

pay, with over forty (40) hours being paid at one and one-half times the regular rate of

pay.

Section 4. The basic hourly rate of pay for a journeyman sheet metal worker

covered by this Addendum shall be one hundred percent (100%) of the journeyman rate

spelled out in the SFUA. Article VIII

Section 4(a). Apprentices and Pre Apprentices covered by this addendum shall be

paid on the same percentage and ratios as that spelled in Articles XI and XII of the

SFUA.

Section 4(b). Apprentices covered by this addendum shall be governed by local

Joint Apprentice Committee.

Section 5. Specialty Workers may be employed in the following ratio:

A. one (1) specialty worker for any Employer who employs an journeyman;

B. thereafter, the ratio will be one (1) specialty worker for each additional one(1)

apprentice or pre-apprentice employed.

34

Section 5(a). Specialty workers may perform any work spelled out in this

addendum for which they are capable and will work under the general direction of a

qualified third year apprentice. The wage rate for a specialty worker will not be less than

forty percent (40%) of the journeyman wage rate. They shall be covered by the local

health and welfare plan. National pension contributions shall be the same percentage as

their wage rate.

Section 5(b). In the event the Employer is entitled to employ a specialty worker

and/or a pre-apprentice and the Union fails to comply with the Employers request to

furnish a specialty worker and/or pre-apprentice within forty eight (48) hours, the

Employer may directly hire such employees, and refer them to the Union.

35

ADDENDUM # 2

SERVICE

Work in progress

ADDENDUM #4

RESIDENTIAL/ LIGHT COMMERCIAL

36

Section 1. This addendum cover the rates of pay, rules, and working conditions of

all employees of the employer engaged in fabrication, erection, installation, repairing,

replacing of all Residential/Light Commercial heating, ventilating and air conditioning

systems. Any provision not covered by this Addendum shall be covered by the Standard

Form of Union Agreement.

Section 2. Residential type construction shall be defined as applying to work on

any single-family dwelling or multiple family dwelling conditioned by a separate and

independent unit or system, excluding any Federally Funded Housing Project.

Section 3. Light Commercial type construction is here in defined as all work in

connection with the fabrication, erection, and the installation of all heating, ventilating,

and air conditioning systems for light commercial work limited to the following:

Churches, Nursing Homes, Convalescent Homes, where individual sleeping quarters are

individually heated and or cooled independently of one another. Also included in this

Residential/ Light Commercial scope of work shall be Gasoline Stations, and or

Convenience Stores, Strip-line shopping centers, Restaurants. This Addendum for the

Residential/ Light Commercial industry and shall only be used on HVAC projects having

a total job value of $150,000. Total value shall include all materials, equipment and labor

for any given project covered by this Addendum.

Section 4(a). The Employer agrees that none but Residential/Light Commercial

Sheet Metal Workers and Residential/ Light Commercial Trainees shall be employed on

any work described in this Addendum.

Section 4(b). Residential/ Light Commercial Workers or Trainees shall not be

used on any work not covered by this Addendum. Any Contractor found to be in

violation of this Addendum, shall be subject to the terms of Article 10 of the SFUA and

lose their right to the use this Addendum.

Section 4(c). Residential /Light Commercial workers shall be identified as such

by having that classification printed on the dues receipt.

Section 5. The regular work week, over time, and holidays for Residential/Light

Commercial Workers shall be the same as spelled out in Article VI of the Standard Form

of Union Agreement.

Section 6. Travel expenses for Residential/ Light Commercial Workers shall be

as spelled out in the Standard Form of Union Agreement Article VII and Addendum #3

Section 7(a). The minimum wage and fringe benefits for Residential/ Light

Commercial Journeymen covered by this Addendum shall be as follows:

1. Taxable Wage- $70% of Journeyman’s taxable wage

2. Health and welfare- $Mo-Kan

37

3. Local Pension- $ 1.79

4. SMOHIT- $ .02

5. NEMI- $ .03

6. ITI- $ .12

7. Local Training $ .30

Section7(b). If employees lacking experience and ability to do residential/light

commercial work are hired they shall be hired as a residential/light commercial trainee.

The following schedule is to be followed:

% of Journeyman’s Wage Hours 50% 1 - 1000

55% 1001 – 2000

60% 2001 - 3000

65% 3001 - 4000

Being understood that the training period is to be 4000 hours. At the of

completion of 4000 hours the trainees will be consider a residential/light commercial

journeyman.

Section 7(b). The fringe benefit package for trainees shall be, the same as that of

the Residential/ Light Commercial Journeyman

Section 7(c). All residential/ light commercial trainees will be required to attend a

training program that will be established for that purpose, by the local JATC.

Section 7(d). The ratio of Residential/ Light Commercial Journeymen to Trainees

shall be

1 to 1.

Section 8. All fund contributions that are to be paid under this addendum shall be

reported as per the SFUA.

Section 9. Any Building Trades Journeymen who agrees to work under this

Addendum shall have all his benefits paid as per the SFUA.

This Addendum signed this _________day of______________, 20___, shall

remain in full force and effect for the duration of the Standard Form of Union Agreement.

Contractor Name_______________ SMART Local #2

Signature ____________________ Signature_______________________

Date _____________________ Date___________________________

38

Letter of Understanding

Residential/Light Commercial

On such projects covered by Section 3 of this Addendum, so long as they are

individually heated and/or cooled, plus the dollar amount does not exceed the total

HVAC value of $150,000.00. The type of equipment used does not come into play.

On Section 4 (a) of this Addendum, Residential/Light Commercial, Journeymen

may be used on Commercial projects until enough of the market is recaptured to keep

these Journeymen employed. In such case the Employer shall pay the said Journeymen

the full Building and Trades Journeyman rate in accordance with the Standard form of

Union Agreement.

Pre-Apprentices covered under Article XII of the SFUA may be used under the

Residential/Light Commercial Addendum.

Date ________________________

_________________________________ _________________________________

SMART Local #2 Contractor Representative

39