Final Tentative Agreement 9-8-2022

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TENTATIVE AGREEMENT

between
AMERICAN CRYSTAL SUGAR COMPANY
and
UNITED SUGARS CORPORATION
and
BCTGM UNION

This document represents a tentative agreement


between the Company and the Union with the agreement
the Union’s bargaining committee will make a unanimous
recommendation for ratification to the Union Members.

September 8, 2022
Tentative Agreement between American Crystal Sugar Company and United Sugars and BCTGM
(9/8/22)

A. Term of Agreement: 4 years

B. Annual Base Wage Increase:


• 2022: 8% (eff ective the first full pay period after a new legally binding and enforceable
contract is in place)
• 2023: 3% (effective Aug 1, 2023)
• 2024: 3% (effective Aug 1, 2024)
• 2025: 3% (effective Aug 1, 2025)

C. Group Retirement Plan:


The monthly pension rate in Section 16.10 of the Master Agreement shall be modified to reflect an
increase of the pension multiplier by $1.50 all in the first year of the contract with no increases in the
following years of the agreement. Effective 8/1/2022 the new effective benefit shall be:

Technicians I, II & III Technicians IV Non-Technicians


$42 $38 $35

D. Vision Insurance Option: The Company will offer a vision insurance benefit option for all employees.
100% of the cost of the premium, including yearly increases, will be paid by the employee.

E. Revised Company Proposal #8: Bi-weekly vacation accrual with day one vacation (Attached Exhibit A)

F. Revised Company Proposal #10: Temporary employees (Attached Exhibit B)

G. Tentative Agreements: All previously agreed upon written tentative agreements are incorporated as
• Company Proposal #1: Delete obsolete jobs (as revised and agreed on 6-22-22)
• Company Proposal #2: Insert new jobs (par. A and D only, as agreed on 6-21-22)
• Company Proposal #3: Delete obsolete language
• Company Proposal #5: Gender neutral language
• Company Proposal #6: 12 hour shift schedule and pay rules (as revised 7-14-22)
• Company Proposal #7: Modify attendance policy (as revised and agreed on 6-22-22)
• Company Proposal #9: Scholarship program letter of understanding
• Company Proposal #13: Trial for alternate 12 hour schedules (as revised on 7-15-22)
• Union Proposal #2: Contracting Work (as revised and agreed on 6-22-22)
• Union Proposal #4: Campaign Work Schedules (as revised and agreed on 6-21-22)
• Union Proposal #5: Campaign Work Schedules (as revised and agreed on 6-21-22)
• Union Proposal #10: Use of paid time during FMLA (as revised and agreed on 6-22-22)
• Union Proposal: New 15.6 Paid Parental Leave (as revised and agreed on 7-14-22)
Tentative Agreement between American Crystal Sugar Company and United Sugars and BCTGM
(9/8/22)

H. Additional Rate Adjustments:


The following job classifications will receive additional adjustments to their base wage as listed below:

Job Classification Current 2021 Rate Proposed Rate Adjustments


Lab Benchperson $19.27 $19.89
Packaging Tech IV $19.52 $19.89
Process Tech VI $18.36 $19.27
Oiler $18.36 $19.27
Sweepers & Janitors $16.90 $19.27
Ion Exclusion Helper $18.36 $19.52
Maintenance Planner $32.54 $34.54
Ag Repair Foreman $30.46 $32.46
Packaging Tech III $20.60 $22.60
Shipping Clerk $20.60 $22.60
Chief Electrician $32.01 $33.01
Deep Freeze/Repairman 1st $29.36 $30.46
Ag Repairman 1st $29.36 $30.46
Sugar Boiler $30.35 $31.01
Beet Lab-EGF $16.90 $17.71
(new) Skidsteer Operator - $18.21

Note: all jobs listed above will also receive the proposed base wage increases for 2022 and each subsequent
year of the contract as outlined in paragraph B.

I. Red Circle Rates


All current “red circle” amounts will be included in the base rate for the classification, in addition to the rate
adjustments listed in paragraph I. These affected jobs include:

Electrician 1st, Electrician 2nd, Chief Electrician, ECT, Instrument 2nd, BH Foreman 1st, BH Fireman, Piler
Operator, Ag Repair Foreman, Ag Repair 1st Class, Deep Freeze Ag Repairman 1st, Packaging Tech I, House
Mechanic 1st, Machinist, Certified Welder, Welder 1st, Shop Foreman, Contractor Pipefitter, Journeyman
Pipefitter, Apprentice Pipefitter, Vehicle Repair Mechanic, Chief Boiler House Engineer.
Tentative Agreement between American Crystal Sugar Company and United Sugars and BCTGM
(9/8/22)

J. Retention Bonus:

As an incentive to retain our employees, the Company will pay a Retention Bonus of $1,000 to be paid to
all year round and campaign employees covered by the Union contract who are actively employed on
the date of ratification and who continue to be employed on November 24, 2022.

The Retention Bonuses will be paid out to eligible employees on December 5, 2022 and the amount will
be grossed up for tax purposes so the employee receives $1,000 after taxes.

The Retention Bonuses described herein shall only be paid out on the date noted. There is no agreement
to pay out retention bonuses during any other years of the contract.

Seasonal harvest employees and temporary employees, as defined in Section 2.6 of the current collective
bargaining agreement, shall not be eligible to receive this Retention Bonus.
Exhibit A
American Crystal Sugar Company Proposals
(Clarification) Revised Company Proposal #8
September 8, 2022

A. Modify section 14.1 as follows:

14.1 Vacation Schedule: At the start of employment eligible employees shall earn vacation on a bi-weekly basis
subject to the provisions below.
(a) A year-round employee shall become eligible for vacation in accordance with the following schedule:
Years of Bi-Weekly Annual
Continuous Service Vacation Accrual Vacation
start of service 1.54 hours 40 hours
2 3.08 hours 80 hours
6 4.62 hours 120 hours
1510 6.16 hours 160 hours
20 7.70 hours 200 hours

Year-round employees who attained year-round status before August 1, 2011 shall become eligible for
additional vacation, as follows:
Years of Bi-Weekly Annual
Continuous Service Vacation Accrual Vacation
25 9.24 hours 240 hours

For all new employees hired on or after August 1, 2011, the vacation schedule will be as follows:
Years of
Continuous Service Vacation
1 1 Week
2 2 Weeks
6 3 Weeks
15 4 Weeks
20 5 Weeks

The weeks referred to in this Section 14.1:


(a) Shall consist of a week of 40 straight time hours.
(b) Funeral leave will be granted pursuant to Paragraph 15.5, provided the employee attends the funeral.

14.1(b) Campaign Vacation: A factory campaign employee shall become eligible for vacation in accordance
with the following schedule:

Years of Bi-Weekly Annual


Continuous Service Vacation Accrual Vacation
start of service .93 hours 24 hours
5 1.24 hours 32 hours
10 1.54 hours 40 hours
15 2.16 hours 56 hours
20 2.47 hours 64 hours
25 2.77 hours 72 hours
Exhibit A
American Crystal Sugar Company Proposals
(Clarification) Revised Company Proposal #8
September 8, 2022

B. Modify section 14.2 as follows


14.2 Time Vacation Accrues: The first vacation shall be taken following the first anniversary of the
beginning of continuous service. Subsequent vacations shall be taken at some time during the calendar year
following the calendar year of taking the first vacation and without regard to anniversary date of the
commencement of continuous service. The time at which an employee shall become entitled to the number of
weeks vacation specified above for 2, 6, 15, 20, and 25 years continuous service, shall be the inter-campaign of
the year in which he will complete 2, 6, 15, 20 and 25 years of continuous service, as the case may be. Eligible
employees shall receive accrued vacation hours in their available balance at the end of each bi-weekly pay period.
Bi-weekly accrual amounts are based on the years of continuous service as shown in the tables under 14.1. The
timing of increases to the next level of vacation accrual will occur so that a fully eligible employee will have accrued
their annual vacation amount by their anniversary date of the corresponding years of continuous service. (For
purposes of example only: the bi-weekly vacation accrual amount for a newly hired year round employee will
increase to 3.08 hours per eligible pay period when they reach the 1 year anniversary of their year round hire date,
and to 4.62 hours when they reach the 5 year anniversary of their year round hire date). Continuous service shall
be determined as defined in Article 5.1.

Vacation shall accrue for each full or partial pay period during which the employee worked or had company paid
time off for: vacation, sick time, floating holidays, funeral leave, jury duty, and short term disability. Vacation shall
not accrue when an employee is laid off, or on an unpaid absence for any reason, for the entire pay period.
Exceptions are made for required military leaves during which eligible employees will continue to receive bi-weekly
vacation accrual.

C. Eliminate section 14.3 - Prorated Vacations in it’s entirety:


14.3 Prorated Vacations: A year-round employee must work 1000 or more compensated hours during the
applicable 12-month vacation qualifying period to be entitled to vacation which shall be prorated if the employee
did not have a minimum of 2080 compensated hours during the 12-month qualifying period. Vacation shall not
accrue during a leave of absence.

D. For clarification purposes only, modify sections 14.4 to reflect current practice as follows:
14.4 Computing Vacation Pay: The pay for each day hour of vacation for which an employee is eligible shall
be computed on the basis of the straight-time rate of pay per hour, multiplied by eight (8) hours.

E. Delete section 14.7-Advanced Vacation Pay and 14.8-Anticipated Vacations in their entirety
14.7 Advance Vacation Pay: If an employee desires to draw his vacation pay in advance, it will be paid to him
not later than the last working day before his vacation begins

14.8 Anticipating Vacations: Vacations may be anticipated when it is for the mutual convenience of the
employee and the Company.
Exhibit A
American Crystal Sugar Company Proposals
(Clarification) Revised Company Proposal #8
September 8, 2022

F. Modify section 14.9 as follows:


14.9 (a) Failure to Take Vacations: Employees cannot waive their vacations and draw double pay by working
during the time allowed, but up to ten (10) days o n e a n d a - h a l f t i m e s of a c c r u e d vacation may be carried
over from year to year. If ten (10) days o n e a n d a - h a l f t i m e s of accrued vacation are carried over, an
employee shall not lose any additional negotiated vacation days.

(b) Vacation Buy Back Program: The Company will provide a vacation buy back program to employees.
This buy back program will be applicable only in December of each year. Pursuant to this program, the Company
and an affected employee, by mutual agreement, may agree to have the Company buy back vacation at the
employee’s straight time rate. The buy back must be in increments of 8 hours. However, employees participating
in this buy back program must maintain a minimum of ten (10) days 8 0 h o u r s of accrued and unused vacation
in order to be eligible to sell back unused vacation.

G. Modify section 14.10 as follows:

14.10 Accrued Vacation Pay: In the event an employee’s services with the Company are terminated for any
reason, vacation pay will be granted for any vacation not taken during the calendar year, for which the employee
would have been eligible hours accrued and remaining in the employee’s balance at the date of termination.
Where termination is by death, the payment will be made to the same individual to whom is paid any accrued
wages. In addition to his vacation allowance for the current calendar year, an employee leaving the service of
the Company for any reason shall receive prorated benefits for the calendar year in which he leaves. Such benefits
shall be computed at the rate of one-fifty-second (1/52nd) part of the full vacation benefit for each week or
partial week of service during the calendar year.

H. Modify Article 15.1 Sick Leave, Short Term and Long Term Disability Benefits as follows:

(iii) Employees suffering illness or accidental injury must use sick leave or vacation to provide
100% base pay until such benefits have been exhausted or until short-term benefits begin,
whichever occurs first. When short-term disability benefits are being paid, sick leave or vacation
must be used at the rate of 40% for each day of disability until such available sick leave and
vacation time is exhausted. In the event an employee exhausts all available vacation during a
leave for short term disability, that employee may request up to 80 hours of time off without
pay later in the year provided they give reasonable notice. In cases of injury that are deemed
eligible for workers’ compensation benefits, employees may use available sick leave and/or
vacation only to supplement workers’ compensation benefits.

I. With the elimination of Section 14.3 Prorated Vacations as noted in paragraph C above, it is understood
that the outstanding grievance on prorated vacations (MHD 19-01) will be settled in accordance with the
settlement offer provided in 2021, and shall not proceed to arbitration.
Exhibit A
American Crystal Sugar Company Proposals
(Clarification) Revised Company Proposal #8
September 8, 2022
J. Transition Plan
Memo of Understanding: Transition to Bi-Weekly Vacation Accrual
Under the new CBA, instead of waiting until January each year to receive vacation hours earned the prior
year, eligible employees will now receive earned vacation hours immediately in each bi-weekly pay period
throughout the year. This memo of understanding is intended to explain the transition from annual to bi-
weekly vacation accrual beginning the first pay period of 2023. (This document is not intended to appear in
the CBA, and will become obsolete and expire by 1/31/2023.)

Year-Round Employees:
1. In January 2023 eligible Year Round employees will receive their annual vacation amount added to their
vacation balance in a lump sum consistent with the past practice under the previous CBA.
• Exceptions will be made for employees on Short Term Disability and/or Military Leave during 2022. No such
employee will lose vacation or receive prorated vacation in January 2023 because of a leave for either Short
Term Disability or Military Leave during 2022.
• This January 2023 lump sum annual vacation amount will be based on the vacation schedule listed under
14.1(a) in the new CBA (i.e. 160 hours for 10 years continuous service)
2. Bi-weekly vacation accrual will then begin the first pay period of 2023, and eligible employees will start
receiving vacation hours on a bi-weekly basis as outlined in the new Article 14 of the new CBA.
3. New hires in calendar year 2022:
A. In January 2023 new Year Round employees who have not yet reached their 1 year anniversary
date, will receive a lump sum amount of accrued vacation calculated at the rate of 1.54 hours for
each active and eligible pay period since their hire date in 2022.
B. Bi-weekly vacation accrual will then begin the first pay period of 2023, and eligible employees will
start receiving vacation hours on a bi-weekly basis at the new hire rate as outlined in the new
Article 14 of the new CBA.
4. New hires who reach their 1 year anniversary date prior to January 2023:
A. These eligible employees receive 40 hours of vacation on their 1 year anniversary date consistent
with past practice under the previous CBA.
B. In January 2023 these eligible employees will receive their 2nd year annual vacation amount added
to their balance in a lump sum consistent with past practice of the previous CBA. (Exceptions are
made for STD and Military Leave as noted in par. 1A above.)
C. Bi-weekly vacation accrual will then begin the first pay period of 2023, and eligible employees will
start receiving vacation hours on a bi-weekly basis at the 2 year rate as outlined in the new Article
14 of the new CBA.
5. Any employee whose employment ends on or before December 18, 2022, will not be eligible for the bi-
weekly vacation accrual outlined above. Vacation pay for such terminated employees will instead be
administered in accordance with the previous CBA (2017-2022).
Campaign employees:
6. Upon their return from layoff, eligible campaign employees already received their annual vacation
amount for the 2022-2023 campaign consistent with the previous CBA. Bi-weekly vacation accrual will
begin the first pay period of 2023, and eligible campaign employees will start receiving vacation hours
on a bi-weekly basis as outlined in the new Article 14 of the new CBA.
Exhibit B
American Crystal Sugar Company Proposals

Revised Company Proposal #10: Temporary employees


July 15, 2022

Summary: Provide temporary work opportunities for former employees, retirees, or others interested in
temporary work. Temporary employees will not permanently replace full-time positions, and will instead
be utilized to provide relief and cover vacancies on a temporary basis.

Insert a new section 2.7 as follows:

2.7 Temporary Employees at American Crystal locations: The Company may in its discretion hire temporary
employees to provide relief for prolonged vacancies on a temporary basis.

a) No bargaining unit job will be replaced with a temporary employee.


b) No bargaining unit job will be eliminated or laid off, as a direct result of hiring temporary employees. The
Company will notify the local Union at each factory when a temporary employee is hired.
c) Temporary employees will be subject to the probationary period, and will be members of the bargaining unit
upon satisfaction of the probationary period.
d) Temporary employees will be scheduled to work at the discretion of the Company. Their work schedule will
be variable and may differ from the established schedules in the Master Agreement.
e) Temporary employees are subject to the Attendance Program.
f) Temporary employees shall receive the pay rate of the job classification they are assigned.
g) Temporary employees are not eligible for any paid time off under the Master Agreement.
h) Temporary employees are not eligible for the medical coverage or retirement benefits.
i) Temporary employees will not build plant seniority or campaign seniority.
j) The temporary employee will not work longer than 180 days, unless mutually agreed between the union and
management.

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